Life Insurance - Underwriting & Claims

Assignment A

1.    Discuss the advantages of Life Insurance.

4.    Write a short note on Pension Plans.

5.    What is the Endowment Plan?

Case Detail:  
Mr. Rahman had purchased a Survival Benefit (Money Back) Life Policy on 01.04.2000 with following features:
1. Sum Assured - Rs. 500,000/-
2. Term - 20 Years.
3. Premium to be paid only up to 15 yrs.
4. Survival Benefits will accrue every 5 yrs.as per following patterns - (i) 30%, (ii) 30% and (iii) 40%.
5. It is an accidental double benefit policy
6. Bonus accrued @ Rs. 70 per thousand of Sum Assured per annum.
You are required to answer the following questions:

1.    When 2nd survival benefit will accrue?      :                                        Date............ 

2.    Specify the amount of 3rd survival benefit:                                  Rs............... 

3.    Specify the amount which would be due on maturity:                          Rs...............

Question No.  1    Marks - 10
Principle of Indemnity is applicable in    

Options    
Valued Policy    
PA Insurance    
Money Insurance    
Life Insurance

Question No.  2    Marks - 10
Life Insurance does not cover benefits in case of    

Options    
Suicide    
Murder    
Accidental death    
Natural Death

Question No.  3    Marks - 10
Under Pure Endowment Life Insurance    

Options    
Sum Assured is not payable if the insured survives a certain period    
Policy Period is Unlimited    
Survival Benefits paid during the currency of the policy    
The policy period is limited

Question No.  4    Marks - 10
GTIS means    

Options    
Floater Mediclaim Policy    
Group Mediclaim Policy    
Term Insurance of a group    
Group Personal Accident Insurance

Question No.  5    Marks - 10
 In Term Insurance Plans, Premium is    

Options    
Very High    
Very Low    
From Low to Moderate    
None of these

Question No.  6    Marks - 10
 Workmen Compensation insurance is taken by    

Options    
Workmen    
State Govt.    
Executives    
Employers

Question No.  7    Marks - 10
In Endowment Life Insurance    

Options    
Money is refunded to the assured in the event of nonpayment of premium    
All benefits are paid only at the maturity of the policy    
Specified Percentage of Sum Assured is paid back on defined intervals    
None of these

Question No.  8    Marks - 10
In Life Insurance HLV means    

Options    
High Life Value    
Human Life Value    
High-Level Value    
None of these

Question No.  9    Marks - 10
Premature death is a    

Options    
Personal Risk    
Property Risk    
Speculative Risk    
Dynamic Risk

Question No.  10    Marks - 10
Variable Annuities pay a    

Options    
Granted amount after the death of the Annuitant    
Lump-sum after retirement    
Guaranteed death benefit if the annuitant dies before retirement    
None of these

Question No.  11    Marks - 10
Which of the policies pays a fixed amount regularly on the happening of a specified event?
Options    
Medical Expense Insurance    
Critical Illness Plan    
Unit Linked Health Police
Disabilty Income Insurance

Question No.  12    Marks - 10
Employer-based retirement plans can be categorized into    

Options    
Variable benefits and variable contribution plans    
Defined benefit and defined contribution plans    
Voluntary and mandatory plans    
None of these

Question No.  13    Marks - 10
Under Salary Saving scheme    

Options    
The claim is paid by the employer    
Premium is remitted by the Employer to the Insurer    
Premium is deducted from the salary and retained by the employer    
None of these

Question No.  14    Marks - 10
Keyman Insurance is related to    

Options    
Top managerial persons    
Cashier    
Watchman    
Assistant

Question No.  15    Marks - 10
In life insurance revival of policy is resorted upon    

Options    
Maturity of the policy    
Death of Assured    
Lapsation of the policy due to nonpayment of premium    
Cancellation of the policy    

Question No.  16    Marks - 10
Life Insurance policy with profit means benefits will include    

Options    
Only Sum Assured    
Only Bonus    
Sum Assured + Bonus    
Survival Benefits Only

Question No.  17    Marks - 10
ULIP has element/s of    

Options    
Covering life risk Only    
NAV    
Both 1 & 2    
None of these

Question No.  18    Marks - 10
Which method is non-proportional reinsurance    

Options    
Excess of loss    
Quota Share    
Surplus Treaty    
None of these

Question No.  19    Marks - 10
Micro Insurance is meant for the    

Options    
Poor and Unorganised section of the Society    
Micro Ovens    
School Children    
All of these

Question No.  20    Marks - 10
 Under Salary Saving scheme premium is deducted from the salary of the employee on    

Options    
Monthly Basis    
Quarterly Basis    
Half Yearly Basis    
Annual Basis

Question No.  21    Marks - 10
The ESIC Act was enacted in the year    

Options    
1948    
1947    
1946    
1945

Question No.  22    Marks - 10
Social Insurance program are prescribed by    

Options    
State Laws    
Insurance Company's    
NGOs    
All of these

Question No.  23    Marks - 10
What is the minimum qualifying service for being entitled to receive gratuity nder Payment of Gratuity Act?    

Options    
2 years    
3 Years    
5  years    
7 years

Question No.  24    Marks - 10
For a married couple with small kids, which one is the least suitable form of life insurance plan    

Options    
Wealth creation plan    
Mortgage Protection Plan    
Term insurance plan    
Children's Plan

Question No.  25    Marks - 10
Under PA policy claim is admissible in the event of    

Options    
Natural Death    
Natural Disease    
Accidental Death    
All of these

Question No.  26    Marks - 10
Which condition is not necessary for the assignment of a life insurance policy?    

Options    
The Assignor  must beholder    
The Assignor should not be a minor    
The Assignor must be the beneficiary of the policy    
None of these

Question No.  27    Marks - 10
 In life insurance upon the death of the assured, the claim is payable to    

Options    
Spouse    
Father    
Mother    
Nominee

Question No.  28    Marks - 10
Overseas Mediclaim Policy also covers    

Options    
Hospitalisation Expenses in India    
Liability Risk    
Loss of Pet Overseas    
Loss of Travel Ticket

Question No.  29    Marks - 10
Social Insurance refers to    

Options    
Group Insurance of Students    
Group Insurance of Employees    
Group Insurance of Members of a Cooperative Society    
Insurance program which provides a base of economic security to the population

Question No.  30    Marks - 10
 The first Reinsurance company in India was    

Options    
Indian Reinsurance Corporation    
General Insurance Corporation of India    
British Reinsurance Corporation    
Bharat Reinsurance Corporation

Question No.  31    Marks - 10
Group Saving Linked Insurance plans are a type of    

Options    
Term Plans    
Return of Premium Plans    
Endowment Assurance Plans    
None of these

Question No.  32    Marks - 10
 In health protection policies there is no cover for    

Options    
Major surgical benefit    
Domiciliary Treatement    
Hospital cash benefit    
All of these

Question No.  33    Marks - 10
PA benefits can be insured    

Options    
Under Stand Alone Policy    
Along with Mediclaim Insurance Policy    
Along with Life Insurance Policy    
All of these

Question No.  34    Marks - 10
Personal Accident Insurance provides compensation for    

Options    
PTD    
TTD    
PPD    
All of these

Question No.  35    Marks - 10
Overseas Mediclaim Policy is meant for    

Options    
Senior Citizens    
NRIs    
Foreigners    
Person visiting abroad for limited period

Question No.  36    Marks - 10
Under which Section of Income Tax Act benefit of premium paid for Mediclaim insurance policies is available?    

Options    
24    
80 C    
80 D    
88

Question No.  37    Marks - 10
Mediclaim Policy covers    

Options    
Death Benefits    
Hospitalization Expenses in India    
Disablement Benefits    
Hospitalization Expenses Abroad

Question No.  38    Marks - 10
OMP claims are normally settled in    

Options    
INR    
US Dollar    
UK Pounds    
EURO

Question No.  39    Marks - 10
Under Money back policy, the claim amount upon the death of the Assured would be    

Options    
Equal to Sum Assured + Bonus    
Equal to Sum Assured    
Lower than the Sum Assured    
Higher than the Sum Assured    

Question No.  40    Marks - 10
Under the Indian Evidence Act, a person who has disappeared is presumed to be dead if he not been heard of for    

Options    
3 years    
5 years    
7 years    
10 years