Question 1

What is full form of FPA in the context of marine underwriting?

Accepted Answer

A)  Foreign Policy Association
B)  Free of Particular Average
C)  Free Port Association
D)  Food and Perishable Accounting C

Question 2

The policy holder's duty to disclose material facts lies at the time of ______

Accepted Answer

A)  taking a policy
B)  revival of policy
C)  reinstatement of surrendered policy
D)  all of the above D

Question 3

Which one of the following statements is correct?

Accepted Answer

A)  Workingwomen are treated at par with men
B)  Educated women are treated at par with men
C)  Both (a)  an (b)  statements are correct
D)  Both (a)  and (b)  statements are wrong C

Question 4

Master policy is issued for _______

Accepted Answer

A)  Term insurance schemes
B)  permanent insurance
C)  individual insurance
D)  group insurance schemes

Question 5

Which one of the following statement is correct?

Accepted Answer

A)  If death occurs in grace period, the premium due is waived.
B)  The date of payment of premium is the date on which the cheque is cleared
C)  Both (a)  and (b)  statements are correct
D)  Both (a)  and (b)  statements are wrong

Question 6

Which one of the following statement is correct?

Accepted Answer

A)  In the case of SSS policies, the grace period is one month
B)  If the due date is 27th February the grace period ends on 26th March
C)  Both (a)  and (b)  statements are correct
D)  Both (a)  and (b)  statements are wrong

Question 7

Consideration on the part of the life insured in respect of a life insurance contract is _______

Accepted Answer

A)  a promise to take a new policy
B)  the insured promise to pay the premium under the policy
C)  the payment made towards premium by the insured
D)  proposal completed and signed by the person

Question 8

Broker's Association of India was granted recognition by IRDA on _________.

Accepted Answer

A)  Dec 11, 2001.
B)  Dec 11, 2002.
C)  Dec 11, 1999.
D)  Dec 11, 2003.

Question 9

Which one of the following statement is correct?

Accepted Answer

A)  In group insurance, a single policy is issued covering many persons
B)  A master policy covers servants of a master
C)  Both the statements above are correct
D)  Both statements above are wrong

Question 10

The reason for charging level premium is _______

Accepted Answer

A)  risk increases as age increases
B)  it is convenient to the policyholders
C)  it is convenient to the insurer
D)  all the above reasons

Question 11

Financial underwriting is done to evaluate ____

Accepted Answer

A)  the probability of the policy lapsing in future
B)  the possibility of moral hazard
C)  Both (a)  an (b)  statements are correct
D)  Both (a)  and (b)  statements are wrong

Question 12

Which one of the following statement is correct?

Accepted Answer

A)  No claim is paid unless the original policy is produced
B)  Claim can be paid even without the original policy, if it is lost
C)  Both the above statements are correct
D)  Both the above statements are wrong

Question 13

Which one of the following statement is correct?

Accepted Answer

A)  A death claim within two years of commencement is treated as an early claim
B)  A death claim within two years of revival is treated as an early claim
C)  Both (a)  and (b)  statements are correct
D)  Both (a)  an (b)  statements are wrong

Question 14

Subrogation means ______

Accepted Answer

A)  something of monetary value
B)  to make good loss
C)  payment of premium
D)  transfer of rights of an insured to another person

Question 15

What is meant by a claim under an insurance policy?

Accepted Answer

A)  Any demand made by the policy holder on the insurer
B)  A demand to fulfill the policyholders obligations
C)  A demand to fulfill the insurer's obligations
D)  All the three above

Question 16

Which one of the following statements is correct?

Accepted Answer

A)  Underwriting is done only when there is a medical examination
B)  Medical examination is necessary before a policy can be issued
C)  Both (a)  an (b)  statements are correct
D)  Both (a)  and (b)  statements are wrong

Question 17

The net premium will be ______

Accepted Answer

A)  less than the risk premium
B)  more than the risk premium
C)  calculated by adding expenses to the risk premium
D)  more than the pure premium

Question 18

When interest rates fall, the tabular premium rates are likely to _______

Accepted Answer

A)  increase
B)  decrease
C)  remain the same
D)  equal

Question 19

Which one of the following statements is correct?

Accepted Answer

A)  The underwriter assesses the risk
B)  No policy can be issued without underwriter decision
C)  Both (a)  an (b)  statements are correct
D)  Both (a)  and (b)  statements are wrong

Question 20

Moral hazard may be suspected in cases where _____

Accepted Answer

A)  the life to be insured is old.
B)  the insurance is for a very large sum insured
C)  in the both the cases
D)  none of the above cases

Exam 5: Insurance Terminology and Policies

What is full form of FPA in the context of marine underwriting?

The policy holder's duty to disclose material facts lies at the time of ______

Which one of the following statements is correct?

Master policy is issued for _______

Which one of the following statement is correct?

Which one of the following statement is correct?

Consideration on the part of the life insured in respect of a life insurance contract is _______

Broker's Association of India was granted recognition by IRDA on _________.

Which one of the following statement is correct?

The reason for charging level premium is _______

Financial underwriting is done to evaluate ____

Which one of the following statement is correct?

Which one of the following statement is correct?

Subrogation means ______

What is meant by a claim under an insurance policy?

Which one of the following statements is correct?

The net premium will be ______

When interest rates fall, the tabular premium rates are likely to _______

Which one of the following statements is correct?

Moral hazard may be suspected in cases where _____