Deck 1: Insurance Policy Provisions and Procedures

Question 1

Who is protected under the In-Contestability Clause included under a Life Assurance Policy?

A)Insurer
B)Insured
C)Insurance Agent
D)Insurance Broker

Answer 1

Insured

Question 2

Section 45 (Indisputability Clause) of Insurance Act, protects the Insured, from Rejection of Claim, by the Insurer; provided the Policy has completed --. Choose the Most Appropriate Option.

A)One Year
B)Three Years
C)Five Years
D)Seven Years

Answer 2

Three Years

Question 3

As per the Suicide Clause, if the Life-Assured Dies, as a Result of Suicide, After 3 Years of the Issue of Policy, What Does the Beneficiary Receive as the Claim?

A)Nothing
B)Premium, Paid by the Life-Assured.
C)(2 × Premium), Paid by the Life-Assured.
D)Full Face-Amount of the Policy.

Answer 3

Full Face-Amount of the Policy.

Question 4

What Does, First Premium Receipt (F.P.R.), signify?

A)Free-Look Period has ended.
B)It is the Evidence, that the Policy-Contract has begun.
C)Policy cannot be cancelled, Now.
D)Policy has acquired a Certain Cash-Value.

Question 5

Identify the Document, that evidences a Contract, between the Insurer and the Insured.

A)Proposal-Form
B)Claim-Form
C)Nomination-Form
D)Policy-Document

Question 6

If Complex Language is used to word a Certain Policy- Document, and it has given Rise to an Ambiguity, How Will it generally be construed?

A)In Favour of the Insured.
B)In Favour of the Insurer.
C)The Policy will be declared as Void, and the Insurer will be asked to Return the Premium, With Interest, to the Insured.
D)The Policy will be declared as Void, and the Insurer will be asked to Return the Premium, to the Insured, Without Any Interest.

Question 7

With Regards to Mis-Statement of Age, Select the Valid Option:
I: An Under-Statement of Age, will result in the Original Policy being re-issued, for a Reduced Amount.
II: An Over-Statement of Age, will, usually, result in a Refund of Premium-Payment.

A)I, Only.
B)II, Only.
C)I and II.
D)Neither I, Nor II.

Question 8

Which of the Following, is Not a Part of a Stand ard Policy-Document?

A)Policy Schedule
B)Stand ard Provisions
C)Policy-Specific Provisions
D)Policy Forfeiture Provisions

Question 9

Give us, the Proof of Contract between the Insurer and the Insured.

A)Proposal-Form
B)Claim-Form
C)Nomination-Form
D)Policy Document

Question 10

Gives us, an Example of a Stand ard Policy-Provision.

A)A Clause, Precluding the Death Due to Pregnancy, for a Lady, Who is Expecting at the Time of Writing the Contract.
B)Suicide Clause
C)A Clause, Precluding Certain Illnesses.
D)A Clause, Granting Certain Privileges to the Policy-Holder.

Question 11

Gives us, an Example of a Policy-Specific Provision.

A)Premium-Payment
B)Mis-Statement of Age
C)Claim-Provision
D)A Clause, Precluding the Death Due to Pregnancy, for a Lady, Who is Expecting, at the Time of Writing the Contract.

Question 12

Which One of the Following, forms the First Part of a Stand ard Insurance Policy-Document?

A)Policy-Schedule
B)Stand ard Provisions
C)Specific-Policy Provisions
D)Claim-Procedure

Question 13

Select the Correct Statement.

A)The Policy Document has to be signed by a Competent Authority, but need not be compulsorily stamped according to Indian Stamp Act.
B)The Policy Document has to be signed by a Competent Authority, and should be stamped according to Indian Stamp Act.
C)The Policy Document need not be signed by a Competent Authority, but should be stamped according to Indian Stamp Act.
D)The Policy Document neither needs to be signed by a Competent Authority, nor it needs to be compulsorily stamped according to Indian Stamp Act.

Question 14

What Will Happen, if the Insured-Person loses the Original Life Assurance Policy-Document?

A)The Insurance Company will issue a Duplicate Policy, Without Making Any Changes to the Contract.
B)The Insurance Contract will Come to an End.
C)The Insurance Company will issue a Duplicate Policy, with the Renewed Terms and Conditions, Based on the Current Health- Declarations of the Life- Assured.
D)The Insurance Company will issue a Duplicate Policy, Without Making Any Changes to the Contract; But, Only After a Court-Order.

Question 15

Which One of the Following Documents, will be issued by the Insurance Company, on Receipt of Subsequent Premiums, After the First Premium?

A)Revival Premium Receipt
B)Restoration Premium Receipt
C)Reinstatement Premium Receipt
D)Renewal Premium Receipt

Question 16

In Order for the Policy to acquire a Guaranteed Surrender-Value (G.S.V.), For How Long, must, the Premiums be Paid, as per the Regulations?

A)2 Consecutive Years
B)4 Consecutive Years
C)3 Consecutive Years
D)5 Consecutive Years

Question 17

For a Life Assurance Policy, Nomination is allowed Under --- of Insurance Act, 1938.

A)Section 10
B)Section 38
C)Section 39
D)Section 45

Question 18

Identify the Circumstances, under which, the Policy- Holder would need to appoint an Appointee.

A)Insured is a Minor
B)Nominee is a Minor
C)Policy-Holder is Not of Sound Mind
D)Policy-Holder is Not Married

Question 19

Illustrate the Purpose of Grace-Period.

A)It is a Period, within which, Policy-Holder may cancel the Policy, if He or She Does Not Like the Same.
B)It grants the Policy- Holder, An Additional Time, to Pay His or Her Premium.
C)It provides a Period, within which, Policy- Holder must raise a Complaint, in Case of Any Grievance.
D)It provides a Period, after which, Policy- Holder must Pay His or Her Over-Due Premium.

Question 20

All of the Following Statements, are True, with Regard to Nomination, Except --.

A)Policy-Nomination is Not Cancelled, if the Policy is assigned to the Insurer, in Return for a Loan.
B)Nomination can be Done, at the Time of Policy-Purchase or Subsequently.
C)Nomination can be Changed, by Making an Endorsement in the Policy.
D)A Nominee has Full Rights on the Whole of the Claim.

Question 21

When is a Policy, Deemed to be Lapsed?

A)If the Premiums are Not Paid on the Due-Date.
B)If the Premiums are Not paid, Before the Due- Date.
C)If the Premium has Not been paid, even After Expiry of Grace-Period.
D)If the Policy is surrendered.

Question 22

Construct a Situation, that would require Evidence of Insurability, at Revival.

A)It has been a Week, since the Policy has been Lapsed.
B)Policy has been Lapsed, for More Than a Year.
C)Policy has been In- Force, for a Year.
D)Loan against Policy has been sought.

Question 23

Construct a Valid Argument in Favour of Policy-Loans.

A)A Loan of Any Amount, can be obtained, easily.
B)Insured can decide the Terms and Conditions of the Loan.
C)There is No Legal Obligation to Re-Pay the Loan.
D)No Collateral is required.

Question 24

Select the Correct Statement, with Regard to Grace- Period. Choose the Most Appropriate Option.

A)The Stand ard Length of the Grace-Period is 1 Month or 31 Days.
B)The Stand ard Length of the Grace-Period is One Quarter.
C)The Stand ard Length of the Grace-Period is One Week.
D)The Stand ard Length of the Grace-Period is One Fort-Night.

Question 25

Which One of the Following Alterations, will be permitted, by an Insurance Company?

A)Splitting-Up of the Policy into Two or More Policies.
B)Extension of the Premium-Paying-Term.
C)Change of the Policy from "With-Profits" Policy to "Without- Profits" Policy.
D)Increase in the Sum- Assured.