Which of the below statement is incorrect with regards to decreasing term assurance?

Which of the following statements is incorrect with regards to decreasing term assurance?

A

Death benefit amount decreases with term of coverage

B

Premium amount decreases with term of coverage

C

Premium remains leveled throughout the term

D

Mortgage redemption plans are an example of decreasing term assurance plans

Which of the below statement is correct with regards to endowment assurance plan?

A

It has a death benefit component only

B

It has a survival benefit component only

C

It has both a death benefit as well as a survival component

D

It is similar to a term plan

Which of the below statement is incorrect with regards to a policy against which a loan has been taken from the insurance company?

A

The policy will have to be assigned in favour of the insurance company

B

The nomination of such policy will get cancelled due to assignment of the policy in favour of the insurance company

C

The nominee’s right will be affected to the extent of the insurer’s interest in the policy

D

The policy loan is usually limited to a percentage of the policy’s surrender value

Which of the below statement is incorrect with regards to assignment of an insurance policy?

A

In case of Absolute Assignment, in the event of death of the assignee, the title of the policy would pass to the estate of the deceased assignee

B

The assignment of a life insurance policy implies the act of transferring the rights right, title and interest in the policy (as property) from one person to another

C

It is necessary that the policyholder must give notice of assignment to the insurer

D

In case of Absolute Assignment, the policy vests absolutely with the assignee till maturity, except in case of death of the insured during the policy tenure, wherein the policy reverts back to the ben

Which among the following is not a variant of term assurance?

A

Mortgage redemption insurance

B

Return of premiums

C

Increasing term assurance

D

Endowment assurance

Which of the below is an example of an endowment assurance plan?

A

Mortgage Redemption Plan

B

Credit Life Insurance Plan

C

Money Back Plan

D

Whole Life Plan

Which of the below option is correct with regards to a term insurance plan?

A

Term insurance plans come with life-long renewability option

B

All term insurance plans come with a built-in disability rider

C

Term insurance can be bought as a stand-alone policy as well as a rider with another policy

D

There is no provision in a term insurance plans to convert it into a whole life insurance plan

Which of the following is incorrect with regards to portfolio method?

A

The total investment return is shared between policyholders

B

No attempt is made to distinguish between investments of previous years over current investments

C

This method gives homogenized rates of return

D

None of the above

Interest rates are one of the important components used while determining the premium. Which of the below statement is correct with regards to interest rates?

A

Lower the interest rate assumed, lower the premium

B

Higher the interest rate assumed, higher the premium

C

Higher the interest rate assumed, lower the premium

D

The interest rates don’t affect premiums

Which of the below statement is correct with regards to a policy returned by a policyholder during the free look period?

A

The insurance company will refund 100% of the premium

B

The insurance company will refund 50% of the premium

C

The insurance company will refund the premium after adjusting for proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges

D

The insurance company will forfeit the entire premium

Which of the below statement is incorrect with regards to decreasing term assurance?

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