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?

Interest rates, tax rates and market risk premium are factors which an/a

A

industry cannot control

B

industry cannot control

C

firm must control

D

firm cannot control

Which will act as a proof of premium payment should any dispute arise as to premium payment?

A

F.P.R.

B

R.P.R

C

Proposal form

D

Policy document

Which of the below is not a factor in determining life insurance premium?

A

Mortality

B

Rebate

C

Reserves

D

Management expenses

What are the factors in determining premium in a life policy?

A

Policy reserves

B

Mortality

C

Expenses

D

All of the above

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 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 correct with regards to grace period of an insurance policy?

A

Standard length of the grace period is one month

B

The standard length of the grace period is 30 days

C

The standard length of the grace period is one month or 30 days

D

The standard length of the grace period is one month or 31 days

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 decreasing term assurance?

A

Death benefit amount decreases with the term of coverage

B

Premium amount decreases with the term of coverage

C

Premium remains level throughout the term

D

Mortgage redemption plans are an example of decreasing term assurance plans

Which of the below statement is false with regards to nomination?

A

Policy Numbermination 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

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?

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