DOCUMENTATION - POLICY CONDITION
Question 1
Which of the below statement
is false with regards to nomination?
I. Policy nomination is not cancelled if the policy is
assigned to the insurer in
return for a loan
II. Nomination can be done at the time of policy
purchase or subsequently
III. Nomination can be changed by making an endorsement
in the policy
IV. A nominee has full rights on
the whole of the claim
Question 2
In order for the policy to
acquire a guaranteed surrender value, for how long
must the premiums be paid as
per law?
I. Premiums must be paid for at least 2 consecutive
years
II. Premiums must be paid for at
least 3 consecutive years
III. Premiums must be paid for at least 4 consecutive
years
IV. Premiums must be paid for at least 5 consecutive
years
Question 3
When is a policy deemed to be
lapsed?
I. If the premiums are not paid on due date
II. If the premiums are not paid before the due date
III. If the premium has not been
paid even during days of grace
IV. If the policy is surrendered
Question 4
Which of the below statement
is correct with regards to grace period of an
insurance policy?
I. The standard length of the grace period is one
month.
II. The standard length of the grace period is 30 days.
III. The standard length of the grace period is one
month or 30 days.
IV. The standard length of the
grace period is one month or 31 days.
Question 5
What will happen if the
policyholder does not pay the premium by the due date
and dies during the grace
period?
I. The insurer will consider the policy void due to
non-payment of premium by
the due date and hence reject
the claim
II. The insurer will pay the claim
and waive off the last unpaid premium
III. The insurer will pay the claim after deducting the
unpaid premium
IV. The insurer will pay the claim after deducting the
unpaid premium along
with interest which will be
taken as 2% above the bank savings interest rate
Question 6
During the revival of a lapsed
policy, which of the below aspect is considered
most significant by the
insurance company? Choose the most appropriate option.
I. Evidence of insurability at
revival
II. Revival of the policy leading to increase in risk
for the insurance company
III. Payment of unpaid premiums with interest
IV. Insured submitting the revival application within a
specified time frame
Question 7
For an insurance policy
nomination is allowed under _________ of the Insurance
Act, 1938.
I. Section 10
II. Section 38
III. Section 39
IV. Section 45
Question 8
Which of the below statement
is incorrect with regards to a policy against which
a loan has been taken from the
insurance company?
I. The policy will have to be assigned in favour of
the insurance company
II. The nomination of such policy
will get cancelled due to assignment of the
policy in favour of the insurance company
III. The nominee’s right will affected to the extent of
the insurer’s interest in
the policy
IV. The policy loan is usually limited to a percentage
of the policy’s surrender
value
Question 9
Which of the below statement
is incorrect with regards to assignment of an
insurance policy?
I. 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.
II. 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.
III. It is necessary that the policyholder must give
notice of assignment to the
insurer.
IV. 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 beneficiaries of
the insured.
Question 10
Which of the below alteration
will be permitted by an insurance company?
I. Splitting up of the policy
into two or more policies
II. Extension of the premium paying term
III. Change of the policy from with profit policy to
without profit policy
IV. Increase in the sum assured
Question 11
Under what circumstances would the policyholder
need to appoint an
appointee?
I. Insured is minor
II.
Nominee is a minor
III. Policyholder is not of sound mind
IV. Policyholder is not married
