Solved DOCUMENTATION – POLICY STAGE

DOCUMENTATION – POLICY STAGE

Question 1

Which of the following documents is an evidence of the contract between

insurer and insured?

I. Proposal form

II. Policy document

III. Prospectus

IV. Claim form

Question 2

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?

I. In favour of insured

II. In favour of insurer

III. The policy will be declared as void and the insurer will be asked to return

the premium with interest to the insured

IV. The policy will be declared as void and the insurer will be asked to return

the premium to the insured without any interest

Question 3

Select the option that best describes a policy document.

I. It is evidence of the insurance contract

II. It is evidence of the interest expressed by the insured in buying an insurance

policy from the company

III. It is evidence of the policy (procedures) followed by an insurance company

when dealing with channel partners like banks, brokers and other entities

IV. It is an acknowledgement slip issued by the insurance company on payment

of the first premium

Question 4

Which of the below statement is correct?

I. The proposal form acceptance is the evidence that the policy contract has

begun

II. The acceptance of premium is evidence that the policy has begun

III. The First Premium Receipt is the evidence that the policy contract has

begun

IV. The premium quote is evidence that the policy contract has begun

Question 5

For the subsequent premiums received by the insurance company after the first

premium, the company will issue __________.

I. Revival premium receipt

II. Restoration premium receipt

III. Reinstatement premium receipt

IV. Renewal premium receipt

Question 6

What will happen if the insured person loses the original life insurance policy

document?

I. The insurance company will issue a duplicate policy without making any

changes to the contract

II. The insurance contract will come to an end

III. The insurance company will issue a duplicate policy with renewed terms and

conditions based on the current health declarations of the life insured

IV. The insurance company will issue a duplicate policy without making any

changes to the contract, but only after a Court order.

Question 7

Which of the below statement is correct?

I. The policy document has to be signed by a competent authority but need

not be compulsorily stamped according to the Indian Stamp Act.

II. The policy document has to be signed by a competent authority and should

be stamped according to the Indian Stamp Act.

III. The policy document need not be signed by a competent authority but

should be stamped according to the Indian Stamp Act.

IV. The policy document neither needs to be signed by a competent authority

nor it needs to be compulsorily stamped according to the Indian Stamp Act.

Question 8

Which of the below forms the first part of a standard insurance policy

document?

I. Policy schedule

II. Standard provisions

III. Specific policy provisions

IV. Claim procedure

Question 9

In a standard insurance policy document, the standard provisions section will

have information on which of the below?

I. Date of commencement, date of maturity and due date of last premium

II. Name of nominee

III. The rights and privileges and other conditions, which are applicable under

the contract

IV. The signature of the authorized signatory and policy stamp

Question 10

“A clause precluding death due to pregnancy for a lady who is expecting at the

time of writing the contract” will be included in which section of a standard

policy document?

I. Policy schedule

II. General provisions

III. Standard provisions

IV. Specific policy provisions

Question 11

What does a first premium receipt (FPR) signify? Choose the most appropriate

option.

I. Free look period has ended

II. It is evidence that the policy contract has begun

III. Policy cannot be cancelled now

IV. Policy has acquired a certain cash value