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

Solve Answer of DOCUMENTATION – PROPOSAL STAGE

CHAPTER

 DOCUMENTATION – PROPOSAL STAGE

Question 1
Which of the below is an example of standard age proof?
I. Ration card
II. Horoscope
III. Passport
IV. Village Panchayat certificate
Answer: III. Passport

Question 2
Which of the below can be attributed to moral hazard?
I. Increased risky behavior following the purchase of insurance
II. Increased risky behavior prior to the purchase of insurance
III. Decreased risky behavior following the purchase of insurance
IV. Engaging in criminal acts post being insured
Answer: I. Increased risky behavior following the purchase of insurance

Question 3
Which of the below features will be checked in a medical examiner’s report?
I. Emotional behavior of the proposer
II. Height, weight and blood pressure
III. Social status
IV. Truthfulness
Answer: II. Height, weight and blood pressure

Question 4
A __________ is a formal legal document used by insurance companies that
provides details about the product.
I. Proposal form
II. Proposal quote
III. Information docket
IV. Prospectus
Answer: IV. Prospectus

Question 5
The application document used for making the proposal is commonly known as
the __________.
I. Application form
II. Proposal form
III. Registration form
IV. Subscription form
Answer: II. Proposal form

Question 6
From the below given age proof documents, identify the one which is classified
as non-standard by insurance companies.
I. School certificate
II. Identity card in case of defence personnel
III. Ration card
IV. Certificate of baptism
Answer: III. Ration card

Question 7
Money laundering is the process of bringing _______ money into an economy by
hiding its _______ origin so that it appears to be legally acquired.
I. Illegal, illegal
II. Legal, legal
III. Illegal, legal
IV. Legal, illegal
Answer: I. Illegal, illegal

Question 8
In case the policyholder is not satisfied with the policy, he / she can return the
policy within the free-look period i.e. within ________of receiving the policy
document.
I. 60 days
II. 45 days
III. 30 days
IV. 15 days
Answer: IV. 15 days

Question 9
Which of the below statement is correct with regards to a policy returned by a
Policyholder during the free look period?
I. The insurance company will refund 100% of the premium
II. The insurance company will refund 50% of the premium
III. 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
IV. The insurance company will forfeit the entire premium
Answer: III. 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

Question 10
Which of the below is not a valid address proof?
I. PAN Card
II. Voter ID Card
III. Bank passbook
IV. Driving license
Answer: II. Voter ID Card

Question 11
During the _________ period, if the policyholder has bought a policy and does
not want it, he / she can return it and get a refund.
I. Free evaluation
II. Free look
III. Cancellation
IV. Free trial

Answer: II. Free look