DOCUMENTATION - POLICY CONDITION

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

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