IC 02 Chapter 9

  What is one of the factors considered by insurance companies for determining the premium?

 

• A) Hair color

• b) Eye color

• c) Favorite food

•  

  d) Age

  How does a person's health condition affect insurance premiums?

  

 

• A) It has no impact

• b) It lowers the premiums

• c) It increases the premiums

• d) It determines the policy term

  How do insurance companies typically calculate the age of the policyholder?

 

 

 

•  

  A) By considering only the years completed

• b) By considering months and days

• c) By considering the number of dependents

   

• d) By considering the policy term

• e) By considering the occupation

  What is the "age next birthday" method used for in life insurance

 

• A) To determine the policy anniversary

   

• To determine the premium amount

• e) To determine the policy coverage

• To calculate the maturity benefit

Which method is commonly used by most life insurance companies to determine the age of the policyholder?

• A) Age next birthday

• b) Age last birthday

• c) Age nearest birthday

• d) Age at policy issuance

What happens if the age of the insured is found to be higher than stated at the proposal stage?

• A) The policy remains unchanged

• b) The premium is increased

• c) The policy is cancelled and a new policy is issued

• d) The claim is denied

  What happens if premiums are not paid on the due date?

 

• A) The policy lapses

• b) The insurer extends the due date indefinitely

• c) The insured is required to pay a penalty

   

• d) The policy coverage is reduced

   

  What is the advantage of paying premiums in a monthly mode through a bank by way of standing instructions or under SSS schemes?

• A) Lower premium rates

   

• b) Increased coverage

   

• c) Guaranteed acceptance by the insurer

• d) Regular payments with reduced chances of default

  Why do some insurers not allow monthly premium payments?

 

• A) Administrative convenience

•  

  b) Higher profitability for the insurer

• c) Lower risk for the insurer

• e) Higher interest earnings for the insured

  Why are rebates or discounts offered for yearly and half-yearly premium payment modes?

 

 

• A) To increase the overall premium amount

• b) To encourage more policyholders to choose those modes

• c) To reduce the administrative burden on the insurer

   

• d) To align with industry standards