IC-33 Chapter 2

Chapter 2

  1. Under Term insurance policies Perils are considered to be the risks that policyholder will die before a specified date a
  2. The functioning of insurance works on the principle of Risk Transfer.
  3. If a person stocks crackers in his house then he is supposed to run the FINANCIAL RISK.
  4. The Risk contains in it the Peril and Hazards, the Level & Uncertainty.
  5. If two persons are of same health status then if a person is triggered with medicals then the reason for the same could
  6. The loan which can be given under a life insurance policy is generally based on the Surrender Value of that Policy.
  7. Law of Large number helps the insurer in fixing the correct Premium.
  8. The main benefit of taking Life insurance policy is protection and not investment, Tax Saving etc.
  9. If a person takes a Term Insurance plan then it would be termed as he has transferred his risk of death to the insurance
  10. Pure risks and financial risks are insurable whereas Speculative and Non Financial risks are not insurable.
  11. If a person is died in a typhoon then insurance company would take this under the term pure risk.
  12. Only Financial and not Non Financial risks are insurable.
  13. Retaining of risk is not advisable and possible because life has so many risk.
  14. Under No circumstances can insurance companies club or pool the risk of a Life Insurance company with health insurance co.
  15. Health Insurance riders and Critical insurance riders are classified under Life Insurance only.
  16. If a person who happens to be a policyholder usually engaged himself in car races and disclosed this information, this would
  17. In life insurance if a person has got multiple Sum assured from different companies or from the same company he would be pai
  18. A policy can not be cancelled after the free look period of 15 Days.
  19. Hazard refers to the specific event which might cause a loss.
  20. Institute of Insurance and risk management along with insurance does research work.
  21. Law of large number is worked out by Pooling of risk.
  22. Insurance is the mechanism of Transfer of risk.
  23. Pure risks are the instances of those risks in which events are not in the control of the individual and he can not make pro
  24. Ombudsman has to give his decision within 30 days.
  25. If Lungs Cancer is a peril then Smoking is a hazard.
  26. Law of Large numbers helps insurers in fixing premium.
  27. Grouping of similar risks by insurance companies is called Pooling of Risks.

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