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English Mock Test Chapter 14

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Question 1
How are perils and hazards normally distinguished under term insurance policies?
A
Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk.
B
Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying.
C
Perils are factors which affect the risk being insured and hazards are the size of the risk being insured.
D
Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout
Question 2
Mr. Kunal used to participate in Car race. While taking up the Insurance policy he disclosed this information. What kind of hazard does it refers to?
A
Fraudulent representation
B
Moral hazard
C
Physical hazard
D
None of the above
Question 3
Raghu"s policy was rejected by underwritter as he is working as a body guard of a businessman with suspected criminal links. Under which hazard his policy was rejected ?
A
Occupational hazard due to source of financial hazard
B
Occupational hazard due to source of accident
C
Occupational hazard due to source of health hazard
D
Occupational hazard due to source of moral hazard
Question 4
Which of the following denotes the underwriter’s role in an insurance company?
A
Process claims
B
Decide acceptability of risks
C
Product design architect
D
Customer relations manager
Question 5
Which of the following is not an underwriting decision?
A
Claim rejection
B
Risk acceptance at standard rates
C
Declinature of risk
D
Postponement of risk
Question 6
Which of the below insurance proposal is not likely to qualify under non-medical underwriting?
A
Savita, aged 26 years, working in an IT company as a software engineer
B
Pravin, aged 30 years, working in a departmental store and has applied for an endowment insurance plan for a tenure of 10 years
C
Mahesh, aged 50 years, working in a coal mine
D
Satish. aged 28 years, working in a bank and has appried for an insurance cover of Rs. 1 crore
Question 7
Family history involves which of the following characteristic?
A
Habit of chewing tobacco
B
Heredity and longevity of the family
C
working in a chemical factory
D
Family religion
Question 8
Why is heredity history of importance in medical underwriting?
A
Rich parents have healthy kids
B
Certain diseases can be passed on from parents to children
C
Poor parents have malnourished kids
D
Family environment is a critical factor
Question 9
Cardio vascular disease refers to the disease which affect ___________________________
A
Lungs and respiratory system
B
Kidney and excretory system
C
A Heart and circulatory system(Blood)
D
Stomach, intestine and digestive system
Question 10
What are the sources of occupational hazards?
A
Accident
B
Health Hazard
C
Moral Hazard
D
All of the above
Question 11
Under risk classification,_____________ consist of those whose anticipated mortality corresponds to the standard lives represented by the mortality table
A
Standard fives
B
Preferred risks
C
Sub-standard lives
D
Declined lives
Question 12
Excessive production and reproduction of cells leads to malignant tumors is called as
A
Tuberculosis
B
Liver cirrhosis
C
Cancer
D
Diabetes Question
Question 13
Which of the following cases is likely to be declined or postponed by a life insurer?
A
Healthy 18 year old
B
An obese person
C
A person suffering from AIDS
D
Housewife with no income of her own
Question 14
Arpit is 35 yrs. old. Working for a multinational company having annual income of 5 lakh,he can opt for Sum assured in the range of ___________________
A
25 to 30 lacs
B
50 to 60 lacs
C
10 to 15 lacs
D
40 to 45 lacs
Question 15
How much Sum assured is permissible in relation to the income?
A
30 to 40 times of the annual income
B
10 to 12 times of the annual income
C
4 to 5 times of the annual income
D
15 to 20 times of the annual income
Question 16
Conditions for non medical underwriting does not involve ________________________
A
Age at entry above 45 within permissible sum assured
B
Working Woman
C
House wife beyond permissible sum assured
D
Employees of reputed firms
Question 17
Rating factors in underwriting does not depend on ________________________
A
Financial situation
B
Family History
C
No. of members in the family
D
Personal history of health and habits
Question 18
Which of the following medical factors do not influence an underwriter"s decision?
A
Personal characteristic
B
Family history
C
Spouse"s History
D
Personal History
Question 19
Sheena is suffering from acute diabetes. She has applied for an insurance plan. In this case the underwriter is most likely to use _____________ for underwriting.
A
Numerical method
B
Any of the above method since an illness like diabetes does not play a major role in the underwriting process
C
Neither of the above method as diabetes cases are rejected outright
D
Judgment method
Question 20
Santosh has applied for a term insurance policy. His anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium. Under risk classification, Santosh will be classified under ______________
A
Standard lives
B
Substandard lives
C
Preferred risks
D
Declined lives
Question 21
Ailment of the renal system involves _____________________
A
Kidney and other urinary parts
B
Heart and all the arteries and veins
C
Stomach, intestine and liver
D
Brain and vertebral column
Question 22
Which of the following condition will affect a person's insurability negatively?
A
Banned substance abuse
B
Daily jogs
C
Lazy nature
D
Procrastination
Question 23
Family history does not involve any of these factors?
A
Family"s residing environment
B
Average longevity of the family
C
Religion of the family
D
Family"s heredity
Question 24
Which of the following is an example of moral hazard?
A
A person drinking copious amounts of alcohol because he is inured
B
A Stunt artist dies while performing a stunt
C
insured defaulting on premium payments
D
All of the above
Question 25
Amruta is pregnant. She has applied for a term insurance cover. Which of the below option will be the best option to choose for an underwriter to offer insurance to Amruta?
A
Acceptance with a restrictive clause
B
Decline the proposal
C
Acceptance with extra premium
D
Acceptance at ordinary rates
Question 26
Which of the following is not a case of moral hazard
A
When a proposal is made on another without having clear insurable interest
B
proposal is submitted at a branch located far away place of residence of the proposed insured
C
A medical examination is done elsewhere even when a qualified medical examiner is available near one"s place of residence
D
A stuntman of a film offered high sum assured
Question 27
Which type of hazard is said to exist when proposal is submitted at a branch located far away from the place of residence of the proposed insured
A
Physical Hazard
B
Moral Hazard
C
Financial Hazard
D
Occupational Hazard
Question 28
Under what method of underwriting does an underwriter assign positive rating points for all negative or adverse factors (negative points for any positive or favourable factors)?
A
Judgment
B
Arbitrary
C
Numerical rating
D
Single step
Question 29
Which of the following is not a standard age proof?
A
Passport
B
School leaving certificate
C
Horoscope
D
Birth certificate
Question 30
Which of the following cases is likely to be declined or postponed by a life insurer
A
A person suffering from AIDS
B
Healthy 18 year old
C
An obese person
D
Housewife with no income of her own
Question 31
Which of the following denotes the underwriter’s role in an insurance company?
A
Decide acceptability of risks
B
Process claims
C
Product design architect
D
Customer relations manager
Question 32
To usher equity, the underwriter engages in a process known as risk classification i.e. individual lives are categorised and assigned to different risk classes depending on the degree of risks they pose. The risk classes are:
A
Standard lives
B
Preferred risks
C
Substandard lives
D
All of the above
Question 33
To usher equity, the underwriter engages in a process known as risk classification i.e. individual lives are categorised and assigned to different risk classes depending on the degree of risks they pose. The risk classes are:
A
Standard lives
B
Preferred risks
C
Declined lives
D
All of the above
Question 34
___________________ :These consist of those whose anticipated mortality corresponds to the standard lives represented by the mortality table.
A
Standard lives
B
Preferred risks
C
Substandard lives
D
Declined lives
Question 35
____________________________ :These are the ones whose anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium.
A
Standard lives
B
Preferred risks
C
Substandard lives
D
Declined lives
Question 36
_____________________: These are the ones whose anticipated mortality is higher than the average or standard lives, but are still considered to be insurable. They may be accepted for insurance with higher (or extra) premiums or subjected to certain restrictions.
A
Standard lives
B
Preferred risks
C
Substandard lives
D
Declined lives
Question 37
___________________:These are the ones whose impairments and anticipated extra mortality areso great that they could not be provided insurance coverage at an affordable cost. Sometimes an individual’s proposal may also be temporarily declined if he or she has been exposed to a recent medical event, like an operation.
A
Standard lives
B
Preferred risks
C
Substandard lives
D
Declined lives
Question 38
Which of the following is a underwriting or selection process?
A
Field or Primary level
B
Underwriting department level
C
All of the above
D
None of the above
Question 39
_________________________ is the primary underwriter.
A
Agent
B
Claim manager
C
Actuary
D
All of the above
Question 40
Which of the following is a Method of Underwriting?
A
Judgment Method
B
Numerical Method
C
All of the above
D
None of the above
Question 41
______________________: Under this method subjective judgment is used, especially when deciding on a case that is complex.
A
Judgment Method
B
Numerical Method
C
All of the above
D
None of the above
Question 42
___________________________ : Under this method underwriters assign positive rating points for all negative or adverse factors (negative points for any positive or favourable factors).
A
Judgment Method
B
Numerical Method
C
All of the above
D
None of the above
Question 43
In _____________________ the total number of points so assigned will decide how much Extra Mortality Rating (also called EMR) it has been given. Higher the EMR, more substandard the life is. If the EMR is very high, insurance mayneven be declined.
A
Judgment Method
B
Numerical Method
C
All of the above
D
None of the above
Question 44
Which of the below is a  decision that underwriters may take with regard to a life proposed for underwriting?
A
Acceptance at ordinary rates
B
Acceptance with an extra
C
All of the above
D
All of the above
Question 45
Which of the below is a  decision that underwriters may take with regard to a life proposed for underwriting?
A
Acceptance at ordinary rates
B
Acceptance with a lien on the sum assured
C
All of the above
D
None of the above
Question 46
Which of the below is a  decision that underwriters may take with regard to a life proposed for underwriting?
A
Acceptance with a restrictive clause
B
Acceptance with a lien on the sum assured
C
All of the above
D
None of the above
Question 47
Which of the below is a  decision that underwriters may take with regard to a life proposed for underwriting?
A
Acceptance with a restrictive clause
B
Decline or postpone
C
All of the above
D
None of the above
Question 48
Which of the below  condition would generally be sought when considering insurance for minors?
A
Whether they have a properly developed physique
B
Proper family history and personal history
C
Whether the family is adequately insured
D
All of the above
Question 49
What are the rating factors in underwriting?
A
Female insurance
B
Minors
C
Large sums assured
D
All of the above
Question 50
What are the rating factors in underwriting?
A
Female insurance
B
Moral hazard
C
Age
D
All of the above
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