IC 02 Chapter 08

What should a policyholder do if the original policy document is stolen?

Which section of the policy document includes the specific particulars of the insurance contract?

• Preamble

• Attestation

• Schedule

• Endorsement

• None of the above

How are alterations typically made to a policy document?

• By issuing a new policy

• By obtaining an endorsement on the existing policy

• By drafting a separate amendment document

• By reissuing the entire policy document

• None of the above

Answer explanation

Alterations to a policy document are typically made by obtaining an endorsement on the existing policy.

What is the purpose of signing and stamping the policy document as per the Stamp Act?

• To ensure the document is legally enforceable

• To indicate the validity of the policy

• To authenticate the policyholder's signature

• To protect the insurer from fraud

• None of the above

Answer explanation

To ensure the document is legally enforceable

How is a duplicate policy document distinguished from the original?

• It is marked with a rubber stamp indicating duplication

• It is printed on different-colored paper

• It has a unique serial number

• It contains additional endorsements not found in the original

• None of the above

Answer explanation

A duplicate policy document is distinguished from the original by having a unique serial number, making it easily identifiable.

What is the purpose of the rubber stamp on a duplicate policy document?

• To indicate its duplicate status

• To validate the policyholder's claim

• To signify the document has been lost

• To differentiate it from the original document

• None of the above

Answer explanation

The purpose of the rubber stamp on a duplicate policy document is to differentiate it from the original document.

What is the purpose of the attestation on the policy document?

• To validate the policyholder's signature

• To indicate the acceptance of the proposal by the insurer

• To certify the accuracy of the policy details

• To acknowledge the payment of premiums

• None of the above

Answer explanation

To certify the accuracy of the policy details

What does a policy document represent in the context of life insurance?

• Legal proof of the policyholder's identity

• Proof of premium payments

• Evidence of the policy's value and ownership

• Confirmation of the policyholder's insurability

• None of the above

Answer explanation

Evidence of the policy's value and ownership represents what a policy document represents in the context of life insurance.

What is the purpose of advertising in the local newspaper or providing an indemnity bond?

• To notify the public about the loss of the policy document

• To deter policyholders from requesting duplicate policies

• To compensate the insurer for the cost of issuing a duplicate policy

• To confirm the authenticity of the reported loss

• None of the above

Answer explanation

To notify the public about the loss of the policy document and to confirm the authenticity of the reported loss.