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Insurance Concepts and Terminologies

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Term plan is?

a)

compensate loss of income due to death of breadwinner

b)

has both the elements of savings as well as protection

c)

a maturity amount is paid to the insured on survival of the contract period

2.

Describe Endowment Plans?

a)

A plan that covers both death and provides maturity amount on survival of contractual period

b)

Only provides Survival benefitt

3.

What is assignment of policy?

a)

The title of the policy shifted or transferred to another person or institution

b)

The life insured is the rightful owner of the policy

4.

What are the types of Assignment of policy?

a)

Conditional & Partially

b)

Fully and Partially

c)

Single and Joint

5.

Bonus is paid in which types of Insurance Plans

a)

Participating Plans

b)

Non Participating

c)

Term Plan

d)

ULIPs

6.

What is the guidelines of %age distribution of Bonus ?

a)

90% to Policyholders and 10% to Shareholdes

b)

90% to shareholders and 10% to policy holders

c)

50% to Shareholdes and 50% to policyholders

7.

In case Nominee is minor the policy holder needs to appont an appointee.

State True or False.

a)

True

b)

False

8.

Reversionary bonus is paid once during the policy term that is on maturity.

State True or False.

a)

False

b)

True

9.

The amount that is payable on death of Policy holder is?

a)

Sum Assured

b)

Death Benefit

c)

Maturity Benefit

10.

what is Premium allocation charges ?

a)

This charge is levied to recover the initial expense incurred towards issuing the policy

b)

This charge is levied as the cost of hiring Fund Manger

c)

This is related to insurance charges