Podcast
Questions and Answers
What is the status of Vimal's application for life assurance given his profile?
What is the status of Vimal's application for life assurance given his profile?
- Risk will be Accepted at Ordinary Rates. (correct)
- Risk will be Declined.
- Risk will be Accepted with an Extra. (correct)
- Risk will be Accepted with a Lien on Sum Assured. (correct)
Which of the following best describes the implications for insurance if an individual is considered a 'Sub-Standard Risk'?
Which of the following best describes the implications for insurance if an individual is considered a 'Sub-Standard Risk'?
- Risk will be Accepted with an Extra. (correct)
- Insurance will be automatically declined.
- Ordinary rates are applicable.
- Lower rates are typically offered.
If Vimal were to take up a risky hobby, how would it likely affect his life assurance?
If Vimal were to take up a risky hobby, how would it likely affect his life assurance?
- Higher premiums would be applied. (correct)
- The application process would remain unchanged.
- The insurance could be outright declined.
- It would still be accepted at Ordinary Rates.
What could happen if Mr. Brijesh applies for insurance as a 'Sub-Standard Risk'?
What could happen if Mr. Brijesh applies for insurance as a 'Sub-Standard Risk'?
What does a 'Lien on Sum Assured' imply for an insurance policy?
What does a 'Lien on Sum Assured' imply for an insurance policy?
What is a typical outcome for a healthy, non-smoking individual applying for life assurance?
What is a typical outcome for a healthy, non-smoking individual applying for life assurance?
In insurance terms, what does 'Risk will be Accepted with an Extra' mean?
In insurance terms, what does 'Risk will be Accepted with an Extra' mean?
Which of the following statements about life assurance and individual risk levels is true?
Which of the following statements about life assurance and individual risk levels is true?
Which individuals are most likely to be considered high-risk by insurance companies?
Which individuals are most likely to be considered high-risk by insurance companies?
Which individual is likely to be exposed to significant health hazards in their occupation?
Which individual is likely to be exposed to significant health hazards in their occupation?
Which occupation is most likely to involve accidental hazards?
Which occupation is most likely to involve accidental hazards?
Which of the following individuals should insurance companies assess for high-risk factors?
Which of the following individuals should insurance companies assess for high-risk factors?
Who among the following is most likely to encounter physical hazards due to their job?
Who among the following is most likely to encounter physical hazards due to their job?
Identify the occupation that poses a higher risk of exposure to environmental hazards.
Identify the occupation that poses a higher risk of exposure to environmental hazards.
Which group of individuals would insurance companies most likely evaluate based on potential high-risk lifestyle choices?
Which group of individuals would insurance companies most likely evaluate based on potential high-risk lifestyle choices?
Which of the following professions is likely to involve a mix of health and accident risks?
Which of the following professions is likely to involve a mix of health and accident risks?
What does a decreased amount of death benefit indicate in underwriting?
What does a decreased amount of death benefit indicate in underwriting?
Which statement about the Numerical Rating Method of Underwriting is incorrect?
Which statement about the Numerical Rating Method of Underwriting is incorrect?
What is the role of the underwriter in relation to the Extra-Mortality-Rating (E.M.R.)?
What is the role of the underwriter in relation to the Extra-Mortality-Rating (E.M.R.)?
In the Judgement Method of Underwriting, what becomes important for complex cases?
In the Judgement Method of Underwriting, what becomes important for complex cases?
What might influence the decision to assign positive rating points?
What might influence the decision to assign positive rating points?
How are extra mortality ratings applied in underwriting decisions?
How are extra mortality ratings applied in underwriting decisions?
Why might a company seek positive or negative rating points?
Why might a company seek positive or negative rating points?
Which of these factors is NOT considered in numerical rating under underwriting?
Which of these factors is NOT considered in numerical rating under underwriting?
What is the primary purpose of risk-classification?
What is the primary purpose of risk-classification?
Which of the following best describes risk-classes?
Which of the following best describes risk-classes?
Which factor influences the categorization of risk-classes?
Which factor influences the categorization of risk-classes?
How do individuals who perceive high risk typically respond regarding insurance?
How do individuals who perceive high risk typically respond regarding insurance?
What is a potential outcome of risk-classification for applicants?
What is a potential outcome of risk-classification for applicants?
What should be evaluated when deciding on an insurance grant?
What should be evaluated when deciding on an insurance grant?
Which aspect does risk-classification NOT directly address?
Which aspect does risk-classification NOT directly address?
What drives the tendency of individuals to seek out insurance?
What drives the tendency of individuals to seek out insurance?
What is an essential requirement for life insurance contracts?
What is an essential requirement for life insurance contracts?
In property insurance contracts, when is insurable interest required?
In property insurance contracts, when is insurable interest required?
What is a characteristic of insurance contracts compared to general legal contracts?
What is a characteristic of insurance contracts compared to general legal contracts?
Why is insurable interest important in insurance contracts?
Why is insurable interest important in insurance contracts?
Which statement is true regarding insurable interest in life assurance?
Which statement is true regarding insurable interest in life assurance?
What governs the relationship of utmost good faith in insurance contracts?
What governs the relationship of utmost good faith in insurance contracts?
When does insurable interest have to be present in property insurance contracts?
When does insurable interest have to be present in property insurance contracts?
What is a common misconception about insurable interest in life insurance?
What is a common misconception about insurable interest in life insurance?
Study Notes
High-Risk Individuals and Insurance
- Individuals consuming 'Paan Masala', sedatives, or stimulants are considered high-risk by insurance companies.
- Occupations like mining, stunt artistry, and nightclub dancing expose individuals to health hazards.
Occupational Hazards
- Film-stunt artists and dancers in nightclubs are more likely to face health risks due to occupational demands.
- Demolition experts face significant accidental hazards in their work environment.
Underwriting Methods
- Mortality-rate concepts may lead to a reduced death benefit if cause-specific within a limited timeframe.
- Underwriters assign positive or negative rating points based on health evaluations to determine risk acceptance.
Judgement Methods in Underwriting
- Subjective judgement involves expert opinions for complex risk cases, rather than rigid criteria.
Risk Acceptance for Applicants
- Non-smokers, teetotalers, and individuals seeking life assurance may still face varying rules for risk acceptance.
- Extra premiums may be imposed or liens placed on policies for certain health evaluations.
Risk Classification
- Individuals are categorized based on their potential risks, impacting insurance terms and premium classifications.
- Similar risk classes are grouped to streamline evaluations and facilitate decisions on granting insurance.
Distinction of Insurance Contracts
- Unlike general legal contracts, insurance contracts rely on the principle of Uberrima Fidei, or utmost good faith, emphasizing the need for full disclosure.
Insurable Interest
- For life insurance, insurable interest must be present at the time of policy initiation, not required during claims.
- For property insurance, insurable interest also needs to be established at the policy's inception, fulfilling essential legal criteria.
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Description
This quiz dives into the fundamental concepts of insurance, focusing on the roles and responsibilities of policyholders. Test your knowledge on premiums, individuals involved, and the insurance process. Ideal for anyone interested in understanding the insurance industry.
