An officer can conduct special enquiry in the case of death claim on suspicion of suppression of facts.

Reversionary Bonuses are declared regularly and paid at the end (at the time of claim), i.e. on maturity of policy or death of the person. Hence, option (3) is incorrect.

In case the proponent has no insurable interest in the insured, the underwriter will accept with reduced sum assured.

An agent licenced to act as such for an insurer is required to have a licence under Section 42 of the Insurance Act, 1938 for procuring and continuing insurance business against payment of commission by the insurer. Banks can now act as brokers for life insurance businesses. It is not mandatory for an individual to be a trained person to work for an insurance company. Hence, option (2) is the correct answer.

Mortality is related to age and hence, young people who are less likely to die are charged lower premiums as compared to old people.

In case of ULIPs, allocation charges are deducted from the initial premiums itself. As a result, less amount would be allocated for investment in units.

All the given statements are correct.

A composite insurance agent means an individual who is appointed as an insurance agent by two or more insurers, subject to the condition that he/she shall not act as insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the mono-line insurers.

In non-traditional plans, protection and saving elements were separated.

Preferred risks are the ones whose anticipated morbidity is significantly lower than average and hence, could be charged a lower premium.

An ordinary annuity is a series of equal payments made at the end of each period for a fixed period of time.

The insurable interest of a mortgagor in the mortgage’s life is equal to the amount of original loan.

According to the Indian Stamp Act, the policy document has to be signed by a competent authority as well as stamped. Hence, option (2) is correct.

Universal life can provide you with a variety of different payment options, including a flexibility of changing your death benefits, as well as the potential to accumulate cash value over time. Hence, option (2) is correct.

A family floater health insurance plan is an insurance plan that is tailor-made for families. It is quite similar to the individual health plan with an add-on benefit of providing health coverage for the entire family.

In Current Money Method, the returns depend on when the investment was made and the rate that was secured at the time of investment. It has also been called segmented or investment block method as different investment blocks get different returns. Hence, all the given statements about Current Money Method are correct.

Switching is the special feature of Unit Linked Policy that allowed change from one fund to another.

Risk transfer involves transferring the responsibility for losses to another party (which is insurance company in this case). Here, the losses that may arise as a result of a fortuitous event (or peril) are transferred to another entity. 

Non-standard age proof documents include ration card, voter ID, elder’s declaration, gram panchayat certificate, etc. 

Natural wear and tear cannot be categorised under risk.

Savings is a composite of postponement of consumption and parting with liquidity.

Both the given statements are correct.

Insurance companies are coming up with some medical policies where the proposer is not required to undergo any medical examination. In such cases, companies usually create a ‘medical grid’ to indicate at what age and stage should a medical underwriting be done and therefore, these non-medical limits are carefully designed so as to strike a proper balance between business and risk.

Section 45 (Indisputability Clause) of the Insurance Act offers protection against rejection of claim by the insurer on flimsy grounds provided and sets a time limit of 3 years for the Insurer for calling a policy into question.

Money back plan is typically an endowment plan with the provision for return of a part of the sum assured in periodic installments during the term and balance of sum assured at the end of the term.

The premium of ULIP is divided into three parts: a) Firstly, there is a policy allocation charge (PAC) which is comprised of agents’ commission, policy setup costs, administrative costs and statutory levies. b) The second component is the mortality charge which is the cost of providing risk cover. c) The balance of premiums after meeting the above two are allocated for the purchase of units. 

In group insurance, risk of individuals is assessed in a group. Hence, the given statement is true.

If a person's proposal is declined under individual scheme, he cannot get insured even under the group policy. Hence, only statement A is correct.

Retirement planning involves three phases:

1. Accumulation
2. Conservation
3. Distribution Inflation is not a phase of retirement planning. 

Mortality is taken into account while fixing the premium.

All the above statements regarding nomination are true.

Surplus allocation could be towards maintaining solvency requirements, increasing free assets, etc.

There is no limit for applying to the National Consumer Disputes Commission.

Paid-up value is the reduced amount of sum assured paid by the insurer in case of discontinuation of the payment of premiums after paying the full premiums for the first three years. Surrender value is a percentage of paid-up value. Hence, a policy can be surrendered only if it has acquired paid up value.

Underwriting is not a reason for proper financial planning.

Subsidy is not an element of the life insurance business.

Financial planning should ideally start at the moment when one earns his first salary. There is no trigger as such that says when one should begin to plan. There is, however, an important principle that should guide us – the longer the time period of our investments, the more they will multiply.

A free look period is a period where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges.

Bank deposit fulfills the savings needs of a human being.

IRDA (Protection of Policyholders’ Interests) Regulations, 2002 defines a proposal form.

The easiest people to approach would be one’s family and friends. Also, relatively easy to approach are people with whom we do business; people who work in the food stores, clothing stores, banks, etc. Other such people would be those who know us such as friends, acquaintances, people who belong to the same organisations and so forth. To sum up, these prospects form part of what we call the sales person’s natural market.

A deferred annuity is where periodic benefits are scheduled to begin after a period, say at least 12 months after the date of purchase of the annuity. Every deferred annuity in turn has two periods – an accumulation period between when the annuity is purchased and the annuity payments begin, and a payout or liquidation period during which the insurer makes the annuity payments.

A fixed benefit annuity is where the insurer guarantees a defined amount of monthly annuity benefit for each rupee applied to purchase an annuity. The guarantee implies that the insurer bears the investment risk.

Life insurance policies are contracts of assurance, while general insurance policies are contracts of indemnity.

The recommendations of the Ombudsman are not binding on the insured. Hence, option (2) is the incorrect statement.

Before the composite licence could be renewed, the applicant needs to undergo renewal training of 35 hours from an approved institution.

In a policy document, it is now compulsory to indicate the address of the local Ombudsman.

IRDA has prescribed the design and content of a proposal form through IRDA (Standard Proposal Form for Insurance) Regulations, 2013.

The sum insured under a health insurance policy primarily depends on the age of the person insured.

Conditional assignment would suit the intended purpose because conditional assignment provides that the policy shall revert back to the life assured on his or her surviving the date of maturity or on death of the assignee.