The pooling principle provides protection against the economic loss arising as a result of one’s untimely death and providing security of investment through pooling and evening out of financial risk as well.

Healthcare in India has become of great importance in recent times. Increased income, health consciousness, price liberalization and the introduction of private healthcare financing is bringing the change.

Misrepresentation and non-disclosure constitute breach of utmost good faith.

Insurability of women is governed by need for insurance and capacity to pay premiums. Thus, insurance companies may decide to grant full insurance only to those who have earned income of their own and may impose limits on other categories of women. Similarly, some conditions may be levied on pregnant women.

IRDA charges Rs. 250 for issuance of licence to act as an agent of an insurance company.

Insurable interest is essentially a monetary interest which one should have on the continuing existence of the object of insurance therefore friends taking out insurance on one another is not insurable interest. 

Section 80D of the Income Tax Act deals with rebates.

Agents may not be helpful in tax planning.

The higher the premium paid by you towards your life insurance, the higher will be the compensation paid to the beneficiary in the event of your death.

A 401(k) retirement plan that is sold to sponsors as one unit, which includes investment, administration, education and record keeping

ULIP is a life insurance product which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds.

All of the above are correct with regards to portfolio method. The portfolio method is an accounting method that credits all funds on the specified current rate of interest, regardless of when the money was placed in the account. 

Keyman insurance helps a business recover from the loss of its valuable assets viz. the persons who run it and/or own it. Individual talents are becoming critical to the success of many companies and employees are also becoming an important factor in investors' valuation of the entities. Every business has at least a few very valuable employees who contribute significantly to the running and growth of the company.

Controller of Insurance

As the name suggests, perpetuity is a bond or security with no fixed maturity date.

Declined life means a life to which insurance cover could not be granted at affordable cost. 

Higher cover and lower premiums are the reasons why it is advantageous to go for a family floater rather than non-floater.

In a standard insurance policy document, the standard provisions section will have all the information regarding the rights and privileges and other conditions which are applicable under the contract.

An underwriter is an investment bank that helps companies introduce their new securities to the market. In the insurance business, an underwriter is a company liable for insured losses in return for a fee (premium).

Risk prevention aims at avoidance of loss through insurance.

People tend to borrow more as their lifestyle and needs are changing. 

Death claim under a money back plan is sum insured. 

An endowment policy is a life insurance contract to pay a lump sum after a specific term (on its 'maturity') or on death. It does not need a medical examination.

In traditional life insurance policies, the investment risk is borne by the insurance company, while in unit linked plans, the investment risk is borne by the unitholder.

Agent is known as primary underwriter. He or she is in the best position to ascertain if the facts being presented are true, since he or she is in the direct contact with the proposed life.

Correct answer: Standalone companies are specifically barred from covering rural masses. Standalone companies are involved in government schemes to provide insurance to rural masses.

A minor nominee cannot be a claimant under any policy.

Ethical behavior is not necessary for insurance agents, as it helps in developing trust between the agent and the insurer.

At the time of taking policy, the insurable interest should be present in a life insurance contract.

The dividends declared under contribution method can be any of the above.

In early death claim, the insurer orders an investigation. 

All of the above are the facts of LIC.

Terminal bonus is also known as persistency bonus which is paid once, i.e. at the time of maturity of the policy. It is a sort of loyalty bonus given to a policyholder for maintaining the policy till maturity.

An insurance agent is a representative of insurance company.

Correct Answer: Bank deposits

Transactional marketing is a business strategy that focuses on single "point of sale" transactions. The emphasis is on maximizing the efficiency and volume of individual sales rather than developing a relationship with the buyer. 

As per IRDA regulations issued, the grace period allowed beyond the expiry date of a policy for renewal is 30 days.

A third-party administrator (TPA) is an organization that processes insurance claims or certain aspects of employee benefit plans for a separate entity. Insurer or TPA can issue smart identity card. 

A free look period is where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges. If you have bought a policy and realise you don’t want it, you can return it and get a refund. There are conditions though. This applies only to life insurance policies and to health insurance policy that are for a term of at least 3 years. You can exercise this option within 15 days of receiving the policy document You have to communicate to the company in writing. The premium refund will be adjusted for proportionate risk premium for the period on cover, expenses incurred by the insurer on medical examination and stamp duty charges. 

IRDA (Protection of Policyholders' interests) Regulations, 2002 deals with claims.

The Insurance Ombudsman scheme was created by the Government of India for individual policyholders to have their complaints settled out of courts in a cost-effective, efficient and impartial way.

If a policyholder dies within the grace period, then the claim is payable after deducting the premium. 

Restructuring of debts refers to clearing more interest loans and paying them with less interest loans.

Debt restructuring is a process that allows a private or public company, or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts in order to improve or restore liquidity so that it can continue its operations. 

Notice of assignment and notice of nomination have to be given to the insurer.

Exclusions in a health insurance policy mean diseases specifically not covered.

Correct Answer: II is true. Under MWP Act, in case of a death claim, the policy proceeds are received by the trust and cannot be claimed by the debtors nor will it form part of the estate of the proposer. Hence, the welfare/the wife/child/children are protected with utmost care.

An insurance contract terminates after claim is paid.

The Ombudsman functions within a set geographical jurisdiction and can entertain disputes relating to partial/total repudiation of claims, delay in settlement of claims, any dispute on the legal construction of the policies in so far as such disputes relate to claims, disputes regarding premium paid or payable in terms of the policy and non-issuance of insurance documents.

The complaint is to be made in writing.

'Declaration of good health' form is not required for settlement of a death claim.