Correct Answer : Indian Contract Act, 1872
An insurance contract has to fulfill the requirements of the Indian Contract Act, 1872. It determines the circumstances in which promises made by the parties to a contract shall be legally binding. Under Section 2(h), the Indian Contract Act defines a contract as an agreement which is enforceable by law.
Correct Answer : Income replacement
Income replacement ratio is a thumb rule to help you estimate this income. Simply, it is the percentage of the pre-retirement income that you are likely to need to maintain a similar standard of life in retirement. ... By this rule of thumb you will need 70% to 80% of pre-retirement income to meet your expenses.
Correct Answer : Premium less charges are invested
In a Ulip, the entire amount paid as premium is not used to purchase units. The insurers deduct certain charges and fees before allotting units. The remaining premium amount is invested in various asset classes such as debt, equity or both (called fund options) depending on policyholder's choice.
Correct Answer : There is an Ombudsman for defined territorial limits
Correct Answer : Weight
The main reason why a life insurance proposal form often asks for the proposer's height is to enable a reasonable comparison with the proposer’s Weight.
Correct Answer : Modification of the terms of a loan to debtor who could default on payments
Debt restructuring refers to modification of the terms of a loan to provide relief to a debtor who could otherwise default on payments. The restructuring may involve extending the period of repayment, reducing the total amount owed, or exchanging a portion of the debt for equity in the debtor company. Also see extension, composition, debt-for-equity swap.
Correct Answer : Section 45
The insurer’s right to reject a claim under a policy is subject to Section 45 of the Insurance Act, 1938. Section 45 deals with the insurer's right to reject a claim under a policy.
Correct Answer : Equity fund
Equity fund provides for predominant investment in equities. An equity fund is a fund that invests in stocks, also called equity securities. Equity funds are practical investments for most people. The attributes that make equity funds most suitable for small individual investors are the reduction of risk.
Correct Answer : Insurance company
An insurance agent is a representative of insurance company. Such agents are required to be licensed in the states in which they do business as well as with the specific companies they represent. In contrast to an insurance agent, an insurance broker represents a client.
Correct Answer : 5.00%
Where annually increasing flexible premiums operate under a life insurance policy, 5.00% of increase will generally apply.
