50 MCQ-OBLIGATIONS AND RIGHTS OF INSURER

50 MCQ-OBLIGATIONS AND RIGHTS OF INSURER AND INSURED

Question: Which of the following is an obligation of the insured under an insurance contract?

A) Paying the premium
B) Issuing the policy document
C) Settling claims
D) Approving policy changes
Answer: A) Paying the premium

Question: What is a right of the insured in an insurance contract?

A) Denying claims unilaterally
B) Inspecting insurer’s financial records
C) Modifying policy terms without consent
D) Cancelling the policy
Answer: B) Inspecting insurer’s financial records

Question: Which obligation typically falls on the insurer in an insurance agreement?

A) Providing false information
B) Paying claims as per policy terms
C) Not disclosing policy terms
D) Refusing to honor valid claims
Answer: B) Paying claims as per policy terms

Question: What is a right of the insurer regarding policy cancellation?

A) Cancel the policy without notice
B) Cancel the policy only for non-payment of premium
C) Cancel the policy after a claim is filed
D) Cancel the policy with immediate effect
Answer: B) Cancel the policy only for non-payment of premium

Question: Under Indian insurance law, who has the obligation to disclose all material facts related to the insurance policy?

A) Only the insurer
B) Only the insured
C) Both the insured and insurer
D) Neither the insured nor insurer
Answer: C) Both the insured and insurer

Question: Which of the following is a duty of the insured when filing a claim under an insurance policy?

A) Exaggerating the loss
B) Providing false information
C) Co-operating with the insurer in the investigation of the claim
D) Refusing to submit required documents
Answer: C) Co-operating with the insurer in the investigation of the claim

Question: What right does an insured have in case of dissatisfaction with the claim settlement?

A) File a lawsuit against the insurer without notice
B) Request a review or reconsideration of the claim settlement
C) Refuse to provide any further information
D) Receive automatic compensation
Answer: B) Request a review or reconsideration of the claim settlement

Question: Which party typically has the obligation to maintain confidentiality of sensitive information under an insurance contract?

A) Only the insurer
B) Only the insured
C) Both the insured and insurer
D) No obligation of confidentiality exists
Answer: C) Both the insured and insurer

Question: Under what circumstance can an insurer deny a claim under an insurance policy?

A) If the insured has made a claim before the policy start date
B) If the insured fails to disclose material facts related to the risk
C) If the insured has paid the premium in advance
D) If the insured is late in submitting non-required documents
Answer: B) If the insured fails to disclose material facts related to the risk

Question: What is a right of the insurer regarding policy renewal?

A) Renew the policy without the insured’s consent
B) Renew the policy at any premium rate
C) Refuse to renew the policy without providing reasons
D) Change policy terms at renewal without notice
Answer: C) Refuse to renew the policy without providing reasons

Question: What is an obligation of the insurer regarding policy documentation?

A) Issuing the policy within 6 months of the application date
B) Providing policy documents only upon request
C) Providing policy documents that accurately reflect the agreed terms
D) Sending policy documents via email without confirmation
Answer: C) Providing policy documents that accurately reflect the agreed terms

Question: What right does an insured have if the insurer breaches the terms of the insurance contract?

A) Only the right to cancel the policy without notice
B) Only the right to demand double compensation
C) The right to take legal action for breach of contract
D) The right to change policy terms unilaterally
Answer: C) The right to take legal action for breach of contract

Question: What obligation does the insured have if there is a change in the risk during the policy period?

A) Notify the insurer promptly
B) Conceal the change to avoid premium increase
C) Change policy terms without informing the insurer
D) Ignore the change until policy renewal
Answer: A) Notify the insurer promptly

Question: Which party has the obligation to pay the premium under an insurance contract?

A) Only the insured
B) Only the insurer
C) Both the insured and insurer jointly
D) No obligation to pay premium exists
Answer: A) Only the insured

Question: What right does the insured have regarding policy cancellation?

A) Cancel the policy at any time without notice
B) Cancel the policy only with insurer’s consent
C) Cancel the policy after a claim is filed
D) Cancel the policy if premium rates increase
Answer: B) Cancel the policy only with insurer’s consent

Question: What is an obligation of the insurer when there is a claim under an insurance policy?

A) Delay claim settlement indefinitely
B) Pay claim within a reasonable time frame
C) Deny the claim without investigation
D) Ignore claim requests from insured
Answer: B) Pay claim within a reasonable time frame

Question: Which right does the insured have regarding premium payment?

A) Pay premium only after claim settlement
B) Pay premium at any time during policy term
C) Pay premium only if insurer demands
D) Pay premium as per agreed schedule
Answer: D) Pay premium as per agreed schedule

Question: Under what circumstance can an insurer cancel an insurance policy?

A) Only if insured requests cancellation
B) Only if insurer is unable to pay claims
C) If insured breaches policy terms
D) If insured makes a claim
Answer: C) If insured breaches policy terms

Question: What right does the insurer have regarding policy terms?

A) Change policy terms without notice
B) Refuse to provide policy terms in writing
C) Increase premium rates without informing insured
D) Decrease coverage without informing insured
Answer: A) Change policy terms without notice

Question: What is an obligation of the insured regarding policy information?

A) Keep policy details confidential
B) Disclose all material facts accurately
C) Refuse to provide policy documents
D) Provide false information to insurer
Answer: B) Disclose all material facts accurately

Question: What right does an insured have regarding insurer’s decision on a claim?

A) No right to dispute insurer’s decision
B) Appeal insurer’s decision within a specified time
C) Automatically receive full compensation
D) Demand immediate claim settlement
Answer: B) Appeal insurer’s decision within a specified time

Question: Under Indian law, what is an insurer obligated to do in case of a claim dispute?

A) Ignore the dispute
B) Provide mediation services
C) Deny the claim without investigation
D) Resolve the dispute promptly
Answer: D) Resolve the dispute promptly

Question: What right does the insurer have regarding policy renewal?

A) Renew the policy at any premium rate
B) Automatically renew the policy without consent
C) Refuse to renew the policy without notice
D) Renew the policy with increased coverage
Answer: C) Refuse to renew the policy without notice

Question: What obligation does the insurer have regarding policy documentation?

A) Provide policy documents only upon request
B) Issue policy documents within 3 months of application
C) Issue policy documents that accurately reflect agreed terms
D) Send policy documents electronically without confirmation
Answer: C) Issue policy documents that accurately reflect agreed terms

Question: Which party has the obligation to handle disputes under an insurance contract?

A) Only the insured
B) Only the insurer
C) Both the insured and insurer jointly
D) No obligation exists to handle disputes
Answer: C) Both the insured and insurer jointly

Question: What right does the insured have regarding cancellation of the policy?

A) Cancel the policy without notice
B) Cancel the policy only after renewal
C) Cancel the policy with insurer’s consent
D) Cancel the policy if premium increases
Answer: C) Cancel the policy with insurer’s consent

Question: Under Indian law, what obligation does the insurer have regarding policy terms?

A) Change policy terms without notice
B) Provide policy terms that are clear and transparent
C) Increase premium rates without informing insured
D) Deny claim without investigation
Answer: B) Provide policy terms that are clear and transparent

Question: What is a right of the insurer if the insured breaches the policy terms?

A) Automatically cancel the policy
B) Deny all future claims
C) Increase premium rates without notice
D) Take legal action against the insured
Answer: D) Take legal action against the insured

Question: What obligation does the insured have regarding premium payment?

A) Pay premium only after claim settlement
B) Pay premium as per agreed schedule
C) Pay premium only if insurer demands
D) Delay premium payment indefinitely
Answer: B) Pay premium as per agreed schedule

Question: What is a right of the insurer regarding policy cancellation?

A) Cancel the policy without providing reasons
B) Cancel the policy only after a claim is filed
C) Cancel the policy without notice
D) Cancel the policy only with insured’s consent
Answer: D) Cancel the policy only with insured’s consent

Question: What obligation does the insurer have regarding claim settlement?

A) Deny all claims
B) Delay claim settlement indefinitely
C) Pay claims as per policy terms
D) Pay claims only if insured insists
Answer: C) Pay claims as per policy terms

Question: What right does the insured have regarding insurer’s decision on a claim?

A) Automatically receive full compensation
B) Appeal insurer’s decision within a specified time
C) No right to dispute insurer’s decision
D) Demand immediate claim settlement
Answer: B) Appeal insurer’s decision within a specified time