IIQE Paper 3 - Chapter 1 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update
Initially, life insurance policies were:
a. not protect against accidental death
b. long-term death benefit arrangements
c. only be provided for benefit payments to be made where life insured is
alive in specified period
,d. short term and benefit payments to be made in specified period -
🧠ANSWER ✔✔d. short term and benefit payments to be made in specified
period
Which of the following are correct in describing utmost good faith?
i. It does not expect the insured to disclose information he is reasonably not
expected to know
ii. Life insurance only requires the insured has utmost good faith when
answering the insurer's question
iii. The insured does not need to disclose information not being asked in the
application of a non-medical application
iv. A breach in utmost good faith without fraud can be exempted after
contestable period
a. i, ii, iii
b. i, iii, iv
c. ii, iii, iv
,d. i, ii, iv - 🧠ANSWER ✔✔b. i, iii, iv
According to insurable interest, a person can purchase insurance for which
3 of the following people:
i. Spouse
ii. His 10 years old children
iii. His debtor
iv. His creditor
a. i, ii, iii
b. i, iii, iv
c. i, ii, iv
d. ii, iii, iv - 🧠ANSWER ✔✔a. i, ii, iii
The three factors in the general calculation of life insurance premiums are
mortality, expenses and :
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, a. Insurer's profit
b. Current investment rate
c. Projected interest earnings
d. Net profit margin - 🧠ANSWER ✔✔c. Projected interest earnings
A man arranges a non-medical application. He has no intention to mislead
the insurer about his health conditions, but if all the truths had been told,
insurer would not have provided the cover. Later the mans dies and the
truths all come out. Which of the following is not correct?
a. Insurer can revoke the insurance contract regardless what time of death.
b. Insurer can revoke the contract if death occurs within 2 years when the
policy becomes effective.
c. Insurer cannot contest if death occurs after 2 years when the policy
becomes effective.
d. No fraud is involved and insurer cannot revoke the insurance contract. -
🧠ANSWER ✔✔a. Insurer can revoke the insurance contract regardless of
what time of death.
Questions with 100% Correct Answers |
Latest Update
Initially, life insurance policies were:
a. not protect against accidental death
b. long-term death benefit arrangements
c. only be provided for benefit payments to be made where life insured is
alive in specified period
,d. short term and benefit payments to be made in specified period -
🧠ANSWER ✔✔d. short term and benefit payments to be made in specified
period
Which of the following are correct in describing utmost good faith?
i. It does not expect the insured to disclose information he is reasonably not
expected to know
ii. Life insurance only requires the insured has utmost good faith when
answering the insurer's question
iii. The insured does not need to disclose information not being asked in the
application of a non-medical application
iv. A breach in utmost good faith without fraud can be exempted after
contestable period
a. i, ii, iii
b. i, iii, iv
c. ii, iii, iv
,d. i, ii, iv - 🧠ANSWER ✔✔b. i, iii, iv
According to insurable interest, a person can purchase insurance for which
3 of the following people:
i. Spouse
ii. His 10 years old children
iii. His debtor
iv. His creditor
a. i, ii, iii
b. i, iii, iv
c. i, ii, iv
d. ii, iii, iv - 🧠ANSWER ✔✔a. i, ii, iii
The three factors in the general calculation of life insurance premiums are
mortality, expenses and :
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, a. Insurer's profit
b. Current investment rate
c. Projected interest earnings
d. Net profit margin - 🧠ANSWER ✔✔c. Projected interest earnings
A man arranges a non-medical application. He has no intention to mislead
the insurer about his health conditions, but if all the truths had been told,
insurer would not have provided the cover. Later the mans dies and the
truths all come out. Which of the following is not correct?
a. Insurer can revoke the insurance contract regardless what time of death.
b. Insurer can revoke the contract if death occurs within 2 years when the
policy becomes effective.
c. Insurer cannot contest if death occurs after 2 years when the policy
becomes effective.
d. No fraud is involved and insurer cannot revoke the insurance contract. -
🧠ANSWER ✔✔a. Insurer can revoke the insurance contract regardless of
what time of death.
