IC38 Health Insurance Documentation MCQs (30 Questions with Answers)

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Practice IC38 Health Insurance Documentation MCQs with answers and explanations. Covers proposal form, underwriting, policy document, and endorsements.

Health Insurance Documentation MCQs

1. Proposal form is:

A. Final contract
B. Initial document
C. Claim form
D. Receipt

Show Answer

Answer: B
Explanation: It is the first document of insurance.

2. Proposal form is filled by:

A. Insurer
B. Agent
C. Proposer
D. TPA

Show Answer

Answer: C
Explanation: Proposer provides required information.

3. Proposal form contains:

A. Claim details
B. Personal and medical details
C. Only premium
D. Only benefits

Show Answer

Answer: B
Explanation: It includes all relevant information.

4. Material fact means:

A. Unimportant detail
B. Any information affecting risk
C. Only medical info
D. Only financial data

Show Answer

Answer: B
Explanation: It influences insurer’s decision.

5. Non-disclosure leads to:

A. Profit
B. Policy cancellation
C. Bonus
D. Discount

Show Answer

Answer: B
Explanation: Policy may become void.

6. Medical examination is required:

A. Always
B. Never
C. In specific cases
D. Only for claims

Show Answer

Answer: C
Explanation: Depends on risk factors.

7. Underwriting means:

A. Selling policy
B. Risk evaluation
C. Claim settlement
D. Premium payment

Show Answer

Answer: B
Explanation: Insurer assesses risk.

8. Insurer may reject proposal if:

A. Risk is low
B. Risk is high
C. Premium is low
D. Policy is old

Show Answer

Answer: B
Explanation: High risk may be unacceptable.

9. Prospectus is:

A. Legal notice
B. Product information document
C. Claim form
D. Receipt

Show Answer

Answer: B
Explanation: It explains policy features.

10. Policy document is:

A. Advertisement
B. Contract
C. Receipt
D. Proposal

Show Answer

Answer: B
Explanation: It is the legal agreement.

11. Policy document includes:

A. Terms and conditions
B. Only premium
C. Only name
D. Only claim

Show Answer

Answer: A
Explanation: It contains full details.

12. Exclusions are:

A. Covered risks
B. Not covered risks
C. Premium details
D. Claims

Show Answer

Answer: B
Explanation: Exclusions define limits.

13. Endorsement means:

A. Cancellation
B. Change in policy
C. Claim
D. Renewal

Show Answer

Answer: B
Explanation: It modifies policy terms.

14. Example of endorsement:

A. Claim payment
B. Adding member
C. Premium payment
D. Renewal

Show Answer

Answer: B
Explanation: Policy changes are endorsements.

15. Free look period allows:

A. Claim
B. Cancellation
C. Renewal
D. Premium increase

Show Answer

Answer: B
Explanation: Policyholder can review and cancel.

16. Warranty is:

A. Optional
B. Strict condition
C. Suggestion
D. Advice

Show Answer

Answer: B
Explanation: Must be followed strictly.

17. Condition is:

A. Suggestion
B. Policy rule
C. Claim
D. Bonus

Show Answer

Answer: B
Explanation: It governs policy.

18. Insurer decides premium based on:

A. Guess
B. Underwriting
C. Agent
D. Customer

Show Answer

Answer: B
Explanation: Risk assessment determines premium.

19. Proposal form helps in:

A. Claim settlement
B. Risk assessment
C. Premium payment
D. Renewal

Show Answer

Answer: B
Explanation: It provides risk data.

20. Incorrect information leads to:

A. Bonus
B. Claim rejection
C. Discount
D. Profit

Show Answer

Answer: B
Explanation: Misrepresentation affects claims.

21. Insured must disclose:

A. Only name
B. All material facts
C. Only age
D. Only address

Show Answer

Answer: B
Explanation: Full disclosure is required.

22. Policy document is issued by:

A. Agent
B. Insurer
C. Broker
D. Customer

Show Answer

Answer: B
Explanation: Insurer issues contract.

23. Proposal form is basis of:

A. Claim
B. Contract
C. Bonus
D. Discount

Show Answer

Answer: B
Explanation: It forms contract foundation.

24. Prospectus helps:

A. Insurer
B. Customer understand policy
C. Agent earn
D. Claim settle

Show Answer

Answer: B

25. Endorsement is done:

A. Before policy
B. After policy
C. During claim
D. During underwriting

Show Answer

Answer: B

26. Underwriting decision includes:

A. Accept or reject
B. Only accept
C. Only reject
D. Only modify

Show Answer

Answer: A

27. Proposal form is:

A. Optional
B. Mandatory
C. Unnecessary
D. Temporary

Show Answer

Answer: B

28. Medical test helps in:

A. Claim
B. Risk evaluation
C. Payment
D. Renewal

Show Answer

Answer: B

29. Policy terms include:

A. Benefits
B. Conditions
C. Exclusions
D. All of these

Show Answer

Answer: D

30. Insurance contract is:

A. Informal
B. Legal
C. Temporary
D. Verbal

Show Answer

Answer: B

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