Important Terms Related to Insurance Sector

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What is the meaning of "Sum Assured" in an insurance policy?

The premium amount paid by the policyholder

The total amount paid by the insurer to the policyholder as maturity benefit

The guaranteed amount payable to the policyholder or nominee upon the occurrence of an insured event

The interest earned on the policy

Which of the following best describes "Underwriting" in insurance?

Issuing the policy document to the policyholder

Assessing and evaluating risks to determine whether to accept or reject an insurance proposal

Paying claims to policyholders

Collecting premiums from policyholders

"Claim Settlement Ratio" refers to:

The ratio of rejected claims to total claims received

The ratio of settled claims to total claims received

The ratio of premiums collected to claims paid

The ratio of policies issued to claims received

What is "Rider" in the context of insurance?

An additional coverage or benefit attached to the main policy

A policy that covers two individuals jointly

A policy that provides loans to the insured

The premium paid for a life insurance policy

"Grace Period" in an insurance policy refers to:

The period between the policy issuance and the first premium payment

The time given after the due date of premium payment during which the policy remains in force

The time taken by the insurer to settle a claim

The waiting period for policy benefits to start