Solution:
Insurer bears the investment risk in a fixed benefit annuity. The annuitant bears the investment risk in a variable annuity, whereas the insurer bears the investment risk in a fixed annuity.

Solution:
Personal history and family history of a proposer are equally important. Medical history is an important determinant of longevity and as such is an important consideration for the insurers. There are questions pertaining to the health status of family members of the life to be assured.

Solution:
All the above are correct under special revival. It is as though a new policy is issued by altering DOC, The maturity date also gets altered and difference between old and new premium is payable.

Solution:
Misrepresentation and non-disclosure constitute breach of utmost good faith. In an insurance policy, misrepresentation on the behalf of the insured gives the insurance company a right to terminate the policy. Non-disclosure means failure to divulge a relevant fact when applying for an insurance policy. This is a violation of the principle of good faith which should be observed in insurance negotiations.

Solution:
A free look period is where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges.If you have bought a policy and realise you don't want it, you can return it and get a refund. There are conditions though.This applies only to life insurance policies and to health insurance policy that are for a term of at least 3 years.You can exercise this option within 15 days of receiving the policy document You have to communicate to the company in writing. The premium refund will be adjusted for proportionate risk premium for the period on cover, expenses incurred by the insurer on medical examination and stamp duty charges.

Solution:
Insurance contract can be declared void in both Innocent misrepresentation and fraudulent misrepresentation. Innocent misrepresentation is a misrepresentation made by someone who had reasonable grounds for believing that his false statement was true. Fraudulent misrepresentation is a civil tort arising out of contract law. It is a false statement of fact that causes or induces someone to enter into a contract.

Solution:
Mutuality or pooling principle means flow of resources from many to one. Mutuality is the principle of private, commercial insurance; individuals enter the pool for sharing losses, and pay according to the best estimate of the risk they bring with them.