IC02 - LICENTIATE - Practice Of Life Insurance 19
IC02 - LICENTIATE - Practice Of Life Insurance 19
Q 1. What is the term used for the process of analyzing and assessing the risk associated with an insurance proposal?
A) Underwriting
B) Issuance
C) Application
D) Nominations
E) Claims
Q 2. What is the purpose of structuring activities in an organization?
A) To stabilize processes and avoid wasteful conflicts
B) To define authority and responsibility
C) To assign responsibilities for results
D) To clarify decisions on activities, location, and resources
E) To ensure the smooth functioning of activities
Q 3. Who represents more than one insurance company and charges commission only from the insurer?
A) Insurance agent
B) Insurance broker
C) Corporate Agent
D) Telemarketer
E) Ethical salesman
Q 4. Who is responsible for recruiting and training suitable persons as agents in LIC?
A) Branch Managers
B) Career Agents
C) Development Officers
D) Direct Agents
E) Corporate Insurance Executives
Q 5. How may agents be remunerated?
A) Only through a fixed monthly salary
B) Only through commission based on business
C) Only through a combination of fixed salary and commission
D) Either through a fixed monthly salary, commission, or a combination
E) None of the above
Q 6. Which distribution channel contributes the maximum share of life insurance business in developing and developed countries?
A) Agency
B) Brokerage
C) Banks
D) Direct mailing
E) None of the above
Q 7. Why is Nishant surprised about the difference in premium amounts?
A) His friend purchased the policy at a younger age.
B) His friend has a higher income than him.
C) The policy coverage is different for his friend.
D) The company has changed its pricing strategy.
E) The policy terms and conditions have changed.
Q 8. What is the sum assured in an insurance policy?
A) The premium amount paid by the policyholder
B) The amount paid by the insurance company if the policyholder dies during the policy term
C) The amount paid by the policyholder to the insurance company as consideration
D) The investment returns earned by the insurance company
E) The administrative expenses of the insurance company
Q 9. What is the primary responsibility of an actuary about insurance companies?
A) Protecting the benefits promised by insurance companies
B) Designing insurance products
C) Analyzing trends in the mortality rate
D) Evaluating the solvency of the insurance company
E) Providing actuarial advice on investment decisions
Q 10. What is the purpose of keeping a portion of the premium aside after outgoes?
A) To invest and earn interest
B) To pay for survival benefits
C) To reduce the net premium
D) To cover the expenses of the insurance company
E) To meet the payment of claims
Q 11. What is the term used for the level premium figure after adding expenses like commission and salaries?
A) Net premium
B) Pure premium
C) Office premium
D) Tabular premium
E) Risk premium
Q 12. Which factor affects the gross premium of an insurance policy?
A) The policyholder's age
B) The sum assured
C) The policy term
D) The policyholder's occupation
E) The policyholder's health condition
Q 13. What is one of the factors that can affect the insurance premium?
A) Occupation of the insured individual
B) Gender of the insured individual
C) Marital status of the insured individual
D) Education level of the insured individual
E) Nationality of the insured individual
Q 14. What rules are followed by insurance companies when dealing with paisa in the premium amount?
A) Ignored
B) Rounded off to the next higher integer
C) Rounded off to the nearest 50 paisa
D) Any of the above rules
E) No specific rules
Q 15. What is the purpose of the interim bonus?
A) To encourage policyholders to continue their policies
B) To provide a one-time bonus at maturity
C) To compensate for the premiums paid
D) To attract new policyholders
E) To reward policyholders with long-term coverage