IC02 - LICENTIATE - Practice Of Life Insurance 32
IC02 - LICENTIATE - Practice Of Life Insurance 32
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Q 1. Which type of hazards are associated with the job a person does and considered in underwriting?
A) Occupational hazards
B) Physical hazards
C) Financial hazards
D) Moral hazards
E) None of the above
Q 2. Which of the following is an example of the changing attitudes of insurers to diseases?
A) Risk attached to smoking
B) Risk attached to drinking
C) Risk attached to diabetes
D) Risk attached to polio
E) All of the above
Q 3. What does the policy document define?
A) Rights, duties, and obligations of the insurer and the policyholder
B) Investment returns and dividends
C) Sales commissions for insurance agents
D) Underwriting guidelines for the insurer
E) None of the above
Q 4. Can changes to the policy document be made after its issuance?
A) Yes, with the consent of both the policyholder and insurer
B) No, changes are not allowed once the policy is issued
C) Yes, only if the premiums are increased
D) No, the terms and conditions are fixed
E) None of the above
Q 5. Which type of policy condition provides extended or supplementary benefits?
A) Explanatory conditions
B) Restrictive conditions
C) Privileges
D) Supplementary benefits
E) None of the above
Q 6. What information is typically included in part 3 of an insurance policy?
A) Details of the policyholder's rights to commute or accumulate installments
B) Terms and conditions relating to age, admission, lapse, non-forfeiture, revival, loans, surrender values, assignments, nominations, exclusions, etc.
C) Amount of guaranteed surrender value
D) Details of the benefits payable, including riders
E) None of the above
Q 7. When do alterations in the premium payment frequency from quarterly to half-yearly or yearly typically not incur a fee?
A) When the policy has been in force for more than 5 years
B) When the alteration involves increasing the sum assured
C) When the alteration extends the premium paying period
D) When the alteration reduces administrative work
E) None of the above
Q 8. What costs does a policyholder typically bear when obtaining a duplicate policy?
A) Advertisement costs (if required)
B) Stamp duty
C) Indemnity bond fees
D) Rubber stamp fees
E) All of the above
Q 9. How does a person's health condition affect insurance premiums?
A) It has no impact
B) It lowers the premiums
C) It increases the premiums
D) It determines the policy term
E) It determines the claim process
Q 10. How do insurance companies typically calculate the age of the policyholder?
A) By considering only the years completed
B) By considering months and days
C) By considering the number of dependents
D) By considering the policy term
E) By considering the occupation
Q 11. What happens if the insured's age is proven higher than originally stated, justifying a higher premium?
A) Premiums remain unchanged
B) The policy is canceled and premiums are refunded
C) The policy continues with adjusted premiums
D) The policyholder is required to pay the difference in premiums
E) The insurer adjusts the premium without notifying the insured
Q 12. What is the premium amount for an Endowment Plan with a sum assured of Rs. 35,000, a yearly mode of payment, and a tabular premium rate of Rs. 51.60 per thousand?
A) Rs. 1,700
B) Rs. 1,717
C) Rs. 1,750
D) Rs. 1,800
E) Rs. 1,900
Q 13. What are the various modes for collecting premium payments?
A) Electronic methods only
B) Bank transfers only
C) Cash payments only
D) Authorized collecting agents and drop-boxes
E) Premium refund methods
Q 14. What happens if the premium is not paid within the grace period?
A) The insurer must admit the claim
B) The policy continues with a penalty
C) The policy lapses
D) The premium is waived
E) The grace period is extended
Q 15. When is surrender value or cash value generally made available to a policyholder?
A) After the policy has remained in force for at least three years
B) Immediately upon policy issuance
C) After the payment of the first premium
D) After the completion of the full policy term
E) Only if the policyholder requests it