IC02 - LICENTIATE - Practice Of Life Insurance 36

IC02 - LICENTIATE - Practice Of Life Insurance 36

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Q 1. What is the premium amount for a money-back plan with a sum assured of Rs. 50,000, a half-yearly mode of payment, and a tabular premium rate of Rs. 66.80 per thousand?

A) Rs. 3,200

B) Rs. 3,350

C) Rs. 3,500

D) Rs. 3,600

E) Rs. 3,750

Q 2. What are premium notices?

A) Receipts for premium payments

B) Reminders about the premium due

C) Documents proving policy ownership

D) Policy renewal certificates

E) Notifications about policy changes

Q 3. What is the surrender value of a life insurance policy?

A) The amount of premium paid by the policyholder

B) The policyholder's accumulated savings component

C) The sum assured of the policy

D) The premium required to cover the risk

E) The earnings of the life insurance company

Q 4. What happens to overdue premiums if a policyholder dies within a specific period?

A) The overdue premiums are waived off

B) The policy is canceled and no claim is paid

C) The policy remains in force, and the claim is paid after deducting the overdue premiums with interest

D) The policy remains in force, and the claim is paid in full without any deductions

E) The policy is extended for an additional period to cover the overdue premiums

Q 5. What is the paid-up value of a policy in the given example?

A) Rs. 5,000

B) Rs. 10,000

C) Rs. 11,000

D) Rs. 6,000

E) Rs. 8,800

Q 6. How does the Extended Term Insurance cover option differ from the paid-up value option?

A) The policy remains in full force for the full sum assured

B) The premium amount is reduced

C) The policy period is extended

D) The sum assured is increased

E) The policy is converted to a whole life insurance policy

Q 7. What is the nature of proof required for revival if the policy is kept in force under the option of automatic advance of premium from surrender value?

A) No proof of continued good health is required

B) Submission of medical records

C) Payment of arrears of premiums

D) Approval from the insurer

E) Adjustment of policy benefits

Q 8. Under the Instalment Revival Scheme, how are the arrears of premiums paid?

A) In a lump sum

B) Half-yearly

C) Quarterly

D) Monthly

E) Spread over remaining due dates and two full policy years

Q 9. When does a policy typically qualify for surrender value?

A) After 1 year of being in force

B) After 2 years of being in force

C) After 3 years of being in force

D) After 5 years of being in force

E) After 10 years of being in force

Q 10. Can there be multiple assignees for an insurance policy?

A) No, only one assignee is allowed

B) Yes, each assignee will have undivided interests

C) Yes, but they must be family members

D) No, only institutions can be assignees

E) No, multiple assignees are not permitted

Q 11. Can the policyholder appoint a nominee if the policyholder and the insured person are different?

A) Yes, the policyholder can appoint nominee(s)

B) No, nomination is not allowed in such cases

C) Yes, but only with the consent of the insured person

D) No, only the insured person can appoint a nominee

E) Yes, but the nominee can only receive a partial benefit

Q 12. What is the surrender value of a life insurance policy?

A) The premium paid by the policyholder

B) The guaranteed amount paid by the insurance company

C) The amount payable to the policyholder upon surrender

D) The remaining sum assured after deducting premiums

E) The cash value of the policy upon maturity

Q 13. What is the period between the loan approval date and the anniversary date of the policy known as?

A) Loan duration

B) Surrender period

C) Broken period

D) Policy term

E) Loan interval

Q 14. Under what conditions can a foreclosed policy be reinstated?

A) The outstanding loan interest is paid in full

B) The policyholder is medically fit

C) The balance surrender value has not been paid to the policyholder

D) Both A) and B)

E) All of the above

Q 15. When does a maturity claim arise in a life insurance policy?

A) When the insured survives until the end of the policy term

B) When the insured dies during the policy term

C) When the insured requests an early payout

D) When the insured cancels the policy before maturity

E) When the insured reaches a certain age during the policy term

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