IC02 - LICENTIATE - Practice Of Life Insurance 38

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Q 1. Insurance is a mechanism to reduce the impact of adverse events on __________.

a) Value-generating assets

b) Nonvalue-generating assets

c) Risks

d) Fixed assets

Q 2. What kind of payment mode involves less administrative work?

a) Monthly mode

b) Yearly mode

c) Half Yearly mode

d) Quarterly mode

Q 3.
Under Married Woman#39;s Property Act 1874, a Life Insurance Policy can taken out by

a) Married Men

b) Married Women

c) Both A and B

d) Divorced Women

Q 4.
Which of the following terms is dissimilar to the other four in the context of insurable interest in life insurance?

a) Employer

b) Creditor

c) Surety

d) Debtor

Q 5. Which of the foil statement(s) is/are correct? 1. Underwriting is a process that ensures that all insureds share the same risk 2. The amount of bonus that vests is the same for all policies issued by an insurer 3. In an immediate annuity policy th

a) All statements are correct

b) All statements are incorrect

c) Statements 1 and 2 are correct

d) Statements 2 and 3 are correct

Q 6. The opening statement of the paragraph of an insurance policy clarifies? es the______________placed on it, therefore it is also called_____________.

a) Terms, Contract

b) Proviso, Declaration

c) Clauses, Agreement

d) Sum assured, Proviso

Q 7. Which of the following statements is False concerning policies under the MWP Act?

a) Insurance under the MWP Act is free from court attachments

b) The policy cannot be amended or surrendered

c) The policy must be on his own life

d) Nomination and assignment are allowed

Q 8. Interest at____________above the savings bank interest rate will be payable by the insurer for delays in settling claims.

a) 1 %

b) 2 %

c) 2.5 %

d) 3 %

Q 9. The mechanism of insurance is to_____________.

a) reduce the impact of adverse events on liquid assets

b) reduce the impact of adverse events on fixed assets

c) reduce the impact of adverse events on current assets

d) reduce the impact of adverse events on value-generating assets

Q 10. If the investment gives a lower return than expected then there can be a deficit and the burden of that will have to be borne by the

a) Employer

b) Insurance Company

c) The Government

d) None of the above

Q 11.
Rajan took life insurance for his 2-year-old son. Rajan and his wife died in an accident. He has taken a Waiver of Premium Rider. What will the insurers do?

a) The policy will be closed with immediate effect

b) The guardians will receive the sum assured

c) The guardians will be asked to pay the premiums

d) The insurers will continue with the policy and pay the premium

Q 12. Mr. Jayant takes a life policy of tenure of 30 years but stops paying the premium after the 16th year. In such a case the insurance cover will be reduced to a lower amount. This re-calculated value of sum assured is based on the concept of ________.

a) Surrender value

b) Paid-up value

c) Vested amount

d) Deferred value

Q 13.
Q13) A policyholder can complain to the insurance regulator IRDA through_______________. a) Telegram b) Newspaper c) Toll-Free Number d) E-mail

a) Only option (a)

b) Only option (c) and (d)

c) Only option (b) and (d)

c) Only option (a) and (d)

Q 14.
Mr. Shirish had purchased a life insurance policy and in a few days, he felt he was not satisfied with the policy bene? Ts. What option is available to him?

a) No option but to accept the policy as the documents have already been signed

b) He can? le a complaint with the insurance agent

c) He can? le a complaint with the insurance ombudsman

d) He can send the policy back to the insurer within 15 days of receiving the policy document

Q 15. In the case of LIC, to continue holding the agency for the next year, what is the minimum number of lives that the agent should insure?

a) Ten lives anytime throughout the year

b) Twelve lives anytime throughout the year

c) Twenty-four lives anytime throughout the year

d) Compulsorily one life every month

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