IC02 - LICENTIATE - Practice of Life Insurance 04
IC02 - LICENTIATE - Practice of Life Insurance 04
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Q 1. Which age determination method is commonly used by most life insurance companies?
A) Age at last birthday
B) Age at next birthday
C) Age at nearest birthday
D) Age at policy inception
E) Age at maturity date
Q 2. How is the fact of assignment recorded by the insurer?
A) Through an endorsement of the policy document
B) Through a separate assignment deed
C) It is not recorded by the insurer
D) By notifying the assignee's legal heirs
E) By updating the insurer's website
Q 3. What happens to the death benefit if one of the nominees dies before the life is assured?
A) The death benefit is distributed equally among the surviving nominees
B) The death benefit is forfeited
C) The death benefit is returned to the insurance company
D) The death benefit is paid to the nominee's legal representatives
E) The death benefit is added to the policy's cash value
Q 4. What is the purpose of the surrender feature in an insurance policy?
A) To provide liquidity to the policyholder in case of financial emergencies
B) To discourage policyholders from surrendering their policies
C) To increase the premium amount
D) To lower the surrender value
E) To attract more policyholders
Q 5. Which type of insurance plans are generally not eligible for loans against insurance policies?
A) Term life insurance
B) Annuities and pension plans
C) Whole life insurance
D) Health insurance
E) Endowment plans
Q 6. What is the process of transferring the right title and interest on assets or property from one person to another called?
A) Assignment
B) Reinstatement
C) Nomination
D) Surrender
E) Foreclosure
Q 7. Which type of life insurance policy does not have a maturity claim payout?
A) Endowment assurance policies
B) Pure term plans
C) Money-back policies
D) Whole life insurance policies
E) Universal life insurance policies
Q 8. What is the alternative option for payment of maturity claims?
A) Settlement option
B) Indemnity bond
C) Absolute assignment
D) Loan subsisting
E) None of the above
Q 9. When is proof of title of the claimant required for a death claim?
A) When the policy has been assigned
B) When there is no valid nomination
C) When the nomination is subsisting
D) When the claimant is the legal representative or successor
E) None of the above
Q 10. What determines whether leave taken on medical grounds is material information in a life insurance claim?
A) Whether it was disclosed on the proposal form
B) The nature of the illness for which leave was taken
C) The terms of acceptance of the policy
D) All of the above
E) None of the above
Q 11. Who is considered the claimant if there is no nomination in a death claim?
A) The policyholder
B) The legal heir
C) The nominee
D) The assignee
E) None of the above
Q 12. What does the term "natural heirs" refer to?
A) Nominee under the policy
B) Legal heirs appointed by the court
C) Relatives mentioned in the insurance policy
D) Heirs based on personal laws and local customs
E) None of the above
Q 13. Which rider provides monetary benefits in case of certain untoward events?
A) Accidental Death Benefit (AD2) rider
B) Permanent Disability Benefit rider
C) Critical Illness rider
D) Term Life rider
E) None of the above
Q 14. What is the post-maturity option in insurance policies?
A) Collecting the maturity benefit amount in a lump sum
B) Extending the policy term after maturity
C) Converting the policy into a different type of insurance
D) Receiving the maturity benefit amount in installments over years
E) None of the above
Q 15. When was the Postal Life Insurance (PLI) scheme introduced for the benefit of postal department employees?
A) 1884
B) 1938
C) 1956
D) 1988
E) 1995