IC02 - LICENTIATE - Practice of Life Insurance 08
IC02 - LICENTIATE - Practice of Life Insurance 08
Q 1. Who is considered the claimant if the policy is assigned?
A) The policyholder
B) The legal heir
C) The nominee
D) The assignee
E) None of the above
Q 2. When can a claim be entertained on a lapsed policy?
A) When the policyholder requests for reinstatement
B) When the policy is assigned to a new owner
C) When the death claim arises within six months of the first unpaid premium
D) When the outstanding premiums are paid with interest
E) None of the above
Q 3. What is the premium characteristic of riders compared to the basic premium of the policy?
A) Riders have a higher premium than the basic premium
B) Riders have a lower premium than the basic premium
C) Riders have the same premium as the basic premium
D) Riders have no premium
E) None of the above
Q 4. True or False: The decision to admit or repudiate a claim should be made within 30 days of receipt of all papers.
A) True
B) False
Q 5. Which organization was formed on 1st September 1956, after the nationalization of the life insurance business in India?
A) Life Insurance Corporation of India (LIC)
B) Reserve Bank of India
C) Postal Life Insurance (PLI)
D) Council of Scientific and Industrial Research
E) Indian Companies Insurance (ICI)
Q 6. How does life insurance help in mobilizing savings?
A) By providing a lump sum amount at a later date
B) By offering attractive investment options
C) By reducing premiums for policyholders
D) By minimizing administrative costs
E) By maximizing profits for insurance companies
Q 7. What is the purpose of organizing in an organization?
A) To ensure the smooth functioning of activities
B) To enable the organization to carry out its activities
C) To record and share organizational learning
D) To arrange different levels of offices and departments
E) To create distinct levels of responsibility for supervision
Q 8. In the initial stages of private life insurance companies, what was the typical structure they started with?
A) Head office and branch offices
B) Zonal and regional offices
C) Corporate office and branch offices
D) Regional offices and branch offices
E) Headquarters and regional offices
Q 9. Who acts as an intermediary between the proposer and the insurer in the scenario mentioned?
A) Atul
B) Lalit
C) The insurance company's website
D) Atul's friend
E) The Life Insurance Corporation of India
Q 10. What should an agent do when recommending a suitable plan to a prospect?
A) Make inquiries about the prospect's history
B) Ensure delivery of the policy to the insured
C) Explain the nature and importance of information in the proposal form
D) Inform the insurer about any material fact
E) Impress upon the prospect the need to disclose all material information truthfully
Q 11. What is the term used to describe agents offering concessions to policyholders?
A) Rebating
B) Commission reduction
C) Licensing
D) Concessionaire
E) None of the above
Q 12. What is one of the major functions of an insurance agent?
A) Underwriting policies
B) Processing claims
C) Assessing risk factors
D) Selling life insurance policies
E) Managing investments
Q 13. What factors influence the calculation of the premium amount?
A) The expenses incurred by the insurance company
B) The market value of the insurance company's shares
C) The policyholder's credit score
D) The sum assured and the type of insurance plan chosen
E) The insurance company's advertising budget
Q 14. What are mortality tables used for by insurance companies?
A) Calculating premiums based on investment returns
B) Determining the policyholder's age
C) Assessing the financial risk associated with insurance plans
D) Estimating the probability of policyholder survival
Q 15. In the case of Company XYZ, how many policyholders are there?
A) 500
B) 1,000
C) 5,000
D) 10,000
E) It is not mentioned in the information provided