IC02 - LICENTIATE - Practice of Life Insurance 09
IC02 - LICENTIATE - Practice of Life Insurance 09
Q 1. When does the risk commence in a child insurance plan?
A) On the deferment date
B) On the vesting date
C) On the child's 18th birthday
D) On the parent's death
E) After a medical examination
Q 2. Which insurance plan offers periodical returns in the form of survival benefits?
A) A Whole Life Insurance Plan
B) Endowment Insurance Plan
C) Anticipated Endowment Insurance Plan (Money Back Plan)
D) Convertible Insurance Plan
E) Joint Life Endowment Insurance Plan
Q 3. What does the increased death benefit rider provide?
A) Increased death cover as the insured's liabilities increase
B) Protection against major illnesses and diseases
C) Financial support in the event of medical emergencies requiring surgery
D) Lump sum or installment payment upon diagnosis of a critical illness
E) Enhanced scope of protection offered by the policy
Q 4. What was the target audience for industrial life insurance?
A) Low-wage industrial workers
B) Corporate customers
C) High-income individuals
D) Insurance agents
E) Insurance companies
Q 5. What privileges does the MWP Act provide to the dependents?
A) Tax benefits on the policy premiums
B) Enhanced coverage amount in case of a claim dispute
C) Premium discounts for multiple beneficiaries
D) Investment options for the policy proceeds
E) Priority in policy issuance for dependents
Q 6. Which type of insurance plan can be bought under keyman insurance?
A) Whole life insurance
B) Term plan insurance
C) Endowment plan insurance
D) Unit-linked insurance plan
E) Money-back insurance plan
Q 7. What expenses are covered under the post-hospitalization benefit provided by insurance companies?
A) Follow-up tests and medical consultations
B) Dental treatments
C) Cosmetic surgeries
D) Alternative medicine treatments
E) Daycare expenses
Q 8. What is the purpose of the investment plan for Sharad Sharma?
A) Accumulating wealth for his children
B) Funding his healthcare expenses
C) Maintaining a comfortable lifestyle after retirement
D) Maximizing short-term returns
E) Starting a business venture
Q 9. What determines the premium amount for an annuity?
A) Current income and expected retirement income
B) Age and gender of the annuitant
C) Market conditions and interest rates
D) Investment returns and risk tolerance
E) Health conditions and life expectancy
Q 10. What is the main difference between a life annuity and an annuity certain and life thereafter?
A) A life annuity provides a fixed annuity payment for a fixed term, while an annuity certain and life thereafter provides an annuity for life.
B) Life annuity pays the accumulated fund to the beneficiaries, while annuity is certain and life thereafter returns the remaining amount to the annuitant.
C) Life annuity payment ceases on the annuitant's death, while annuity is certain and life thereafter continues annuity payment to the beneficiaries.
D) Life annuity is paid as a lump sum amount, while annuity is certain and life thereafter offers regular annuity payments.
E) Life annuity requires a medical check-up, while annuity certain and life thereafter does not.
Q 11. What does annuitise mean?
A) Making regular payments after retirement
B) Investing in physical assets
C) Withdrawing a portion of the accumulated fund as a lump sum
D) Instructing the insurance company to start periodic annuity payments
E) Diversifying the investment portfolio
Q 12. What is the advantage of group insurance schemes in terms of administrative costs?
A) Low administrative costs
B) High administrative costs
C) Administrative costs determined by individual choice
D) Administrative costs borne by the insurance company
E) None of the above
Q 13. How are individual members evaluated for risk factors in group insurance?
A) Individual assessment of risk factors
B) Underwriting based on the group as a whole
C) Medical check-ups for each member
D) Minimum eligibility criteria for joining the group
E) None of the above
Q 14. What age limit may be specified for group insurance in some companies?
A) Less than 60 years
B) More than 60 years
C) Less than 55 years
D) More than 55 years
E) None of the above
Q 15. How is the sum assured determined in a group term insurance scheme?
A) Based on the member's annual salary
B) Based on the member's designation or grade
C) Based on the member's tenure in the organization
D) All of the above
E) None of the above