IC02 - LICENTIATE - Practice of Life Insurance 11
IC02 - LICENTIATE - Practice of Life Insurance 11
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Q 1. How does the duration of a policy affect the surrender value?
A) Longer-duration policies have higher surrender values
B) Shorter-duration policies have higher surrender values
C) The duration of the policy does not affect the surrender value
D) Surrender value is determined solely based on the premium amount
E) Surrender value is determined solely based on the policyholder's age
Q 2. When does a paid-up policy pay the reduced SA?
A) On maturity or death
B) On policy anniversary dates
C) On policy surrender
D) On policy revival
E) On policy conversion
Q 3. Do insurers in India generally allow the option of Extended Term Insurance coverage?
A) Yes, it is commonly available
B) No, it is not allowed
C) It depends on the insurance company
D) It depends on the policyholder's request
E) It is available with certain conditions
Q 4. Why might it be more beneficial for a policyholder to surrender a policy instead of accumulating interest on the advanced premiums from the surrender value?
A) To avoid proof of continued insurability
B) To reduce administrative costs for the insurer
C) To obtain a higher surrender value
D) To simplify the revival process
E) To secure better policy benefits
Q 5. What functions are involved in the Loan-Cum-Revival Scheme?
A) Revival of the policy only
B) Granting a loan only
C) Policy surrender
D) Granting a loan and revival of the policy simultaneously
E) None of the above
Q 6. How are premiums typically paid in life insurance?
A) Monthly only
B) Quarterly only
C) Half-yearly only
D) Yearly only
E) Any of the above options
Q 7. In a home loan scenario, who is the assignor and who is the assignee?
A) Assignor: Bank, Assignee: Policyholder
B) Assignor: Policyholder, Assignee: Bank
C) Assignor: Insurance company, Assignee: Bank
D) Assignor: Bank, Assignee: Insurance company
E) Assignor: Policyholder, Assignee: Insurance company
Q 8. Does the assignment of a policy cancel the nomination?
A) Yes, the assignment automatically cancels the nomination
B) No, the nomination remains valid even after the assignment
C) Yes, but only if the assignment is made in favor of the insurance company
D) No, assignment and nomination are separate processes
E) Yes, but the nominee must give consent to the assignment
Q 9. How does the surrender value factor vary with the policy term?
A) It increases as the duration of the policy increases
B) It decreases as the duration of the policy increases
C) It remains constant throughout the policy term
D) It depends on the premium amount
E) It is determined by the surrender date
Q 10. Are money-back policies eligible for loans against insurance policies?
A) Yes, they can be used as collateral for loans
B) No, they do not acquire sufficient surrender value
C) Only a portion of the sum assured is eligible for loans
D) They can be used as collateral for loans after the policy matures
E) It depends on the premium payment term
Q 11. What is the term used for the process of withdrawing a life insurance policy before maturity by the policyholder?
A) Assignment
B) Reinstatement
C) Nomination
D) Surrender
E) Foreclosure
Q 12. When do claims arise in money-back policies?
A) When the insured requests a lump sum payment
B) When the insured reaches a certain age during the policy term
C) When the insured survives up to a specified period during the term
D) When the insured cancels the policy before maturity
E) When the insured transfers the policy to another person
Q 13. In the case of the policyholder's death after the due date but before settlement of a survival benefit claim, who receives the claim amount?
A) Nominee
B) Absolute assignee
C) Legal heirs
D) Insurer
E) None of the above
Q 14. Within how many days does the insurance company send the cheque for the death claim amount to the person entitled to receive it?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
Q 15. In the case of fraudulent practices involving multiple claims on a single injury in health claims, what action can the insurer take?
A) Repudiate the claims
B) Investigate the claims
C) Deny future coverage
D) Take legal action against the policyholder
E) All of the above