IC02 - LICENTIATE - Practice of Life Insurance 18
IC02 - LICENTIATE - Practice of Life Insurance 18
Q 1. What happens if the correct age of the insured is found to be higher than the age declared in the proposal?
A) The premium is increased retrospectively
B) The policy coverage is reduced
C) The policy remains unchanged
D) The premium is refunded with interest
E) The policy is converted to a different plan
Q 2. What are "Sum Assured rebates" in premium rates?
A) Discounts offered for early premium payments
B) Additional charges for policies with higher sums assured
C) Adjustments based on overhead costs
D) Special rates for policies of lower premium amounts
E) Incentives for policyholders with a good claims history
Q 3. Where must premiums be paid according to the policy conditions?
A) Any branch of the insurer
B) Any bank
C) Any authorized collecting agent
D) Only in the specified office of the insurer
E) Through electronic payment methods
Q 4. In the Salary Saving Scheme (SSS) policies, when are premiums deducted from the employee's salary?
A) At the beginning of the month
B) On the salary date
C) On the due date
D) On the last date of the month
E) On the last working day of the month
Q 5. What determines the share of each policyholder in the life fund?
A) The premium payment history of the policyholder
B) The policyholder's age and health condition
C) The notional credits based on actuarial principles
D) The interest earned on the life fund investments
E) The contributions of other policyholders
Q 6. What is the purpose of calculating the paid-up value about the surrender value?
A) Paid-up value is needed to determine the surrender value
B) Paid-up value is deducted from the surrender value
C) Paid-up value is added to the surrender value
D) Paid-up value is used to determine the premium amount
E) Paid-up value is unrelated to the surrender value
Q 7. What happens when the surrender value is not sufficient to advance the premium falling due?
A) The policy continues without any reduction in benefits
B) The policy is closed and the surrender value is paid to the policyholder
C) The premium is waived
D) The policyholder receives additional benefits
E) The surrender value increases
Q 8. What is adverse selection in the context of policy lapses?
A) Selection against the insurer
B) Selection in favor of the insurer
C) Selection based on age
D) Selection based on premiums
E) Selection based on health condition
Q 9. In the Special Revival Scheme, under what conditions may a revival be allowed?
A) Unable to pay all arrears of premium with interest
B) Satisfactory evidence of good health
C) Submission of medical records
D) Request for policy changes
E) None of the above
Q 10. What is the interest rate charged on arrears of premiums for PLI revival?
A) 6%
B) 8%
C) 10%
D) 12%
E) 14%
Q 11. Which types of insurance plans are generally eligible for assignment?
A) All types of insurance plans
B) Only pension plans
C) Only plans under the Married Women's Property Act
D) Only life insurance plans
E) None of the above
Q 12. Can a policyholder appoint more than one nominee?
A) No, only one nominee is allowed
B) Yes, but they must be family members
C) Yes, the policyholder can appoint multiple nominees
D) No, multiple nominees are not permitted
E) Yes, but they must be minor children
Q 13. Who can make a nomination or assignment?
A) Only the policyholder
B) Only the life assured
C) Both the policyholder and the life-assured
D) Only the nominee
E) Only the assignee
Q 14. What is one of the benefits of purchasing an insurance policy?
A) Availability of loans against the policy
B) Higher surrender value
C) No need to pay premiums
D) Automatic nomination cancellation
E) Guaranteed returns on investment
Q 15. What is the process of closing an insurance policy before its maturity date?
A) Foreclosure
B) Surrender
C) Termination
D) Cancellation
E) Repudiation
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