IC02 - LICENTIATE - Practice of Life Insurance 21
IC02 - LICENTIATE - Practice of Life Insurance 21
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Q 1. What is the purpose of a proposal in a life insurance contract?
A) To provide personal information of the proposer
B) To apply for life insurance coverage
C) To meet the requirements of a valid contract
D) To disclose the details of the insurance plans offered
E) All of the above
Q 2. What is non-medical insurance?
A) Insurance policies that do not require a medical examination
B) Insurance policies offered by government doctors
C) Insurance policies with reduced premiums
D) Insurance policies for high-risk individuals
E) Insurance policies with specialized testing facilities
Q 3. Why is proof of age required at the commencement of a life insurance policy?
A) To determine the amount of premium to be charged
B) To assess the risk of death
C) To verify the accuracy of the age stated on the proposal form
D) To avoid delays in claim settlement
E) All of the above
Q 4. What options may be considered by an underwriter if the person to be insured is assessed as a non-standard risk?
A) Accept for a lesser sum assured than proposed
B) Accept for a shorter term than proposed
C) Accept a different plan than the proposed
D) Charge a higher premium than the standard rate
E) All of the above
Q 5. How have insurers changed their approach towards insuring females compared to the mid-1950s?
A) They treat educated females as well as working females on par with men
B) They still have selective policies for insuring females
C) They charge higher premiums for insuring females
D) They exclude maternity-related coverage for females
E) None of the above
Q 6. Why is it necessary to develop systems for consistent underwriting decisions?
A) To simplify the underwriting process
B) To standardize premium rates
C) To ensure consistent decision-making across different underwriters
D) To minimize the risk of claims
E) None of the above
Q 7. What is the purpose of a life insurance policy document?
A) To provide details about premium payment options
B) To outline the terms and conditions of the insurance agreement
C) To disclose personal medical information
D) To advertise the benefits of the insurance policy
E) None of the above
Q 8. Which type of policy condition limits the scope of the assurance?
A) Explanatory conditions
B) Restrictive conditions
C) Privileges
D) Supplementary benefits
E) None of the above
Q 9. How are benefits covered by riders typically mentioned in a policy document?
A) As separate policy conditions
B) As annexures or addenda
C) As endorsements
D) As privileged conditions
E) None of the above
Q 10. What is adverse selection in the context of a request for alteration to a life insurance policy?
A) The change in premium payment frequency
B) The alteration increases the risk for the insurer
C) The change in policyholder's personal information
D) The alteration involving a change in the policy term
E) None of the above
Q 11. What is the purpose of advertising in the local newspaper or providing an indemnity bond?
A) To notify the public about the loss of the policy document
B) To deter policyholders from requesting duplicate policies
C) To compensate the insurer for the cost of issuing a duplicate policy
D) To confirm the authenticity of the reported loss
E) None of the above
Q 12. Why do insurance companies charge different premiums for males and females?
A) Based on fashion preferences
B) Based on favorite sports
C) Based on exposure to risks and longevity
D) Based on musical preferences
E) Based on travel preferences
Q 13. How does the insurer determine the premium for individuals engaged in hazardous hobbies?
A) By charging a lower premium
B) By excluding coverage for accidents related to hobbies
C) By considering hobbies as a standard factor
D) By offering discounts for hazardous hobbies
E) By calculating an appropriate extra premium
Q 14. What happens if the age proved at a later date is lower than what was mentioned in the proposal form?
A) The premium is reduced retrospectively
B) The policy remains unchanged
C) The policy is canceled
D) The premium is refunded without interest
E) The policy coverage is increased
Q 15. What reduction in tabular premium is allowed for the yearly mode of payment?
A) 3%
B) 1.5%
C) 5%
D) Re. 1.00 per 1000 sum assured
E) Rs. 2 per 1000 sum assured