IC02 - LICENTIATE - Practice of Life Insurance 25
IC02 - LICENTIATE - Practice of Life Insurance 25
Click Here For More Exam Material
Q 1. In the context of policy formats, what advantage does using computers bring?
A) Reduced severity of the contract
B) Increased availability of riders
C) Elimination of separate inventory of policy formats
D) Strict adherence to premium payment deadlines
E) None of the above
Q 2. What type of alterations may require the issuance of a new policy?
A) Changes to the premium payment frequency
B) Splitting a policy into multiple policies
C) Corrections of mistakes in the policy
D) Alterations to the sum assured
E) None of the above
Q 3. What should a policyholder do if the original policy document is stolen?
A) File a first information report (FIR) with the police
B) Advertise in the local newspaper
C) Obtain a final investigation report from the police
D) Pay the costs associated with issuing a duplicate policy
E) None of the above
Q 4. Which profession is more likely to be charged a higher insurance premium?
A) IT industry
B) Farming
C) Teaching
D) Construction
E) Retail sales
Q 5. Why is age admission important in life insurance contracts?
A) It determines the policy term
B) It affects the premium amount
C) It determines the coverage amount
D) It determines the claim settlement
E) It affects the policy cancellation process
Q 6. How can proving the correct age at the commencement of the policy help avoid certain situations?
A) It ensures higher premium payments
B) It allows for age understatement
C) It prevents policy cancellation
D) It helps calculate the surrender value
E) It avoids misstatement of age
Q 7. What additional charge is applied for the monthly 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
Q 8. How can premiums be paid in modern times?
A) Only through credit cards
B) Only through internet banking
C) Only through phone-banking
D) Only in cash at the specified office
E) Electronically through various methods and authorized collecting agents
Q 9. How is the premium payment adjusted when received by cheque through employer demand draft or banker's cheque?
A) The premium is refunded
B) The premium is considered unpaid
C) The receipt is issued immediately
D) The premium is adjusted subject to clearance
E) The premium is doubled
Q 10. What is the purpose of non-forfeiture options in insurance policies?
A) To maintain a separate account for each policyholder
B) To maximize the insurer's profits
C) To prevent the surrender of policies
D) To calculate the interest earned on the life fund
E) To provide additional coverage for policyholders
Q 11. What does the non-forfeiture option of reduced paid-up value mean?
A) The policyholder receives a refund of a portion of the paid premiums
B) The policy continues with reduced coverage and reduced premiums
C) The policy is converted into a term insurance policy
D) The policyholder receives an advance payment of future premiums
E) The policy is canceled and no benefits are paid
Q 12. What is the disadvantage of the option of automatic advance of future premiums?
A) Premiums are waived
B) Increase in surrender value
C) Risk cover for a longer period
D) Policy closure without any reduction in benefits
E) Exhaustion of surrender value
Q 13. What is typically required for a policy revival?
A) Payment of arrears of premiums with interest
B) Approval from the insurer
C) Medical examinations) Approval from the insurer C) Medical examination D) Purchase of a new policy E) Adjustment of policy benefits
D) Purchase of a new policy
E) Adjustment of policy benefits
Q 14. What changes are made to the policy upon revival under the Special Revival Scheme?
A) Changes in the date of commencement, age, term, installment premium, date of last installment of premium, and maturity date
B) Cancellation of the policy
C) Addition of new policy benefits
D) Conversion to a different policy type
E) None of the above
Q 15. If arrears of premiums exceed a certain duration, what additional requirements may be necessary for PLI revival?
A) Higher premium payment
B) Increase in sum assured
C) References to higher offices
D) Policy surrender
E) Change in policy term