IC02 - LICENTIATE - Practice of Life Insurance 26
IC02 - LICENTIATE - Practice of Life Insurance 26
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Q 1. What is considered an adequate title in case of a valid nomination?
A) Succession certificate
B) Probate of Will
C) Indemnity bond
D) Assignment document
E) None of the above
Q 2. What may the insurer consider in case of presumed death within 7 years?
A) Rejecting the claim
B) Settling the claim based on circumstantial evidence
C) Settling the claim only with a court decree
D) Requiring an indemnity bond from the claimant
E) None of the above
Q 3. True or False: Future premiums are waived under Permanent Disability Benefit.
A) True
B) False
Q 4. What are "early death claims" in insurance?
A) Claims arising within two years of the policy's commencement or revival
B) Claims arising after seven years of the policy's commencement or revival
C) Claims related to missing persons
D) Claims made by policyholders who have multiple insurance policies
E) None of the above
Q 5. Which foreign direct investment (FDI) limit was allowed in the insurance sector for foreign players?
A) 26%
B) 49%
C) 74%
D) 100%
E) No FDI limit
Q 6. Which essential activity of a life insurance company involves attending to various requirements such as nominations, assignments, surrenders, and payment of claims?
A) Attending to various policy requirements
B) Obtaining applications or proposals
C) Issuing the insurance policy document
D) Assessing the risk through underwriting
E) Analyzing the economic status of the insured
Q 7. Which department is responsible for developing the agency force, market development, and business growth?
A) Business development or Agency or Marketing
B) New business
C) Policyholders' servicing
D) Accounts
E) Actuarial
Q 8. Under the Insurance Act, who needs to be licensed by the IRDA to work as an insurance agent?
A) Lawyers
B) Ambassadors
C) Telemarketers
D) Insurance brokers
E) Individuals or corporate bodies acting as salesmen or intermediaries
Q 9. Who needs to obtain licenses like individual agents in companies, firms, banks, cooperative societies, etc.?
A) Development Officers
B) Direct Agents
C) Career Agents
D) Corporate Insurance Executives
E) Agency Supervisors
Q 10. When may bonus commission be payable to agents?
A) Every year
B) Only on the first-year premium
C) Only for a fixed number of years
D) Based on the agent's performance
E) None of the above
Q 11. What is the term used to describe the distribution of insurance through banks?
A) Bancassurance
B) Brokering
C) Direct mailing
D) Corporate agents
E) None of the above
Q 12. Has inflation resulted in a change in the plan's premium in 8 years?
A) Yes, inflation directly affects insurance premiums.
B) No, inflation has no impact on insurance premiums.
C) Yes, but the impact of inflation on premiums is negligible.
D) No, inflation only affects the cost of living.
E) Yes, but the premium change is also based on other factors.
Q 13. How is the age of the policyholder calculated for premium calculation purposes?
A) Only the number of years completed is considered.
B) Both the number of years and months are considered.
C) Both the number of years and days are considered.
D) Only the number of months completed is considered.
E) Only the number of days completed is considered.
Q 14. What is the term used to describe the excess amount in the life fund of an insurance company?
A) Valuation surplus
B) Actuarial surplus
C) Premium fund
D) Liability reserve
E) Investment surplus
Q 15. What are loadings in insurance premiums?
A) Extra charges added by insurance companies
B) Investments made by policyholders
C) The part of the premium invested in funds and securities
D) The portion of premium kept aside for survival benefits
E) The amount used to cover the expenses of the insurance company