IC02 - LICENTIATE - Practice of Life Insurance 27
IC02 - LICENTIATE - Practice of Life Insurance 27
Q 1. What is the vesting date in Jagat's child insurance plan?
A) On his 2nd birthday
B) On his 7th birthday
C) On his 18th birthday
D) On the policy anniversary after his 7th birthday
E) On the policy anniversary after his 18th birthday
Q 2. What does Net Asset Value (NAV) refer to in a ULIP?
A) The value of each unit of the fund on a certain day
B) The premium allocated for investment in the ULIP
C) The mortality charges deducted from the premium
D) The policy administration charges levied by the insurance company
E) The surrender charges applicable for terminating the ULIP
Q 3. What does the Disability Income Benefit rider provide?
A) Risk coverage for disability or death due to an accident
B) Waiver of premium payment during disability
C) Increase in insurance coverage at regular intervals
D) Additional benefit over the base policy cover amount
E) Monthly income benefit in case of disability
Q 4. Why is industrial life insurance not as popular nowadays?
A) High mortality rate among low-income workers
B) Inadequate coverage for policyholders
C) Limited availability in rural areas
D) Complexity of the premium collection process
E) Lack of insurance agents
Q 5. Can a trust be formed as a "class" under the MWP Act?
A) Yes, for the wife and children
B) No, only individuals can be named beneficiaries
C) Yes, for any relative of the insured
D) No, trusts are not allowed under the MWP Act
E) Yes, for the surviving beneficiaries
Q 6. What type of group is covered under a group health insurance policy?
A) Family members of the policyholder
B) Employees of a specific company or organization
C) Individuals with pre-existing medical conditions
D) Members of a professional association
E) Individuals with high-risk occupations
Q 7. What are the triple benefits provided by ULIPs?
A) Death cover, survival benefit, and returns
B) Returns, tax benefits, and low-cost insurance
C) Death cover, survival benefits, and low-cost insurance
D) Returns, tax benefits, and insurance cover for the entire lifetime
E) Death cover, survival benefit, and insurance cover for the entire lifetime
Q 8. What is the deferment period in an annuity contract?
A) The period after retirement when annuity payments begin
B) The period during which premiums are paid
C) The period between the purchase of the annuity and the start of annuity payments
D) The period during which the annuity is in force
E) The period when the annuitant receives a lump sum payment
Q 9. Who typically prefers a multiple premium annuity?
A) Young individuals
B) Retirees
C) Individuals with fluctuating income
D) Individuals with high-risk tolerance
E) Self-employed individuals
Q 10. What is the key difference between an immediate annuity and a deferred annuity?
A) Immediate annuity requires a lump sum payment, while deferred annuity allows payment in installments.
B) Immediate annuity pays annuity immediately after the contract is bought, while deferred annuity has a specified deferment period.
C) Immediate annuity guarantees the annuity amount, while deferred annuity offers variable returns.
D) Immediate annuity is for a fixed term, while deferred annuity is for life.
E) Immediate annuity pays the accumulated fund to the beneficiaries, while deferred annuity returns the premiums upon death during the deferment period.
Q 11. How can insurance companies help companies like Makheja Group in managing retirement benefits schemes?
A) By providing actuarial expertise
B) By offering investment solutions
C) By managing liabilities and payments
D) All of the above
E) None of the above
Q 12. What is the purpose of group insurance for creditor-debtor groups?
A) To protect the interests of professionals
B) To provide mutual benefits to cooperative societies
C) To cover loan dues and safeguard loans advanced
D) To provide insurance coverage to weaker sections of society
E) None of the above
Q 13. What is the purpose of the medical check-up requirement before joining an organization?
A) To assess the employee's overall health condition
B) To determine the amount of coverage needed for insurance
C) To prevent employees with medical conditions from joining the organization
D) To verify the authenticity of the employee's medical records
E) None of the above
Q 14. What is the purpose of a free cover limit in group insurance?
A) To reduce administrative costs for the insurer
B) To eliminate the need for medical check-ups entirely
C) To ensure that all members receive the same coverage amount
D) To provide coverage to individuals with pre-existing medical conditions
E) None of the above
Q 15. In a contributory scheme, who pays a part of the premium?
A) The employer
B) The employees
C) The insurance company
D) Both the employer and employees
E) None of the above