IC02 - LICENTIATE - Practice of Life Insurance 28
IC02 - LICENTIATE - Practice of Life Insurance 28
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Q 1. What options does a policyholder have when their ULIP policy lapses?
A) Revive the policy
B) Continue the policy only for risk cover
C) Withdraw completely from the fund without risk cover
D) All of the above
E) None of the above
Q 2. According to the IRDA guidelines, how should the overall charges in ULIPs be distributed during the lock-in period?
A) The charges should be front-loaded.
B) The charges should be back-loaded.
C) The charges should be evenly distributed.
D) The charges should be waived during the lock-in period.
E) The charges should be deducted from the maturity benefit.
Q 3. What is the term used for the NAV when an existing policyholder redeems units from ULIP?
A) Offer price
B) Bid price
C) Market price
D) Allotment price
E) Redemption price
Q 4. What happens if there are misrepresentations in the proposal for life insurance?
A) The contract becomes null and void.
C) The insurer can cancel the contract at any time.
D) The proposer is entitled to a refund of all premiums paid.
E) The contract remains valid despite the misrepresentations.
Q 5. In what situation does an employer have an insurable interest in their employee?
A) When the employee has a high salary
B) When the employee is a key valuable employee
C) When the employee has a long tenure
D) When the employee is the sole breadwinner
E) When the employee is related to the employer
Q 6. How does a prospectus issued by a life insurance company differ from that of a public company?
A) It focuses on the setup of the company and the insurance plans offered
B) It provides general terms and conditions
C) It is simpler and does not provide sufficient details for decision-making
D) It includes information on participating and non-participating policies
E) All of the above
Q 7. In what situation would someone familiar with the language be required to declare their explanation of the proposal contents to the proposer?
A) When the proposal is completed in a language not familiar to the proposer
B) When the proposer is illiterate and can only provide a thumb impression
C) When the proposer is a senior official
D) When the proposer is of advanced age
E) When the proposer is requesting a large insurance amount
Q 8. What is the basis for assessing the risk in non-medical insurance?
A) Statements in the proposal and personal history forms
B) Medical examination results
C) Age and gender of the person to be insured
D) Financial position of the proposer
E) Premium payment history
Q 9. What happens if standard proof of age is not available for a life insurance policy?
A) Alternate proofs of age may be accepted subject to company norms
B) Non-standard age-proof may require an extra premium
C) Terms of the policy may be restricted
D) All of the above
E) None of the above
Q 10. What is the time frame within which the proposer must be advised of the underwriter's decision?
A) 10 days
B) 15 days
C) 30 days
D) 45 days
E) 60 days
Q 11. What do medical examiners observe and report in the underwriting process?
A) Physical impairments such as deformities, blindness, deafness, etc.
B) Educational background and qualifications
C) Occupation and job hazards
D) Family medical history
E) None of the above
Q 12. How do insurers review underwriting standards?
A) Through collaboration with academicians
B) Through regular data exchange among insurers
C) Through actuarial calculations
D) Through medical examinations
E) None of the above
Q 13. What information does the policy document contain?
A) Subject matter and terms and conditions of the insurance
B) Premium payment schedule and investment options
C) Personal financial statements of the insured
D) List of covered illnesses and diseases
E) None of the above
Q 14. When are changes to the terms and conditions of a policy document clarified?
A) During the underwriting process
B) After the policy document is issued
C) At the time of proposal submission
D) Upon payment of the first premium
E) None of the above
Q 15. What happens if the policyholder fails to pay the premium by the due date or provides untrue information on the proposal?
A) The policy becomes null and void
B) The policy remains valid, but benefits are reduced
C) The policyholder is granted additional privileges
D) The policy is converted into a supplementary benefits policy
E) None of the above