IC02 - LICENTIATE - Practice of Life Insurance 41

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Q 1. In insurance parlance, the Risk of Suffering a disability can be ideally described as what type of risk?

a) Arbitrage

b) Financial

c) Fundamental

d) Speculative

Q 2. If Mrs. Shanna is 22 years 5 months 29 days then her age nearer birthday is________________.

a) 21 years

b) 22 years

c) 23 years

d) 22 years 6 months

Q 3. What are the claims known as which arise within two years of the date of commencement or reinstatement of the policy?

a) Fast Claims

b) Early Claims

c) Special Claims

d) Free Claims

Q 4. In Assignment, if the policy is assigned to a minor then ________ has to be appointed

a) An appointee

b) An assignor

c) A Guardian

d) A Legal Heir

Q 5. The term used to refer to an Increase in Net or Pure Premium for different reasons

a) Bonus

b) Loadings

c) Office Premium

d) Risk Premium

Q 6. A special revival scheme is available if the policy has not lapsed for more than_____________Years

a) 1

b) 2

c) 3

d) 4

Q 7. Who bears the cost of issuing a duplicate policy?

a) Insurer

b) Policy Holder

c) Insurance Agent

d) Insured

Q 8. Which type of insurance is mortgage insurance?

a) Unit Linked

b) Whole life

c) Increasing term

d) Decreasing term

Q 9. The Married Women's Property Act 1874 is protected under section_____________of the Insurance Act 1938.

a) 38

b) 39

c) 21

d) 9

Q 10. If the life insurance policy is endorsed under the MWP Act, of 1874 then which of the following is TRUE?

a) Creditors have first claim over policy proceeds

b) Creditors have no claim over policy proceeds

c) Creditors have residual claim over policy proceeds

d) Income tax authorities have a claim over policy proceeds

Q 11.
If the mortality rate changes, ______will be affected.

Hedging options 

Expenses of YP management 

Net earned income

 Net incurred claims

Q 12. To avoid the forfeiture clause, premiums for at least how many years are required to be paid by the policyholder?

a) One year

b) Two years.

c) Three years.

d) Four years.

Q 13. Which of these statements is/are TRUE?

a) An event cannot be insured if it is certain to happen

b) When there is a possibility of an economic loss, that time insurance is relevant

c) Insurance compensates for indifferent lifestyles

d) Both 1 and 2 are TRUE

Q 14. In claim settlement cases, in how many months should the investigations be completed?

a) 1 month

b) 3 months

c) 6 months

d) 9 months

Q 15. Risk of death is ______ as age _________.

a) Higher, decreases

b) Lower, increases

c) Lower, decreases

d) Higher, increases

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