IC02 - LICENTIATE - Practice of Life Insurance 44

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Q 1. Mr. Suresh invests Rs 20 lakhs in corporate bonds. In which way will he get the returns?

a) Dividends

b) Holidays in the company's resorts

c) Annuity

d) Interest

Q 2. A term assurance plan having an unspecified tenure is known as _________.

a) Survival benefit policy

b) Life insurance policy

c) Whole life insurance policy

d) Pure endowment policy

Q 3. Find out which of the given statements is incorrect

a) Accounts department has to monitor cash flow from subordinate offices

b) The underwriting department has to assess risk and determine premium

c) The marketing department has to monitor the performance of agents

d) The actuarial department is responsible for settling death claims

Q 4.
After selling the policy, an insurance company found out that one of the policyholders had not furnished the correct information related to his poor health condition at the time of taking the policy. This is a case of

a) Adverse selection

b) Loading

c) Level Premium

d) None of the above

Q 5. Which of the following statements is True?

a) In case of an early death claim Insurer generally carries out an investigation

b) 5% over tabular premium is charged for the ordinary monthly mode policy

c) In Absolute assignment the assignor loses all Rights, Title, and Interest in the policy

d) All of the above

Q 6. The individual has to instruct the insurance company to start the annuity income. This process is known as __________.

a) Commutation

b) Deferment

c) Annuitising

d) Vesting

Q 7.
_____________is not applicable as document to ascertain one#39;s identity in accordance with the KYC process.

a) Identity proof

b) Address proof

c) Educational document proof

d) Age and date of birth proof

Q 8. In ULIP, _______ is the additional amount that can be invested by an individual over and above the regular premium in funds of his choice.

a) Top Up

b) Rider

c) Bonus

d) Special Premium

Q 9. If the insurance company follows the actual age method for determining the age of an individual, then in this case the company will the______________.

a) Age last birthday

b) Age next birthday

c) Age nearest birthday

d) Age on the day of commencement of policy

Q 10. A favorably performing market can contribute to increase ____________.

a) Net incurred claims

b) Investment income

c) Expenses of management

d) Net earned premiums

Q 11. Operative Clause and Proviso belong to which part of the policy document?

a) Policy Schedule

b) Policy Preamble

c) Attestation

d) Conditions and Privileges

Q 12. __________ employs selected doctors and hospitals in exchange for a fixed premium.

a) Larceny

b) Health maintenance organization

c) Fidelity bond

d) Preferred provider organization

Q 13. Q13) As per the Evidence Act, after how many years will a missing person be presumed dead?

a) 1 year

b) 3 years

c) 5 years

d) 7 years

Q 14. Which of the following is not the possible payment option for paying premiums of an insurance policy?

a) One-time yearly installment

b) Equated quarterly installment

c) Equated half-yearly installment

d) Disproportionate flexible installment

Q 15. Which of the following statements is True? Statement 1: the duration of cover for strikes riots and civil commotion applies during the entire voyage on a warehouse basis. Statement 2: The duration of cover for strikes, riots, and civil commotion applies

a) Statement 1 is True

b) Is true

c) Both are true

d) Both are false

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