IC02 - LICENTIATE - Practice of Life Insurance 47

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Q 1. If the life insurance policy has a 'dividend option' it gives the policyholder the right to do all the following except________________.

a) Purchase additional paid-up insurance

b) Purchase stock in the company at lower rates than market price

c) Use the surplus amount to pay premiums of other policies

d) Apply dividends towards premium payments

Q 2. Rita is not able to pay her monthly Insurance Premium which is due on 20 March 2008. She can pay only on 15 April 2008. She calls her Insurance Agent and asks what will happen. The Insurance agent says that Rita has a Grace period of 30 days and her

a) Agent has said this correctly.

b) Agent is correct but Rita has to pay a penalty

c) Agent is wrong since the Grace Period is only 15 days in the case of Monthly Mode policies.

d) Agent is wrong since there is no Grace Period for Monthly Mode Policies

Q 3. The date from which the annuitant starts receiving regular income is known as ________.

a) Immediate date

b) Income date

c) Commuted date

d) Vesting date

Q 4. If you have a conversion option in a term insurance policy, it can be converted into______________.

a) Whole life insurance

b) ELSS Plan

c) Limited term insurance

d) Mortgage life insurance

Q 5. Which of the following is a disadvantage of investing in Annuity?

a) Regular Payment after retirement

b) Money gets blocked till retirement

c) Provides financial independence

d) An option for diversifying the portfolio

Q 6. ____________means instructing the insurance company to start the periodic payments.

a) Vesting

b) Annuitize

c) Commutation

d) Deferment

Q 7. A life insurance company rejects a proposal of life insurance and informs the proposer with a copy to the agent. What will be the next action of the agent? A) The agent shall inform the proposer that the insurer has broken the relationship with the pro

a) Both statements A and B are correct

b) Only statement D is INCORRECT

c) Only statement C is correct

d) Both statements B and D are correct

Q 8. In reality, most people who opt for insurance are proportionately healthy. However, the mortality tables published by Govt. of India show probabilities of healthy people dying within a species. Ed period. What is this mismatch called?

a) Wrong probability

b) Calculated mismatch

c) Inverse selection

d) Adverse selection

Q 9. Which of the following statements is True?

a) Assignment does not cancel the nomination

b) Policy can be revived anytime during the Lifetime of the Life Assured

c) Alterations that reduce the premium are generally not allowed

d) All of the above

Q 10. What are the two primary needs of an insurance customer?

a) Growth and Savings

b) Retirement and Protection

c) Investment and Retirement

d) Investment and Protection

Q 11. Q13) A person is paying health insurance premiums for his family which consists of himself, his wife, and two children aged 6 and 10 years. Premiums for which of these individuals will qualify as deductions from the year's taxable income?

a) His own only

b) His own and wife only

c) His own, his wife and his elder child

d) All family members

Q 12. In________________scheme the pension that an employee will receive after retirement is known beforehand.

a) De? Ned contribution scheme

b) De? Ned bene?t scheme

c) De? Ned premium scheme

d) De? Ned distribution scheme

Q 13. On the death of the annuitant, 50% of the pension will be paid to the spouse. This option is available under which type of annuity?

a) Fixed Amount Annuity

b) Life Annuity

c) Joint Life last survivor annuity

d) Increasing Annuity

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

a) 3 months

b) 6 months

c) 9 months

d) 12 months

Q 15. In which part of the policy document will you find details about the Premium payable and the mode of premium under the policy?

a) Policy Schedule

b) Policy Preamble

c) Attestation

d) Conditions and Privileges


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