IC02 - LICENTIATE - Practice of Life Insurance 51

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Q 1. In cases where a Life Insurance Agent collects the premium from the policyholder and remits it to the insurer's office, he is acting as an agent of __________:

a) IRDA

b) the Insurance Company

c) The policyholder

d) The insurance broker

Q 2. To Whom is the insurance policy assigned as Financial Security when loans are taken from banks?

a) Nominees have no right over the policy

b) Bank

c) Policyholder

d) None of the above

Q 3. Which group Scheme is renewable every year?

a) Social Insurance Scheme

b) Group Leave Encashment Scheme

c) Group superannuation scheme

d) Group Term Insurance

Q 4. What is the content of the preamble of a life insurance policy?

a) The name and address of the insurance company.

b) The intention of the insurer and the insured in brief and general terms.

c) The rights and responsibilities of the insured and the insurer under the insurance contract.

d) The conditions to be followed and privileges of the insured for enjoying the insurance coverage.

Q 5. Which of the following is the most important additional requirement for processing Early death claims?

a) Certified copy of Death registered in Municipality or Local authority

b) Proof of title of the claimant and statement from the latest medical report giving details of last illness, previous history, and treatment

c) Claimant statement giving details of death, nature of last illness, burial or cremation details

d) All of the above

Q 6. The main function of an insurance agent is to_______________.

a) Solicit and procure life insurance business

b) Offer rebates to policyholders to procure more business

c) Act against the interests of the insurer

d) Act against the interests of the insured

Q 7. Full form of GLES is_________________.

a) Gross Leverage Entry Scheme

b) Group leave employees scheme

c) Group local entrepreneurial scheme

d) Group leave encashment scheme

Q 8. Examining and making decisions on the proposals for insurance is called_____________.

a) Actuarial Science

b) Underwriting

c) Nomination

d) Medical examination

Q 9. What is NOT true about a Mutual Insurance Co?

a) It has stockholders and it operates to earn a profit.t

b) Surplus is distributed to policyholders as a reduction in premium

c) It is owned by the policyholders

d) It's a co and mdash; operative organization

Q 10. The insurance plans specifically meant to meet regular income needs, post-retirement, are referred to as:

a) Annuities

b) Endowment plan

c) Whole life plan

d) Term assurance

Q 11. Insurance Ombudsman can settle the dispute where the amount involved is less than________lakh.

a) 10 lakh

b) 15 lakhs

c) 20 lakhs

d) 25 lakhs

Q 12. Who should be appointed by the policyholder when the nominee is a minor?

a) Assignee

b) Assignor

c) Appointee

d) Nominee

Q 13. Q13) Which of the following changes would not increase the risk to the Insurer

a) Increase in Sum Assured

b) Increase in Policy Term

c) Change in Residence

d) Change from Endowment to the Anticipated Endowment Plan

Q 14. A married woman bought a life assurance policy in February 2016 and unfortunately, she died in a car accident in December 2016. Which of the below documents will NOT be required while settling the claim?

a) Police inquest report

b) Certificate of cremation or burial

c) First information report in the local police station

d) Agents' confidential report

Q 15. When is withdrawal not allowed?

a) During Login period

b) During safety period

c) During the vesting period

d) During the lock-in period


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