IC02 - LICENTIATE - Practice of Life Insurance 52

Q 1. _____________is an International Insurance certification body.

a) ICAI

b) IRDA

c) ICWA

d) LOMA
 
Q 2. The process that assesses the entire spectrum of risks in its totality and then arrives at a decision is known as___________________.

a) Actualization

b) Arbitraging

c) Hedging

d) Underwriting
 
Q 3. Insurance companies can increase the premium amount due to changes in ______________.

a) mortality

b) foreign exchange rates

c) IRDAI rules

d) Company policy
 
Q 4. Mr. Menon purchased a life insurance policy but he hid the fact that he practices active scuba diving. Six years later he died in a scuba diving accident. What will happen to his death claim ?

a) The claim will be settled as this was an innocent misrepresentation

b) The claim will be settled but the sum assured will be lower than what was mentioned in the policy

c) The claim may be settled as the claim cannot be called into question after 5 years

d) The claim will not be settled as the insured did not disclose truthfully
 
Q 5. Which among the following can be attributed to charging Level Premium by the Insurers?

a) Expenses, Bonus with controllable factors

b) Unexpected contingencies and Fluctuations

c) Difficulty in administering the annual changes in a continuing long-term contract

d) Yearly mode of premium reduces the default in subsequent Renewal premiums
 
Q 6. Assignment provisions refer to

a) The transfer of policies

b) Purchase of policies

c) Buying and selling of policies

d) Distribution of policies
 
Q 7. Which of these is/are calculated taking into account likely future experiences concerning mortality, interest, and expenses?

a) Rider bene?ts

b) Bonus

c) Risk cover

d) Premium
 
Q 8. Which of these options is a Non-Variable Annuity contract whose interest crediting mechanism is tied to some external index?

a) Equity Indexed Annuity

b) Debt Indexed Annuity

c) Variable Annuity

d) Flexible Premium Indexed Annuity
 
Q 9. The schedule of a policy document does not contain which of these dates?

a) Date of proposal

b) Date of maturity

c) Date of commencement

d) Nominee's date of birth
 
Q 10. _________ plans take care of the risk of living too long

a) General Insurance Policy

b) Health Insurance Policy

c) Annuity Plans

d) Personal Health and Accident Policy
 
Q 11. Find out which of the given statements is incorrect

a) An organization must have a purpose

b) An organization is identified by its actions

c) An organization is identified by the building it occupies

d) An organization can sue and be sued
 
Q 12. An insurance agent advises his client on a low-risk investment product but the client insists that the agent invests the money in a high-risk product. What should the agent do?

a) Say No to the client and not do the investment

b) Carry out these recommendations but document that this contradicts his recommendations

c) Do a new fact? ending study of products

d) Invest a lower amount in the high-risk product
 
Q 13. Q13) Why does a policyholder choose to pay a slightly higher amount of premium for the same amount of insurance coverage?

a) Due to higher risk cover

b) Due to higher valuation surplus

c) Due to rider bene?ts

d) Due to the higher sum assured
 
Q 14. The period between the loan approval date and the anniversary date of the policy is known as___________.

a) Vesting period

b) broken period

c) Deferment period

d) Foreclose period
 
Q 15. Under which method do the employers pay gratuity to the employee, when he leaves the company, from the current year's revenues?

a) Internal reserve method

b) Internal trust

c) Group gratuity scheme

d) Pay-as-you-go method

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