IC02 - LICENTIATE - Practice of Life Insurance 54

Q 1. Surrender value becomes payable after how many years of policy operation since the inception of ULIP

a) At the end of 1st year

b) At the end of 2 years

c) At the end of 3 years

d) None of the above

Q 2. Under the Group Term Insurance Scheme, can the employer claim tax benefits for the premium paid for the employees?

a) Both the employee and employer can claim tax benefits equally

b) Yes because the premium paid is a business expense

c) No because the premium is paid for the employee and hence the employee can claim tax benefit

d) No because the premium paid is not a business expense

Q 3. Which of the following statements is True? (1) Actual total loss occurs where the subject matter of insurance is destroyed. (2) Constructive total loss occurs where the cost of repairing damaged goods exceeds the value of goods after repair.

a) Statement 1 is True

b) Statement 2 is True

c) Both are true

d) Both are false

Q 4. In a Group Insurance policy, the amount of insurance coverage for each employee depends upon __________.

a) Employee Grade

b) Employee Designation

c) Employee salary

d) All of the above

Q 5. Which one of the following statements is correct?

a) For a first-class life, the premium charged is less than in the tabular rates

b) For a first-class life, the vested bonus will be more than in other cases

c) Both the statements above are correct

d) Both the statements above are wrong

Q 6. _______________is the process where the annuitant can withdraw a certain portion of money from the accumulated fund on the vesting date.

a) Immediate Annuity

b) Fixed Annuity

c) Life Annuity

d) Commutation

Q 7. Which among the following is the current definition of a Policy Document?

a) It is the opening paragraph of the policy statement

b) It is the request for alterations

c) It is the request for a duplicate policy

d) It is evidence of an insurance contract

Q 8. Which of the following does not depend on age?

a) Claim Settlement

b) Risk assessment

c) Premium

d) Date of Payment of Premium

Q 9. 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 10. Which of the following statements is true?

a) A Policy Loan can be granted even without a Policy Bond and based on an Indemnity Bond

b) An assignment automatically cancels a Nomination

c) Insurer offers rebates on all modes of premium

d) A debtor has an insurable interest in the life of the Creditor

Q 11. When an individual wishes to receive an annuity payment after a certain speci? Ed period, this speci? Ed period is known as__________period.

a) Vesting

b) Commutation

c) Refund

d) Deferment

Q 12. As per IRDA, who should set up the IGMS?

a) All insurers

b) Only life insurers

c) Only non-life insurers

d) Only by foreign insurers

Q 13. Q13) The rider premium for accidental death bene?t must not exceed______________.

a) 10% of the base policy premium

b) 20% of base policy premium

c) 25% of base policy premium

d) There is no such allocation

Q 14. What is the only benefit of a term insurance policy?

a) Maturity benefit

b) Bonus benefit

c) Investment benefit

d) Death benefit

Q 15. What is the SUM Assured taken into account in determining whether the policy can be revived under a Medical or a Non-Medical Scheme?

a) Premium paid to date

b) Surrender Value

c) Interest arrears

d) The total Sum at Risk under the lapsed policy as of the date of revival


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