IC02 (LICENTIATE) Practice of Life Insurance - 02

Q1.Which insurance plan gives cover only in the event of death during a specific term?
 Health Plan
 Term Plan
 Life insurance
 Whole life assurance policy
 Basic insurance
 
Q2.____ is not a group insurance scheme.
 Group saving scheme
 Group gratuity scheme
Group superannuation pension scheme
 Group term insurance scheme
 Group leave encashment scheme
 
Q 3.A Delhi resident, Mr. Singh had taken an insurance policy of 20 years. Due to a setback in his business, he could not pay the premiums from the sixth year. What is the best solution the insurance company can offer Mr. Singh?
Surrender the police immediately and get the surrender value
 Convert the policy into a Term policy
Convert the policy into a Money-Back policy
 Convert the policy into a Whole Life policy
Convert the policy to Paid-Up status
 
Q4.The benefit of an Endowment Assurance policy is continued even after ____.
 Injury of the insured
 Death of the insured
The accidental death of the insured
 Maturity period
 Policy getting lapsed
 
Q5.Which of these statements is TRUE?
 Insurance is a function of uncertainty
Damage to an asset due to peril is called risk, in which the asset is exposed to
 Life insurance protects the life of the insured
 Both 1 and 2 are correct
All 1, 2, and 3 are correct
 
Q6.What will the underwriter do if he feels that the risk is more?
 He will decline the risk
 He will accept the risk
 He will accept the risk of Ordinary Rates (OR)
He will accept the lien
 Both 1 and 4 are correct
 
Q7.The process which assesses the entire spectrum of risks in its totality and then arrives at a decision is known as ____.
 Acturization
 Arbitraging
Hedging
 Underwriting
 Investing
 
Q8.The Free look period is for __ days from the date of receipt of the policy document under a term insurance policy.
 5
 7
 15
 30
 60
 
Q9.How should the selling be in a professional insurance market?
It should be profit-based selling
It should be margin-based selling
It should be produced based selling
It should be commission-based selling
It should be need-based selling
 
Q10.An Insurance company has to maintain its Operating Ratio. However which of the following factors is not in the control of an insurance company?
 Net premium earned
 Investment income
 Net incurred claims
 Expenses of the management
 All of the above

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