IC02 (LICENTIATE) Practice of Life Insurance - 12
| Q1.What sets out the circumstances that must be present before an insurance company will pay out any claims to the insured parties, in an insurance policy? |
| Proviso |
| Preamble |
| Schedule |
| Operative Clause |
| Agreement annexure |
| Q2.___ does not appear in a policy document. |
| The date of a policy proposal |
| The date of birth of insured |
| The date of commencement of the policy |
| The date of birth of the nominee |
| The date of maturity of the policy |
| Q3.Among the given options, which factor will be affected if the mortality rate changes? |
| Net incurred claims |
| Expenses of management |
| Net earned premium |
| Investment income |
| None of the above |
| Q4.The Governing body of the Insurance council is formed under sec 40 C of ___. |
| SEBI Act 1992 |
| The Companies Act 1956 |
| The Insurance Amendment Act |
| The General Insurance Business (Nationalisation) Act 1972 |
| The Insurance Act 1938 |
| Q5.On which aspects do the insurance companies have to focus to achieve the best in class service? |
| Agents, clients, premium |
| Products, rates, premium |
| People, resources, processes |
| Products, re-insurance, pricing |
| Pricing, re-insurance, products |
| Q6.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? |
| What should the agent do? |
| Carry out these recommendations but document that this contradicts his recommendations |
| Do a new fact-finding study of products |
| Invest a lower amount in the high-risk product |
| None of the above |
| Q7.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 specified period. What is this mismatch called? |
| Wrong probability |
| Calculated mismatch |
| Inverse selection |
| Favorable selection |
| Adverse selection |
| Q8.A policyholder of an Endowment Assurance policy wants to transfer all the rights of this policy to his wife solely. What should he do in this matter? |
| Nomination |
| Convert |
| Assignment |
| Surrender |
| Agreement |
| Q9.Insurance companies use Diversification to protect themselves against __. |
| Concentration of risks |
| The law of large numbers |
| Parameter changes |
| Moral hazards |
| Correlated risks |
| Q10.When can a life insurance policy be made Paid Up? |
| When savings elements feature exists in the policy |
| When .equity investment feature exists in the policy |
| When indexing contribution’ feature exists in the policy |
| When rider benefits feature exists in the policy |
| When ‘atonement's feature exists in the policy |