IC02 (LICENTIATE) Practice of Life Insurance - 15
Q1.Why is churning bad in insurance? |
Policyholders suffer due to surrender charges and benefits |
Policyholders get more benefits |
Agents earn lower commission on churning |
Insurance companies get good branding |
Churning allows insurance companies to make more profits |
Q2.A favorably performing market can contribute to increasing ____. |
Net incurred claims |
Investment income |
Expenses of management |
Net earned premiums |
All of the above |
Q3.Mr. Surendra purchased a flat costing Rs 4 crore. He has taken a housing loan for it. As an insurance advisor, which Insurance product would you suggest for him? |
Medi-claim policy |
Whole life assurance plan |
Accident cover insurance |
Money-back assurance |
Mortgage insurance plan or Term assurance plan |
Q4.In ___ insurance policy, a partial amount of the sum assured is paid back in single or multiple Installments. |
Full cover |
ULIPs |
Premium back |
Endowment |
Money back |
Q5.Insurance premiums that are calculated after taking into account the interest likely to be earned are called __. |
Raw premium |
Net premium |
Base premium |
Tabular premium |
Level premium |
Q6.____ employs selected doctors and hospitals in exchange for a fixed premium. |
Larceny |
Health maintenance organization |
Fidelity bond |
Health insurance |
Preferred provider organization |
Q7.Breach of duty of utmost good faith can be categorized into __. |
Nondisclosure |
Fraudulent misrepresentation |
Concealment |
All of above |
None of above |
Q8.If the tabular premium is Rs 55.60, calculate the half-yearly premium amount for a sum assured of Rs. 3 lakhs along with added benefits of Double accident benefit and Extended Permanent Disability benefit at an additional premium of Rs 1.60 sum assured |
Rs 8500 |
Rs 8580 |
Rs 8470 |
Rs 8690 |
Rs 8600 |
Q9.A person is not able to pay a premium of his policy. Besides surrendering the policy, what is another option available? |
The policy will be subject to lien |
On maturity, the sum assured will be paid after deducting the unpaid premiums |
The policy will be canceled and the premiums paid will be returned on maturity |
Change the policy to paid-up status and the reduced Sum assured |
Premiums paid will be returned on maturity |
Q10.The ___ type of plans promise payment of part of the sum assured at intervals, during the life of the policy. |
Money back |
Unit linked |
Endowment |
Retirement |
Equity-linked |