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 |