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 |