IC02 Mock Test Sample 1
These MCQs cover key concepts of life insurance, ULIPs, annuities, and regulatory aspects. The main role of an insurance agent is to solicit and procure business, while ULIPs combine investment and protection. Surrender penalties in ULIPs typically reduce to zero after 5 years. Important policy terms include attestation, operative clauses, and conditions. Concepts like annuitising, vesting, and commutation relate to pension products. Insurance reduces the financial impact of risks, mainly on value-generating assets. Paid-up value applies when premiums stop mid-term. Money market instruments have maturity up to one year. IRDA grievance redressal can be accessed via toll-free numbers and email, ensuring consumer protection and transparency.
1. The main function of an insurance agent is to _______.
- Solicit and procure life insurance business
- Offer rebate to policyholders
- Act against the interests of the insurer
- All of the above
- None of the above
2. ULIPs are market-linked insurance plans and combine the features of _______.
- Investment and protection
- Annuity and protection
- Savings and protection
- Investment and savings
- Annuity and savings
3. In a ULIP, after how many policy completion years does the surrender penalty become zero?
- 1 year
- 2 years
- 3 years
- 4 years
- 5 years
4. What is the signature on behalf of the insurer called?
- Preamble
- Operative Clause
- Proviso
- True Copy
- Attestation
5. The preamble includes the proviso and ________.
- Operative Clause
- Attestation
- Conditions
- Schedule
- Maturity Clause
6. In the case of LIC, _________ year is defined as the period from appointment to completion of 12 months and thereafter every 12 months.
- Accounting
- Agency
- Appointment
- Schedule
- Bonus
7. Which insurance policy is exempt from stamp duty payments?
- Term Insurance
- Health Insurance
- Rural Insurance
- Postal Life Insurance
- Home Insurance
8. ___________ means instructing the insurance company to start periodic payments.
- Vesting
- Annuitising
- Commutation
- Deferment
- Premium
9. Money Market is a market for instruments having a maturity period of ______.
- One year or less
- Three years and above
- Five years and above
- Ten years and above
- None of the above
10. The date when Madhu received the contract (at age 18) is called ______.
- Commencement date
- Vesting date
- Deferred date
- Policy date
- Contract date
11. ________ is the process where an annuitant withdraws part of the accumulated fund on vesting.
- Immediate Annuity
- Fixed Annuity
- Life Annuity
- Assured income
- Commutation
12. Insurance is a mechanism to reduce impact of adverse events on ________.
- Value generating assets
- Non value generating assets
- Risks
- Fixed assets
13. Which payment mode involves less administrative work?
- Monthly mode
- Yearly mode
- Half-yearly mode
- Quarterly mode
14. Which term is dissimilar in context of insurable interest?
- Employer
- Creditor
- Surety
- Debtor
15. The opening statement of a policy clarifies the ______ placed on it and is also called ______.
- Terms, Contract
- Proviso, Declaration
- Clauses, Agreement
- Sum assured, Proviso
16. Which statement is FALSE with respect to MWP Act policies?
- Insurance is free from court attachment
- Policy cannot be amended or surrendered
- Policy must be on his own life
- Nomination and assignment are allowed
17. The mechanism of insurance is to ________.
- Reduce impact on liquid assets
- Reduce impact on fixed assets
- Reduce impact on current assets
- Reduce impact on value generating assets
18. If investment returns are lower than expected, the deficit is borne by ______.
- Employer
- Insurance Company
- Government
- None of the above
19. If premium payment stops mid-term, reduced sum assured is called ______.
- Surrender value
- Paid-up value
- Vested amount
- Deferred value
20. A policyholder can lodge a complaint with IRDA through ______.
- Telegram
- Newspaper
- Toll-free number
