IC02 Mock Test Sample 10
These questions focus on advanced concepts of life insurance such as bonuses, policy structures, underwriting responsibilities, and regulatory guidelines. They cover different types of bonuses like terminal bonus, and products like decreasing term insurance (mortgage insurance). The role of agents in ensuring suitability of policies and full disclosure is emphasized. Key topics include group insurance (master policy), revival (reinstatement), premium components like risk charges, and policy document sections. Legal aspects such as MWP Act protection and claim adjudication are also included. Overall, the set strengthens understanding of product features, compliance, and operational practices essential for insurance exams and real-world application.
1. _________ is a one-time bonus provided for long term policies, on attaining maturity or death of the insured person.
a) Reversionary bonus
b) Interim bonus
c) Maturity bonus
d) Terminal bonus
2. Mortgage insurance is a form of ________ insurance.
a) Whole Life
b) Decreasing term
c) Increasing term
d) Flexi term
3. Which of the following statement(s) is TRUE?
a) If there is any submission error while taking a policy, it will not be the fault of the agent
b) If the insurance policy does not meet the proposer’s need then the agent will be at fault
c) It is the agent’s duty to see that the proposed policy meets the needs of the prospect
d) Both 2 and 3 are correct
4. The Life Insurance proposal has 2 functions. One is a request for insurance. What is the other?
a) Ensures the proposer fulfils duty of disclosure
b) Ensures insurable interest exists
c) An offer to enter into a contract
d) Provides information about insurance amount
5. Boiler and Pressure plant insurance is best described as:
a) Covers damage due to explosion affecting plant, property and third parties
b) Covers risks related to all accidents
c) Covers ships and vessels
d) Covers motor vehicles
6. If the mortality rate changes, ______ will be affected.
a) Hedging options
b) Expenses of management
c) Net earned income
d) Net incurred claims
7. Policy document covering members under a group policy is called:
a) Social Security Policy
b) Group Policy
c) Master Policy
d) Social Policy
8. When can insurer ask for proof of continued good health?
a) On change of occupation
b) At survival benefit
c) At revival
d) When riders are changed
9. _______ is additional amount paid to increase investment contribution.
a) Premium
b) Sum Assured
c) Top Up
d) Insured Amount
10. Age (DOB: 20 Aug 1983, DOC: 10 July 2010):
a) 26 years
b) 27 years
c) 26 years 11 months
d) 26 years 10 months
11. Sum Assured details are found in:
a) Policy Schedule
b) Policy Preamble
c) Attestation
d) Conditions and Privileges
12. Insurer allows rebate in premium in case of:
a) Monthly mode
b) Half Yearly mode
c) Quarterly mode
d) Annual Mode
13. Single policy covering many lives is called:
a) Group Policy
b) Many Persons Policy
c) One Policy Many Lives
d) Master Policy
14. Revival on same terms is called:
a) Renewal
b) Re-investment
c) Repatriation
d) Reinstatement
15. Premium for death cover is:
a) Surrender Charges
b) Risk Cover Charges
c) Accidental Benefit Charges
d) Fund Switching Charges
16. Which is not referred in IRDA Guidelines?
a) Limits on Sum Assured & Top Up
b) Name of the Plan
c) Partial Withdrawal
d) Surrender benefits
17. Under MWP Act, 1874 which is TRUE?
a) Creditors have first claim
b) Creditors have no claim
c) Creditors have residual claim
d) Income tax authorities have claim
18. Motor third party claims adjudication:
a) Statement 1 is true
b) Statement 2 is true
c) Statement 3 is true
d) All are false
19. Insurance firm owned by policyholders is called:
a) Client Insurance Company
b) Subscribers Assurance Cooperative
c) Mutual insurance company
d) Stock insurance company
20. Assignment where assignee becomes owner:
a) Conditional Assignment
b) Absolute Assignment
c) Endorsement assignment
d) Separate Assignment
