IC02 Mock Test Sample 12
These questions cover key concepts of life insurance, claims, underwriting, ULIPs, annuities, and policy administration. Early claims are usually investigated before payout, while subrogation does not apply to life insurance. Riders provide additional benefits to a base policy. Investment in bonds yields interest, and whole life plans offer coverage for an unspecified duration. Misrepresentation of health is a case of adverse selection. ULIPs allow top-up investments, and annuity income begins through annuitisation. KYC requires identity, address, and age proof—not educational documents. A favourable market increases investment income. Missing persons are presumed dead after 7 years, and flexible premium modes are generally not allowed.
1. What type of claims are investigated before a pay out?
a) Maturity claims
b) Early claims
c) Non Early claims
d) Survival Benefit Payment
2. The principle of subrogation does not apply to ______ policies.
a) Life insurance
b) Fire insurance
c) Marine insurance
d) Property insurance
3. Under Married Women's Property Act, 1874 a policyholder is
a) Life Assured
b) Beneficiaries
c) Trust
d) Administrator
4. Life insurance contract is also known as ______.
a) Commercial contract
b) Indemnity contract
c) Investment contract
d) Speculative contract
5. A clause added to a basic policy providing additional benefit is called ______.
a) Rider
b) Forfeiture
c) Top up premium
d) Life cover
6. Mr. Suresh invests Rs 20 lakhs in corporate bonds. Returns will be in the form of
a) Dividends
b) Holidays in resorts
c) Annuity
d) Interest
7. A term assurance plan with unspecified tenure is called ______.
a) Survival benefit policy
b) Life insurance policy
c) Whole life insurance policy
d) Pure endowment policy
8. Find the incorrect statement:
a) Accounts department monitors cash flow
b) Underwriting assesses risk
c) Marketing monitors agents
d) Actuarial department settles death claims
9. Non-disclosure of poor health at policy purchase is a case of
a) Adverse selection
b) Loading
c) Level Premium
d) None of the above
10. Which statement is True?
a) Early death claims are investigated
b) 5% extra for monthly mode
c) Absolute assignment transfers all rights
d) All of the above
11. Starting annuity income process is called
a) Commutation
b) Deferment
c) Annuitising
d) Vesting
12. Which is NOT valid for KYC identity proof?
a) Identity proof
b) Address proof
c) Educational document proof
d) Age proof
13. In ULIP, additional investment is called
a) Top Up
b) Rider
c) Bonus
d) Special Premium
14. Actual age method means
a) Age last birthday
b) Age next birthday
c) Age nearest birthday
d) Age on commencement date
15. Favorable market increases
a) Net incurred claims
b) Investment income
c) Expenses
d) Net earned premiums
16. Operative Clause and Proviso belong to
a) Policy Schedule
b) Policy Preamble
c) Attestation
d) Conditions and Privileges
17. ______ employs selected doctors and hospitals for fixed premium
a) Larceny
b) Health maintenance organisation
c) Fidelity bond
d) Preferred provider organization
18. Missing person presumed dead after
a) 1 year
b) 3 years
c) 5 years
d) 7 years
19. Which is NOT a valid premium payment option?
a) Yearly installment
b) Quarterly installment
c) Half yearly installment
d) Disproportionate flexible installment
20. Which statement is true?
a) Statement 1 is True
b) Statement 2 is True
c) Both are true
d) Both are false
