IC02 Mock Test Sample 13
These questions cover core concepts of life insurance operations, policy servicing, and regulations. The First Premium Receipt indicates the start of risk. Loading in term plans arises due to mortality risk. Foreclosure refers to early closure of a policy. Alteration is a change requested by the insured. Article 41 relates to social security. LIC is a public insurer. ULIP tax benefits fall under Section 80C limits. Section 45 restricts insurer’s right to cancel policies. Non-payment of premiums can make policies void. Marine insurance follows warehouse-to-warehouse cover. Peril, risk, and hazard define insurance events. Agents provide guidance and collect information. Central and branch offices handle actuarial and servicing functions respectively.
1. What does the date of issue of First Premium Receipt (FPR) indicate?
a) The date when the policy will commence
b) The day when policy is renewed
c) The date when the next premium falls due
d) The date when the risk effectively begins
2. Why is there a loading in a Term Plan?
a) Due to morbidity
b) Due to mortality
c) Due to investment expenses
d) Due to Administrative charges
3. What does foreclosure mean?
a) Advising surrender after 3 years
b) Closure before maturity date
c) Adjusting loan at maturity
d) Asking to pay loan interest
4. Calculate premium (Endowment Plan)
a) Rs 1620
b) Rs 1645
c) Rs 1595
d) Rs 1670
5. Select the True Statement with respect to Alteration
a) Change requested by insurer
b) Change requested by insured
c) Change by IRDA
d) Change by nominee
6. Which article relates to Social Security?
a) Article 38
b) Article 39
c) Article 40
d) Article 41
7. Which is not a private life insurance company?
a) Oriental Life Insurance Company
b) Life Insurance Corporation of India
c) Reliance Life Insurance
d) Birla Life Insurance
8. Maximum ULIP investment for tax saving
a) Rs 25000
b) Rs 50000
c) Rs 100000
d) Rs 200000
9. Which statement is True?
a) Employer responsible in salary saving scheme
b) Nomination cannot be altered
c) Section 45 limits insurer rights
d) All of the above
10. When will policy become void?
a) Loss occurs
b) Policy discontinued
c) Market recession
d) Premium not paid
11. Survival benefit rights vest in
a) Legal heirs
b) Nominee
c) Appointee
d) Insurance company
12. Which statement is True? (Marine Insurance)
a) Statement 1 is true
b) Statement 2 is true
c) Both are true
d) Both are false
13. Fill in the blanks
a) Peril, Risk, Hazard
b) Hazard, Peril, Risk
c) Risk, Peril, Hazard
d) Peril, Hazard, Risk
14. Head office specialist performs
a) Market development
b) Accounts handling
c) Policy servicing
d) Actuarial study
15. Which plans are not eligible for loan?
a) Annuities
b) Pension plans
c) Money back policies
d) All of the above
16. Why are insurance agents required?
a) To earn commission
b) To give guidance
c) To collect information
d) B and C above
17. LIC functions handled by
a) Delhi Office, Branch Office
b) Zonal Office, Branch Office
c) Branch Office, Mumbai Office
d) Central Office, Branch Office
18. Free cover limit is
a) No medical checkup required limit
b) Free insurance cover limit
c) Maximum cover amount
d) Medical checkup essential limit
19. Missing person presumed dead after
a) 2 years
b) 5 years
c) 7 years
d) 10 years
20. Scheme for gratuity liability
a) Group ULIP
b) Group insurance
c) Group superannuation
d) Group gratuity scheme
