IC02 Mock Test Sample 14
These questions focus on claims, policy servicing, risk management, and legal provisions in insurance. A claim is a demand made by the policyholder to the insurer. Agents must act ethically and refuse proposals with dishonest intent. Risk management involves identifying and prioritizing risks. Assignment transfers policy rights, while nomination specifies beneficiaries. Under MWP Act, beneficiaries are typically wife and children. Agents are important for personalized guidance. Revival requires payment of overdue premiums and underwriting approval. Endowment plans pay sum assured with bonus at maturity. Ombudsman handles disputes up to ₹20 lakhs. Foreclosure is similar to surrender of policy. Grace period for annual premium is usually 30 days.
1. A demand on the insurer to fulfill its promise, as per the terms and conditions of the policy is called ___________.
a) Claim
b) Reimbursement
c) Closure of the policy
d) Refund
2. What should the agent do if he finds out that the intention of the proposer was not genuine?
a) He should inform IRDA
b) He should inform the Insurer
c) He should refuse to proceed
d) He should inform the Underwriter
3. The Identification, Assessment and Prioritization of the risks is called ________.
a) Disaster recovery
b) Threat assessment
c) Disaster management
d) Risk management
4. Compensation from solatium fund is paid for (1) No-fault liability claims (2) Hit and run claims
a) Both are true
b) Both are false
c) Statement 1 is True
d) Statement 2 is True
5. Which of the following statements is True?
Statement 1: Certificate under open policy is not stamped
Statement 2: Certificate under open cover is stamped
a) Statement 1 is True
b) Statement 2 is True
c) Both are true
d) Both are false
6. A policyholder wants to transfer all rights to his wife. What should he do?
a) Nomination
b) Convert
c) Assignment
d) Surrender
7. Assignment of policy is not applicable for __________.
a) Endowment Policies
b) Pension Plans
c) Plans under MWP Act
d) Both 2 and 3
8. If the policyholder dies after due date of survival benefit but before settlement, rights vest in _________.
a) Appointee
b) Legal heirs
c) Nominee
d) Insurance company
9. A nomination can be made only in favour of ________________.
a) Any individual
b) Spouse and children with guardian
c) Spouse and minor children
d) Parents, spouse and children
10. Ethical advice indicator for surrendering old policy and buying new one?
a) Difference in returns
b) Client’s views
c) Best interest of client
d) Flexibility of new product
11. Beneficiaries under MWP Act are __________.
a) Husband’s future wife
b) Only husband
c) Children
d) Old parents
12. Why do insurers sell through agents?
a) Policies are simple
b) People decide themselves
c) Agents earn commission
d) Need for personalised guidance
13. Joint Life Assurance policies – correct statement?
a) Underwriting done separately
b) Underwriting done similarly
c) Joint declaration not needed
d) All the above
14. Revival statements – correct option?
A) Only if policy lapsed
B) Underwriter approval needed
C) All premiums must be paid
a) Only B
b) Only A
c) Only C
d) A and B
15. Mohammedan under MWP Act – correct?
a) Both 1 and 2
b) Both 2 and 3
c) Both 1 and 3
d) None
16. Postal life insurance plan with maturity benefit + bonus?
a) Whole Life
b) Endowment Assurance
c) Convertible Whole Life
d) Monthly Income Plan
17. Surrender Value calculation question
a) Rs 3670
b) Rs 3765
c) Rs 8740
d) Rs 4370
18. Maximum Ombudsman complaint limit is _________.
a) 20 lakhs
b) 25 lakhs
c) 50 lakhs
d) 75 lakhs
19. Foreclosure is closest to __________.
a) Surrender Value
b) Nominee
c) Death Claim
d) Maturity Claims
20. Grace period for annual premium payment is ________.
a) 15 days
b) No grace period
c) 30 days
d) Till next premium date
