IC02 Mock Test Sample 15
These questions cover key concepts of life insurance such as non-forfeiture options, mortality impact, annuity terms, and principles of insurance. Surrender value is highlighted as a useful non-forfeiture option for clients. Changes in mortality affect net incurred claims, while insurance is based on economic value and probability of risk. Concepts like duty of disclosure, free-look period, and group insurance rules are emphasized. Mortgage insurance is identified as decreasing term insurance, and policy document serves as proof of contract. Topics also include bonuses, investment funds, and annuity benefits, helping in understanding practical applications and regulatory aspects of life insurance products.
1. What is a good option for Non Forfeiture from a client’s perspective?
a) Days of grace
b) Surrender Value
c) Notional Credit
d) Level Premium
2. Among the given options, which factor will be affected if mortality rate changes?
a) Net incurred claims
b) Expenses of management
c) Net earned premium
d) Investment income
3. Mihir annuity question – maturity/period certain reference date?
a) Jan 1st 2000
b) Jan 1st 2015
c) Jan 5th 2035
d) None of the above
4. The business of insurance is connected with the __________.
a) Meta physical value of assets
b) Physical value of assets
c) Intrinsic value of assets
d) Economic value of assets
5. On which principle is the business of insurance based on?
a) Collective risks
b) Probability of risks
c) Interest rates
d) Claim ratio
6. What is the maximum permissible age of an employee for availing Group Insurance?
a) 50 years
b) 55 years
c) 60 years
d) 61 years
7. If there are two nominees how will the policy money be paid?
a) A joint discharge by both nominees
b) Paid jointly to all nominees
c) Nominees invalid
d) Both A and B
8. Minimum number of lives insured to retain LIC agency?
a) No minimum requirement
b) Twelve lives anytime
c) One life every month
d) Twenty four lives anytime
9. Surrender Value calculation question
a) Rs 8699
b) Rs 7416
c) Rs 6308
d) Rs 5741
10. In life insurance, how long does duty of disclosure operate?
a) Until proposal is signed
b) Until risk commences
c) For duration of policy
d) Until first renewal
11. Which statements are correct? (A, B, C)
a) A and B
b) A and C
c) B and C
d) All are correct
12. Free look period refund reasons?
a) Terms mismatch
b) Policy not suitable
c) Dissatisfaction
d) All of the above
13. Risk of disability is which type of risk?
a) Homogeneous
b) Fundamental
c) Factious
d) Financial planning
14. ________ is the evidence of Insurance Contract
a) Proposal Form
b) Policy Document
c) Prospectus
d) Unit Statement
15. Mortgage insurance is a form of ___________ insurance.
a) Whole Life
b) Decreasing term
c) Increasing term
d) Flexi term
16. Which fund invests in instruments with maturity less than one year?
a) ELSS Fund
b) Equity fund
c) Balanced fund
d) Money market fund
17. Bonus payable between two valuation dates is called
a) Terminal Bonus
b) Interim Bonus
c) Simple reversionary Bonus
d) Compound reversionary Bonus
18. Insurer can decline risk only if __________.
a) Premium rates increase
b) New quotation requested
c) Stock rates change
d) Material facts
19. Expanded form of SA in life insurance
a) Sum Assured
b) Surrender of Assurance
c) Supplementary Assurance
d) Survivor's Annuity
20. What is returned if death occurs during deferment period?
a) Only Sum Assured
b) Sum assured + bonus
c) Accumulated Bonus
d) All premium + interest
