IC02 Mock Test Sample 16
These questions focus on annuity concepts, insurance policy features, customer needs, and regulatory practices. Vesting date marks the start of annuity payments, while annuitization begins periodic income. Term plans can be converted into whole life policies. Grace period rules, dividend options, and adverse selection are highlighted. Insurance customers primarily seek protection and investment benefits. Tax deductions apply to family health premiums. Defined benefit schemes assure fixed pensions. Policy schedule contains premium details, while salary saving schemes reduce administrative costs. Terminal bonus is a one-time benefit. The role of agents, claim settlement timelines, and annuitant definition are also key concepts covered.
1. The date from which the annuitant starts receiving regular income is known as ________.
a) Immediate date
b) Income date
c) Commuted date
d) Vesting date
2. Dividend option allows all except __________.
a) Purchase additional paid-up insurance
b) Purchase company stock at lower rates
c) Use surplus to pay other policy premiums
d) Apply dividends towards premium
3. Rita grace period case – correct statement?
a) Agent is correct
b) Correct but penalty applicable
c) Grace period is only 15 days
d) No grace period for monthly mode
4. Term insurance conversion option can convert into __________.
a) Whole life insurance
b) ELSS Plan
c) Limited term insurance
d) Mortgage life insurance
5. Disadvantage of investing in annuity?
a) Regular payments
b) Money gets blocked
c) Financial independence
d) Portfolio diversification
6. __________ means instructing insurer to start periodic payments.
a) Vesting
b) Annuitize
c) Commutation
d) Deferment
7. Agent’s action after proposal rejection?
a) Inform relationship ended
b) Ask for more documents/info
c) Appeal to higher authority
d) Suggest other companies
8. Mismatch between healthy insured and mortality table is called?
a) Wrong probability
b) Calculated mismatch
c) Inverse selection
d) Adverse selection
9. Which statement is TRUE?
a) Assignment does not cancel nomination
b) Policy can be revived anytime
c) Premium reducing alterations not allowed
d) All of the above
10. Two primary needs of insurance customer?
a) Growth and savings
b) Retirement and protection
c) Investment and retirement
d) Investment and protection
11. Health premium tax deduction applies to?
a) Self only
b) Self and spouse
c) Self, spouse, elder child
d) All family members
12. Pension known beforehand is under __________ scheme.
a) Defined contribution
b) Defined benefit
c) Defined premium
d) Defined distribution
13. 50% pension to spouse after death is under __________.
a) Fixed annuity
b) Life annuity
c) Joint life last survivor annuity
d) Increasing annuity
14. Claim investigation must be completed within ________.
a) 3 months
b) 6 months
c) 9 months
d) 12 months
15. Premium details are mentioned in __________.
a) Policy Schedule
b) Policy Preamble
c) Attestation
d) Conditions and Privileges
16. Advantage of Salary Saving Scheme?
a) Multiple receipts needed
b) High lapsation
c) No monthly collection needed
d) Lower administrative cost
17. Premium for Rs 25,000 policy is __________.
a) 25 times of Rs 1,000
b) 5 times of Rs 5,000
c) May vary due to factors
d) None of the above
18. Correct statement about agent?
a) Can be asked for ID
b) Prospect can see license
c) Must carry ID card
d) All of the above
19. One-time bonus for long-term policy is called __________.
a) Simple reversionary bonus
b) Compound reversionary bonus
c) Terminal bonus
d) Interim bonus
20. Who is an annuitant?
a) Person who sells annuity
b) Person who buys annuity
c) Person who guarantees annuity
d) Person who advertises annuity
