IC02 Mock Test Sample 17
A life insurance policy typically acquires surrender value only after at least two to three years of premium payment, ensuring commitment from the policyholder and stability for the insurer. Regarding the structure of a policy document, it follows a logical legal order: it begins with the Preamble (introducing the contract), followed by the Operative Clause (defining the insurer’s promise), then the Proviso (exceptions/conditions), the Schedule (policy details), Conditions and Privileges (rules and benefits), and finally Attestation (signatures and authentication). This structured format ensures clarity, legal validity, and proper understanding of rights, obligations, and coverage terms for both insurer and insured.
1. What is the minimum number of years a policy must be kept to be able to get surrender value in traditional plans?
a) 1 year
b) 2 years
c) 3 years
d) 4 years
2. Arrange the Following Parts of a Policy Document into Correct Order.
(i) Preamble (ii) Operative Clause (iii) Proviso (iv) Schedule (v) Attestation (vi) Conditions and Privileges
a) (i), (iv), (v), (vi), (ii), (iii)
b) (i), (iii), (iv), (v), (vi), (ii)
c) (i), (v), (iii), (iv), (vi), (ii)
d) (i), (ii), (iii), (iv), (vi), (v)
3. IRDA Code of Conduct prohibit the agent from
a) Collecting the subsequent premiums
b) Disclose the Licence to the Customer
c) Disclose the commission
d) Advise the Policy Holder on Nominations
4. __________ are the extra charges that are added to the premium by the insurance companies.
a) Riders
b) Adverse selection
c) Loading
d) Life fund
5. Mr. Suresh died 5 years before the end of his 30 year endowment policy. Why this death claim was investigated by the insurance co.?
a) Mr. Suresh had started drinking liquor regularly
b) His cover had a premium loading on medical grounds
c) The policy was foreclosed due to his death
d) The policy had lapsed and was revived shortly before the life assured died
6. A policy document includes the statement that proposal and declaration form the basis of contract. This appears in which section?
a) Operative clause
b) Attestation
c) Terms and conditions
d) Preamble
7. Which of the following statements is False?
a) Insurer may consider death claim after 7 years (Evidence Act)
b) Decision on proposal must be conveyed within 15 days
c) Offering rebate can lead to termination of agency
d) Reinstatement of foreclosed policy is allowed even after surrender value paid
8. To avoid forfeiture clause, premiums must be paid for at least
a) One year
b) Two years
c) Three years
d) Four years
9. In __________ annuity, 50% pension continues to spouse after death of annuitant
a) Joint life last survivor annuity
b) Annuity with return of premium
c) Life annuity
d) Term insurance
10. Which insurance policy is exempt from stamp duty?
a) Term Insurance
b) Health Insurance
c) Crop Insurance
d) Postal Life Insurance
11. IRDA issued __________ to spread insurance among poor people
a) Macro Insurance Regulations
b) Micro Insurance Regulations
c) Term Insurance Regulations
d) SME Insurance Regulations
12. Which is an example of a restrictive condition?
a) No claim if suicide
b) Policy void if premium not paid
c) Policy void if false information
d) Premium deducted from claim
13. Assignment is of two types namely
a) Fixed & Variable
b) Absolute & Conditional
c) Life & General
d) None
14. _________ are extra charges added to premium
a) Adverse Selection
b) Actuarial Valuation
c) Life Fund
d) Loading
15. The date from which annuitant starts receiving income is known as
a) Deferred date
b) Immediate date
c) Vesting date
d) Commuted date
16. Free Cover Limit is
a) Free insurance amount
b) Maximum cover amount
c) Medical checkup essential limit
d) Medical checkup not required limit
17. Pension amount known beforehand is called
a) Guaranteed benefit scheme
b) Group superannuation
c) Defined Contribution Scheme
d) Defined Benefit Scheme
18. Where is Sum Assured mentioned in policy document?
a) Policy Schedule
b) Policy Preamble
c) Attestation
d) Conditions and Privileges
19. Simplest way to secure family financially is
a) Mutual Funds
b) Safe Deposits
c) Life Insurance
d) Pension Planning
20. Premium in ULIP is divided into ______ parts
a) 2
b) 3
c) 4
d) 5
