IC02 Mock Test Sample 18
These questions cover key concepts of life and health insurance including surrender value, insurable interest, policy structure, and claim procedures. Surrender value is generally linked to the paid-up value, while health insurance may exclude diseases like HIV/AIDS. Suicide claims are payable after one year. Riders provide additional benefits, and underwriting is the process of risk assessment. The preamble defines intent, while agents primarily solicit business. Group term insurance is renewable annually. Early claims require strict documentation. Mutual insurers are owned by policyholders. Annuities provide post-retirement income. Understanding these basics is essential for insurance exams like LIC, III, and NISM.
1. The surrender value of an insurance policy is a percentage of the_______________.
a) Issued Value
b) Paid up Value
c) Sum Assured
d) Final Value
2. Which of these diseases is NOT covered under health insurance?
a) HIV / AIDS
b) Heart Attack
c) Burn injuries
d) Kidney failure
3. When will an insurance company be liable to pay the benefits, if the policyholder commits suicide?
a) After three months from the policy date
b) After six months from the policy date
c) The risk of suicide cannot be covered
d) After one year from the policy date
4. In which scheme is Days of Grace Clause not enforced?
a) Whole Life Policies
b) ULIP
c) Salary Saving Scheme
d) None of the above
5. Insurers allow additional benefits by way of ________ to the main policy
a) Endorsement
b) Alteration
c) Riders
d) Assignment
6. Insurable interest refers to ____________
a) Financial interest of the person in the asset to be insured
b) The asset which is already insured
c) Each insurer’s share of loss
d) Amount recoverable from insurer
7. Under a term insurance policy, how are Perils and Hazards distinguished?
a) Perils influence event, hazards trigger payout
b) Perils are medical factors, hazards are lifestyle
c) Perils are risk of death, hazards influence that risk
d) Perils offset risk, hazards define size
8. The Turnaround Time (TAT) as per IRDA standards for service requests is_____________.
a) 5 days
b) 10 days
c) 15 days
d) 20 days
9. When Madhu turned 18 and received the policy title, the contract date is called______________.
a) Commencement date
b) Vesting date
c) Deferred date
d) Policy date
10. Which part of the policy document makes proposal and declaration part of contract?
a) Conditions
b) Schedule
c) Preamble
d) Operative Clause
11. When agent collects premium, he acts as agent of __________
a) IRDA
b) Insurance Company
c) Policyholder
d) Broker
12. Policy assigned as security for loan is given to
a) Nominee
b) Bank
c) Policyholder
d) None
13. Which group scheme is renewable every year?
a) Social Insurance Scheme
b) Group Leave Encashment Scheme
c) Group Superannuation Scheme
d) Group Term Insurance
14. What does preamble contain?
a) Name & address
b) Intention of insurer and insured
c) Rights & responsibilities
d) Conditions & privileges
15. Most important requirement for early death claim
a) Death certificate
b) Medical report
c) Claimant statement
d) All of the above
16. Main function of insurance agent is______________
a) Solicit and procure business
b) Offer rebate
c) Act against insurer
d) Act against insured
17. Full form of GLES is_________________
a) Gross Leverage Entry Scheme
b) Group leave employees scheme
c) Group local entrepreneurial scheme
d) Group leave encashment scheme
18. Examining proposals is called_____________
a) Actuarial Science
b) Underwriting
c) Nomination
d) Medical examination
19. What is NOT true about a Mutual Insurance Company?
a) Has shareholders & earns profit
b) Surplus distributed to policyholders
c) Owned by policyholders
d) Cooperative nature
20. Insurance plans for post-retirement income are called
a) Annuities
b) Endowment plan
c) Whole life plan
d) Term assurance
