IC02 Mock Test Sample 19
These questions focus on insurance regulations, risk assessment, and policy servicing concepts. The Insurance Ombudsman handles disputes up to a specified monetary limit, ensuring customer grievance redressal. Concepts like appointee for minor nominees, endorsement for policy changes, and surrender value as notional credit are important. Risk increases with age, and underwriting evaluates overall risk exposure. Financial products like mortgage insurance protect loan liabilities. Regulatory frameworks such as IRDA guidelines govern claim settlement timelines and premium adjustments. Understanding markets (money market ≤ 1 year) and principles like utmost good faith is essential for insurance professionals and exam preparation.
1. Insurance Ombudsman can settle the dispute where amount involved is less than________lakh.
a) 10 lakh
b) 15 lakhs
c) 20 lakhs
d) 25 lakhs
2. Who should be appointed by the policy holder when the nominee is a minor?
a) Assignee
b) Assignor
c) Appointee
d) Nominee
3. Which of the following changes would not increase the risk to the Insurer?
a) Increase in Sum Assured
b) Increase in Policy Term
c) Change in Residence
d) Change from Endowment to the Anticipated Endowment Plan
4. When is withdrawal not allowed?
a) During Login period
b) During safely period
c) During vesting period
d) During lock-in period
5. Which document will NOT be required in accidental death claim?
a) Police inquest report
b) Certificate of cremation or burial
c) FIR
d) Agent’s confidential report
6. Which term matches closest with Automatic Teller Machines?
a) Divisional Offices
b) Branch Offices
c) Interactive Voice Response Systems
d) Information Kiosks
7. Risk of death is ______ as age _________.
a) Higher, decreases
b) Lower, increases
c) Lower, decreases
d) Higher, increases
8. How do insurers allow alterations in policy documents?
a) Written letter
b) Surrender
c) Endorsement
d) Cancellation
9. Calculate age (Age Next Birthday method): DOB 2 Feb 1978, Policy date 12 Jan 2010
a) 31 years
b) 32 years
c) 33 years
d) 34 years
10. Clause covering delayed claim payment under IRDA regulations
a) Clause 8 (5)
b) Clause 10 (2)
c) Clause 12 (2)
d) Clause 13 (1)
11. Notional credit on early closure is called
a) Total Value
b) Maturity Value
c) Surrender Value
d) Sum Assured
12. NAV used at the time of exit is known as
a) Offer Price
b) Bid Price
c) Spread Price
d) Entry Price
13. Money Market instruments have maturity period of
a) Up to 1 year
b) 1 to 3 years
c) 3 to 5 years
d) More than 5 years
14. Breach of utmost good faith falls under
a) Concealment
b) Non-disclosure
c) Misrepresentation
d) All of the above
15. Suitable insurance for housing loan
a) Mediclaim
b) Whole life
c) Accident cover
d) Mortgage / Term insurance
16. International insurance certification body is
a) ICAI
b) IRDA
c) ICWA
d) LOMA
17. Process of assessing overall risk is called
a) Actuarization
b) Arbitraging
c) Hedging
d) Underwriting
18. Premium can increase due to change in
a) Mortality
b) Forex rates
c) IRDA rules
d) Company policy
19. Level premium is charged due to
a) Expenses & bonus
b) Unexpected contingencies
c) Difficulty in yearly changes in long-term contracts
d) Yearly premium mode reduces default
20. Assignment provisions refer to
a) Transfer of policies
b) Purchase of policies
c) Buying and selling
d) Distribution
