IC02 Mock Test Sample 3
These questions focus on core concepts of IC02 – Practice of Life Insurance, covering policy structure, premium types, and regulatory provisions. They test understanding of elements like death and maturity benefits, loadings in premium calculation, and types of policies such as limited payment and endowment plans. Numerical questions assess unit allocation in equity funds and age calculation methods. Important topics include IRDAI regulations, claim settlement clauses, grace period, and Human Life Value (HLV). Fund types, child plan features, loan limits, and industrial insurance records are included. The set also covers legal provisions like MWP Act, and roles of LIC offices in actuarial and customer servicing functions.
1. Which are the basic elements of life insurance?
a) Premium and riders
b) Safety and Retirement income
c) Interest yield and variable income
d) Death cover and maturity benefits
2. The term used to refer an increase in Net or Pure Premium for different reasons is:
a) Bonus
b) Loadings
c) Office Premium
d) Risk Premium
3. In which type of policy are the premiums paid for a stated number of years?
a) Endowment life insurance
b) Cash surrender value
c) Limited payment life insurance
d) Term life insurance
4. For which of the following insurance plans will the surrender value factor be highest after 3 years (same Sum Assured)?
a) Insurance plan for 10 years
b) Insurance plan for 12 years
c) Insurance plan for 18 years
d) Insurance plan for 20 years
5. An individual invests Rs. 58,000 in an equity fund. NAV = Rs. 25. Units allotted?
a) 2240 units
b) 2295 units
c) 2320 units
d) 2460 units
6. As per the IRDAI Act 1999, an insurance intermediary includes:
a) Insurance brokers
b) Loss assessors
c) Re-insurance brokers
d) All of the above
7. The Married Women’s Property Act 1874 is protected under which section of the Insurance Act 1938?
a) 38
b) 39
c) 21
d) 9
8. Date of Birth: 4 July 1982; Commencement: 4 Dec 2010. Age (Next Birthday method)?
a) 28 years
b) 28 years 5 months
c) 29 years
d) 30 years
9. If the company follows Actual Age method, it will calculate:
a) Age next birthday
b) Age last birthday
c) Age nearest birthday
d) Age on the day of commencement
10. Issues concerning delayed payment for life insurance claims are covered under:
a) Clause 8(5)
b) Clause 9(9)
c) Clause 5(1)
d) Clause 11(3)
11. A policy lapses if the premium is not paid within:
a) Late fee period
b) Grace period
c) Bonus period
d) None of the above
12. Human Life Value is calculated by discounting the:
a) Current earnings of the insured
b) Income used for dependents
c) Saving potential of the insured
d) Consumption expenditure potential
13. What kind of premium keeps the premium constant throughout the policy term?
a) Level premium
b) Net premium
c) Gross premium
d) Risk premium
14. Which fund invests in instruments with maturity less than one year?
a) ELSS Fund
b) Equity fund
c) Balanced fund
d) Money market fund
15. In a child insurance plan, the date when risk commences is called:
a) Vesting date
b) Deferred date
c) Maturity date
d) Commencement of risk date
16. The additional loan amount generally should not exceed what % of surrender value?
a) 70%
b) 80%
c) 90%
d) 95%
17. In industrial life insurance, the ______ contains details of policyholders for premium collection.
a) Credit list
b) Debit list
c) Policyholders list
d) Collection list
18. Who is entitled to the maturity claim?
a) Assignee (if no assignment registered)
b) Nominee
c) Appointee
d) Policyholder himself (if no assignment)
19. An individual invests Rs. 58,000 in an equity fund. NAV = Rs. 25. Units allotted?
a) 2240 units
b) 2295 units
c) 2320 units
d) 2460 units
e) 2500 units
20. ______ of LIC handles actuarial and investment functions and ______ handles policyholder activities.
a) Delhi Office, Branch Office
b) Zonal Office, Branch Office
c) Branch Office, Mumbai Office
d) Central Office, Branch Office
