IC02 Mock Test Sample 4
These MCQs cover important concepts of IC02 – Practice of Life Insurance related to annuities, underwriting, claims, and policy provisions. They test knowledge of annuity payment modes and types like joint life annuity, along with age calculation methods. Numerical understanding is checked through gratuity and surrender value concepts. Questions also focus on risk classification, mortality impact, and roles of actuaries and underwriters. Topics include IRDAI grievance mechanisms, nomination rules, MWP Act provisions, and claim requirements such as post-mortem reports. Overall, the set strengthens understanding of practical insurance operations, legal aspects, and financial risk management in life insurance.
1. An insurance company has to make payments to the annuitant in which of these intervals?
a) Only D
b) A or D
c) A, B or D
d) C or D
e) A, B, C or D
2. In __________ annuity is paid to the annuitant for life and after death 50% pension is paid to spouse.
a) Joint life last survivor annuity
b) Annuity for life with return of premiums
c) Life annuity
d) Term insurance
e) Annuity certain and life thereafter
3. Most life insurance companies use the _________ method for age determination.
a) Age next birthday
b) Age nearest birthday
c) Age last birthday
d) Age previous birthday
e) Age on birthday
4. Calculate the Gratuity payable (Basic = 25000, DA = 6500, Service = 3.5 years).
a) Rs. 78600
b) Rs. 81400
c) Rs. 87400
d) Rs. 91650
e) NIL
5. Which of these funds has the most risk?
a) Equity Funds
b) Debt Funds
c) Balanced Funds
d) All have equal risk
e) None of the above
6. Free cover limit is ________.
a) Amount up to which medical checkup is not required
b) Amount of free insurance cover
c) Maximum cover provided
d) Amount where medical checkup is essential
e) None of the above
7. DOB: 2 Feb 1978; Policy Date: 12 Jan 2010. Age (Next Birthday)?
a) 30 years
b) 31 years
c) 32 years
d) 33 years
e) 33.5 years
8. 50% pension to spouse after annuitant’s death is under:
a) Life annuity
b) Fixed annuity
c) Increasing annuity
d) Joint life last survivor annuity
e) All of the above
9. If there are two nominees, how will policy money be paid?
a) Nomination invalid
b) Joint discharge by nominees
c) Paid jointly to all nominees
d) Both b and c
e) As per age ratio
10. Which plan has highest surrender value factor after 3 years?
a) 10-year plan
b) 12-year plan
c) 15-year plan
d) 18-year plan
e) 20-year plan
11. How can a policyholder lodge complaints with IRDAI?
a) Newspaper or Toll Free
b) Email or Toll Free
c) Email or Telegram
d) Newspaper or Telegram
e) Email or Newspaper
12. Under MWP Act, loan can be granted only if authorized by:
a) Appointed trustees
b) Ombudsman
c) Nominees
d) Insured’s children
e) Insured’s wife
13. ________ principle applies to both Life and Non-Life insurance.
a) Insurable interest
b) Utmost good faith
c) Bonus payment
d) Both a and b
e) None of the above
14. Risk of disability is an example of:
a) Arbitrage
b) Financial risk
c) Fundamental risk
d) Speculative risk
e) Homogenous risk
15. If mortality rate changes, ______ will be affected.
a) Hedging options
b) Expenses of management
c) Net earned premium
d) Investment income
e) Net incurred claims
16. Who ensures poor risks are not accepted excessively?
a) Actuary
b) Auditor
c) Approver
d) Bank
e) Underwriter
17. Who certifies new plans and studies mortality experience?
a) Chief Actuary
b) Main Broker
c) Underwriter
d) Head of operations
e) CEO
18. Which claim requires a post-mortem report?
a) Road accident
b) Fire accident
c) Unnatural death
d) All of the above
e) None of the above
19. If nominee is minor and no appointee is appointed, claim will be paid to:
a) Wife
b) Court-appointed trustees
c) Legal heirs
d) Appointee
e) Daughter when she becomes major
20. Under MWP Act 1874, a life insurance policy can be taken by:
a) Married men
b) Married women
c) Both a and b
d) Divorced women
