IC02 Mock Test sample 6
These MCQs focus on IC02 – Practice of Life Insurance concepts related to group insurance, ULIPs, policy servicing, and legal aspects. They test knowledge of eligibility criteria such as employee age limits, loan against policy, and assignment restrictions including MWP Act. Questions cover revival schemes, grace period exceptions, and NAV calculation. ULIP features like top-up premium and premium allocation are included. Regulatory aspects such as Micro Insurance and legal enforceability under the Stamp Act are highlighted. Core principles like insurable interest and policy documents are tested. Additional topics include annuity processes, premium types, nomination rules, accident benefits, and roles of agents in underwriting.
1. What should be the age group of employees for availing group insurance term plan?
a) 18 to 50 years
b) 18 to 55 years
c) 18 to 60 years
d) 20 to 50 years
e) 20 to 60 years
2. Loan amount against a life insurance policy is generally ____ of surrender value.
a) 50%
b) 60%
c) 70%
d) 80%
e) 90%
3. Assignment of policy is not applicable for:
a) Endowment policies
b) Pension plans
c) Plans under MWP Act
d) Both b and c
e) All of the above
4. Types of Policy Revival Schemes include:
a) Ordinary Revival
b) Special Revival
c) Installment Revival
d) Loan-Cum-Revival
e) All of the above
5. Grace period clause is not enforced in:
a) Salary Saving Scheme
b) Postal Life Insurance
c) Mediclaim policies
d) Place of payment
e) All of the above
6. Maximum permissible age for group insurance is:
a) 50 years
b) 55 years
c) 60–80 years
d) 70–75 years
e) 65 years
7. NAV calculation (Market value = 50,00,000; Units = 25,000):
a) Rs 25
b) Rs 100
c) Rs 150
d) Rs 200
e) Rs 350
8. In ULIP, additional investment over premium is called:
a) Top Up
b) Rider
c) Bonus
d) Special Premium
e) Tip
9. ULIP premium is divided into ____ parts.
a) 2
b) 3
c) 4
d) 5
e) 10
10. IRDA issued ______ to promote insurance among poor.
a) Macro Insurance Regulations
b) Micro Insurance Regulations
c) Term Insurance Regulations
d) SME Insurance Regulations
e) Local Insurance Regulations
11. Insurance contract requires insurable interest in:
a) Cover
b) Conditions
c) Clause
d) Benefit
e) Subject matter
12. Evidence of insurance contract is:
a) Execution form
b) Proposal form
c) Policy document
d) Cover note
e) All of the above
13. One-time premium annuity with delayed payments is called:
a) Commuting
b) Annuitize
c) Vesting
d) Moneyback
e) None
14. Whole life plans in USA/Canada are called:
a) Term
b) Organic
c) Permanent
d) Whole
e) Valid
15. DOB: 20 Aug 1983; Policy date: 10 July 2010. Age is:
a) 26 years
b) 27 years
c) 26 years 11 months
d) 26 years 10 months
e) 26 years 9 months
16. Premium keeping constant throughout term is:
a) Risk premium
b) Level premium
c) Net premium
d) Gross premium
17. Policy must be stamped as per:
a) Insurance Act
b) Stamp Act
c) LIC Act
d) IRDA Act
18. Maximum Accident Benefit allowed is:
a) Half of sum assured
b) 75% of sum assured
c) 50% of sum assured
d) Equal to sum assured
19. Which is NOT correct about nomination?
a) Witness must sign
b) Nomination can be revoked
c) Nominee has no rights
d) Minor nominee requires appointee
20. Primary underwriter of proposer is:
a) Agent
b) Underwriter
c) Insurance company
d) IRDA
