IC02 Mock Test Sample 7
These MCQs cover practical aspects of IC02 – Practice of Life Insurance, focusing on agent eligibility, pension needs, and age calculation methods. They test knowledge of claim settlement timelines, ULIP surrender rules, and underwriting conditions like restrictive clauses. Numerical questions include premium calculations and age determination. Key topics include MWP Act restrictions, policy types like money-back plans, and fund switching in ULIPs. Operational concepts such as LIC office functions, industrial insurance records, and claim procedures are included. Risk classification, early claims, and legal aspects of nomination and beneficiaries are also emphasized, ensuring a strong understanding of real-world insurance practices and regulations.
1. Mr. Rohit is suitable to become an insurance agent because:
a) He is not a minor
b) He has passed 12th standard
c) He is not of unsound mind
d) All of the above
2. Why is a pension policy needed?
a) Compulsion under tax laws
b) Risk of dying
c) Deterioration in employment
d) Risk of living long
3. DOB: 4 July 1982; Policy Date: 4 Dec 2010. Age (Nearest Birthday)?
a) 29 years
b) 28 years 5 months
c) 28 years
d) 30 years
4. Claim investigation must be completed within:
a) 1 month
b) 3 months
c) 6 months
d) 9 months
5. In ULIP, surrender penalty becomes zero after:
a) 3 years
b) 5 years
c) 4 years
d) 7 years
6. Restrictive conditions eliminate:
a) Default probability
b) Underwriting loss
c) Ignored risks
d) Hazardous occupation risks
7. Sum Assured Rs. 20,000; occupational extra premium Rs. 3/- %. Premium is:
a) Rs. 1660
b) Rs. 2180
c) Rs. 954
d) Rs. 540
8. __________ pool is separately maintained by insurers.
a) Car insurance
b) Home insurance
c) Life insurance
d) All of the above
9. Under MWP Act, policy does not allow:
a) Addendum
b) Multiple beneficiaries
c) Appointment of trustee
d) Joint life policies
10. Highest surrender value factor after 3 years is for:
a) 10-year plan
b) 25-year plan
c) 15-year plan
d) 20-year plan
11. In industrial insurance, ______ contains collection details.
a) Credit list
b) Debit list
c) Policyholders list
d) Collection list
12. Plan paying periodic benefits during term:
a) Term plan
b) Endowment plan
c) Whole life
d) Money back plan
13. Switching equity fund to debt fund is called:
a) Transfer
b) Switching
c) Redirection
d) None
14. Quarterly premium (given data):
a) Rs 320
b) Rs 312
c) Rs 331
d) Rs 339
15. LIC office handling actuarial & investment functions:
a) Central Office
b) Zonal Office
c) Divisional Office
d) Branch Office
16. Minor nominee without appointee → claim goes to:
a) Legal heirs
b) Court-appointed trustees
c) Appointee
d) Spouse
17. Claim settlement time after all requirements:
a) 60 days
b) 30 days
c) 120 days
d) None
18. Disability risk is:
a) Arbitrage
b) Financial
c) Fundamental
d) Speculative
19. Age (nearest birthday) for 22 yrs 5 months 29 days:
a) 21 years
b) 22 years
c) 23 years
d) 22 years 6 months
20. Claims within 2 years are called:
a) Fast claims
b) Early claims
c) Special claims
d) Free claims
