IC24 Mock Test Sample 5
This set highlights key legal and insurance principles including contract formation, disclosure, and regulatory provisions. A valid contract requires free consent, competent parties, and lawful consideration. The proposer must disclose all material facts under the principle of utmost good faith. MWP Act protects policy proceeds from creditors and ensures benefits for wife and children. Ombudsman decisions must be complied with within 15 days. Concepts like money laundering, FATF, and record retention ensure financial transparency. Tax provisions such as Section 80CCD allow deductions on pension contributions. Representation differs from warranty in strictness. Overall, legal compliance and transparency are essential for fair insurance practices.
1. Section 10 of the Indian Contract Act states that all agreements are contracts if they are:
a) Made by free consent
b) Parties competent to contract
c) For a lawful consideration
d) All of the above
2. Which of the following details does the proposal form NOT include about the proposer?
a) Name
b) Address
c) Education qualification
d) Age
3. The complainant has the option to accept or reject the recommendations. If accepted, the insurer must comply within ________, failing which Ombudsman shall pass a speaking Award.
a) 10 days
b) 15 days
c) 30 days
d) 50 days
4. Section 6 of MWP Act is attracted only where a policy of insurance is:
a) Effected by a married man
b) On his own life
c) Expressed to be for benefit of wife/children
d) All of these
5. If a life insurance policy is endorsed under MWP Act, 1874 then which of the following is TRUE?
a) Creditors have first claim
b) Creditors have no claim
c) Creditors have residual claim
d) Income tax authorities have claim
6. Rahul is employed by Sunny. Rahul automatically has insurable interest in Sunny’s life up to what limit?
a) Rahul’s monthly salary
b) Rahul’s pension fund value
c) Sunny’s annual profit
d) There is no limit
7. Which action showcases the principle of Uberrima Fides?
a) Lying about medical conditions
b) Not revealing material facts
c) Disclosing material facts
d) Paying premium on time
8. In an Individual policy, assignment or nomination is possible.
a) True
b) False
9. The records referred to shall be maintained for a period of _______ from cessation of transactions.
a) 5 years
b) 10 years
c) 25 years
d) 30 years
10. Who devised the concept of HLV?
a) Dr. Martin Luther King
b) Warren Buffet
c) Prof. Hubener
d) George Soros
11. Commission on second and subsequent year premiums is called:
a) Premiums
b) Renewal premium
c) Bonus premiums
d) None of these
12. As on date, how many High Courts are there in India?
a) 17
b) 19
c) 21
d) 25
e) 22
13. ___________ is the process of bringing illegal money into the financial system to appear legitimate.
a) Money laundering
b) Black money
c) Layering
d) None of these
14. In which of the following forms information can be?
a) Records
b) Orders
c) Papers
d) All of the above
15. In a life insurance contract, it is the duty of the _________ to disclose all material information.
a) Proposer
b) Insurance company
c) Insurer
d) None of these
16. FATF stands for:
a) Financial Advisory Task Force
b) Financial Action Task Force
c) Financial Amendment Task Force
d) Faculty Advisory Task Force
17. If no trustee is appointed under MWP Act, policy benefits are payable to:
a) Next of kin
b) Official Trustee of the State
c) Insurer
d) Insured
18. Which of the following is NOT correct about Representation?
a) Need only be substantially correct
b) May not be part of policy
c) Must be strictly and literally true
d) Must be material to avoid contract
19. The year of income on which tax is levied is called the previous year.
a) True
b) False
20. As per Section 80CCD, deduction is allowed up to ________ of salary.
a) 5%
b) 7.5%
c) 10%
d) 12.5%
