IC38 - English Exam (Life Agent Exam) Mock Test 01

Q1. Which among the following cannot be an element in a valid insurance contract?

a) Offer and Acceptance
b) Coercion
c) Consideration
d) Legality

Q2. How are the exclusions in group policies different from individual policies?

a) Group policies have more comprehensive exclusions
b) Group policies have fewer exclusions
c) Group policies have identical exclusions
d) Group policies have different exclusions tailored for the group's requirements

Q3. How does the speed of processing in non-medical underwriting policies compare to traditional policies?

a) Processing delays are longer in non-medical underwriting policies
b) Processing time is the same for both types of policies
c) Non-medical underwriting policies offer faster processing
d) The processing time depends on the sum assured chosen by the applicant

Q4. If the mortality rate for age 35 is 0.0035, what does it imply?

a) 35 out of 1000 people are expected to die between age 35 and 36
b) 0.0035% of the population will die at age 35
c) 3.5 people out of 1000 will die at age 35
d) 35 people out of 10,000 will die between age 35 and 36

Q5. What are lifestyle factors that can influence an individual's health?

a) Environmental conditions and pollution
b) Genetic predisposition to diseases
c) Exercising, eating well, and managing stress
d) Access to healthcare facilities and services

Q6. What does body language refer to?

a) Only movements
b) Only facial expressions
c) Gestures and facial expressions
d) Talking and walking

Q7. What happens if a claim is ready for payment but the payment cannot be made due to proper identification of the payee?

a) The claim amount is forfeited by the insurer
b) The claim amount is transferred to a different payee
c) The claim amount is held by the insurer for the benefit of the payee and earns interest
d) The claim amount is refunded to the policyholder

Q8. What is a pension plan?

a) A fund into which money is drawn to support the person after his retirement from work in the form of periodic payments
b) A fund into which money is paid during a person’s employment years and from which money is drawn to support the person after his retirement from work in the form of periodic payments
c) A fund into which money is invested for a fixed term
d) A fund into which money is invested for a variable term

Q9. What is pure premium?

a) Premium sufficiently big enough to pay for losses only
b) Premium applicable to marginal members of the society
c) Premium after loading for administrative costs
d) Premium derived from the most recent loss experience period

Q10. What is the importance of financial planning?

a) Only to save for the future
b) To invest all savings in high-risk assets
c) To plan for future needs and invest in appropriate assets
d) To spend all money on present needs