IC38 - English Exam (Life Agent Exam) Mock Test 12
These questions cover important concepts in life and health insurance, including With-Profit plans, policy document provisions, proposal forms, term assurance, insurance advice, IRDAI guidelines, health insurance age limits, insurance agent regulations, buffer cover, and TPA services. With-Profit plans provide policyholders with a share in insurer-generated surpluses through bonuses in addition to guaranteed benefits. Proposal Forms collect important personal, financial, occupational, family, and health information for underwriting. Decreasing Term Assurance provides reducing protection, often linked to outstanding loans. The questions also examine agents’ responsibilities, insurers’ duties regarding proposal information, resignation procedures, family buffer coverage, and the scope of Third Party Administrator services.
Q1. What are With-Profit plans?
a) Plans that only offer a fixed benefit that is guaranteed at the beginning of the contract.
b) Plans that invest the pooled life funds as per regulatory norms.
c) Plans that offer a share in the surpluses (bonuses) generated by the insurer, in addition to a guaranteed sum assured.
d) Plans that are offered either under a linked platform or a non-linked platform.
Q2. What does the Policy document provide information about in relation to claims?
a) The obligations of the insured upon the occurrence of a claim event
b) The rights of the insurer in claim circumstances
c) Action to be taken by the insured upon the occurrence of a claim event
d) All of the above
Q3. What information is collected through the Proposal Form in life insurance?
a) Financial details of the proposer and their family members
b) Details of the proposer's occupation and income
c) Details of the proposer's family members, their longevity, health status, and ailments suffered by them
d) Information about the proposer's hobbies and interests
Q4. What is Decreasing Term Assurance?
a) A plan that provides an amount of death benefit that is equal to the balance due on a loan
b) A plan that provides a death benefit which increases along with the term of the policy
c) A plan that provides a lump sum amount on the death of the policyholder
d) A plan that provides a series of monthly, quarterly or similar periodical payments to the dependent beneficiaries.
Q5. What is the agent's responsibility when giving advice on the amount of insurance to be purchased?
a) To link the amount of insurance to the customer's income and paying capacity.
b) To recommend insuring where the risk can be managed otherwise.
c) To bear the risk if the premium payments are high compared to the loss involved.
d) To insure against the risk if the loss consequences are likely to be severe.
Q6. What is the duty of the insurer regarding the Proposal Form, according to IRDAI guidelines?
a) To decide whether to accept or reject the proposal based on the information provided
b) To keep the information confidential and not share it with any third party
c) To furnish a copy of the proposal to the insured within 30 days of its acceptance
d) To refund the proposal deposit within 15 days from the date of underwriting decision.
Q7. What is the maximum age limit for health insurance coverage and renewal?
a) 60 years old
b) 65 years old
c) 70 years old
d) It varies from company to company
Q8. What is the provision for resignation or surrender of appointment by an insurance agent according to the Regulations?
a) The agent is required to serve a notice period before resignation
b) The agent can resign or surrender appointment without any formalities
c) The agent is required to pay a penalty fee for resignation or surrender
d) The agent must submit a written application for resignation or surrender
Q9. What is the purpose of the buffer cover in relation to the family sum insured?
a) It replaces the family sum insured once it is exhausted
b) It provides coverage for non-medical expenses beyond the family sum insured
c) It offers coverage for routine medical expenses not covered by the family sum insured
d) It supplements the family sum insured by covering expenses exceeding it
Q10. What is the scope of TPA services in relation to insurance policies?
a) TPA services start during the sale and issue of the insurance policy.
b) TPA services are performed by an in-house team in the absence of TPAs.
c) TPA services are limited to after the sale and issue of the insurance policy.
d) TPA services are not applicable in the insurance industry.
