IC02 (LICENTIATE) Practice of Life Insurance – 07

Q1.Whom can a policyholder approach if he/she is not satisfied with the award of the Insurance Ombudsman?
 Commerce Ministry
 Consumer Forum and Court of law
 Institute of Actuaries of India


Q2.At the end of the term of a policy, the maturity claim will be payable only if ____.
The insurance company is making profits
Life assured survives till the maturity date
Life assured survives till the maturity date and all premiums are paid till the maturity date
The life assured dies before the maturity date
All premiums are paid till the maturity date


Q3.Which of the foll statement(s) is/are correct? 1. Underwriting is a process that ensures that all insured share the same risk 2. The amount of bonus that vests are the same for all policies issued by an insurer 3. In an immediate annuity policy, the annuity payments begin within the first year of the policy
 All statements are correct
 All statements are incorrect
 Statement 1 and 2 are correct
 Statement 2 and 3 are correct
 Statement 1 and 3 are correct


Q4.Which of the following term does not match the other four ie. Find the odd one out?
 Early claims
Non-early claims
 Deed of assignment
Claimant’s statement


Q5.What can a favorably performing market contribute to?
 Increase in Net incurred claims
 Increase in Net earned premium
 Increase in Investment income
 Increase in Expenses of management
 All of the above


Q6.Why is a pension policy needed?
 Its a compulsion in the Income Tax laws
Due to the risk of dying
 Due to likely deterioration in employment
Due to the risk of living long
 Due to likely deterioration in health


Q7___ is the process of receiving a lump sum amount as a certain proportion of corpus on the vesting date and using the remaining amount to purchase an annuity for the annuitant.
 Super annuation


Q 8. What is the outcome of insurance churning?
 It gives a positive image to the insurance agents
 It gives a positive image to the insurance companies
 Agents get lower commissions due to churning
Policyholders is at a disadvantage due to surrender charges
Policyholders are at an advantage due to churning


Q9.If a policy is taken under the Married Women’s Property Act, it does not allow to ___.
 Complete an addendum
 Provide benefits to multiple parties
 Appoint a trustee
 Married man
 Have joint life policies for multiple parties


Q10.Life assurance is viewed as a ___ rather than a product for ____.
Compulsion, Investment
 Tax saving scheme, Investment
 Saving method, Protection against risk
 Investment, Future protection
 Long term saving, Investment

Click Here for Answer Key