IC02 (LICENTIATE) Practice of Life Insurance – 08

Q1.Which of the foll statement(s) is TRUE?
 If there is any submission of error while taking a policy, it will not be the fault of the agent
If the insurance policy does not meet the proposers need then the agent will be at fault
It is the agent’s duty to see that the proposed policy meets the needs of the prospect
 Both 1 and 2 are correct
 Both 2 and 3 are correct

 

Q 2.A change in __ will be a reason due to which the insurance companies can increase the premium amount.
 IRDA rules
 Company rules
 Mortality rates
 Foreign exchange rates
 Inflation

 

Q3.What is NOT true about a Mutual Insurance Co?
It has stockholders and it operates to earn a profit
Surplus is distributed to policyholders as a reduction in premium
 It is owned by the policyholders
It’s a cooperative organization
Policyholders money is invested as per guidelines

 

Q 4.Which of the foll statement(s) is/are correct if a death claim is made in September 2010 under a life assurance policy commenced in April 2005?
 The death claim cannot be treated as an early claim
 Foul play must be suspected
 Sec 45 of the Insurance Act 1938 will not apply
 All above statements are correct
 None of the above

 

Q5.What is an insurance firm known as which is owned by the policyholders?
 Client Insurance Company
 Subscribers Assurance Co-operative
 Mutual insurance company
 Stock insurance company
 Re-insurance company

 

Q6.What should be studied while evaluating a Unit linked insurance plan? 1. Number of free withdrawals 2. Amount in the policy fund 3. The amount of risk cover 4. The amount of fixed funds that can be withdrawn
Only statements 1, 3 and 4
Only statements 1, 2 and 4
Only statements 1, 2 and 3
Only statements 2, 3 and 4
 All statements

 

Q7.If the life insurance policy has a ‘dividend option’ it gives the policyholder the right to do all the following except ____.
Purchase additional paid-up insurance
 Purchase stock in the company at lower rates than market price
 Use the surplus amount to pay premiums of other policies
 Apply dividends towards premium payments
 Leave the dividends with the company to earn interest

 

Q8.Who does the pricing of an insurance policy scheme ie. the premium etc?
 Agents
 SEBI
 Insurance Councils
 Insurance Companies
 IRDA

 

Q9.Which type of plan offers payment of part of the sum assured at intervals during the term of the policy?
 Retirement Planning
 ULIPs
ELSE
 Endowment
 Money back

 

Q10.Which of these offers life insurance protection and also the benefit of equity investments?
ELSE
CLIP
 Sectoral Fund
 GSLI
 None of the above

Click Here for Answer Key