IC02 (LICENTIATE) Practice of Life Insurance – 09

Q1.Section __ of the Insurance Act 1938 states that All policies which have been in force for at least 3 years will be entitled to receive a guaranteed surrender value.


Q2.Annuities are basically the same as ___.


Q3.The rider premium for accidental death benefit must not exceed __.
10% of the base policy premium
20% of the base policy premium
25% of the base policy premium
50% of the base policy premium
 There is no such allocation


Q 4.As per __ of the Insurance Act 1938, insurance agents cannot offer rebates on whole or part of their commission.
 Section 41
 Section 42
 Section 43
 Section 44
 Section 45


Q5.Mr. X, a policyholder requests his insurance agent for guidance on submitting a claim for a maturity benefit on his life insurance policy. The agent declined this request as he was very busy. Consequently, this action is deemed to be a breach of __.
 Code of conduct prescribed by AMFI
 Code of conduct prescribed by LIC of India
 Code of conduct prescribed by IRDAI
 Code of conduct prescribed by Insurance Council
 Membership rules of Insurance brokers association of India


Q6.Compensation for injury or death caused to any person, other than a workman or property, occurring while handling hazardous substances is covered under which act?
 The Carriage by air act
 The Railways claim tribunal act
 The Carriers act
 Public Liability insurance act
Workmen’s Compensation act


Q 7. The surrender value of an insurance policy is a percentage of the ____.
 Issued Value
Paid-up Value
 Sum Assured
 Final Value
 Collected Premium


Q8.The schedule of a policy document does not contain which of these dates?
 Date of proposal
 Date of maturity
 Date of commencement
 Nominee date of birth
The date on which the last premium is to be paid


Q9.With respect to Unit linked insurance policies, which of the following statement(s) is/are correct? a) It can be surrendered after 3 years b) It does not have a secured timeline c) The insurance cover must be a minimum multiple of the premium
 Only statement (a) is correct
 Only statement (b) is correct
 Only statement (c) is correct
 Both (a) and (b) are correct
 Both (a) and (c) are correct


Q10.What does the mortality table contain?
 Number of deaths of different ages
 Underwriters calculation of death
 Number of births
 Percentage of death rate as per age bracket
 Statistical probabilities of death

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