268 + Mcqs in Insurance Exam (LIFE) Page 5 McqOptions

201.	In Case of Presumption of Death of Life-Assured, Which One of the Following Documents, needs to be submitted, by the Nominee?
A.	Death-Certificate from Municipal Corporation.
B.	Decree from a Competent Court.
C.	Employer's Certificate
D.	Inquest-Report
Answer» C. Employer's Certificate

Discussion

202.	What is the Period, up to which, a Policy can be repudiated, by the Insurance Company, if, Material Facts presented by the Insured, in the Proposal, are False?
A.	Up To 15 Days
B.	Up To 6 Months
C.	Up To 1 Year
D.	Up To 3 Years
Answer» E.

Discussion

203.	In Case of a Policy, effected under Married Women's Property (M.W.P.) Act, the Policy-Monies shall be Payable to --.
A.	Trustee
B.	Appointee
C.	Assignee
D.	Nominee
Answer» B. Appointee

Discussion

204.	Key-Man Insurance is a Term Assurance Policy, where, the Sum-Assured is Linked to --.
A.	Business-Profitability of the Company
B.	Number of Employees
C.	Chief Executive Officer (C.E.O.)'s Personal Income
D.	Personal Incomes of All the Employees
Answer» B. Number of Employees

Discussion

205.	If a Policy-Holder wishes to File a Complaint with National Commission, then What is the Amount of Fees, Payable by Him or Her?
A.	Rupees 100/-.
B.	2.5% of the Claim- Amount or Rupees 500/- , Which-Ever is Lower.
C.	1% of the Claim-Amount.
D.	No Fees is Payable for filing Customer- Complaint with National Commission.
Answer» E.

Discussion

206.	Name the Policy, that combines Pure Life Assurance with a Savings-Element. If the Life-Assured lives upto Some Specified Time, then He or She receives the Policy's Face-Value.
A.	Mortgage-Redemption- Insurance Policy
B.	Increasing, Term Assurance Policy
C.	Decreasing, Term Assurance Policy
D.	Whole-Life Assurance Policy
Answer» E.

Discussion

207.	Who among the Following, is Likely to be Exposed to Health-Hazard, in His or Her Occupation?
A.	Yoga-Instructor
B.	Film-Stunt-Artist
C.	Dancer in a Night-Club
D.	Person, Exposed to Mining Dust
Answer» E.

Discussion

208.	Creating a Current Cash-Flow Statement and Balance- Sheet, help, with Which Step of the Financial Planning Process?
A.	Development of Financial Goals.
B.	Determining the Current Financial Position.
C.	Evaluating the Alternatives.
D.	Implementing a Financial Plan.
Answer» C. Evaluating the Alternatives.

Discussion

209.	Suggest a Good Time to Start the Financial Planning.
A.	Post-Retirement
B.	After Marriage
C.	On Receipt of First Salary
D.	During Childhood
Answer» D. During Childhood

Discussion

210.	What is the Term, used to refer to the Value of What You Own, Minus, the Value of What You Owe?
A.	Net-Worth
B.	Income-Statement
C.	Financial Plan
D.	Net Budget
Answer» B. Income-Statement

Discussion

211.	If a Customer is aggrieved, by an Order, made by the District Forum, then, Where can He or She, appeal against such Order?
A.	State Commission
B.	National Commission
C.	Ombudsman
D.	No Appeal can be made.
Answer» B. National Commission

Discussion

212.	What is involved in Future-Value Calculations? Choose the Most Appropriate Option.
A.	Discounting
B.	Compounding
C.	Internal Rate-of-Return
D.	Simple Interest
Answer» C. Internal Rate-of-Return

Discussion

213.	What happens in the Distribution-Phase of Retirement- Planning?
A.	Small Savings are made on a Regular Basis, to accumulate a Corpus.
B.	Corpus is Consolidated.
C.	Corpus is converted into Withdrawal or Annuities, for meeting the Income-Needs, Post- Retirement.
D.	High-Risk Investments are made.
Answer» D. High-Risk Investments are made.

Discussion

214.	Which One of the Following Documents, needs to be submitted, by the Nominee, in the Event of Natural Death of the Life-Assured? Choose the Most Appropriate Option.
A.	Inquest Report
B.	Death-Certificate
C.	Post-Mortem Report
D.	First Information Report (F.I.R.)
Answer» C. Post-Mortem Report

Discussion

215.	Which of the Following, are the Components, used to calculate the Gross Premium? I: Net Premium. II: Expense-Loading. III: Loading for Contingencies. IV: Bonus-Loading.
A.	I and II.
B.	II and III.
C.	I and IV.
D.	I, II, III, and IV.
Answer» E.

Discussion

216.	Which One of the Following, is, the Least Likely Way, that, You may benefit from Having an Understanding of Personal Finance?
A.	Becoming Director of a Large Bank.
B.	Making Your Own Financial Decisions.
C.	Becoming a Financial Planner.
D.	Assessing the Advice of Another Financial Planner.
Answer» B. Making Your Own Financial Decisions.

Discussion

217.	Which One of the Following, by Mutual Agreement of the Insured and the Insurer, can act as a Mediator and Counsellor, within the Terms of Reference, in Case of Dispute? Choose the Most Appropriate Option.
A.	Insurance Agent
B.	Ombudsman
C.	Insurer
D.	Insurance Broker
Answer» C. Insurer

Discussion

218.	The Free-Look Period of a Policy lasts for --- Days.
A.	15
B.	30
C.	45
D.	60
Answer» B. 30

Discussion

219.	Which One of the Following, can form the Basis for a Valid Consumer-Complaint?
A.	Shop-Keeper, Not Giving Any Discounts on the Product.
B.	Price, Charged by Shop- Keeper, is as per Maximum Retail Price (M.R.P.) on Package.
C.	Shop-Keeper fails to provide a Certain Product.
D.	The Goods, Bought by Consumer, suffers from One or More Defects.
Answer» E.

Discussion

220.	Which One of the Following, cannot form the Basis for a Valid Consumer-Complaint?
A.	Price, charged by Shop- Keeper, is in Excess of What is Displayed on the Package.
B.	The Goods, Bought by Consumer, suffers from One or More Defects.
C.	Shop-Keeper fails to provide a Certain Product.
D.	An Un-Fair Trade- Practice or Restrictive Trade-Practice has been adopted.
Answer» D. An Un-Fair Trade- Practice or Restrictive Trade-Practice has been adopted.

Discussion

221.	You are Paying a Higher Premium towards Your Life Assurance Policy, as compared to the Others. What Impact, will it have, on the Compensation-Paid, (as compared to the Others), to the Beneficiary, in the Event of Your Death?
A.	Compensation remains the Same.
B.	Compensation will be Higher.
C.	Compensation will be Lower.
D.	There will be No Compensation.
Answer» C. Compensation will be Lower.

Discussion

222.	Identify the Life Assurance Plan, where, the Premium is Payable throughout the Life of the Life-Assured.
A.	Whole-Life Assurance
B.	Endowment Assurance
C.	Annuity
D.	Money-Back Assurance
Answer» B. Endowment Assurance

Discussion

223.	Who among the Following, is Likely to be Exposed to Accidental Hazard, in His or Her Occupation? Choose the Most Appropriate Option.
A.	Medical-Professional
B.	Tourist-Guide
C.	Demolition-Experts
D.	Marketing-Executive, Who is regularly on the Field.
Answer» D. Marketing-Executive, Who is regularly on the Field.

Discussion

224.	A Life Assurance Company paid the Treatment Costs to the Insured, During the Event of Hospitalisation of the Insured, During the Policy-Term. This is an Example of --.
A.	Survival-Benefit Payments
B.	Surrender-Value
C.	Rider-Benefit
D.	Conditional Assignment
Answer» D. Conditional Assignment

Discussion

225.	Which One of the Following Consumer-Disputes- Redressal-Agencies, have the Powers of a Civil Court?
A.	District Forum
B.	State Commission
C.	National Commission
D.	All of the Above.
Answer» E.

Discussion

226.	Illustrate the Process involved in Ordinary Revival of Policy.
A.	Write a New Policy, whose Date-of- Commencement is Within Two Years of the Original Date-of- Commencement of the Lapsed Policy.
B.	Payment of Arrears, With Interest.
C.	Get a Loan on the Lapsed Policy, as a Consideration for Revival-Purposes.
D.	Pay the Premium- Arrears, in Instalments.
Answer» C. Get a Loan on the Lapsed Policy, as a Consideration for Revival-Purposes.

Discussion

227.	Which One of the Following Consumer-Disputes' Redressal-Agencies, has Supervisory Jurisdiction over State Commission?
A.	District Forum
B.	National Commission
C.	Ombudsman
D.	None of the Above.
Answer» C. Ombudsman

Discussion

228.	Illustrate the Computation, a Person would use, to Determine the Current Value of a Desired Amount, for the Future.
A.	Simple Interest
B.	Present Value of a Single Amount
C.	Future Value of a Single Amount
D.	Future Value of a Series of Deposits
Answer» C. Future Value of a Single Amount

Discussion

229.	Which One of the Following Consumer-Disputes Redressal-Agencies, entertains the Appeals from the District Forum?
A.	State Commission
B.	National Commission
C.	Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D.	No Appeal can be made.
Answer» B. National Commission

Discussion

230.	Examine the Following Options, and Identify the One, which is Not a Credit-Management Decision. Choose the Most Appropriate Option.
A.	Investing Money in a Bank-Deposit.
B.	Financing Your House with Mortgage.
C.	Paying the Utility-Bills, through Credit-Card.
D.	Securing a Home-Loan, to Buy a House.
Answer» B. Financing Your House with Mortgage.

Discussion

231.	Illustrate the First Step of Financial Planning Process.
A.	Develop the Financial Goals.
B.	Implement a Financial Plan.
C.	Analyse the Current Financial Situation.
D.	Evaluate and Revise the Actions.
Answer» D. Evaluate and Revise the Actions.

Discussion

232.	Name the Term, used to denote the Rise in the General Level of Prices of Goods and Services, in an Economy, Over a Period of Time. Choose the Most Appropriate Option.
A.	Hyper-Inflation
B.	Inflation
C.	Deflation
D.	Stagflation
Answer» C. Deflation

Discussion

233.	Why is, Cash in the Accumulation Account, Not Guaranteed, in Case of Variable Life Assurance Products?
A.	Money is invested in Government Debt.
B.	Money is invested in the Stocks, through Mutual Funds, where, there are No Guarantees.
C.	Money is used for Capital Expenditure.
D.	Money is used to service the Insurer's Debt.
Answer» C. Money is used for Capital Expenditure.

Discussion

234.	Identify a Product, that can be categorised under Contingency-Products. Choose the Most Appropriate Option.
A.	Bank Deposits
B.	Shares
C.	Bonds
D.	Life Assurance
Answer» E.

Discussion

235.	In Which Case, Does, a Company express the Bonus, as a Percentage of Basic Benefit and Already Attached Bonuses?
A.	Reversionary Bonus
B.	Compound Bonus
C.	Terminal Bonus
D.	Persistency Bonus
Answer» C. Terminal Bonus

Discussion

236.	Which One of the Following Consumer-Disputes' Redressal-Agencies, entertains the Appeals, against the Orders of Any State Commission?
A.	District Forum
B.	National Commission
C.	Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D.	No Appeal can be made.
Answer» C. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)

Discussion

237.	Which One of the Following Statements, is In-Correct, with Regard to Process of Filing a Complaint with a Consumer-Court?
A.	No One Else, Other Than the Complainant, Him-Self or Her-Self, can File a Complaint, with the State Commission or National Commission.
B.	There is No Fee, for Filing a Complaint with State Commission or National Commission.
C.	The Complaint can be filed Personally, or can even be sent by Post.
D.	No Advocate is Necessary for the Purpose of Filing a Complaint.
Answer» B. There is No Fee, for Filing a Complaint with State Commission or National Commission.

Discussion

238.	Insurance Regulatory and Development Authority of India (I.R.D.A.I.) has built, into its Regulations, a Consumer-Friendly Provision, called as, Free-Look Period. Describe the Same.
A.	A Free-Look Period provides a Window, to the Insured, where, He or She is Not Required to Pay the Premiums.
B.	A Free-Look Period provides a Window, to the Insured, where, He or She can Return the Policy, if He or She Does Not Like it.
C.	A Free-Look Period provides a Window, to the Insured, where He or She can Submit the Claims.
D.	A Free-Look Period provides a Window, to the Insured, where, He or She can Add the Nominations on the Policy.
Answer» C. A Free-Look Period provides a Window, to the Insured, where He or She can Submit the Claims.

Discussion

239.	As per Insurance Regulatory and Development Authority of India (I.R.D.A.I.) (Protection of Policy- Holders' Interests) Regulations, 2017, What is the Stipulated Period, within which, Claim under a Life Assurance Policy, shall be paid or shall be disputed, provided that, the Company has received All Relevant Papers?
A.	Within 15 Days
B.	Within 20 Days
C.	Within 30 Days
D.	Within 3 Months
Answer» D. Within 3 Months

Discussion

240.	Which One of the Following Statements, is In-Correct?
A.	Under Mutuality, the Funds of Various Individuals, are combined.
B.	Mutuality is also known as Pooling.
C.	Under Mutuality, We have the Funds flowing from One Source to Many.
D.	Mutuality provides Protection against the Economic Loss, arising as a Result of One s Un- Timely Death. This Loss is shouldered and addressed through having a Fund, that pools the Contributions of Many, Who have entered into the Life Assurance Contracts.
Answer» D. Mutuality provides Protection against the Economic Loss, arising as a Result of One s Un- Timely Death. This Loss is shouldered and addressed through having a Fund, that pools the Contributions of Many, Who have entered into the Life Assurance Contracts.

Discussion

241.	An Applicant, seeking an Appointment as an Insurance Agent of an Insurer, shall submit an Application in Form: --, to the --- of the Insurer.
A.	I-A, Designated Official
B.	A.I-A, Appellate Officer
C.	I-B, Designated Official
D.	I-B, Appellate Officer
Answer» B. A.I-A, Appellate Officer

Discussion

242.	Analyse the Following Two Statements, and Determine the True One(s): Statement-I: The Contingent-Event occurs Certainly, in Case of General Insurance. Statement-II: The Contingent-Event occurs Certainly, in Case of Life Assurance.
A.	Statement-I is True.
B.	Statement-II is True.
C.	Statement-I and Statement-II are True.
D.	Statement-I and Statement-II are False.
Answer» C. Statement-I and Statement-II are True.

Discussion

243.	Describe the Purpose of Tax-Planning. Choose the Most Appropriate Option.
A.	Tax-Evasion
B.	Planning Your Investments, in a Manner, such that, Maximum Benefits are Applicable.
C.	Provide for Taxes.
D.	Pay Tax, On Time.
Answer» C. Provide for Taxes.

Discussion

244.	Mr. Kapil had taken Insurance-Cover of Rupees 50 Lakhs, for a Period of 25 Years. Mr. Kapil dies in a Car- Accident, during the Policy-Term, and the Company pays the Sum-Assured Plus Accumulated Bonuses, to His Nominee. Which Type of Claim, was paid by the Insurance Company?
A.	Maturity-Claim
B.	Death-Claim
C.	Rider-Benefit
D.	Survival-Benefit
Answer» C. Rider-Benefit

Discussion

245.	Ms. Prajakta earns Rupees 2,40,000/-, Per Annum. She spends Rupees 1 Lakh, Per Annum, on Her-Self. The Market Rate-of-Interest is 7%. Calculate Ms. Prajakta's Life Assurance Amount, through the Human Life Value (H.L.V.) Method.
A.	Rupees 15 Lakhs.
B.	Rupees 20 Lakhs.
C.	Rupees 10 Lakhs.
D.	Rupees 24 Lakhs.
Answer» C. Rupees 10 Lakhs.

Discussion

246.	Which One of the Following Acts, makes the Provision for the Establishment of Consumer-Councils and Other Authorities for the Settlement of Consumer s Disputes, in India?
A.	Insurance Act, 1938.
B.	Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999.
C.	Banking Regulation Act, 1949.
D.	Consumer Protection (Amendment) Act, 2002.
Answer» E.

Discussion

247.	A Policy is effected under Married Women's Property (M.W.P.) Act. If the Policy-Holder does not appoint a Special Trustee to receive and administer the Benefits under the Policy, the Sum, secured under the Policy, becomes Payable to --.
A.	Next of Kin
B.	Official Trustee of the State
C.	Insurer
D.	Insured
Answer» C. Insurer

Discussion

248.	Illustrate the Purpose of Having the Capital-Adequacy Norms for the Insurers.
A.	To Increase the Net Interest Income.
B.	To Increase the Profitability.
C.	To Maintain the Sufficient Reserves, to Address the Present Needs and Future Needs.
D.	To Subsidise the Insurance, for the Poor People.
Answer» D. To Subsidise the Insurance, for the Poor People.

Discussion

249.	Ms. Kavita purchases a Critical Illness (C.I.) Rider, along with, a Term Assurance Plan, from ABC Insurance Company. How Will, the Company ascertain the Claim for the Critical Illness (C.I.) Rider? Choose the Most Appropriate Option.
A.	Claim will be ascertained, as per the Conditions, stipulated in the Policy.
B.	Claim will be ascertained, based on the Dates, which are determined, at the Beginning of the Contract, it-self.
C.	Claim will occur, when the Policy-Holder decides to cancel the Contract.
D.	Claims will be ascertained, based on the Medical and Other Records, provided by the Policy-Holder, in Support of Her Claim.
Answer» E.

Discussion

250.	Why Do, Insurers need Material Information?
A.	For Documentation Purposes.
B.	Decide on the Risk- Acceptance, and the Terms and Conditions, Associated.
C.	To Comply with the Regulatory Requirements.
D.	To Improve the Customer-Service.
Answer» C. To Comply with the Regulatory Requirements.

Discussion

Explore topic-wise MCQs in Uncategorized topics.

In Case of Presumption of Death of Life-Assured, Which One of the Following Documents, needs to be submitted, by the Nominee?

What is the Period, up to which, a Policy can be repudiated, by the Insurance Company, if, Material Facts presented by the Insured, in the Proposal, are False?

In Case of a Policy, effected under Married Women's Property (M.W.P.) Act, the Policy-Monies shall be Payable to --.

Key-Man Insurance is a Term Assurance Policy, where, the Sum-Assured is Linked to --.

If a Policy-Holder wishes to File a Complaint with National Commission, then What is the Amount of Fees, Payable by Him or Her?

Name the Policy, that combines Pure Life Assurance with a Savings-Element. If the Life-Assured lives upto Some Specified Time, then He or She receives the Policy's Face-Value.

Who among the Following, is Likely to be Exposed to Health-Hazard, in His or Her Occupation?

Creating a Current Cash-Flow Statement and Balance- Sheet, help, with Which Step of the Financial Planning Process?

Suggest a Good Time to Start the Financial Planning.

What is the Term, used to refer to the Value of What You Own, Minus, the Value of What You Owe?

If a Customer is aggrieved, by an Order, made by the District Forum, then, Where can He or She, appeal against such Order?

What is involved in Future-Value Calculations? Choose the Most Appropriate Option.

What happens in the Distribution-Phase of Retirement- Planning?

Which One of the Following Documents, needs to be submitted, by the Nominee, in the Event of Natural Death of the Life-Assured? Choose the Most Appropriate Option.

Which of the Following, are the Components, used to calculate the Gross Premium? I: Net Premium. II: Expense-Loading. III: Loading for Contingencies. IV: Bonus-Loading.

Which One of the Following, is, the Least Likely Way, that, You may benefit from Having an Understanding of Personal Finance?

Which One of the Following, by Mutual Agreement of the Insured and the Insurer, can act as a Mediator and Counsellor, within the Terms of Reference, in Case of Dispute? Choose the Most Appropriate Option.

The Free-Look Period of a Policy lasts for --- Days.

Which One of the Following, can form the Basis for a Valid Consumer-Complaint?

Which One of the Following, cannot form the Basis for a Valid Consumer-Complaint?

You are Paying a Higher Premium towards Your Life Assurance Policy, as compared to the Others. What Impact, will it have, on the Compensation-Paid, (as compared to the Others), to the Beneficiary, in the Event of Your Death?

Identify the Life Assurance Plan, where, the Premium is Payable throughout the Life of the Life-Assured.

Who among the Following, is Likely to be Exposed to Accidental Hazard, in His or Her Occupation? Choose the Most Appropriate Option.

A Life Assurance Company paid the Treatment Costs to the Insured, During the Event of Hospitalisation of the Insured, During the Policy-Term. This is an Example of --.

Which One of the Following Consumer-Disputes- Redressal-Agencies, have the Powers of a Civil Court?

Illustrate the Process involved in Ordinary Revival of Policy.

Which One of the Following Consumer-Disputes' Redressal-Agencies, has Supervisory Jurisdiction over State Commission?

Illustrate the Computation, a Person would use, to Determine the Current Value of a Desired Amount, for the Future.

Which One of the Following Consumer-Disputes Redressal-Agencies, entertains the Appeals from the District Forum?

Examine the Following Options, and Identify the One, which is Not a Credit-Management Decision. Choose the Most Appropriate Option.

Illustrate the First Step of Financial Planning Process.

Name the Term, used to denote the Rise in the General Level of Prices of Goods and Services, in an Economy, Over a Period of Time. Choose the Most Appropriate Option.

Why is, Cash in the Accumulation Account, Not Guaranteed, in Case of Variable Life Assurance Products?

Identify a Product, that can be categorised under Contingency-Products. Choose the Most Appropriate Option.

In Which Case, Does, a Company express the Bonus, as a Percentage of Basic Benefit and Already Attached Bonuses?

Which One of the Following Consumer-Disputes' Redressal-Agencies, entertains the Appeals, against the Orders of Any State Commission?

Which One of the Following Statements, is In-Correct, with Regard to Process of Filing a Complaint with a Consumer-Court?

Insurance Regulatory and Development Authority of India (I.R.D.A.I.) has built, into its Regulations, a Consumer-Friendly Provision, called as, Free-Look Period. Describe the Same.

Which One of the Following Statements, is In-Correct?

An Applicant, seeking an Appointment as an Insurance Agent of an Insurer, shall submit an Application in Form: --, to the --- of the Insurer.

Analyse the Following Two Statements, and Determine the True One(s): Statement-I: The Contingent-Event occurs Certainly, in Case of General Insurance. Statement-II: The Contingent-Event occurs Certainly, in Case of Life Assurance.

Describe the Purpose of Tax-Planning. Choose the Most Appropriate Option.

Mr. Kapil had taken Insurance-Cover of Rupees 50 Lakhs, for a Period of 25 Years. Mr. Kapil dies in a Car- Accident, during the Policy-Term, and the Company pays the Sum-Assured Plus Accumulated Bonuses, to His Nominee. Which Type of Claim, was paid by the Insurance Company?

Ms. Prajakta earns Rupees 2,40,000/-, Per Annum. She spends Rupees 1 Lakh, Per Annum, on Her-Self. The Market Rate-of-Interest is 7%. Calculate Ms. Prajakta's Life Assurance Amount, through the Human Life Value (H.L.V.) Method.

Which One of the Following Acts, makes the Provision for the Establishment of Consumer-Councils and Other Authorities for the Settlement of Consumer s Disputes, in India?

A Policy is effected under Married Women's Property (M.W.P.) Act. If the Policy-Holder does not appoint a Special Trustee to receive and administer the Benefits under the Policy, the Sum, secured under the Policy, becomes Payable to --.

Illustrate the Purpose of Having the Capital-Adequacy Norms for the Insurers.

Ms. Kavita purchases a Critical Illness (C.I.) Rider, along with, a Term Assurance Plan, from ABC Insurance Company. How Will, the Company ascertain the Claim for the Critical Illness (C.I.) Rider? Choose the Most Appropriate Option.

Why Do, Insurers need Material Information?