851 + Mcqs in Life Insurance Corporation(LIC)

1.	The limit of the National Consumer Disputes Commission is
A.	s. 75 lakh
B.	s. 100 lakh
C.	s. 150 lakh
D.	o limit
Answer» E.

Discussion

2.	While prospecting for selling insurance, approaching the members of a caste or community association will be classified under which of the following?
A.	mmediate group
B.	atural market
C.	enters of influence
D.	eferences and introductions
Answer» C. enters of influence

Discussion

3.	While distributing surplus, care has to be taken for
A.	olvency requirements
B.	ncreasing free assets
C.	oth A & B
D.	one of the above
Answer» D. one of the above

Discussion

4.	Which of the following is not a phase in retirement planning?
A.	ccumulation
B.	nflation
C.	onservation
D.	istribution
Answer» C. onservation

Discussion

5.	Which actuarial aspect(s) are taken into account while fixing the premium?I. MortalityII. Interest assumptionIII. Office expenses
A.	nly I
B.	nly I and II
C.	nly I, II and III
D.	nly II and III
Answer» B. nly I and II

Discussion

6.	A policy can be surrendered only if it has acquired
A.	egal value
B.	oney value
C.	olicy value
D.	aid-up value
Answer» E.

Discussion

7.	Which of the following statements are correct?i. The sum assured under group insurance is not fixed by the individual member.ii. A person whose proposal is declined under individual scheme can get insurance under group policy.
A.	tatement i is correct
B.	tatement ii is correct
C.	oth statements are correct
D.	one of the three
Answer» B. tatement ii is correct

Discussion

8.	In group insurance, risk of individuals is not assessed.
A.	RUE
B.	ALSE
C.	artly true
D.	artly false
Answer» B. ALSE

Discussion

9.	Section 45 of Insurance Act, 1938 speaks about rejecting a claim after _________ of taking a policy.
A.	year
B.	years
C.	years
D.	years
Answer» C. years

Discussion

10.	In a money back plan, what is the maturity claim payable?
A.	um insured
B.	um insured less survival benefits paid already
C.	onuses
D.	othing is payable
Answer» C. onuses

Discussion

11.	What are the charges in a ULIP?
A.	olicy Allocation Charge
B.	ortality charge
C.	oth A & B
D.	one of the above
Answer» D. one of the above

Discussion

12.	The sum insured under a health insurance policy would primarily depend on the
A.	ge
B.	ealth condition
C.	ffordability
D.	ncome
Answer» B. ealth condition

Discussion

13.	From the below given age proof documents, identify the one which is classified as non-standard by insurance companies.
A.	chool certificate
B.	dentity card in case of defence personnel
C.	ation card
D.	ertificate of baptism
Answer» D. ertificate of baptism

Discussion

14.	Bank deposit addresses which type of need?
A.	ncertainties
B.	ealth creation
C.	avings
D.	ontingencies
Answer» D. ontingencies

Discussion

15.	In respect of nomination, which of the following statements are correct?
A.	ore than one person can be nominated
B.	omination can be done either at the time of commencement or later
C.	omination can be changed by making an endorsement
D.	ll of the above
Answer» E.

Discussion

16.	What is the meaning of the term non-medical underwriting?
A.	aking health insurance
B.	uying a medical insurance without medical exam
C.	uying a life insurance without medical exam
D.	one of the three
Answer» D. one of the three

Discussion

17.	Which of the following cannot be categorised under risk?
A.	ying too young
B.	ying too early
C.	atural wear and tear
D.	iving with disability
Answer» D. iving with disability

Discussion

18.	Risk transfer means
A.	nsuring with an insurance company
B.	nsuring with an insurance company
C.	nsuring with the owner of the company
D.	isk retention
Answer» B. nsuring with an insurance company

Discussion

19.	Savings is a composite of which of the following decisions?
A.	ostponement of consumption
B.	arting with liquidity
C.	oth A & B
D.	one of the three
Answer» D. one of the three

Discussion

20.	Which special feature of Unit Linked Policy allowed change from one fund to another?
A.	ransfer
B.	witching
C.	ssignment
D.	oan
Answer» C. ssignment

Discussion

21.	What is the special feature of a Family Floater policy?
A.	he total sum insured floats amongst the family members
B.	usband/wife, children and parents/parents-in-law can be covered
C.	oth A & B
D.	one of the three
Answer» D. one of the three

Discussion

22.	Which of the following statements best describes an ordinary annuity?
A.	qual cash flows at equal time intervals forever
B.	qual cash flows at equal time intervals for a specific time period
C.	umpy cash flows at equal time intervals forever
D.	umpy cash flows at equal time intervals for a specific time period
Answer» C. umpy cash flows at equal time intervals forever

Discussion

23.	In which type of products were protection and saving elements separated?
A.	raditional cash value plans
B.	on-traditional plans
C.	oth A & B
D.	one of the above
Answer» C. oth A & B

Discussion

24.	In ULIPs, the result of policy allocation charge would be that _________ amount would be allocated for investment in units.
A.	ore
B.	ess
C.	igh
D.	ny of the above
Answer» C. igh

Discussion

25.	Which is true of Current Money method of dividend payment?
A.	eturns depend on when the investment was made
B.	ifferent investment blocks get different returns
C.	t is also called segmented or investment block method
D.	ll of the above
Answer» E.

Discussion

26.	Which of the following is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people?
A.	oung people are mostly dependent
B.	ld people can afford to pay more
C.	ortality is related to age
D.	ortality is inversely related to age
Answer» D. ortality is inversely related to age

Discussion

27.	If the proponent has no insurable interest in the insured, the underwriter will
A.	ccept with reduced sum assured
B.	eject the proposal
C.	ccept with lien
D.	ccept with extra premium
Answer» B. eject the proposal

Discussion

28.	What does a premium depend upon?
A.	he place of worship visited by the person to be insured
B.	he state of health of the policyholder
C.	he decision of the underwriter
D.	he report of the agent
Answer» D. he report of the agent

Discussion

29.	The reason for charging level premiums is
A.	isk increases as age increases
B.	t is convenient to the policyholder
C.	t is convenient to the insurer
D.	ll of the above
Answer» E.

Discussion

30.	A valuation is done by a life insurer because
A.	t is a statutory requirement
B.	t is necessary to be able to declare dividends to shareholders
C.	t tells the insurer how well it is managing the business
D.	ll of the above
Answer» E.

Discussion

31.	Retention of risk may be done conveniently by
A.	arge corporations
B.	mall companies
C.	ingle individuals
D.	one of the three
Answer» B. mall companies

Discussion

32.	Which is the right time for taking life insurance?
A.	hen you are about to get married
B.	oon after you have got married
C.	ust when you are joined a new job
D.	ll of the above
Answer» E.

Discussion

33.	The insurable interest of a mortgagor in the mortgage’s life is equal to the amount of
A.	riginal loan
B.	utstanding loan plus interest
C.	utstanding loan
D.	nstallment due to be repaid within the next one year
Answer» B. utstanding loan plus interest

Discussion

34.	_________ may deal with more than one life insurance company or general insurance company or both.
A.	n agent
B.	surveyor
C.	composite agent
D.	one of the three
Answer» D. one of the three

Discussion

35.	Why does an officer conduct special enquiry in the case of death claim which arose after 4 years?
A.	n suspicion of suppression of facts
B.	s a precaution
C.	s a routine
D.	or large sum assured
Answer» B. s a precaution

Discussion

36.	In respect of payment of Reversionary Bonuses, which of the following is incorrect?
A.	ayable on maturity
B.	ayable on death
C.	oth A & B
D.	ayable at any time during the term of a policy
Answer» D. ayable at any time during the term of a policy

Discussion

37.	Which one of the following statements is true with regard to Children’s policies?
A.	n vesting, the insured person has an option to change the term of the policy
B.	n vesting the insured person has an option to increase the SA
C.	oth the statements above are wrong
D.	oth the statements above are correct
Answer» D. oth the statements above are correct

Discussion

38.	Who devised the concept of HLV?
A.	r. Martin Luther King
B.	arren Buffet
C.	rof. Hubener
D.	eorge Soros
Answer» D. eorge Soros

Discussion

39.	Which of the below option best describes the process of insurance?
A.	haring the losses of many by a few
B.	haring the losses of few by many
C.	ne sharing the losses of few
D.	haring of losses through subsidy
Answer» C. ne sharing the losses of few

Discussion

40.	Origins of modern insurance business can be traced to _________.
A.	ottomry
B.	loyds
C.	hodes
D.	alhotra Committee
Answer» C. hodes

Discussion

41.	By transferring risk to insurer, it becomes possible _________.
A.	o become careless about our assets
B.	o make money from insurance in the event of a loss
C.	o ignore the potential risks facing our assets
D.	o enjoy peace of mind and plan one’s business more effectively
Answer» E.

Discussion

42.	The measures to reduce chances of occurrence of risk are known as _________.
A.	isk retention
B.	oss prevention
C.	isk transfer
D.	isk avoidance
Answer» C. isk transfer

Discussion

43.	A policy taken with critical illness rider benefit is being assigned. Which type of assignment would suit the intended purpose because if the life insured is diagnosed with a critical illness, he only should receive the critical illness rider claim?
A.	bsolute assignment
B.	onditional assignment
C.	oan assignment
D.	ollateral assignment
Answer» C. oan assignment

Discussion

44.	IRDA has prescribed the design and content of a proposal form through
A.	RDA (Licensing of Agents) Regulations, 2000
B.	RDA (Protection of Policyholders' Interests) Regulations, 2002
C.	RDA (Standard Proposal Form for Insurance) Regulations, 2013
D.	ll of the above
Answer» D. ll of the above

Discussion

45.	Before the composite licence could be renewed, the applicant needs to undergo renewal training of _________ from an approved institution.
A.	5 hours
B.	0 hours
C.	5 hours
D.	5 hours
Answer» D. 5 hours

Discussion

46.	State the correct option.
A.	n a policy document, it is now compulsory to indicate the address of the local Ombudsman
B.	ddress of the insured is optional in the policy document
C.	he address of the IRDA is also necessarily shown in the policy document
D.	ither the local Ombudsman's address or that of the IRDA needs to be shown in the policy
Answer» B. ddress of the insured is optional in the policy document

Discussion

47.	Who bears the investment risk in a fixed benefit annuity?
A.	nsurer
B.	nsured
C.	tate
D.	isk pool
Answer» B. nsured

Discussion

48.	Identify the correct option(s).
A.	evival of a lapsed policy is subject to certain conditions as set out by the underwriter
B.	evival of a lapsed policy cannot increase the risk for the insurer
C.	resh medical examination report is not always required for revival of a lapsed policy
D.	ll of the above
Answer» E.

Discussion

49.	When would special reports be necessary?
A.	hen high sum insured is proposed
B.	hen age is advanced
C.	oth A & B
D.	pecial reports are not necessary in any case
Answer» D. pecial reports are not necessary in any case

Discussion

50.	Which of the following are true?I. Insurance is necessary to cover the risk of living too long.II. Insurance helps one to be less dependent on others.
A.	nly I
B.	nly II
C.	oth I and II
D.	either I nor II
Answer» B. nly II

Discussion

Explore topic-wise MCQs in Life Insurance Corporation(LIC).

The limit of the National Consumer Disputes Commission is

While prospecting for selling insurance, approaching the members of a caste or community association will be classified under which of the following?

While distributing surplus, care has to be taken for

Which of the following is not a phase in retirement planning?

Which actuarial aspect(s) are taken into account while fixing the premium?I. MortalityII. Interest assumptionIII. Office expenses

A policy can be surrendered only if it has acquired

Which of the following statements are correct?i. The sum assured under group insurance is not fixed by the individual member.ii. A person whose proposal is declined under individual scheme can get insurance under group policy.

In group insurance, risk of individuals is not assessed.

Section 45 of Insurance Act, 1938 speaks about rejecting a claim after _________ of taking a policy.

In a money back plan, what is the maturity claim payable?

What are the charges in a ULIP?

The sum insured under a health insurance policy would primarily depend on the

From the below given age proof documents, identify the one which is classified as non-standard by insurance companies.

Bank deposit addresses which type of need?

In respect of nomination, which of the following statements are correct?

What is the meaning of the term non-medical underwriting?

Which of the following cannot be categorised under risk?

Risk transfer means

Savings is a composite of which of the following decisions?

Which special feature of Unit Linked Policy allowed change from one fund to another?

What is the special feature of a Family Floater policy?

Which of the following statements best describes an ordinary annuity?

In which type of products were protection and saving elements separated?

In ULIPs, the result of policy allocation charge would be that _________ amount would be allocated for investment in units.

Which is true of Current Money method of dividend payment?

Which of the following is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people?

If the proponent has no insurable interest in the insured, the underwriter will

What does a premium depend upon?

The reason for charging level premiums is

A valuation is done by a life insurer because

Retention of risk may be done conveniently by

Which is the right time for taking life insurance?

The insurable interest of a mortgagor in the mortgage’s life is equal to the amount of

_________ may deal with more than one life insurance company or general insurance company or both.

Why does an officer conduct special enquiry in the case of death claim which arose after 4 years?

In respect of payment of Reversionary Bonuses, which of the following is incorrect?

Which one of the following statements is true with regard to Children’s policies?

Who devised the concept of HLV?

Which of the below option best describes the process of insurance?

Origins of modern insurance business can be traced to _________.

By transferring risk to insurer, it becomes possible _________.

The measures to reduce chances of occurrence of risk are known as _________.

A policy taken with critical illness rider benefit is being assigned. Which type of assignment would suit the intended purpose because if the life insured is diagnosed with a critical illness, he only should receive the critical illness rider claim?

IRDA has prescribed the design and content of a proposal form through

Before the composite licence could be renewed, the applicant needs to undergo renewal training of _________ from an approved institution.

State the correct option.

Who bears the investment risk in a fixed benefit annuity?

Identify the correct option(s).

When would special reports be necessary?

Which of the following are true?I. Insurance is necessary to cover the risk of living too long.II. Insurance helps one to be less dependent on others.