MCQOPTIONS
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MCQOPTIONS
This section includes 851 Mcqs, each offering curated multiple-choice questions to sharpen your Life Insurance Corporation(LIC) knowledge and support exam preparation. Choose a topic below to get started.
| 451. |
The person who makes the offer is called the _________ and the person who accepts the offer in an insurance contract is called the _________ |
| A. | fferer, Acceptor |
| B. | nsurer, Insured |
| C. | roposer, Insured |
| D. | roposer, Insurer |
| Answer» E. | |
| 452. |
Which of the following is incorrect?A. Mutuality means funds from various individuals are combinedB. Diversification means spreading out funds to various destinations. |
| A. | is correct |
| B. | is correct |
| C. | oth A & B |
| D. | one of the above |
| Answer» E. | |
| 453. |
Life insurance policy, in general, is a mixture of |
| A. | rotection and security |
| B. | nsurance and Assurance |
| C. | rotection and Savings |
| D. | rotection and Tax relief |
| Answer» D. rotection and Tax relief | |
| 454. |
Which of the following is correct?A. Life insurance is a long term contractB. General insurance is a short term contract |
| A. | is correct |
| B. | is correct |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 455. |
With increase in premium with age, healthy people tended to withdraw leaving unhealthy people. This lead to development of |
| A. | ross premiums |
| B. | ingle premiums |
| C. | dvance premiums |
| D. | evel premiums |
| Answer» E. | |
| 456. |
How life insurance is possible? |
| A. | iming of death is certain |
| B. | iming of death is uncertain |
| C. | eath is certain but its timing is uncertain |
| D. | one of the above |
| Answer» D. one of the above | |
| 457. |
In which type of contract, the happening of event is certain but its timing is not known? |
| A. | ife Insurance |
| B. | eneral Insurance |
| C. | oth A & B |
| D. | one of the above |
| Answer» B. eneral Insurance | |
| 458. |
Which is not a contract of indemnity? |
| A. | ersonal Accident |
| B. | ire |
| C. | arine |
| D. | otor |
| Answer» B. ire | |
| 459. |
Life Insurance covers the risk of - |
| A. | ying too early |
| B. | iving too longer |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 460. |
HLV concept helps to determine the _________ limit beyond which life insurance could be speculative. |
| A. | pper |
| B. | ower |
| C. | iddle |
| D. | ll of the above |
| Answer» B. ower | |
| 461. |
As per HLV concept, the amount of insurance one can buy could be _________ times of one’s annual income. |
| A. | to 10 times |
| B. | 0 to 15 times |
| C. | 5 to 50 times |
| D. | 0 to 100 times |
| Answer» C. 5 to 50 times | |
| 462. |
Human Life Value can be arrived at by dividing by_________ |
| A. | ross earnings, Rate of interest |
| B. | et earnings, Gross earnings |
| C. | ross earnings, Net earnings |
| D. | et earnings, Rate of interest |
| Answer» E. | |
| 463. |
Human Life Value concept measures the value of a human life on the basis of his |
| A. | ross earnings |
| B. | et earnings |
| C. | otal earnings |
| D. | xpenses |
| Answer» C. otal earnings | |
| 464. |
Which is not an example of social security schemes of the Government? |
| A. | ajeev Gandhi Equity Scheme |
| B. | anata Personal Accident |
| C. | an Arogya Scheme |
| D. | mployees State Insurance Corporation |
| Answer» B. anata Personal Accident | |
| 465. |
Providing social security is the obligation of _________ |
| A. | tate |
| B. | nsurance companies |
| C. | rivate companies |
| D. | ndividuals |
| Answer» B. nsurance companies | |
| 466. |
In Variable insurance policies, the policy reserve form part of a _________ |
| A. | pecial investment account |
| B. | eneral investment account |
| C. | oth A & B |
| D. | one of the above |
| Answer» B. eneral investment account | |
| 467. |
In traditional cash value policies, the policy reserve form part of a _________ |
| A. | pecial investment account |
| B. | eneral investment account |
| C. | oth A & B |
| D. | one of the above |
| Answer» C. oth A & B | |
| 468. |
Under Variable life insurance, if the cash value became zero, the policy would _________ |
| A. | ontinue |
| B. | onverted into term ins |
| C. | urrender |
| D. | erminate |
| Answer» E. | |
| 469. |
In Variable life insurance, the death benefit and cash value of the policy _________ according to the investment performance of a special investment account into which premiums are credited. |
| A. | ent up |
| B. | ent down |
| C. | emain Fixed |
| D. | luctuate |
| Answer» E. | |
| 470. |
Variable Life Insurance is a kind of _________ Insurance. |
| A. | hole life |
| B. | oney back |
| C. | ndowment |
| D. | erm |
| Answer» B. oney back | |
| 471. |
Under Universal life products, there was facility of completely flexible premiums after how many years? |
| A. | ne |
| B. | wo |
| C. | hree |
| D. | our |
| Answer» B. wo | |
| 472. |
In Universal life products, larger the size of the premium,_________ the coverage provided and _________ the policy cash value. |
| A. | maller, larger |
| B. | arger, smaller |
| C. | maller, Smaller |
| D. | arger, larger |
| Answer» E. | |
| 473. |
Universal life insurance is characterized by |
| A. | lexible premiums |
| B. | lexible face amount |
| C. | eath benefit |
| D. | ll of the above |
| Answer» E. | |
| 474. |
Which was the major motive for people going for nontraditional products? |
| A. | lexibility |
| B. | ealth accumulation |
| C. | ransparency |
| D. | ll of the above |
| Answer» E. | |
| 475. |
The major appeal for non-traditional products was in terms of |
| A. | nflation beating returns |
| B. | irect linkage with investment gains |
| C. | lexibility & Higher surrender value |
| D. | ll of the above |
| Answer» E. | |
| 476. |
As per IRDA, which of the following non-traditional products are permitted to be sold? |
| A. | ariable insurance plans |
| B. | nit Linked insurance plans |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 477. |
In respect of Universal life insurance, which of the following statement is correct:- |
| A. | he partial withdrawal once taken need not be repaid |
| B. | olicy was kept in force even if premiums are not paid provided there were adequate investment returns |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 478. |
Universal life insurance policy provides for partial withdrawals. This partial withdrawal was made from the policy’s _________ |
| A. | oan value |
| B. | urrender Value |
| C. | aid up value |
| D. | ash value |
| Answer» E. | |
| 479. |
Universal Life plans provide for which of the following facility? |
| A. | ayment of additional premiums over and above the target amount |
| B. | kipping of premiums |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 480. |
Universal life policies are kept in force even if premiums are not paid, provided its cash value was sufficient to pay for the following items:- |
| A. | olicy preparation & stamp charges |
| B. | gent commission & policy charges |
| C. | ortality charges and expenses |
| D. | ll of the above |
| Answer» D. ll of the above | |
| 481. |
Non-traditional products are also known as |
| A. | nbundled plans |
| B. | undled plans |
| C. | LIP |
| D. | nnuity |
| Answer» B. undled plans | |
| 482. |
In respect of Traditional cash value plans, which is incorrect:- |
| A. | onuses do not reflect the investment performance of the insurer |
| B. | he method for arriving at surrender value is not easily visible |
| C. | ash value component is well defined |
| D. | one of the above |
| Answer» D. one of the above | |
| 483. |
Inter temporal allocation of resources means allocation of resources across _________ |
| A. | eeds |
| B. | ectors |
| C. | pace |
| D. | ime |
| Answer» E. | |
| 484. |
The method in which Profits of the ins.co. could be shared in the form of dividends are |
| A. | ortfolio method |
| B. | urrent money method |
| C. | oth A & B |
| D. | one of the three |
| Answer» D. one of the three | |
| 485. |
Which of the new guidelines for traditional products is not true? |
| A. | or participating policies, bonus is linked to performance of the fund |
| B. | onus once announced becomes a guarantee |
| C. | uch a bonus is called Terminal Bonus |
| D. | or Non-par policies, returns are disclosed at the beginning of the policy |
| Answer» D. or Non-par policies, returns are disclosed at the beginning of the policy | |
| 486. |
Identify the correct statement from the following:- |
| A. | ar policies do not participate in the profits of the insurance companies |
| B. | nder Traditional plans, investments are made without any regulatory supervision |
| C. | on-participating policies could be offered in linked or non-linked platform |
| D. | on-par policies are with profit policies |
| Answer» D. on-par policies are with profit policies | |
| 487. |
Which of the following statement is correct in respect of Endowment policy? |
| A. | horter the policy term, lesser the investment element |
| B. | horter the policy term, larger the investment element |
| C. | onger the policy term, larger the investment element |
| D. | erm and investment element do not bear any relationship |
| Answer» C. onger the policy term, larger the investment element | |
| 488. |
Endowment insurance is a combination of which of the following 2 features:- |
| A. | decreasing term insurance with decreasing investment element |
| B. | n increasing term insurance with decreasing investment element |
| C. | increasing term insurance with increasing investment element |
| D. | decreasing term insurance with increasing investment element |
| Answer» E. | |
| 489. |
Endowment assurance does not possess which of the following property? |
| A. | avings benefit |
| B. | eath benefit |
| C. | urvival Benefit |
| D. | onus benefit |
| Answer» D. onus benefit | |
| 490. |
Which of the following is untrue? A. Insurance promotes efficient use of existing resourcesB. Insurance contributes to healthy economy and national productivityC. Insurance policy can be used as a collateral security |
| A. | is true |
| B. | is true |
| C. | & B correct |
| D. | one of the above |
| Answer» E. | |
| 491. |
Which of the following is correct? Statement A. The system of insurance benefits individual, family and the society Statement B. Insurance companies could invest in speculative ventures. |
| A. | is correct |
| B. | is correct |
| C. | oth A & B |
| D. | one of the above |
| Answer» B. is correct | |
| 492. |
Considering insuring an oil refinery is example of |
| A. | on’t risk more than you can afford to lose |
| B. | on’t risk a lot for a little |
| C. | oth A & B |
| D. | one of the above |
| Answer» B. on’t risk a lot for a little | |
| 493. |
Considering insuring an ordinary ball pen is an example of |
| A. | on’t risk more than you can afford to lose |
| B. | on’t risk a lot for a little |
| C. | oth A & B |
| D. | one of the above |
| Answer» C. oth A & B | |
| 494. |
Cost of the risk is product of which of the following 2 factors: |
| A. | nsurance and Assurance |
| B. | appenings and result |
| C. | ause and effect |
| D. | robability and impact |
| Answer» E. | |
| 495. |
Who among the following is most to buy variable life insurance? |
| A. | eople seeking fixed return |
| B. | eople who are risk averse and do not dabble in equity |
| C. | nowledgeable people comfortable with equity |
| D. | oung people in General |
| Answer» D. oung people in General | |
| 496. |
During which stage of life an individual appreciate past savings the most? |
| A. | ost retirement |
| B. | arner |
| C. | earner |
| D. | ust Married |
| Answer» B. arner | |
| 497. |
_________ relates of inaccurate statements, which are made without any fraudulent intention. |
| A. | isrepresentation |
| B. | ontribution |
| C. | ffer |
| D. | epresentation |
| Answer» B. ontribution | |
| 498. |
Identify the correct option out of the following. |
| A. | icence for agency is issued by the Insurance company |
| B. | icence for a non-life insurance agency is issued by SEBI |
| C. | ife Insurance agency licence is issued by Life Insurance Council |
| D. | gency licence in all cases is issued by the IRDA through the Designated Parson of the Insurer |
| Answer» E. | |
| 499. |
Which is incorrect statement? |
| A. | omplainant has to approach a consumer forum before moving the Ombudsman |
| B. | he complaint has to be lodged with in two year of the insurer rejecting the compliant |
| C. | here is no separate financial limit of various forum and commissions |
| D. | ll of the above |
| Answer» E. | |
| 500. |
Identify the incorrect statements. |
| A. | onsumer Disputes involving private insurance companies can be heard by Consumer Forum or commission |
| B. | ife Insurance does not come under Consumer Protection Act 1986 |
| C. | omplaints can be lodged against private insurers as also public sector companies/corporation like LIC |
| D. | omplaints can be lodged only life insurance companies as also non-life insurance companies |
| Answer» C. omplaints can be lodged against private insurers as also public sector companies/corporation like LIC | |