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.
| 501. |
In Need Analysis the steps followed are |
| A. | nalysis of present and future needs of the client |
| B. | inancial value of the above needs |
| C. | ap between funds needed for goals fulfilment and the available funds with the client |
| D. | ll of the above |
| Answer» E. | |
| 502. |
Which of the following is not a tangible good? |
| A. | ife Insurance |
| B. | television set |
| C. | phone |
| D. | farmhouse |
| Answer» B. television set | |
| 503. |
Active listening is |
| A. | aying close attention to the speaker and occasionally smiling or nodding one’s head |
| B. | iving one’s comments on the points raised by the other party |
| C. | hile being attentive to the speaker, giving occasional nod and smile along with feedback |
| D. | ll of the above |
| Answer» E. | |
| 504. |
Identify two most important and basic qualities for a good and successful agent. |
| A. | elf-respect and high knowledge |
| B. | mpathy and ego drive |
| C. | ealth and desire to increase it through life insurance agency |
| D. | lessings of elders and help from bosses |
| Answer» C. ealth and desire to increase it through life insurance agency | |
| 505. |
Identify the correct options. |
| A. | ife insurance selling is different from selling of other items |
| B. | ife insurance involves concept selling and hence challenging |
| C. | n agent has to create in his client’s mind need for life insurance |
| D. | ll of the above |
| Answer» E. | |
| 506. |
Identify the incorrect statement out of the following ones. |
| A. | here is a bar on appointment of a minor as agent of an insurance company |
| B. | person found guilty of fraud or any criminal offence is ineligible for appointment as agent of an insurer |
| C. | minor can be appointed agent of a life insurance company |
| D. | o applicant is exempt from mandatory training before appointment as agent |
| Answer» D. o applicant is exempt from mandatory training before appointment as agent | |
| 507. |
In which case is the moral hazard present? |
| A. | Bank manager with moderate occasional consumption of alcohol |
| B. | race goer with betting habits and usually a heavy consumer of alcohol |
| C. | university professor asking for a large cover on his life |
| D. | here in a proposal the nominee is a near dependant of the proposer |
| Answer» C. university professor asking for a large cover on his life | |
| 508. |
Who of the following may not qualify for a nonmedical underwriting? |
| A. | n IT manager in TCS |
| B. | bank officer for a large sum proposed |
| C. | worker aged 50 in an underground coal mine |
| D. | manager in a shopping mall |
| Answer» D. manager in a shopping mall | |
| 509. |
Pick out the correct ones. |
| A. | omination can be changed at will by the assured during the course of the policy |
| B. | ssignment can also be changed at will by the assured without referring to the assignee |
| C. | itness for an assignment is not mandatorily required |
| D. | ike nomination, assignment can also be effected in the proposal |
| Answer» B. ssignment can also be changed at will by the assured without referring to the assignee | |
| 510. |
What is the duration of grace period in a policy? |
| A. | 0 days |
| B. | ne month |
| C. | ne month or 30 days |
| D. | 1 days |
| Answer» E. | |
| 511. |
Who will issue licence to an applicant on his certification as per regulations? |
| A. | esignated person in the insurer’s office as authorised by the IRDA |
| B. | n officer of the IRDA |
| C. | ontroller of Insurance in the Ministry of Finance |
| D. | n official of the Insurance Institute of India |
| Answer» B. n officer of the IRDA | |
| 512. |
State which is correct. |
| A. | here is no difference between an individual agent and a corporate agent as both of them represent an insurance company |
| B. | n agent can work for a life insurer as also a non-life insurer, either individually or together |
| C. | composite agent means an agent working for one life and one non-life insurer |
| D. | ll of the above |
| Answer» E. | |
| 513. |
In a ULIP claim before the date of maturity will give |
| A. | igher of the sum assured or the fund value |
| B. | ower of the sum assured or the fund value |
| C. | eturn of premiums with savings bank rate of interest |
| D. | urrender value |
| Answer» B. ower of the sum assured or the fund value | |
| 514. |
State the incorrect sentence |
| A. | o Maturity claim is paid on the close of Term insurance |
| B. | n Money Back policy interim payments are made after certain frequencies |
| C. | n Money back policy on death within the policy duration full sum assured is payable without deducting the interim instalments already paid |
| D. | here is no such thing as rider benefit in a policy contract |
| Answer» E. | |
| 515. |
What is defined an early claim? |
| A. | henever the claim arises before the end of the policy term it is an early claim |
| B. | f the claim arises after 5 years, it is an early claim |
| C. | ll death claims are early claims |
| D. | claim by death within three years of commencement |
| Answer» E. | |
| 516. |
Out of the following what is the specific provision in a policy? |
| A. | irst Pregnancy clause |
| B. | eneral provisions |
| C. | olicy schedule |
| D. | tandard provisions |
| Answer» B. eneral provisions | |
| 517. |
State the incorrect of the following. |
| A. | mount of premium need not be shown; only sum assured is to be shown |
| B. | here is no provision for name of the nominee in the policy |
| C. | ode of payment of claim is also shown in the policy |
| D. | ate of birth of the assured has to be shown in the policy |
| Answer» D. ate of birth of the assured has to be shown in the policy | |
| 518. |
State the incorrect statement |
| A. | n the event of loss of policy document, no fresh proposal needed |
| B. | he insurer will in such an event issue a duplicate policy without making any change in the contract |
| C. | o fresh underwriting is involved for issue of a duplicate policy |
| D. | he assured has to approach a competent court of law and obtain an order directing the insurer to issue a duplicate policy |
| Answer» E. | |
| 519. |
What is the incorrect statement out of the following ones? |
| A. | gent’s report is not always compulsory |
| B. | gent’s report should contain details of proposer’s health, habits, occupation, income, and family |
| C. | n agent is a primary underwriter from the insurer’s point of view |
| D. | rospectus is a legal document |
| Answer» B. gent’s report should contain details of proposer’s health, habits, occupation, income, and family | |
| 520. |
Surplus is defined as |
| A. | xcess value of assets over liabilities |
| B. | hen turnover of the insurer is high |
| C. | xcess value of liabilities over assets |
| D. | xcess of liabilities |
| Answer» B. hen turnover of the insurer is high | |
| 521. |
What are the factors in determining premium in a life policy? |
| A. | olicy reserves |
| B. | ortality |
| C. | xpenses |
| D. | ll of the above |
| Answer» E. | |
| 522. |
Insurance refers to protection against an event that _________ happen whereas Assurance refers to protection against an event that _________ happen. |
| A. | ay, may not |
| B. | ight, will |
| C. | ust, need not |
| D. | ill, will not |
| Answer» C. ust, need not | |
| 523. |
Risk Retention means |
| A. | nsuring with an insurance company |
| B. | nsuring with another individual |
| C. | nsuring with the owner of the company |
| D. | elf-insurance |
| Answer» E. | |
| 524. |
Risk Financing includes - |
| A. | isk Retention |
| B. | isk Transfer |
| C. | & B correct |
| D. | one of the above |
| Answer» D. one of the above | |
| 525. |
Risk reduction and control involves steps like - |
| A. | ducation and training |
| B. | aking environmental changes |
| C. | preading out items to various locations |
| D. | ll of the above |
| Answer» E. | |
| 526. |
Which are the methods to manage risks? |
| A. | isk Avoidance |
| B. | isk Retention |
| C. | isk Reduction |
| D. | ll of the above |
| Answer» E. | |
| 527. |
State the incorrect statement of the following ones. |
| A. | n a term insurance the benefits are fixed throughout the duration |
| B. | n an MRI the insurance benefit on account of cover will decrease year after year |
| C. | here is no material difference between a term insurance policy and an MRI as far as benefits are concerned |
| D. | RI is suitable for a loan sought from a bank as a mortgage cover |
| Answer» D. RI is suitable for a loan sought from a bank as a mortgage cover | |
| 528. |
Mortgage Redemption Insurance is nothing but |
| A. | t is a constant term insurance |
| B. | t is an increasing term insurance |
| C. | t is savings insurance like universal life insurance |
| D. | ecreasing Term Insurance |
| Answer» E. | |
| 529. |
Which one of the below is not a case of annuity? |
| A. | ayment of Rs.10, 000 received today last year on the same day and likely payment of a similar sum by the insurer next year |
| B. | lectricity Bill |
| C. | ar payments made by the loanee car owner |
| D. | eriodical mortgage payments |
| Answer» C. ar payments made by the loanee car owner | |
| 530. |
Term Policy is ideally suited for |
| A. | ne who needs periodical sums of money in his life? |
| B. | ne who has a high insurance budget |
| C. | ne who has a low insurance budget |
| D. | ne who looks for high returns |
| Answer» D. ne who looks for high returns | |
| 531. |
Which of the following can easily be compensated thro’ insurance? |
| A. | rimary burden of risk |
| B. | econdary burden of risk |
| C. | oth A & B |
| D. | one of the above |
| Answer» B. econdary burden of risk | |
| 532. |
Which of the following is correct? Statement A – Insurance reduces burdens Statement B – Insurance is a system of mutual support. Statement C – Insurance the only method to manage risks. |
| A. | is correct |
| B. | is correct |
| C. | , B & C correct |
| D. | & B correct |
| Answer» E. | |
| 533. |
Government of India transacts life insurance business in India through which of the following: |
| A. | IC of India |
| B. | IC of India |
| C. | ostal Life Insurance |
| D. | ll of the above |
| Answer» D. ll of the above | |
| 534. |
The emergence of which of the following necessitates insurance as a form of security? |
| A. | oint family system |
| B. | uclear family system |
| C. | oth A & B |
| D. | one of the above |
| Answer» C. oth A & B | |
| 535. |
In insurance , need-gap analysis involves_________ |
| A. | dentifying the areas where the prospect needs insurance protection |
| B. | ndentifying people to work as insurance agents |
| C. | dentifying how much assets a prospect has |
| D. | dentifying the poverty level of the prospects |
| Answer» B. ndentifying people to work as insurance agents | |
| 536. |
The key to successful closing lies helping the prospect to say _________ |
| A. | o |
| B. | es |
| C. | on’t know |
| D. | aybe |
| Answer» C. on’t know | |
| 537. |
If an agent is found guilty of criminal misappropriation the designated person will _________ ,_________ |
| A. | ancel the license |
| B. | ssue a duplicate license |
| C. | enew the existing license |
| D. | ake some fees from the agent |
| Answer» B. ssue a duplicate license | |
| 538. |
_________ is the fees payable to the authority for issue / renewal of license to act as an insurance agent or composite insurance agent. |
| A. | 50 |
| B. | 50 |
| C. | 20 |
| D. | 00 |
| Answer» B. 50 | |
| 539. |
Agent’s license is to be renewed _________ |
| A. | very Year |
| B. | fter 5 Year |
| C. | fter 3 year |
| D. | fter 15 year |
| Answer» D. fter 15 year | |
| 540. |
Given below is a list of document to be submitted for a normal death claim by all beneficiaries in the event of death of life insured. Pick the odd one out which is additionally required to be submitted only in case of death by accident. |
| A. | nquest report |
| B. | laim form |
| C. | ertificate of burial cremation |
| D. | ospital’s certificate |
| Answer» B. laim form | |
| 541. |
Mahesh has brought a life insurance policy with a critical illness rider. He has made absolute assignment of the policy in favor of khan. Mahesh suffers a heart attack and there is a claim of Rs.50,000 under the critical illness rider. To whom will the payment be made in this case? |
| A. | ahesh |
| B. | aran |
| C. | he payment will be shared equally by Mahesh and Karan |
| D. | either of the two because Mahesh has suffered the heart attack but the policy is assigned in the favor of Karan |
| Answer» C. he payment will be shared equally by Mahesh and Karan | |
| 542. |
Amrita is pregnant. She has applied for a term insurance cover. WHICH of the below option will be the best option to choose for an underwriter to offer insurance to Amrita? Choose the most likely option. |
| A. | cceptance at ordinary |
| B. | cceptance with extra premium |
| C. | ecline the proposal |
| D. | cceptance with a restrictive clause |
| Answer» E. | |
| 543. |
What will happen if the policy holder does not pay the premium by the due date and dies during the grace period? |
| A. | he insurer will consider the policy void due to non- payment of premium by the due date and hence reject claim |
| B. | he insurer will pay claim and waive off the last unpaid premium |
| C. | he insurer will pay the claim after deducting the unpaid premium |
| D. | he insurer will pay the claim after deducting the unpaid premium along with interest which will be taken as 2% above the bank savings interest rate |
| Answer» D. he insurer will pay the claim after deducting the unpaid premium along with interest which will be taken as 2% above the bank savings interest rate | |
| 544. |
In order for the policy to acquire a guaranteed surrender value, for how long must the premium be paid as per law? |
| A. | remiums must be paid for least 2consecuitve years |
| B. | remiums must be paid for least 3consecuitve years |
| C. | remiums must be paid for least 4consecuitve years |
| D. | remiums must be paid for least 5consecuitve years |
| Answer» C. remiums must be paid for least 4consecuitve years | |
| 545. |
A policy is affected under the MWP Act. If the policyholder does not appoint a special trustee to receive and administer the benefits under the policy, the sum secured under the policy become payable to the _________ |
| A. | ext of kin |
| B. | fficial trustee of the State |
| C. | nsurer |
| D. | nsured |
| Answer» C. nsurer | |
| 546. |
Identify the term of insurance that is depicted in the following scenario. Scenario: patient pays the health provider and is subsequently reimbursed by the health insurance company. |
| A. | ervice Benefit |
| B. | irect Contracting |
| C. | ndemnity |
| D. | asualty |
| Answer» D. asualty | |
| 547. |
IRDA stand for _________ |
| A. | nternational Regulatory & development Authority |
| B. | ndian Regulatory & development Authority |
| C. | nsurance Regulatory & development Authority |
| D. | ncome Regulatory & development Authority |
| Answer» D. ncome Regulatory & development Authority | |
| 548. |
_________ is a term used to refer pensions that some level of Government administration. |
| A. | nsurance pension fund |
| B. | ublic pension fund |
| C. | rivate pension fund |
| D. | arket pension fund |
| Answer» C. rivate pension fund | |
| 549. |
From the choices mentioned below , select the one cannot be categorized as an annuity |
| A. | s. 2000 received today , Rs 2000 received next year and Rs. 2000 received in 2 years |
| B. | lectricity Bill |
| C. | ar payments |
| D. | ortgage Payments |
| Answer» C. ar payments | |
| 550. |
State which of the following ones is a transactional product. |
| A. | ank Deposit |
| B. | ife Insurance |
| C. | hares in stock market |
| D. | onds and debentures |
| Answer» B. ife Insurance | |