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.
| 601. |
For a household insurance policy, insurable interest need only exist at outset and at what other point? |
| A. | he date the cancellation period expires |
| B. | he date a claim occurs |
| C. | he date the policy document is received |
| D. | he termination date |
| Answer» C. he date the policy document is received | |
| 602. |
In insurance terms, the risk of suffering a disability is best described as what type of risk? |
| A. | inancial |
| B. | undamental |
| C. | omogenous |
| D. | peculative |
| Answer» B. undamental | |
| 603. |
How are perils and hazards normally distinguished under term insurance policies? |
| A. | erils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying |
| B. | erils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk |
| C. | erils are factors which affect the risk being insured and hazards are the size of the risk being insured |
| D. | erils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout |
| Answer» C. erils are factors which affect the risk being insured and hazards are the size of the risk being insured | |
| 604. |
Akshat is a relatively cautious person. In insurance terms, this will normally increase the likelihood that he will |
| A. | e considered an above average insurance risk |
| B. | e considered a below average insurance risk |
| C. | equire insurance cover |
| D. | equire reinsurance cover |
| Answer» D. equire reinsurance cover | |
| 605. |
The main role of an underwriter in a non-life insurance company is normally to |
| A. | ssess the acceptability of particular risks |
| B. | ertify a loss when claims are submitted |
| C. | esign the structure of the products to be offered |
| D. | egotiate with the industry regulator |
| Answer» D. egotiate with the industry regulator | |
| 606. |
Rakesh recently bought a health insurance policy and a personal accident policy. What main section(s) of the insurance market do these products normally fall into? |
| A. | ife insurance in both cases |
| B. | ife insurance for health and non-life insurance for personal accident |
| C. | on-life insurance in both cases |
| D. | on-life insurance for health and life insurance for personal accident |
| Answer» D. on-life insurance for health and life insurance for personal accident | |
| 607. |
Which one of the following does not belong to the major general insurance private sector companies in India? |
| A. | eliance General Insurance |
| B. | he Oriental Insurance Company |
| C. | ajaj Allianz General Insurance |
| D. | oyal Sundaram Alliance Insurance |
| Answer» C. ajaj Allianz General Insurance | |
| 608. |
Which one of the following does not belong to the main products of life insurance? |
| A. | erm |
| B. | hole life |
| C. | ndowment |
| D. | ersonal accident insurance |
| Answer» E. | |
| 609. |
When did insurance begin in Babylon? |
| A. | 750 BC |
| B. | 907 BC |
| C. | 971 BC |
| D. | 000 BC |
| Answer» B. 907 BC | |
| 610. |
Which among the following companies has not contributed towards the share capital of Agriculture Insurance Company of India Limited (AIC)? |
| A. | nsurance Regulatory and Development Authority of India (IRDAI) |
| B. | ational Bank for Agriculture and Rural Development (NABARD) |
| C. | eneral Insurance Corporation of India (GIC) |
| D. | ational Insurance Company Limited (NICL) |
| Answer» B. ational Bank for Agriculture and Rural Development (NABARD) | |
| 611. |
Nippon Life Insurance has signed definitive agreements to invest Rs 2,265 crore (US$ 332.32 million in order to increase its stake in Reliance Life Insurance from 26 per cent to 49 per cent. Nippon Life Insurance based in- |
| A. | SA |
| B. | apan |
| C. | rance |
| D. | ermany |
| Answer» C. rance | |
| 612. |
The concept of insurance involves a transfer of |
| A. | iability |
| B. | eeds |
| C. | wnership |
| D. | isk |
| Answer» E. | |
| 613. |
An environment where insurance is plentiful and sold at a lower cost, also known as a Buyers market is called _________ |
| A. | ard Market |
| B. | oft Market |
| C. | lternative Market |
| D. | one of the Above |
| Answer» C. lternative Market | |
| 614. |
A seller’s market in which insurance is expensive and in short supply is termed as _________ |
| A. | ard Market |
| B. | oft Market |
| C. | lternative Market |
| D. | one of the Above |
| Answer» D. one of the Above | |
| 615. |
A single policy covering a group of individuals, usually employees of the same company or members of the same association and their dependants is called _________ |
| A. | ospital Insurance |
| B. | ull Insurance |
| C. | roup Insurance |
| D. | dentity theft Insurance |
| Answer» D. dentity theft Insurance | |
| 616. |
In a life insurance contract, the stated sum of money to be paid to the beneficiary upon the insured’s death is termed as _________ |
| A. | remium Amount |
| B. | pecial Amount |
| C. | ace Value |
| D. | xtra Expense Insurance |
| Answer» D. xtra Expense Insurance | |
| 617. |
When was the General Insurance Council formed? |
| A. | 955 |
| B. | 956 |
| C. | 957 |
| D. | 958 |
| Answer» D. 958 | |
| 618. |
When was Triton Insurance Company Ltd established? |
| A. | 850 |
| B. | 854 |
| C. | 857 |
| D. | 860 |
| Answer» B. 854 | |
| 619. |
When was the Oriental Life Insurance Company established? |
| A. | 815 |
| B. | 818 |
| C. | 821 |
| D. | 833 |
| Answer» C. 821 | |
| 620. |
Fees payable to the IRDA for issue of licence to act as an agent of an insurance company are |
| A. | s.500 |
| B. | s.100 |
| C. | s.250 |
| D. | s.1000 |
| Answer» D. s.1000 | |
| 621. |
State the correct position out of the following. |
| A. | o licence is actually needed by the agent if he is authorised by the Insurer |
| B. | o agent can do insurance business without a valid licence under sec.42 of the Insurance Act 1938 |
| C. | n agent of insurance works for salary in an Insurance company |
| D. | Director of an Insurance company can be an insurance Agent |
| Answer» C. n agent of insurance works for salary in an Insurance company | |
| 622. |
As per IRDA Regulations 2002, a decision in a claim is to be taken by the insurer within how many days of submission of requirements by the claimant? |
| A. | months |
| B. | months |
| C. | 5 days |
| D. | 0 days |
| Answer» E. | |
| 623. |
State the correct position |
| A. | n Money Back Claim on maturity the balance sum alone is payable along with attached bonus, if any |
| B. | n the above case full sum assured is payable |
| C. | othing more is payable after the instalments are paid to the assured |
| D. | n death before the end of the policy in the above case the balance sum is payable |
| Answer» B. n the above case full sum assured is payable | |
| 624. |
Qualified prospects are those people who |
| A. | ave a need for life insurance |
| B. | eet the underwriting requirements |
| C. | an be approached for this purpose |
| D. | ll of the above |
| Answer» E. | |
| 625. |
Four major areas of unethical behaviour are |
| A. | isrepresentation |
| B. | llustrations without giving both optimistic and conservative estimation of returns |
| C. | eplacement of an existing policy by a fresh policy without any specific need |
| D. | ll of the above |
| Answer» E. | |
| 626. |
Success in life insurance agency career depends on |
| A. | elf-motivation for accepting challenges in the profession with fire in his belly |
| B. | ositive self-image with high morale |
| C. | spirit of entrepreneurial skill |
| D. | ll of the above |
| Answer» E. | |
| 627. |
What are the correct statements? |
| A. | ancassurance model can either be a bank forming an insurance company on its own or acting as an agent for another Insurance company without capital participation |
| B. | uch an agency of bank acting for an insurer is known as corporate agency |
| C. | commercial bank is not barred from acting as an agent for insurance companies |
| D. | ll of the above |
| Answer» E. | |
| 628. |
Pick out the incorrect statement from the below mentioned statements. |
| A. | nsurance agent represents his client in the first place |
| B. | nsurance agent represents his company in the first place and always |
| C. | here is a difference between an agent and a broker |
| D. | roker represents his client unlike an agent |
| Answer» B. nsurance agent represents his company in the first place and always | |
| 629. |
What fee is payable by the aggrieved person to the District Consumer Forum while filing his complaint? |
| A. | s.250 |
| B. | s.100 |
| C. | 0% of the relief sought and given |
| D. | o fee is payable |
| Answer» E. | |
| 630. |
IGMS stands for |
| A. | ndividual Grievance Management Service |
| B. | ntegrated Grievance Management System |
| C. | ndian Grievance Management System |
| D. | nsurance Grievance Management System |
| Answer» C. ndian Grievance Management System | |
| 631. |
Three elements that promote trust are |
| A. | ommunication, assertiveness and punctuality |
| B. | ttraction, communication and punctuality |
| C. | oliteness, affirmation and ability to effectively communicate |
| D. | ffirmation, assertiveness and attraction |
| Answer» C. oliteness, affirmation and ability to effectively communicate | |
| 632. |
Key to successful closing is helping the prospect to say |
| A. | o, not at this stage |
| B. | on’t know |
| C. | es |
| D. | will have to think again |
| Answer» D. will have to think again | |
| 633. |
What is known as cold call? |
| A. | t is direct approach of the prospect for insurance purposes without any prior announcement or appointment |
| B. | old call is not with warmth of familiarity or friendliness |
| C. | t is without any energy or hope as to the result of the effort |
| D. | old call is an aimless exercise not serious about the final outcome |
| Answer» B. old call is not with warmth of familiarity or friendliness | |
| 634. |
Life Insurance marketing differs from marketing of products and services because |
| A. | ife insurance needs to be sold, rather than bought |
| B. | ife insurance is intangible unlike a tangible product |
| C. | alue of life insurance is not seen at the time of purchase unlike a consumable product |
| D. | ll of the above |
| Answer» E. | |
| 635. |
True reward for a successful agent is |
| A. | ob satisfaction on performing a challenging role to influence his client to go in for his life’s protection |
| B. | ecognition in his circles as a knowledgeable and ethical life insurance adviser with social respect |
| C. | andsome income through hard work by winning the trust and confidence of his clients |
| D. | ll of the above |
| Answer» E. | |
| 636. |
Which is the correct statement? |
| A. | gent is primary underwriter as also field underwriter |
| B. | umerical method of underwriting is by far the most objective method |
| C. | isk in substandard lives is likely to be higher than standard lives on account of increased mortality risk |
| D. | ll of the above |
| Answer» E. | |
| 637. |
State the incorrect statement. |
| A. | ode of conduct is optional for a successful agent |
| B. | thical standards may sometimes conflict with drive to do good volume of business |
| C. | ersistency of policies is beyond the control of agents as well as the insurer |
| D. | ll of the above |
| Answer» E. | |
| 638. |
State the incorrect sentence. |
| A. | ree look period enables the insured to return the policy within 30 days of receipt of the policy bond |
| B. | f the policy is returned as above, no premium is refunded by the insurer |
| C. | MLA is not applicable to life insurance |
| D. | ll of the above |
| Answer» E. | |
| 639. |
When is a policy said to be withdrawn? |
| A. | n surrender of the policy in return for surrender value |
| B. | hen the premiums are not paid as and when due |
| C. | hen a policy is upgraded |
| D. | hen a policy is downgraded |
| Answer» B. hen the premiums are not paid as and when due | |
| 640. |
What is the essential feature of an MRI? |
| A. | o bargain for cheaper mortgage rates from loan provider |
| B. | o continuously protect the value of the mortgaged property |
| C. | o escape court action of attachment in case of default or indebtedness |
| D. | o act as a collateral for ensuring financial protection for home loan borrowers |
| Answer» E. | |
| 641. |
In a keyman’s policy |
| A. | he premium paid by the employer is treated as an allowable business expense |
| B. | n a death claim the policy money is payable to the company |
| C. | eath claim proceeds are treated as taxable income of the employer |
| D. | ll of the above |
| Answer» E. | |
| 642. |
State which is a correct statement of the following. |
| A. | ashless facility means no cash need to be paid by anybody to the care provider |
| B. | ashless facility means a facility extended by an insurer to the insured where payments are made directly by the insurer to the network provider subject to preauthorisation |
| C. | n cashless facility treatment is free for anyone seeking medical care |
| D. | ashless facility means that payments are split between the hospital and the insurer |
| Answer» C. n cashless facility treatment is free for anyone seeking medical care | |
| 643. |
What is the grace period allowed by the Regulator for renewal in health insurance policy? |
| A. | 0 days |
| B. | 5 days |
| C. | 0 days |
| D. | 5 days only |
| Answer» D. 5 days only | |
| 644. |
Identify the correct statement out of the following ones. |
| A. | n emergencies insurer may waive preauthorisation for entering into a hospital for treatment |
| B. | n all cases preauthorisation either by the insurer or TPA is a must before getting admitted into a hospital |
| C. | here is no provision for nomination in a health insurance cover |
| D. | ummary of benefits, terms and conditions for each product in a health cover is not mandatory |
| Answer» B. n all cases preauthorisation either by the insurer or TPA is a must before getting admitted into a hospital | |
| 645. |
Pick out the correct sentence from the flowing ones. |
| A. | amily floater policy does not cover parents |
| B. | amily floater is for self and spouse only |
| C. | amily floater policy covers self, spouse, parents and dependants |
| D. | ncle and aunt can be covered in a family floater |
| Answer» D. ncle and aunt can be covered in a family floater | |
| 646. |
State the correct statement out of these. |
| A. | very pension is a kind of annuity |
| B. | very annuity is also a pension |
| C. | ension and annuity are one and the same |
| D. | very pension is not an annuity |
| Answer» B. very annuity is also a pension | |
| 647. |
State the correct option |
| A. | mount of annuity depends on duration of annuity payments, principal sum of money, investment period and rate of return |
| B. | mount of annuity does not depend on the principal sum of money |
| C. | nvestment period has no relation to the amount of annuity |
| D. | nnuity is independent of rate of return |
| Answer» B. mount of annuity does not depend on the principal sum of money | |
| 648. |
Which of the following is a contingency product |
| A. | hares |
| B. | onds |
| C. | ife insurance |
| D. | ank Deposits |
| Answer» D. ank Deposits | |
| 649. |
Which of the two decisions are involved in a savings proposition? |
| A. | etention of risk and reduced consumption |
| B. | ifting and accumulation |
| C. | pending and accumulation |
| D. | ostponement of consumption and parting with liquidity |
| Answer» E. | |
| 650. |
Define the concept of Uberrima Fides. |
| A. | ot disclosing medical facts and information in the proposal |
| B. | ot revealing all material facts known only to the proposer in the proposal |
| C. | aying premium in time and as and when it is due |
| D. | ully disclosing all material facts about the proposed by him in the proposal |
| Answer» E. | |