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.
| 651. |
Which is an advantage in cash value contracts? |
| A. | educed returns on account of inflation |
| B. | ow accumulation in earlier years |
| C. | ower yields |
| D. | ecure and safe investment |
| Answer» E. | |
| 652. |
Choose the incorrect sentence out of the following ones. |
| A. | ife Insurance policies are contracts of indemnity |
| B. | ife insurance contracts are valued contracts and not contracts of indemnity |
| C. | n Non-Life contacts there is no assurance |
| D. | here is no certainty of risk occurrence in non-Life contracts |
| Answer» B. ife insurance contracts are valued contracts and not contracts of indemnity | |
| 653. |
Unbundling of life insurance products refers to |
| A. | orrelation of life insurance with bonds |
| B. | orrelation of life insurance with equities |
| C. | ombination of protection with savings element |
| D. | eparation of protection and savings element |
| Answer» E. | |
| 654. |
What is the essential purpose of Life Insurance? |
| A. | t is tax rebates |
| B. | t is a good investment |
| C. | t is protection for loss of economic value of human life in the event of death or disability |
| D. | t leads to wealth accumulation |
| Answer» D. t leads to wealth accumulation | |
| 655. |
Discretionary income is not maximised by |
| A. | ebt restructuring |
| B. | ransfer of loans |
| C. | estructuring of investment |
| D. | urchase of insurance policy |
| Answer» E. | |
| 656. |
Which is correct |
| A. | y transferring risks to an insurer one can be careless about one’s assets |
| B. | f there is a loss it can lead to payment of money by the insurer |
| C. | otential loss to assets can be ignored |
| D. | f assets are insured the owner of such assets can have comfort of peace of mind and look after his business without worries |
| Answer» E. | |
| 657. |
Which is incorrect? |
| A. | mbudsman is appointed by the central Govt under powers of the Insurance Act’38 and under Redressal of Public Grievance Rules 1998 |
| B. | he recommendations of the Ombudsman are always binding on the insured |
| C. | he Ombudsman can act as a mediator by mutual agreement between the insurer and the insured |
| D. | f mediated, the decision of the Ombudsman is final whether to accept or reject the compliant |
| Answer» C. he Ombudsman can act as a mediator by mutual agreement between the insurer and the insured | |
| 658. |
Deficiency in service giving rise to a customer dispute arises in the following situations. |
| A. | f the shopkeeper charges a price higher than MRP |
| B. | aulty products including expiry date crossed while selling |
| C. | llergy warning not stated clearly on the front of a drug bottle |
| D. | ll of the above |
| Answer» E. | |
| 659. |
What is the jurisdictional limit of a District Forum in Consumer Disputes case? |
| A. | s.20 lakhs |
| B. | s.50 lakhs |
| C. | s.100 lakhs |
| D. | here is no limit |
| Answer» B. s.50 lakhs | |
| 660. |
What is not a true index of service quality? |
| A. | eliability |
| B. | martness |
| C. | mpathy and understanding |
| D. | esponsiveness |
| Answer» C. mpathy and understanding | |
| 661. |
In Needs-analysis the following act is done |
| A. | ocation of areas where people need life insurance protection |
| B. | dentifying people who may work as agents |
| C. | stimating assets of prospects |
| D. | stimating the net worth of prospects |
| Answer» B. dentifying people who may work as agents | |
| 662. |
An annuity with infinite life with continuous payments of annuities by the insurer is |
| A. | mortised plan of loan |
| B. | nnuity in perpetuity |
| C. | PR |
| D. | rincipal |
| Answer» C. PR | |
| 663. |
Who provides public pensions? |
| A. | nsurance company |
| B. | GO's who get Government money |
| C. | tate |
| D. | mployees |
| Answer» D. mployees | |
| 664. |
Liquidation period refers to |
| A. | ime taken to build up a corpus |
| B. | eriod during which Annuity payments are made by the insurer |
| C. | nsolvency period |
| D. | ime between purchase of annuity and start of payment of annuity payments by the insurer |
| Answer» C. nsolvency period | |
| 665. |
State the correct options |
| A. | LIPS are bundled products |
| B. | LIPS have clear aspects of term, expenses and savings components |
| C. | n ULIP Plans the investment risk is borne by the Insurer |
| D. | alue of units is determined in advance as per a formula of the Insurer |
| Answer» C. n ULIP Plans the investment risk is borne by the Insurer | |
| 666. |
State the correct statement out of the following ones. |
| A. | ominee is in every circumstance the owner of the policy proceeds |
| B. | omination is entitled to give a valid discharge to an insurer for payment of claim |
| C. | ssignment and nomination are one and the same |
| D. | ven if a policy is assigned to the insurer for a loan it cancels the existing nomination made earlier |
| Answer» C. ssignment and nomination are one and the same | |
| 667. |
Rights and privileges in a policy will be found in |
| A. | tandard provisions in a policy document |
| B. | olicy schedule |
| C. | reamble to the policy |
| D. | lauses in the policy document |
| Answer» B. olicy schedule | |
| 668. |
Pick out the incorrect statement. |
| A. | n a medical examiner’s report physical features like height, weight, blood pressure, etc need to be stated for proper risk assessment |
| B. | f a proposal cannot be considered as a non-medical case for underwriting, a medical report is essential |
| C. | here is no such thing as non-medical underwriting |
| D. | ation card is a non-standard proof of age |
| Answer» D. ation card is a non-standard proof of age | |
| 669. |
Identify the correct statement out of the following. |
| A. | ree look period enables the policyholder to return the policy and ask for refund subject to certain conditions |
| B. | assport & School certificate is a standard proof of age |
| C. | ation card is a non-standard proof of age |
| D. | ll of the above |
| Answer» E. | |
| 670. |
What of the following statement is correct regarding insurance? |
| A. | ife Insurance contract is between a proposer and his agent for protection of his life’s economic worth |
| B. | rospectus is in lieu of policy in certain cases |
| C. | rospectus is an introductory document giving details of features and benefits of life insurance products to a proposer |
| D. | here is no difference between a proposal and prospectus |
| Answer» D. here is no difference between a proposal and prospectus | |
| 671. |
Identify the correct statement in the following. |
| A. | n determination of premium higher the rate of interest assumed the lower is the premium |
| B. | n determination of premium higher the rate of interest assumed higher is the premium |
| C. | n determination of premium lower the rate of interest assumed lower is the premium |
| D. | remium is not determined by rate of interest assumed to be earned by the insurer |
| Answer» B. n determination of premium higher the rate of interest assumed higher is the premium | |
| 672. |
State the correct one of the following ones. |
| A. | policy lapses if the premium is not paid on the due date |
| B. | policy lapses if the premium is not paid within the grace period |
| C. | policy does not lapse at all under any conditions |
| D. | nvestment risk in a ULIP policy is borne by the Insurer |
| Answer» C. policy does not lapse at all under any conditions | |
| 673. |
Which of the following policies is most suitable for a home loan mortgage? |
| A. | RI |
| B. | hole Life Policy |
| C. | erm Insurance policy |
| D. | roperty insurance under non-life category |
| Answer» B. hole Life Policy | |
| 674. |
State which of the following assets is beyond the scope of the creditors. |
| A. | Ramakant’s indebtedness after his demise can lead to the creditors taking away his property |
| B. | Ramakant’s bank accounts can be attached to clear off his debts |
| C. | utual funds proceeds can be attached by the creditors |
| D. | erm policy proceeds under MWP Act |
| Answer» E. | |
| 675. |
Who is an inpatient seeking medical attention for his medical problem? |
| A. | e is a patient who receives medical attention without admission in a hospital |
| B. | e is after admission in a hospital receiving medical attention and treatment while being there |
| C. | e is a day care patient for treatment |
| D. | e is a patient in a house receiving care of doctors |
| Answer» C. e is a day care patient for treatment | |
| 676. |
State the correct option? |
| A. | isk of longevity is best managed through pensions |
| B. | arly death can be handled through pension |
| C. | nvestment risk cannot be addressed through pensions |
| D. | nflation risk is not managed through pensions |
| Answer» B. arly death can be handled through pension | |
| 677. |
Who are the likely buyers of variable life policies? |
| A. | ersons with low risk appetite |
| B. | ersons who look for predetermined and fixed returns of interest |
| C. | ersons with comfort in equity on account of their knowledge |
| D. | enerally young persons |
| Answer» D. enerally young persons | |
| 678. |
Pick out the incorrect statement out of the following ones. |
| A. | n decreasing term policy the premium will fall each year |
| B. | n decreasing term cover the premium is the same throughout the policy duration |
| C. | olicy benefits will also decrease over the policy period |
| D. | ortgage redemption policy is nothing but a term insurance cover |
| Answer» B. n decreasing term cover the premium is the same throughout the policy duration | |
| 679. |
Which is correct about a decreasing Term Insurance? |
| A. | remium will increase over time |
| B. | remium will decrease over time |
| C. | n decreasing term insurance the premium is constant through the term |
| D. | remium is returned periodically |
| Answer» D. remium is returned periodically | |
| 680. |
Which policy is suited to clear off a client’s liability for mortgage loan? |
| A. | ndowment policy |
| B. | hole Life Policy |
| C. | oney Back Policy |
| D. | ortgage Redemption policy |
| Answer» E. | |
| 681. |
Can a complaint be launched against a private insurer? |
| A. | omplaints can be launched against public insurers only |
| B. | es, complaint can be launched against private insurers |
| C. | omplaint can be launched against private insurers only in the Life Sector |
| D. | omplaint can be launched against private insurers only in the Non-Life Sector |
| Answer» C. omplaint can be launched against private insurers only in the Life Sector | |
| 682. |
Which among the following cannot form the basis for a valid consumer complaint? |
| A. | hopkeeper charging a price above the MRP for a product |
| B. | hopkeeper not advising the customer on the best product in a category |
| C. | llergy warning not provided on a drug bottle |
| D. | aulty products |
| Answer» C. llergy warning not provided on a drug bottle | |
| 683. |
Which of the below consumer grievance redressal agencies would handle consumer disputes amounting between Rs. 20 lakhs and Rs. 100 lakhs? |
| A. | istrict Forum |
| B. | tate Commission |
| C. | ational Commission |
| D. | illa Parishad |
| Answer» C. ational Commission | |
| 684. |
Which of the below elements promote trust? |
| A. | ommunication, assertiveness and being present |
| B. | oliteness, affirmation and communication |
| C. | ttraction, communication and being present |
| D. | ffirmation, assertiveness and attraction |
| Answer» D. ffirmation, assertiveness and attraction | |
| 685. |
_________ relate to one’s ability to interact effectively with other workers and customers, both at work and outside. |
| A. | ard skills |
| B. | oft skills |
| C. | egotiating skills |
| D. | uestioning skills |
| Answer» C. egotiating skills | |
| 686. |
State which of the following is an accumulation product. |
| A. | ank Deposits |
| B. | on life Insurance policy |
| C. | ife Insurance |
| D. | hares |
| Answer» E. | |
| 687. |
State the correct statement of the following sentences. |
| A. | n individual with aggressive risk appetite is likely to follow consolidation |
| B. | n individual with aggressive risk profile is likely to follow wealth accumulation |
| C. | n individual with high risk profile is likely to follow gifting |
| D. | person with risk aggressive style is likely to follow spending |
| Answer» C. n individual with high risk profile is likely to follow gifting | |
| 688. |
If a policy is absolutely assigned to Ramesh and on the death of Srikant, the life assured, to whom will be paid the claim amount? |
| A. | rikant’s wife |
| B. | Nominee in Srikant’s policy |
| C. | Srikant’s widow and children |
| D. | amesh |
| Answer» E. | |
| 689. |
Which element deals with premium in a valid contract? |
| A. | onsideration |
| B. | ffer and Acceptance |
| C. | ree Consent by the parties to the contract |
| D. | apacity to contract |
| Answer» B. ffer and Acceptance | |
| 690. |
Young persons are charged lower premium as compared to older persons because |
| A. | oung persons may not have much income to pay for the insurance |
| B. | lder persons can afford to pay more for their insurance |
| C. | ounger persons have lower mortality on account of lower age |
| D. | ounger the age higher the mortality |
| Answer» D. ounger the age higher the mortality | |
| 691. |
Find out which one below is not an asset. |
| A. | ir |
| B. | ar |
| C. | ouse |
| D. | uman Life |
| Answer» B. ar | |
| 692. |
Which is incorrect statement out of the following ones? |
| A. | isk is not an essential element of insurance |
| B. | sset is not an essential element of insurance |
| C. | rinciple of mutuality is not an essential element of insurance |
| D. | ubsidy is an essential element of insurance |
| Answer» E. | |
| 693. |
_________ refers to the ability to perform the promised service dependably and accurately. |
| A. | eliability |
| B. | esponsiveness |
| C. | ssurance |
| D. | mpathy |
| Answer» B. esponsiveness | |
| 694. |
_________ is not an indicator of service quality. |
| A. | leverness |
| B. | eliability |
| C. | mpathy |
| D. | esponsiveness |
| Answer» B. eliability | |
| 695. |
_________ is not a tangible good |
| A. | ouse |
| B. | nsurance |
| C. | obile Phone |
| D. | pair of jeans |
| Answer» C. obile Phone | |
| 696. |
Identify the incorrect statement with regards to a ‘qualified’ prospect. |
| A. | qualified prospect is one who can pay for insurance |
| B. | qualified prospect is one who can be approached on a favourable basis |
| C. | qualified prospect is one who is academically well qualified to buy insurance |
| D. | qualified prospect is one who can pass the company underwriting requirements |
| Answer» D. qualified prospect is one who can pass the company underwriting requirements | |
| 697. |
Universal Life Insurance is associated with |
| A. | niversal Life Insurance is associated with Germany |
| B. | niversal Life plan was first introduced in the UK |
| C. | rance is the home of universal Life policies |
| D. | SA is known for introducing such policies |
| Answer» E. | |
| 698. |
Stet the correct statement? |
| A. | n endowment assurance survival up to the end of the term as well as in between death will give the claimant the benefits of the policy |
| B. | n endowment policy only survival benefit is available |
| C. | n endowment cover only death benefit is there |
| D. | ndowment plan and Term insurance are similar in benefits |
| Answer» B. n endowment policy only survival benefit is available | |
| 699. |
Which is correct? |
| A. | convertible Term policy cannot be converted into a whole life policy |
| B. | convertible policy can be converted into a money back cover also |
| C. | Convertible Term policy can be converted into a whole life policy |
| D. | converting term policy can be converted into a decreasing term policy |
| Answer» D. converting term policy can be converted into a decreasing term policy | |
| 700. |
State which is correct out of the following |
| A. | Term Insurance policy cannot be convered into any other policy during its duration |
| B. | erm policy is available both a separate policy and as a rider in another policy |
| C. | erm policy can be issued with lifelong renewability option |
| D. | ll Term covers will have a disability rider |
| Answer» C. erm policy can be issued with lifelong renewability option | |