MCQOPTIONS
Saved Bookmarks
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.
| 701. |
What is responsible for a rise in general price levels of goods and services in a nation’s economy? |
| A. | nflation |
| B. | eflation |
| C. | eflation |
| D. | tagflation |
| Answer» B. eflation | |
| 702. |
With whom do we associate the concept of Human Life Value? |
| A. | artin Luther |
| B. | rof.H.S.Huebner |
| C. | .M.Keynes |
| D. | arren Buffet |
| Answer» C. .M.Keynes | |
| 703. |
State the correct statement |
| A. | urvey and inspection of property is essential before acceptance of risk to assess the risk for rating purpose |
| B. | o find out the true value of asset |
| C. | o find out how the asset came into the owner’s possession |
| D. | o know whether any other property in the neighbourhood can be insured |
| Answer» B. o find out the true value of asset | |
| 704. |
What is correct out of the following statements? |
| A. | n agent licensed to act as such for an insurer has to have a license under sec.42 of the Insurance Act’38 for procuring and continuing insurance business against payment of commission by the in |
| B. | n agent can only be a trained individual for working for an insurance company |
| C. | bank can also act as a broker for life insurance business |
| D. | bank cannot act as an agent of whatever description |
| Answer» B. n agent can only be a trained individual for working for an insurance company | |
| 705. |
How does investment duration affect returns? |
| A. | here is no relationship whatsoever |
| B. | ith greater duration of investment returns are larger |
| C. | f the duration is larger the rate of returns is likely to be smaller |
| D. | ith greater duration of investment larger tax possibility is likely |
| Answer» C. f the duration is larger the rate of returns is likely to be smaller | |
| 706. |
Which is the following item is good for wealth accumulation purposes? |
| A. | ank loans |
| B. | nvestment in shares |
| C. | nvestment in Term Insurance |
| D. | nvestment in savings bank accounts |
| Answer» C. nvestment in Term Insurance | |
| 707. |
Proximate cause in this case is this |
| A. | is contracting pneumonia after falling into a water body from the horseback |
| B. | ying of the illness in the hospital |
| C. | amesh falling off a horseback and suffers a grave injury |
| D. | alling off the horseback |
| Answer» D. alling off the horseback | |
| 708. |
Who of the below mentioned parties is not eligible to enter into a contract? |
| A. | ousewife |
| B. | usinessman |
| C. | overnment employee |
| D. | inor |
| Answer» E. | |
| 709. |
Inaccurate statements in proposal without any fraudulent intention are |
| A. | epresentation |
| B. | erely misrepresentation |
| C. | ontributing statement |
| D. | ffer by the party |
| Answer» C. ontributing statement | |
| 710. |
State the correct sentence |
| A. | minor is not eligible for insurance |
| B. | roposal on the life of a minor can be submitted by his parent or guardian after the need for insurance is established |
| C. | minor has no insurable interest in his life and therefore, is ineligible for insurance |
| D. | roposal on a minor life can be submitted by anyone |
| Answer» C. minor has no insurable interest in his life and therefore, is ineligible for insurance | |
| 711. |
Indicate the correct sentence |
| A. | n complex cases the underwriter may adopt judgment method, rather than numerical method only |
| B. | ecision as to acceptability of risk is that of the underwriter |
| C. | ostponement of risk is also a kind of underwriting decision |
| D. | ll of the above |
| Answer» E. | |
| 712. |
Pick out the incorrect sentence. |
| A. | nderwriting is risk assessment in a proposal on the life of the proposer for offering him life cover |
| B. | revention of selection against the insurer is the purpose of underwriting |
| C. | nderwriting is a needless exercise in today’s environment of inadequate coverage of population for life insurance |
| D. | nderwriting process defines and determines the premium chargeable on the proposal for covering risk |
| Answer» D. nderwriting process defines and determines the premium chargeable on the proposal for covering risk | |
| 713. |
What is correct |
| A. | nsurer in certain circumstances may waive subsequent premiums |
| B. | olicy document and FPR are one and the same |
| C. | PRs are revival premium receipt |
| D. | fter issue of FPR subsequent premiums are to be paid by the assured |
| Answer» E. | |
| 714. |
State which is incorrect statement |
| A. | ife Insurance agents desirous of doing stand alone Health insurance business will have to be certified under IC-34 separately |
| B. | uch life agents as above are exempt from passing IC-34 if they have been certified under IC-33 and if they undergo some internal training for 25 hours given by Health Insurance Company |
| C. | gents certified under IC 34 for non life insurer can do standalone Health insurance business after undergoing internal training for 25 hrs from the standalone health insurance company |
| D. | o agent, individual or corporate of life and or non-life insurer shall offer his services to more than one standalone health insurance Company |
| Answer» B. uch life agents as above are exempt from passing IC-34 if they have been certified under IC-33 and if they undergo some internal training for 25 hours given by Health Insurance Company | |
| 715. |
In accidental death claim what reports are required to be submitted by the beneficiary? |
| A. | ertificate of cremation or burial |
| B. | reating physician’s certificate |
| C. | nquest report of the Govt. agency |
| D. | ll of the above |
| Answer» E. | |
| 716. |
What is the main objective of IRDA Regulations 2000? |
| A. | rotection of Insurance Company |
| B. | rotection of policyholder and development of orderly growth of insurance business |
| C. | rotection of insurance intermediaries |
| D. | o earn for the Government |
| Answer» C. rotection of insurance intermediaries | |
| 717. |
State the correct position in a missing assured death claim |
| A. | ayment is subject to an order from a competent court of law |
| B. | ayment will depend on the policy status as on the date of the court order |
| C. | even year waiting period is as per the Indian Evidence Act |
| D. | ll of the above |
| Answer» E. | |
| 718. |
What is correct in the following sentences? |
| A. | laim is a demand on the insurer to honour contractual commitment to pay the policy money to the claimant |
| B. | t s request made to the insurer by the claimant to settle payment |
| C. | hile in some claims, the contract comes to an end with payment in other cases the contract continues |
| D. | ll of the above |
| Answer» E. | |
| 719. |
Which of the following is not part of sales process? |
| A. | rospecting |
| B. | ales interview |
| C. | oss assessment |
| D. | losing |
| Answer» D. losing | |
| 720. |
Which of the below reflects Principle 2 of the Insurance Marketplace Standards Association (IMSA) principles? |
| A. | o provide competent and customer-focused sales and service |
| B. | o engage in active and fair competition |
| C. | o provide for fair and expeditious handling of customer complaints and disputes |
| D. | o maintain a system of supervision and review that is reasonably designed to achieve compliance with these principles of ethical market conduct |
| Answer» B. o engage in active and fair competition | |
| 721. |
As per Section 182 of the Indian Contract Act, _________ is a person employed to do any act for another or to represent another in dealing with a third person. |
| A. | rincipal Officer |
| B. | roxy |
| C. | ediator |
| D. | gent |
| Answer» E. | |
| 722. |
The license issued to the agent is valid for _________. |
| A. | ne year |
| B. | wo years |
| C. | hree years |
| D. | ive years |
| Answer» D. ive years | |
| 723. |
“Hurt not others with that which pains yourself”. This golden rule of ethics is given in the teaching of which religion? |
| A. | uddhism |
| B. | hristianity |
| C. | induism |
| D. | udaism |
| Answer» B. hristianity | |
| 724. |
During the revival of a lapsed policy, which of the below aspect is considered most significant by the insurance company? Choose the most appropriate option. |
| A. | vidence of insurability at revival |
| B. | evival of the policy leading to increase in risk for the insurance company |
| C. | ayment of unpaid premiums with interest |
| D. | nsured submitting the revival application within a specified time frame |
| Answer» B. evival of the policy leading to increase in risk for the insurance company | |
| 725. |
Which of the below statement is correct with regards to grace period of an insurance policy? |
| A. | tandard length of the grace period is one month |
| B. | he standard length of the grace period is 30 days |
| C. | he standard length of the grace period is one month or 30 days |
| D. | he standard length of the grace period is one month or 31 days |
| Answer» E. | |
| 726. |
When is a policy deemed to be lapsed? |
| A. | f the premiums are not paid on due date |
| B. | f the premiums are not paid before the due date |
| C. | f the premium has not been paid even during days of grace |
| D. | f the policy is surrendered |
| Answer» D. f the policy is surrendered | |
| 727. |
Which of the below statement is false with regards to nomination? |
| A. | olicy Numbermination is not cancelled if the policy is assigned to the insurer in return for a loan |
| B. | omination can be done at the time of policy purchase or subsequently |
| C. | omination can be changed by making an endorsement in the policy |
| D. | nominee has full rights on the whole of the claim |
| Answer» E. | |
| 728. |
“A clause precluding death due to pregnancy for a lady who is expecting at the time of writing the contract” will be included in which section of a standard policy document? |
| A. | olicy schedule |
| B. | eneral provisions |
| C. | tandard provisions |
| D. | pecific policy provisions |
| Answer» E. | |
| 729. |
Which of the below statement is correct? |
| A. | he proposal form acceptance is the evidence that the policy contract has begun |
| B. | he acceptance of premium is evidence that the policy has begun |
| C. | he First Premium Receipt is the evidence that the policy contract has begun |
| D. | he premium quote is evidence that the policy contract has begun |
| Answer» D. he premium quote is evidence that the policy contract has begun | |
| 730. |
Select the option that best describes a policy document. |
| A. | t is evidence of the insurance contract |
| B. | t is evidence of the interest expressed by the insured in buying an insurance policy from Co |
| C. | t is evidence of the policy (procedures) followed by an insurance company when dealing with channel partners like banks, brokers and other entities |
| D. | t is an acknowledgement slip issued by the insurance company on payment of the first premium |
| Answer» B. t is evidence of the interest expressed by the insured in buying an insurance policy from Co | |
| 731. |
If complex language is used to word a certain policy document and it has given rise to an ambiguity, how will it generally be construed? |
| A. | n favour of insured |
| B. | n favour of insurer |
| C. | he policy will be declared as void and the insurer will be asked to return the premium with interest to the insured |
| D. | he policy will be declared as void and the insurer will be asked to return the premium to the insured without any interest |
| Answer» B. n favour of insurer | |
| 732. |
Which of the following documents is an evidence of the contract between insurer and insured? |
| A. | roposal form |
| B. | olicy document |
| C. | rospectus |
| D. | laim form |
| Answer» C. rospectus | |
| 733. |
Which of the below is not a valid address proof? |
| A. | AN Card |
| B. | oter ID Card |
| C. | ank passbook |
| D. | riving licence |
| Answer» C. ank passbook | |
| 734. |
Which of the below statement is correct with regards to a policy returned by a policyholder during the free look period? |
| A. | he insurance company will refund 100% of the premium |
| B. | he insurance company will refund 50% of the premium |
| C. | he insurance company will refund the premium after adjusting for proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges |
| D. | he insurance company will forfeit the entire premium |
| Answer» D. he insurance company will forfeit the entire premium | |
| 735. |
In case the policyholder is not satisfied with the policy, he / she can return the policy within the free-look period i.e. within _________of receiving the policy document. |
| A. | 0 days |
| B. | 5 days |
| C. | 0 days |
| D. | 5 days |
| Answer» E. | |
| 736. |
Money laundering is the process of bringing _________ money into an economy by hiding its _________ origin so that it appears to be legally acquired. |
| A. | llegal, illegal |
| B. | egal, legal |
| C. | llegal, legal |
| D. | egal, illegal |
| Answer» B. egal, legal | |
| 737. |
The application document used for making the proposal is commonly known as the |
| A. | pplication form |
| B. | roposal form |
| C. | egistration form |
| D. | ubscription form |
| Answer» C. egistration form | |
| 738. |
A _________ is a formal legal document used by insurance companies that provides details about the product. |
| A. | roposal form |
| B. | roposal quote |
| C. | nformation docket |
| D. | rospectus |
| Answer» E. | |
| 739. |
Which of the below features will be checked in a medical examiner’s report? |
| A. | motional behaviour of the proposer |
| B. | eight, weight and blood pressure |
| C. | ocial status |
| D. | ruthfulness |
| Answer» C. ocial status | |
| 740. |
Which of the below can be attributed to moral hazard? |
| A. | ncreased risky behaviour following the purchase of insurance |
| B. | ncreased risky behaviour prior to the purchase of insurance |
| C. | ecreased risky behaviour following the purchase of insurance |
| D. | ngaging in criminal acts post being insured |
| Answer» B. ncreased risky behaviour prior to the purchase of insurance | |
| 741. |
Which of the below is an example of standard age proof? |
| A. | ation card |
| B. | oroscope |
| C. | assport |
| D. | illage Panchayat certificate |
| Answer» D. illage Panchayat certificate | |
| 742. |
In case of _________, a company expresses the bonus as a percentage of basic benefit and already attached bonuses. |
| A. | eversionary bonus |
| B. | ompound bonus |
| C. | erminal bonus |
| D. | ersistency bonus |
| Answer» C. erminal bonus | |
| 743. |
With regards to valuation of assets by insurance companies, _________ is the value at which the life insurer has purchased or acquired its assets. |
| A. | iscounted future value |
| B. | iscounted present value |
| C. | arket value |
| D. | ook value |
| Answer» E. | |
| 744. |
Interest rates are one of the important components used while determining the premium. Which of the below statement is correct with regards to interest rates? |
| A. | ower the interest rate assumed, lower the premium |
| B. | igher the interest rate assumed, higher the premium |
| C. | igher the interest rate assumed, lower the premium |
| D. | he interest rates don’t affect premiums |
| Answer» D. he interest rates don’t affect premiums | |
| 745. |
Life insurance companies may offer rebate to the buyer on the premium that is payable on the basis of _________. |
| A. | um assured chosen by the buyer |
| B. | ype of policy chosen by the buyer |
| C. | erm of the plan chosen by the buyer |
| D. | ode of payment (cash, cheque, card) chosen by the buyer |
| Answer» B. ype of policy chosen by the buyer | |
| 746. |
Which of the below is not a component of ULIP premiums? |
| A. | olicy allocation charge |
| B. | nvestment risk premium |
| C. | ortality charge |
| D. | ocial security charge |
| Answer» E. | |
| 747. |
Which of the below is one of the ways of defining surplus? |
| A. | xcessive liabilities |
| B. | xcessive turnover |
| C. | xcess value of liabilities over assets |
| D. | xcess value of assets over liabilities |
| Answer» E. | |
| 748. |
What is a policy withdrawal? |
| A. | iscontinuation of premium payment by policyholder |
| B. | urrender of policy in return for acquired surrender value |
| C. | olicy upgrade |
| D. | olicy downgrade |
| Answer» C. olicy upgrade | |
| 749. |
The sum assured under keyman insurance policy is generally linked to which of the following? |
| A. | eyman income |
| B. | usiness profitability |
| C. | usiness history |
| D. | usiness history |
| Answer» C. usiness history | |
| 750. |
_________ refers to a hospital/health care provider enlisted by an insurer to provide medical services to an insured on payment by a cashless facility |
| A. | ay care centre |
| B. | etwork provider |
| C. | hird Party Administrator |
| D. | omiciliary |
| Answer» C. hird Party Administrator | |