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.
| 751. |
_________ is an insured who undergoes treatment after getting admitted in a hospital. |
| A. | npatient |
| B. | utpatient |
| C. | ay patient |
| D. | ouse patient |
| Answer» B. utpatient | |
| 752. |
Primary care can be described as _________. |
| A. | are provided to patient in an acute setting |
| B. | are provided in hospitals |
| C. | irst point of contact for people seeking healthcare |
| D. | are provided by Doctors |
| Answer» D. are provided by Doctors | |
| 753. |
Moral hazard by health insurance companies can result in _________. |
| A. | ommunity rating |
| B. | dverse selection |
| C. | buse of health insurance |
| D. | isk pooling |
| Answer» C. buse of health insurance | |
| 754. |
Who cannot be covered under a family floater policy? |
| A. | hildren |
| B. | pouse |
| C. | arents-in-law |
| D. | aternal uncle |
| Answer» E. | |
| 755. |
Which of the below group would not be eligible for a group health insurance policy? |
| A. | mployees of a company |
| B. | redit card holders of an organisation |
| C. | rofessional association members |
| D. | roup of unrelated individuals formed for the purpose of availing group health insurance |
| Answer» E. | |
| 756. |
The term TPA refers to _________. (Answer with regards to health insurance) |
| A. | he Primary Associate |
| B. | o Provide Assistance |
| C. | hird Party Administrator |
| D. | hird Party Assistance |
| Answer» D. hird Party Assistance | |
| 757. |
In an ordinary annuity, payments are made or received _________ of each period. |
| A. | t the beginning |
| B. | t the end |
| C. | n maturity |
| D. | months before expiry |
| Answer» C. n maturity | |
| 758. |
What is the basic contingency associated with pensions? |
| A. | ortality |
| B. | orbidity |
| C. | ost-retirement income security |
| D. | isability |
| Answer» D. isability | |
| 759. |
Which of the below is not a factor in determining life insurance premium? |
| A. | ortality |
| B. | ebate |
| C. | eserves |
| D. | anagement expenses |
| Answer» C. eserves | |
| 760. |
What does the term “premium” denote in relation to an insurance policy? |
| A. | rofit earned by the insurer |
| B. | rice paid by an insured for purchasing the policy |
| C. | rice paid by an insured for purchasing the policy |
| D. | xpenses incurred by an insurer on a policy |
| Answer» C. rice paid by an insured for purchasing the policy | |
| 761. |
Which of the below policy can provide protection to home loan borrowers? |
| A. | ife Insurance |
| B. | isability Insurance |
| C. | ortgage Redemption Insurance |
| D. | eneral Insurance |
| Answer» D. eneral Insurance | |
| 762. |
The practice of charging interest to borrowers who pledge their property as collateral but leaving them in possession of the property is called _________. |
| A. | ecurity |
| B. | ortgage |
| C. | sury |
| D. | ypothecation |
| Answer» C. sury | |
| 763. |
Mortgage redemption insurance (MRI) can be categorised under _________. |
| A. | ncreasing term life assurance |
| B. | ecreasing term life assurance |
| C. | ariable life assurance |
| D. | niversal life assurance |
| Answer» C. ariable life assurance | |
| 764. |
Direct marketing involves which of the below? |
| A. | elemarketing |
| B. | nsurance agents |
| C. | ancassurance |
| D. | ll of the above |
| Answer» E. | |
| 765. |
Minimum qualification required for insurance agent is _________ pass. |
| A. | raduate |
| B. | 0th |
| C. | ost-graduate |
| D. | th |
| Answer» C. ost-graduate | |
| 766. |
The Authority may issue duplicate licence in case it is _________. |
| A. | ost |
| B. | estroyed |
| C. | utilated |
| D. | ll of the above |
| Answer» E. | |
| 767. |
Identify the statement which is not correct. Insurance agent should _________. |
| A. | ndicate the scale of commission if asked by the customer |
| B. | hare the commission by way of rebate |
| C. | isclose his licence on demand |
| D. | ndicate the premium to be charged |
| Answer» C. isclose his licence on demand | |
| 768. |
Applicant shall complete _________ hours training to become an insurance agent. |
| A. | 0 |
| B. | 00 |
| C. | 0 |
| D. | 5 |
| Answer» B. 00 | |
| 769. |
Based on classification of claims (early or non-early), pick the odd one out? |
| A. | amya dies after 6 months of buying a term insurance plan |
| B. | anoj dies after one and half years of buying a term insurance plan |
| C. | avid dies after two and half years of buying a term insurance plan |
| D. | ravin dies after five and half years of buying a term insurance plan |
| Answer» E. | |
| 770. |
Shankar bought a 10 year Unit Linked Insurance Plan. If he dies before the maturity of the policy which of the below will be paid? |
| A. | ower of sum assured or fund value |
| B. | ower of sum assured or fund value |
| C. | remiums paid will be returned with 2% higher interest rate as compared to a bank’s savings deposit |
| D. | urrender value |
| Answer» C. remiums paid will be returned with 2% higher interest rate as compared to a bank’s savings deposit | |
| 771. |
A payment made under a money-back policy upon reaching a milestone will be classified under which type of claim? |
| A. | eath claim |
| B. | aturity claim |
| C. | eriodical survival claim |
| D. | urrender claim |
| Answer» D. urrender claim | |
| 772. |
Given below are some events that will trigger survival claims. Identify which of the below statement is incorrect? |
| A. | laim paid on maturity of a term insurance policy |
| B. | n instalment payable upon reaching the milestone under a money-back policy |
| C. | laim paid for critical illnesses covered under the policy as a rider benefit |
| D. | urrender value paid on surrender of an endowment policy by the policyholder |
| Answer» B. n instalment payable upon reaching the milestone under a money-back policy | |
| 773. |
Which of the below death claim will be treated as an early death claim? |
| A. | f the insured dies within three years of policy duration |
| B. | f the insured dies within five years of policy duration |
| C. | f the insured dies within seven years of policy duration |
| D. | f the insured dies within ten years of policy duration |
| Answer» B. f the insured dies within five years of policy duration | |
| 774. |
Under risk classification, _________ consist of those whose anticipated mortality corresponds to the standard lives represented by the mortality table. |
| A. | tandard lives |
| B. | referred risks |
| C. | ub-standard lives |
| D. | eclined lives |
| Answer» B. referred risks | |
| 775. |
Under what method of underwriting does an underwriter assign positive rating points for all negative or adverse factors (negative points for any positive or favourable factors)? |
| A. | udgment |
| B. | rbitrary |
| C. | umerical rating |
| D. | ingle step |
| Answer» D. ingle step | |
| 776. |
Which of the following condition will affect a person’s insurability negatively? |
| A. | aily jogs |
| B. | anned substance abuse |
| C. | azy nature |
| D. | rocrastination |
| Answer» C. azy nature | |
| 777. |
Which of the following is not a standard age proof? |
| A. | assport |
| B. | chool leaving certificate |
| C. | oroscope |
| D. | irth certificate |
| Answer» D. irth certificate | |
| 778. |
Which of the following is not an underwriting decision? |
| A. | isk acceptance at standard rates |
| B. | eclinature of risk |
| C. | ostponement of risk |
| D. | laim rejection |
| Answer» E. | |
| 779. |
Praveen died in a car accident. The beneficiary submits documents for a death claim. Which of the below document is an additional document required to be submitted in case of accidental death as compared to natural death? |
| A. | ertificate of burial or cremation |
| B. | reating physician’s certificate |
| C. | mployer’s certificate |
| D. | nquest Report |
| Answer» E. | |
| 780. |
Given below is a list of policies. Identify under which type of policy, the claim payment is made in the form of periodic payments? |
| A. | oney-back policy |
| B. | nit linked insurance policy |
| C. | eturn of premium policy |
| D. | erm insurance policy |
| Answer» B. nit linked insurance policy | |
| 781. |
Santosh has applied for a term insurance policy. His anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium. Under risk classification, Santosh will be classified under _________. |
| A. | tandard lives |
| B. | referred risks |
| C. | ubstandard lives |
| D. | eclined lives |
| Answer» C. ubstandard lives | |
| 782. |
Sheena is suffering from acute diabetes. She has applied for an insurance plan. In this case the underwriter is most likely to use _________ for underwriting. Choose the most appropriate option. |
| A. | udgment method |
| B. | umerical method |
| C. | ny of the above method since an illness like diabetes does not play a major role in the underwriting process |
| D. | either of the above method as diabetes cases are rejected outright |
| Answer» B. umerical method | |
| 783. |
Which of the below insurance proposal is not likely to qualify under non-medical underwriting? |
| A. | avita, aged 26 years, working in an IT company as a software engineer |
| B. | ahesh, aged 50 years, working in a coal mine |
| C. | atish, aged 28 years, working in a bank and has applied for an insurance cover of Rs. 1 crore |
| D. | ravin, aged 30 years, working in a departmental store and has applied for an endowment insurance plan for a tenure of 10 years |
| Answer» C. atish, aged 28 years, working in a bank and has applied for an insurance cover of Rs. 1 crore | |
| 784. |
Which of the following denotes the underwriter’s role in an insurance company? |
| A. | rocess claims |
| B. | ecide acceptability of risks |
| C. | roduct design architect |
| D. | ustomer relations manager |
| Answer» C. roduct design architect | |
| 785. |
Which of the below alteration will be permitted by an insurance company? |
| A. | plitting up of the policy into two or more policies |
| B. | xtension of the premium paying term |
| C. | hange of the policy from with profit policy to without profit policy |
| D. | ncrease in the sum assured |
| Answer» B. xtension of the premium paying term | |
| 786. |
Which of the below statement is incorrect with regards to assignment of an insurance policy? |
| A. | n case of Absolute Assignment, in the event of death of the assignee, the title of the policy would pass to the estate of the deceased assignee |
| B. | he assignment of a life insurance policy implies the act of transferring the rights right, title and interest in the policy (as property) from one person to another |
| C. | t is necessary that the policyholder must give notice of assignment to the insurer |
| D. | n case of Absolute Assignment, the policy vests absolutely with the assignee till maturity, except in case of death of the insured during the policy tenure, wherein the policy reverts back to the ben |
| Answer» E. | |
| 787. |
Which of the below statement is incorrect with regards to a policy against which a loan has been taken from the insurance company? |
| A. | he policy will have to be assigned in favour of the insurance company |
| B. | he nomination of such policy will get cancelled due to assignment of the policy in favour of the insurance company |
| C. | he nominee’s right will be affected to the extent of the insurer’s interest in the policy |
| D. | he policy loan is usually limited to a percentage of the policy’s surrender value |
| Answer» C. he nominee’s right will be affected to the extent of the insurer’s interest in the policy | |
| 788. |
For an insurance policy nomination is allowed under _________ of the Insurance Act, 1938. |
| A. | ection 10 |
| B. | ection 38 |
| C. | ection 39 |
| D. | ection 45 |
| Answer» D. ection 45 | |
| 789. |
Which of the below risk cannot be addressed through pensions? |
| A. | ife longevity |
| B. | nflation |
| C. | nvestment risk |
| D. | arly death |
| Answer» E. | |
| 790. |
What does unbundling of life insurance products refers to? |
| A. | orrelation of life insurance products with bonds |
| B. | orrelation of life insurance products with equities |
| C. | malgamation of protection and savings element |
| D. | eparation of the protection and savings element |
| Answer» E. | |
| 791. |
All of the following is true regarding ULIP’s EXCEPT: |
| A. | nit holder can choose between different kind of funds |
| B. | ife insurer provides guarantee for unit values |
| C. | nits may be purchased by payment of a single premium or via regular premium payments |
| D. | LIP policy structure is transparent with regards to the insurance expenses component |
| Answer» C. nits may be purchased by payment of a single premium or via regular premium payments | |
| 792. |
Which of the below is correct with regards to universal life insurance?I: It allows policy owner to vary payments.II: Policy owner can earn market based rate of return on cash value |
| A. | is true |
| B. | I is true |
| C. | and II are true |
| D. | and II are false |
| Answer» D. and II are false | |
| 793. |
All of the following are characteristics of variable life insurance EXCEPT: |
| A. | lexible premium payments |
| B. | ash value is not guaranteed |
| C. | olicy owner selects where savings reserve is invested |
| D. | inimum Death benefit is guaranteed |
| Answer» B. ash value is not guaranteed | |
| 794. |
_________ involves pressure applied through criminal means. |
| A. | raud |
| B. | ndue influence |
| C. | oercion |
| D. | istake |
| Answer» D. istake | |
| 795. |
Which element of a valid contract deals with premium? |
| A. | ffer and acceptance |
| B. | onsideration |
| C. | ree consent |
| D. | apacity of parties to contract |
| Answer» C. ree consent | |
| 796. |
Which of the below is an advantage of cash value insurance contracts? |
| A. | eturns subject to corroding effect of inflation |
| B. | ow accumulation in earlier years |
| C. | ower yields |
| D. | ecure investment |
| Answer» E. | |
| 797. |
Which of the below is not an advantage of cash value insurance contracts? |
| A. | afe and secure investment |
| B. | nculcates saving discipline |
| C. | ower yields |
| D. | .T. advantages |
| Answer» D. .T. advantages | |
| 798. |
Which of the below is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people? |
| A. | oung people are mostly dependant |
| B. | ld people can afford to pay more |
| C. | ortality is related to age |
| D. | ortality is inversely related to age |
| Answer» D. ortality is inversely related to age | |
| 799. |
Which among the following cannot be termed as an asset? |
| A. | ar |
| B. | uman Life |
| C. | ir |
| D. | ouse |
| Answer» E. | |
| 800. |
Which of the below mentioned insurance plans has the least or no amount of savings element? |
| A. | erm insurance plan |
| B. | ndowment plan |
| C. | hole life plan |
| D. | oney back plan |
| Answer» B. ndowment plan | |