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.
| 801. |
Insurance Agent is governed by _________ |
| A. | ontract act |
| B. | nsurance Act |
| C. | RDA |
| D. | ll of the above |
| Answer» C. RDA | |
| 802. |
A person employed to act on behalf of another in dealing with a third person is called _________ |
| A. | awyer |
| B. | roker |
| C. | mployee |
| D. | gent |
| Answer» E. | |
| 803. |
What is paid by the insurer when the policyholder decides to discontinue the policy |
| A. | orfeiture |
| B. | urrender Value |
| C. | ntermediate Claim |
| D. | apse |
| Answer» C. ntermediate Claim | |
| 804. |
A policy which has run for 8 years can be called into question if there is a_________ |
| A. | raud |
| B. | isrepresentation |
| C. | istake |
| D. | one of the above |
| Answer» E. | |
| 805. |
Which kind policies are not entitled bonuses? |
| A. | on participatory |
| B. | oney back |
| C. | hildren’s |
| D. | hole life |
| Answer» E. | |
| 806. |
In the case of a policy under the provision of M.W.P. ACT who can make the death claim? |
| A. | eneficiary |
| B. | ife insured Heirs |
| C. | rustee |
| D. | ny of the above |
| Answer» B. ife insured Heirs | |
| 807. |
A specialist in the mathematics of insurance who calculates rates, reserves, dividends and other statistics is called? |
| A. | ctuary |
| B. | irjoo |
| C. | mola |
| D. | rixam |
| Answer» B. irjoo | |
| 808. |
Which of these is a private sector general insurance company in India? |
| A. | ew India Assurance Company Limited |
| B. | ajaj Allianz |
| C. | ational Insurance Company Limited |
| D. | he Oriental Insurance Company |
| Answer» C. ational Insurance Company Limited | |
| 809. |
Which is not the product of general insurance? |
| A. | otor insurance |
| B. | ersonal accident insurance |
| C. | edical and health insurance |
| D. | ife insurance |
| Answer» E. | |
| 810. |
Which of these is not a product of life insurance? |
| A. | hole life |
| B. | erm |
| C. | ife annuity |
| D. | ar Insurance |
| Answer» E. | |
| 811. |
Expand IPO. |
| A. | ndian Public Offering |
| B. | nitial Public Offering |
| C. | nitial Political Offering |
| D. | nitial Potential Offering |
| Answer» C. nitial Political Offering | |
| 812. |
What is a company formed and registered under the Companies Act, 1956 and which has been granted a certificate of registration by Insurance Regulatory and Development called? |
| A. | nsurance Depository |
| B. | nsurance Loka |
| C. | nsurance Atantia |
| D. | nsurance Repository |
| Answer» E. | |
| 813. |
Where is the headquarter of United India Insurance Company Limited? |
| A. | olkata |
| B. | angalore |
| C. | hennai |
| D. | umbai |
| Answer» D. umbai | |
| 814. |
Institute of Insurance and Risk Management is located in which city? |
| A. | gra |
| B. | ligarh |
| C. | yderabad |
| D. | hmedabad |
| Answer» D. hmedabad | |
| 815. |
National Insurance Academy is located in which city? |
| A. | une |
| B. | jmer |
| C. | urgaon |
| D. | anaji |
| Answer» B. jmer | |
| 816. |
State which one of the following statements is correct? |
| A. | he social sector is not only in the urban areas |
| B. | he social sector includes the unorganized sector |
| C. | oth the statements above are correct |
| D. | oth the statements above are wrong |
| Answer» D. oth the statements above are wrong | |
| 817. |
State which one of the following statements is correct |
| A. | ife insurance is the best savings scheme for all persons |
| B. | ife insurance is the best investment scheme for young persons |
| C. | oth the statements above are correct |
| D. | oth the statements above are wrong |
| Answer» E. | |
| 818. |
State which of the following statements is correct |
| A. | LIPs provide for flexibility |
| B. | LIPs are better than traditional policies |
| C. | oth the above statements are correct |
| D. | oth the above statements are wrong |
| Answer» B. LIPs are better than traditional policies | |
| 819. |
Which of the below statement is true regarding ULIP’s? |
| A. | alue of the units is determined by a formula fixed in advance |
| B. | nvestment risk is borne by the insurer |
| C. | LIP’s are opaque with regards to their term, expenses and savings components |
| D. | LIP’s are bundled products |
| Answer» D. LIP’s are bundled products | |
| 820. |
Which among the following is a limitation of traditional life insurance products? |
| A. | ields on these policies is high |
| B. | lear and visible method of arriving at surrender value |
| C. | ell defined cash and savings value component |
| D. | ate of return is not easy to ascertain |
| Answer» E. | |
| 821. |
What does inter-temporal allocation of resources refer to? |
| A. | ostponing allocation of resources until the time is right |
| B. | llocation of resources over time |
| C. | emporary allocation of resources |
| D. | iversification of resource allocation |
| Answer» C. emporary allocation of resources | |
| 822. |
Which of the below is an example of an endowment assurance plan? |
| A. | ortgage Redemption Plan |
| B. | redit Life Insurance Plan |
| C. | oney Back Plan |
| D. | hole Life Plan |
| Answer» D. hole Life Plan | |
| 823. |
Which of the below statement is correct with regards to endowment assurance plan? |
| A. | t has a death benefit component only |
| B. | t has a survival benefit component only |
| C. | t has both a death benefit as well as a survival component |
| D. | t is similar to a term plan |
| Answer» D. t is similar to a term plan | |
| 824. |
If a claim is made in January 2007 under a policy, which commenced in May 2002, stating that the life insured had died in April 2004, |
| A. | ection 45 of the Act will not apply |
| B. | he claim can be treated as an early claim |
| C. | oul play must be suspected |
| D. | ll of the above |
| Answer» E. | |
| 825. |
When does a claim arise under an insurance policy? |
| A. | henever the policyholder feels the need for money |
| B. | hen the insured events happen |
| C. | hen a premium is not paid |
| D. | henever any of the three things mentioned above happen |
| Answer» C. hen a premium is not paid | |
| 826. |
Which of the below statement is incorrect with regards to decreasing term assurance? |
| A. | eath benefit amount decreases with the term of coverage |
| B. | remium amount decreases with the term of coverage |
| C. | remium remains level throughout the term |
| D. | ortgage redemption plans are an example of decreasing term assurance plans |
| Answer» C. remium remains level throughout the term | |
| 827. |
Who among the following is best advised to purchase a term plan? |
| A. | n individual who needs money at the end of insurance term |
| B. | n individual who needs insurance and has a high budget |
| C. | n individual who needs insurance but has a low budget |
| D. | n individual who needs an insurance product that gives high returns |
| Answer» D. n individual who needs an insurance product that gives high returns | |
| 828. |
What is the primary purpose of a life insurance product? |
| A. | ax rebates |
| B. | afe investment avenue |
| C. | rotection against the loss of economic value of an individual’s productive abilities |
| D. | ealth accumulation |
| Answer» D. ealth accumulation | |
| 829. |
Using the conversion option present in a term policy you can convert the same to _________. |
| A. | hole life policy |
| B. | ortgage policy |
| C. | ank FD |
| D. | ecreasing term policy |
| Answer» B. ortgage policy | |
| 830. |
In decreasing-term insurance, the premiums paid _________ over time. |
| A. | ncrease |
| B. | ecrease |
| C. | emain constant |
| D. | re returned |
| Answer» D. re returned | |
| 831. |
Which of the below option is correct with regards to a term insurance plan? |
| A. | erm insurance plans come with life-long renewability option |
| B. | ll term insurance plans come with a built-in disability rider |
| C. | erm insurance can be bought as a stand-alone policy as well as a rider with another policy |
| D. | here is no provision in a term insurance plans to convert it into a whole life insurance plan |
| Answer» D. here is no provision in a term insurance plans to convert it into a whole life insurance plan | |
| 832. |
_________ life insurance pays off a policyholder's mortgage in the event of the person's death. |
| A. | erm |
| B. | ortgage |
| C. | hole |
| D. | ndowment |
| Answer» C. hole | |
| 833. |
Which of the below is not a strategy to maximise discretionary income? |
| A. | ebt restructuring |
| B. | oan transfer |
| C. | nvestment restructuring |
| D. | nsurance purchase |
| Answer» E. | |
| 834. |
_________ is a rise in the general level of prices of goods and services in an economy over a period of time. |
| A. | eflation |
| B. | nflation |
| C. | tagflation |
| D. | yperinflation |
| Answer» C. tagflation | |
| 835. |
Which of the below can be categorised under wealth accumulation products? |
| A. | ank deposits |
| B. | ife insurance |
| C. | eneral insurance |
| D. | hares |
| Answer» E. | |
| 836. |
Which among the following can be categorised under contingency products? |
| A. | ank deposits |
| B. | ife insurance |
| C. | hares |
| D. | onds |
| Answer» C. hares | |
| 837. |
Which among the following can be categorised under transactional products? |
| A. | ank deposits |
| B. | ife insurance |
| C. | hares |
| D. | onds |
| Answer» B. ife insurance | |
| 838. |
What is the relation between investment horizon and returns? |
| A. | oth are not related at all |
| B. | reater the investment horizon the larger the returns |
| C. | reater the investment horizon the smaller the returns |
| D. | reater the investment horizon more tax on the returns |
| Answer» C. reater the investment horizon the smaller the returns | |
| 839. |
Savings can be considered as a composite of two decisions. Choose them from the list below. |
| A. | isk retention and reduced consumption |
| B. | ifting and accumulation |
| C. | pending and accumulation |
| D. | ostponement of consumption and parting with liquidity |
| Answer» E. | |
| 840. |
Which among the following is a wealth accumulation product? |
| A. | ank Loans |
| B. | hares |
| C. | erm Insurance Policy |
| D. | avings Bank Account |
| Answer» C. erm Insurance Policy | |
| 841. |
An individual with an aggressive risk profile is likely to follow wealth _________ investment style. |
| A. | onsolidation |
| B. | ifting |
| C. | ccumulation |
| D. | pending |
| Answer» D. pending | |
| 842. |
Find out the proximate cause for death in the following scenario?Ajay falls off a horse and breaks his back. He lies there in a pool of water and contracts pneumonia. He is admitted to the hospital and dies because of pneumonia. |
| A. | neumonia |
| B. | roken back |
| C. | alling off a horse |
| D. | urgery |
| Answer» D. urgery | |
| 843. |
Which of the below party is not eligible to enter into a life insurance contract? |
| A. | usiness owner |
| B. | inor |
| C. | ouse wife |
| D. | overnment employee |
| Answer» C. ouse wife | |
| 844. |
Which of the below is not a valid consideration for a contract? |
| A. | oney |
| B. | roperty |
| C. | ribe |
| D. | ewellery |
| Answer» D. ewellery | |
| 845. |
Which among the following is true regarding life insurance contracts? |
| A. | hey are verbal contracts not legally enforceable |
| B. | hey are verbal which are legally enforceable |
| C. | hey are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872 |
| D. | hey are similar to wager contracts |
| Answer» D. hey are similar to wager contracts | |
| 846. |
What are the two distinct phases of a deferred annuity? |
| A. | aiting and Starting phases |
| B. | oading and Unloading phases |
| C. | ccumulation and Payout phases |
| D. | ommutation and Continuation phases |
| Answer» D. ommutation and Continuation phases | |
| 847. |
Which of the following defines a proposal form? |
| A. | RDA Act, 1999 |
| B. | RDA (Licensing of Agents) Regulations, 2000 |
| C. | nsurance Act, 1938 |
| D. | RDA (Protection of Policyholders' Interests) Regulations, 2002 |
| Answer» E. | |
| 848. |
Which facility is given to the policyholder to neutralise the bargaining power in adhesion contracts? |
| A. | urrender |
| B. | oan |
| C. | ssignment |
| D. | ree look period |
| Answer» E. | |
| 849. |
When is the right time to start financial planning? |
| A. | oung age |
| B. | iddle age |
| C. | dvanced age |
| D. | irst salary |
| Answer» E. | |
| 850. |
Which is not an appropriate reason for a proper financial planning? |
| A. | reak-up of joint family system |
| B. | hanging lifestyle |
| C. | nderwriting |
| D. | hange in behavioral pattern |
| Answer» D. hange in behavioral pattern | |