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.
| 51. |
If there is any delay in settlement of claim within 30 days, other than an early claim, the insurer has to pay _________ rate of interest. |
| A. | avings bank account |
| B. | ank interest + 2% |
| C. | .00% |
| D. | 0% |
| Answer» C. .00% | |
| 52. |
The definition for ‘hospital’ does not envisage which of the following? |
| A. | inpatient beds in towns with a population of < 10 lakh and 10 beds in other places |
| B. | ualified medical practitioner round the clock |
| C. | ully-equipped operation theatre |
| D. | aily records of patients to be maintained |
| Answer» B. ualified medical practitioner round the clock | |
| 53. |
Amount of annuity payable is inversely related to which of the following? |
| A. | rincipal sum of money |
| B. | nvestment period |
| C. | ate of return |
| D. | uration of annuity payments |
| Answer» E. | |
| 54. |
What will happen if the insured person loses the original life insurance policy document? |
| A. | he insurance company will issue a duplicate policy without making any changes to the contract |
| B. | he insurance contract will come to an end |
| C. | he insurance company will issue a duplicate policy with renewed terms and conditions based on the current health declarations of the life insured |
| D. | he insurance company will issue a duplicate policy without making any changes to the contract, but only after a court order |
| Answer» B. he insurance contract will come to an end | |
| 55. |
Non-traditional products involved shift from traditional products in terms of |
| A. | nvestment linkage |
| B. | ransparency |
| C. | nbundling |
| D. | ll of the above |
| Answer» E. | |
| 56. |
In which event(s) does availing cashless facility not require a pre-authorisation from the insurer/TPA? |
| A. | f the hospitalization is to a non-network hospital |
| B. | mergency hospitalization |
| C. | oth A & B |
| D. | one of the three |
| Answer» D. one of the three | |
| 57. |
Which plan is suitable for accumulation of specific sum of money? |
| A. | hole life |
| B. | ndowment |
| C. | oney back |
| D. | erm insurance |
| Answer» C. oney back | |
| 58. |
What is the ‘consideration’ from the insured in an insurance contract? |
| A. | remium |
| B. | roposal |
| C. | nderstanding |
| D. | cceptance |
| Answer» B. roposal | |
| 59. |
Which of the following statements is incorrect in case of variable insurance plans? |
| A. | ash value is not guaranteed |
| B. | inimum death benefit is guaranteed in variable insurance plans |
| C. | here to keep the money invested is the decision of the policyholder |
| D. | lexible premium payments are allowed in such policies |
| Answer» C. here to keep the money invested is the decision of the policyholder | |
| 60. |
In which of the following cases does insurable interest not exist? |
| A. | pouse |
| B. | usiness partner |
| C. | enant |
| D. | elf |
| Answer» D. elf | |
| 61. |
_________ means every party to an insurance contract must disclose all material information. |
| A. | nsurable interest |
| B. | ndemnity |
| C. | roximity |
| D. | berrima fides |
| Answer» E. | |
| 62. |
The most common form of bonus is |
| A. | ash bonus |
| B. | ompound bonus |
| C. | ividend |
| D. | eversionary bonus |
| Answer» E. | |
| 63. |
Choose the correct statement(s) |
| A. | olicy is an evidence of contract between the insurer and the insured |
| B. | PR signifies the commencement of the contract |
| C. | life insurance policy is subject to Indian Stamp Act |
| D. | ll of the above |
| Answer» E. | |
| 64. |
Which of the following types of life insurance policies pays the full sum assured to the beneficiaries if the insured dies during the policy term or to the policyholder on the maturity of the policy if he/she survives the term? |
| A. | hole Life |
| B. | ndowment |
| C. | oney Back |
| D. | nit Linked |
| Answer» C. oney Back | |
| 65. |
As per Section 45 of Insurance Act, 1938, an insurance company can reject a claim after 2 years from issuance of policy if the material facts in the proposal are _________ made. |
| A. | nnocently |
| B. | alsely |
| C. | rantically |
| D. | raudulently |
| Answer» E. | |
| 66. |
In the initial years of a ULIP, the value of the benefits would be |
| A. | igh |
| B. | ow |
| C. | oderate |
| D. | one of the three |
| Answer» C. oderate | |
| 67. |
Which of the following are true with regards to MWP Act cases?I: Death claims are settled in favour of nominees.II: Death claims are settled in favour of trustees. |
| A. | is true |
| B. | I is true |
| C. | oth I and II are true |
| D. | either I nor II is true |
| Answer» C. oth I and II are true | |
| 68. |
IRDA has implemented guidelines on persistency from |
| A. | st July, 2011 |
| B. | st July, 2012 |
| C. | st July, 2013 |
| D. | st July, 2014 |
| Answer» E. | |
| 69. |
As per IRDA, all universal life products are known as |
| A. | LIPs |
| B. | ariable insurance products |
| C. | oth A & B |
| D. | one of the three |
| Answer» C. oth A & B | |
| 70. |
Annuity belongs to |
| A. | ne where the annuity amount is fixed (guaranteed) |
| B. | ne where the annuity amount is variable (linked to investment performance) |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 71. |
Which of the following are the disadvantage(s) of Traditional With Profit policies over ULIPs? |
| A. | onuses are declared only once a year and do not reflect daily fluctuations in the value of the assets |
| B. | olicyholder's benefits depend on assumptions/discretions of the insurance company |
| C. | onus structure does not reflect the true value of assets of the insurer |
| D. | ll of the above |
| Answer» E. | |
| 72. |
Surplus not distributed (retained earnings) could contribute to |
| A. | inancial disaster for a company |
| B. | inancial soundness of a company |
| C. | iscredit of a company in the eyes of public |
| D. | iabilities of a company |
| Answer» C. iscredit of a company in the eyes of public | |
| 73. |
Selecting an appropriate investment vehicle would not depend on |
| A. | iquidity |
| B. | ax benefit |
| C. | ime horizon |
| D. | nsurability |
| Answer» E. | |
| 74. |
Which of the following are incorrect?1. Mutuality means funds from various individuals are combined.2. Diversification means spreading out funds to various destinations. |
| A. | is correct |
| B. | is correct |
| C. | oth A & B |
| D. | one of the above is correct |
| Answer» E. | |
| 75. |
Expand the term IGMS. |
| A. | nsurance General Management System |
| B. | ndian General Management System |
| C. | ntegrated Grievance Management System |
| D. | ntelligent Grievance Management System |
| Answer» D. ntelligent Grievance Management System | |
| 76. |
_________ as a profession refers to the act of inducing a commercial transaction through inducing the purchase of a product or service. Such act is carried out with the intent of earning remuneration. |
| A. | arketing |
| B. | elling |
| C. | dvertising |
| D. | romotion |
| Answer» C. dvertising | |
| 77. |
Which act speaks about presumption of death? |
| A. | nsurance Act, 1938 |
| B. | RDA Act, 1999 |
| C. | RDA Regulations, 2000 |
| D. | ndian Evidence Act |
| Answer» E. | |
| 78. |
If the claim could not be settled for want of proper identification of a payee, the insurer shall pay interest at the rate of |
| A. | avings bank account |
| B. | ank interest + 2% |
| C. | .00% |
| D. | 0% |
| Answer» B. ank interest + 2% | |
| 79. |
Unit Linked policy scores over Traditional plan with respect to |
| A. | ransparent charges structure |
| B. | alue of the units related to an index of performance |
| C. | oth premium and sum insured (as a multiple of annual premium) decided by the insured |
| D. | ll of the above |
| Answer» E. | |
| 80. |
When is an insurance company put to real test? |
| A. | t the point of accepting proposal |
| B. | t the time of payment of claim |
| C. | t the time of deciding sum insured |
| D. | t the time of announcement of bonuses |
| Answer» E. | |
| 81. |
How much free look period is allowed from the date of receipt of health insurance policy document? |
| A. | 0 days |
| B. | 5 days |
| C. | 0 days |
| D. | 0 days |
| Answer» C. 0 days | |
| 82. |
Distribution of terminal bonuses is a way out for insurance companies to |
| A. | Reward the policyholders for ins.cos' unrealized gains |
| B. | chieve equity among different generations of policyholders |
| C. | oth A & B |
| D. | ither A or B |
| Answer» D. ither A or B | |
| 83. |
Which of the following statements in respect of riders is incorrect? |
| A. | ider means the basic death cover of a life insurance policy |
| B. | rider is a provision typically added through an endorsement |
| C. | iders refer to supplementary benefits in life insurance policies |
| D. | iders help customize individual's preferences |
| Answer» B. rider is a provision typically added through an endorsement | |
| 84. |
An insurance broker represents |
| A. | n insurance company |
| B. | n insured |
| C. | n association of insurance companies |
| D. | community of people who have already taken insurance |
| Answer» C. n association of insurance companies | |
| 85. |
Which of the following statements are “TRUE”? 1: In a group policy, each person is free to choose the amount of insurance cover. 2: A person, normally uninsurable, can be covered under a group insurance policy. |
| A. | nly statement 1 |
| B. | nly statement 2 |
| C. | oth A & B |
| D. | one of the above |
| Answer» B. nly statement 2 | |
| 86. |
Which of the following could be the basis of the cover in a group policy? |
| A. | eight of the life insured |
| B. | ge of the life insured |
| C. | ize of the insured's family |
| D. | ll of the above |
| Answer» C. ize of the insured's family | |
| 87. |
Which of the following statements are false?I. Policy decisions in an insurance organization mean decisions relating to issue of specific insurance policies.II.Policy decisions in an insurance organization mean decisions relating to different kind of plans of insurance to be offered to the public. |
| A. | nly I |
| B. | nly II |
| C. | oth I and II |
| D. | either I nor II |
| Answer» B. nly II | |
| 88. |
Ajay pays insurance premium for his employees. Which of the following insurance premiums will not be treated deductible as compensation paid to an employee?I.Health insurance with benefits payable to an employeeII.Keyman life insurance with benefits payable to Ajay |
| A. | nly I |
| B. | nly II |
| C. | oth I and II |
| D. | either I nor II |
| Answer» C. oth I and II | |
| 89. |
As per IRDA norms, which of the following non-traditional saving life insurance products are permitted in India?I.Unit Linked Insurance PlanII. Variable Insurance Plan |
| A. | nly I |
| B. | nly II |
| C. | oth I and II |
| D. | either I nor II |
| Answer» D. either I nor II | |
| 90. |
In case of ULIPs, which of the following statements is correct? |
| A. | ntire premium is invested in units |
| B. | remium less charges are invested |
| C. | remium less bonuses are invested in units |
| D. | remium less risk charges are invested |
| Answer» C. remium less bonuses are invested in units | |
| 91. |
Term insurance is mainly suitable for which of the following needs? |
| A. | ax planning |
| B. | avings |
| C. | isease |
| D. | ncome replacement |
| Answer» E. | |
| 92. |
An insurance contract has to fulfill the requirements of the |
| A. | nsurance Act, 1938 |
| B. | RDA Act, 1999 |
| C. | IC Act, 1956 |
| D. | ndian Contract Act, 1872 |
| Answer» E. | |
| 93. |
By helping a client in settlement of a claim, the agent earns _________ of the claimant. |
| A. | eace |
| B. | ffection |
| C. | rath |
| D. | oodwill |
| Answer» E. | |
| 94. |
Policy Allocation Charge would be _________ in the initial years. |
| A. | igh |
| B. | ow |
| C. | oderate |
| D. | one of the three |
| Answer» B. ow | |
| 95. |
The grace period for renewal beyond expiry date of a health insurance policy is |
| A. | 0 days |
| B. | 5 days |
| C. | 0 days |
| D. | 0 days |
| Answer» D. 0 days | |
| 96. |
In a Return of Premium plan (ROP), what is the quantum of maturity claim payable? |
| A. | um insured |
| B. | um insured + bonus |
| C. | eturn of premiums |
| D. | othing |
| Answer» D. othing | |
| 97. |
Who is the person that arranges for a customer to get the necessary insurance? |
| A. | n agent |
| B. | retailer |
| C. | broker |
| D. | n intermediary |
| Answer» B. retailer | |
| 98. |
How is a policy loan different from a commercial loan? |
| A. | here is no legal obligation to repay a policy loan |
| B. | n case of policy loan, there is no need for a credit check |
| C. | oth A & B |
| D. | one of the three |
| Answer» D. one of the three | |
| 99. |
What is the set time limit for completing a claim investigation? |
| A. | month |
| B. | months |
| C. | year |
| D. | years |
| Answer» C. year | |
| 100. |
Which of the following is the most common underwriting decision? |
| A. | o accept with extra premium |
| B. | o reject proposal |
| C. | ien |
| D. | o accept at an ordinary rate |
| Answer» E. | |