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.
| 101. |
To make accurate statistical estimates, insurance risks must be handled as per the law of |
| A. | nertia |
| B. | arge numbers |
| C. | arge groups |
| D. | one of the above |
| Answer» C. arge groups | |
| 102. |
Why do insurers arrange for survey and inspection of the property before acceptance of a risk? |
| A. | o assess the risk for rating purposes |
| B. | o find out how the insured purchased the property |
| C. | o find out whether other insurers have also inspected the property |
| D. | o find out whether neighboring property also can be insured |
| Answer» B. o find out how the insured purchased the property | |
| 103. |
Which of the following statements is incorrect in case of a non-medical case? |
| A. | n a non-medical case, risk cannot be assessed in the absence of medical report |
| B. | isk assessment is possible in a non-medical proposal |
| C. | ore than 90% of people who submit proposals on their lives are accepted at ordinary rates |
| D. | n preferred lives, the level of anticipated mortality is likely to be lower than even standard lives |
| E. | n preferred lives, the level of anticipated mortality is likely to be lower than even standard lives |
| Answer» B. isk assessment is possible in a non-medical proposal | |
| 104. |
Term insurance possesses which of the following properties? |
| A. | avings benefit |
| B. | eath benefit |
| C. | aturity benefit |
| D. | onus benefit |
| Answer» C. aturity benefit | |
| 105. |
In this method of underwriting, the underwriter gives rating points for all the negative or adverse factors, totals them and decides extra mortality rating. Which method are we talking about? |
| A. | iometric rating |
| B. | udgmental rating |
| C. | linical rating |
| D. | umerical rating |
| Answer» E. | |
| 106. |
Occurrence of _________ has to be _________ and not a _________ of the insured person. |
| A. | eril, uncertain, creation |
| B. | n event, certain, creation |
| C. | isk, hazardous, profit |
| D. | n event, random, creation |
| Answer» B. n event, certain, creation | |
| 107. |
In context of insurance, ‘risk retention’ indicates a situation where |
| A. | ossibility of loss or damage is not there |
| B. | oss producing event has no value |
| C. | roperty is covered by insurance |
| D. | ne decides to bear the risk and its effects |
| Answer» E. | |
| 108. |
Which of the following is not a risk fit for insurance? |
| A. | arly death |
| B. | arly death in an accident |
| C. | isability |
| D. | atural wear and tear to an asset |
| Answer» E. | |
| 109. |
Which among the following is not a variant of term assurance? |
| A. | ortgage redemption insurance |
| B. | eturn of premiums |
| C. | ncreasing term assurance |
| D. | ndowment assurance |
| Answer» E. | |
| 110. |
Which of the following are not a wealth accumulation product? |
| A. | hares |
| B. | nsurance |
| C. | onds |
| D. | eal estate |
| Answer» C. onds | |
| 111. |
Which principle means flow of resources from many to one? |
| A. | utuality or pooling |
| B. | utuality or cooperation |
| C. | ooling or funding |
| D. | esourcing or pooling |
| Answer» B. utuality or cooperation | |
| 112. |
_________ is reflected in the caring attitude and individualized attention given to customers. |
| A. | ssurance |
| B. | mpathy |
| C. | eliability |
| D. | esponsiveness |
| Answer» C. eliability | |
| 113. |
An agent can work on which of the following bases for successful results? |
| A. | atural market is a source of market for a life insurance agent |
| B. | satisfied client can be an effective referral to an agent for further references |
| C. | amily and friends can offer an easy opportunity for being contacted for life insurance selling |
| D. | ll of the above |
| Answer» E. | |
| 114. |
An alternative to bonus method of distribution of surplus is |
| A. | apsation method |
| B. | ontribution method |
| C. | ccumulation method |
| D. | one of the above |
| Answer» C. ccumulation method | |
| 115. |
Which of the following are not a part of insurance planning? |
| A. | ife insurance |
| B. | ouse loans |
| C. | rotection of assets |
| D. | ealth insurance |
| Answer» C. rotection of assets | |
| 116. |
An insurance agent represents a/an |
| A. | nsurance company |
| B. | ub-agent |
| C. | o-agent |
| D. | roker |
| Answer» B. ub-agent | |
| 117. |
The term 'Money Laundering' would mean |
| A. | rocess of hiding the origin of the money |
| B. | urning illegal money into legal money |
| C. | ringing illegal money into economy |
| D. | ll of the above |
| Answer» E. | |
| 118. |
Which of the following statements are 'true'?1 : The premium under a group insurance policy is constant for all the time to come.2 : Section 45 of the Insurance Act does not apply to a one year policy. |
| A. | nly 1 |
| B. | nly 2 |
| C. | oth A & B |
| D. | one of the above |
| Answer» B. nly 2 | |
| 119. |
On foreclosure of a policy, which of the following is incorrect? |
| A. | othing is payable to the policyholder |
| B. | xcess amount (subsisting cash value after deducting loan/interest) is payable |
| C. | otice has to be given to the policyholder by the insurer |
| D. | one of the above |
| Answer» B. xcess amount (subsisting cash value after deducting loan/interest) is payable | |
| 120. |
If a policy document is lost, then |
| A. | laim may be settled on the basis of an indemnity bond |
| B. | n advertisement may have to be placed in a newspaper if the amount to be paid is high |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 121. |
_________ method of underwriting is suitable while deciding a complex case, e.g. whether to give insurance to someone who has acute diabetes. |
| A. | nstrumental |
| B. | anelling |
| C. | on-medical |
| D. | udgmental |
| Answer» E. | |
| 122. |
What are the two methods of underwriting? |
| A. | irect and indirect |
| B. | ccept and decline |
| C. | udgement and numerical |
| D. | pen-ended and close-ended |
| Answer» D. pen-ended and close-ended | |
| 123. |
Risk transfer through risk pooling is called |
| A. | avings |
| B. | nvestment |
| C. | nsurance |
| D. | isk mitigation |
| Answer» D. isk mitigation | |
| 124. |
Survey and inspection of a property is essential |
| A. | efore 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 | |
| 125. |
The main advantage of term insurance lies in |
| A. | rotection |
| B. | hrift |
| C. | avings |
| D. | rice |
| Answer» E. | |
| 126. |
Surplus would arise in an insurance company, if |
| A. | he actual experience is worse than what it had assumed |
| B. | he actual experience is better than what it had assumed |
| C. | he liabilities are under/over valued |
| D. | he assets are valued in a conservative manner |
| Answer» C. he liabilities are under/over valued | |
| 127. |
Cold calling is |
| A. | eeting the customers in winter |
| B. | eeting the customers when they are suffering from cold |
| C. | eeting people unannounced |
| D. | eeting the customers after fire has been extinguished |
| Answer» D. eeting the customers after fire has been extinguished | |
| 128. |
In relation to annuities, what does “liquidation period” refer to? |
| A. | eriod between the purchase of annuity and commencement of payments |
| B. | eriod during which the insurer makes annuity payments |
| C. | ime taken to build up the corpus |
| D. | nsolvency period |
| Answer» C. ime taken to build up the corpus | |
| 129. |
Maturity claim is payable when |
| A. | he insured survives the first 5 years |
| B. | he insured dies during policy term |
| C. | he insured is diagnosed with a critical illness |
| D. | he insured survives policy term |
| Answer» E. | |
| 130. |
When one is near to his retirement years, the risk profile of an individual could be |
| A. | rogressive |
| B. | ggressive |
| C. | ecured |
| D. | onservative |
| Answer» E. | |
| 131. |
Benefit under a Unit Linked policy is reckoned by |
| A. | he value of the units |
| B. | he number of units standing to the credit of the unit holder |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 132. |
Revival of a life insurance policy means |
| A. | orcing a policy to lapse |
| B. | einstating a lapsed policy |
| C. | ot paying the premiums |
| D. | on-settlement of claim monies |
| Answer» C. ot paying the premiums | |
| 133. |
When is it essential for insurable interest to be present in case of life insurance? |
| A. | t the time of taking out insurance |
| B. | t the time of claim |
| C. | nsurable interest is not required in case of life insurance |
| D. | ither at time of policy purchase or at the time of claim |
| Answer» B. t the time of claim | |
| 134. |
Which of the following factors are taken into account for financial underwriting? |
| A. | ncome |
| B. | ccupation |
| C. | ifestyle/habits |
| D. | ll of the above |
| Answer» E. | |
| 135. |
If assets are overvalued, the result would be |
| A. | ore surplus |
| B. | ess surplus |
| C. | ore or less surplus |
| D. | ew business strain |
| Answer» B. ess surplus | |
| 136. |
Which of the following are correct? |
| A. | rospecting is building a list of persons who can be approached for life insurance |
| B. | arketing includes an exercise to meet the account holders of a bank |
| C. | eeting known and familiar people who can give an agent interview for life insurance purposes is useful |
| D. | ll of the above |
| Answer» E. | |
| 137. |
Which of the following funds provides for predominant investment in equities? |
| A. | quity fund |
| B. | ebt fund |
| C. | alanced fund |
| D. | oney market fund |
| Answer» B. ebt fund | |
| 138. |
The insurer’s right to reject a claim under a policy is subject to which of the following sections of the Insurance Act, 1938? |
| A. | ection 38 |
| B. | ection 39 |
| C. | ection 44 |
| D. | ection 45 |
| Answer» E. | |
| 139. |
On which of the following does amount of annuity payable depend?1. Principal sum of money2. Investment period3. Rate of return4. Duration of annuity payments |
| A. | and 2 |
| B. | , 2 and 3 |
| C. | , 3 and 4 |
| D. | , 2 , 3 and 4 |
| Answer» E. | |
| 140. |
Which of the following actions showcases the principle of “uberrima fides”? |
| A. | ying about known medical conditions on an insurance proposal form |
| B. | ot revealing known material facts on an insurance proposal form |
| C. | isclosing known material facts at the time of taking the policy |
| D. | aying premium on time |
| Answer» D. aying premium on time | |
| 141. |
A standalone health insurance company is |
| A. | health insurance company which has only one office throughout the country |
| B. | life insurance company selling general insurance products like health insurance |
| C. | general insurance company which sells only health products |
| D. | ll of the above |
| Answer» D. ll of the above | |
| 142. |
A policy with cover for an indefinite term is called |
| A. | hole life |
| B. | ndowment |
| C. | oney back |
| D. | erm insurance |
| Answer» B. ndowment | |
| 143. |
Which of the following is NOT true regarding ULIP? |
| A. | unit holder can choose between different kinds of funds |
| B. | ife insurer provides guarantee for unit values |
| C. | nits may be purchased by payment of a single premium or by 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 by regular premium payments | |
| 144. |
All of the following are elements of a valid contract, except |
| A. | ffer and acceptance |
| B. | apacity to pay premiums |
| C. | onsideration |
| D. | apacity of the parties |
| Answer» C. onsideration | |
| 145. |
In which of the following cases is insurable interest not present? |
| A. | person insuring his own life |
| B. | father taking out a life policy on the life of his son |
| C. | person insuring his colleague |
| D. | n employer taking a life insurance policy on his employees |
| Answer» D. n employer taking a life insurance policy on his employees | |
| 146. |
Reversionary bonus is declared as an amount |
| A. | er thousand premium paid |
| B. | er thousand surplus of the company |
| C. | er hundred premium paid |
| D. | er thousand sum insured |
| Answer» E. | |
| 147. |
Which of the following plans have several limitations? |
| A. | raditional cash value plans |
| B. | on-traditional plans |
| C. | oth A & B |
| D. | one of the above |
| Answer» B. on-traditional plans | |
| 148. |
Which of the following is untrue as per IRDA’s regulations on non-par policies? |
| A. | he benefits shall be stated at the outset |
| B. | he benefits shall be linked to some index |
| C. | he additional benefit under these policies shall be laid out at the outset |
| D. | he return shall be stated at the beginning of the contract itself |
| Answer» C. he additional benefit under these policies shall be laid out at the outset | |
| 149. |
Which of the following policies is suitable for a person who cannot temporarily afford to pay high premiums? |
| A. | onvertible Endowment |
| B. | onvertible Money Back |
| C. | onvertible ULIP |
| D. | onvertible Whole Life |
| Answer» E. | |
| 150. |
Which of the following statements is incorrect with regards to decreasing term assurance? |
| A. | eath benefit amount decreases with term of coverage |
| B. | remium amount decreases with term of coverage |
| C. | remium remains leveled throughout the term |
| D. | ortgage redemption plans are an example of decreasing term assurance plans |
| Answer» C. remium remains leveled throughout the term | |