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.
| 151. |
Health plus life combo products would mean a combination of |
| A. | ealth insurance from a non-life company and life cover from a life insurance company |
| B. | ealth insurance from a standalone health company and life cover from a life insurance company |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 152. |
Which of the following forms is not required for settlement of a death claim? |
| A. | eclaration of good health |
| B. | ertificate of cremation/burial |
| C. | hysician certificate |
| D. | eath certificate |
| Answer» B. ertificate of cremation/burial | |
| 153. |
An insurance contract terminates after _________ is paid. |
| A. | oan |
| B. | uman Life Value |
| C. | conomic value |
| D. | laim |
| Answer» E. | |
| 154. |
How can a complaint be launched with an Insurance Ombudsman? |
| A. | he complaint is to be made in writing |
| B. | he complaint is to be made orally over the phone |
| C. | he complaint is to be made orally in case of a face to face manner |
| D. | he complaint is to be made through newspaper advertisement |
| Answer» B. he complaint is to be made orally over the phone | |
| 155. |
Surrender value is a percentage of |
| A. | nvestment value excluding interest |
| B. | oan value |
| C. | aid-up value |
| D. | apital invested |
| Answer» D. apital invested | |
| 156. |
A non-early claim is a claim occurring after _________ of taking a policy of insurance. |
| A. | ne year |
| B. | wo years |
| C. | hree years |
| D. | our years |
| Answer» D. our years | |
| 157. |
Are there any charges that need to be paid for lodging a complaint with ombudsman? |
| A. | fee of Rs. 100 needs to be paid |
| B. | o fees or charges need to be paid |
| C. | 0% of relief sought must be paid as fee |
| D. | 0% of the relief sought must be paid as fee |
| Answer» C. 0% of relief sought must be paid as fee | |
| 158. |
Which of the following is not a pre-requisite for launching a complaint with ombudsman? |
| A. | he complaint must be made by an individual on a 'Personal Lines' insurance |
| B. | he complaint must be lodged within 1 year of the insurer rejecting the complaint |
| C. | omplainant has to approach a consumer forum prior to ombudsman |
| D. | he total relief sought must be within an amount of Rs. 20 lakh |
| Answer» D. he total relief sought must be within an amount of Rs. 20 lakh | |
| 159. |
What is the time for approaching an insurance ombudsman? |
| A. | ithin two years of rejection of the complaint by the insurer |
| B. | ithin three years of rejection of the complaint by the insurer |
| C. | ithin one year of rejection of the complaint by the insurer |
| D. | ithin one month of rejection of the complaint by the insurer |
| Answer» D. ithin one month of rejection of the complaint by the insurer | |
| 160. |
Insurance is not gambling because of the presence of |
| A. | rinciple of utmost good faith |
| B. | nsurable interest |
| C. | ndemnity principle |
| D. | one of the above |
| Answer» C. ndemnity principle | |
| 161. |
According to common law, when should insurable interest be present in a general insurance contract? |
| A. | t the time of taking policy |
| B. | t the time of claim |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 162. |
Which of the following consumer grievance redressal agencies would handle consumer disputes amounting between rupees 20 lakh and 100 lakh? |
| A. | istrict Forum |
| B. | tate Commission |
| C. | ational Commission |
| D. | ila Parishad |
| Answer» C. ational Commission | |
| 163. |
At what stage in one’s life will savings make an impact on him? |
| A. | ost retirement |
| B. | hile he is earning |
| C. | hile he is a student |
| D. | hen he is just married |
| Answer» B. hile he is earning | |
| 164. |
Mahesh ran a business on borrowed capital. After his sudden demise, all the creditors are doing their best to go after Mahesh’s assets. Which of the below assets is beyond the reach of the creditors? |
| A. | roperty under Mahesh's name |
| B. | ahesh's bank accounts |
| C. | erm life insurance policy purchased under section 6 of the MWP Act |
| D. | utual funds owned by Mahesh |
| Answer» D. utual funds owned by Mahesh | |
| 165. |
As per IRDA (Protection of Policyholder’s Interest) Regulations, 2002, a claim under a life policy shall be paid or be disputed within |
| A. | days |
| B. | 5 days |
| C. | 0 days |
| D. | 5 days |
| Answer» D. 5 days | |
| 166. |
License to work as an insurance agent is issued by |
| A. | eneral Insurance Corporation (GIC) |
| B. | nsurance Regulatory and Development Authority (IRDA) |
| C. | tate Bank of India (SBI) |
| D. | ost Office |
| Answer» C. tate Bank of India (SBI) | |
| 167. |
AML programme of an insurance company includes |
| A. | nternal policies and controls |
| B. | ppointment of a Principal Compliance Officer |
| C. | nternal audit/control |
| D. | ll of the above |
| Answer» E. | |
| 168. |
An insurance company needs assets for |
| A. | inancing a new business |
| B. | enerating more competitive returns |
| C. | reater leverage in investment |
| D. | ll of the above |
| Answer» E. | |
| 169. |
Which of the following statements is correct with regard to the territorial jurisdiction of the Insurance Ombudsman? |
| A. | nsurance Ombudsman has national jurisdiction |
| B. | nsurance Ombudsman has state jurisdiction |
| C. | nsurance Ombudsman has direct jurisdiction |
| D. | nsurance Ombudsman operates only within the specified territorial limits |
| Answer» E. | |
| 170. |
Which of the following will be the most appropriate option for an aggrieved customer to lodge an insurance policy related complaint? |
| A. | olice |
| B. | upreme Court |
| C. | nsurance Ombudsman |
| D. | istrict Court |
| Answer» D. istrict Court | |
| 171. |
Which of the following statements are true with regard to MWP Act cases?I: Maturity claim cheques are paid to policyholder.II: Maturity claim cheques are paid to trustee. |
| 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 | |
| 172. |
Which regulation deals with claim procedure? |
| A. | RDA (Licencing of Agents) Regulations, 2000 |
| B. | RDA (Protection of Policyholders' Interests) Regulations, 2002 |
| C. | nsurance Act, 1938 |
| D. | overnment of India directives |
| Answer» C. nsurance Act, 1938 | |
| 173. |
As per IRDA regulations issued, what is the grace period allowed beyond the expiry date of a policy for renewal? |
| A. | 0 days |
| B. | 0 days |
| C. | 5 days |
| D. | 0 days |
| Answer» C. 5 days | |
| 174. |
In a standard insurance policy document, the standard provisions section will have information on which of the following? |
| A. | ate of commencement, date of maturity and due date of last premium |
| B. | ame of the nominee |
| C. | he rights and privileges and other conditions which are applicable under the contract |
| D. | he signature of the authorized signatory and policy stamp |
| Answer» D. he signature of the authorized signatory and policy stamp | |
| 175. |
To whom should licence fees be paid? |
| A. | ontroller of Insurance |
| B. | he Insurer |
| C. | he IRDA |
| D. | one of the three |
| Answer» B. he Insurer | |
| 176. |
Traditional cash value plans are also known as |
| A. | nbundled plans |
| B. | undled plans |
| C. | nnuity |
| D. | LIP |
| Answer» C. nnuity | |
| 177. |
Which of the following is incorrect with regards to portfolio method? |
| A. | he total investment return is shared between policyholders |
| B. | o attempt is made to distinguish between investments of previous years over current investments |
| C. | his method gives homogenized rates of return |
| D. | one of the above |
| Answer» E. | |
| 178. |
Which of the following is not a traditional type of product offered by insurance companies? |
| A. | hole life plan |
| B. | ndowment plan |
| C. | oneyback plan |
| D. | LIP |
| Answer» E. | |
| 179. |
The _________ the premium paid by you towards your life insurance, the _________ will be the compensation paid to the beneficiary in the event of your death. |
| A. | igher, higher |
| B. | ower, higher |
| C. | igher, lower |
| D. | aster, slower |
| Answer» B. ower, higher | |
| 180. |
Which of the following is not correct with regards to insurable interest? |
| A. | ather taking out insurance policy on his son |
| B. | pouses taking out insurance on one another |
| C. | riends taking out insurance on one another |
| D. | mployer taking out insurance on employees |
| Answer» D. mployer taking out insurance on employees | |
| 181. |
Insurability of women is governed by |
| A. | eed for insurance |
| B. | apacity to pay premiums |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 182. |
What are the reason(s) for increase in health insurance in India? |
| A. | ealth consciousness |
| B. | ncreased longevity |
| C. | ncrease in income |
| D. | ll of the above |
| Answer» E. | |
| 183. |
Insurance benefits replace |
| A. | ll physical losses, in full |
| B. | ll physical losses, partly |
| C. | ll monetary losses, in full |
| D. | he monetary losses, but only to some extent |
| Answer» E. | |
| 184. |
Insurance is legitimate |
| A. | hen an adverse happening is likely |
| B. | hen an adverse happening is unlikely |
| C. | hen an adverse happening is certain |
| D. | n all the above three situations |
| Answer» B. hen an adverse happening is unlikely | |
| 185. |
The changes in healthcare costs over recent years has had what general impact on healthcare insurance? |
| A. | fall in average premium levels |
| B. | reduction in underwriting requirements |
| C. | rise in the need for cover |
| D. | strengthening of the insurable interest rules |
| Answer» D. strengthening of the insurable interest rules | |
| 186. |
The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to |
| A. | ancel a health-based exclusion after a symptom-free period |
| B. | nclude his parents under the policy |
| C. | ncrease cover when a key life event occurs |
| D. | aintain cover despite a fall in investment value |
| Answer» D. aintain cover despite a fall in investment value | |
| 187. |
An investor holds a wide range of shares. If the Reserve Bank of India announces a series of significant interest rate increases, the prices of these shares are most likely to |
| A. | ecome volatile |
| B. | ecrease |
| C. | ncrease |
| D. | tagnate |
| Answer» C. ncrease | |
| 188. |
Nikhil is looking for tax-efficient savings methods for his disposable income. He is considering an equity-linked savings scheme, national savings certificates and an endowment insurance policy. Premiums for which of these investments are allowed to be deducted from his taxable income? |
| A. | he national savings certificates only |
| B. | he equity-linked savings scheme and the national savings certificates only |
| C. | he national savings certificates and the endowment insurance policy only |
| D. | he equity-linked savings scheme, the national savings certificates and the endowment insurance policy |
| Answer» E. | |
| 189. |
_________ is the maximum amount an insurance company will pay if an insured asset is deemed a total loss. |
| A. | nsurance value |
| B. | ctual value |
| C. | eplacement value |
| D. | uaranteed Replacement Cost |
| Answer» B. ctual value | |
| 190. |
Proximate Cause refer to the _________ cause which set in motion a chain of events producing loss. |
| A. | ctive |
| B. | fficient |
| C. | & B are correct |
| D. | one of the above |
| Answer» D. one of the above | |
| 191. |
_________ means that insurer would assess and compensate only the exact amount of loss. |
| A. | ertainty |
| B. | ncertainty |
| C. | robability |
| D. | ndemnity |
| Answer» E. | |
| 192. |
Cost of the risk would _________ with the probability and amount of loss |
| A. | ncrease |
| B. | ecrease |
| C. | ary |
| D. | one of the above |
| Answer» B. ecrease | |
| 193. |
_________ and _________ refer to measures to reduce chance of occurrence and measures to reduce degree of losses. |
| A. | oss Prevention, Loss damage |
| B. | oss Control, Loss management |
| C. | oss advantage, Loss prevention |
| D. | oss Prevention, Loss Reduction |
| Answer» E. | |
| 194. |
Secondary burden of risk consists of _________ and _________ one has to bear if exposed to loss situation. |
| A. | rials, tribulations |
| B. | osts, Strains |
| C. | ituations, Safeguards |
| D. | ircumstances, Conflicts |
| Answer» C. ituations, Safeguards | |
| 195. |
Apart from the salary level, what another key feature of Alok’s job is likely to have a major impact on the level of his pension, life insurance, and health insurance needs? |
| A. | hether the job is office or field-based |
| B. | he normal retirement age in relation to the job |
| C. | hether the job is in the public or private sector |
| D. | hether the job is manual or non-manual |
| Answer» D. hether the job is manual or non-manual | |
| 196. |
The sole focus during a client’s fact-find session was healthcare requirements and estate planning. Which main life stage is the most likely to fall into? |
| A. | oung married |
| B. | oung married with children |
| C. | re-retirement |
| D. | etirement |
| Answer» E. | |
| 197. |
Yash pays health insurance premiums for himself, his wife and his two children aged 13 and 8. Premiums for which of these individuals will qualify as deductible from Yash’s taxable income? |
| A. | ash only |
| B. | ash and his wife only |
| C. | ash, his wife and his oldest child |
| D. | ash, his wife and both his children |
| Answer» E. | |
| 198. |
The general need for a pension policy results from the existence of what key problem? |
| A. | nticipated fall in income |
| B. | ack of employment opportunities |
| C. | ikely deterioration in health |
| D. | ncertainty over investment performance |
| Answer» B. ack of employment opportunities | |
| 199. |
_________ consists of collecting premiums from numerous individuals to compensate the few who may suffer losses. |
| A. | ooling |
| B. | ontract |
| C. | uarantee |
| D. | RDA |
| Answer» B. ontract | |
| 200. |
The losses of a few are shared amongst many through the mechanism of – |
| A. | uclear family |
| B. | nsurance |
| C. | overnment |
| D. | ll of the above |
| Answer» C. overnment | |