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.
| 201. |
Of 400 houses costing each Rs.20, 000 if on an average 4 houses are damaged in fire causing a total loss of Rs80,000 what should be the annual contribution of each house owner. |
| A. | s.800 |
| B. | s.200 |
| C. | s.100 |
| D. | s.400 |
| Answer» C. s.100 | |
| 202. |
Which of the below losses are covered under keyman insurance? |
| A. | roperty thef |
| B. | osses related to the extended period when a key person is unable to work |
| C. | eneral liability |
| D. | osses caused due to errors and omission |
| Answer» C. eneral liability | |
| 203. |
Which of the following statements are correct?i. In order to be insurable, a risk must be capable of statistical estimation.ii. In insurance, only economic or financial losses can be compensated. |
| A. | tatement i is correct |
| B. | tatement ii is correct |
| C. | oth statements i and ii are correct |
| D. | one of the three |
| Answer» D. one of the three | |
| 204. |
Coverage against loss through stealing by individuals not in a position of trust is called _________ |
| A. | ospital Insurance |
| B. | ull Insurance |
| C. | roup Insurance |
| D. | heft Insurance |
| Answer» E. | |
| 205. |
A coverage that protects businesses engaged in electronic commerce from losses caused by hackers is termed as _________ |
| A. | ospital Insurance |
| B. | ospital Insurance |
| C. | acker Insurance |
| D. | dentity theft Insurance |
| Answer» D. dentity theft Insurance | |
| 206. |
Which policy referring to policies that provide coverage only for the loss caused by the perils? |
| A. | pecifies perils |
| B. | amed Perils |
| C. | ll Risk |
| D. | ll perils |
| Answer» C. ll Risk | |
| 207. |
Naveen is addressing his income needs by investing directly in corporate bonds. In what form will he receive this income? |
| A. | nnuity instalments |
| B. | ividend payments |
| C. | nterest payments |
| D. | ental payments |
| Answer» D. ental payments | |
| 208. |
When undertaking financial planning for individuals without capital, what savings need is likely to be addressed in every single case? |
| A. | mergency funds |
| B. | unds for children's savings |
| C. | unds for educational costs |
| D. | ouse purchase funds |
| Answer» B. unds for children's savings | |
| 209. |
An insurance agent is typically a representative of |
| A. | ustomer |
| B. | nsurance company |
| C. | overnment |
| D. | RDA |
| Answer» C. overnment | |
| 210. |
Restructuring of debts refers to |
| A. | wapping less interest loans with more interest loans |
| B. | odification of the terms of a loan to debtor who could default on payments |
| C. | losing all outstanding loans |
| D. | oing for more and more borrowings |
| Answer» C. losing all outstanding loans | |
| 211. |
Terminal bonus is payable at the time of |
| A. | urrender |
| B. | aturity/death |
| C. | oan |
| D. | one of the three |
| Answer» C. oan | |
| 212. |
Which of the following could be termed as a transactional product? |
| A. | nsurance |
| B. | hares |
| C. | eal estate |
| D. | ank deposits |
| Answer» E. | |
| 213. |
Who could not be a claimant under a policy? |
| A. | ppointee |
| B. | ssignee |
| C. | egal heir |
| D. | inor nominee |
| Answer» E. | |
| 214. |
Which is not a recent phenomenon in health insurance industry segment? |
| A. | ospital chains are allowed by IRDA to enter health insurance business |
| B. | remendous growth of health insurance business is tapped by standalone companies |
| C. | tandalone companies are specifically barred from covering rural masses |
| D. | one of the above |
| Answer» D. one of the above | |
| 215. |
In what plan of insurance is medical examination never required? |
| A. | ndowment |
| B. | ure endowment |
| C. | roup insurance |
| D. | erm assurance |
| Answer» B. ure endowment | |
| 216. |
In a money back plan, what is the death claim payable? |
| A. | um insured |
| B. | um insured less survival benefits paid already |
| C. | onus |
| D. | othing is payable |
| Answer» B. um insured less survival benefits paid already | |
| 217. |
In which of the following types of claim will insurer order an investigation? |
| A. | arly death claim |
| B. | on-early claim |
| C. | aturity claim |
| D. | urrender |
| Answer» B. on-early claim | |
| 218. |
The dividends declared under contribution method can be |
| A. | aid by cash or by reducing future premiums |
| B. | llowed to purchase non-forfeitable paid up additions |
| C. | ccumulated with interest to be withdrawn at the option of the policy holder |
| D. | one of the three |
| Answer» E. | |
| 219. |
According to common law, when should insurable interest be present in a life 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» B. t the time of claim | |
| 220. |
Prospecting in an insurance sale is |
| A. | athering the names of people who may be interested in insurance |
| B. | reparing a list of all the persons in a city |
| C. | nlisting all the policyholders of a branch office |
| D. | reparing a list of all the agents in a neighborhood |
| Answer» B. reparing a list of all the persons in a city | |
| 221. |
Exclusions in a health insurance policy mean |
| A. | iseases covered under health cover |
| B. | iseases specifically not covered |
| C. | oth A & B |
| D. | one of the above |
| Answer» C. oth A & B | |
| 222. |
If a policyholder dies within the grace period, then |
| A. | he claim will be rejected |
| B. | he claim will be paid subject to policy conditions |
| C. | he claim is payable after deducting the premium |
| D. | one of the above |
| Answer» D. one of the above | |
| 223. |
Which of the following options are correct? |
| A. | otice of assignment has to be given to the insurer |
| B. | otice of nomination has to be given to the insurer |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 224. |
In traditional life insurance policies, the investment risk is borne by the _________, while in unit linked plans, the investment risk is borne by the _________. |
| A. | olicyholder, unitholder |
| B. | nsurance company, unitholder |
| C. | nsurance company, insurance company |
| D. | olicyholder, insurer |
| Answer» C. nsurance company, insurance company | |
| 225. |
Who is primary underwriter or field underwriter? |
| A. | evelopment officer |
| B. | nsured |
| C. | gent |
| D. | nsurer |
| Answer» D. nsurer | |
| 226. |
The need for investment advice from an insurance agent normally results from what overriding key factor? |
| A. | bsence of any long-term goals |
| B. | nability to prioritise future financial needs |
| C. | ack of market knowledge |
| D. | hortage of available funds |
| Answer» D. hortage of available funds | |
| 227. |
Raunak recently arranged a life insurance policy under which he is classed as the master policyholder. This addresses his role as |
| A. | creditor |
| B. | debtor |
| C. | n employee |
| D. | n employer |
| Answer» E. | |
| 228. |
The main protection need of a 19-year-old is most likely to be |
| A. | elf-protection |
| B. | ome loan protection |
| C. | rotection of dependants |
| D. | rotection of children's future |
| Answer» B. ome loan protection | |
| 229. |
What normally happens to the sum insured under a life insurance policy once the period of the lien expires? |
| A. | t reduces |
| B. | t increases |
| C. | t is temporarily suspended |
| D. | t is replaced by a newly-underwritten sum insured |
| Answer» C. t is temporarily suspended | |
| 230. |
The amount paid out by the insurer under a 30-year life insurance policy exceeded the sum insured plus revisionary bonuses. The excess is likely to result from? |
| A. | harges refunded |
| B. | frequency loading |
| C. | tax rebate |
| D. | terminal bonus |
| Answer» E. | |
| 231. |
Which bank is the sponsor of Prathama Gramin Bank? |
| A. | ank of Baroda |
| B. | ndian Bank |
| C. | unjab National Bank |
| D. | yndicate Bank |
| Answer» E. | |
| 232. |
What are true about IMF? |
| A. | t's headquarter is situated at Washington, D.C |
| B. | t works to foster economic stability and global growth by providing policy, advice and financing to members |
| C. | t negotiates conditions on lending and loans under their policy |
| D. | t oversees the fixed exchange rate arrangements between countries |
| E. | ll of these |
| Answer» F. | |
| 233. |
Which of the following organization decides Repo Rate? |
| A. | EBI |
| B. | MF |
| C. | MFI |
| D. | BI |
| Answer» E. | |
| 234. |
Fiscal policy is related with which of the following? |
| A. | ublic Revenue and Expenditure |
| B. | ducation for All |
| C. | mport and Export |
| D. | mport and Export |
| Answer» B. ducation for All | |
| 235. |
When an underwriter has to be very careful? |
| A. | hen sum insured is very small |
| B. | hen sum insured is very large |
| C. | hen income is very small |
| D. | hen income is very high |
| Answer» C. hen income is very small | |
| 236. |
Declined life means |
| A. | ife to which insurance could be granted |
| B. | ife to which insurance cover could not be granted at affordable cost |
| C. | oth A & B |
| D. | one of the above |
| Answer» C. oth A & B | |
| 237. |
It would be advantageous to go for a family floater rather than non-floater due to the reason that |
| A. | igher cover would help any family member in case of high cost treatment |
| B. | remiums are considerably lower than where cover is taken for individual members |
| C. | oth A & B |
| D. | one of the three |
| Answer» D. one of the three | |
| 238. |
_________ is an annuity with an infinite life and continuous annual payments. |
| A. | PR |
| B. | mortized loan |
| C. | erpetuity |
| D. | rincipal |
| Answer» D. rincipal | |
| 239. |
Which of the following statements are true about Co-operative Banks in India? |
| A. | t has a three-tier set-up |
| B. | tate Co-operative Banks does not have access to RBI |
| C. | t is an urban oriented Bank |
| D. | t functions on sound business principles |
| Answer» B. tate Co-operative Banks does not have access to RBI | |
| 240. |
Which of the following statements are true about NABARD? |
| A. | t is a development bank in the sector of Regional Rural Banks in India |
| B. | t provides and regulates credits in the rural area |
| C. | t gives assistance for the promotion and development of rural sectors, mainly agriculture |
| D. | t finances rural crafts |
| E. | ll of these. |
| Answer» F. | |
| 241. |
In which city the head office of Corporation Bank is situated? |
| A. | engaluru |
| B. | umbai |
| C. | angalore |
| D. | olkata |
| Answer» D. olkata | |
| 242. |
Which bank has started as a private shareholders bank, mostly by European shareholders? |
| A. | ank of India |
| B. | ank of Baroda |
| C. | ena Bank |
| D. | mperial Bank of India |
| Answer» E. | |
| 243. |
Which was the first Indian bank started solely with Indian Capital? |
| A. | unjab National Bank |
| B. | ndhra Bank |
| C. | ndian Overseas Bank |
| D. | yndicate Bank |
| Answer» B. ndhra Bank | |
| 244. |
Which is the first Indian Commercial Bank that was fully owned and managed by Indians? |
| A. | tate Bank of India |
| B. | llahabad Bank |
| C. | entral Bank of India |
| D. | anara Bank |
| Answer» D. anara Bank | |
| 245. |
What is the time limit set for an insurer by IRDA Regulations for settling non-early claims from date of receipt of all documents. |
| A. | days |
| B. | 0 days |
| C. | 5 days |
| D. | 0 days |
| Answer» E. | |
| 246. |
What is the time limit set for an insurer by IRDA Regulations for calling for documents from the date of receipt of claim intimation? |
| A. | days |
| B. | 0 days |
| C. | 5 days |
| D. | 0 days |
| Answer» D. 0 days | |
| 247. |
A person can be presumed to be dead if he has not been heard about for |
| A. | years |
| B. | years |
| C. | years |
| D. | 0 years |
| Answer» D. 0 years | |
| 248. |
As per Section 45 of Insurance Act, 1938, an insurance company can reject a claim within 2 years from issuance of policy if the material facts in the proposal are proved _________ |
| A. | rue |
| B. | alse |
| C. | ot worthy |
| D. | rrelevant |
| Answer» C. ot worthy | |
| 249. |
Section 45 of Insurance Act, 1938 safeguards the interests of – |
| A. | nsurers |
| B. | olicyholders |
| C. | ssignees |
| D. | ominees |
| Answer» C. ssignees | |
| 250. |
A claim arising within _________ years of taking a policy is called an Early claim. |
| A. | ne |
| B. | wo |
| C. | hree |
| D. | our |
| Answer» D. our | |