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.
| 301. |
It would be advantageous to Revive a lapsed policy rather than taking a new policy. Most apt reason is - |
| A. | resh conditions may be imposed under a new policy |
| B. | olicyholder may not get the same policy benefits |
| C. | hat policy may longer be available for sale |
| D. | remium under a new policy would be more based on his latest age |
| Answer» E. | |
| 302. |
When a medical report would be called at the time of revival? |
| A. | hen the policy is in a lapsed condition for a long period |
| B. | f health problem is present |
| C. | f the sum assured is high |
| D. | ll of the above |
| Answer» E. | |
| 303. |
If a policy is lapsed for a very short period of time only, what would be the requirement:- |
| A. | edical Report |
| B. | edical Underwriting |
| C. | ertificate of good health |
| D. | one of the above |
| Answer» D. one of the above | |
| 304. |
Satisfactory evidence of insurability would mean – |
| A. | atisfactory premium payment |
| B. | atisfactory evidence of health |
| C. | atisfactory proposal form |
| D. | atisfactory terms and conditions |
| Answer» C. atisfactory proposal form | |
| 305. |
Revival would be subject to – |
| A. | o increase in risk cover |
| B. | reation of reserve |
| C. | atisfactory evidence of insurability |
| D. | ll of the above |
| Answer» E. | |
| 306. |
Which will act as a proof of premium payment should any dispute arise as to premium payment? |
| A. | .P.R. |
| B. | .P.R |
| C. | roposal form |
| D. | olicy document |
| Answer» C. roposal form | |
| 307. |
Which is a Premium receipt? |
| A. | irst Premium Receipt |
| B. | enewal Premium Receipt |
| C. | oth A & B |
| D. | one of the three |
| Answer» D. one of the three | |
| 308. |
Which is evidence of commencement of contract/risk cover? |
| A. | olicy document |
| B. | rospectus |
| C. | roposal form |
| D. | PR |
| Answer» E. | |
| 309. |
When free look period under a policy would commence? |
| A. | ate of commencement |
| B. | ate of receipt of policy bond |
| C. | ate of FPR |
| D. | ny time |
| Answer» C. ate of FPR | |
| 310. |
The free look period available to cancel a policy is – |
| A. | 5 days |
| B. | 0 days |
| C. | 5 days |
| D. | 0 days |
| Answer» B. 0 days | |
| 311. |
Revival of a policy is not a _________ right of the insured. |
| A. | onditional |
| B. | nconditional |
| C. | egal |
| D. | undamental |
| Answer» C. egal | |
| 312. |
If the policyholder dies within grace period – |
| A. | laim will be rejected |
| B. | laim will be paid subject to policy conditions |
| C. | laim is payable after deducting the prem |
| D. | one of the above |
| Answer» D. one of the above | |
| 313. |
When a policy is said to lapse? |
| A. | f premiums are paid within grace period |
| B. | f premiums are paid after grace period |
| C. | f premiums are not paid after grace period |
| D. | f premiums are not paid within grace period |
| Answer» E. | |
| 314. |
What is the standard length of a grace period under a life insurance policy? |
| A. | ne month not more than 30 days |
| B. | ne month not less than 31 days |
| C. | ne month not more than 31 days |
| D. | ne month not less than 30 days |
| Answer» C. ne month not more than 31 days | |
| 315. |
‘Clause’ under a life insurance policy means – |
| A. | isk not covered |
| B. | isk covered |
| C. | urrender |
| D. | oan facility |
| Answer» B. isk covered | |
| 316. |
Specific policy provisions may contain – |
| A. | lan and Term |
| B. | lause |
| C. | ights/Privileges |
| D. | olicy Number |
| Answer» C. ights/Privileges | |
| 317. |
Standard provisions of a policy contains which of the following information? |
| A. | ights/Privileges |
| B. | um insured |
| C. | able and Term |
| D. | olicy Number |
| Answer» B. um insured | |
| 318. |
Which of the following information is not found in the Policy Schedule? |
| A. | lan and Term |
| B. | um insured |
| C. | ights/Privileges |
| D. | olicy Number |
| Answer» D. olicy Number | |
| 319. |
What are the parts of a policy bond? |
| A. | olicy schedule |
| B. | tandard provisions |
| C. | pecific provisions |
| D. | ll of the above |
| Answer» E. | |
| 320. |
Which is evidence of contract? |
| A. | olicy document |
| B. | rospectus |
| C. | roposal form |
| D. | PR |
| Answer» B. rospectus | |
| 321. |
To ascertain which of the following Age proof is not required: |
| A. | ssessment of Risk profile |
| B. | remium paying capacity |
| C. | ixing the premium |
| D. | ll of the above |
| Answer» C. ixing the premium | |
| 322. |
Moral Hazard Report is completed by _________ |
| A. | fficial of the Company |
| B. | gent |
| C. | edical Examiner |
| D. | roposer |
| Answer» B. gent | |
| 323. |
What does moral hazard indicate? |
| A. | he possibility that client would undertake dangerous expeditions after taking a policy |
| B. | he possibility of ending own life or the life of another |
| C. | oth the above instances |
| D. | one of the three |
| Answer» D. one of the three | |
| 324. |
When medical report of the life insured is essential? |
| A. | um proposed or age is high |
| B. | edical characteristics of the proposer |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 325. |
Which of the following information is not contained in a Medical Examiner’s Report? |
| A. | revious policy particulars |
| B. | eight, weight, BP of the proponent |
| C. | oth A & B |
| D. | one of the above |
| Answer» B. eight, weight, BP of the proponent | |
| 326. |
Objective of KYC guidelines is to prevent – |
| A. | dentity theft |
| B. | inancial fraud |
| C. | oney laundering |
| D. | ll of the above |
| Answer» E. | |
| 327. |
What are the KYC documents? |
| A. | hoto |
| B. | ddress proof |
| C. | roof of Identify |
| D. | ll of the above |
| Answer» E. | |
| 328. |
As per PML Act, 2002, which came into effect from 2005, money laundering is punishable by |
| A. | igorous imprisonment for 3 - 7 years |
| B. | ine of Rs.5 lakhs |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 329. |
Which is a standard age proof? |
| A. | oroscope |
| B. | ation card |
| C. | AN card |
| D. | elf declaration |
| Answer» D. elf declaration | |
| 330. |
Which is a not a standard age proof? |
| A. | AN card |
| B. | aptism Certificate |
| C. | ervice Register |
| D. | ation card |
| Answer» E. | |
| 331. |
Which is not provided in a Prospectus? |
| A. | erms & conditions |
| B. | cope of benefits |
| C. | ocuments required for claim |
| D. | ntitlements |
| Answer» D. ntitlements | |
| 332. |
Prospectus is a document which is _________ |
| A. | asis of the contract |
| B. | ontract |
| C. | vidence of contract |
| D. | roviding details about product |
| Answer» E. | |
| 333. |
Terminal Bonus would _________ with the duration/term of the policy. |
| A. | ncrease |
| B. | ecrease |
| C. | ither increase/decrease |
| D. | ear no connection |
| Answer» B. ecrease | |
| 334. |
Which is a bonus? |
| A. | imple reversionary bonus |
| B. | ompound reversionary bonus |
| C. | erminal bonus |
| D. | ny of the above |
| Answer» E. | |
| 335. |
In respect of Bonuses, which of the following is incorrect? |
| A. | onuses once declared, get attached to the policy and can’t be taken away |
| B. | onuses form part of liability of a company |
| C. | remiums need not have been paid for a specified no. of years |
| D. | ll of the above |
| Answer» D. ll of the above | |
| 336. |
Number of cases which gets accepted by the underwriting under Non-medical are – |
| A. | ery small |
| B. | mall |
| C. | arge |
| D. | ot significant |
| Answer» D. ot significant | |
| 337. |
What is lien? |
| A. | n underwriting decision where increased death benefit would be payable |
| B. | n underwriting decision where decreased death benefit would be payable |
| C. | decision which does not alter the death benefit |
| D. | one of the three |
| Answer» C. decision which does not alter the death benefit | |
| 338. |
The medical opinion could be taken from – |
| A. | ny Doctor |
| B. | edical Referee |
| C. | edical Consultant |
| D. | edical Practitioner |
| Answer» C. edical Consultant | |
| 339. |
What are the 2 methods of underwriting? |
| A. | irect & indirect |
| B. | ccept or decline |
| C. | udgement & Numerical |
| D. | penended & closeended methods |
| Answer» D. penended & closeended methods | |
| 340. |
If a life has an anticipated mortality significantly lower than standard lives and could be charged lower premium the life is a – |
| A. | tandard life |
| B. | ub-standard life |
| C. | eclined risk |
| D. | referred risks |
| Answer» E. | |
| 341. |
Anti-selection means - |
| A. | endency of people who expect loss to take insurance eagerly leading to loss to the insurer |
| B. | endency of people to go for small amount of insurance |
| C. | endency of people who have good health to go for insurance |
| D. | on evincing keen interest in buying an insurance |
| Answer» B. endency of people to go for small amount of insurance | |
| 342. |
Which type of alterations amongst the following is not permitted? |
| A. | eduction in sum assured |
| B. | hange in mode of premium payment |
| C. | orrection in name |
| D. | ncrease in risk |
| Answer» E. | |
| 343. |
Assignee can do another _________ but cannot do _________ |
| A. | omination, Assignment |
| B. | omination, Surrender |
| C. | ssignment, Foreclosure |
| D. | ssignment, Nomination |
| Answer» E. | |
| 344. |
Who can do a nomination under the policy? |
| A. | ssignor |
| B. | ssignee |
| C. | ife Insured |
| D. | ominee |
| Answer» D. ominee | |
| 345. |
In respect of Assignment which of the following is correct? |
| A. | ssignee becomes owner of the policy |
| B. | ssignee cannot have better rights than assignor |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 346. |
What is common between nomination and assignment? |
| A. | oth can be done at the time of taking the policy |
| B. | oth are done as per Insurance Act, 1938 |
| C. | oth involve transfer of rights under the policy |
| D. | one of the above |
| Answer» C. oth involve transfer of rights under the policy | |
| 347. |
The person who transfer rights is called _________ and the person who receives the right is called _________ |
| A. | ominee, Assignee |
| B. | ppointee, Assignee |
| C. | ssignor, Assignee |
| D. | ender, Loanee |
| Answer» D. ender, Loanee | |
| 348. |
Assignment involves transfer of _________ under the policy to another person/entity. |
| A. | ights |
| B. | itle |
| C. | wnership |
| D. | ny of the above |
| Answer» E. | |
| 349. |
Where more than one nominee is nominated – |
| A. | he death claim monies will be shared |
| B. | he death claim monies is payable jointly |
| C. | oth A & B |
| D. | one of the above is correct |
| Answer» C. oth A & B | |
| 350. |
In respect of nomination, which one of the following is incorrect? |
| A. | here the nominee is a minor, an appointee has to be appointed |
| B. | he appointee has to given his/her written consent |
| C. | ominee has right to whole/part of the claim |
| D. | one of the above |
| Answer» D. one of the above | |