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.
| 351. |
If both policy loan and premiums are not paid, the outstanding loan/interest may exceed the policy’s cash value. What would the insurer do in such an eventuality? |
| A. | urrender |
| B. | evival |
| C. | ancellation |
| D. | oreclosure |
| Answer» E. | |
| 352. |
In so far policy loans are concerned, which one of the following is correct? |
| A. | he policy has to be assigned in favour of the insurer |
| B. | uch an assignment will not cancel the nomination already made |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 353. |
What is the maximum %age of surrender value that can be granted as loan? |
| A. | 0 percent |
| B. | 5 percent |
| C. | 0 percent |
| D. | 0 percent |
| Answer» E. | |
| 354. |
Loan value is a percentage of – |
| A. | aid up value |
| B. | urrender Value |
| C. | evival Value |
| D. | one of the above |
| Answer» C. evival Value | |
| 355. |
Non-forfeiture provisions means accrual of certain benefits to policyholders if premiums are paid for at least |
| A. | ne year |
| B. | wo years |
| C. | hree years |
| D. | our years |
| Answer» D. our years | |
| 356. |
Who gets benefited if a policy is lapsed? |
| A. | nsurer |
| B. | nsured |
| C. | oth Insurer & Insured |
| D. | one of the above |
| Answer» E. | |
| 357. |
When instalment revival can be availed? |
| A. | hen policyholder is unable to pay full arrears of premium in lumpsum |
| B. | hen the policy could not be revived under special revival scheme |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 358. |
Under the loan cum revival which of the following is correct? |
| A. | he policyholder would pay full arrears of premium with interest like ordinary revival |
| B. | he loan granted would be used as a consideration amount and balance only payable |
| C. | oth A & B |
| D. | one of the above |
| Answer» C. oth A & B | |
| 359. |
An insurance company needs free assets for – |
| A. | inancing new business |
| B. | enerating more competitive returns |
| C. | reater leverage in investment |
| D. | ll of the above |
| Answer» E. | |
| 360. |
Free assets of a company are – |
| A. | istributed bonuses |
| B. | nallocated surpluses |
| C. | ividends |
| D. | ncumbered assets |
| Answer» C. ividends | |
| 361. |
If Assets/Liabilities are liberally valued, it would benefit – |
| A. | urrent policyholders |
| B. | uture policyholders |
| C. | either/nor current/future policyholders |
| D. | o impact at all on policyholder community |
| Answer» B. uture policyholders | |
| 362. |
If liabilities are overvalued, it would result in – |
| A. | ore bonuses to the policyholders |
| B. | ess bonuses to the present policyholders |
| C. | ore bonuses to the future policyholders |
| D. | ess bonuses to the future policyholders |
| Answer» C. ore bonuses to the future policyholders | |
| 363. |
If Assets are undervalued it would result in – |
| A. | ore surplus |
| B. | ess surplus |
| C. | ore or less surplus |
| D. | o effect on surplus |
| Answer» C. ore or less surplus | |
| 364. |
As part of Outpatient cover, which are the items that could not be covered? |
| A. | ental treatment |
| B. | ptical services |
| C. | ealth checkups |
| D. | urgery |
| Answer» E. | |
| 365. |
Which item of expense is not covered under a typical health insurance cover? |
| A. | heatre charges |
| B. | lood donation charges |
| C. | ed charges |
| D. | est reports |
| Answer» C. ed charges | |
| 366. |
Which is not a pension related contingency? |
| A. | ealth |
| B. | ongevity |
| C. | nflation |
| D. | nvestment risk |
| Answer» B. ongevity | |
| 367. |
Which is a dilemma of an old age person? |
| A. | ow much old age pension is to be provided |
| B. | here to invest the fund |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 368. |
Which type of Annuity will have 2 distinct phases? |
| A. | mmediate Annuity |
| B. | eferred Annuity |
| C. | pouse Annuity |
| D. | oint life annuity |
| Answer» C. pouse Annuity | |
| 369. |
What are the 2 distinct phases of a Deferred Annuity? |
| A. | aiting & Starting phases |
| B. | oading & Unloading phases |
| C. | ccumulation & Payout phases |
| D. | ommutation & Continuation phases |
| Answer» D. ommutation & Continuation phases | |
| 370. |
Under Deferred annuity, the time period between its purchase and start of annuity payments is called– |
| A. | aiting period |
| B. | ostponement period |
| C. | aiver period |
| D. | eferment period |
| Answer» E. | |
| 371. |
Under Deferred annuity, the premium has to be paid – |
| A. | n regular instalments |
| B. | n lumpsum |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 372. |
Under Immediate annuity, the premium has to be paid |
| A. | n regular instalments |
| B. | n lumpsum |
| C. | oth A & B |
| D. | one of the above |
| Answer» C. oth A & B | |
| 373. |
What are the types of Annuities? |
| A. | mmediate Annuity |
| B. | eferred Annuity |
| C. | oth A & B |
| D. | one of the three |
| Answer» D. one of the three | |
| 374. |
In a joint life annuity, what would happen to annuity payment if the spouse is to predecease the annuitant? |
| A. | nnuity would continue |
| B. | nnuity would cease |
| C. | & B correct |
| D. | one of the above |
| Answer» C. & B correct | |
| 375. |
Annuities are not classified on the basis of – |
| A. | ow purchased |
| B. | ow often paid |
| C. | hen annuity begins |
| D. | rofits/Bonus |
| Answer» E. | |
| 376. |
Defined Contribution scheme is also known as – |
| A. | ension purchase scheme |
| B. | ostpone and purchase scheme |
| C. | witch and purchase scheme |
| D. | oney purchase scheme |
| Answer» E. | |
| 377. |
Employers throughout the world has migrated from _________ _________ to _________ in recent times. |
| A. | efined contribution to Defined Benefit |
| B. | efined Benefit to Defined Contribution |
| C. | oth A & B |
| D. | one of the above |
| Answer» C. oth A & B | |
| 378. |
Which type of Occupational pension has fallen into trouble in recent times: |
| A. | efined Benefit type |
| B. | efined contribution type |
| C. | oth A & B |
| D. | one of the above |
| Answer» B. efined contribution type | |
| 379. |
A pension scheme in which the funds are managed by the insurance company is called – |
| A. | ninsured pension scheme |
| B. | nsured Pension scheme |
| C. | oth A & B |
| D. | one of the above |
| Answer» C. oth A & B | |
| 380. |
A pension scheme in which the employer manages fund through a trust and pays pension thro purchase of an annuity from a life insurance company is called |
| A. | ninsured pension scheme |
| B. | nsured Pension scheme |
| C. | oth A & B |
| D. | one of the above |
| Answer» B. nsured Pension scheme | |
| 381. |
Type of Occupational pension scheme - |
| A. | ninsured pension scheme |
| B. | nsured Pension scheme |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 382. |
Quantum of pension under Defined Benefit type would depend on – |
| A. | ccrual rate |
| B. | alary |
| C. | ensionable service |
| D. | ll of the above |
| Answer» E. | |
| 383. |
Under Defined Benefit type, the benefit payable is independent of |
| A. | ontributions |
| B. | nvestment earnings |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 384. |
Which is a type of Occupational pension? |
| A. | efined Benefit type |
| B. | efined contribution type |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 385. |
Who provides Occupational pensions? |
| A. | nsurance companies |
| B. | mployers |
| C. | ndividuals |
| D. | tate |
| Answer» C. ndividuals | |
| 386. |
The facility to withdraw 1/3rd of the accumulated amount at the time of retirement is called |
| A. | witching |
| B. | ommutation |
| C. | axing |
| D. | ncashment |
| Answer» C. axing | |
| 387. |
In a Personal pension scheme, who pays Pension to whom? |
| A. | ension Provider to Annuitant |
| B. | mployer to employee |
| C. | overnment to Public |
| D. | tate to its employees |
| Answer» B. mployer to employee | |
| 388. |
Who markets personal pension products? |
| A. | mployers |
| B. | RDA |
| C. | eneral Insurers |
| D. | ife Insurers |
| Answer» E. | |
| 389. |
Public Pensions are funded in the following manner: |
| A. | arn as you Go |
| B. | ake as you go |
| C. | pend as you go |
| D. | ay as you go |
| Answer» E. | |
| 390. |
Public Pensions are provided by the |
| A. | nsurance companies |
| B. | mployers |
| C. | ndividuals |
| D. | tate |
| Answer» E. | |
| 391. |
Why Pensions are said to represent the flip side of life insurance? |
| A. | ife insurance provides protection against premature death whereas pension covers the contingency of living too long |
| B. | n life insurance premium payments result in creation of sum assured. In case of pensions, the corpus gets liquidated by regular income payments |
| C. | oth A & B |
| D. | one of the above |
| Answer» D. one of the above | |
| 392. |
In Unit Linked plan, the Fund Value is a product of which of the following: |
| A. | ross Asset Value & Net Asset Value |
| B. | et Asset Value & Premium |
| C. | et Asset Value & Charges |
| D. | et Asset Value & No. of Units |
| Answer» E. | |
| 393. |
In Unit Linked policies, the risk cover is a multiple of _________ |
| A. | und Value |
| B. | ccumulations |
| C. | et Asset Value |
| D. | remiums |
| Answer» E. | |
| 394. |
With regard to Unit Linked policy, who bears the expense and mortality risk? |
| A. | ns. Co. |
| B. | olicyholder |
| C. | gent |
| D. | RDA |
| Answer» B. olicyholder | |
| 395. |
What could be the basis for choice of fund in a Unit Linked policy? |
| A. | nvestment need |
| B. | isk profile |
| C. | oth A & B |
| D. | one of the three |
| Answer» D. one of the three | |
| 396. |
The value of the units of a Unit Linked policy is termed as : |
| A. | ross Asset Value |
| B. | et Asset Value |
| C. | onus |
| D. | uaranteed addition |
| Answer» C. onus | |
| 397. |
Name the deductions made from policyholder of a Unit Linked policy. |
| A. | ommission |
| B. | et Asset Value |
| C. | und |
| D. | harges |
| Answer» E. | |
| 398. |
If Liabilities are undervalued it would result in – |
| A. | ore surplus |
| B. | ess surplus |
| C. | ore or less surplus |
| D. | either more nor less surplus |
| Answer» B. ess surplus | |
| 399. |
If Liabilities are liberally valued it would result in – |
| A. | ore surplus |
| B. | ess surplus |
| C. | ore or less surplus |
| D. | one of the above |
| Answer» B. ess surplus | |
| 400. |
The surplus in an insurance company is a function of – |
| A. | ow Asset is valued |
| B. | ow liability is valued |
| C. | ow Assets & Liabilities are valued |
| D. | one of the above |
| Answer» D. one of the above | |