8/28/2021 Work With LIC - IC38
Great! you have successfully completed your exam
Your Result for English IC38 Mock Test 01
Result Pass
No of Questions 50
Question Attempted 50
Total Marks 50
Your Marks 31
Percentage Obtained 62%
Detailed Result
Q(1):What is a policy withdrawal?
1. Discontinuation of premium payment by policyholder
2. Surrender of policy in return for acquired surrender value (Your answer is correct)
3. Policy upgrade
4. Policy downgrade
Not Attempt
Q(2):Mr. Manoj's insurance claim was denied by insurance company. In case of a denial, what is
the option available to Mr. Manoj, apart from the representation to the insurer?
1. To approach Government
2. To approach legal authorities (Your answer is correct)
3. To approach insurance agent
4. Nothing could be done in case of case denial
Not Attempt
Q(3):What is the relation between investment horizon and returns?
1. Both are not related at all
2. Greater the investment horizon the larger the returns (Your answer is correct)
Explaination: Greater the investment horizon the larger the returns is the relation between investment horizon and
returns. The growth rate of the investments will depend on your risk profile, i.e., higher the risk you take in
investments.
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3. Greater the investment horizon the smaller the returns
4. Greater the investment horizon more tax on the returns
Not Attempt
Q(4):What will happen if the policyholder does not pay the premium by the due date and dies
during the grace period?
1.
The insurer will consider the policy void due to non-payment of premium by the due date and hence reject the
claim
2. The insurer will pay the claim and waive off the last unpaid premium
3. The insurer will pay the claim after deducting the unpaid premium (This is the correct answer)
4. (Your answer is incorrect)
The insurer will pay the claim after deducting the unpaid premium along with interest which will be taken as 2%
above the bank savings interest rate
Not Attempt
Q(5):What do you mean by Moral hazard ?
1. Dishonesty or character defects in an individual (This is the correct answer)
2. Honesty and values in an individual
3. Risk of religious beliefs
4. Hazard of the property to be insured (Your answer is incorrect)
Not Attempt
Q(6):What is the name of First Fire Insurance Company in the world ?
1. Fire Office (This is the correct answer)
2. Fire Insurance Co. (Your answer is incorrect)
3. National Fire Insurance Co.
4. Global Fire Office.
Not Attempt
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Q(7):Premium cannot be received in/by ________ .
1. cash
2. cheque
3. promissory note (Your answer is correct)
4. credit card
Not Attempt
Q(8):If the material facts presented by the insured in the proposal are wrong than the insurance
company can repudiate the policy within a period ____ .
1. Upto 1 year
2. Upto 2 years
3. Upto 3 years (Your answer is correct)
4. Upto 6 months
Not Attempt
Q(9):Section _____ of the Insurance Act 1938 prohibits use of rebates as an inducement to take
an insurance policy .
1. 56B
2. 46
3. 52
4. 41 (Your answer is correct)
Not Attempt
Q(10):Which type of healthcare has acute care requiring treatment for a short period for a serious
illness, often (but not necessarily) as an in-patient, including intensive care services,
ambulance facilities, diagnostic and other relevant medical services ?
1. Primary health care (Your answer is incorrect)
2. Secondary health care (This is the correct answer)
3. Intensive health care
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4. Tertiary health care
Not Attempt
Q(11):When can a policy holder file a complaint with ombudsman ?
1. The complaint is pending in any consumer forum
2. The complainant is not satisfied with the reply given by the insurer (This is the correct answer)
3. The complaint is made after one year from the date of rejection by the insurance company
4. (Your answer is incorrect)
The complainant had made a previous written representation to the insurance company and the insurance
company has accepted the complaint
Not Attempt
Q(12):Arvind had bought many insurance policies. Due to some issues he need money urgently.
Recommend to him an option that will give him money instantly without having to incur any
overheads.
1. Stop premiums for some policies and allow them to lapse
2. Purchase income benefit plan
3. Purchase money back plans
4. Surrender high cash value policies (Your answer is correct)
Not Attempt
Q(13):In MWP Act cases, the maturity claims cheques are paid to _____.
1. policy holders
2. trustees (Your answer is correct)
3. Both policy holders and trustees
4. Neither policy holders nor trustees
Not Attempt
Q(14):From the below options, choose who can be a KEYMAN for the company ? 1. Suresh who
is working on the production line for last 10 years 2. Mahesh who is the sales manager and
is responsible for 30% of company's sale
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1. Only 1
2. Only 2 (Your answer is correct)
3. Both 1 and 2
4. Neither 1 nor 2
Not Attempt
Q(15):Who will be responsible for all acts of omission and commission of the principal officer and
the specified person?
1. The corporate agent (This is the correct answer)
2. The specified person and the principal officer (Your answer is incorrect)
3. The insurer
4. The telemarketer
Not Attempt
Q(16):Which of the following is NOT a contract of indemnity ?
1. Motor insurance
2. Marine insurance
3. Personal accident (Your answer is correct)
4. Liability insurance
Not Attempt
Q(17):Under the principle of mutuality -
1. the funds are spread out amongst various assets
2. funds flow from one source to many destinations
3. the funds of various individuals are combined (Your answer is correct)
4. All the above
Not Attempt
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Q(18):Peril may be defined as -
1. chance of loss
2. cause of the risk event (Your answer is correct)
3. an event that increases the chance of loss
4. All the above
Not Attempt
Q(19):The Redressal of Public Grievances Rules, 1998 -
1. apply only to life policies
2. apply only to nonlife policies
3. apply both to non life and life policies (Your answer is incorrect)
4. apply both to life and non life policies in an individual capacity (This is the correct answer)
Not Attempt
Q(20):Choose the INCORRECT option.
1. ombudsman can award only up to Rs. 20 lakhs
2. the insurer should comply with the award and sent a written notice to the ombudsman within 15 days.
(Your answer is incorrect)
3. in the event that the insured does not accept the award, the insurer will proceed ahead with the process.
(This is the correct answer)
4. the award should be made within a period of 3 months from the date of receipt of such a complaint
Not Attempt
Q(21):Mortgage redemption reserve is a type of -
1. Increasing term insurance
2. Decreasing term insurance (Your answer is correct)
3. Level term insurance
4. No term insurance at all
Not Attempt
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Q(22):Subrogation is applicable to -
1. policies of indemnity (This is the correct answer)
2. term insurance policies
3. universal life insurance (Your answer is incorrect)
4. money back policies
Not Attempt
Q(23):In term insurance policies -
1. there is a cash value or savings element accruing to the insured
2. regular survival benefits are available
3. Both the above
4. None of the above (Your answer is correct)
Not Attempt
Q(24):Consumer Protection Act deals with:
1. Complaint against insurance companies
2. Complaint against shopkeepers (Your answer is incorrect)
3. Complaint against brand
4. Complaint against insurance companies, brand and shopkeepers (This is the correct answer)
Not Attempt
Q(25):Which among the following is a limitation of traditional life insurance products?
1. Yields on these policies is high
2. Clear and visible method of arriving at surrender value (This is the correct answer)
3. Well defined cash and savings value component
4. The rate of return is not easy to ascertain (Your answer is incorrect)
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Q(26):For the subsequent premiums received by the insurance company after the first premium,
the company will issue __________.
1. Revival premium receipt
2. Restoration premium receipt
3. Reinstatement premium receipt
4. Renewal premium receipt (Your answer is correct)
Not Attempt
Q(27):By transferring risk to insurer, it becomes possible ______.
1. To become careless about our assets
2. To make money from insurance in the event of a loss
3. To ignore the potential risks facing our assets
4. To enjoy peace of mind and plan one?s business more effectively (Your answer is correct)
Not Attempt
Q(28):In customer relationship the first impression is created:
1. By being confident
2. By being on time
3. By showing interest
4. By being on time, showing interest and being confident (Your answer is correct)
Not Attempt
Q(29):What does unbundling of life insurance products refers to?
1. Correlation of life insurance products with bonds (Your answer is incorrect)
2. Correlation of life insurance products with equities
3. Amalgamation of protection and savings element
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4. Separation of the protection and savings element (This is the correct answer)
Not Attempt
Q(30):Praveen died in a car accident. The beneficiary submits documents for death claim. Which
of the below document is an additional document required to be submitted in case of
accidental death as compared to natural death.
1. Certificate of burial or cremation
2. Treating physician?s certificate (Your answer is incorrect)
3. Employer's certificate
4. Inquest Report (This is the correct answer)
Not Attempt
Q(31):Which of the below is not a factor in determining life insurance premium?
1. Mortality
2. Management expenses
3. Reserves
4. Rebate (Your answer is correct)
Not Attempt
Q(32):Which among the following cannot form the basis for a valid consumer complaint?
1. Shopkeeper charging a price above the MRP for a product
2. Shopkeeper not advising the customer on the best product in a category (Your answer is correct)
3. Allergy warning not provided on a drug bottle
4. Faulty products
Not Attempt
Q(33):The first and the primary source of information about an applicant, for the underwriter is his
______.
1. Age proof documents (Your answer is incorrect)
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2. Financial documents
3. Previous medical records
4. Proposal form (This is the correct answer)
Not Attempt
Q(34):Which of the below alteration will be permitted by an insurance company?
1. Splitting up of the policy into two or more policies (Your answer is correct)
2. Extension of the premium paying term
3. Change of the policy from with profit policy to without profit policy
4. Increase in the sum assured
Not Attempt
Q(35):Which among the following is true regarding life insurance contracts?
1. They are verbal contracts not legally enforceable
2. They are verbal which are legally enforceable
3. (Your answer is correct)
They are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872
4. They are similar to wager contracts
Not Attempt
Q(36):Which of the below statement is INCORRECT with regards to a policy against which a loan
has been taken from the insurance company?
1. The policy will have to be assigned in favour of the insurance company
2. (Your answer is correct)
The nomination of such policy will get cancelled due to assignment of the policy in favour of the insurance
company
3. The nominee's right will affected to the extent of the insurer?s interest in the policy
4. The policy loan is usually limited to a percentage of the policy?s surrender value
Not Attempt
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Q(37):Which of the below is not an element of the life insurance business?
1. Asset
2. Risk
3. Principle of mutuality
4. Subsidy (Your answer is correct)
Not Attempt
Q(38):Which of the below policy can provide protection to home loan borrowers?
1. Life Insurance
2. Disability Insurance
3. General Insurance
4. Mortgage Redemption Insurance (Your answer is correct)
Not Attempt
Q(39):Which of the below insurance proposal is not likely to qualify under non-medical
underwriting?
1. Savita, aged 26 years, working in an IT company as a software engineer
2. Mahesh, aged 50 years, working in a coal mine (This is the correct answer)
3. Satish, aged 28 years, working in a bank and has applied for an insurance cover of Rs. 1 crore
4. (Your answer is incorrect)
Pravin, aged 30 years, working in a departmental store and has applied for an endowment insurance plan for a
tenure of 10 years
Not Attempt
Q(40):Which of the following statements is true?
1. Insurance is a method of sharing the losses of a few by many (Your answer is correct)
2. Insurance is a method of transferring the risk of an individual to another individual
3. Insurance is a method of transferring the gains of a few to the many
4. All of above
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Not Attempt
Q(41):Which of the below statement is correct with regards to grace period of an insurance
policy?
1. The standard length of the grace period is one month
2. The standard length of the grace period is 30 days.
3. The standard length of the grace period is one month or 30 days. (Your answer is incorrect)
4. The standard length of the grace period is one month or 31 days. (This is the correct answer)
Not Attempt
Q(42):Money laundering is the process of bringing _______ money into an economy by hiding its
_______ origin so that it appears to be legally acquired.
1. Illegal, illegal (This is the correct answer)
2. Legal, legal
3. Illegal, legal
4. Legal, illegal (Your answer is incorrect)
Not Attempt
Q(43):Which of the below mentioned insurance plans has the least or no amount of savings
element?
1. Term insurance plan (Your answer is correct)
2. Endowment plan
3. Whole life plan
4. Money back plan
Not Attempt
Q(44):In case the policyholder is not satisfied with the policy, he / she can return the policy within
the free-look period i.e. within _____ days of receiving the policy document.
1. 5
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2. 15 (Your answer is correct)
3. 30
4. 45
Not Attempt
Q(45):Which of the below statement is FALSE with regards to nomination?
1. Policy nomination is not cancelled if the policy is assigned to the insurer in return for a loan
2. Nomination can be done at the time of policy purchase or subsequently
3. Nomination can be changed by making an endorsement in the policy
4. A nominee has full rights on the whole of the claim (Your answer is correct)
Not Attempt
Q(46):Insured's declared value in motor insurance includes -
1. Registration
2. Manufacturer's cost price (Your answer is incorrect)
3. Manufacturer's selling price (This is the correct answer)
4. Arbitrary price component
Not Attempt
Q(47):Fire Insurance Policy does not cover damage to property even as add-on cover due
to___________.
1. Floods
2. Earthquake
3. Fire (Your answer is incorrect)
4. Bombing due to war (This is the correct answer)
Not Attempt
Q(48):Material fact _______ .
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1. Is the value of all material covered in a policy
2. Not important for assessing the risk
3. Is important as it influences the decision of the underwriter (Your answer is correct)
4. Is not important as it has no bearing on the decision of the underwriter
Not Attempt
Q(49):_______ is the maximum limit of liability of insurer under the policy.
1. Sum insured (Your answer is correct)
2. Premium
3. Surrender value
4. Amount of loss
Not Attempt
Q(50):Which of the following is a legal perquisite especially for insurance?
1. Consideration
2. Free consent
3. Capacity to contract
4. Insurable interest (Your answer is correct)
Not Attempt
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