Back  English IC38 Mock Test 01

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English IC38 Mock Test 01
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Q (1): 

What is a policy withdrawal?

1.

 Discontinuation of premium payment by policyholder

2.

 Surrender of policy in return for acquired surrender value

3.

 Policy upgrade

4.

 Policy downgrade
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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

3.

 To approach insurance agent

4.

 Nothing could be done in case of case denial
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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

3.

 

Greater the investment horizon the smaller the returns

4.

 

Greater the investment horizon more tax on the returns

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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

4.

 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
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Q (5): 

What do you mean by Moral hazard ?

1.

 Dishonesty or character defects in an individual

2.

 Honesty and values in an individual

3.

 Risk of religious beliefs

4.

 Hazard of the property to be insured
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Q (6): 

What is the name of First Fire Insurance Company in the world ? 

1.

 

Fire Office

2.

 

 Fire Insurance Co.

3.

 

 National Fire Insurance Co.

4.

 

Global Fire Office.  

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Q (7): 

Premium cannot be received in/by __ .

1.

 cash

2.

 cheque

3.

 promissory note

4.

 credit card
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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

4.

 

Upto 6 months

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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

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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

2.

 Secondary health care

3.

 Intensive health care

4.

 Tertiary health care
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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

3.

 The complaint is made after one year from the date of rejection by the insurance company

4.

 The complainant had made a previous written representation to the insurance company and the insurance company has accepted the complaint
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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
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Q (13): 

In MWP Act cases, the maturity claims cheques are paid to __.

1.

 

policy holders

2.

 

trustees

3.

 

Both policy holders and trustees

4.

 

Neither policy holders nor trustees

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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

1.

 Only 1

2.

 Only 2

3.

 Both 1 and 2

4.

 Neither 1 nor 2
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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

2.

 The specified person and the principal officer

3.

 The insurer

4.

 The telemarketer
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Q (16): 

Which of the following is NOT a contract of indemnity ?

1.

 Motor insurance

2.

 Marine insurance

3.

 Personal accident

4.

 Liability insurance
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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

4.

 All the above
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Q (18): 

Peril may be defined as -

1.

 chance of loss

2.

 cause of the risk event

3.

 an event that increases the chance of loss

4.

 All the above
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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

4.

 apply both to life and non life policies in an individual capacity
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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.

3.

 in the event that the insured does not accept the award, the insurer will proceed ahead with the process.

4.

 the award should be made within a period of 3 months from the date of receipt of such a complaint
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Q (21): 

Mortgage redemption reserve is a type of -

1.

 Increasing term insurance

2.

 Decreasing term insurance

3.

 Level term insurance

4.

 No term insurance at all
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Q (22): 

Subrogation is applicable to -

1.

 policies of indemnity

2.

 term insurance policies

3.

 universal life insurance

4.

 money back policies
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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
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Q (24): 

Consumer Protection Act deals with:

1.

 Complaint against insurance companies

2.

 Complaint against shopkeepers

3.

 Complaint against brand

4.

 Complaint against insurance companies, brand and shopkeepers
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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

3.

 

Well defined cash and savings value component

4.

 

The rate of return is not easy to ascertain

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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

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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
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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
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Q (29): 

What does unbundling of life insurance products refers to?

1.

 Correlation of life insurance products with bonds

2.

 Correlation of life insurance products with equities

3.

 Amalgamation of protection and savings element

4.

 Separation of the protection and savings element
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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

3.

 Employer's certificate

4.

 Inquest Report
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Q (31): 

Which of the below is not a factor in determining life insurance premium?

1.

 Mortality

2.

 Management expenses

3.

 Reserves

4.

 Rebate
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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

3.

 Allergy warning not provided on a drug bottle

4.

 Faulty products
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Q (33): 

The first and the primary source of information about an applicant, for the underwriter is his ___.

1.

 Age proof documents

2.

 Financial documents

3.

 Previous medical records

4.

 Proposal form
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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

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
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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.

 They are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872

4.

 They are similar to wager contracts
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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.

 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
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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
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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
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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

3.

 Satish, aged 28 years, working in a bank and has applied for an insurance cover of Rs. 1 crore

4.

 Pravin, aged 30 years, working in a departmental store and has applied for an endowment insurance plan for a tenure of 10 years
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Q (40): 

Which of the following statements is true?

1.

 

Insurance is a method of sharing the losses of a few by many

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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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.

4.

 The standard length of the grace period is one month or 31 days.
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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

2.

 Legal, legal

3.

 Illegal, legal

4.

 Legal, illegal
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Q (43): 

Which of the below mentioned insurance plans has the least or no amount of savings element?

1.

 Term insurance plan

2.

 Endowment plan

3.

 Whole life plan

4.

 Money back plan
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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

2.

 15

3.

 30

4.

 45
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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
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Q (46): 

Insured's declared value in motor insurance includes -

1.

 Registration

2.

 Manufacturer's cost price

3.

 Manufacturer's selling price

4.

 Arbitrary price component
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Q (47): 

Fire Insurance Policy does not cover damage to property even as add-on cover due to_____.

1.

 Floods

2.

 Earthquake

3.

 Fire

4.

 Bombing due to war
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Q (48): 

Material fact ____ .

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

4.

 Is not important as it has no bearing on the decision of the underwriter
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Q (49): 

____ is the maximum limit of liability of insurer under the policy.

1.

 Sum insured

2.

 Premium

3.

 Surrender value

4.

 Amount of loss
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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
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