| 1. |
Who is protected under the In-Contestability Clause included under a Life Assurance Policy? |
| A. | Insurer |
| B. | Insured |
| C. | Insurance Agent |
| D. | Insurance Broker |
| Answer» B. Insured | |
| 2. |
Section 45 (Indisputability Clause) of Insurance Act, protects the Insured, from Rejection of Claim, by the Insurer; provided the Policy has completed --. Choose the Most Appropriate Option. |
| A. | One Year |
| B. | Three Years |
| C. | Five Years |
| D. | Seven Years |
| Answer» B. Three Years | |
| 3. |
As per the Suicide Clause, if the Life-Assured Dies, as a Result of Suicide, After 3 Years of the Issue of Policy, What Does the Beneficiary Receive as the Claim? |
| A. | Nothing |
| B. | Premium, Paid by the Life-Assured. |
| C. | (2 × Premium), Paid by the Life-Assured. |
| D. | Full Face-Amount of the Policy. |
| Answer» D. Full Face-Amount of the Policy. | |
| 4. |
What Does, First Premium Receipt (F.P.R.), signify? |
| A. | Free-Look Period has ended. |
| B. | It is the Evidence, that the Policy-Contract has begun. |
| C. | Policy cannot be cancelled, Now. |
| D. | Policy has acquired a Certain Cash-Value. |
| Answer» B. It is the Evidence, that the Policy-Contract has begun. | |
| 5. |
Identify the Document, that evidences a Contract, between the Insurer and the Insured. |
| A. | Proposal-Form |
| B. | Claim-Form |
| C. | Nomination-Form |
| D. | Policy-Document |
| Answer» D. Policy-Document | |
| 6. |
If Complex Language is used to word a Certain Policy- Document, and it has given Rise to an Ambiguity, How Will it generally be construed? |
| A. | In Favour of the Insured. |
| B. | In Favour of the Insurer. |
| C. | The Policy will be declared as Void, and the Insurer will be asked to Return the Premium, With Interest, to the Insured. |
| D. | The Policy will be declared as Void, and the Insurer will be asked to Return the Premium, to the Insured, Without Any Interest. |
| Answer» A. In Favour of the Insured. | |
| 7. |
With Regards to Mis-Statement of Age, Select the Valid Option: I: An Under-Statement of Age, will result in the Original Policy being re-issued, for a Reduced Amount. II: An Over-Statement of Age, will, usually, result in a Refund of Premium-Payment. |
| A. | I, Only. |
| B. | II, Only. |
| C. | I and II. |
| D. | Neither I, Nor II. |
| Answer» C. I and II. | |
| 8. |
Which of the Following, is Not a Part of a Standard Policy-Document? |
| A. | Policy Schedule |
| B. | Standard Provisions |
| C. | Policy-Specific Provisions |
| D. | Policy Forfeiture Provisions |
| Answer» D. Policy Forfeiture Provisions | |
| 9. |
Give us, the Proof of Contract between the Insurer and the Insured. |
| A. | Proposal-Form |
| B. | Claim-Form |
| C. | Nomination-Form |
| D. | Policy Document |
| Answer» D. Policy Document | |
| 10. |
Gives us, an Example of a Standard Policy-Provision. |
| A. | A Clause, Precluding the Death Due to Pregnancy, for a Lady, Who is Expecting at the Time of Writing the Contract. |
| B. | Suicide Clause |
| C. | A Clause, Precluding Certain Illnesses. |
| D. | A Clause, Granting Certain Privileges to the Policy-Holder. |
| Answer» B. Suicide Clause | |
| 11. |
Gives us, an Example of a Policy-Specific Provision. |
| A. | Premium-Payment |
| B. | Mis-Statement of Age |
| C. | Claim-Provision |
| D. | A Clause, Precluding the Death Due to Pregnancy, for a Lady, Who is Expecting, at the Time of Writing the Contract. |
| Answer» D. A Clause, Precluding the Death Due to Pregnancy, for a Lady, Who is Expecting, at the Time of Writing the Contract. | |
| 12. |
Which One of the Following, forms the First Part of a Standard Insurance Policy-Document? |
| A. | Policy-Schedule |
| B. | Standard Provisions |
| C. | Specific-Policy Provisions |
| D. | Claim-Procedure |
| Answer» A. Policy-Schedule | |
| 13. |
Select the Correct Statement. |
| A. | The Policy Document has to be signed by a Competent Authority, but need not be compulsorily stamped according to Indian Stamp Act. |
| B. | The Policy Document has to be signed by a Competent Authority, and should be stamped according to Indian Stamp Act. |
| C. | The Policy Document need not be signed by a Competent Authority, but should be stamped according to Indian Stamp Act. |
| D. | The Policy Document neither needs to be signed by a Competent Authority, nor it needs to be compulsorily stamped according to Indian Stamp Act. |
| Answer» B. The Policy Document has to be signed by a Competent Authority, and should be stamped according to Indian Stamp Act. | |
| 14. |
What Will Happen, if the Insured-Person loses the Original Life Assurance Policy-Document? |
| A. | The Insurance Company will issue a Duplicate Policy, Without Making Any Changes to the Contract. |
| B. | The Insurance Contract will Come to an End. |
| C. | The Insurance Company will issue a Duplicate Policy, with the Renewed Terms and Conditions, Based on the Current Health- Declarations of the Life- Assured. |
| D. | The Insurance Company will issue a Duplicate Policy, Without Making Any Changes to the Contract; But, Only After a Court-Order. |
| Answer» A. The Insurance Company will issue a Duplicate Policy, Without Making Any Changes to the Contract. | |
| 15. |
Which One of the Following Documents, will be issued by the Insurance Company, on Receipt of Subsequent Premiums, After the First Premium? |
| A. | Revival Premium Receipt |
| B. | Restoration Premium Receipt |
| C. | Reinstatement Premium Receipt |
| D. | Renewal Premium Receipt |
| Answer» D. Renewal Premium Receipt | |
| 16. |
In Order for the Policy to acquire a Guaranteed Surrender-Value (G.S.V.), For How Long, must, the Premiums be Paid, as per the Regulations? |
| A. | 2 Consecutive Years |
| B. | 4 Consecutive Years |
| C. | 3 Consecutive Years |
| D. | 5 Consecutive Years |
| Answer» C. 3 Consecutive Years | |
| 17. |
For a Life Assurance Policy, Nomination is allowed Under --- of Insurance Act, 1938. |
| A. | Section 10 |
| B. | Section 38 |
| C. | Section 39 |
| D. | Section 45 |
| Answer» C. Section 39 | |
| 18. |
Identify the Circumstances, under which, the Policy- Holder would need to appoint an Appointee. |
| A. | Insured is a Minor |
| B. | Nominee is a Minor |
| C. | Policy-Holder is Not of Sound Mind |
| D. | Policy-Holder is Not Married |
| Answer» B. Nominee is a Minor | |
| 19. |
Illustrate the Purpose of Grace-Period. |
| A. | It is a Period, within which, Policy-Holder may cancel the Policy, if He or She Does Not Like the Same. |
| B. | It grants the Policy- Holder, An Additional Time, to Pay His or Her Premium. |
| C. | It provides a Period, within which, Policy- Holder must raise a Complaint, in Case of Any Grievance. |
| D. | It provides a Period, after which, Policy- Holder must Pay His or Her Over-Due Premium. |
| Answer» B. It grants the Policy- Holder, An Additional Time, to Pay His or Her Premium. | |
| 20. |
All of the Following Statements, are True, with Regard to Nomination, Except --. |
| A. | Policy-Nomination is Not Cancelled, if the Policy is assigned to the Insurer, in Return for a Loan. |
| B. | Nomination can be Done, at the Time of Policy-Purchase or Subsequently. |
| C. | Nomination can be Changed, by Making an Endorsement in the Policy. |
| D. | A Nominee has Full Rights on the Whole of the Claim. |
| Answer» D. A Nominee has Full Rights on the Whole of the Claim. | |
| 21. |
When is a Policy, Deemed to be Lapsed? |
| A. | If the Premiums are Not Paid on the Due-Date. |
| B. | If the Premiums are Not paid, Before the Due- Date. |
| C. | If the Premium has Not been paid, even After Expiry of Grace-Period. |
| D. | If the Policy is surrendered. |
| Answer» C. If the Premium has Not been paid, even After Expiry of Grace-Period. | |
| 22. |
Construct a Situation, that would require Evidence of Insurability, at Revival. |
| A. | It has been a Week, since the Policy has been Lapsed. |
| B. | Policy has been Lapsed, for More Than a Year. |
| C. | Policy has been In- Force, for a Year. |
| D. | Loan against Policy has been sought. |
| Answer» B. Policy has been Lapsed, for More Than a Year. | |
| 23. |
Construct a Valid Argument in Favour of Policy-Loans. |
| A. | A Loan of Any Amount, can be obtained, easily. |
| B. | Insured can decide the Terms and Conditions of the Loan. |
| C. | There is No Legal Obligation to Re-Pay the Loan. |
| D. | No Collateral is required. |
| Answer» C. There is No Legal Obligation to Re-Pay the Loan. | |
| 24. |
Select the Correct Statement, with Regard to Grace- Period. Choose the Most Appropriate Option. |
| A. | The Standard Length of the Grace-Period is 1 Month or 31 Days. |
| B. | The Standard Length of the Grace-Period is One Quarter. |
| C. | The Standard Length of the Grace-Period is One Week. |
| D. | The Standard Length of the Grace-Period is One Fort-Night. |
| Answer» A. The Standard Length of the Grace-Period is 1 Month or 31 Days. | |
| 25. |
Which One of the Following Alterations, will be permitted, by an Insurance Company? |
| A. | Splitting-Up of the Policy into Two or More Policies. |
| B. | Extension of the Premium-Paying-Term. |
| C. | Change of the Policy from "With-Profits" Policy to "Without- Profits" Policy. |
| D. | Increase in the Sum- Assured. |
| Answer» A. Splitting-Up of the Policy into Two or More Policies. | |
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