270+ Insurance Exam (LIFE) Solved MCQs

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.
26.

Explain the Concept of Surrender-Value.

A. Maximum Compensation, Available Under Policy.
B. Cash-Value, Associated with the Policy, in Case, the Premiums have been Paid, for 3 Years, at least.
C. Minimum Compensation, Available Under the Policy.
D. Compensation, Available Under the Policy, At Any Given Point of Time.
Answer» B. Cash-Value, Associated with the Policy, in Case, the Premiums have been Paid, for 3 Years, at least.
27.

How Many Persons, can be nominated under a Policy? Choose the Most Appropriate Option.

A. Exactly One
B. Exactly Two
C. Exactly Three
D. One or More Than One
Answer» D. One or More Than One
28.

Describe the Purpose of Nomination.

A. To Transfer the Rights of the Policy.
B. To Appoint a Person, to Receive the Policy- Monies, in the Event of the Life-Assured's Death.
C. To Surrender the Policy.
D. To Create an Estate.
Answer» B. To Appoint a Person, to Receive the Policy- Monies, in the Event of the Life-Assured's Death.
29.

Describe the Purpose of Assignment.

A. To Transfer the Rights of the Policy.
B. To Appoint a Person, to Receive the Policy- Monies, in the Event of the Life-Assured's Death.
C. To Surrender the Policy.
D. To Create an Estate.
Answer» A. To Transfer the Rights of the Policy.
30.

Illustrate the Process involved in Ordinary Revival of Policy.

A. Write a New Policy, whose Date-of- Commencement is Within Two Years of the Original Date-of- Commencement of the Lapsed Policy.
B. Payment of Arrears, With Interest.
C. Get a Loan on the Lapsed Policy, as a Consideration for Revival-Purposes.
D. Pay the Premium- Arrears, in Instalments.
Answer» B. Payment of Arrears, With Interest.
31.

Which One of the Following Documents, is not accepted as a Standard Age-Proof Document?

A. School-Leaving Certificate
B. Pass-Port
C. Horoscope
D. Employer's Certificate
Answer» C. Horoscope
32.

Which One of the Following Statements, is Correct, with Regard to 'Anti-Selection'?

A. Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up selecting Un-Ethical Agents.
B. Anti-Selection is the Tendency of People, Who suspect or know that, their Chance of Experiencing a Loss is High, to seek-out the Insurance, Eagerly; and to gain in the Process.
C. Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up launching the Insurance Products, that are Not Suitable for the Prospective Policy- Holders.
D. Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up selecting the Wrong Investment-Products, for deploying the Premiums, collected from the Policy-Holders.
Answer» B. Anti-Selection is the Tendency of People, Who suspect or know that, their Chance of Experiencing a Loss is High, to seek-out the Insurance, Eagerly; and to gain in the Process.
33.

Who among the Following Individuals, are considered as High-Risk by Insurance Companies? Choose the Most Appropriate Option.

A. Individuals, who, regularly consume 'Paan Masala (पान मसाला)'.
B. Teetotaller
C. Individuals, who are Under the Influence of Sedatives and Other Stimulants.
D. Individuals, who consume Non- Vegetarian Food, Regularly.
Answer» C. Individuals, who are Under the Influence of Sedatives and Other Stimulants.
34.

Who among the Following, is Likely to be Exposed to Health-Hazard, in His or Her Occupation?

A. Yoga-Instructor
B. Film-Stunt-Artist
C. Dancer in a Night-Club
D. Person, Exposed to Mining Dust
Answer» D. Person, Exposed to Mining Dust
35.

Who among the Following, is Likely to be Exposed to Accidental Hazard, in His or Her Occupation? Choose the Most Appropriate Option.

A. Medical-Professional
B. Tourist-Guide
C. Demolition-Experts
D. Marketing-Executive, Who is regularly on the Field.
Answer» C. Demolition-Experts
36.

--- implies that if the Life-Assured dies from a Specified Cause, within a Given Period, Only a Decreased Amount of Death-Benefit may be Payable.

A. Mortality-Rate
B. Lien
C. Anti-Selection
D. Mortgage
Answer» B. Lien
37.

Which One of the Following Statements, is In-Correct, with Regard to Numerical Rating Method of Underwriting?

A. Under this Method, Underwriters assign the Positive Rating-Points for All Negative or Adverse Factors.
B. Under this Method, Underwriters assign the Positive Points for Any Positive or Favourable Factors.
C. Under this Method, the Total Number of Points, so assigned, will decide How Much Extra- Mortality-Rating (E.M.R.), it has been given.
D. Under this Method, if the Extra-Mortality- Rating (E.M.R.) is Very High, Insurance may even be declined.
Answer» B. Under this Method, Underwriters assign the Positive Points for Any Positive or Favourable Factors.
38.

Which One of the Following Statements, is In-Correct, with Regard to Judgement Method of Underwriting?

A. Under this Method, Subjective Judgement is used.
B. This Method is especially used in Case of Complex Cases.
C. In this Method, the Company may seek Expert Opinion of Medical Doctor.
D. In this Method, the Underwriter assign Positive or Negative Rating-Points to the Adverse Factors.
Answer» D. In this Method, the Underwriter assign Positive or Negative Rating-Points to the Adverse Factors.
39.

Mr. Vimal is a 32-Years' Old, Healthy, Non-Smoker, Teetotaller Individual; Who applies for Life Assurance from ABC Limited Insurance Company. Which One of the Following Statements, will Hold True, with Regard to Risk-Acceptance by the Insurance Company?

A. Risk will be Accepted at Ordinary Rates.
B. Risk will be Accepted With an Extra, Over the Tabular Rate of Premium.
C. Risk will be Accepted, With a Lien on Sum- Assured.
D. Risk will be Accepted, With a Restrictive Clause.
Answer» A. Risk will be Accepted at Ordinary Rates.
40.

If, Mr. Brijesh, a 40-Years' Old Individual, is perceived as a 'Sub-Standard Risk', by the Insurance Company, then, Which One of the Following Statements, will Hold True, with Regard to Risk-Acceptance by the Insurance Company?

A. Risk will be Accepted at Ordinary Rates.
B. Risk will be Accepted at Lower Rates.
C. Risk will be Accepted With an Extra, Over the Tabular Rate of Premium.
D. Risk will be Declined.
Answer» C. Risk will be Accepted With an Extra, Over the Tabular Rate of Premium.
41.

What is meant by 'Risk-Classification'? Choose the Most Appropriate Option.

A. The Process, in which, Individual Lives are Categorised and Assigned to Different Risk-Classes, Depending on the Degree of Risks, they Pose.
B. The Tendency of People, Who suspect or know that, their Chance of Experiencing a Loss is High, to seek-out the Insurance, Eagerly; and to gain in the Process.
C. The Process of Evaluating Each Proposal for Life- Assurance in Terms of the Degree of Risk, it represents; and then Deciding: Whether or Not to Grant the Insurance, and on What Terms.
D. The Process, in which, the Applicants, Who are Exposed to Similar Degrees of Risk, are Placed in the Same Premium-Class.
Answer» A. The Process, in which, Individual Lives are Categorised and Assigned to Different Risk-Classes, Depending on the Degree of Risks, they Pose.
42.

--- means that, the Applicants, Who are exposed to Similar Degrees of Risk, must be placed in the Same Premium-Class.

A. Selection of Risk
B. Anti-Selection
C. Moral Hazard
D. Equity
Answer» D. Equity
43.

Which One of the Following Statements, is Correct, with Regard to 'Sub-Standard Lives', under Risk- Classification? Choose the Most Appropriate Option.

A. Sub-Standard Lives consist of those Individuals, whose Anticipated Mortality corresponds to the Standard Lives, represented by the Mortality-Table.
B. Sub-Standard Lives consist of those Individuals, whose Anticipated Mortality is Significantly Lower Than the Standard Lives, and hence, could be charged a Lower Premium.
C. Sub-Standard Lives consist of those Individuals, whose Anticipated Mortality is Higher Than the Average Lives or Standard Lives, but, are still considered to be Insurable.
D. Sub-Standard Lives consist of those Individuals, whose Impairments and Anticipated Extra Mortality are So Great, that, they could not be provided the Insurance- Coverage, at an Affordable Cost.
Answer» C. Sub-Standard Lives consist of those Individuals, whose Anticipated Mortality is Higher Than the Average Lives or Standard Lives, but, are still considered to be Insurable.
44.

Which One of the Following Statements, is Correct, with Regard to 'Declined Lives', under Risk- Classification?

A. 'Declined Lives' consist of those Individuals, whose Anticipated Mortality corresponds to the Standard Lives, represented by the Mortality-Table.
B. 'Declined Lives' consist of those Individuals, whose Impairments and Anticipated Extra Mortality are So Great, that they could not be provided Insurance- Coverage, at an Affordable Cost.
C. 'Declined Lives' consist of those Individuals, whose Anticipated Mortality is Higher Than the Average Lives or Standard Lives, but are still considered to be Insurable.
D. 'Declined Lives' consist of those Individuals, whose Anticipated Mortality is Significantly Lower Than Standard Lives, and hence, could be charged a Lower Premium.
Answer» B. 'Declined Lives' consist of those Individuals, whose Impairments and Anticipated Extra Mortality are So Great, that they could not be provided Insurance- Coverage, at an Affordable Cost.
45.

If an Insurance Company accepts a Risk, with a Lien on Sum-Assured, then What Does this imply?

A. Lien implies that, if the Life-Assured Dies from a Specified Cause, Within a Given Period, Only a Decreased Amount of Death-Benefit may be Payable.
B. Lien implies that, the Risk is Being Accepted, by the Company, for a Limited Period.
C. Lien implies that, the Insurance Company is Accepting the Risk, at Lower Rate of Premium, as compared to the Tabular-Rate.
D. Lien implies that, the Insurance-Proposal is Postponed, till a Specified Period.
Answer» A. Lien implies that, if the Life-Assured Dies from a Specified Cause, Within a Given Period, Only a Decreased Amount of Death-Benefit may be Payable.
46.

When the Insurer promises to pay the Insured, a Specified Amount at the End of the Term, if the Insured survives the Plan’s Entire Term, then the Claim will be known as --.

A. Survival-Benefit Payment
B. Surrender of Policy
C. Death-Claim
D. Maturity-Claim
Answer» D. Maturity-Claim
47.

If Insurance Company makes Periodical Payments, to the Insured, at Specified Intervals, During the Term of the Policy, then, these Payments are being made as per --.

A. Survival-Benefit Payments
B. Surrender-Value
C. Rider-Benefit
D. Conditional Assignment
Answer» A. Survival-Benefit Payments
48.

A Life Assurance Company paid the Treatment Costs to the Insured, During the Event of Hospitalisation of the Insured, During the Policy-Term. This is an Example of --.

A. Survival-Benefit Payments
B. Surrender-Value
C. Rider-Benefit
D. Conditional Assignment
Answer» C. Rider-Benefit
49.

ABC Insurance Company has offered an Insurance-Plan to Mr. Krishna, with a Provision of Survival-Claim. How will the Company ascertain the Survival-Claim? Choose the Most Appropriate Option.

A. Claim will be ascertained, as per the Conditions, stipulated in the Policy.
B. Claim will be ascertained, based on the Dates, which are determined, at the Beginning of the Contract, it-self.
C. Claim will occur, when the Policy-Holder decides to cancel the Contract.
D. Claims will be ascertained, based on the Medical and Other Records, provided by the Policy-Holder, in Support of His Claim.
Answer» A. Claim will be ascertained, as per the Conditions, stipulated in the Policy.
50.

Ms. Kavita purchases a Critical Illness (C.I.) Rider, along with, a Term Assurance Plan, from ABC Insurance Company. How Will, the Company ascertain the Claim for the Critical Illness (C.I.) Rider? Choose the Most Appropriate Option.

A. Claim will be ascertained, as per the Conditions, stipulated in the Policy.
B. Claim will be ascertained, based on the Dates, which are determined, at the Beginning of the Contract, it-self.
C. Claim will occur, when the Policy-Holder decides to cancel the Contract.
D. Claims will be ascertained, based on the Medical and Other Records, provided by the Policy-Holder, in Support of Her Claim.
Answer» D. Claims will be ascertained, based on the Medical and Other Records, provided by the Policy-Holder, in Support of Her Claim.
51.

A --- is a Demand, that, the Insurer should Make Good the Promise, Specified in the Contract.

A. Claim
B. Repudiation
C. Fore-Closure
D. Grievance
Answer» A. Claim
52.

Which One of the Following Statements, is In-Correct, with Regard to 'Surrender' of the Policy?

A. Surrender-Value, that is Payable to Insured, is, Usually, a Percentage of the Premiums-Paid.
B. A Policy can be surrendered, only if, it has acquired the Paid- Up Value.
C. Actual Surrender-Value, Paid to the Insured, is Always Less Than the Gross Surrender-Value.
D. Surrender-Value is Payable on Voluntary Termination of the Policy-Contract by the Insured.
Answer» C. Actual Surrender-Value, Paid to the Insured, is Always Less Than the Gross Surrender-Value.
53.

Which One of the Following Statements, is In-Correct, with Regard to Critical Illness (C.I.) Rider? Choose the Most Appropriate Option.

A. A Specified Amount is Paid, as per the Policy- Terms, in the Event of Diagnosis of a Critical Illness.
B. The Illness should have been covered in the List of Critical Illnesses, specified by the Insurance Company.
C. Critical Illness (C.I.) Rider is an Example of the Claims, that may occur, during the Policy- Term.
D. The Life Assurance Policy Contract Terminates, After the Rider-Payments are Made.
Answer» D. The Life Assurance Policy Contract Terminates, After the Rider-Payments are Made.
54.

Mr. Nimesh bought a 20-Years' Unit-Linked Insurance Plan (U.L.I.P.). In the Event: Mr. Nimesh dies, Within the Policy-Term, Which of the Following, will be paid?

A. Surrender-Value will be paid.
B. Premiums paid will be Returned, After Deducting the Dues.
C. Lower of Sum-Assured or Fund-Value, will be paid.
D. Higher of Sum-Assured or Fund-Value, will be paid.
Answer» D. Higher of Sum-Assured or Fund-Value, will be paid.
55.

What is the Period, up to which, a Policy can be repudiated, by the Insurance Company, if, Material Facts presented by the Insured, in the Proposal, are False?

A. Up To 15 Days
B. Up To 6 Months
C. Up To 1 Year
D. Up To 3 Years
Answer» D. Up To 3 Years
56.

As per Insurance Regulatory and Development Authority of India (I.R.D.A.I.) (Protection of Policy- Holders' Interests) Regulations, 2017, What is the Stipulated Period, within which, Claim under a Life Assurance Policy, shall be paid or shall be disputed, provided that, the Company has received All Relevant Papers?

A. Within 15 Days
B. Within 20 Days
C. Within 30 Days
D. Within 3 Months
Answer» C. Within 30 Days
57.

In Case of Presumption of Death of Life-Assured, Which One of the Following Documents, needs to be submitted, by the Nominee?

A. Death-Certificate from Municipal Corporation.
B. Decree from a Competent Court.
C. Employer's Certificate
D. Inquest-Report
Answer» B. Decree from a Competent Court.
58.

Mr. Brijesh purchased a 20-Years' Unit-Linked Insurance-Plan (U.L.I.P.), from ABC Insurance Company. If Mr. Brijesh Dies, Before the Maturity of the Policy, then Insurance Company will have to pay --.

A. Surrender-Value
B. Premiums, After Deducting the Dues.
C. Lower of Sum-Assured or Fund-Value.
D. Higher of Sum-Assured or Fund-Value.
Answer» D. Higher of Sum-Assured or Fund-Value.
59.

Which One of the Following Claims, can be Payable, Only to the Assignee or Nominee?

A. Death-Claim
B. Maturity-Claim
C. Survival-Benefit
D. Surrender-Value
Answer» A. Death-Claim
60.

Which One of the Following Documents, is an Additional Document, required to be submitted for Claim, in Case of Accidental Death, as compared to Natural Death?

A. Certificate of Burial or Cremation
B. Treating Physician’s Certificate
C. Post-Mortem Report
D. Employer’s Certificate
Answer» C. Post-Mortem Report
61.

Which One of the Following Documents, needs to be submitted, by the Nominee, in the Event of Natural Death of the Life-Assured? Choose the Most Appropriate Option.

A. Inquest Report
B. Death-Certificate
C. Post-Mortem Report
D. First Information Report (F.I.R.)
Answer» B. Death-Certificate
62.

Mr. Rahul had purchased an Insurance-Cover, from ABC Insurance Company, for a Period of 20 Years. On Completion of 20 Years, the Company pays Fund-Value to Mr. Rahul, as the Maturity-Claim. Which Type of Plan, was taken, by Mr. Rahul?

A. Participating Plan
B. Return of Premium(s) Plan
C. Unit-Linked Insurance Plan (U.L.I.P.)
D. Money-Back Assurance Plan
Answer» C. Unit-Linked Insurance Plan (U.L.I.P.)
63.

Mr. Vishal had taken an Insurance of Rupees 50 Lakhs, for a Period of 25 Years. On Maturity, the Insurer pays the Maturity-Claim Minus the Survival-Benefits, Received During the Term of the Policy. Which Type of Plan, was taken, by Mr. Vishal?

A. Participating Plan
B. Return of Premium(s) Plan
C. Unit-Linked Insurance Plan (U.L.I.P.)
D. Money-Back Assurance Plan
Answer» D. Money-Back Assurance Plan
64.

Mr. Sudhir had taken an Insurance-Cover of Rupees 25 Lakhs, from ABC Insurance Company, 20 Years Back. On Maturity, the Company pays the Sum-Assured Plus Accumulated Bonuses, Less the Dues (Outstanding Premium(s)), as the Maturity-Claim, to Mr. Sudhir. Which Type of Plan, was taken, by Mr. Sudhir?

A. Participating Plan
B. Return of Premium(s) Plan
C. Unit-Linked Insurance Plan (U.L.I.P.)
D. Money-Back Assurance Plan
Answer» A. Participating Plan
65.

Mr. Kapil had taken Insurance-Cover of Rupees 50 Lakhs, for a Period of 25 Years. Mr. Kapil dies in a Car- Accident, during the Policy-Term, and the Company pays the Sum-Assured Plus Accumulated Bonuses, to His Nominee. Which Type of Claim, was paid by the Insurance Company?

A. Maturity-Claim
B. Death-Claim
C. Rider-Benefit
D. Survival-Benefit
Answer» B. Death-Claim
66.

Why Do, Insurers need Material Information?

A. For Documentation Purposes.
B. Decide on the Risk- Acceptance, and the Terms and Conditions, Associated.
C. To Comply with the Regulatory Requirements.
D. To Improve the Customer-Service.
Answer» B. Decide on the Risk- Acceptance, and the Terms and Conditions, Associated.
67.

Which Element of a Valid Contract, relates to Insurance-Premium?

A. Offer and Acceptance
B. Capacity of Parties-to- Contract
C. Free Consent
D. Consideration
Answer» D. Consideration
68.

Identify the Choice, which relates to In-Accurate Statements, which are made with Any Fraudulent Intention.

A. Representation
B. Mis-Representation
C. Coercion
D. Fraud
Answer» B. Mis-Representation
69.

Identify the Option, that can be treated as a Valid Contract.

A. Mr. Ramesh buys a Property, from His Friend, for a Throw- Away Price.
B. Mr. Ramesh enters into a Contract, when, He is Not in a Sound State of Mind.
C. Mr. Ramesh bribes an Official, to get into a Contract.
D. Mr. Ramesh provides False Information, to get Mr. Mahesh, to sign a Contract.
Answer» A. Mr. Ramesh buys a Property, from His Friend, for a Throw- Away Price.
70.

Compare: Gambling and Insurance.

A. Gambling and Insurance, Both, are the Same.
B. Gambling has No Insurable Interest involved, but Insurance does have.
C. Insurance has Only Profitable Outcomes, while, Gambling could result in Losses.
D. Gambling is Legally Enforceable, but, Insurance is Not.
Answer» B. Gambling has No Insurable Interest involved, but Insurance does have.
71.

Summarise "Contracts of Adhesion", for us.

A. These Contracts are drafted by Both Parties, and have to be accepted by Both.
B. These Contracts are drafted by One Party, and the Other can only Accept or Reject it.
C. These Contracts are drafted by One Party, and the Other has to Accept it.
D. These Contracts are Binding on Both the Parties.
Answer» B. These Contracts are drafted by One Party, and the Other can only Accept or Reject it.
72.

Mr. Ramesh fudges His Company Balance-Sheet, Before Selling-Out the Company. Categorise His Action into One of the Following Options.

A. Mistake
B. Coercion
C. Mis-Representation
D. Fraud
Answer» D. Fraud
73.

What is the Subject-Matter of Life Assurance?

A. Premium
B. Human Life
C. Property
D. Goodwill
Answer» B. Human Life
74.

Select a Scenario, that showcases the Principle of Uberrima Fides.

A. Timely Payment of Premium.
B. Disclosing All Material Information on the Insurance Proposal- Form.
C. Faking All Material Information on the Insurance Proposal- Form.
D. Disclosing All Irrelevant Information on the Insurance Proposal- Form.
Answer» B. Disclosing All Material Information on the Insurance Proposal- Form.
75.

In Relation to Life Assurance, Look at the Following Two Statements, and Select the True One(s):
I: Age is Material Information, and may affect the Terms of Underwriting.
II: If Age is Found to be Different, the Only Effect is on the Premium-Rate.

A. Only Statement-I is True.
B. Only Statement-II is True.
C. Both: Statement-I and Statement-II, are True.
D. Both: Statement-I and Statement-II, are False.
Answer» A. Only Statement-I is True.
76.

Select a Reason, for Discharging a Contract, Under Common Law.

A. Frustration
B. Mistake
C. Mis-Representation
D. Concealment
Answer» C. Mis-Representation
77.

Label the Document, that is used, to lay-down the Terms of the Insurance Contract, when it is bought. Choose the Most Appropriate Option.

A. Policy
B. Agreement
C. Authorisation
D. Endorsement
Answer» A. Policy
78.

Label the Interest, that the Insured has, in the Subject-Matter of Life Assurance. Choose the Most Appropriate Option.

A. Speculative Interest
B. Wager Interest
C. Insurable Interest
D. Indemnity Interest
Answer» C. Insurable Interest
79.

How Would You Describe the Agreement between the Insurer and the Insured? Choose the Most Appropriate Option.

A. Interim Agreement
B. Provisional Agreement
C. Constant Agreement
D. Contingent Agreement
Answer» D. Contingent Agreement
80.

The Main Difference between Legal Contracts, in General; and Insurance Contracts, is that --.

A. Insurance Contracts are the Contracts of Uberrima Fidei.
B. Insurance Contracts are Legally Enforceable Contracts.
C. Insurance Contracts are Always Profitable.
D. Insurance Contracts are Not Subject to Any Regulation, What-So- Ever.
Answer» A. Insurance Contracts are the Contracts of Uberrima Fidei.
81.

Advise Mr. Rajan, on the Point or Time, when Insurable Interest has to be Present, in Case of Life Assurance.

A. Only at the Time of Taking the Policy.
B. Only at the Time of Making a Claim.
C. At the Time of Taking a Policy, and at the Time of Making a Claim.
D. In Case of Life Assurance, No Insurable Interest is Required.
Answer» A. Only at the Time of Taking the Policy.
82.

Advise Miss Anita, on the Point or Time, when Insurable Interest has to be Present, in Case of Property-Insurance.

A. Only at the Time of Taking the Policy.
B. Only at the Time of Making a Claim.
C. At the Time of Taking a Policy, and at the Time of Making a Claim.
D. In Case of Property Insurance, No Insurable Interest is Required.
Answer» C. At the Time of Taking a Policy, and at the Time of Making a Claim.
83.

Mr. Mahesh takes out an Insurance Policy on His House. He sells His House, After a Couple of Months of taking the Policy. In Case, there is Some Damage to the House, can Mr. Mahesh receive the Claim?

A. Yes, Because, Insurable Interest was Present at the Time of Taking-Out the Policy.
B. Yes, if the Current Owner of the House, allows.
C. Yes, if the Damage is Within One Year of His Selling the House.
D. No, Because, there is No Insurable Interest, Present.
Answer» D. No, Because, there is No Insurable Interest, Present.
84.

Mr. Rajan fell-off a Horse, and landed in a Puddle. He had to lie in the Puddle for a Long-Time, because, the Fall had broken His Leg, this resulted in Him contracting a Severe Pneumonia. He was treated in a Near-By Hospital, where, He dies, as a Result of Pneumonia. What is the Proximate Cause of Death, in this Case?

A. Pneumonia.
B. Leg-Injury, sustained as a Result of the Fall.
C. Negligence of Doctors.
D. Hospital-Treatment.
Answer» B. Leg-Injury, sustained as a Result of the Fall.
85.

Mr. Ramesh is Married, and wants to buy a Life Assurance Cover on His Friend's Life. Find Out, if He will be Able to do so.

A. Yes, Mr. Ramesh can buy Life Assurance on His Friend's Life.
B. No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because, He is Married.
C. No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because, there is No Insurable Interest, Present.
D. No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because of the Principle of Caveat Emptor.
Answer» C. No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because, there is No Insurable Interest, Present.
86.

Which One of the Following Bodies, regulates the Insurance Companies in India?

A. Reserve Bank of India (R.B.I.) and Finance Ministry, Together.
B. Securities and Exchange Board of India (S.E.B.I.) and Association of Mutual Funds in India (A.M.F.I.), Together.
C. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D. Finance Ministry
Answer» C. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
87.

Who among the Following, are Not Regulated by Insurance Regulatory and Development Authority of India (I.R.D.A.I.)?

A. Third-Party Administrators (T.P.A.s)
B. Insurance Brokers
C. Current Account-Savings Account (C.A.-S.A.) Agents
D. Corporate Agents
Answer» C. Current Account-Savings Account (C.A.-S.A.) Agents
88.

Which One of the Following Statements, is Correct?

A. The Prime Purpose of Insurance-Regulation, is, To Protect the Policy- Holders' Interests.
B. Regulations, made by Insurance Regulatory and Development Authority of India (I.R.D.A.I.), are, to ensure that, Insurance- Companies should exist, Not as Financially Sound Organisations, but, as Socially Responsible Organisations.
C. Insurance is an Absolutely Legal Contract, in Compliance with the Provisions of Indian Contract Act and Other Laws of the Country.
D. Insurance Regulatory and Development Authority of India (I.R.D.A.I.) regulates the Companies from their Registration on- wards, and monitors All their Major Activities, like, Investments, Accounting, etc.
Answer» A. The Prime Purpose of Insurance-Regulation, is, To Protect the Policy- Holders' Interests.
89.

What is the Prime Purpose of Insurance-Regulation? Choose the Most Appropriate Answer.

A. To ensure that, Rural Areas and Weaker Sections of Population gets the Adequate Insurance-Coverage.
B. To ensure that, Insurance Companies generate the Sufficient Profits, so that, they can Survive in the Long- Term.
C. To ensure that, Insurance-Cover is extended to All the Citizens of India.
D. To Protect the Policy- Holders' Interests.
Answer» D. To Protect the Policy- Holders' Interests.
90.

Which One of the Following Bodies, can issue the License to work as Individual Agents, in India?

A. Finance Ministry
B. Government of India
C. Life Insurance Corporation (L.I.C.) of India and General Insurance Corporation (G.I.C.) of India, Jointly.
D. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
Answer» D. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
91.

Which One of the Following Bodies, regulates the Capital Market in India?

A. Reserve Bank of India (R.B.I.)
B. Securities and Exchange Board of India (S.E.B.I.)
C. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D. Association of Mutual Funds in India (A.M.F.I.)
Answer» B. Securities and Exchange Board of India (S.E.B.I.)
92.

Which One of the Following Bodies regulates the Banks in India?

A. Reserve Bank of India (R.B.I.)
B. Securities and Exchange Board of India (S.E.B.I.)
C. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D. Association of Mutual Funds in India (A.M.F.I.)
Answer» A. Reserve Bank of India (R.B.I.)
93.

Third-Party Administrators (T.P.A.s) are Regulated, by Which of the Following Bodies?

A. Life Insurance Council and General Insurance Council, Jointly.
B. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
C. Insurance Brokers Association of India
D. Finance Ministry
Answer» B. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
94.

Which One of the Following, is the Basic Insurance Legislation of the Country, that governs Insurance Business in India?

A. Insurance Act, 1938.
B. Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999.
C. Deposit Insurance and Credit Guarantee Corporation Act, 1961.
D. Public Liability Insurance Act, 1991.
Answer» B. Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999.
95.

Insurance Agents, who hold the Licence to act as Agents for Both: Life Insurer, General Insurer, Health Insurer, and Each of the Two Mono-Line Insurers, are called --.

A. Brokers
B. Corporate Agents
C. Third-Party Administrators (T.P.A.s)
D. Composite Insurance Agents
Answer» D. Composite Insurance Agents
96.

--- was established in the Year: 2000, as an In- Dependent Authority, to Regulate and Develop the Insurance Industry.

A. Reserve Bank of India (R.B.I.)
B. Securities and Exchange Board of India (S.E.B.I.)
C. Insurance Regulatory and Development Authority (I.R.D.A.)
D. Association of Mutual Funds in India (A.M.F.I.)
Answer» C. Insurance Regulatory and Development Authority (I.R.D.A.)
97.

Which One of the Following Bodies, has prescribed the Regulations for Protecting the Interests of Policy- Holders, stipulating the Obligations on Both: Insurers as well as Intermediaries?

A. Life Insurance Council and General Insurance Council, Jointly.
B. Policy-Holders' Association of India (P.A.I.).
C. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D. Life Insurance Corporation (L.I.C.) of India and General Insurance Corporation (G.I.C.) of India, Jointly.
Answer» C. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
98.

Which One of the Following Acts, has the Provisions for Monitoring and Control of Operations of Insurance Companies?

A. Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999.
B. Deposit Insurance and Credit Guarantee Corporation Act, 1961.
C. Public Liability Insurance Act, 1991.
D. Insurance Act, 1938.
Answer» A. Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999.
99.

If Insurance Firm accepts such Applicants, Who are at a Greater Than Normal Risk or are Not Insurable, but conceal or falsify the Information about their Actual Condition or Situation, so that, they get Insurance, then this will be known as --. Choose the Most Appropriate Option.

A. Insurance-Screening
B. Adverse Selection
C. Underwriting-Lapse
D. Proposal Re-View
Answer» C. Underwriting-Lapse
100.

Insurance Act came into Effect, on --.

A. 1st June, 1938
B. 1st July, 1938
C. 1st June, 1939
D. 1st July, 1939
Answer» C. 1st June, 1939
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