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270+ Insurance Exam (LIFE) Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Uncategorized topics .

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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
discuss
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.
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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.
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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.
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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
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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
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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.
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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.
discuss
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
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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
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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
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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.)
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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
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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
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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
discuss
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.
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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
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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
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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.
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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.
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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.
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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
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73.

What is the Subject-Matter of Life Assurance?

A. Premium
B. Human Life
C. Property
D. Goodwill
Answer» B. Human Life
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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.
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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.
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76.

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

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