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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251.	What Does the Term: “Premium”, Denote, in Relation to an Insurance Policy?
A.	Profit, Earned by the Insurer.
B.	Price, Paid by an Insured, for Purchasing the Policy.
C.	Margins of an Insurer, on a Policy.
D.	Expenses, incurred by an Insurer, on a Policy.
Answer» B. Price, Paid by an Insured, for Purchasing the Policy.

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252.	Illustrate the Purpose of Having the Capital-Adequacy Norms for the Insurers.
A.	To Increase the Net Interest Income.
B.	To Increase the Profitability.
C.	To Maintain the Sufficient Reserves, to Address the Present Needs and Future Needs.
D.	To Subsidise the Insurance, for the Poor People.
Answer» C. To Maintain the Sufficient Reserves, to Address the Present Needs and Future Needs.

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253.	What Does, Valuation in Life Assurance, mean?
A.	The Process of Arriving at the Profit of a Life Assurance Company.
B.	The Process of Determining the Net Premium for a Life Assurance Policy.
C.	The Process of Arriving at the Bonus in a Life Assurance Company.
D.	The Process, by which, the Value of All the Existing Policies, is ascertained, in a Life Assurance Company.
Answer» D. The Process, by which, the Value of All the Existing Policies, is ascertained, in a Life Assurance Company.

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254.	Identify the Option, that can be termed as Policy- Withdrawal.
A.	Surrender of the Policy, in Return for Acquired Surrender-Value.
B.	Dis-Continuation of Premium-Payment by the Policy-Holder.
C.	Policy Up-Grade.
D.	Policy Down-Grade.
Answer» A. Surrender of the Policy, in Return for Acquired Surrender-Value.

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255.	All of the Following, are the Components of Unit- Linked Insurance-Plan (U.L.I.P.) Premiums, Except --.
A.	Policy-Allocation-Charge
B.	Investment-Risk- Premium
C.	Mortality-Charge
D.	Social Security Charge, to fulfill Rural Obligations of the Insurance Company, as mandated by Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
Answer» D. Social Security Charge, to fulfill Rural Obligations of the Insurance Company, as mandated by Insurance Regulatory and Development Authority of India (I.R.D.A.I.)

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256.	Formulate a Way of Defining the Surplus, with Regard to Insurance Companies.
A.	Excess Value of Cash In- Flow over Cash Out- Flow.
B.	Excess Value of Cash Out-Flow over Cash In- Flow.
C.	Excess Value of Liabilities over Assets.
D.	Excess Value of Assets over Liabilities.
Answer» D. Excess Value of Assets over Liabilities.

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257.	In Case of --, an Insurance Company expresses the Bonus, as a Percentage of Basic Benefit and Already Attached Bonuses.
A.	Reversionary Bonus
B.	Compound Bonus
C.	Terminal Bonus
D.	Persistency Bonus
Answer» B. Compound Bonus

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258.	From the Following Options, Select the One, that is Not a Factor, in Determining the Life Assurance Premium.
A.	Mortality
B.	Rebate
C.	Reserves
D.	Management-Expenses
Answer» B. Rebate

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259.	Select the True Statements.
A.	The Typical Loading to a Net Premium, would have 3 Parts: 1) A Constant Amount for Premiums, 2) A Constant Amount for Each ‘1,000 Sum- Assured’, and 3) A Constant Amount per Policy.
B.	The Typical Loading to a Net Premium, would have 3 Parts: 1) A Percentage of Premiums, 2) A Constant Amount for Each ‘1,000 Sum- Assured’, and 3) A Constant Amount per Policy.
C.	The Typical Loading to a Net Premium, would have 3 Parts: 1) A Percentage of Premiums, 2) A Constant Percentage for Each ‘1,000 Sum-Assured’, and 3) A Constant Amount per Policy.
D.	The Typical Loading to a Net Premium, would have 3 Parts: 1) A Percentage of Premiums, 2) A Constant Amount for Each ‘1,000 Sum- Assured’, and 3) A Percentage Amount per Policy.
Answer» B. The Typical Loading to a Net Premium, would have 3 Parts: 1) A Percentage of Premiums, 2) A Constant Amount for Each ‘1,000 Sum- Assured’, and 3) A Constant Amount per Policy.

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260.	With Regard to Valuation of Assets, by Insurance Companies, What is the Value, at which, the Life Insurer has purchased or acquired its Assets?
A.	Discounted Future Value
B.	Discounted Present Value
C.	Market-Value
D.	Book-Value
Answer» D. Book-Value

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261.	In Which Case, Does, a Company express the Bonus, as a Percentage of Basic Benefit and Already Attached Bonuses?
A.	Reversionary Bonus
B.	Compound Bonus
C.	Terminal Bonus
D.	Persistency Bonus
Answer» B. Compound Bonus

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262.	Name the Two Policy-Features, on which, Rebates on Premium can be offered by the Insurer.
A.	Policy-Plan and Risk- Cover
B.	Policy-Plan and Mode of Premiums
C.	Sum-Assured and Mode of Premiums
D.	Sum-Assured and Policy- Plan
Answer» C. Sum-Assured and Mode of Premiums

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263.	Who bears the Mortality-Risk, in Case of Unit-Linked Insurance-Plans (U.L.I.P.s)?
A.	Insurer
B.	Insured
C.	Insured or Insurer, as specified in the Terms of the Policy.
D.	Insurer and the Mutual Fund, where, the Money is invested.
Answer» A. Insurer

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264.	Discover the Scenario, where-in, the Insurer may charge an Extra Premium, to the Insured.
A.	Insured is Able to Afford the Extra Charge.
B.	Insured is a Standard Risk.
C.	Insured is a Sub- Standard Risk.
D.	Insured has purchased Other Insurance.
Answer» C. Insured is a Sub- Standard Risk.

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265.	--- is an Example of a Standard Age-Proof.
A.	Ration-Card
B.	Horoscope
C.	Pass-Port
D.	Village Panchayat Certificate
Answer» C. Pass-Port

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266.	The Free-Look Period of a Policy lasts for --- Days.
A.	15
B.	30
C.	45
D.	60
Answer» A. 15

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267.	Money-Laundering is the Process of Bringing --- Money, into an Economy, by Hiding its --- Origin, so that, it appears to be Legally Acquired.
A.	Illegal, Illegal
B.	Legal, Legal
C.	Illegal, Legal
D.	Legal, Illegal
Answer» A. Illegal, Illegal

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268.	--- need to be mentioned in the Agent's Report. Choose the Most Appropriate Option.
A.	Matters of Health, Habits and Occupation, Income and Family Details
B.	Matters, Related to the Heart
C.	Matters, Related to Current Affairs
D.	Matters, Related to Personal Ambitions
Answer» A. Matters of Health, Habits and Occupation, Income and Family Details

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269.	--- are recorded and mentioned by the Doctor in His or Her Report, called the Medical Examiner’s Report. Choose the Most Appropriate Option.
A.	Financial Details
B.	Personal Hygiene
C.	Details pertaining to Physical Features, like: Height, Weight, Blood- Pressure
D.	Details related to Hospitalisation Preferences
Answer» C. Details pertaining to Physical Features, like: Height, Weight, Blood- Pressure

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270.	Identify the Formal Legal Document, used by Insurance Companies, that provides the Details about the Product. Choose the Most Appropriate Option.
A.	Proposal-Form
B.	Proposal-Quote
C.	Information-Docket
D.	Prospectus
Answer» D. Prospectus

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271.	Identify the Feature, that will be checked, in a Medical Examiner's Report.
A.	Emotional Behaviour of the Proposer.
B.	Height, Weight, and Blood-Pressure.
C.	Social Status.
D.	Truthfulness.
Answer» B. Height, Weight, and Blood-Pressure.

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272.	Isolate the Valid Combination: Type of Age-Proofs: I: Standard II: Non-Standard Age-Proofs: a: Pass-Port b: Horoscope c: Panchayat Certificate
A.	I-b
B.	I-c
C.	II-a
D.	I-a
Answer» D. I-a

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273.	Which One of the Following, is Not a Know-Your- Customer (K.Y.C.) Document?
A.	Photograph
B.	Age-Proof
C.	Address-Proof
D.	Horoscope
Answer» D. Horoscope

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274.	Mr. Mahesh is a Drug-Dealer. He doesn't have a Regular Job. He made Rupees 10 Lakhs, from Sale of Drugs. He can't buy a House or Car, etc., with the Money. If He does, the Government will get Suspicious, and start investigating the Drug-Dealer. So, the Drug-Dealer opens a Bar or Tavern, and pads the Books to show Huge Profits on the Tavern, and pays His Taxes on the Money. This is an Example of --.
A.	Fraud
B.	Mis-Representation
C.	Money-Laundering
D.	Tax-Jugglery
Answer» C. Money-Laundering

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275.	Look at the Following Scenarios, and Select the Ones, that need to be flagged under an Anti-Money- Laundering (A.M.L.) Programme. I: A Customer cancels a Transaction, and requests to do a Second Transaction for Less Amount, in order to avoid providing His or Her Identity-Proof. II: A Customer requests an Un-Usually High Dollar- Transaction, and cannot explain the Reason for the Transaction or the Source of the Cash. III: A Customer appears Nervous and asks Un-Usual Questions about Your Record-Keeping. IV: A Customer tries to bribe a Teller.
A.	I, Only.
B.	II, Only.
C.	III, Only.
D.	I, II, III, and IV.
Answer» D. I, II, III, and IV.

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276.	Insurance Regulatory and Development Authority of India (I.R.D.A.I.) has built, into its Regulations, a Consumer-Friendly Provision, called as, Free-Look Period. Describe the Same.
A.	A Free-Look Period provides a Window, to the Insured, where, He or She is Not Required to Pay the Premiums.
B.	A Free-Look Period provides a Window, to the Insured, where, He or She can Return the Policy, if He or She Does Not Like it.
C.	A Free-Look Period provides a Window, to the Insured, where He or She can Submit the Claims.
D.	A Free-Look Period provides a Window, to the Insured, where, He or She can Add the Nominations on the Policy.
Answer» B. A Free-Look Period provides a Window, to the Insured, where, He or She can Return the Policy, if He or She Does Not Like it.

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277.	Name the Insurance Regulator in India.
A.	Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
B.	Institute of Insurance and Risk Management (I.I.R.M.)
C.	Insurance Institute of India (I.I.I.)
D.	National Insurance Academy (N.I.A.)
Answer» A. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)

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278.	Identify the Factor, impacting the Risk, in Case of Insurance.
A.	Face-Value
B.	Moral Hazard
C.	Cash Value
D.	Policy Document
Answer» B. Moral Hazard

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279.	Many Proposals are Underwritten and Accepted for Insurance, without calling for a Medical Examination. This Form of Underwriting, is referred to as --.
A.	Healthy Underwriting
B.	Non-Medical Underwriting
C.	Non-Adverse Underwriting
D.	General Underwriting
Answer» B. Non-Medical Underwriting

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270+ Insurance Exam (LIFE) Solved MCQs

What Does the Term: “Premium”, Denote, in Relation to an Insurance Policy?

Illustrate the Purpose of Having the Capital-Adequacy Norms for the Insurers.

What Does, Valuation in Life Assurance, mean?

Identify the Option, that can be termed as Policy- Withdrawal.

All of the Following, are the Components of Unit- Linked Insurance-Plan (U.L.I.P.) Premiums, Except --.

Formulate a Way of Defining the Surplus, with Regard to Insurance Companies.

In Case of --, an Insurance Company expresses the Bonus, as a Percentage of Basic Benefit and Already Attached Bonuses.

From the Following Options, Select the One, that is Not a Factor, in Determining the Life Assurance Premium.

Select the True Statements.

With Regard to Valuation of Assets, by Insurance Companies, What is the Value, at which, the Life Insurer has purchased or acquired its Assets?

In Which Case, Does, a Company express the Bonus, as a Percentage of Basic Benefit and Already Attached Bonuses?

Name the Two Policy-Features, on which, Rebates on Premium can be offered by the Insurer.

Who bears the Mortality-Risk, in Case of Unit-Linked Insurance-Plans (U.L.I.P.s)?

Discover the Scenario, where-in, the Insurer may charge an Extra Premium, to the Insured.

--- is an Example of a Standard Age-Proof.

The Free-Look Period of a Policy lasts for --- Days.

Money-Laundering is the Process of Bringing --- Money, into an Economy, by Hiding its --- Origin, so that, it appears to be Legally Acquired.

--- need to be mentioned in the Agent's Report. Choose the Most Appropriate Option.

--- are recorded and mentioned by the Doctor in His or Her Report, called the Medical Examiner’s Report. Choose the Most Appropriate Option.

Identify the Formal Legal Document, used by Insurance Companies, that provides the Details about the Product. Choose the Most Appropriate Option.

Identify the Feature, that will be checked, in a Medical Examiner's Report.

Isolate the Valid Combination: Type of Age-Proofs: I: Standard II: Non-Standard Age-Proofs: a: Pass-Port b: Horoscope c: Panchayat Certificate

Which One of the Following, is Not a Know-Your- Customer (K.Y.C.) Document?

Insurance Regulatory and Development Authority of India (I.R.D.A.I.) has built, into its Regulations, a Consumer-Friendly Provision, called as, Free-Look Period. Describe the Same.

Name the Insurance Regulator in India.

Identify the Factor, impacting the Risk, in Case of Insurance.

Many Proposals are Underwritten and Accepted for Insurance, without calling for a Medical Examination. This Form of Underwriting, is referred to as --.