UncategorizedLic IC 38 Agent Exam Mock Test /50 3 LIC-IC38 IC-38 INSURANCE AGENTS 1. For what specific purposes can the company share the proposer's medical records? a) Proposal underwriting and/or claims settlement b) Marketing and promotional activities c) Public disclosure of medical records d) Medical research without consent 2. Under what circumstances may an advertisement be required for reporting the loss of a policy? a) If the policyholder suspects foul play in the loss of the policy b) If the payment is shortly due and the amount to be paid is high c) If the policyholder wants to notify the public about the loss. d) If the policyholder wishes to claim the loss as a tax deduction 3. What is the capping associated with room rent and ICU charges under Arogya Sanjeevani Insurance Policy? a) The capping is determined by the type of treatment required. b) There is no capping on room rent and ICU charges c) The capping is fixed at a certain percentage of the sum insured. d) The capping varies based on the age of the policyholder. 4. How does buying insurance differ from buying a car? a) Insurance cannot be experienced, while a car can be experienced b) Insurance is easily understood, while a car is not c) Insurance is a physical product, while a car is a service d) Insurance is tangible, while a car is intangible 5. What authorization does the insured person give to the insurer regarding medical information? a) Authorization to share medical information with third-party administrators b) Authorization to seek information from previous employers c) Authorization to seek medical information from any hospital/medical practitioner d) Authorization to seek information from friends and relatives 6. What are the barriers to effective communication? a) Only physical barriers b) No barriers at all c) Different kinds of barriers that can arise at each step in the communication process d) Only emotional barriers 7. How long is the waiting period for cataract for some other insurer? a) 2 years b) No waiting period c) 3 years d) 1 year 8. Why does the proposer need to disclose details of any declined proposals, special conditions, or policy cancellations? a) To assess the proposer's negotiation skills b) To compare premium rates between insurers c) To evaluate the proposer's risk profile d) To determine the proposer's loyalty to insurers 9. How does a supplementary cover differ from an indemnity policy? a) It provides compensation for incidental expenses b) It has more extensive coverage for pre-existing conditions c) It offers higher sum insured limits d) It covers all types of medical expenses 10. What is free consent in a contract? a) When it is caused by coercion and fraud b) When it is not caused by coercion, fraud or misrepresentation c) When it is caused by mistake d) When it is not caused by coercion, undue influence, fraud, misrepresentation or mistake 11. What is the duty of an Agent regarding assisting and advising their customers/policyholders? a) To assist and advise only on claims settlement related procedures b) To assist and advise on policy servicing matters including assignment of policy, change of address, or exercise of options under the policy or any other policy service, as required c) To not assist or advise on any policy servicing matters d) To assist and advise only on obtaining requisite documents at the time of filing the proposal form with the insurer 12. What information is included in the proposal form regarding insurance history? a) Past insurance and claims history with any other insurer b) Monthly income and expenses c) Names of family members d) Details of the proposer's occupation 13. Is there a grace period for paying the premium for Motor Policies? a) No b) Yes c) Depends on the insurance provider d) Depends on the type of policy 14. Which of the following is not a characteristic of effective healthcare? a) Easily available b) Appropriate to the needs of the people c) Comprehensive d) Expensive 15. What is co-payment in health insurance policies? a) A reimbursement for additional healthcare expenses b) A reduction in the overall sum insured c) A requirement to share a percentage of the claims amount d) A mandatory deductible for every claim 16. What is the Sales Process and what is its significance? a) A process that is only science b) A process that is both an art and science c) A process that is only an art. d) A process that is neither an art nor science 17. What is the maximum pay-out for each of the listed treatments in the policy? a) It is determined by the insured's income level b) It is specified by the insured's age c) It is clearly mentioned in the policy d) It is determined by the insurance company's profits 18. What principle does covering pre-existing diseases go against? a) The principle of providing equal access to healthcare b) The principle of risk management. c) The principle of fairness d) The principle of transparency 19. What is the purpose of a bonus in life insurance? a) To increase the basic premium amount b) To provide additional benefits to policyholders c) To reduce the liability of the insurance company d) To attract new customers to the insurance company 20. Which of the following is not an investment vehicle in India? a) Small savings schemes of post office b) Real estate investment trusts (REITs c) Public issues of shares d) Fixed deposits of banks/ corporates 21. Can the insurance cover be reinstated if it is ceased due to technical or administrative reasons? a) Yes, but subject to certain conditions b) Yes, but only with a penalty fee c) No, once it is ceased, it cannot be reinstated d) Yes, on receipt of full annual premium 22. What does the reinstatement of sum insured cover? a) AYUSH treatment expenses b) Restoration of original sum insured after a claim c) Life-threatening ailments d) Maternity expenses 23. Why do insurers charge lower premiums when the insured voluntarily opts for higher deductibles? a) Because it lowers the amount of risk for the insured b) Because it lowers the amount of risk for the insurer c) Because it increases the amount of risk for the insured d) Because it increases the amount of risk for the insurer 24. What is the age limit for a member to attain for the accident cover to terminate? a) 65 years b) 70 years c) 75 years d) 80 years 25. What is the meaning of "Appointment Letter" as per IRDAI regulations? a) A letter issued by an individual to apply for an insurance policy. b) A letter issued by an individual to resign from the post of an insurance agent c) A letter issued by an insurer to appoint a designated official. d) A letter issued by an insurer to appoint an insurance agent 26. What is the first stage in any numerical or statistical analysis? a) Calculation of premiums b) Collection of data c) Processing of claims d) Identification of potential risks 27. What is the basis for determining the pure rate of premium? a) Customer preferences b) Statistical data of past losses c) Market trends d) Future loss experience 28. Is it mandatory for all insurers to offer Corona Rakshak? a) It depends on the policyholder's age b) Yes c) No d) It depends on the insurer's preference 29. Who are the providers of healthcare services in the private sector? a) Only voluntary organizations and individuals b) Only for-profit corporate entities c) Only the unqualified providers (quacks) d) Various entities including voluntary organizations, corporate entities, trusts, solo practitioners, diagnostic laboratories, and pharmacy shops 30. What can happen to a death claim if the proposer made incorrect statements or suppressed material facts? a) The contract is declared void and all benefits are forfeited b) The insurer requests further documentation c) The claim is paid in full d) The claim is processed with additional scrutiny 31. What is inflation? a) An increase in the purchasing power of money b) A decrease in the value of money over time c) A fall in the general level of prices of goods and services in an economy d) A rise in the general level of prices of goods and services in an economy over a period of time 32. What is "Consensus Ad-Idem" in a contract? a) Communication of acceptance to the proposer b) Agreement between the parties c) None of the above d) Mutual benefit for the parties 33. What is the purpose of a bonus in life insurance? a) To reduce the liability of the insurance company b) To attract new customers to the insurance company c) To provide additional benefits to policyholders d) To increase the basic premium amount 34. What regulations govern the issuance of a prospectus in the insurance industry? a) Insurance Act, 1938 and Protection of Policyholders Interest Regulations 2017 b) Health Insurance Regulations 2016 only c) Protection of Policyholders Interest Regulations 2017 only d) Insurance Act, 1938 and Health Insurance Regulations 2016 35. What is estate planning? a) A plan for the transfer of assets during one's lifetime b) A plan for the accumulation of wealth after retirement c) A plan for the purchase of insurance policies. d) A plan for the devolution and transfer of ones estate after ones demise 36. What is the purpose of the Employees' State Insurance Scheme? a) To provide health insurance for government employees b) To provide health insurance for all Indian citizens c) To provide comprehensive health services for blue-collar workers in the formal private sector d) To provide financial assistance for medical expenses 37. When are alterations generally not permitted in a life insurance policy? a) When the policy is split into two or more policies b) During the first year of the policy, except for specific changes c) When there is a change in the mode of payment of premium d) When the policyholder wants to increase the sum assured. 38. What is the Proposal Form in insurance? a) The material change that needs to be disclosed during the period of insurance b) The confidential information collected during policy issuance c) The document used for making a proposal d) The legal contract between the insurer and policyholder 39. What is the major benefit of Unit Linked Plans over traditional plans? a) They offer higher death benefits to policyholders b) They provide guaranteed returns to policyholders c) They have lower premiums for policyholders d) They help to overcome the limitations of traditional plans 40. What are the components that make up the final rate of premium? a) Loss payments, agency commission, reserves, margin for profits b) Loss payments, reserves, profits, reserves for unexpected heavy losses c) Loss payments, loss expenses, agency commission, expenses of management, reserves for expected losses, margin for profits d) Loss payments, expenses of management, reserves for unexpected losses, profits 41. What evidence of the insured's insurability must be presented for a policy revival? a) Evidence of continued insurability, including health, financial income, and morals b) Evidence of satisfactory morals only c) Evidence of satisfactory health only d) Evidence of financial income only 42. What does the term "consumer" mean under the Consumer Protection Act? a) Any person who avails of services for commercial purposes b) Any person who obtains goods for resale c) Any person who buys goods or hires services for commercial purposes d) Any person who buys goods or hires services for personal use 43. How does a large sum assured impact premiums? a) It has no effect on the premium amount b) It allows for premium payment to be deferred c) It reduces the premium amount to be paid d) It increases the premium amount proportionally 44. What is the purpose of the "notice of claim" in health insurance policies? a) To determine the time limit for submission of claim documents for reimbursement claims. b) To facilitate the cashless facility for desired hospitalization c) To specify the time limits for document submission d) To provide immediate intimation of the claim to the insurance company 45. Which types of plans are popular options for overseas travel insurance? a) Study Plans b) Employment Plans c) Business and Holiday Plans d) All of the above 46. Which approach is more practical and relevant than risk avoidance? a) Risk reduction and control b) Risk avoidance c) Risk transfer d) Risk retention 47. Which complications related to diabetes are covered by this policy? a) Heart-related complications b) Lung-related complications c) Orthopedic complications d) Diabetic retinopathy, kidney, and diabetic foot complications 48. What is the exception to the cancellation of the nomination in an assignment? a) When the assignment is revoked by the assignor b) When the assignment is made to the insurance company for a policy loan c) When the assignee is a family member of the assignor d) When the assignor designates a new nominee before the assignment 49. What is the section number of the Insurance Act 1938 that states no risk can be assumed unless premium is received in advance? a) Section 59 b) Section 64 VB c) Section 1939 d) None of the above 50. When can a non-standard age proof be submitted to the life insurer? a) When the insured wants to avoid the standard age proof submission process b) Non-standard age proofs are not acceptable readily c) When the insured forgets to carry a standard age proof d) When the insured is unable to produce a standard age proof Your score is 0% LIC IC38 QUESTION ANSWER LIC IC 38
