UncategorizedLic IC 38 Agent Exam Mock Test Category: lic /50 0 LIC-IC38 IC-38 INSURANCE AGENTS 1. Why does the proposer need to disclose details of any declined proposals, special conditions, or policy cancellations? a) To determine the proposer's loyalty to insurers b) To compare premium rates between insurers c) To evaluate the proposer's risk profile d) To assess the proposer's negotiation skills 2. What information is included in the proposal form regarding insurance history? a) Names of family members b) Details of the proposer's occupation c) Past insurance and claims history with any other insurer d) Monthly income and expenses 3. Who are the providers of healthcare services in the private sector? a) Various entities including voluntary organizations, corporate entities, trusts, solo practitioners, diagnostic laboratories, and pharmacy shops b) Only voluntary organizations and individuals c) Only for-profit corporate entities d) Only the unqualified providers (quacks) 4. For what specific purposes can the company share the proposer's medical records? a) Proposal underwriting and/or claims settlement b) Medical research without consent c) Public disclosure of medical records d) Marketing and promotional activities 5. Which complications related to diabetes are covered by this policy? a) Diabetic retinopathy, kidney, and diabetic foot complications b) Orthopedic complications c) Lung-related complications d) Heart-related complications 6. What can happen to a death claim if the proposer made incorrect statements or suppressed material facts? a) The claim is processed with additional scrutiny b) The insurer requests further documentation c) The claim is paid in full d) The contract is declared void and all benefits are forfeited 7. 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) When the insured is unable to produce a standard age proof c) Non-standard age proofs are not acceptable readily d) When the insured forgets to carry a standard age proof 8. What is the Proposal Form in insurance? a) The legal contract between the insurer and policyholder b) The confidential information collected during policy issuance c) The document used for making a proposal d) The material change that needs to be disclosed during the period of insurance 9. What are the barriers to effective communication? a) Only physical barriers b) Only emotional barriers c) Different kinds of barriers that can arise at each step in the communication process d) No barriers at all 10. What is the age limit for a member to attain for the accident cover to terminate? a) 70 years b) 65 years c) 80 years d) 75 years 11. What is the Sales Process and what is its significance? a) A process that is both an art and science b) A process that is only science c) A process that is only an art. d) A process that is neither an art nor science 12. What evidence of the insured's insurability must be presented for a policy revival? a) Evidence of financial income only b) Evidence of continued insurability, including health, financial income, and morals c) Evidence of satisfactory health only d) Evidence of satisfactory morals only 13. How long is the waiting period for cataract for some other insurer? a) No waiting period b) 2 years c) 3 years d) 1 year 14. Is there a grace period for paying the premium for Motor Policies? a) Depends on the insurance provider b) Yes c) No d) Depends on the type of policy 15. What is the maximum pay-out for each of the listed treatments in the policy? a) It is clearly mentioned in the policy b) It is determined by the insurance company's profits c) It is determined by the insured's income level d) It is specified by the insured's age 16. What is "Consensus Ad-Idem" in a contract? a) Mutual benefit for the parties b) None of the above c) Communication of acceptance to the proposer d) Agreement between the parties 17. What is the purpose of a bonus in life insurance? a) To increase the basic premium amount b) To reduce the liability of the insurance company c) To attract new customers to the insurance company d) To provide additional benefits to policyholders 18. How does buying insurance differ from buying a car? a) Insurance is easily understood, while a car is not b) Insurance is tangible, while a car is intangible c) Insurance cannot be experienced, while a car can be experienced d) Insurance is a physical product, while a car is a service 19. 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. 20. 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 assignee is a family member of the assignor c) When the assignor designates a new nominee before the assignment d) When the assignment is made to the insurance company for a policy loan 21. What is the capping associated with room rent and ICU charges under Arogya Sanjeevani Insurance Policy? a) The capping varies based on the age of the policyholder. 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 is determined by the type of treatment required. 22. 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 23. What are the components that make up the final rate of premium? a) Loss payments, loss expenses, agency commission, expenses of management, reserves for expected losses, margin for profits b) Loss payments, reserves, profits, reserves for unexpected heavy losses c) Loss payments, expenses of management, reserves for unexpected losses, profits d) Loss payments, agency commission, reserves, margin for profits 24. What is the first stage in any numerical or statistical analysis? a) Identification of potential risks b) Calculation of premiums c) Collection of data d) Processing of claims 25. 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 personal use d) Any person who buys goods or hires services for commercial purposes 26. Is it mandatory for all insurers to offer Corona Rakshak? a) No b) Yes c) It depends on the policyholder's age d) It depends on the insurer's preference 27. Which approach is more practical and relevant than risk avoidance? a) Risk avoidance b) Risk retention c) Risk transfer d) Risk reduction and control 28. 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 provide immediate intimation of the claim to the insurance company d) To specify the time limits for document submission 29. Which of the following is not a characteristic of effective healthcare? a) Appropriate to the needs of the people b) Easily available c) Comprehensive d) Expensive 30. How does a supplementary cover differ from an indemnity policy? a) It covers all types of medical expenses b) It offers higher sum insured limits c) It provides compensation for incidental expenses d) It has more extensive coverage for pre-existing conditions 31. What is co-payment in health insurance policies? a) A requirement to share a percentage of the claims amount b) A reduction in the overall sum insured c) A reimbursement for additional healthcare expenses d) A mandatory deductible for every claim 32. Which types of plans are popular options for overseas travel insurance? a) Employment Plans b) Study Plans c) All of the above d) Business and Holiday Plans 33. What authorization does the insured person give to the insurer regarding medical information? a) Authorization to seek information from previous employers b) Authorization to seek medical information from any hospital/medical practitioner c) Authorization to share medical information with third-party administrators d) Authorization to seek information from friends and relatives 34. What is inflation? a) A fall in the general level of prices of goods and services in an economy b) A rise in the general level of prices of goods and services in an economy over a period of time c) A decrease in the value of money over time d) An increase in the purchasing power of money 35. What is free consent in a contract? a) When it is caused by mistake b) When it is caused by coercion and fraud c) When it is not caused by coercion, undue influence, fraud, misrepresentation or mistake d) When it is not caused by coercion, fraud or misrepresentation 36. 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 increases the amount of risk for the insurer c) Because it increases the amount of risk for the insured d) Because it lowers the amount of risk for the insurer 37. 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) Insurance Act, 1938 and Health Insurance Regulations 2016 d) Protection of Policyholders Interest Regulations 2017 only 38. What is the duty of an Agent regarding assisting and advising their customers/policyholders? a) 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 b) To assist and advise only on obtaining requisite documents at the time of filing the proposal form with the insurer c) To not assist or advise on any policy servicing matters d) To assist and advise only on claims settlement related procedures 39. 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 insurer to appoint an insurance agent c) A letter issued by an individual to resign from the post of an insurance agent d) A letter issued by an insurer to appoint a designated official. 40. What is the section number of the Insurance Act 1938 that states no risk can be assumed unless premium is received in advance? a) None of the above b) Section 64 VB c) Section 1939 d) Section 59 41. What is estate planning? a) A plan for the transfer of assets during one's lifetime b) A plan for the devolution and transfer of ones estate after ones demise c) A plan for the accumulation of wealth after retirement d) A plan for the purchase of insurance policies. 42. How does a large sum assured impact premiums? a) It reduces the premium amount to be paid b) It has no effect on the premium amount c) It increases the premium amount proportionally d) It allows for premium payment to be deferred 43. What is the major benefit of Unit Linked Plans over traditional plans? a) They have lower premiums for policyholders b) They offer higher death benefits to policyholders c) They provide guaranteed returns to policyholders d) They help to overcome the limitations of traditional plans 44. Which of the following is not an investment vehicle in India? a) Public issues of shares b) Small savings schemes of post office c) Real estate investment trusts (REITs d) Fixed deposits of banks/ corporates 45. What principle does covering pre-existing diseases go against? a) The principle of transparency b) The principle of fairness c) The principle of providing equal access to healthcare d) The principle of risk management. 46. What is the purpose of the Employees' State Insurance Scheme? a) To provide financial assistance for medical expenses b) To provide comprehensive health services for blue-collar workers in the formal private sector c) To provide health insurance for government employees d) To provide health insurance for all Indian citizens 47. What is the purpose of a bonus in life insurance? a) To provide additional benefits to policyholders b) To reduce the liability of the insurance company c) To increase the basic premium amount d) To attract new customers to the insurance company 48. What is the basis for determining the pure rate of premium? a) Statistical data of past losses b) Future loss experience c) Customer preferences d) Market trends 49. Under what circumstances may an advertisement be required for reporting the loss of a policy? a) If the payment is shortly due and the amount to be paid is high b) If the policyholder wants to notify the public about the loss. c) If the policyholder suspects foul play in the loss of the policy d) If the policyholder wishes to claim the loss as a tax deduction 50. What does the reinstatement of sum insured cover? a) AYUSH treatment expenses b) Life-threatening ailments c) Restoration of original sum insured after a claim d) Maternity expenses Your score is 0% LIC IC-38 1 / 50 How are riders described in the context of life insurance? Add-on benefits that can be included in the policy for additional coverage Claims settlement process and timelines Surrender and policy termination options Premium payment methods and frequency 2 / 50 Why is the hospital daily cash policy considered easy to sell? It offers comprehensive coverage for all medical expenses It provides higher reimbursement rates compared to other policies It is easy to explain to customers It covers pre-existing conditions without any waiting period 3 / 50 Why is it important to give proper advice on the amount of insurance to be purchased? To ensure the customer spends the maximum amount on insurance To make sure the customer purchases unnecessary insurance To link the amount of insurance to the customer's income and paying capacity To sell as much insurance as possible to the customer 4 / 50 Who is considered a medical practitioner for health insurance purposes? A person holding a valid registration from the medical council of any state of India A person holding a valid registration from the homeopathy council A person who is entitled to practice medicine within the jurisdiction of their registration A person who is acting within the scope and jurisdiction of their license. 5 / 50 Which of the following services is provided by assistance companies for overseas claims? Delivery of essential medicines Assistance with visa issues Monitoring of medical condition Guarantee of medical expenses incurred during hospitalization 6 / 50 Which of the following options correctly lists the key terms related to grievance redress in insurance? a, b, c, d b, c, d, e a, b, f, g c, d, e, f 7 / 50 Which family members are covered for death and permanent disablement (total or partial) in the family package of a Personal Accident policy? The insured individual and any earning family member Only the children and non-earning spouse All family members, regardless of their employment status Only the insured individual 8 / 50 Which factor is considered when determining insurable interest? Financial interest of the person in the asset to be insured The asset which is already insured Each insurers share of loss when more than one company covers the same loss The amount of the loss that can be recovered from the insurer 9 / 50 When does the insurance cover cease due to insufficient balance or administrative issues? On the anniversary date of joining the scheme On the last day of each month On the due date of premium payment On the member's birthday 10 / 50 What should be noted about the special features of the declaration in the proposal form? The proposer's address and contact information The proposer's signature and date of signing The proposer's occupation and income details The details and implications of the declaration to be signed 11 / 50 What should a customer ensure regarding hospital charges when availing cashless facility? The hospital charges should be paid upfront by the customer The hospital charges should be consistent with the limits and specified treatments The hospital charges should be covered by the insurance company directly The hospital charges should be negotiated with the TPA 12 / 50 What is the term used for the stage when a person has children? Provider Partner Parent Earner 13 / 50 What is the subject of Section 45 of the Insurance Act, 1938? Penalty for policy cancellation Grounds for questioning a life insurance policy Expiry period for life insurance policies Date of policy issuance 14 / 50 What is the range of sum insured offered by these plans? Rs. 10,000 to Rs. 1,00,000 Rs. 50,000 to Rs. 5,00,000 Rs. 1,00,000 to Rs. 10,00,000 Rs. 5,00,000 to Rs. 50,00,000 15 / 50 What is the purpose of the waiting period and survival clause in the policy? To delay the payment of benefits To ensure policyholder's compliance with medical treatments To protect the insurer from immediate claims after policy inception To allow time for accurate diagnosis and assessment of the illness 16 / 50 What is the purpose of adding a declaration at the end of the proposal form? To confuse the proposer To ensure the insured fills the form accurately To increase the cost of the insurance To reduce the sum insured 17 / 50 What is the net earnings Mr. Rajan's family would lose if he dies prematurely? Rs. 12,000 Rs. 24,000 Rs. 96,000 Rs. 1,20,000 18 / 50 What is the mode of enforcement of orders made by a District Commission, State Commission or the National Commission? They are not enforced They are enforced by the complainant They are enforced by any court of law They are enforced by the respective commission in the same manner as if it were a decree made by a Court in a suit before it 19 / 50 What is the historical development of insurance? Insurance has been a part of human society since ancient times Insurance was introduced in India during the colonial era Insurance is a modern concept that emerged in the past few decades Insurance has always been regulated by governments 20 / 50 What is the frequency of renewal for most general insurance policies? Every 6 months Every 2 years Every year Every 5 years 21 / 50 What is the consequence of failure to seek or follow medical advice in terms of health insurance coverage? Denial of coverage for all medical expenses Exclusion of coverage for pre-existing diseases Increased premiums for the policyholder Loss of coverage for any future medical expenses 22 / 50 What is money laundering and how is it related to financial services? The process of hiding illegal money to make it appear legal; criminals use financial services to launder money The process of hiding legal money to make it appear illegal; criminals avoid using financial services to launder money The process of transferring funds legally to conceal their origin; financial services are not used in money laundering The process of transferring illegal funds openly; financial services are not used in money laundering 23 / 50 What is Key-man Insurance? An insurance policy taken out by an individual to compensate for financial losses from the death of a family member An insurance policy taken out by a business to compensate for financial losses from the death of an important member of the business An insurance policy taken out by a business to compensate for financial losses from the death of a customer An insurance policy taken out by a business to compensate for financial losses from the loss of a contract 24 / 50 What is a deductible? A cost-sharing provision between an insurer and insured A policy that is used for life insurance only An amount of money paid by an insurer to the insured A type of coverage used for health insurance 25 / 50 What is a common issue faced by elderly individuals when it comes to insurance coverage? Limited coverage options for specific age groups Higher premium rates for certain age brackets Exclusion of pre-existing conditions Lack of coverage for hospitalization expenses 26 / 50 What factors are considered in premium calculation for a group policy? Age profile of the group members Size of the group Claims experience of the group All of the above 27 / 50 What do the IRDAI (Protection of Policyholders Interests) Regulations aim to do? Set premium rates for insurance policies Define the role of insurance agents Safeguard and protect the insured or beneficiary in case of claims Determine the coverage limits of insurance policies 28 / 50 What did IRDAI's Consolidated Guidelines on Product filing in Health Insurance Business revise? Guidelines on the renewal of health insurance policies Guidelines on the portability of health insurance policies Guidelines on the migration of health insurance policies Guidelines on the pricing of health insurance policies 29 / 50 What are the five major indicators of service quality according to the SERVQUAL approach? Accuracy, speed, cleanliness, reliability, and empathy Responsiveness, trust, competence, empathy, and tangibles Empathy, responsiveness, reliability, assurance, and tangibles Reliability, professionalism, accuracy, responsiveness, and trust 30 / 50 What are the elements of a valid contract? Offer and rejection, consideration, mutual distrust, free consent Offer and acceptance, mutual benefit, agreement between parties, free consent Offer and acceptance, coercion, unilateral benefit, free consent Offer and consideration, unilateral agreement, legal object, coercion 31 / 50 What action may a life insurance company take to guard against moral hazard? Requiring policyholders to disclose their past medical history Conducting background checks on policyholders' financial records Requesting the submission of a Moral Hazard Report by an official of the insurance company Offering additional coverage for risky activities like skiing expeditions 32 / 50 Under what circumstances may an inquiry be made regarding a life insurance proposal? When the proposed insured lives in a different city than the branch location When the proposed insured prefers a medical examination at a distant location When there is no clear insurable interest or the nominee is not a dependent When the agent is a close relative of the proposed insured 33 / 50 How many qualified practitioners in other systems of Medicine are there in India? Over 1 lakh practitioners Over 5 lakh practitioners Over 7 lakh practitioners Over 10 lakh practitioners 34 / 50 How does the health of a population impact a country's social and economic progress? There is no correlation between the health of a population and a country's progress Healthier individuals contribute to a stronger economy Poor health leads to social inequality and economic decline A country's social and economic progress depends on the health of its people 35 / 50 How does level premium work in life insurance? Premiums increase with age to cover death claims of those dying at higher ages Premiums decrease with age to cover death claims of those dying when young Premiums are fixed and do not increase with age but remain constant throughout the contract period Premiums are not required in life insurance contracts 36 / 50 How are pre-existing diseases defined? Diseases that occur after the commencement of the policy Diseases that occur within 48 months after the commencement of the policy. Diseases that occur within 48 months prior to the commencement of the policy Diseases that occur before a person is covered for insurance 37 / 50 How are death claims distributed among multiple nominees? Each nominee receives an equal share of the claim amount. The claim amount is paid to the nominee who reaches majority age first The claim amount is payable to the nominees jointly, or to the survivor(s) The claim amount is divided among the nominees based on their relationship to the life assured. 38 / 50 Why is insurance needed? To increase the primary burden of risk To increase the secondary burden of risk To reduce the primary and secondary burden of risk To transfer the risk from insurer to insured 39 / 50 Who can enter into an insurance contract according to the paragraph? Only minors Only adults who are not of sound mind Only individuals who are disqualified under law Both parties must be legally competent 40 / 50 Which of the following job roles is most likely to be associated with accidental hazards? Office administrator Circus artiste Accountant Teacher 41 / 50 Which of the following is NOT mentioned as a type of fixed benefit insurance plan? Hospital daily cash insurance plans Critical illness insurance plans Maternity insurance plans Surgical expense insurance plans 42 / 50 Which document is used by insurance companies to provide details about the product? Age Proof Proposal form Prospectus KYC document 43 / 50 When does a customer relation opportunity arise? Only during the sale of an insurance policy Only when a customer has a complaint At various touch points, such as understanding insurance needs and explaining coverage When a customer cancels their policy 44 / 50 When can customers evaluate and experience the insurance protection they buy? When they purchase the policy When they contact customer service When they have a loss and file a claim When they receive a premium refund 45 / 50 What role can the Insurance Ombudsman play in resolving complaints? The Ombudsman can only act as a mediator and counsellor if requested by the insurer The Ombudsman can only act as a mediator and counsellor if requested by the insured The Ombudsman can act as a mediator and counsellor within the terms of reference, by mutual agreement of the insured and the insurer The Ombudsman cannot act as a mediator or counsellor, but can only issue final decisions on complaints 46 / 50 What is the significance of the information provided by sales personnel in their reports? It is irrelevant to the company's decision-making process It forms a minor consideration for the company It is crucial and should be taken into account. It has no impact on the company's operations 47 / 50 What is the purpose of the waiting period and survival clause in the policy? To delay the payment of benefits To ensure policyholder's compliance with medical treatments To protect the insurer from immediate claims after policy inception To allow time for accurate diagnosis and assessment of the illness 48 / 50 What is the purpose of the policy stamp on the policy document? It indicates the date of commencement of the policy It serves as proof of payment for the insurance coverage It signifies the authenticity and validity of the policy It contains the signature of the policyholder 49 / 50 What is the purpose of a prospectus in the insurance industry? To collect premiums in advance To announce the availability of payment facilities To introduce insurance products to prospective buyers To regulate the issuance of insurance policies 50 / 50 What is the minimum and maximum tenure for individual health products offered by non-life and standalone health insurance companies? Minimum one year and maximum five years Minimum one year and maximum three years Minimum three years and maximum five years Minimum five years and maximum ten years Your score is LIC IC 38 1 / 50 What does life insurance provide protection against? Accidents only Theft only Risk events that can destroy or reduce the value of human life as an asset Natural disasters only 2 / 50 What are the purposes for which the above policies are granted? Business and holiday travels only Business travels only Holiday travels only Business, holiday, and study travels 3 / 50 What are measures to reduce the chance of occurrence of loss causing events known as? Loss reduction Loss minimisation Loss prevention Risk retention 4 / 50 How have advancements in medical science affected critical illnesses? They have made critical illnesses more common among the population They have reduced the severity and impact of critical illnesses They have increased the survival rates for major diseases They have eliminated the need for specialized insurance coverage 5 / 50 How can contingencies be addressed? By setting aside a large amount of liquid assets as a reserve By investing in high-risk assets By borrowing money from friends and family By relying on current income 6 / 50 According to the Insurance Act, 1938, how is "health insurance business" defined? Providing insurance coverage for medical professionals Offering contracts for travel and personal accident benefits Providing insurance coverage for sickness benefits and medical expenses Offering contracts for hospital expenses and out-patient treatments 7 / 50 Who is the "Designated Official" as per IRDAI regulations? An officer authorised by the Authority to conduct examinations for insurance agents An officer authorised by the Authority to maintain a centralised list of agents An officer authorised by the Insurer to make an appointment of an individual as an insurance agent An officer authorised by the Authority to dispose representations and appeals received from an appointed Insurance Agent. 8 / 50 Which of the following best describes insurable interest? Financial interest of the person in the asset to be insured The asset which is already insured Each insurers share of loss when more than one company covers the same loss The amount of the loss that can be recovered from the insurer 9 / 50 When might life insurers request special reports for insurance proposals? When the proposed sum assured is low When the proposed sum assured is high When the applicant is young When the applicant has a clean medical history 10 / 50 What type of expenses does the hospital daily cash policy cover? Actual cost of treatment Incidental expenses Out-of-pocket expenses for medications Emergency medical transportation expenses 11 / 50 What is the usual practice in life insurance regarding adverse factors? To apply discounts for positive health, habits, heredity or occupational factors To apply loadings for positive health, habits, heredity or occupational factors To apply discounts for adverse health, habits, heredity or occupational factors To apply loadings for adverse health, habits, heredity or occupational factors 12 / 50 What is the purpose of IGMS? To act as a central repository of insurance grievance data To provide a platform for insurers to register their grievances To monitor grievance redressal in the insurance industry To facilitate disposal of complaints of insurance agents 13 / 50 What is the potential consequence if life insurers were not selective in offering insurance? People with serious ailments would have difficulty obtaining insurance Insurers would experience increased anti-selection Insurers would have higher profits. People with serious ailments would seek to buy insurance . 14 / 50 What is the importance of high-quality service for insurance companies? It is not important It is important to some extent It is very important It is important only for big insurance companies 15 / 50 What is the declaration made by the proposer in the Proposal form? That the insurance company will accept the proposal That the proposer has read the policy terms and conditions That the recommended policy's details have been fully explained That the proposer has paid the premium 16 / 50 What is a possible consequence of having an occupation that falls under a hazardous category? Reduced premium rates Increased coverage limits Imposition of a flat extra Exemption from medical underwriting 17 / 50 What happens if a comprehensive motor policy lapses for more than 90 days? The accrued No Claim Bonus (NCB) benefit would be lost The policy remains valid with all continuity benefits The policyholder receives a penalty None of the above 18 / 50 What does cashless service mean in health insurance? The insured can receive treatment without making any payment to the hospita The insured can receive treatment up to the limit of cover without any payment to the hospital The insured can receive treatment without presenting a medical card. The insured is responsible for making payment to the hospital and later getting reimbursed by the insurer 19 / 50 What are the names of the two standard Health Insurance Policies introduced by IRDAI? Corona Kavach and Corona Rakshak COVID Shield and COVID Protect COVID Kavach and COVID Rakshak Corona Shield and Corona Protect 20 / 50 If the policyholder has bought a policy and does not want it, he/ she can return it during the _________ period, and get a refund. Free evaluation Free-look Cancellation Free trial 21 / 50 How does the sum insured vary in policies with a fixed plan basis? The sum insured remains the same for all sections of cover The sum insured is determined based on the individual's age The sum insured is determined based on the individual's occupation The sum insured varies for each section of cover as per the chosen plan 22 / 50 How are the initial costs of ULIP policies different from those of traditional policies? The initial costs are higher in ULIP policies The initial costs are lower in ULIP policies The initial costs are spread throughout the policy term in ULIP policies The initial costs are deducted from the initial premiums in ULIP policies 23 / 50 Why was Mira's claim denied by the insurance company? She contracted malaria within the waiting period She did not have a domiciliary hospitalization policy The insurance company had an excess clause of 30 days She did not submit the required documents for reimbursement 24 / 50 Who is required to undergo rigorous medical examinations? Policyholders under 45 years of age Policyholders over 45 years of age Policyholders under 30 years of age All policyholders 25 / 50 Which of the following statements regarding specific claim documents is correct? Accident claims may require a copy of the insurance policy. Case indoor papers are necessary for all types of claims Dialysis/ Chemotherapy/ Physiotherapy charts are not required for claim processing Hospital registration certificate is required to verify compliance with the definition of hospital 26 / 50 Which of the following statements about conditions in insurance policies is correct? Conditions are always waived in extreme cases of hardship A breach of condition results in immediate policy cancellation. Conditions are optional and can be overlooked by the insured Conditions are not mentioned in policy wordings 27 / 50 Which of the following activities is not categorized under professional settlement of claims? Seeking information relating to the cause of the loss Approaching the claim with a prejudice Ascertaining whether the loss was a result of an insured peril Quantifying the amount payable under the claim 28 / 50 When is the duty to disclose present in the context of an insurance contract? Until the policy is accepted and issued Throughout the policy term Only at the time of policy lapse 29 / 50 When does the recovery benefit get triggered? When the total hospitalization period is less than 10 days When the total hospitalization period is exactly 10 days When the total hospitalization period is more than 10 days When the total hospitalization period is 7 days 30 / 50 What should insured individuals do in the event of hospitalization? Proceed directly to any hospital of their choice. Inform the assistance company's call center and follow their instructions Submit the travel insurance policy to the nearest police station Contact the insurance company's claims department for guidance 31 / 50 What is the uncertainty associated with general insurance contracts? The amount of benefit to be paid in the event of death is fixed at the beginning of the contract. The concerned risk event is uncertain The probability of happening of the event increases with time. General insurance policies are contracts of assurance 32 / 50 What is the responsibility of the insurer upon receiving the award from the Ombudsman? The insurer has to inform the Ombudsman that they will not comply with the award The insurer has to comply with the award and inform the Ombudsman about the same within 30 days The insurer can challenge the award passed by the Ombudsman in the court of law The insurer can delay the compliance of the award until the insured files a legal case 33 / 50 What is the requirement for crossing the deductible in a top-up plan? The deductible must be crossed for each hospitalization event The deductible must be crossed for the total claims in one year The deductible must be crossed for a series of hospitalizations during the policy period The deductible does not need to be crossed in a top-up plan 34 / 50 What is the purpose of collecting KYC documents by insurers? To determine the True identity of their customers To determine the risk profile of the insured To verify the proof of age To provide details about the insurance product 35 / 50 What is the payment procedure for insured individuals receiving treatment in hospitals? The insured individual pays for the treatment upfront and later seeks reimbursement from the insurance company The hospital directly bills the insurance company for the treatment expenses. The insured individual undergoes treatment in the hospital on a cashless basis, without any upfront payment. The insured individual pays a portion of the treatment expenses, and the remaining amount is covered by the insurance company 36 / 50 What is the next step an agent can take after informing the customer about the free-look period provision? Ask the customer for the names and particulars of other individuals who can possibly benefit from the agents services Help the customer to open an e-Insurance Account (e-I-A) Explain the various policy provisions and policyholders rights and privileges Ask the client to contact other individuals and introduce the agent to them 37 / 50 What is the impact of unethical behavior in business? It leads to increased profitability It improves corporate governance It causes betrayal of trust It promotes accountability 38 / 50 What is the 'Customer Journey'? The process of acquiring new customers The experience a customer goes through from initial contact to claim settlement The journey taken by the insurance agent to reach out to new customers The journey taken by the customer to research and compare insurance policies 39 / 50 What is one of the traditional coverages provided under travel insurance? Loss of property due to natural disasters Medical expenses for pre-existing conditions Compensation for flight delays or cancellations Hijack cover 40 / 50 What is Mutuality? A type of insurance A concept to reduce risk in financial markets A type of liability A type of asset 41 / 50 What is a grace period in insurance? The period of time following the premium due date during which a payment can be made to renew or continue a policy without loss of continuity benefits The period of time during which an insurer can assume risk The period of time after which a policy cannot be renewed The period of time during which claims will not be considered 42 / 50 What gives insurance contracts their power and uniqueness? Spreading funds out among various assets Combining the funds of various individuals Risk avoidance The Principle of Mutuality 43 / 50 What factors can influence the variation in compensation for critical illnesses? Age of the policyholder Severity of the illness Policy terms and conditions All of the above 44 / 50 What does a Personal Accident (PA) Cover provide compensation for? Illness and hospitalization expenses Death and disability due to unforeseen accidents Loss of personal belongings Legal expenses and liabilities 45 / 50 What are the main categories of consumer disputes with the three commissions relating to insurance business? Amount or Quantum of loss Non-settlement of claims Repudiation of claims All of the above 46 / 50 What are consumer disputes redressal agencies? Agencies that handle disputes related to consumer goods only Agencies that handle disputes related to insurance only Agencies established at each district, state and national level to handle consumer disputes None of the above 47 / 50 What additional tests may be required by life insurers to assess the health of the proposed insured? Blood pressure measurement and cholesterol screening MRI and CT scan ECG, EEG, X-Ray of the chest, and Blood Sugar test Urine analysis and liver function test 48 / 50 How should the transfer of title be documented in an assignment? It should be mentioned in the policy application form. It should be communicated verbally to the insurer It should be specifically set forth in the form of an endorsement on the policy or a separate instrument It should be registered with the insurance regulatory authority 49 / 50 How does the per day cash coverage amount vary in the hospital daily cash policy? It remains the same for all policyholders It is based on the insured person's income level It varies depending on the duration of hospitalization It could range from Rs. 1,500 to Rs. 5,000 or more per day 50 / 50 How does the hospital daily cash policy overcome medical inflation? It provides coverage for all medical procedures and treatments It offers higher sum insured limits to cover rising medical costs It pays a fixed sum per day for the duration of hospitalization It provides coverage for outpatient expenses as well Your score is LIC IC 38 1 / 50 Based on whose opinion are decisions such as acceptance, exclusion, etc. made? The insured person's opinion The company's panel doctor's opinion The insurance agent's opinion The insured person's family member's opinion 2 / 50 Who would have to pay for the existing illnesses of some others if pre-existing diseases were covered under insurance? Insured individuals with pre-existing diseases. Healthy individuals who do not have pre-existing diseases Both insured individuals and healthy individuals The government 3 / 50 Which specific type of delivery is typically included in the maternity cover? Normal delivery only C-section delivery only Both normal and C-section deliveries Complicated deliveries requiring specialized medical care 4 / 50 Which of the following expenses are typically included in outpatient coverage? Doctor visits Regular medical tests Dental treatments Surgical procedures 5 / 50 When would a life insurance underwriter decide to decline or reject a proposal for insurance? When there are certain health or other factors that significantly increase the risk When the applicant has a high income and can afford a higher premium When the underwriter is unable to assess the degree of risk accurately. When the applicant requests additional coverage beyond the standard policy. 6 / 50 What types of healthcare services are provided by the private health sector in India? Only primary healthcare services Only secondary healthcare services All three types of healthcare services - primary, secondary, and tertiary Only tertiary healthcare services 7 / 50 What kind of information is the proposer expected to disclose in the declaration? All information related to the insurance agent All information related to the proposer's family All information related to the proposer's occupation All information relevant to the application for insurance 8 / 50 What is the purpose of providing identity proof in the health insurance claim process? To determine the age of the insured person. To verify the nationality of the insured person. To establish the relationship between the insured person and the policyholder. To confirm the identity of the insured person and ensure they are the same person being treated 9 / 50 What is the Principle of Risk Pooling? Spreading funds out among various assets Combining the funds of various individuals Avoiding risk-taking activities Transferring risks to an insurance company 10 / 50 What is the legal principle that such declaration converts to a contractual duty? Principle of Uberrimae fidei Principle of non-disclosure Principle of indemnity Principle of subrogation 11 / 50 What is the difference between individual coverage and family floater coverage? Individual coverage is for a single person, while family floater coverage is for the entire family. Individual coverage has a separate sum insured for each person, while family floater coverage has a single sum insured for the entire family Individual coverage has more restrictions on the dependents who can be covered, while family floater coverage has no such restrictions. All of the above 12 / 50 What is subrogation in insurance? The transfer of all rights and remedies with respect to the subject matter of insurance, from the insurer to the insured The transfer of all rights and remedies with respect to the subject matter of insurance, from the insured to the third party The transfer of all rights and remedies with respect to the subject matter of insurance, from the third party to the insured The transfer of all rights and remedies with respect to the subject matter of insurance, from the insured to the insurer 13 / 50 What is an insurance contract? A legal agreement between two parties for the exchange of goods and services An agreement between parties for sharing risks A promise made by an insurer to provide financial protection for a price None of the above 14 / 50 What happens to the bonus and additional benefits accrued in participating products upon the death of the policyholder? They are not payable as part of the death benefit They are payable as part of the death benefit, if not paid earlier They are payable only if the policyholder survives the term of the policy They are not accrued in participating products 15 / 50 What does the chapter explain about health insurance products? The importance of health insurance in India The pricing and premium rates of health insurance The process of filing health insurance claims The features of various health products for individuals, family, and group 16 / 50 What are the three phases involved in retirement planning? Income, Expenses, and Budget Accumulation, Conservation, and Distribution Investment, Savings, and Expenditure Risk, Return, and Liquidity 17 / 50 In what circumstances may the insurer reinstate the policy without any evidence of insurability? If the grace period has expired If the policyholder provides a simple statement certifying good health If the policy has been in a lapsed state for a very short period of time If the sum assured or face amount of the policy is large 18 / 50 How is the currency conversion rate applied when processing reimbursement claims? The currency conversion rate is applied as on the date of claim submission The currency conversion rate is applied as on the date of loss to determine the liability in INR The currency conversion rate is fixed and does not change regardless of the date of loss The currency conversion rate is determined by the insured individual 19 / 50 How do insurers charge interest on policy loans? Interest is waived for policy loans Interest is payable only if the loan is not repaid on time Interest is charged semi-annually or annually Interest is calculated based on the policy's sum assured 20 / 50 Are there any alternative options for determining the sum insured in PA policies? No, the sum insured is always based on the gross monthly income Yes, the sum insured can be determined based on the individual's age Yes, the sum insured can be determined based on the individual's occupation Yes, the sum insured can be determined based on a fixed plan basis 21 / 50 Who scrutinizes the form completed by the consulting physician? The insured person's employer The company's panel doctor The insured person's family physician The insurance agent 22 / 50 Which risk group does a person working in underground mines belong to? Risk group I Risk group II Risk group III Risk group IV 23 / 50 Which of the following documents is involved at the proposal stage of insurance? Claim form Renewal notice Endorsement form Proposal form 24 / 50 When was the first standardized health insurance product, Mediclaim, launched in the Indian market? 1947 1954 1986 2001 25 / 50 What type of products were introduced later by some companies? Life insurance policies Travel insurance policies Indemnity-based products Investment-based products 26 / 50 What is the role of an Umpire in arbitration? To state the case for each party To make the final decision in the dispute To preside over the meetings between the two arbitrators To examine the witnesses in the dispute 27 / 50 What is the purpose of maternity cover in a group policy? To provide coverage for expenses related to child delivery To offer additional benefits for families in the group To reduce the overall sum insured of the policy To restrict coverage for certain medical procedures 28 / 50 What is the primary purpose of Overseas Travel insurance? To provide coverage for lost baggage during international travel To compensate for flight delays and cancellations To cover expenses of accidental injury or hospitalization while traveling outside India To offer assistance with visa and immigration processes 29 / 50 What is the Integrated Grievance Management System (IGMS)? A system for registering insurance policies An online complaints registration system for policyholders A central repository of insurance data for IRDAI A system for tracking complaints of insurance agents 30 / 50 What is the difference between a rate and a premium? Rates are determined by the insurer while premiums are determined by the insured Rates are the same as premiums Premiums are the price of a given unit of insurance while rates are the calculation of future insurance claims and expenses None of the above 31 / 50 What is risk retention? Transferring the risks to an insurance company Deciding to bear the risk and its effects by oneself Taking steps to lower the chance of occurrence of a loss Avoiding activities or situations that pose a risk 32 / 50 What is active listening? Interrupting the speaker with counter-arguments Allowing the speaker to finish each point before asking questions Ignoring the speaker and preparing a rebuttal Engaging in external distractions 33 / 50 What happens if the principles relevant to underwriting in health insurance are violated? The insurer decides to avoid the liability The insurer increases the premium The policyholder loses coverage The policyholder can request a refund 34 / 50 What does risk reduction involve? Avoiding risky activities Transferring risks to an insurance company Making environmental changes Bearing the risk and its effects by oneself 35 / 50 What are renewal premium receipts (RPR) used for? They serve as evidence of policy commencement They provide information about the policyholder's address and contact details They act as proof of payment for subsequent premium payments They indicate the sum assured for the life insurance policy 36 / 50 In Scenario 1, why did the insurance company reject the claim? The damage was due to normal wear and tear, which was excluded from the policy The damage was due to an excluded peril in the policy The car was too old to be insured None of the above 37 / 50 How is a product defined in popular terms? A service that is offered in the market A commodity or good that is brought and sold in the market An intangible item that can be owned A business process used to create value for customers 38 / 50 How can one ensure that the rates are not unfairly discriminatory? By considering all relevant rating factors By charging higher rates for higher quality risks By charging lower rates for lower quality risks By only insuring risks of similar type and quality 39 / 50 Are ambulance charges typically covered under personal accident insurance? No, ambulance charges are not covered by personal accident insurance Yes, they are covered up to a fixed limit Only if the accident occurs outside of a certain radius from the insured's residence Ambulance charges are covered based on the actual expenses incurred 40 / 50 Who may service a health insurance claim? Insurance company Third Party Administrator (TPA) Hospital Regulator 41 / 50 hich organization follows the definition of health insurance business ? World Health Organization (WHO) International Association of Insurance Supervisors (IAIS) Insurance Regulatory and Development Authority of India (IRDAI) Insurance Information Institute (III) 42 / 50 When there is a delay in processing a claim for reasons other than those specified, what does the life insurance company do? Rejects the claim and offers no compensation Pays the claim amount without any additional compensation Pays interest on the claim amount at a rate 2% above the bank rate prevalent at the beginning of the financial year Extends the claim processing timeline without any compensation 43 / 50 What type of payment do benefit-based products provide? Monthly installments Lump sum payment Reimbursement of medical expenses Cashless treatment facility 44 / 50 What is typically required for persons above the age of 45-50 years enrolling for health insurance? Submission of a detailed medical history Completion of a physical fitness test Pathological investigations to assess health risk profile Participation in a health and wellness program 45 / 50 What is the role of a Third Party Administrator (TPA) in the health insurance business? Selling health insurance policies to individuals Providing medical services directly to policyholders Servicing of claims under health insurance policies, facilitating pre-insurance medical examinations, and more Act as an intermediary between insurance brokers and insurance companies 46 / 50 What is the primary concern addressed by a critical illness policy? The need for routine medical check-ups and preventive care The availability of advanced medical treatments for major diseases The financial burden associated with surviving a critical illness The risk of developing chronic diseases in the future 47 / 50 What is the importance of understanding objections raised by customers during a sale? To identify and resolve underlying concerns To ignore the objections and move on to the next customer To argue with the customer and convince them to buy the product To make assumptions about the customer's needs 48 / 50 What is the definition of Permanent Partial Disability (PPD) in the policy? Becoming partially disabled for a temporary period of time Becoming totally disabled for a temporary period of time Becoming totally disabled for lifetime Becoming partially disabled for lifetime 49 / 50 What is pure premium? Premium sufficiently big enough to pay for losses only Premium applicable to marginal members of the society Premium after loading for administrative costs Premium derived from the most recent loss experience period 50 / 50 What happens if the medical costs are less than the chosen deductible level in a top-up policy? The insured receives full reimbursement for the medical expenses The insured receives partial reimbursement for the medical expenses The insured is not eligible to receive any claim under the policy The insured must pay the entire medical expenses out of pocket. Your score is LIC IC 38 1 / 50 Which of the following documents is involved at the proposal stage of insurance? Claim form Renewal notice Endorsement form Proposal form 2 / 50 Which risk group does a builder belong to? Risk group I Risk group II Risk group III Risk group IV 3 / 50 Who scrutinizes the form completed by the consulting physician? The insured person's employer The company's panel doctor The insured person's family physician The insurance agent 4 / 50 Are the consultation charges of the medical practitioner covered under "Other Expenses" related to the treatment of COVID? Yes, they are fully covered Yes, but only partially covered No, they are not covered It depends on the policy terms and conditions. 5 / 50 How do hospitals typically verify the validity of a policy and coverage during hospitalization? Contact the insured individual directly for policy verification Check the validity of the policy with the insurance company's claims department. Contact the assistance companies/ insurers on the provided call centre numbers. Verify the policy and coverage through an online portal 6 / 50 How is the coverage for babies usually restricted in relation to the maternity cover? It is not covered under the maternity cover It is limited to a specific duration after childbirth It is restricted to a certain monetary limit within the maternity cover It is provided as a separate coverage with its own sum insured 7 / 50 In the judgment method of underwriting, what may underwriters seek in complex cases? Extra mortality rating (EMR) Expert opinion of a medical doctor or medical referee Approval from the underwriting department Historical data of similar cases 8 / 50 What are some examples of frauds committed in health insurance? Impersonation, the person insured is different from the person treated Fabrication of documents to make a claim where there is no hospitalization Inflation of expenses, either with the help of the hospital or by addition of external bills fraudulently created All of the above 9 / 50 What does the accumulation phase of retirement planning involve? Withdrawing funds from investment accounts Setting aside money for investment purposes Maximizing the principal during the individual's working years Converting the corpus or principal into annuity payments 10 / 50 What happens to individuals who are categorized as declined lives in risk classification? They are charged a higher premium They are subjected to certain restrictions They cannot be provided insurance coverage at an affordable cost They are temporarily declined due to recent medical events 11 / 50 What is an insurance contract? A legal agreement between two parties for the exchange of goods and services An agreement between parties for sharing risks A promise made by an insurer to provide financial protection for a price None of the above 12 / 50 What is subrogation in insurance? The transfer of all rights and remedies with respect to the subject matter of insurance, from the insurer to the insured The transfer of all rights and remedies with respect to the subject matter of insurance, from the insured to the third party The transfer of all rights and remedies with respect to the subject matter of insurance, from the third party to the insured The transfer of all rights and remedies with respect to the subject matter of insurance, from the insured to the insurer 13 / 50 What is the difference between customers and clients in the insurance industry? Customers buy a product, while clients are people with whom an agent relates for life Customers are always looking for the cheapest insurance, while clients are more concerned with quality Customers are not important, while clients are very important Customers always renew their policies, while clients do not 14 / 50 What is the legal principle that such declaration converts to a contractual duty? Principle of Uberrimae fidei Principle of non-disclosure Principle of indemnity Principle of subrogation 15 / 50 What is the Principle of Risk Pooling? Spreading funds out among various assets Combining the funds of various individuals Avoiding risk-taking activities Transferring risks to an insurance company 16 / 50 What is the purpose of providing a discount on premium in group policies? To encourage more individuals to join the group To compensate for the administrative costs of the policy To reward the group for maintaining a good claims experience To attract competition among insurance providers 17 / 50 What is the role of insurance in managing risk? It is a tool for transferring risk It is a risk management technique It helps to minimize risk It is not related to risk management 18 / 50 What types of healthcare services are provided by the private health sector in India? Only primary healthcare services Only secondary healthcare services All three types of healthcare services - primary, secondary, and tertiary Only tertiary healthcare services 19 / 50 When were Unit Linked Plans first introduced and where? In India during the 1960s In the UK during the 1960s In the US during the 1960s In Japan during the 1960s 20 / 50 Which of the following expenses are NOT covered under the Hospitalization Expenses for Covid-19 treatment? Diagnostic expenses Medication expenses Outpatient consultation fees Hospitalization expenses for less than 24 hours 21 / 50 Which soft skill is the most important for effective performance in the workplace? Technical skills Management skills Communication skills Analytical skills 22 / 50 Who was Hippocrates and what did he propose? He was a Greek philosopher who emphasized the importance of diet for good health He was a Roman emperor who introduced public sanitation measures He was a Greek physician who explained that illness is caused by environmental, sanitation, hygiene, and dietary factors He was an Indian sage who developed traditional healing practices 23 / 50 Based on whose opinion are decisions such as acceptance, exclusion, etc. made? The insured person's opinion The company's panel doctor's opinion The insurance agent's opinion The insured person's family member's opinion 24 / 50 How do life insurance underwriters consider moral hazard? They assess the likelihood of a client's behavior changing after purchasing a policy They evaluate the external factors that could increase the chance of a loss They analyze the financial profitability of life insurance policies They determine the suitability of a client for life insurance based on their occupation 25 / 50 How is the Guaranteed Surrender Value (GSV) determined? It is a fixed percentage of the policy's sum assured It is a fixed percentage of the premiums paid It is calculated based on the policyholder's age and health condition It is determined by the market value of the policy 26 / 50 In what way do insurers and financial institutions use life insurance policies as security? They sell the policies to other parties for a profit They assign the policies to third-party investors They advance loans against the surrender value of the policies They use the policies as collateral for their own financial transactions. 27 / 50 What are some indicators of the healthcare needs in an area? Environmental factors and general nutritional status of the people Availability of specialized healthcare providers Socio-economic factors and affordability Incidence of specific diseases in the population 28 / 50 What are the two forms of Critical Illness (CI) cover offered by life insurers? Comprehensive CI cover and basic CI cover Accelerated CI benefit plan and standalone CI benefit plan Group CI cover and individual CI cover Term life insurance and whole life insurance 29 / 50 What does the Grace Period provision allow for? Continuation of a policy that would have lapsed due to non-payment of premium Extension of the policy term for an additional period. Waiver of premium payment during the grace period Changes in the coverage and benefits of the policy during the grace period 30 / 50 What happens when an illness is permanently excluded from the policy? It is mentioned in the underwriting report. It is communicated to the insured separately. It is endorsed on the policy certificate and becomes an additional exclusion apart from the standard policy exclusion It is subject to review after a specific period of time 31 / 50 What is arbitration and how is it different from litigation? Arbitration is a process of settling disputes through court of law Arbitration is a process of settling disputes in a less costly and informal manner than litigation Arbitration is a process of submitting disputes to an insurance company Arbitration is a process of settling disputes through negotiation 32 / 50 What is the accumulation motive with respect to investing? It is an individuals desire to invest in highly risky markets. It is an individuals desire to invest for accumulating wealth and taking advantage of favorable market opportunities It is an individuals desire to invest to create a safety net for future contingencies It is an individuals desire to invest in order to avoid losses in the future 33 / 50 What is the difference between Participating and Non-participating insurance products? Participating policies do not pay any bonuses to the policyholders, while non-participating policies do Participating policies offer a share in the surpluses (bonuses) generated by the insurer, while non-participating policies have fixed and guaranteed benefits. Participating policies only invest in regulatory norms, while non-participating policies have more freedom in investments Participating policies are more expensive than non-participating policies 34 / 50 What is the main difference between the Individual Plan and the Family Floater Plan under Arogya Sanjeevani Insurance Policy? The Individual Plan offers coverage for pre-existing conditions, while the Family Floater Plan does not. The Individual Plan has a higher premium rate compared to the Family Floater Plan. The Individual Plan covers only the policyholder, while the Family Floater Plan covers multiple family members The Individual Plan has a higher room rent and ICU charges capping compared to the Family Floater Plan 35 / 50 What is the process of calculating the price to cover future insurance claims and expenses called? Premium calculation Underwriting Ratemaking Risk assessment 36 / 50 What is the purpose of Section 45 (Indisputability Clause) of the Insurance Act? To establish a time limit for policy cancellation To protect the insurer from fraudulent claims To allow the insurer to reject claims without valid reasons To offer protection against claim rejection on flimsy grounds and set a time limit of 3 years for calling a policy into question 37 / 50 What is the role of nominees in relation to the policy's death claim amount? They become the new policyholders and can make changes to the policy They hold the money as trustees on behalf of those entitled to it They receive the full amount of the death claim for their personal use They are responsible for repaying any outstanding loans or interest on the policy 38 / 50 What options may the insurer consider when evaluating the evidence of continued insurability during policy revival? Revive the policy as per existing terms and premium only Offer revival with increased premium or reduced risk cover or both Terminate the policy without revival Offer revival with reduced premium or increased risk cover or both 39 / 50 What was the previous practice regarding the cost of medical examination? Insurer reimbursed the full cost Prospective clients had to bear the cost Insurance agent paid for the examination IRDAI covered the expenses 40 / 50 Which additional cover provides coverage for maternity expenses? Critical illness cover Reinstatement of sum insured Maternity cover Coverage for AYUSH 41 / 50 Which of the following is an example of a package policy in health insurance? Life insurance policy combined with property insurance Critical illness cover combined with indemnity policy Critical illness cover combined with travel insurance Indemnity policy combined with motor insurance 42 / 50 Which type of COVID-19 product is mandatory for general and health insurers to provide? Benefit-based product Indemnity-based product Combination of benefit-based and indemnity-based products Travel insurance product 43 / 50 Why are losses arising out of normal wear and tear not covered in insurance? Because it is not a natural process Because the asset has a finite lifetime Because it yields benefits Because it is covered in insurance 44 / 50 Can individuals who previously exited the scheme re-join in the future? No, re-joining is not allowed once an individual exits the scheme Yes, with a reduced sum insured Yes, with a higher annual premium Yes, through the specified enrolment modality 45 / 50 How does a critical illness policy differ from a regular health insurance policy? It covers all types of illnesses, while a regular policy only covers critical illnesses It reimburses all medical expenses, while a regular policy pays a fixed amount It provides coverage for routine medical check-ups, while a regular policy does not It pays a lump sum amount upon diagnosis of critical illnesses, while a regular policy covers ongoing treatment costs 46 / 50 How is the present value of liabilities determined in life insurance? By subtracting future premiums from future payments By applying a suitable rate of discount to future payments By dividing future payments by the interest rate By adding future payments and future premiums 47 / 50 In which types of insurance is insurable interest required only at the time of loss? Fire and accident insurance Marine policies Health and personal accident insurance Both a and b 48 / 50 What are some short-term goals in an individual's life cycle? Buying a house or a vacation abroad Education or marriage of ones child or post-retirement provision Buying an LCD TV set or a family vacation 49 / 50 What are the two types of plans available under Arogya Sanjeevani Insurance Policy? Individual Plan and Group Plan Basic Plan and Enhanced Plan Single Plan and Joint Plan Individual Plan and Family Floater Plan 50 / 50 What does the insured person confirm by signing the declaration? That they have read the form thoroughly That they have disclosed all their financial assets That they are in good physical and mental health That they have read the prospectus and accept the terms and conditions Your score is LIC IC 38 1 / 50 What is excluded from coverage under Personal Accident insurance? Accidents resulting from mental disorders or sickness Accidents caused by injuries sustained while playing recreational sports Accidents resulting from work-related injuries Accidents caused by slips and falls in public places 2 / 50 What information is included in the proposal form regarding insurance history? Monthly income and expenses Details of the proposer's occupation Past insurance and claims history with any other insurer Names of family members 3 / 50 What does the specific gravity of urine indicate? The pH level of the urine The concentration of salts in the urinary system The presence of toxins or impurities in the urine The overall volume of urine produced 4 / 50 What authorization does the proposer provide to the company regarding sharing information? Sharing information with any individual or organization Sharing information only with the proposer's family members Sharing information with any Governmental and/or Regulatory Authority Sharing information with competitors for market research purposes 5 / 50 What are the barriers to effective communication? Only physical barriers Only emotional barriers Different kinds of barriers that can arise at each step in the communication process No barriers at all 6 / 50 Is it possible to claim the full sum insured from multiple PA policies? No, the sum insured can only be claimed from one policy Yes, the full sum insured can be claimed from all policies Yes, but the total claim amount cannot exceed the sum insured of one policy No, the claim amount will be divided equally among all policies 7 / 50 How long are these plans generally renewable for? 5 years 10 years 20 years Lifelong 8 / 50 How does a Money Back policy work? The full sum assured is paid at the end of the term The premiums are returned to the insured at the end of the term The sum assured is paid in instalments during the term, with a balance sum assured at the end The sum assured is paid only if the insured dies during the term 9 / 50 Can the list of exclusions in Personal Accident insurance vary between insurance companies? No, the list of exclusions is standardized across all insurance companies Yes, the list of exclusions can vary from company to company The exclusions only apply to group policies, not individual policies The exclusions are applicable only to family policies, not individual or group policies 10 / 50 Why do insurers charge lower premiums when the insured voluntarily opts for higher deductibles? Insurers prefer to spend time processing small claims Insurers do not want to get exposed to financial stress caused by accumulation of a large number of small losses at one location The insured is taking on more financial responsibility for the claim Both A and B 11 / 50 Who among the following is not a stakeholder in the health insurance claim process? Customers Police Department Regulator TPA 12 / 50 Which of the following is not a characteristic of effective healthcare? Appropriate to the needs of the people Comprehensive Expensive Easily available 13 / 50 Which approach is more practical and relevant than risk avoidance? Risk retention Risk reduction and control Risk transfer Risk avoidance 14 / 50 When are alterations to policy terms and conditions generally permitted? Alterations are permitted at any time during the policy term Alterations are only permitted during the first year of the policy. Alterations are permitted after the first year of the policy . Alterations are only permitted if the policyholder pays an additional fee. 15 / 50 What principle ensures that the insured is compensated to the extent of his loss on the occurrence of the contingent event? Proximate Cause Contribution Subrogation Indemnity 16 / 50 What is the Sales Process and what is its significance? A process that is both an art and science. A process that is only science. A process that is only an art. A process that is neither an art nor science 17 / 50 What is the purpose of the Agent's declaration in the Proposal form? To inform the proposer about the recommended policy To acknowledge that the proposer has filled out the form To explain the reasons for the Agent's recommendation To comply with IRDAI regulations 18 / 50 What is the Proposal Form in insurance? The document used for making a proposal The legal contract between the insurer and policyholder The confidential information collected during policy issuance The material change that needs to be disclosed during the period of insurance 19 / 50 What is the mathematical principle that makes insurance possible? Law of large numbers Risk pooling Homogeneous units Economic feasibility 20 / 50 What is the duty of an Agent regarding assisting and advising their customers/policyholders? To not assist or advise on any policy servicing matters To assist and advise only on claims settlement related procedures 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 To assist and advise only on obtaining requisite documents at the time of filing the proposal form with the insurer 21 / 50 What is the age threshold at which individuals often face difficulties in obtaining coverage? 50 years 60 years 70 years 80 years 22 / 50 What is Customer Lifetime Value? The economic benefits that can be derived from building a sound relationship with a customer over a long period of time The total number of customers an agent has in their network The amount of money an agent earns per customer per year The total amount of money earned from commissions on new business 23 / 50 What information does the proposer need to provide regarding previous insurers? The premium amounts paid The types of coverage provided The names of the insurers The policy numbers 24 / 50 What does the insured person confirm by signing the declaration? That they have read the form thoroughly That they have disclosed all their financial assets That they are in good physical and mental health That they have read the prospectus and accept the terms and conditions 25 / 50 What are the two types of plans available under Arogya Sanjeevani Insurance Policy? Individual Plan and Group Plan Basic Plan and Enhanced Plan Single Plan and Joint Plan Individual Plan and Family Floater Plan 26 / 50 What are some tips for appearing confident and self-assured? Hiding behind a smile Slouching Avoiding eye contact Standing tall with shoulders held back and solid eye contact with a "smiling" face 27 / 50 In which types of insurance is insurable interest required only at the time of loss? Health and personal accident insurance Both a and b Fire and accident insurance Marine policies 28 / 50 How is the pure premium calculated? By adding percentages for expenses, reserves, and profits By calculating the average loss percentage per vehicle By collecting data on past losses for a period of time By expressing the amount of loss as a percentage of the total value of vehicles 29 / 50 How does a critical illness policy differ from a regular health insurance policy? It covers all types of illnesses, while a regular policy only covers critical illnesses It reimburses all medical expenses, while a regular policy pays a fixed amount It provides coverage for routine medical check-ups, while a regular policy does not It pays a lump sum amount upon diagnosis of critical illnesses, while a regular policy covers ongoing treatment costs 30 / 50 Can most lapsed life insurance policies be reinstated? No, once lapsed, policies cannot be reinstated Yes, policies can be reinstated without any conditions Yes, most lapsed policies can be reinstated Only specific types of policies can be reinstated 31 / 50 Why are losses arising out of normal wear and tear not covered in insurance? Because it is not a natural process Because the asset has a finite lifetime Because it yields benefits Because it is covered in insurance 32 / 50 Which type of COVID-19 product is mandatory for general and health insurers to provide? Benefit-based product Indemnity-based product Combination of benefit-based and indemnity-based products Travel insurance product 33 / 50 Which of the following is an example of a package policy in health insurance? Critical illness cover combined with travel insurance Indemnity policy combined with motor insurance Life insurance policy combined with property insurance Critical illness cover combined with indemnity policy 34 / 50 Which additional cover provides limited coverage for outpatient expenses? Hospital cash Recovery benefit Outpatient cover Donor's expenses 35 / 50 What was the reason behind allowing insurers to collect health insurance premiums in instalments? To ease the burden of premium payment during the COVID-19 outbreak To encourage policyholders to switch to other insurance companies To increase the overall premium amount collected by insurers To restrict access to health insurance products for certain policyholders 36 / 50 What other important information does a prospectus include? The name of the agent who sold the policy The amount of commission payable to the agent The terms and conditions of cancellation of the policy The possibility of any revision or modification of the terms of the policy including the premium 37 / 50 What is the role of primary underwriting in the underwriting process? Gathering information and assessing the insurability of applicants Determining the premium rates for insurance coverage Issuing insurance policies to qualified applicants Processing claims for insurance benefits 38 / 50 What is the purpose of Section 45 of the Insurance Act, 1938? To impose a penalty on insurance companies for policy cancellation To establish grounds for questioning a life insurance policy To protect the policyholder by limiting the time period in which a policy can be called into question To define the terms and conditions of a life insurance policy 39 / 50 What is the process of calculating the price to cover future insurance claims and expenses called? Premium calculation Underwriting Ratemaking Risk assessment 40 / 50 What is the main factor considered in underwriting Personal Accident Policies? The age of the insured The occupation of the insured The duration of the policy The geographical location of the insured 41 / 50 What is the difference between participating and non-participating life insurance policies, according to IRDAI guidelines? The minimum sum assured for death benefits The way the return on policies is disclosed Whether or not they are linked to an index or benchmark The types of additional benefits that are accrued at regular intervals 42 / 50 What is the advantage of a non-medical underwriting policy? Lower premiums compared to traditional policies Longer waiting periods for coverage Quick coverage without extensive medical examinations Higher sum assured for the policy 43 / 50 What is arbitration? A method of settling disputes arising out of contracts A legal procedure involving considerable delay and expense A formal court hearing for commercial insurance policies A method of settling disputes through litigation 44 / 50 What has been made compulsory by IRDAI for all policies? Annual renewal Contract extension Lifetime coverage Premium adjustment 45 / 50 What does the Grace Period provision in a life insurance contract enable? It allows the policyholder to extend the policy term without paying additional premiums It grants the policyholder an additional period of time to pay the premium after it has become due It provides a grace period for submitting claims for policy benefits It allows the policy to continue in force even if the insured dies during the grace period. 46 / 50 What are the two forms of Critical Illness (CI) cover offered by life insurers? Comprehensive CI cover and basic CI cover Accelerated CI benefit plan and standalone CI benefit plan Group CI cover and individual CI cover Term life insurance and whole life insurance 47 / 50 What are some occupations or activities that belong to risk group III? Persons engaged in racing on wheels (e.g., race car drivers) and similar hazardous occupations/activities Doctors, Lawyers, Architects Accountants, Engineers, Builders Teachers, Librarians, Social workers 48 / 50 In what way do insurers and financial institutions use life insurance policies as security? They sell the policies to other parties for a profit They assign the policies to third-party investors They advance loans against the surrender value of the policies They use the policies as collateral for their own financial transactions 49 / 50 How is the HLV concept calculated using a simple thumb rule? By taking into account inflation, wage rise, and future earning capacity By determining the amount that would generate the annual income the family would need by way of interest By dividing the total amount of money a person has saved over their lifetime by the number of years they are expected to live By multiplying the annual income of the breadwinner by the prevailing rate of interest 50 / 50 How do life insurers handle cases with adverse family history? Reject the proposal outright Impose additional financial requirements Call for other reports and may impose an extra mortality rating Increase the coverage amount for such individuals Your score is LIC IC 38 1 / 50 What are the five major indicators of service quality? Customer lifetime value, body language, reliability, responsiveness, empathy Customer satisfaction, reliability, empathy, tangibles, ethical behavior Reliability, responsiveness, assurance, empathy, tangibles Customer satisfaction, assurance, ethical behavior, body language, empathy 2 / 50 What are the elements of a valid contract? Offer and acceptance Consideration Agreement between the parties All of the above 3 / 50 What additional benefit is included in disease-specific covers? Cashless hospitalization for any medical condition Coverage for pre-existing diseases related to the specific disease A wellness benefit that covers regular health check-ups Access to specialized treatment centers for the specific disease 4 / 50 Under what circumstances may an insurer reinstate a policy without requiring evidence of insurability? If the policy has been in a lapsed state for a very short period of time If the policy has been in a lapsed state for more than a year If the policyholder provides a medical examination report If the sum assured or face amount of the policy is large 5 / 50 How many qualified practitioners in other systems of Medicine are there in India? Over 1 lakh practitioners Over 5 lakh practitioners Over 7 lakh practitioners Over 10 lakh practitioners 6 / 50 How does the health of a population impact a country's social and economic progress? There is no correlation between the health of a population and a country's progress Healthier individuals contribute to a stronger economy Poor health leads to social inequality and economic decline A country's social and economic progress depends on the health of its people 7 / 50 How does long-term heavy drinking affect an individual's health? Enhances liver functioning Improves mental clarity Impairs liver functioning Boosts the immune system 8 / 50 How are premiums calculated for individual insured persons under a family floater policy? Premiums are charged based on the age and sum insured chosen for each individual insured. Premiums are charged based on the age of the oldest member of the family proposed for insurance. Premiums are charged at a fixed rate for all individuals covered under the family floater policy. Premiums are not applicable for individual insured persons under a family floater policy. 9 / 50 How are dividends distributed in the "Contribution" method? They are paid in cash They are used to purchase additional coverage They are accumulated as a credit to the policyholder's account They are adjusted in future premium payments 10 / 50 Why is insurance needed? To increase the primary burden of risk To increase the secondary burden of risk To reduce the primary and secondary burden of risk To transfer the risk from insurer to insured 11 / 50 Who can enter into an insurance contract according to the paragraph? Only minors Only adults who are not of sound mind Only individuals who are disqualified under law Both parties must be legally competent 12 / 50 Who are these plans primarily designed to offer cover to? Young adults Middle-aged individuals Elderly people Children 13 / 50 Which of the following is NOT mentioned as a type of fixed benefit insurance plan? Maternity insurance plans Surgical expense insurance plans Hospital daily cash insurance plans Critical illness insurance plans 14 / 50 Which entities are involved in the standard contracts mentioned in the guidelines? Insurers and policyholders TPAs, insurers, and hospitals TPAs and policyholders Insurers and hospitals 15 / 50 When does a death claim arise in a life insurance policy? Upon the policyholder's decision to surrender the policy When the insured survives the entire policy term Upon the death of the life assured When the policyholder fails to pay the premium 16 / 50 When deciding whether to insure or not, what should one evaluate? The probability of an earthquake or ship sinking The frequency of occurrence of a loss The cost of transferring the risk vs. the cost of bearing it oneself The value derived from insuring an asset 17 / 50 What role can the Insurance Ombudsman play in resolving complaints? The Ombudsman can only act as a mediator and counsellor if requested by the insurer The Ombudsman can only act as a mediator and counsellor if requested by the insured The Ombudsman can act as a mediator and counsellor within the terms of reference, by mutual agreement of the insured and the insurer The Ombudsman cannot act as a mediator or counsellor, but can only issue final decisions on complaints. 18 / 50 What is the significance of the information provided by the proposer? It determines the insurance premium It influences the duration of the policy It forms the basis of the insurance policy It affects the company's underwriting policy 19 / 50 What is the significance of Know Your Customer (KYC) documents? They help in identifying potential customers for the insurance company They provide information about the insurance company's products They ensure compliance with Anti-Money Laundering (AML) norms They help in estimating the claim amount 20 / 50 What is the purpose of the Principle of Pooling in life insurance? To provide protection against economic loss due to untimely death To increase the profit margin of insurance companies To make life insurance policies affordable for everyone To reduce the risk of premature death 21 / 50 What is the purpose of a prospectus in the insurance industry? To collect premiums in advance To announce the availability of payment facilities To introduce insurance products to prospective buyers To regulate the issuance of insurance policies 22 / 50 What is the minimum continuous hospitalization period required to receive benefits under the Corona Rakshak plan? 24 hours 48 hours 72 hours 96 hours 23 / 50 What is the meaning of "Appointment Letter" as per IRDAI regulations? A letter issued by an individual to apply for an insurance policy. A letter issued by an insurer to appoint a designated official. A letter issued by an insurer to appoint an insurance agent. A letter issued by an individual to resign from the post of an insurance agent. 24 / 50 What is the first step in cash planning? Analyzing income and expenditure flows Predicting future monthly income and expenses Designing a plan for managing cash flows Preparing a budget 25 / 50 What is the cash value in a whole life insurance policy? The amount of premium paid throughout the policyholder's life The amount of death benefit that the policyholder is entitled to The amount of money that the policyholder can withdraw in the form of a loan The amount of money that the policyholder will receive upon surrender of the policy 26 / 50 What is the benefit of a no claim discount in health insurance policies? It increases the sum insured for every claim-free year. It provides a discount on the premium for every claim-free year It encourages policyholders to make more claims to avail of the discount It is applicable only to group policies and not individual policies 27 / 50 What is free consent in a contract? When it is caused by coercion and fraud When it is not caused by coercion, undue influence, fraud, misrepresentation or mistake When it is caused by mistake When it is not caused by coercion, fraud or misrepresentation 28 / 50 What is "Consensus Ad-Idem" in a contract? Agreement between the parties Mutual benefit for the parties Communication of acceptance to the proposer None of the above 29 / 50 What expenses are covered under the Hospitalization Expenses for Covid-19 treatment? Diagnostic expenses Medication expenses Hospitalization expenses for a minimum period of 24 hours Outpatient consultation fees 30 / 50 What does the term "consumer" mean under the Consumer Protection Act? Any person who buys goods or hires services for commercial purposes Any person who buys goods or hires services for personal use Any person who obtains goods for resale Any person who avails of services for commercial purposes 31 / 50 What can IRDAI do if an Insurance Agent fails to submit the required information within the specified time lines? IRDAI can appoint the agent as an Investigating Officer IRDAI can revoke the agent's appointment IRDAI can initiate legal action against the agent IRDAI can appoint an Investigating Officer to inspect the affairs of an Insurance Agent 32 / 50 What are the conditions for non-medical underwriting in life insurance? Applicability to all types of lives and insurance plans. No specific conditions are required for non-medical underwriting. Applicability to certain class of lives, certain plans of insurance, certain upper limits of sum insured, entry age limits, maximum term of insurance, etc Applicability only to applicants with a clean medical history 33 / 50 What are the certified court copies of police reports required for? Claim form verification Hospital's certificate Employer's certificate Proof of death in case of death by accident 34 / 50 Is there a one-size-fits-all approach to investment planning? Yes, the same investment strategy can be applied to all investors No, investment planning is a customized process that varies from individual to individual. Yes, the same investment strategy can be applied to investors with similar risk profiles. No, investment planning is not necessary for all investors 35 / 50 How long is the waiting period for cataract for some other insurer? 1 year 2 years 3 years No waiting period 36 / 50 How does buying insurance differ from buying a car? Insurance is tangible, while a car is intangible Insurance cannot be experienced, while a car can be experienced Insurance is a physical product, while a car is a service Insurance is easily understood, while a car is not 37 / 50 How does a Term Life insurance policy work as an income replacement plan? By providing a lump-sum amount to the dependent beneficiaries By providing a series of monthly, quarterly or similar periodical payments to the dependent beneficiaries By providing a fixed salary to the dependent beneficiaries By providing health benefits to the dependent beneficiaries 38 / 50 For which medical condition may the waiting period vary between insurers? Diabetes Hypertension Cataract Sinusitis 39 / 50 Why does the proposer need to disclose details of any declined proposals, special conditions, or policy cancellations? To determine the proposer's loyalty to insurers To assess the proposer's negotiation skills To evaluate the proposer's risk profile To compare premium rates between insurers 40 / 50 Who are the target customers for group cover? Retail customers and their family members Corporate clients and their employees Very poor sections of the population Government employees and officials 41 / 50 Which of the following is NOT an operating expense incurred by life insurers? Agents training and recruitment Commissions of agents Investment returns Staff salaries 42 / 50 Which components make up the policy document? Policy schedule, standard policy provisions, and specific policy provisions Policy owner's details, premium payment terms, and policy number Insurer's promise to pay, policy stamp, and proof of age Standard policy provisions, policy number, and local Insurance Ombudsman's address 43 / 50 When can a non-standard age proof be submitted to the life insurer? When the insured forgets to carry a standard age proof When the insured is unable to produce a standard age proof When the insured wants to avoid the standard age proof submission process Non-standard age proofs are not acceptable readily 44 / 50 What regulations govern the issuance of a prospectus in the insurance industry? Insurance Act, 1938 and Health Insurance Regulations 2016 Protection of Policyholders Interest Regulations 2017 only Insurance Act, 1938 and Protection of Policyholders Interest Regulations 2017 Health Insurance Regulations 2016 only 45 / 50 What is the section number of the Insurance Act 1938 that states no risk can be assumed unless premium is received in advance? Section 59 Section 64 VB Section 1939 None of the above 46 / 50 What is the purpose of the excess clause in domiciliary hospitalization coverage? To limit the coverage for chronic illnesses To prevent misuse of the provision To extend the waiting period for coverage To provide additional benefits for home treatment 47 / 50 What is the purpose of a buffer cover in a group policy? To provide coverage for routine medical expenses To cover expenses of minor illnesses or injuries To provide additional coverage when the family sum insured is exhausted To offer financial assistance for non-medical expenses 48 / 50 What is the maximum pay-out for each of the listed treatments in the policy? It is determined by the insured's income level It is specified by the insured's age It is determined by the insurance company's profits It is clearly mentioned in the policy 49 / 50 What is the exception to the cancellation of the nomination in an assignment? When the assignee is a family member of the assignor When the assignor designates a new nominee before the assignment When the assignment is made to the insurance company for a policy loan When the assignment is revoked by the assignor 50 / 50 What is the basis for determining the pure rate of premium? Future loss experience Statistical data of past losses Market trends Customer preferences Your score is 0% 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 Username or Email Address Password Remember Me LIC IC38 QUESTION ANSWER LIC IC 38
