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