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