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