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