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