MOCK TEST LIFE INSURANCE

"HI READERS AND VIEWERS THIS IS MR.SARAVANAN.K WE ARE POSTING MODEL QUESTION PAPERS FOR LIFE INSURANCE EXAMINATION FOR BECOMING AN ADVISOR"

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MR.K.SARAVANAN,
9444302053,9281364707

KIND ATTENTION FOR INSURANCE COMPANIES & SALES MANAGERS & UNIT MANAGERS

1.Which one of the following statements is correct?
A medical referee examines the life to be insured
The medical referee only sees the reports received by the insurer
Both the statements above are correct
Both the statements above are wrong


2.Which one of the following statements is correct?
An assignment can be cancelled at any time by the assignor
A nomination can be cancelled at any time by the life insured
Both the statements above are correct
Both the statements above are wrong


3.State which one of the following statements is correct?
Group insurance business is growing faster than individual business
Group business is socially very relevant
Both the statements above are correct
Both the statement above are wrong


4.State which of the following statements is correct
In ULIPs, the amount payable on death is a fixed amount
In ULIPs, the NAV of a fund can be less than purchase price
Both the above statements are correct
Both the above statements are wrong


5.The responsibility to comply with the principle of utmost good faith rests with
The agent
The proposer
The life to be insured
All the three


6.Which one of the following statements is correct?
The proposal must be written by the proposer himself/herself
The proposal can be written by the agent
Both the statements above are correct
Both the statements above are wrong


7.Which one of the following statements is correct?
A marriage endowment policy insures the father and daughter together
A term insurance plan can be for a long period
Both the statements above are correct
Both the statements above are wrong


8.If the heirs allege that the insured person is mentally deranged, the insurer should
Ask the heirs to produce a stay order from the court
Ignore the allegation and pay the maturity claim
Apply to the court for appropriate directions
Ask the insured person for his observations


9.Insurance compensates losses
By replacing the original asset
To the full extent of lost income
Only to the extent of insured amount
All the three ways


10.The practice of charging level premiums has the benefit of
Making it easy for the policyholder to maintain the insurance cover
Increasing the returns to the policyholder
Helping the agent in his sales effort
All the above


11.Which one of the following statements is correct?
The Insurance Act does not protect those wo try to cheat the insurer
Section 45 does not apply if the policy had been revived within a year
Both the statements above are correct
Both the statements above are wrong


12.Which one of the following statements is correct?
Once the fpr is issued, the policyholder cannot back out of the contract
Polices can be back dated to any date within the financial year
FPR is evidence of the insurance contract
All the three statements above are wrong


13.Which of the following statements is correct?
Plans of insurance can be compared by reading the names given to the plans
Plans of insurance can be compared by comparing the premium rates
Both the statements above are correct
Both the statements above are wrong


14.Which one of the following statements is corrct?
If a person is missing for seven years, the claim is called a death claim
A claim can be admitted if the life insured is not heared of for seven years
Both the statement above are correct
Both the statement above are wrong


15.Which one of the following statements is correct?
The provision of grace period is a non-forfeiture option
Grant of a loan under a policy is non-forfeiture option
Both the statements above are correct
Both the statements above are wrong


16.Which one of the following statements is correct?
Maturity claim cheques are paid to the trustees in a MWP act case
Maturity claim cheques are paid to the beneficiaries in a MWP act case
Both the statements above are correct
Both the statements above are wrong


17.State which one of the following statement is correct
Ethical behaviour is prescribed in the irda?s code of conduct
Ethical behaviour is automatic when the policyholders interest are kept in mind
Both the statements above are correct
Both the statements above are wrong


18.Which one of the following statements is correct?
Enquiries are made in early death claims if SA exceeds Rs. 1 lakh
Early death claims in non-medical cases are settled without enquiries
Both the statements above are correct
Both the statements above are wrong


19.Which one of the following statements is correct?
An underwriter is an actuary
An underwriter uses financial and medical data
Both the statements above are correct
Both the statements above are wrong


20.Which one of the following statements is correct?
A presumption of death is not the same as proof of death
Presumption of death allows inheritance of property
Both the statements above are correct
Both the statements above are wrong


21.Which one of the following statements is correct?
The insurer need not contest court orders relating to policy moneys
The insurers should not sit on judgment between rival claims to policy moneys
Both the statements above are correct
Both the statements above are wrong


22.Which one of the following statements is correct?
A ?clause? restricts the benefits under the policy
. A clause is the same as a rider
. Both the statements above are correct
. Both the statement above are wrong


23.Which one of the following statements is correct ?
A variable insurance plan combines an insurance plan with an investment plant
A variable insurance policy guarantees a return or yie;d
Both the statements above are correct
Both the statements above are wrong


24.Because of the principle of indemnity,
There would be difficulties in settling claims in general insurance
There are frequent disputes at the time of settling claims
There may be attempts to exaggerate the claims
All the above three may happen


25.Which one of the following statements is correct?
The SA is always payable in a lump sum
The SA is always payablein instalments
The SA is always payable in a lump sum unless asked for otherwise
All the statements above are wrong


26.Which one of the following statements is correct?
Foreclosure action cannot be taken till a notice served on the policy holder
When a foreclosure action is taken nothing is payable to the policy holder
Both the statements above are correct
Both the statements above are wrong


27.Micro insurance can be transacted by
Life insurance only
non Life insurance only
Both the life and non life insures
Only by specially created insurers


28.Which one of the following statements is true with regard to Children's policies?
On the deferred date, the insured child has to be at least 15 years old
On the deferred date, the insured child need not be a major
On the deferred date, the policy must have been in force for at least ten years
All the statements above are wrong


29.The asset which is a human being perishes when
He dies
He becomes disabled to work
He retires from work
In all the above situtaions


30.Moral hazard may be suspected in cases where
The life is to insured is old
The insurance is for a very large amount
In both the above cases
In neither of the above cases


31.State which one of the following statements is correct.
The Ombudsman sits like a court with witnesses and lawyers
The Ombudsman will not hear matters already before other courts
Both the statements above are correct
Both the statements above are wrong


32.Which one of the following statements is correct?
Every endorsement must be typed on or attached to policy
Endorsements on a policy form part of the insurance contract
Both the statements above are correct
Both the statements above are wrong


33.Which one of the following statements is correct?
In an assignment, property is transferred
When a nomination is made, property is transferred
Both the statements above are correct
Both the statements above are wrong


34.Which one of the following statements is correct?
A nominee must be above 18 years of age
A nominee must be a close relative
Both the statements above are correct
Both the statements above are wrong


35.Insurable interest is
Defined in the insurance act
Defined in the contracts act
Defined in the contracts act
Not defined in any written law


36.State which one of the following statements is correct?
Life insurance agent can sell non-life micro insurance products
Life micro insurance policy cannot exceed Rs.50000 Sa
Both the statements above are correct
Both the statements above are wrong


37.Which one of the following statements is correct, if trustee is not appointed?
Survival benefits may be settled on indemnity basis, if original policy is lost
Survival benefits have to be endorsed on the policy
Both the statements above are correct
Both the statements above are wrong


38.Which one of the following statements is correct?
Underwriting is the process of verifying the level of risk of each new entrant
Working ladies are charged extra premium, even if there are no impairments
Both the statements above are correct
Both the statements above are wrong


39.Life insurance is better than other avenues of savings in respect of
Appreciation
Tax benefits
Usefulness in emergency
All of the above


40.Which one of gthe following stgatements is correct?
The proposer will not be shown the agent's report
The proposer will not be shown the medical examiner's report
Both the statements above are correct
Both the statements above are wrong


41.Insurance works on the principle of
Trust
sharing
Randomness
All the above


42.Which one of the following statements in correct?
Any policy which promises a payment on a fixed date is an endowment policy
If the SA increases every year, it is a participating policy
Both the statements above are correct
Both the statements above are wrong


43.A money back policy for SA of Rs.50000 matured after 25yrs. Survival benefits of 15% each had been paid at the end of 5th , 10th , 15th and 20th years. Bonus had accrued at Rs.965 per Rs.1000 SA. Interim bonus@ Rs.25 pert thousand SA is payable. What is the maturity claim amount?
68250
69500
98250
99500


44.Find out the loan payable at 90% of surrender value on the basis of the following date, (the answer to be rounder off to the next higher rupee) SA. Rs.50,000 DOC-13.7.1990, Endowment with profit-25 years Due date of last unpaid premium 13-04-2007, mode quarterly, Premium amount Rs.450/- SV. factor 56% Bonus is Rs. 960 per thousand. Interim bonus rate was Rs.75/-.
35089
43815
47124
none of these


45.Calculate quaterly premium (rounded off to the next higher rupee) on the basis of the following data S.A. Rs.50,000/- Date of maturity Rs.24/12/2036 ? Term 30 yrs Date of birth -28/06/1979., Mode rebate for yearly Rs.1.5 per thousand HLY, Rs.1.00, OLY-NIL and MLY ? 5% Extra S.A Rebate Rs.1.50 per thousand for S.A. Rs.50,000/- and above Tabular premium for age nearer birthday 26-Rs.26.46, 27-Rs.27.08, 28-Rs.28.15.
312
320
331
339



BACK



Question Answer
Which one of the following statements is correct? The medical referee only sees the reports received by the insurer

Which one of the following statements is correct? A nomination can be cancelled at any time by the life insured

State which one of the following statements is correct? Both the statements above are correct

State which of the following statements is correct In ULIPs, the NAV of a fund can be less than purchase price

The responsibility to comply with the principle of utmost good faith rests with The proposer

Which one of the following statements is correct? Both the statements above are wrong

Which one of the following statements is correct? A term insurance plan can be for a long period

If the heirs allege that the insured person is mentally deranged, the insurer should Ask the heirs to produce a stay order from the court

Insurance compensates losses Only to the extent of insured amount

The practice of charging level premiums has the benefit of Making it easy for the policyholder to maintain the insurance cover

Which one of the following statements is correct? Both the statements above are correct

Which one of the following statements is correct? Polices can be back dated to any date within the financial year

Which of the following statements is correct? Both the statements above are wrong

Which one of the following statements is corrct? Both the statement above are correct

Which one of the following statements is correct? Both the statements above are wrong

Which one of the following statements is correct? Maturity claim cheques are paid to the trustees in a MWP act case

State which one of the following statement is correct Both the statements above are correct

Which one of the following statements is correct? Both the statements above are wrong

Which one of the following statements is correct? An underwriter uses financial and medical data

Which one of the following statements is correct? Both the statements above are correct

Which one of the following statements is correct? Both the statements above are correct

Which one of the following statements is correct? A ?clause? restricts the benefits under the policy

Which one of the following statements is correct ? A variable insurance plan combines an insurance plan with an investment plant

Because of the principle of indemnity, All the above three may happen

Which one of the following statements is correct? All the statements above are wrong

Which one of the following statements is correct? Foreclosure action cannot be taken till a notice served on the policy holder

Micro insurance can be transacted by Both the life and non life insures

Which one of the following statements is true with regard to Children's policies? On the deferred date, the insured child need not be a major

The asset which is a human being perishes when In all the above situtaions

Moral hazard may be suspected in cases where In both the above cases

State which one of the following statements is correct. The Ombudsman will not hear matters already before other courts

Which one of the following statements is correct? Both the statements above are correct

Which one of the following statements is correct? In an assignment, property is transferred

Which one of the following statements is correct? Both the statements above are wrong

Insurable interest is Not defined in any written law

State which one of the following statements is correct? Both the statements above are correct

Which one of the following statements is correct, if trustee is not appointed? Survival benefits have to be endorsed on the policy

Which one of the following statements is correct? Underwriting is the process of verifying the level of risk of each new entrant

Life insurance is better than other avenues of savings in respect of Usefulness in emergency

Which one of gthe following stgatements is correct? Both the statements above are correct

Insurance works on the principle of All the above

Which one of the following statements in correct? Both the statements above are wrong

A money back policy for SA of Rs.50000 matured after 25yrs. Survival benefits of 15% each had been paid at the end of 5th , 10th , 15th and 20th years. Bonus had accrued at Rs.965 per Rs.1000 SA. Interim bonus@ Rs.25 pert thousand SA is payable. What is the maturity claim amount? 69500

Find out the loan payable at 90% of surrender value on the basis of the following date, (the answer to be rounder off to the next higher rupee) SA. Rs.50,000 DOC-13.7.1990, Endowment with profit-25 years Due date of last unpaid premium 13-04-2007, mode quarterly, Premium amount Rs.450/- SV. factor 56% Bonus is Rs. 960 per thousand. Interim bonus rate was Rs.75/-. none of these

Calculate quaterly premium (rounded off to the next higher rupee) on the basis of the following data S.A. Rs.50,000/- Date of maturity Rs.24/12/2036 ? Term 30 yrs Date of birth -28/06/1979., Mode rebate for yearly Rs.1.5 per thousand HLY, Rs.1.00, OLY-NIL and MLY ? 5% Extra S.A Rebate Rs.1.50 per thousand for S.A. Rs.50,000/- and above Tabular premium for age nearer birthday 26-Rs.26.46, 27-Rs.27.08, 28-Rs.28.15. 320