The Licentiate Examination is a mandatory exam for individuals who wish to work in the insurance industry in India. The exam is conducted by the Insurance Institute of India and consists of three papers:
- Principles of Insurance
- Practice of Life Insurance
- Practice of General Insurance
The exam is conducted in English and candidates are required to pass all three papers to receive their Licentiate certification. The examination is conducted in both online and offline modes. Candidates can apply for the exam online through the website of the Insurance Institute of India.
The Licentiate certification is recognized by the Insurance Regulatory and Development Authority of India (IRDAI) and is a prerequisite for individuals who wish to work as agents, brokers, surveyors, or loss assessors in the insurance industry in India.
| Insurance Agents (LIFE) Question Bank – English | ||||||
| Sr.No | Question Body | Alternative 1 | Alternative 2 | Alternative 3 | Alternative 4 | Correct Alternative |
| 1 | In the olden days, Chinese traders used to keep their goods in different boats while sailing through treacherous waters. Analyse why? | Chinese boats were small and they carried heavy goods | The Chinese Government mandated that goods should be distributed among multiple shipping companies so that there is equal distribution of business | Chinese traders placed their goods in multiple boats because it provided insurance against total loss | Chinese traders placed their goods in multiple boats because it was cheap | 3 |
| 2 | What is the cost of risk directly proportional to? | Probability and impact of the loss | Impact of the loss alone | Probability of loss and object of insurance | Impact of loss and the object of insurance | 1 |
| 3 | Which of the below statement is incorrect? | Under mutuality, the funds of various individuals are combined | Mutuality is also known as pooling | Under mutuality we have funds flow from one source to many | Mutuality provides protection against the economic loss arising as a result of one’s untimely death. This loss is shouldered and addressed through having a fund that pools the contributions of many who have entered into the life insurance contract | 3 |
| 4 | The earliest type of modern insurance was in the form of protection by business guilds or societies in Europe especially _________ in the 14th century. | Spain | France | Germany | Italy | 4 |
| 5 | In terms of Breach of Utmost Good Faith, which of the following is not correct | Concealment is Intentional Non- Disclosure | Concealment is Innocent Non-Disclosure | Fraudulence is Intentional Misrepresentation | Hiding existence of a disease is intentional Non-Disclosure | 2 |
| 6 | Explain difference between peril and hazard. | Peril is the cause of loss and hazard is the consequence of that loss | Peril is the direct cause of loss while hazard increases/decreases the probability of loss | Hazard is the direct cause of loss while peril increases/decreases the probability of loss | Peril is probability of loss while hazard is related to impact of loss | 2 |
| 7 | The IRDA was established in the year __________ under the IRDA Act, 1999. | 1999 | 2000 | 2002 | 2003 | |
| 8 | Losses caused by an earthquake are ______ | Critical | Collaborative | Corollary | Common | 1 |
| 9 | Who is protected under the In-Contestability Clause included under a Life Assurance Policy? | Insurer | Insured | Insurance Agent | Insurance Broker | 2 |
| 10 | Who among the Following, is Likely to be Exposed to Accidental Hazard, in His or Her Occupation? Choose the Most Appropriate Option. | Medical-Professional | Tourist-Guide | Demolition-Experts | Marketing-Executive, Who is regularly on the Field. | 3 |
| 11 | Who among the Following, is Likely to be Exposed to Health-Hazard, in His or Her Occupation? | Yoga-Instructor | Film-Stunt-Artist | Dancer in a Night-Club | Person, Exposed to Mining Dust | 4 |
| 12 | Why Do, Insurers need Material Information? | For Documentation Purposes. | Decide on the Risk- Acceptance, and the Terms and Conditions, Associated. | To Comply with the Regulatory Requirements. | To Improve the Customer-Service. | 2 |
| 13 | Compare: Gambling and Insurance. | Gambling and Insurance, Both, are the Same. | Gambling has No Insurable Interest involved, but Insurance does have. | Insurance has Only Profitable Outcomes, while, Gambling could result in Losses. | Gambling is Legally Enforceable, but, Insurance is Not. | 2 |
| 14 | Select a Scenario, that showcases the Principle of Uberrima Fides. | Timely Payment of Premium. | Disclosing All Material Information on the Insurance Proposal- Form. | Faking All Material Information on the Insurance Proposal- Form. | Disclosing All Irrelevant Information on the Insurance Proposal- Form. | 2 |
| 15 | Label the Interest, that the Insured has, in the Subject-Matter of Life Assurance. Choose the Most Appropriate Option. | Speculative Interest | Wager Interest | Insurable Interest | Indemnity Interest | 3 |
| Sr.No | Question Body | Alternative 1 | Alternative 2 | Alternative 3 | Alternative 4 | Correct Alternative |
| 16 | Examine the conditions mentioned below and tell us which is not a valid condition for returning a policy during the free look period. I: Option must be exercised within 15 days of receiving the policy document II: Communication has to be in writing III: Communication can be verbal or written | I only | II only | III only | I and III | 3 |
| 17 | Section 45 (Indisputability Clause) of Insurance Act, protects the Insured, from Rejection of Claim, by the Insurer; provided the Policy has completed –. Choose the Most Appropriate Option. | One Year | Three Years | Five Years | Seven Years | 2 |
| 18 | As per the Suicide Clause, if the Life-Assured Dies, as a Result of Suicide, After 3 Years of the Issue of Policy, What Does the Beneficiary Receive as the Claim? | Nothing | Premium, Paid by the Life-Assured. | (2 × Premium), Paid by the Life-Assured. | Full Face-Amount of the Policy. | 4 |
| 19 | What Does, First Premium Receipt (F.P.R.), signify? | Free-Look Period has ended. | It is the Evidence, that the PolicyContract has begun. | Policy cannot be cancelled, Now. | Policy has acquired a Certain Cash-Value. | 2 |
| 20 | Identify the Document, that evidences a Contract, between the Insurer and the Insured. | Proposal-Form | Claim-Form | Nomination-Form | Policy-Document | 4 |
| 21 | Which One of the Following Statements, is In-Correct, with Regard to Numerical Rating Method of Underwriting? | Under this Method, Underwriters assign the Positive Rating-Points for All Negative or Adverse Factors. | Under this Method, Underwriters assign the Positive Points for Any Positive or Favourable Factors. | Under this Method, the Total Number of Points, so assigned, will decide How Much Extra- Mortality-Rating (E.M.R.), it has been given. | Under this Method, if the Extra-MortalityRating (E.M.R.) is Very High, Insurance may even be declined. | 2 |
| 22 | Which One of the Following Statements, is In-Correct, with Regard to Judgement Method of Underwriting? | Under this Method, Subjective Judgement is used. | This Method is especially used in Case of Complex Cases. | In this Method, the Company may seek Expert Opinion of Medical Doctor. | In this Method, the Underwriter assign Positive or Negative Rating-Points to the Adverse Factors. | 4 |
| 23 | Mr. Vimal is a 32-Years’ Old, Healthy, Non-Smoker, Teetotaller Individual; Who applies for Life Assurance from ABC Limited Insurance Company. Which One of the Following Statements, will Hold True, with Regard to Risk-Acceptance by the Insurance Company? | Risk will be Accepted at Ordinary Rates. | Risk will be Accepted With an Extra, Over the Tabular Rate of Premium. | Risk will be Accepted, With a Lien on Sum- Assured. | Risk will be Accepted, With a Restrictive Clause. | 1 |
| 24 | If, Mr. Brijesh, a 40-Years’ Old Individual, is perceived as a ‘Sub-Standard Risk’, by the Insurance Company, then, Which One of the Following Statements, will Hold True, with Regard to Risk-Acceptance by the Insurance Company? | Risk will be Accepted at Ordinary Rates. | Risk will be Accepted at Lower Rates. | Risk will be Accepted With an Extra, Over the Tabular Rate of Premium. | Risk will be Declined. | 3 |
| 25 | What is meant by ‘Risk-Classification’? Choose the Most Appropriate Option. | The Process, in which, Individual Lives are Categorised and Assigned to Different Risk-Classes, Depending on the Degree of Risks, they Pose. | The Tendency of People, Who suspect or know that, their Chance of Experiencing a Loss is High, to seek-out the Insurance, Eagerly; and to gain in the Process. | The Process of Evaluating Each Proposal for Life- Assurance in Terms of the Degree of Risk, it represents; and then Deciding: Whether or Not to Grant the Insurance, and on What Terms. | The Process, in which, the Applicants, Who are Exposed to Similar Degrees of Risk, are Placed in the Same PremiumClass. | 1 |
| 26 | Mr. Nimesh bought a 20-Years’ Unit-Linked Insurance Plan (U.L.I.P.). In the Event: Mr. Nimesh dies, Within the Policy-Term, Which of the Following, will be paid? | Surrender-Value will be paid. | Premiums paid will be Returned, After Deducting the Dues. | Lower of Sum-Assured or Fund-Value, will be paid. | Higher of Sum-Assured or Fund-Value, will be paid. | 4 |
| Sr.No | Question Body | Alternative 1 | Alternative 2 | Alternative 3 | Alternative 4 | Correct Alternative |
| 27 | In Case of Presumption of Death of Life-Assured, Which One of the Following Documents, needs to be submitted, by the Nominee? | Death-Certificate from Municipal Corporation. | Decree from a Competent Court. | Employer’s Certificate | Inquest-Report | 2 |
| 28 | Mr. Brijesh purchased a 20-Years’ Unit-Linked InsurancePlan (U.L.I.P.), from ABC Insurance Company. If Mr. Brijesh Dies, Before the Maturity of the Policy, then Insurance Company will have to pay –. | Surrender-Value | Premiums, After Deducting the Dues. | Lower of Sum-Assured or Fund-Value. | Higher of Sum-Assured or Fund-Value. | 4 |
| 29 | Which One of the Following Claims, can be Payable, Only to the Assignee or Nominee? | Death-Claim | Maturity-Claim | Survival-Benefit | Surrender-Value | 1 |
| 30 | Which One of the Following Documents, needs to be submitted, by the Nominee, in the Event of Natural Death of the Life-Assured? Choose the Most Appropriate Option. | Inquest Report | Death-Certificate | Post-Mortem Report | First Information Report (F.I.R.) | 2 |
| 31 | You are an insurance agent. Mr. Mahesh has approached you as a customer to buy some insurance. You hear from friends that Mr. Mahesh is involved in sale of pirated goods and all the resultant cash is invested in buying life insurance. What should you do? | Concentrate on completing the sale and securing commission | Report suspicious transaction along with all the information you have about Mr. Mahesh | Blackmail Mr. Mahesh and try to get some monetary benefits out of him | Keep mum about the transaction | 2 |
| 32 | Important information that a prospectus discloses includes: I. Any incentives to reward policyholders for early entry II. Any incentives to reward policyholders for continued renewals III. Any incentives to reward policyholders for favourable claims experience | Only I | I and II | II and III | I, II and III | 1 |
| 33 | If Complex Language is used to word a Certain Policy- Document, and it has given Rise to an Ambiguity, How Will it generally be construed? | In Favour of the Insured. | In Favour of the Insurer. | The Policy will be declared as Void, and the Insurer will be asked to Return the Premium, With Interest, to the Insured. | The Policy will be declared as Void, and the Insurer will be asked to Return the Premium, to the Insured, Without Any Interest. | 1 |
| 34 | Which of the Following, is Not a Part of a Standard Policy-Document? | Policy Schedule | Standard Provisions | Policy-Specific Provisions | Policy Forfeiture Provisions | 4 |
| 35 | Gives us, an Example of a Standard Policy-Provision. | A Clause, Precluding the Death Due to Pregnancy, for a Lady, Who is Expecting at the Time of Writing the Contract. | Suicide Clause | A Clause, Precluding Certain Illnesses. | A Clause, Granting Certain Privileges to the Policy-Holder. | 2 |
| 36 | Which of the following is not a contributor towards Customer Lifetime value | Historical | Present | Potential | Speculated | 4 |
| 37 | Which of the following is NOT an example of non verbal communication? | Signaling okay with a hand gesture | Gesturing in an empty room | Wearing jewelry | Raising your voice | 2 |
| 38 | The ability to perform the promised service dependably and accurately, can be termed as _________ | Tangible | Reliability | Assurance | Responsiveness | 2 |
| 39 | The knowledge, competence and courtesy of service providers and their ability to convey trust and confidence, can be termed as _________ | Reliability | Assurance | Responsiveness | Tangible | 2 |
| Sr.No | Question Body | Alternative 1 | Alternative 2 | Alternative 3 | Alternative 4 | Correct Alternative |
| 40 | Select the Correct Statement, with Regard to Grace- Period. Choose the Most Appropriate Option. | The Standard Length of the Grace-Period is 1 Month or 31 Days. | The Standard Length of the Grace-Period is One Quarter. | The Standard Length of the Grace-Period is One Week. | The Standard Length of the Grace-Period is One Fort-Night. | 1 |
| 41 | Consumer protection Act. comprises of_________ quasijudicial machinery | One-tier | Three-tier | Two-tier | Four-tier | 2 |
| 42 | Which of the following statement is incorrect with regard to process of filing a complaint with a Consumer Court? | No one else other than the complainant himself / herself can file a complaint with the State or National Commission | There is no fee for filing a complaint with State Commission or National Commission | The complaint can be filed personally or can even be sent by post | No advocate is necessary for the purpose of filing a complaint | 1 |
| 43 | If a policyholder wishes to file a complaint against any insurance company directly with State Commission, then in which of the following cases can he / she do so? | Where the value of goods/services and compensation claimed is up to Rs 20 lakh | Where the value of goods/services and compensation claimed exceeds Rs. 20 lakh but does not exceed Rs. 100 lakh. | Where the value of goods/services and compensation claimed exceeds Rs.100 lakh. | Where the value of goods/services and compensation claimed exceeds Rs. 10 crores | 2 |
| 44 | Which of the following statement is incorrect with regard to the State Commission? | This redressal authority has original, appellate and supervisory jurisdiction | It entertains appeals from the National Commission | It has original jurisdiction to entertain complaints where the value of goods/service and compensation, if any claimed exceeds Rs. 1Crore but does not exceed Rs. 10 Crore | No fees is charged to file a complaint with state commission | 2 |
| 45 | Which of the following rules is incorrect with regards to the Award that can be passed by the Ombudsman? | The Award should be more than Rs. 50 lakh | The Award should be made within a period of 3 months from the date of receipt of complaint | The insurer shall comply with the Award and send a written intimation to the Ombudsman within 15 days of the receipt of such acceptance letter | If the insured does not intimate in writing the acceptance of such Award, the insurer may not implement the Award | 1 |
| 46 | Which of the below Act has provisions for monitoring and control of operations of insurance companies? | IRDA Act, 1999 | Deposit Insurance and Credit Guarantee Corporation Act, 1961 | Public Liability Insurance Act, 1991 | The Insurance Act, 1938 and subsequent amendment | 4 |
| 47 | Which One of the Following Bodies, can issue the License to work as Individual Agents, in India? | Finance Ministry | Government of India | Life Insurance Corporation (L.I.C.) of India and General Insurance Corporation (G.I.C.) of India, Jointly. | Insurance Regulatory and Development Authority of India (I.R.D.A.I.) | 4 |
| 48 | Insurance Agents, who hold the Licence to act as Agents for Both: Life Insurer, General Insurer, Health Insurer, and Each of the Two Mono-Line Insurers, are called –. | Brokers | Corporate Agents | Third-Party Administrators (T.P.A.s) | Composite Insurance Agents | 4 |
| 49 | Minimum Academic Qualification of a Sepcified Person is –. | Class 10 | Class 12 | Graduate | Post-Graduate | 2 |
| 50 | An Applicant, seeking an Appointment as an Insurance Agent of an Insurer, shall submit an Application in Form: –, to the — of the Insurer. | I-A, Designated Official | A.I-A, Appellate Officer | I-B, Designated Official | I-B, Appellate Officer | 1 |
| 51 | Compare the probability of a contingent event with regards to life and general insurance. | The probability of the event happening stays constant through time with regards to both life and general insurance | The probability of the event happening increases in case of general insurance and decreases in case of life insurance | The probability of the event happening increases in case of life insurance and decreases in case of general insurance | The probability of the event happening increases in case of life insurance and stays constant in case of general insurance over a period of time | 4 |
| Sr.No | Question Body | Alternative 1 | Alternative 2 | Alternative 3 | Alternative 4 | Correct Alternative |
| 52 | Analyse the two statements below and determine the true one(s) Statement I: The contingent event occurs certainly in case of general insurance Statement II: The contingent event occurs certainly in case of life insurance | Only Statement I is true | Only Statement II is true | Statements I and II are true | Statements I and II are false | 2 |
| 53 | Suggest a class of insurance that will provide protection against loss of goodwill. | Life insurance | Property insurance | Liability insurance | Personal insurance | 3 |
| 54 | Analyse the Following Two Statements, and Determine the True One(s): Statement-I: The Contingent-Event occurs Certainly, in Case of General Insurance. Statement-II: The Contingent-Event occurs Certainly, in Case of Life Assurance. | Statement-I is True. | Statement-II is True. | Statement-I and Statement-II are True. | Statement-I and Statement-II are False. | 2 |
| 55 | Explain: ‘Risk-Tolerance’. Choose the Most Appropriate Option. | Types of Risks, One Can Take. | Amount of Risk, One is Willing to Bear, while Investing. | Instruments of Risk- Management. | Period, for which, One is willing to risk His or Her Investments. | 2 |
| 56 | Assess the impact of inflation on your investment returns. | Inflation has no impact on the investment returns | Inflation has a positive impact on the investment returns | Inflation has a corroding impact on the investment returns | Inflation boosts investment returns | 3 |
| 57 | Identify the stage of life when an individual will appreciate his long term savings the most. | Childhood | Just married | Teen age | Post retirement | 4 |
| 58 | Describe the purpose of tax planning. Choose the most appropriate option. | Tax evasion | Planning your investments in a manner such that maximum Tax benefits become applicable | Provide for taxes | Pay tax on time | 2 |
| 59 | Explain risk tolerance. Choose the most appropriate option. | Types of risks one can take | Amount of risk one is willing to bear while investing | Instruments of risk management | Period for which one is willing to risk his investments | 2 |
| 60 | Identify a Insurance product that can be categorised under contingency products. Choose the most appropriate option. | Bank deposits | Shares | Bonds | Life Insurance | 4 |
| 61 | Identify the flip side of a pure term insurance plan. | It is the cheapest form of insurance | It can be converted to a whole life insurance plan | It doesn’t provide any returns on maturity | It comes handy as an income replacement plan | 3 |
| 62 | You and your friend of same age bought life insurance policy on same date but you are paying a higher premium than him. What impact will it have on the compensation paid to the beneficiary in the event of your death? | Compensation remains the same | Compensation will be higher | Compensation will be lower | There will be no compensation | 2 |
| 63 | Illustrate the USP of term insurance. Choose the most appropriate option. | Lower Price | Coverage | Investment returns | Choice of riders | 1 |
| 64 | Samara purchased a term insurance policy when she had high life insurance needs and limited income. Now Samara can afford whole life insurance. What term life insurance provision will permit Samara to switch her term insurance to whole life insurance without having to show that she is still insurable? | Alteration | Conversion | Exchange | Switching | 2 |
| Sr.No | Question Body | Alternative 1 | Alternative 2 | Alternative 3 | Alternative 4 | Correct Alternative |
| 65 | Michael wants to make sure that life insurance proceeds are available to pay his outstanding mortgage balance if he dies. He purchased a type of life insurance in which the amount of coverage gradually declines, just as his outstanding mortgage balance gradually declines. Tell us what this type of insurance has Micheal bought. | Decreasing benefit insurance | Decreasing rider benefit | Decreasing term insurance | Re-entry term insurance | 3 |
| 66 | As per IRDA norms, an insurance company can provide which of the below non-traditional savings life insurance products in India? Choice I: Unit Linked Insurance Plans Choice II: Variable Insurance Plans | I only | II only | Both: I and II | Neither: I nor II | 1 |
| 67 | Ramesh has decided to maximise his ULIP premium through a Equity Fund. Where will the insurance company invest his premiums? | Stocks | Government or corporate debt | Both in Equity related instruments as well as Government or Corporate debt | Commercial paper or Treasury bills | 1 |
| 68 | What does the NAV imply in case of ULIP’s | Total Net worth of the insurer | Assets of the insurer | Market value of the assets in which the fund is invested | Liability of the insurer | 3 |
| 69 | Carl would like to purchase life insurance. He would also like to invest in a mutual fund. An agent told Carl about a form of life insurance in which Carl could select where the saving component is invested. This form of life insurance has fixed risk premiums and the saving policies is invested. Which type of insurance is the agent referring to? | Endowment life insurance | ULIP | Whole life | Term insurance | 2 |
| 70 | What was the Primary Argument, behind “Buy Term Assurance and Invest the Difference, Else-Where”? Choose the Most Appropriate Option. | Term Assurance is the Best Form of Life Assurance. | Investing the Balance Premiums, in Other Investment-Instruments, could yield a Higher Return. | The Policy-Holder can take the Higher Risks, by investing the Balance Premium in the Equities. | Non-Term Assurance has the Lowest Yields. | 2 |
| 71 | Which Section of the MWP Act provides for security of benefits under a life insurance policy to the wife and children. | Section 38 | Section 39 | Section 6 | Section 45 | 3 |
| 72 | Identify the benefits of taking out a keyman insurance policy. | Offset business start-up costs | Offset business continuity costs | Offset business recovery costs | Promote worker harmony | 2 |
| 73 | Select the loss covered under keyman insurance. | Property theft | Losses related to the extended period when a key person is unable to work | Losses caused due to errors and omission | General liability | 2 |
| 74 | Illustrate a general requirement for granting keyman insurance. | Company must be loss making | Company must be profitable | Company must be in business for less than 6 months | Company must be in business for less than 1 year | 2 |
| 75 | Who is paid the claim money for a policy effected under Section 6 of the Married Women Property Act? | Appointee | Trustee | Nominee | Assignee | 2 |
| 76 | Explain to us why young people are charged less life insurance premium when compared to old people. | Young people don’t need life insurance as much as old people | Young people cannot afford to buy costly life insurance products due to their low income | Mortality is directly proportional to age | Mortality is inversely proportional to age | 4 |
| Sr.No | Question Body | Alternative 1 | Alternative 2 | Alternative 3 | Alternative 4 | Correct Alternative |
| 77 | What does valuation in life insurance mean? | The process of arriving at the profit of a life insurance company | The process of determining the net premium for a life insurance policy | The process of arriving at the bonus in a life insurance company | The process by which the value of all the existing policies is ascertained in a life insurance company | 4 |
| 78 | In case of __________, a company expresses the bonus as a percentage of basic benefit and already attached bonuses. | Reversionary bonus | Compound bonus | Terminal bonus | Persistency bonus | 2 |
| 79 | Name the two policy features on which rebates on premium can be offered by the insurer. | Policy plan and risk cover | Policy plan and mode of premiums | Sum assured and mode of premiums | Sum assured and policy plan | 3 |
| 80 | Illustrate the effect of interest rates on the premium assumed by insurance companies. | Lower the interest rate assumed, lower the premium | Higher the interest rate assumed, higher the premium | Higher the interest rate assumed, lower the premium | The interest rates don’t affect premiums | 3 |
| 81 | Explain what does the grace period clause provide for in life insurance policies. | Insured does not have to pay premiums during that period | Insured has to pay only half the premium amount | Insured has some additional time to pay the premium even after due date | It extends the free look period by 30 days | 3 |
| 82 | For an insurance policy nomination is allowed under _________ of the Insurance Act. | Section 10 | Section 38 | Section 39 | Section 45 | 3 |
| 83 | Construct a situation that would require evidence of insurability at revival. | It has been a week since the policy has lapsed | Policy has been lapsed for more than a year | Policy has been in force for a year | Loan against policy has been sought | 2 |
| 84 | Select the correct statement with regards to grace period. Choose the most appropriate option | The standard length of the grace period is one month. | The standard length of the grace period is one quarter | The standard length of the grace period is one week | The standard length of the grace period is one fortnight | 1 |
| 85 | Examine the two statements below and select the one(s) that is are true. I: Life assured can appoint more than one person as nominees II: Assignment can be done only after the commencement of the policy | I only | II only | I and II | Neither I nor II | 3 |
| 86 | Which of the below statement is correct with regards to ‘anti selection’? | Anti selection is the process used by the insurance company to ensure it does not end up selecting unethical agents | Anti selection is the tendency of people, who suspect or know that their chance of experiencing a loss is high, to seek out insurance eagerly and to gain in the process. | Anti selection is the process used by the insurance company to ensure it does not end up launching insurance products that are not suitable for the prospective policyholders | Anti selection is the process used by the insurance company to ensure it does not end up selecting wrong investment products for deploying premiums collected from the policyholders. | 2 |
| 87 | Which of the following statement is incorrect with regards to judgment method of underwriting? | Under this method subjective judgment is used | This method is especially used in case of complex cases | In this method the company may seek expert opinion of medical doctor | In this method the underwriter assign positive or negative rating points to adverse factors | 4 |
| 88 | _____________ means that applicants who are exposed to similar degrees of risk must be placed in the same premium class. | Selection of risk | Anti-selection | Moral hazard | Equity among the risks | 4 |
| 89 | Which of the below statement is correct with regards to ‘sub-standard lives’ under risk classification? Choose the most appropriate option. | Substandard lives consist of those individuals whose anticipated mortality corresponds to the standard lives represented by the mortality table. | Substandard lives consist of those individuals whose anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium. | Substandard lives consist of those individuals whose anticipated mortality is higher than the average or standard lives, but are still considered to be insurable. | Substandard lives consist of those individuals whose impairments and anticipated extra mortality are so great that they could not be provided insurance coverage at an affordable cost | 3 |
| Sr.No | Question Body | Alternative 1 | Alternative 2 | Alternative 3 | Alternative 4 | Correct Alternative |
| 90 | Which of the following statement is correct with regards to ‘declined lives’ under risk classification? | Declined lives consist of those individuals whose anticipated mortality corresponds to the standard lives represented by the mortality table. | Declined lives consist of those individuals whose impairments and anticipated extra mortality are so great that they could not be provided insurance coverage at an affordable cost | Declined lives consist of those individuals whose anticipated mortality is higher than the average or standard lives, but are still considered to be insurable. | Declined lives consist of those individuals whose anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium. | 2 |
| 91 | A life insurance company paid the treatment costs to insured during the event of hospitalisation of the insured during the policy term. This is an example of ________________. | Survival benefit payments | Surrender value | Rider benefit | Conditional assignment | 3 |
| 92 | Which of the below death claim will be treated as a nonearly death claim by the insurance company? | If the insured dies within one year of policy tenure | If the insured dies within two years of policy tenure | If the insured dies within three years of policy tenure | If the insured dies after five years of policy tenure | 3 |
| 93 | There are various events which can trigger survival claims. Identify which of the below statement is incorrect with respect to the events which can trigger survival claims? | An instalment payable upon reaching the milestone under a money-back policy | Critical illnesses covered under the policy as a rider benefit | Surrender of the policy by the assignee | Maturity of a term insurance plan | 4 |
| 94 | Identify the event which can trigger the event of surrender value payment by the insurance company? | The event will be triggered on the accidental death of life insured within policy term | The event will be triggered when an instalment becomes payable upon reaching a certain milestone | The event will be triggered when the policyholder decides to cancel the contract | The event will be triggered on maturity of the policy | 3 |
| 95 | The claim form consists of which of the following? Details of the proposer and the policy number under which the claim is madeDetails of the patientReason for the claim – for which the hospitalization was done and the cause of illness Period of hospitalization | I, II and IV | II, III and IV | I, III and IV | I, II, III and IV | 4 |
| 96 | All the statements given below related to Employees’ State Insurance Scheme are true EXCEPT: | This scheme was introduced for central government employees and provides comprehensive health services through a network of its own dispensaries and hospitals | ESIC (Employees State Insurance Corporation) is the implementing agency | All workers earning wages up to Rs. 15,000 are covered under the contributory scheme | Employee and employer contribute 1.75% and 4.75% of pay roll respectively; state governments contribute 12.5% of the medical expenses | 1 |
| 97 | All the statements given below related to Central Government Health Scheme are true EXCEPT: | The Central Government Health Scheme (CGHS), which was introduced in 1954 | The CGHS is only for the central government employees including pensioner and their family member working in civilian jobs | It aims to provide comprehensive medical care to employees and their families and is fully funded by the employer (central government) | The services are provided through CGHS’s own dispensaries, polyclinics and empanelled private hospitals. | 3 |
| 98 | All the options given below are lifestyle factors that determine the health of any individual EXCEPT: | Exercising | Eating within limits | Safe drinking water | Avoiding worry | 3 |
| 99 | Which of the following is an example of communicable disease caused due to environmental factors like bad hygiene? | Influenza | Malaria | Dengue | Asbestosis | 1 |
| 100 | Which of the following is an example of communicable disease caused due to environmental factors like bad hygiene? | Chickenpox | Malaria | Dengue | Asbestosis | 1 |
| Sr.No | Question Body | Alternative 1 | Alternative 2 | Alternative 3 | Alternative 4 | Correct Alternative |
| 101 | Identify the true statement I. Critical illness policies are usually available for persons in the age group of 21 years to 65 years. II. The sum insured offered under these policies is quite low. | Only I is true | Only II is true | Both I and II are true | Both I and II are false | 1 |
| 102 | Which of the following is an example of package policy? Health plus life combi productShopkeepers policyHouseholder’s policy | Only I | I and II | II and III | I,II and III | 3 |
| 103 | What is the free look in period for health insurance policies | 15 days | 20 days | 30 days | 45 days | 1 |
| 104 | A Life Assurance Company paid the Treatment Costs to the Insured, During the Event of Hospitalisation of the Insured, During the Policy-Term. This is an Example of –. | Survival-Benefit Payments | Surrender-Value | Rider-Benefit | Conditional Assignment | 3 |
| 105 | Ms. Kavita purchases a Critical Illness (C.I.) Rider, along with, a Term Assurance Plan, from ABC Insurance Company. How Will, the Company ascertain the Claim for the Critical Illness (C.I.) Rider? Choose the Most Appropriate Option. | Claim will be ascertained, as per the Conditions, stipulated in the Policy. | Claim will be ascertained, based on the Dates, which are determined, at the Beginning of the Contract, it-self. | Claim will occur, when the Policy-Holder decides to cancel the Contract. | Claims will be ascertained, based on the Medical and Other Records, provided by the Policy-Holder, in Support of Her Claim. | 4 |
| 106 | Identify the true statement Health plus life combi products are jointly designed by the two insurers and marketed through the distribution channels of both insurersFor health plus life combi products, the claims are handled by the insurers jointly | Only I is true | Only II is true | Both I and II are true | Both I and II are false | 1 |
| 107 | What are the benefit payout provided under ‘Critical Illness cover’? | Actual medical expenses incurred due to hospitalization | A fixed sum per day for the period of hospitalization | Payout on occurrence of a pre-defined critical illness like heart attack, stroke, cancer etc | All of the above | 3 |
| 108 | Hospital daily cash policy provides towards benefits: I. Incidental expenses Expenses not payable under the indemnity policy Expenses non payable under Co-pay | Only I | I and II | II and III | I,II and III | 2 |
| 109 | ABC Insurance Company assumes a high interest rate in their premium calculations. This mean that: | Premium charged will be higher | Premium charged will be lower | Premium charged will remain unchanged | Premium charged will fluctuate wildly | 2 |
| 110 | Which of the following health insurance products is a fixed benefit plan for payout on occurrence of a predefined critical illness like heart attack, stroke, cancer etc.? | Indemnity cover | Fixed benefits cover | Critical Illness cover | All of the above | 3 |
| 111 | From the below given age proof documents, identify the one which is classified as non-standard by insurance companies. | School certificate | Identity card in case of defence personnel | Ration card | Certificate of baptism | 3 |
| Sr.No | Question Body | Alternative 1 | Alternative 2 | Alternative 3 | Alternative 4 | Correct Alternative |
| 112 | Out of following underwriting methods the process of underwriting is speedy but the premiums may be relatively higher except | Medical underwriting | Non medical underwriting | Numerical rating method | Group insurance | 1 |
| 113 | Group insurance is underwritten mainly on _________________. | Law of Uberrima fides | Law of Insurable interest | Law of averages | Law of mutual benefit | 3 |
| 114 | Which One of the Following Statements, is In-Correct, with Regard to Critical Illness (C.I.) Rider? Choose the Most Appropriate Option. | A Specified Amount is Paid, as per the Policy- Terms, in the Event of Diagnosis of a Critical Illness. | The Illness should have been covered in the List of Critical Illnesses, specified by the Insurance Company. | Critical Illness (C.I.) Rider is an Example of the Claims, that may occur, during the Policy- Term. | The Life Assurance Policy Contract Terminates, After the Rider-Payments are Made. | 4 |
| 115 | Third-Party Administrators (T.P.A.s) are Regulated, by Which of the Following Bodies? | Life Insurance Council and General Insurance Council, Jointly. | Insurance Regulatory and Development Authority of India (I.R.D.A.I.) | Insurance Brokers Association of India | Finance Ministry | 2 |
| 116 | For a claim to be processed, which of the following are most important documents? I. Documentary evidence of illness II. Payment made to the hospital Further advice for treatmentPayment proofs for implants | Only I and II | Only I and IV | I, II and III | I, II, III and IV | 3 |
| 117 | Which of the following statement/s is / are correct with regards to ‘claim processing and payment services’ provided by a TPA? TPAs normally receive advance money from the insurer for claim settlement. The TPA is expected to keep an account of the monies and provide periodic reconciliation of the amounts received from the insurance companyThe money can be used for purposes of payment of approved claims and providing other services to the customers | Only I | Only II | Both I and II | Neither I nor II | 1 |
| 118 | Hospital-Admission-Intimation can be made to an Insurance Company, through, Which of the Following Channels? | Fax | Calling the Call-Centre | Any of the Above. | 4 | |
| 119 | For a Health Insurance Claim to be Processed, Which of the Following, are the Most Important Documents? I. Documentary Evidence of Illness. Treatment-Provided.In-Patient Duration.Investigation-Reports. | Only, I and II. | Only, I and IV. | I, II, and IV. | I, II, III, and IV. | 4 |
| 120 | Identify the True Statement: Morbidity increases due to Various Adverse Factors, such as, Being Over-Weight or Under-Weight, Personal History of Certain Past and Present Diseases or Ailments.Morbidity decreases due to Certain Favourable Factors, like, Lower Age, a Healthy Life-Style, etc. | Only Statement-I is True. | Only Statement-II is True. | Both: Statement-I and Statement-II, are True. | Both: Statement-I and Statement-II, are False. | 3 |