Test Your IC 02 Practice of Life Insurance Mock Tests Knowledge in 5 Minutes

1. What is the shortest amount of time required before one can take a loan against their life insurance coverage?

A. 15 days B. 30 days C. 3 months D. 6 months

2. When an insurance company accepts a proposal at the 'Ordinary Rate' (O.R.), what does this indicate about the individual being insured?

A. The company issued a counter-offer B. Specific exclusions were added to the policy C. An extra premium was charged for higher risk D. The applicant is considered a standard or normal risk

3. Which professional is primarily responsible for preventing the insurance company from taking on too many high-risk individuals and losing money?

A. Actuary B. Auditor C. Underwriter D. Bank

4. Within the context of L.I.C., how is the "Agency Year" defined for a representative?

A. The standard accounting year from April to March B. The period from the date of appointment to the end of that specific month plus the next twelve months C. The calendar year from January to December D. The time between two policy anniversaries

5. What term is used to describe the action of telling an insurance firm to begin making regular payout installments to a client?

A. Vesting B. Annuitising C. Commutation D. Deferment

6. Regarding investigations into insurance claims, which of the following statements is accurate?

A. Investigations only happen for maturity claims B. Investigations only happen for death claims C. Investigations occur for both death and maturity claims D. Investigations are typically only conducted for death claims that happen within three year of the policy starting

7. What is the specific term for insurance claims that occur within the first two years of a policy's start or its revival?

A. Fast Claims B. Early Claims; 3 years C. Special Claims D. Free Claims

8. Under the Know Your Customer (KYC) rules, which of the following is NOT used specifically to prove a person's identity?

A. Identity proof B. Address proof C. Educational document proof D. Age and date of birth proof

9. What do you call the total process of evaluating all possible risks before deciding whether to provide insurance?

A. Acturization B. Arbitraging C. Hedging D. Underwriting

10. The core concept of insurance involves moving which of the following from the individual to the company?

A. Calamity B. Ownership C. Liability D. Risk