Practice question and answer exam for LIC agent | Question Bank with answer of LIC Exam (Section A)

1. State which one of the following statements is correct?

• Every insurer in India has to comply with the Insurance Act *
• Every insurer has to comply with the provisions of the IRDA Act
• Both the statements above are correct
• Both the statements above are wrong

2. The Insurance Act deals with

• Registration of insurers
• Investments of insurance funds
• Licensing of Agents
• All of the above *

3. The Insurance Association is

• A trade union of insurance employees
• A voluntary association of insurers to negotiate with the IRDA
• A body constituted by the IRDA Act
• None of the above *

4. The Insurance Association

• Conducts examination for agents
• Is constituted by the IRDA Act
• Is constituted by the Insurance Act *
• Is none of the above

5. State which one of the following statements is correct?

• It is an offence if an agent gives a rebate
• It is an offence if an insurer gives a rebate
• Both the statements above are correct *
• Both the statements above are wrong

6. Which of the following can a policyholder having a dispute with an insurer, approach?

• IRDA
• Ombudsman
• Consumers Redressal Forum
• Any of the above *

7. State which one of the following statements is correct?

• The Ombudsman is the final authority involving insurers
• The insurer is at liberty to reject the decisions of the Ombudsman
• Both the statements above are correct
• Both the statements above are wrong *

8. State which one of the following statements is correct?

• The Ombudsman’s authority is limited to claims matters only
• The Ombudsman is not a judicial authority *
• Both the statements above are correct
• Both the statements above are wrong

9. 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

10. State which one of the following statements is correct?

• The Ombudsman’s recommendations are not binding on the complainant
• Insurers have to comply, if the complainant accepts what the Ombudsman says
• Both the statements above are correct *
• Both the statements above are wrong

11 State which one of the following statements is correct?

• The Ombudsman’s award is binding on all parties
• The Ombudsman is like a judge appointed by the Chief Justice
• Both the statements above are correct
• Both the statements above are wrong *

12. State which one of the following statements is correct?

• Matters referred to the Ombudsman may not be decided for years
• The Ombudsman cannot modify the terms of acceptance of the proposal *
• Both the statements above are correct
• Both the statements above are wrong

13. Which of the following matters can be referred to the Ombudsman?

• A complaint that the extra charged is not reasonable
• Grievance against the decision of a consumer forum
• Dispute on the amount offered by the insurer to settle a claim *
• All of the above

14. Which of the following matters can be referred to the Ombudsman?

• Dispute on whether a premium had been paid in time or not
• Dispute on whether the policy should be treated lapsed or not
• Complaint that the enquiries being made are unjustified and delaying the claim
• All of the above *

15. Which of the following complaints would be heard by the Ombudsman?

• That the insurer is delaying the claim on the grounds of investigation
• That the premium was paid on time but accounted by the insurer late
• That the policy should not be treated as lapsed
• All of the above *

16. State which one of the following statements is correct?

• Life insurance policies provide savings in taxes *
• The income tax relief will be the same throughout the policy term
• Both the statements above are correct
• Both the statements above are wrong

17. State which one of the following statements is correct?

• The surrender value is not treated as income
• The claim amount is not treated as income
• Both the statements above are correct *
• Both the statements above are wrong

18. State which one of the following statements is correct?

• Tax benefits are part of policy conditions.
• Tax benefits available in the first year of the policy, do not change thereafter
• Both the statements above are correct
• Both the statements above are wrong *

19. State which one of the following statements is correct?

• Tax benefits can be promised while selling the policy
• The tax benefits may be changed at any time through legislation *
• Both the statements above are correct
• Both the statements above are wrong

20 State which one of the following statements is correct?

• A Consumers Forum is set up exclusively for insurance matters
• There is no appeal against the decision of the Consumer Forum
• Both the statements above are correct
• Both the statements above are wrong *

21. State which one of the following statements is correct?

• The Consumer Forum can summon witnesses *
• The Ombudsman can summon witnesses
• Both the statements above are correct
• Both the statements above are wrong

22. State which one of the following statements is correct?

• The income tax privileges for insurance are not guaranteed
• Income tax provisions on rebate can change any time
• Both the statements above are correct *
• Both the statements above are wrong

23. State which one of the following statements is correct?

• The tax provisions are the same for all kinds of savings
• The tax provisions are included in the constitution
• Both the statements above are correct
• Both the statements above are wrong *

24. State which one of the following statements is correct?

• Every agent has to do some business in the rural areas
• A rural area is defined in the Insurance Act
• Both the statements above are correct
• Both the statements above are wrong *

25. State which one of the following statements is correct?

• A rural area is defined in the IRDA Act
• A rural area is an area outside municipal limits
• Both the statements above are correct
• Both the statements above are wrong *

26. State which one of the following statements is correct?

• A rural area is defined in the Constitution of India
• Business in the rural areas can be done only by rural agents
• Both the statements above are correct
• Both the statements above are wrong *

27. State which one of the following statements is correct?

• A rural area is defined in the IRDA act
• A rural area is defined in the IRDA regulations *
• Both the statements above are correct
• Both the statements above are wrong

28. State which one of the following statements is correct?

• Agents are appointed separately to work in the rural sector
• Any agent can do business from the rural areas *
• Both the statements above are correct
• Both the statements above are wrong

29. State which one of the following statements is correct?

• The insurance act has stipulated that insurers must do minimum business in the rural areas
• The IRDA has stipulated the minimum business that is to be done in rural areas
• Both the statements above are correct *
• Both the statements above are wrong

30. State which one of the following statements is correct?

• The requirement of business from the rural areas increases every year
• The minimum requirement is in terms of number of policies
• Both the statements above are correct *
• Both the statements above are wrong

31. State which one of the following statements is correct?

• Every insurer has to do a minimum SA of business from the rural areas
• Every insurer has to do a minimum number of policies from the rural areas *
• Both the statements above are correct
• Both the statements above are wrong

32. State which one of the following statements is correct?

• The social sector is the same as the rural sector
• The social sector is an organised sector
• Both the statements above are correct
• Both the statements above are wrong *

33. State which one of the following statements is correct?

• The social sector consists of social workers
• The social sector includes backward classes *
• Both the statements above are correct
• Both the statements above are wrong

34. State which one of the following statements is correct?

• The social sector is only in the rural areas
• The social sector is only in the urban areas
• Both the statements above are correct
• Both the statements above are wrong *

35. State which one of the following statements is correct?

• The social sector is not only in the urban areas
• The social sector includes the unorganized sector
• Both the statements above are correct *
• Both the statements above are wrong

36. State which one of the following statements is correct?

• Micro insurance is meant for the rural sector only
• Micro insurance can be sold only by specially appointed agents
• Both the statements above are correct
• Both the statements above are wrong *

37. State which one of the following statements is correct?

• Life insurance agents 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

38 State which one of the following statements is correct?

• A family with 6 children can be given a micro insurance policy
• Health insurance covers can be provided under micro insurance *
• Both the statements above are correct
• Both the statements above are wrong

39. State which one of the following statements is correct?

• Special agents are appointed to sell micro insurance
• Commission for selling micro insurance is less than ordinary insurance
• Both the statements above are correct *
• Both the statements above are wrong

40. State which one of the following statements is correct?

• The term for life micro insurance policies is limited
• A person aged 45 can be given a life micro insurance policy
• Both the statements above are correct *
• Both the statements above are wrong