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

1. Which one of the following statements is correct?

  • The policy is the basis of the insurance contract
  • The proposal is the basis of the insurance contract *
  • Both the statements above are correct
  • Both the statements above are wrong

2. Which one of the following statements is correct?

  • The proposal must be signed by a witness *
  • The answers in the proposal form should be written in English
  • Both the statements above are correct
  • Both the statements above are wrong

3. Which one of the following statements is correct?

  • The proposal must be signed in the language in which it is printed
  • The proposal can be signed in any language *
  • Both the statements above are correct
  • Both the statements above are wrong

4. 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 *

5. Which one of the following statements is correct?

  • The declaration in the proposal must be signed by the proposer *
  • Anybody can sign the proposal form on behalf of an illiterate proposer
  • Both the statements above are correct
  • Both the statements above are wrong

6. Which one of the following statements is correct?

  • The declaration in the proposal makes the principle of good faith operational *
  • The declaration in the proposal establishes insurable interest
  • Both the statements above are correct
  • Both the statements above are wrong

7. Which one of the following statements is correct?

  • The information in the proposal form is used for underwriting
  • Wrong information in the proposal form can nullify the insurance contract
  • Both the statements above are correct *
  • Both the statements above are wrong

8. If the proposal form is filled up in a language not known to the proposer

  • The person who filled up the form has to sign a declaration *
  • The agent has to declare that he had explained the questions and answers
  • All further correspondence must be only in that language
  • The life to be insured must be medically examined

9. Which one of the following statements is correct?

  • Some of the particulars in the proposal form have no bearing on underwriting *
  • The name of the proposed nominee must be mentioned in the proposal
  • Both the statements above are correct
  • Both the statements above are wrong

10. Which one of the following statements is correct?

  • The personal statement must be witnessed by the agent
  • Personal statements are required only in medical cases
  • Both the statements above are correct
  • Both the statements above are wrong *

11. Which one of the following statements is correct?

  • A copy of the proposal has to be given to the proposer *
  • A copy of the medical report has to be given to the proposer
  • Both the statements above are correct
  • Both the statements above are wrong

12. Which one of the following statements is correct?

  • A copy of the personal statement is to be given to the proposer
  • A copy of the proposal has to be given to the proposer
  • Both the statements above are correct *
  • Both the statements above are wrong

13. Which one of the following statements is correct?

  • The proposer will not be shown the agent’s report to the insurer
  • The proposer will not be shown the medical examiner’s report
  • Both the statements above are correct *
  • Both the statements above are wrong

14. Which of the following are confidential and will not be given to the proposer?

  • The medical report
  • The agents’ confidential report to the insurer
  • The medical referee’s advice
  • All of the above *

15. The proposal form and personal statement contain information relevant to determine

  • Level of risk
  • Moral hazard
  • Insurable interest
  • All the three *

16. Which one of the following statements is correct?

  • FPR is the evidence of the insurance contract
  • The medical report is the basis of the insurance contract
  • Both the statements above are correct
  • Both the statements above are wrong *

17. Which one of the following statements is correct?

  • The statements in the medical report form part of the insurance contract
  • The medical examiner depends upon the statements in the personal statement *
  • Both the statements above are correct
  • Both the statements above are wrong

18. Which one of the following statements is correct?

  • The FPR is proof of commencement of risk *
  • Risk does not commence till the policy is signed
  • Both the statements above are correct
  • Both the statements above are wrong

19. The FPR is issued when

  • The first premium is adjusted in the office *
  • The first premium is deposited in the office
  • The underwriter makes his decision
  • Consent of the proposer is received

20. The date of issue of the FPR indicates

  • The date when the risk effectively begins *
  • The date when the next premium falls due
  • The date when the policy will commence
  • None of the above

21. The date of commencement of the policy

  • Cannot be earlier than the date of issue of the FPR
  • Cannot be later than the date of issue of the FPR *
  • Will be the date on which the FPR is received by the proposer
  • Will be the date on which the underwriter decided to accept the proposal

22. The FPR is important

  • Till the policy is issued *
  • Till the claim is settled
  • As evidence of contract in case the original policy is lost
  • To know the terms of acceptance

23. Which one of the following statements is correct?

  • Once the FPR is issued, the policyholder cannot back out of the contract
  • Policies 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

24. Which one of the following statements is correct?

  • The FPR acknowledges premium for the first year of the policy
  • The second quarterly premium after commencement is called renewal premium *
  • Both the statements above are correct
  • Both the statements above are wrong

25. If a policyholder applies for cancellation of policy soon after he receives the FPR,

  • The full premium will be refunded
  • The full premium after some small deductions, will be refunded *
  • The policy will be treated as lapsed from the next premium due date
  • He will be debarred from taking any further insurance policies

26. If a policyholder has doubts about the policy he has applied for, he can

· Ask for cancellation within fifteen days of issue of the policy *

· Ask for cancellation and insist on refund of the full premium paid

· Wait for the next premium due before taking action

· Do nothing once the FPR is issued

27. Which one of the following statements is correct?

  • A renewal premium receipt is issued only when all previous dues are paid
  • It is not enough to preserve only the latest renewal premium receipt *
  • Both the statements above are correct
  • Both the statements above are wrong

28. Which one of the following statements is correct?

  • In the case of SSS policies, Renewal Premium receipts are issued
  • In the case of SSS policies, FPRs are issued *
  • Both the statements above are correct
  • Both the statements above are wrong

29. Which one of the following statements is correct?

  • In the case of SSS policies, the employer gets the Renewal Premium Receipts
  • In the case of SSS policies, FPRs are not issued
  • Both the statements above are correct
  • Both the statements above are wrong *

30. Which one of the following statements is correct?

  • In the event of a dispute, the policy document will be referred to *
  • In the event of a dispute, the underwriting decision in the file will be referred to
  • Both the statements above are correct
  • Both the statements above are wrong

31. Which one of the following statements is correct?

  • A policy is specific and relevant only to a particular contract *
  • A policy is a specimen, applicable to all cases under a specified plan
  • Both the statements above are correct
  • Both the statements above are wrong

32. Which one of the following statements is correct?

  • An endorsement may be placed on the policy at the very beginning
  • The nomination may be made later by an endorsement
  • Both the statements above are correct *
  • Both the statements above are wrong

33. Which one of the following statements is correct?

  • The Schedule of the policy will be changed when there is a change in plan
  • The change in terms will be made by endorsements *
  • Both the statements above are correct
  • Both the statements above are wrong

34. Which one of the following statements is correct?

  • The Schedule of a policy is not altered after the policy is issued
  • Changes in the terms of the policy are made through endorsements
  • Both the statements above are correct *
  • Both the statements above are wrong

35. Which one of the following statements is correct?

  • The amount of vested bonus can be seen from an endorsement on the policy
  • When a policy is converted, an endorsement is made on the policy *
  • Both the statements above are correct
  • Both the statements above are wrong

36. Which one of the following statements is correct?

  • IRDA has prescribed proposal forms for all insurers
  • Renewal premium cannot be paid without the renewal notice
  • Both the statements above are correct
  • Both the statements above are wrong *

37. 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

38. Which one of the following statements is correct?

  • If policy document is lost, the insurance contract becomes void
  • The family history appears in the personal statement *
  • Both the statements above are correct
  • Both the statements above are wrong

39. Which one of the following statements is correct?

  • FPR is a cash receipt. *
  • Renewal premium cannot be paid without the renewal notice
  • Both the statements above are correct
  • Both the statements above are wrong

40. Which one of the following statements is correct?

  • Clauses modify the conditions in the policy.
  • Endorsements modify the conditions in the policy.
  • Both the statements above are correct *
  • Both the statements above are wrong

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