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

1. Which of the following laws affect the working of an insurance agent?

  • The Insurance Act
  • The Contract Act
  • The Income Tax Act
  • All the three mentioned above *

2. A person is an insurance agent because of

  • the nature of his duties *
  • his designation
  • the training given to him
  • all the three mentioned above

3. A person is an insurance agent because of

  • the licence given to him
  • his knowledge
  • his duties *
  • his salary

4. Which of the following statements is true?

  • Anybody can become an insurance agent
  • Some people will not be allowed to become insurance agents *
  • Neither of the above statements is true
  • Both the above statements are correct

5. Which of the following statements is true?

  • An agent must look after the interests of the insurer
  • An agent must look after the interests of the proposer
  • Neither of the two statements is true
  • Both the above statements are correct *

6. Which of the following statements is true?

  • The functions of an agent are the same, whichever insurer he is working for
  • The functions of an agent differ according to the insurer he is working for *
  • The commission payable to an agent is determined by the IRDA
  • All the above statements are true

7. Aa licence for insurance agency will not be given unless the person

  • has passed an examination prescribed by the IRDA
  • is 21 years of age
  • has undergone training
  • satisfies all the above conditions *

8. A licence for insurance agency will not be given unless the person

  • is recommended by an insurer *
  • is a graduate
  • is a resident of the town where the insurer has an office
  • satisfies all the above conditions

9. A licence for insurance agency will be given to a person who

  • is recommended by an insurer *
  • has a master’s degree
  • is 45 years of age
  • satisfies all the above conditions

10. Licences for working as insurance agents are given to

  • individuals
  • companies
  • cooperative societies
  • all the three *

11. Which of these persons will not be given a licence to work as an insurance agent?

  • A person with a criminal record *
  • A corporate insurance executive
  • An employee of an insurance company
  • All the three mentioned above

12. Which of the following statements is correct?

  • A broker is an insurance agent
  • A specified person is an insurance agent
  • A corporate insurance executive can work for more than one life insurer
  • None of the above statements are correct *

13. Which of the following statements is correct?

  • An insurance agent has fixed working hours
  • An insurance agent has to mark his attendance in office every day
  • An insurance agent works according to his schedule *
  • An insurance agent cannot do any other work

14. Which of the following statements is true?

  • An insurance agent is a full time employee of the insurer
  • An insurance agent is a part time employee of an insurer
  • An insurance agent is not an employee of an insurer *
  • An insurance agent is not allowed to have any other employment

15. Which of the following statements is true?

  • A life insurance agent cannot represent a mutual fund
  • A life insurance agent cannot sell small savings schemes
  • A life insurance agent cannot be a sharebroker
  • All the three statements are wrong *

16. Which of the following statements is true?

  • An insurance agent is paid a salary every month
  • Commissions will stop as soon as an agent reaches 65 years of age
  • Commissions paid by different insurers are the same
  • Commissions may continue to be paid to the heirs, after the death of the agent *

17. A life insurance agent should

  • persuade every prospect to buy a life insurance policy
  • advise the prospect about the best financial arrangement for his situation *
  • say that life insurance is better than all other avenues for investment
  • say that life insurance is meant for young people only

18. A life insurance agent should

  • be aware of the plus and minus points of all financial instruments
  • know the benefits of all life insurance plans
  • understand how the income tax laws apply to a prospect
  • know all the three above *

19. Which of the following statements is not correct?

  • An agent should be able to suggest a total financial package for the prospect
  • An agent should be an expert only with regard to life insurance *
  • An agent should be up-to-date on the tax laws
  • An agent should be aware of the IRDA regulations

20. Which of the following statements is not correct?

  • A life insurance agent should carry the literature with him
  • A life insurance agent should carry his licence with him always
  • A life insurance agent should not appear shabby
  • All the above statements are correct *

21. Which of the following statements is not correct?

  • Life insurance does not meet the needs of all people always
  • Life insurance is not better than all other investments
  • Tax advantage is not the best reason for buying life insurance
  • All the above statements are correct *

22. If a person does not have an insurance agent’s licence, he cannot

  • procure or solicit insurance business
  • work for an insurance company
  • be paid commission on the premium under policies procured by him *
  • advise persons on the best plans of insurance

23. When is the job of a life insurance agent over?

  • As soon as the policy is issued
  • When the claim arises under the policy
  • When the claim is paid under the policy
  • It is not over as long as the policyholder or any member of his family is alive *

24. When a policy lapses, it can be inferred that

  • The agent has not been in touch with the policyholder
  • The agent had not explained the benefits of insurance properly
  • The agent had failed in his duties
  • All of the above *

25. A good life insurance agent must have

  • knowledge of the benefits under the various plans of insurance
  • knowledge of the other schemes where the prospect can put his moneys
  • knowledge of the office procedures
  • all of the above *

26. Knowledge of a plan of insurance includes

  • details about the benefits available under that plan
  • availability of similar plans from competitors
  • implications of the relevant tax laws
  • all of the above *

27. State which one of the following statements is correct

  • Life insurance is the best savings scheme for all persons
  • Life insurance is the best investment scheme for young persons
  • Both the statements above are correct
  • Both the statements above are wrong *

28. State which one of the following statements is correct

  • Some people have no need for life insurance
  • Some people buy life insurance only for tax benefits
  • Both the statements above are correct *
  • Both the statements above are wrong

29.State which one of the following statements is correct

  • An agent’s job is to sell life insurance to every person
  • An agent’s job is to assist in claim settlement *
  • Both the statements above are correct
  • Both the statements above are wrong

30. State which one of the following statements is correct

  • An agent has to ensure that nominations are changed whenever necessary
  • An agent is the agent of the proposer / policyholder
  • Both the statements above are correct *
  • Both the statements above are wrong

31. State which one of the following statements is correct

  • There are plenty of instruments available for savings and investments *
  • The best insurance policy is the one with the lowest premium rates
  • Both the statements above are correct
  • Both the statements above are wrong

32. State which one of the following statements is correct

  • An agent should not admit that he does not have a particular information
  • An agent cannot know everything that the proposer wants to know *
  • Both the statements above are correct
  • Both the statements above are wrong

34. State which one of the following statements is correct

  • Ethical behaviour leads to improved business and earnings
  • Ethical behaviour is automatic when the policyholder’s interest are kept in mind
  • Both the statements above are correct *
  • Both the statements above are wrong

35. State which one of the following statements is correct

  • Ethical behaviour is prescribed in the irda’s code of conduct
  • Ethical behaviour is automatic when the policyholder’s interest are kept in mind
  • Both the statements above are correct *
  • Both the statements above are wrong

36. State which one of the following statements is correct

  • Running down other insurance companies is not wrong
  • The agent has to ensure that no extra is charged by the underwriter
  • Both the statements above are correct
  • Both the statements above are wrong *

37. State which one of the following statements is correct

  • The agent is responsible if there has been suppression of material facts in a case
  • Unethical behaviour affects the reputation of the agent and the insurer
  • Both the statements above are correct *
  • Both the statements above are wrong

38. State which one of the following statements is correct

  • Unethical behaviour can affect the settlement of the claim, if it is early *
  • Ethical behaviour is beneficial to the policyholder, but not to the agent
  • Both the statements above are correct
  • Both the statements above are wrong

39. State which one of the following statements is correct

  • When vital information is not disclosed, the policyholder is benefited
  • When a claim is repudiated, the agent’s trustworthiness is affected *
  • Both the statements above are correct
  • Both the statements above are wrong

40. State which one of the following statements is correct

  • Ethics is compromised when the agent considers his earnings as important
  • The agent must give to the insurer all information he has about the life to be insured
  • Both the statements above are correct *
  • Both the statements above are wrong

41. It is wrong to terminate an existing policy and take out a fresh one if

  • the benefits under the new one are drastically different from the existing one
  • the earlier policy was taken without fully understanding the implications of the mwp act
  • the agent who had recommended the earlier policy is not active any more
  • it is done with a view to collect the higher first years commission *

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