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

1. A plan of insurance is said to be different from another if

• the Sum Assured is different
• the age of the life to be insured is different
• the date of commencement of policy is different
• the conditions when the Sum Assured becomes payable are different *

2. A plan of insurance is said to be different from another if

• the mode of payment of premium is different
• the amount of premium is different
• the conditions for payment of Sum Assured are different *
• the date of maturity is different

3. A plan of insurance is said to be different from another if

• the date of maturity is different
• the date of commencement of risk is different
• the underwriter decides to charge extra premium in one case
• the conditions when the Sum Assured becomes payable are different *

4. Which one of the following statements is correct?

• Every plan of insurance is a combination of two basic plans *
• The name given to a plan indicates the benefits available under the plan
• Both the statements above are correct
• Both the statement s above are wrong

5. Which one of the following statements is correct?

• Plans of insurance can be compared by reading the names given to the plans
• Plans of insurance can be compared by comparing the premium rates
• Both the statements above are correct
• Both the statements above are wrong *

6. Which one of the following statements is correct?

• A whole life plan is basically a term insurance plan *
• A Money Back plan is basically a Pure Endowment plan
• Both the statements above are correct
• Both the statements above are wrong

7. Which one of the following statements is correct?

• A Marriage Endowment Policy is taken on the life of one’s daughter
• A Children’s deferred insurance policy is taken on the life of one’s child *
• Both the statements above are correct
• Both the statements above are wrong

8. Which one of the following statements is correct?

• A Marriage Endowment policy insures the father and daughter together
• A term insurance plan can be for a long period *
• Both the statements above are correct
• Both the statements above are wrong

9. Which one of the following statements is correct?

• The Sum Assured under some policies increase every year
• The Sum Assured under some policies reduce every year
• Both the statements above are correct *
• Both the statements above are wrong

10. Which one of the following statements is incorrect?

• The SA payable on death can be more than the SA payable on maturity
• The SA payable on maturity can be more than the SA payable on death
• Both the statements above are correct *
• Both the statement above are wrong

11. Which one of the following statements is correct?

• The SA is always payable immediately on death or survival
• The SA payable on death may be paid long after the death of the insured *
• Both the statements above are correct
• Both the statements above are wrong

12. Which one of the following statements is correct?

• The SA is always payable in a lump sum
• The SA is always payable in instalments
• The SA is always payable in a lump sum unless asked for otherwise
• All the statements above are wrong *

13. Which one of the following statements is correct?

• There is no difference between a term assurance plan and a whole life plan
• A whole life plan is a term assurance plan with an indefinite term *
• Both the statements above are wrong
• Both the statements above are correct

14. Which one of the following statements is correct?

• In a limited payment policy, there is a maximum limit to the SA
• In a limited payment policy, there is a maximum limit to the term
• Both the statements above are wrong *
• Both the statements above are correct

15. Which one of the following statements is correct?

• In a limited payment policy, the premium is paid as long as the policy is in force.
• In a limited payment policy, the premium stops before the end of the term *
• Both the statements above are correct
• Both the statements above are wrong

16. For the same age and SA, the premium under an Ordinary Whole Life policy

• will be more than in a Limited Payment Whole Life policy
• will be less than in a Limited Payment Whole Life policy *
• will be the same as in a Limited Payment Whole Life policy
• can be more, less or the same as in a Limited Payment Whole Life policy

17. For the same age, SA and term, the premium under an Endowment policy

• will be the same as in a Limited Payment Endowment policy
• will be more than in a Limited Payment Endowment policy
• will be less than in a Limited Payment Endowment policy *
• can be same, more or less than in a Limited payment Endowment policy

18. For the same age and benefits, the premium under a Limited Payment policy

• will be more than in a non-limited plan policy *
• will be less than in non-limited plan policy
• will be the same as in a non-limited plan policy
• may be more, less or same as in a non-limited plan policy

19. Limited Payment plan policies may be preferred by persons

• whose careers are likely to be short *
• who are young and have just started their careers
• who have large families
• who are very wealthy

20. Limited Payment plan policies may be preferred by persons

• who are not first class lives
• who are in their best of health
• who careers have just begun
• who do not expect to be in active employment for long *

21. Which one of the following statements is correct?

• The Educational Annuity policy is an annuity policy
• The Educational Annuity policy is meant for persons having young children
• Both the statements above are wrong *
• Both the statements above are correct

22. Which one of the following statements is correct?

• Any policy which promises a payment on a fixed date is an Endowment policy
• If the SA increases every year, it is a participating policy
• Both the statements above are correct
• Both the statements above are wrong *

23. Which one of the following statements is correct?

• Only participating policies are entitled to the benefit of bonus *
• A bonus is the return of additional premium paid by a participating policy
• Both the statements above are correct
• Both the statements above are wrong

24. Which one of the following statements is correct?

• In a convertible plan, the insurer can refuse the conversion on medical grounds
• In a convertible plan the conversion is done on the request of the policyholder *
• Both the statements above are correct
• Both the statements above are wrong

25. Which one of the following statements is correct?

• Convertible plans allow Whole Life plans to be altered to Endowment plans *
• The option of conversion can be exercised whenever the policyholder chooses to
• Both the statements above are wrong
• Both the statements above are correct

26. Which one of the following statements is correct?

• If the option of conversion is not exercised, the policy will come to an end
• If the option of conversion is not exercised, the policy will continue as before *
• Both the statements above are wrong
• Both the statements above are correct

27. Which one of the following statements is correct?

• A conversion becomes effective when the policyholder exercises the option *
• A conversion option is subject to the insured person being in good health
• Both the statements above are wrong
• Both the statements above are correct

28. Which one of the following statements is correct?

• Convertible plan policies do not participate in bonuses
• Money Back policies are not convertible plan policies *
• Both the statements above are correct
• Both the statements above are wrong

29. Which one of the following statements is correct?

• A joint life policy may cover two brothers under one policy
• A joint life policy may cover a married couple under one policy *
• Both the above statements are wrong
• Both the statements above are correct

30. Which one of the following statements is correct?

• A joint life policy may cover partners in business under one policy
• A joint life policy may cover a married couple under one policy
• Both the above statements are wrong
• Both the statements above are correct *

31. Which one of the following statements is correct?

• The premium of a joint life policy depends on the age of the older person
• The bonus on a joint life policy is calculated on double the SA
• Both the statements above are wrong *
• Both the statements above are correct

32. Which one of the following statements is correct?

• Double Endowment Policy has no maturity benefit
• The bonus on a joint life policy is calculated on double the S.A
• Both the statements above are correct
• Both the statements above are wrong *

33. Which one of the following statements is correct with regard to joint life policies?

• The premium is the total of the premiums for insuring the two persons separately
• The premium will be less than the cost for insuring the two persons separately *
• Both the above statements are wrong
• Both the above statements are correct

34. Which one of the following statements is true with regard to Children’s policies?

• They insure minor children *
• They insure only school going children
• Both the above statements are correct
• Both the above statements are wrong

35 Which one of the following statements is true with regard to Children’s policies?

• Risk cover begins on or after vesting date
• Risk cover begins immediately after the policy commences
• Both the statements above are wrong *
• Both the above statements are correct
  

36. Which one of the following statements is true with regard to Children’s policies?

· The insured child becomes the owner of the policy on vesting date *

· The insured child becomes the holder of the policy only when it is assigned

· Both the above statements are wrong

· Both the above statements are correct

37. Which one of the following statements is true with regard to Children’s policies?

• The deferred date is a policy anniversary
• The vesting date is a policy anniversary
• Both the above statements are correct *
• Both the above statements are wrong

38. Which one of the following statements is true with regard to Children’s policies?

• The policy vests at age 18 last birthday *
• The policy vests at age 18 next birthday
• The policy vests at age 18 nearest birthday
• All the statements above are correct

39. Which one of the following statements is true with regard to Children’s policies?

• Risk will commence on deferred date automatically *
• Risk will commence on deferred date after satisfactory medical examination
• Risk will commence on deferred date with enhanced premium
• All the statements above are wrong

40. Which one of the following statements is true with regard to Children’s policies?

• On the deferred date, the insured child has to be at least 15 years old
• On the deferred date, the insured child need not be a major *
• On the deferred date, the policy must have been in force for at least ten years
• All the statements above are wrong

41. Which one of the following statements is true with regard to Children’s policies?

• An assignment has to be done on the deferred date
• An assignment has to be done on the vesting date
• Both the above statements are correct
• Both the above statements are wrong *

42. Which one of the following statements is true with regard to Children’s policies?

• The ownership of the policy changes on the deferred date
• The ownership of the policy changes on the vesting date *
• Both the above statements are wrong
• Both the above statements are correct.

43. Which one of the following statements is true with regard to Children’s policies?

• On vesting, the insured person has an option to change the term of the policy
• On vesting the insured person has an option to increase the SA
• Both the statements above are wrong *
• Both the statements above are correct

44. Which one of the following statements is correct?

• A Money Back type of policy is a variable insurance policy
• A convertible policy is a variable insurance policy
• Both the statements above are correct
• Both the statements above are wrong *

45. Which one of the following statements is correct?

• A variable insurance plan combines an insurance plan with an investment plan *
• A variable insurance policy guarantees a return or yield
• Both the statements above are correct
• Both the statements above are wrong

46. Which one of the following statements is correct?

• A variable insurance plan is good when investment conditions are favourable
• A variable insurance plan is good when the stock market is booming
• Both the statements above are correct *
• Both the statements above are wrong

47. Which one of the following statements is correct?

• Industrial Assurance is meant only for industrial workers
• Industrial Assurance is meant for people with low incomes *
• Both the statements above are correct
• Both the statements above are wrong

48. Which one of the following statements is correct?

• A Salary Savings Scheme policy is an industrial assurance plan
• A Salary Savings Scheme policy can be taken for a SA of Rs. 10 lakh *
• Both the statements above are correct
• Both the statements above are wrong

49. Which one of the following statements is correct?

• In industrial assurance the lapse rates tend to be high. *
• In Salary Savings Scheme policies, the lapse rates tend to be high
• Both the statements above are correct
• Both the statements above are wrong

50. Which one of the following statements is correct?

• In industrial assurance plans, the premium is deducted from the pay roll
• In Salary Savings Scheme plans, the premium is deducted from the pay roll *
• Both the statements above are correct
• Both the statements above are wrong

51. Who is benefited if a policy is under the Salary Savings Scheme?

• The policyholder
• The insurer
• The agent
• All the three above *

52. Which one of the following statements is correct?

• The premium under a Salary Savings Scheme policy is paid monthly
• The premium under a SSS policy is one twelfth the annual premium
• Both the statements above are correct *
• Both the statements above are wrong

53. Which one of the following statements is correct?

• In a SSS policy, the policyholder has to ensure that premium is paid *
• In a SSS policy, the responsibility to pay premium is with the employer
• Both the statements above are correct
• Both the statements above are wrong