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

1. What is meant by a Claim under an insurance policy?

  • Any demand made by the policyholder on the insurer
  • A demand to fulfill the policyholder’s obligations
  • A demand to fulfill the insurer’s obligations *
  • All the three above

2. When does a claim arise under an insurance policy?

  • Whenever the policyholder feels the need for money
  • When the insured events happen *
  • When a premium is not paid
  • Whenever any of the three things mentioned above happen

3. The insurer will not pay a claim unless

  • The event insured against, happens *
  • The policyholder himself makes a demand
  • The nominee makes a demand
  • When all the three things mentioned above happen

4. Which one of the following statements is correct?

  • A request for a loan is considered as a claim
  • A request for surrender of policy is considered a claim
  • Both the statements above are correct
  • Both the statements above are wrong *

5. Which one of the following statements is correct?

  • A claim will be paid as soon as the death of the insured is confirmed
  • An insurer makes enquiries to establish that death took place
  • Both the statements above are correct
  • Both the statements above are wrong *

6. Which one of the following statements is correct?

  • An insurer makes enquiries to establish the fact of death
  • The insurer makes enquiries to check facts stated in the proposal *
  • Both the statements above are correct
  • Both the statements above are wrong

7. Which one of the following statements is correct?

  • The insurer makes enquiries only in the case of death claims *
  • The insurer makes enquiries in the case of maturity claims also
  • Both the statements above are correct
  • Both the statements above are wrong

8. Which one of the following statements is correct?

  • The insurer makes enquiries in the case of all death claims
  • The insurer makes enquiries only in the case of early claims *
  • Both the statements above are correct
  • Both the statements above are wrong

9. Which one of the following statements is correct?

  • A death claim within two years of commencement is treated as an early claim
  • A death claim within two years of revival is treated as an early claim
  • Both the statements above are correct *
  • Both the statements above are wrong

10. Which one of the following statements is correct?

  • A death claim within two years of revival is treated as an early claim *
  • A death claim within two years of an alteration is treated as an early claim
  • Both the statements above are correct
  • Both the statements above are wrong

11. Which one of the following statements is correct?

  • The insurer waits for a demand before taking action in maturity claim cases
  • The insurer takes action in a death claim case after a demand is made on it *
  • Both the statements above are correct
  • Both the statements above are wrong

12. Which one of the following statements is correct?

  • Maturity claims are paid to policyholders
  • Maturity claims are paid to assignees
  • Both the statements above are correct *
  • Both the statements above are wrong

13. Which one of the following statements is correct?

  • Maturity claim cheques are paid to the trustees in a MWP Act case *
  • Maturity claim cheques are paid to the beneficiaries in a MWP Act case
  • Both the statements above are correct
  • Both the statements above are wrong

14. Which one of the following statements is correct?

  • Maturity claim cheques are paid to the policyholder in MWP Act cases
  • Maturity claim cheques are paid to the trustees in a MWP Act case *
  • Both the statements above are correct
  • Both the statements above are wrong

15. Which one of the following statements is correct?

  • The death claim is settled in favour of the nominee in MWP Act cases
  • The death claim is settled in favour of the trustee in MWP Act cases *
  • Both the statements above are correct
  • Both the statements above are wrong

16. Which one of the following statements is correct?

  • Maturity proceeds are paid to the nominee, if the policyholder dies earlier
  • Maturity proceeds are paid to the heirs, if the policyholder dies earlier *
  • Both the statements above are correct
  • Both the statements above are wrong

17. Which one of the following statements is correct?

  • No claim is paid unless the original policy is surrendered
  • Claim can be paid even without the original policy, if it is lost *
  • Both the statements above are correct
  • Both the statements above are wrong

18. Which one of the following statements is correct?

  • Claims may be paid on the basis of indemnity, if title is not established
  • Claims may be paid on the basis of indemnity, if original policy is lost
  • Both the statements above are correct *
  • Both the statements above are wrong

19. Which one of the following statements is correct?

  • The claim may be repudiated, if the age is found to be different
  • Insurer need not wait for formal death intimation *
  • Both the statements above are correct
  • Both the statements above are wrong

20. Before paying a claim, which of the following have to be verified?

  • Premiums paid till date
  • Balance of loan, if any
  • Title of claimant
  • All the three mentioned above *

21. Before paying a claim, which of the following have to be verified?

  • Age of the life insured *
  • Age of the nominee
  • Age of the assignee, if any
  • All of the above

22. Before paying a death claim, which of the following have to be verified?

  • Proof of death of life insured
  • Receipts of all premiums paid from commencement
  • Entitlement for accident benefits
  • All of the above *

23. Which one of the following statements is correct?

  • If a person is missing for seven years, the claim is called a death claim
  • A claim can be admitted if the life insured is not heard of for seven years
  • Both the statements above are correct *
  • Both the statements above are wrong

24. Which one of the following statements is correct?

  • In the case of a missing person, the claim arises from the date he is missing
  • In the case of a missing person, premiums have to be paid till court judgment *
  • Both the statements above are correct
  • Both the statements above are wrong

25. Which one of the following statements is correct?

  • Action is initiated by the insurer well before the date of maturity
  • The rightful claimant in the case of maturities is the policyholder or assignee
  • Both the statements above are correct *
  • Both the statements above are wrong

26. Which one of the following statements is correct?

  • All maturity claims are paid in one lump sum
  • All death claims are paid in one lump sum
  • Both the statements above are correct
  • Both the statements above are wrong *

27. Which one of the following statements is correct?

  • A maturity claim is finally settled on the date of maturity
  • A death claim, after admission, may be paid years later *
  • Both the statements above are correct
  • Both the statements above are wrong

28. Which one of the following statements is correct?

  • A claim may be paid in instalments only if there is a prior request
  • A maturity claim may be payable years after the date of maturity *
  • Both the statements above are correct
  • Both the statements above are wrong

29. Which one of the following statements is correct?

  • A survival benefit is settled like a maturity claim *
  • A survival benefit is paid to the nominee if the policyholder dies
  • Both the statements above are correct
  • Both the statements above are wrong

30. Which one of the following statements is correct, if trustee is not appointed?

  • A claim under the MWP Act policy will be paid to the Official Trustee *
  • A claim under the MWP Act policy will be paid to the beneficiaries
  • Both the statements above are correct
  • Both the statements above are wrong

31. Which one of the following statements is correct?

  • Survival benefits may be settled on indemnity basis, if original policy is lost
  • Survival benefits have to be endorsed on the policy *
  • Both the statements above are correct
  • Both the statements above are wrong

32. Which one of the following statements is correct?

  • If original policy is lost, duplicate policy is necessary for survival benefits *
  • If original policy is lost, duplicate policy is necessary for maturity payments
  • Both the statements above are correct
  • Both the statements above are wrong

33. Which one of the following statements is correct?

  • A policy reported to be lost, may actually have been assigned *
  • A policy has no value after the payment of survival benefits
  • Both the statements above are correct
  • Both the statements above are wrong

34. Which one of the following statements is correct?

  • No claim can be paid without either the original or the duplicate policy
  • No maturity claim can be paid without the life insured’s signature
  • Both the statements above are correct
  • Both the statements above are wrong *

35. Which one of the following statements is correct?

  • A survival benefit is paid only to the life insured
  • A death claim can be paid only to the nominee
  • Both the statements above are correct
  • Both the statements above are wrong *

36. In which of the following cases, is the maximum documents asked for?

  • Death claim *
  • Maturity claim
  • Survival benefits
  • Annuity cases

37. In which of the above cases, will the help of the agent be most useful?

  • Death claims *
  • Maturity claims
  • Survival benefits
  • Annuity cases

38. In which of the above cases, is the claimant likely to feel most anxious?

  • Death claim within two years *
  • Surrender cases
  • Applications for loans
  • Survival benefit cases

39. Why are enquiries made in the case of early claim?

  • To ensure that there is no misstatement of facts
  • To protect the interests of the community of policyholders
  • To protect the interests of the insurers
  • For all the above reasons *

40 Why are enquiries made in the case of early claims?

  • To confirm that the underwriting decision was not incorrect
  • To confirm the validity of the mortality table used
  • To check whether underwriting policies need change
  • For none of the above reasons *

41. Which one of the following statements is correct?

  • The insurer can initiate action even before a death claim intimation is received
  • A death claim intimation does not establish that the life insured has actually died
  • Both the statements above are correct *
  • Both the statements above are wrong

42. Which one of the following statements is correct?

  • Frauds are more likely in death claim cases than in maturity cases
  • If the life insured had died one month before maturity date, it is a death claim
  • Both the statements above are correct *
  • Both the statements above are wrong

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