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

1. Which one of the following statements is correct?

  • In life insurance, the word ‘rider’ means the person taking part in horse races
  • In life insurance, the word ‘rider’ refers to additional clauses *
  • Both the statements above are correct
  • Both the statements above are wrong

2. Which one of the following statements is correct?

  • A rider modifies an existing condition in the policy
  • A rider supplements or adds to an existing condition in the policy *
  • Both the statements above are correct
  • Both the statements above are wrong

3. Which one of the following statements is correct?

  • Riders provide supplementary benefits to the basic plan *
  • No rider is allowed unless the underwriter agrees to the same
  • Both the statements above are correct.
  • Both the statements above are wrong.

4. Which one of the following statements is correct?

  • A premium waiver option is allowed as a rider *
  • The premium on all riders depend on the age of the insured person
  • Both the statements above are correct
  • Both the statements above are wrong

5. Which one of the following statements is correct?

  • The premium on a rider varies according to the basic plan
  • The premium on riders cannot exceed specified limits of the basic premium *
  • Both the statements above are correct
  • Both the statements above are wrong

6. Which one of the following statements is correct?

  • There is no death risk cover in an annuity
  • Though called an annuity, the payments may be paid every month
  • Both the statements above are correct *
  • Both the statements above are wrong

7. Which one of the following statements is correct?

  • An annuity is paid only to the person who takes out the annuity policy
  • An annuity is paid only till the death of the person taking out the annuity policy
  • Both the statements above are correct
  • Both the statements above are wrong *

8. Which one of the following statements is correct?

  • An annuity policy guarantees a pension *
  • An annuity policy is issued only after a medical examination
  • Both the statements above are correct
  • Both the statements above are wrong

9. Which one of the following statements is correct?

  • Under an annuity certain policy, the annuity stops after the ‘certain’ period
  • Under a deferred annuity policy, the annuity commences immediately
  • Both the statements above are correct
  • Both the statements above are wrong *

10. Which one of the following statements is correct?

  • An annuity can be taken only on a single life
  • In a life annuity, the risk of death is covered
  • Both the statements above are correct
  • Both the statements above are wrong *

11. Which one of the following statements is correct?

  • In a deferred annuity policy, the premium has to be paid in a lump sum
  • Annuities purchased during different years may all commence on the same date *
  • Both the statements above are correct
  • Both the statements above are wrong

12. Which one of the following statements is correct?

  • Physically handicapped persons may be given annuities at ordinary rates
  • The amount of annuity depends on the age at which the annuity commences
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • In group insurance, a single policy is issued covering many persons *
  • A master policy covers servants of a master
  • Both the statements above are correct
  • Both the statements above are wrong

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

  • In group insurance, there is only one proposal to insure many
  • In group insurance, there is only one policy covering many
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • In group insurance, the proposal is made by the employer *
  • In group insurance proposals are made by each of the insured
  • Both the statements above are correct
  • Both the statements above are wrong

16 State which one of the following statements is correct?

  • Group insurance covers a large numbers of persons in one policy
  • Group insurance is relatively cheaper than individual insurances
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • Salary Savings Schemes policies are Group Insurance policies
  • Group Insurance policies benefit only employees of big organisations
  • Both the statements above are correct
  • Both the statements above are wrong *

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

  • In Group insurance the premium changes every year *
  • In group insurance the premium is paid by the persons who are covered
  • Both the statements above are correct
  • Both the statements above are wrong

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

  • The members of a housing society can negotiate for a group insurance policy
  • A sports club can get a group policy for its members
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • A bank can take out a group policy for its account holders
  • A finance company can take out a group policy for those taking loans from it
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • The amount of cover in a group policy is chosen by individual members
  • The amount of cover for each member is fixed by the terms of the policy *
  • Both the statements above are correct
  • Both the statements above are wrong

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

  • A master policy is issued in a group insurance policy *
  • Each member in a group policy pays the premium directly to the insurer
  • Both the statements above are correct
  • Both the statements above are wrong

23. Which of the following is true for a group policy?

  • Copies of the master policy are given to all members by the insurer
  • The group has to be formed exclusively for the purpose of insurance
  • Entry into the scheme and exit out of it, is at the option of the members
  • The amount of the cover is determined by the scheme *

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

  • Group insurance business is growing faster than individual business
  • Group business is socially very relevant
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • A trade union can take out a group insurance policy for its members
  • The cover for an employee can be equal to his age multiplied by a fixed number
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • A group insurance contract is between the insurer and the insured persons
  • The extent of insurance cover is chosen by each individual member
  • Both the statements above are correct
  • Both the statements above are wrong *

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

  • The members covered by a group insurance policy changes every year
  • The amount of insurance for any member may change from year to year
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • Group Insurance is the same as Salary Savings Schemes
  • Premiums under some Group policies are paid by Governments *
  • Both the statements above are correct
  • Both the statements above are wrong

29. In what respect does Group Insurance differ from Salary Savings Schemes?

  • The person who pays the premium
  • Responsibility to pay the premium
  • Decision to take the policy
  • In all the above three respects *

30. In what ways does Group Insurance differ from Salary Savings Schemes?

  • Number of persons insured under a policy
  • Responsibility of employer
  • Issue of premium receipts
  • In all the above three respects *

31. In what ways does Group Insurance differ from Salary Savings Schemes?

  • Ownership of the policy
  • Mode of payment of premium
  • Parties to the contract
  • In all the above three respects *

32. Who amongst the following can take out a group insurance policy?

  • Office-goers who travel in the same compartment in the suburban train
  • A contractor who engages the same people every day on daily wages
  • A group of travelers on a package tour
  • Members of a toddy tappers association *

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

  • In group policies, the chance of adverse selection is low *
  • In group policies, every person is medically examined
  • Both the statements above are correct
  • Both the statements above are wrong

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

  • In group policies, each case is separately underwritten
  • In group policies, personal histories are not examined *
  • Both the statements above are correct
  • Both the statements above are wrong

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

  • Entry into and exit from group cover, is controlled by the terms of the policy
  • The extent of cover is not decided by the life to be insured
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • A group insurance cover is given only if there is a certain minimum number
  • A group policy is not granted if the group has been formed only to avail of cover
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • The cover in a group policy could depend on the ages of the lives insured
  • The cover could be a uniform flat rate for all employees of a certain category
  • Both the statements above are correct *
  • Both the statements above are wrong

38. Which of the following could be the basis of the cover in a group policy?

  • Amount of annual income
  • Level in the hierarchy
  • Age of the person
  • All the three above *

39. Which of the following could be the basis of the cover in a group policy?

  • Height of the life insured
  • Age of the life insured *
  • Size of the insured’s family
  • All the three above

40. Who pays for the premium in the group policy?

  • The insured persons only
  • The person who has the master policy only
  • Both the insured persons and policyholder jointly
  • Any one of the three ways above *

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

  • The amount of cover under the master policy does not change
  • The premium under the group policy is the same every year
  • Both the statements above are correct
  • Both the statements above are wrong *

42. Which of the factors below help to avoid adverse selection in group policies?

  • No option to choose quantum of insurance cover *
  • Minimum number to be included in the cover
  • Similarity in the nature of the jobs
  • All the above three factors

43. Which of the factors below help to avoid adverse selection in group policies?

· Reputation of the employer

· Records of the employer

· No option to choose entry or exit *

· All the above three factors

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

  • Group Superannuation polices provide pensions to retiring employees *
  • A Group Superannuation policy can be taken by a company for its mortgagees
  • Both the statements above are correct
  • Both the statements above are wrong

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

  • Group Gratuity policies require that trustees be appointed
  • Group Superannuation policies require that trustees be appointed
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • Trustees have to be appointed in all group policies
  • All group policies need approval of the Income Tax Department
  • Both the statements above are correct
  • Both the statements above are wrong *

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

  • Employers are required by law to take out Group Gratuity policies
  • Employers have different options to fund their pension liabilities *
  • Both the statements above are correct
  • Both the statements above are wrong

48 State which one of the following statements is correct?

  • Group policies help employers to avoid fluctuations in gratuity outgoes
  • Employees have less anxiety if employers have taken Group policies
  • Both the statements above are correct *
  • Both the statements above are wrong

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

  • Group policies are popular because of legal compulsions
  • Group policies give employees benefits better than legally required *
  • Both the statements above are correct
  • Both the statements above are wrong

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

  • The scope for group policies is limited by the requirements of the law
  • Group insurance policies can be tailor made to suit specific needs *
  • Both the statements above are correct
  • Both the statements above are wrong

51 State which one of the following statements is correct?

  • Members of a group will get certificates showing details of cover
  • Profit sharing, in group insurance, is worked on actuarial bases
  • Both the statements above are correct *
  • Both the statements above are wrong

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