IC 38 Mock Test 3 – Life Insurance Agent (50 Advanced Level Q&A)

1. Ramesh, aged 45, applies for a life insurance policy but fails to disclose his diabetes history. After policy issuance, he dies due to complications arising from diabetes within one year. How is the insurer likely to respond?

2. A policyholder assigns his policy to a bank as collateral security. Later, he nominates his spouse. In case of death during the loan tenure, who has the primary right to claim proceeds?

3. Insurable interest in life insurance must exist only at the time of claim.

4. A policyholder stops paying premium after acquiring surrender value. The policy continues with reduced benefits. What is this condition called?

5. An insurer charges higher premium after medical examination reveals health risk. This process is best described as:

6. A nominee receives claim amount but is not the legal heir. What is the correct interpretation?

7. A policyholder buys multiple policies on his life. On death, all policies pay full sum assured. This is because life insurance is not based on:

8. A policyholder can change nomination multiple times during policy term.

9. A policyholder takes a loan against his policy. Which condition must be satisfied?

10. An early claim (within 2 years) triggers investigation. What is the main purpose?

11. A policyholder survives endowment policy term. What benefit is payable?

12. A proposer provides all accurate details at proposal stage. This reflects which principle?

13. Assignment transfers ownership of policy rights to another party. State True or False.

14. A policyholder fails to pay premium within grace period. What happens next?

15. A ULIP provides which combination of benefits?

16. A policyholder revives a lapsed policy. Which requirement is mandatory?

17. A claim is rejected due to misrepresentation of facts. Which principle is violated?

18. Term insurance provides both maturity and death benefit.

19. A policyholder wants lifelong coverage with no maturity benefit. Best option:

20. A policyholder adds accidental rider. What is the impact?

21. A proposal is accepted and premium paid. When is contract formed?

22. A policyholder cancels policy within free-look period. What will insurer do?

23. Nomination cancels assignment.

24. A policyholder dies after policy maturity. What is payable?

25. A policyholder chooses money-back policy. What feature is included?

26. A person buys insurance for uncertain future loss. This is:

27. A participating policy provides bonus based on:

28. Insurance contract is a legally enforceable agreement. (True/False)

29. A policyholder delays claim intimation. Insurer may:

30. A policyholder takes multiple riders. Purpose:

31. A life insurance contract provides fixed benefit. This differs from general insurance because of absence of:

32. A policyholder provides incorrect information unintentionally. This is:

33. Insurable interest must exist at inception in life insurance.

34. A policyholder increases sum assured via endorsement. This is:

35. A policyholder chooses endowment plan for savings. What is key feature?

36. A claim is settled after verifying documents. Purpose:

37. Paid-up policy provides full sum assured.

38. A policyholder wants maximum coverage at lowest premium. Best option:

39. A policyholder assigns policy absolutely. Who becomes owner?

40. A claim requires death certificate, policy document, and claim form. This ensures:

41. A policyholder regularly pays premium. Policy status remains:

42. A person buys insurance without insurable interest. Contract is:

43. Bonus is guaranteed in all policies. State True or False.

44. A policyholder chooses ULIP for flexibility. This involves:

45. A policyholder wants guaranteed returns. Best option:

46. A policyholder delays premium beyond grace period. Policy becomes:

47. A claim is denied due to non-disclosure. This reflects violation of:

48. A policyholder chooses rider for critical illness. Purpose:

49. Insurance spreads risk among many people. State True or False.

50. Life insurance primarily provides: