IC 38 Life Mock Test 4 for Insurance Agent Exam (50 Tricky Q&A)

1. A policyholder intentionally understates his age at the time of proposal. After his death, insurer discovers the discrepancy. What is the correct action?

2. A proposer discloses all facts except a minor illness he believed irrelevant. Later claim arises from that illness. What will insurer evaluate?

3. In life insurance, indemnity principle strictly applies. State True or False.

4. A policyholder assigns policy to a bank and later repays the loan fully but does not reassign policy. On death, who receives claim?

5. A policyholder takes multiple policies and dies. One insurer discovers fraud, others do not. What happens?

6. A person buys insurance on a friend without financial dependency. Contract is:

7. A policyholder survives money-back policy but dies before maturity. What is payable?

8. Nominee always becomes absolute owner of claim amount.

9. A ULIP policyholder shifts funds frequently based on market rumors. What risk is involved?

10. A policyholder delays revival for many years. Insurer may require:

11. A claim arises after policy lapse but within revival period (not revived). What happens?

12. A policyholder intentionally damages documents to delay claim. This is:

13. Assignment cancels nomination rights.

14. A policyholder increases sum assured without medical disclosure. Risk for insurer:

15. A term policyholder survives policy term and expects return. Insurer will:

16. A policyholder dies due to excluded condition. What happens?

17. A policyholder provides wrong income details. This affects:

18. Insurable interest must exist at claim stage in life insurance.

19. A policyholder selects multiple riders but fails to pay additional premium. Result:

20. A policyholder dies after surrendering policy. What is payable?

21. A policyholder delays claim intimation but provides valid reason. Insurer:

22. A policyholder buys insurance for speculation. Contract is:

23. True/False: Paid-up policy continues with reduced benefits.

24. A policyholder dies after maturity benefit paid. Claim payable:

25. A policyholder chooses endowment but expects market-linked return. Risk:

26. A policyholder provides complete information. Principle followed:

27. A claim arises within contestability period. Insurer may:

28. True/False: Insurance spreads risk across many individuals.

29. A policyholder wants guaranteed returns with protection. Best option:

30. A policyholder misstates age intentionally. This is:

31. A policyholder chooses high sum assured with low income. Risk:

32. A policyholder dies before paying first premium. Contract status:

33. True/False: Bonus depends on insurer profits.

34. A policyholder revives policy after long gap. Insurer risk:

35. A policyholder cancels policy during free-look period. Refund includes:

36. A claim is rejected due to fraud. Principle violated:

37. True/False: Term insurance is cheapest form of life insurance.

38. A policyholder chooses ULIP but avoids risk. Mismatch is:

39. A policyholder assigns policy absolutely. Nominee role becomes:

40. A policyholder dies due to undisclosed habit. Claim likely:

41. A policyholder pays premium regularly. Policy remains:

42. A policyholder buys policy without understanding terms. Risk:

43. True/False: Life insurance provides fixed benefit, not indemnity.

44. A policyholder delays premium beyond grace. Policy becomes:

45. A policyholder chooses rider for additional coverage. Purpose:

46. A policyholder hides critical illness. Claim outcome:

47. A policyholder wants maximum protection. Best option:

48. True/False: Insurance eliminates uncertainty completely.

49. A policyholder selects wrong product due to agent advice. Issue:

50. A life insurance contract ensures: