IC38 Mock Test 2 for Life Insurance Agent Examination (50 Questions)

1. Rohit, a 35-year-old smoker, applies for a life insurance policy but does not disclose his smoking habit. After policy issuance, he dies due to a smoking-related illness. What will the insurer most likely do?

2. Amit purchases a life insurance policy and assigns it to a bank as collateral for a loan. Who will receive the claim amount in case of his death during the loan period?

3. A policyholder stops paying premium after 3 years in a 20-year endowment plan. The policy acquires paid-up value. What does this mean?

4. Meena buys a policy and realizes within 10 days that it does not meet her needs. What option does she have?

5. An insurer evaluates a proposal and charges extra premium due to higher risk. This process is known as:

6. A person buys life insurance mainly to protect his family against loss of income due to death. This reflects:

7. A policyholder nominates his wife but later assigns the policy to a bank. Who has the primary right over policy benefits?

8. A term insurance policyholder survives the policy term. What benefit will he receive?

9. A person wants both insurance protection and market-linked returns. Which product is most suitable?

10. A claim is payable only if all policy conditions are met and risk is covered. This reflects which principle?

11. A policyholder fails to pay premium within grace period. What is the status of policy?

12. A person takes multiple policies on his own life. Which principle allows this?

13. A nominee receives claim amount but is not the legal heir. What is his role?

14. An insured dies within 2 years of policy issuance. Insurer investigates details. This is known as:

15. A policyholder takes a loan against his policy. Which condition must be met?

16. A person hides his medical history while buying policy. Later claim arises. What will insurer check?

17. A life insurance contract differs from general insurance because:

18. A person wants lifelong coverage. Which policy is suitable?

19. A policyholder wants periodic returns during policy term. Which plan suits him?

20. A policyholder dies and nominee submits incomplete documents. What will insurer do?

21. A person buys insurance on spouse’s life. What is required?

22. A policyholder delays premium but pays within grace period. Risk cover is:

23. A policyholder cancels policy after long duration. He receives:

24. A life insurance contract is valid because it is:

25. A policyholder wants maximum protection at low cost. Best option:

26. A rider is added to policy. What is its purpose?

27. A policyholder survives policy term in endowment plan. He gets:

28. A claim is settled after verification of documents. This process ensures:

29. A policyholder changes nominee. This is done through:

30. A policyholder revives lapsed policy. What is required?

31. A person buys insurance for uncertain event. This is:

32. A policyholder receives bonus in participating policy. Bonus depends on:

33. A life insurance policy is a contract between:

34. A policyholder wants flexibility in investment. Best option:

35. A claim is denied due to false information. Which principle applies?

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

37. A person buys policy and assigns it absolutely. Ownership goes to:

38. A policyholder dies after maturity. Which benefit applies?

39. A policyholder wants both saving and insurance. Best option:

40. A policyholder delays claim intimation. Insurer may:

41. A proposal is accepted. Contract is formed when:

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

43. A policyholder wants guaranteed return. Best option:

44. A policyholder increases sum assured mid-term. This is done by:

45. A policyholder dies. Claim is paid to:

46. A policyholder stops premium after acquiring paid-up value. Policy becomes:

47. A policyholder takes multiple riders. Purpose is:

48. A policyholder wants long-term wealth + insurance. Best option:

49. A policyholder provides all correct information. This follows:

50. A life insurance contract provides: