IC38 Mock Test for Insurance Agent (Non-Life)
IC38 Mock Test for Insurance Agent (Non-Life): The IC38 Exam seeks to create a common minimum knowledge benchmark for all persons who desire to work as insurance agent. The IC38 Exam is mandatory exam for insurance agent. In the following is IC38 Mock Test with answers, there are 25 Multiple Choice Questions (MCQs). There is No Negative marking. Practice MCQ for your exam preparation
IC38 Mock Test for Insurance Agent (Non-Life)
Q 1. In the olden days, Chinese traders kept their goods in different boats while sailing through treacherous waters. Analyse the reason-
[a] Chinese boats were small and they carried heavy goods
[b] It was the direction of the Chinese Government to distribute goods among multiple shipping companies so that there is equal distribution of business
[c] Chinese traders placed their goods in multiple boats because it provided insurance against total loss
[d] Chinese traders placed their goods in multiple boats because it was cheap
Show Answer
Correct Answer: [c] Chinese traders placed their goods in multiple boats because it provided insurance against total loss
Q 2. Who among the following in his or her occupation is likely to be exposed to accidental hazard? Choose the most appropriate option.
[a] Medical-Professional
[b] Tourist-Guide
[c] Demolition-Experts
[d] Marketing-Executive, Who is regularly on the Field.
Show Answer
Correct Answer: [c] Demolition-Experts
Q 3. If the same property is insured with more than one insurer, the principle of insurance implies is-
[a] Contribution
[b] Uberrima fides
[c] Subrogation
[d] Proximate cause
Show Answer
Correct Answer: [a] Contribution
Q 4. What does the First Premium Receipt (F.P.R.) signify?
[a] Free-Look Period has ended.
[b] It is the Evidence, that the Policy contract has begun
[c] Policy cannot be cancelled, Now.
[d] Policy has acquired a Certain Cash value
Show Answer
Correct Answer: [b] It is the Evidence, that the Policy contract has begun
Q 5. Choose the In-Correct, with respect to Judgement Method of Underwriting:
[a] Under this Method, Subjective Judgement is used
[b] This Method is especially used in Case of Complex Cases
[c] In this Method, the Company may seek Expert Opinion of Medical Doctor
[d] In this Method, the Underwriter assign Positive or Negative Rating-Points to the Adverse Factors
Show Answer
Correct Answer: [d] In this Method, the Underwriter assign Positive or Negative Rating-Points to the Adverse Factors
Q 6. If, Mr. Ramesh, a 40-Years old individual, is perceived as a ‘Sub-Standard Risk’, by the Insurer, then which one of the following statements is True with respect to Risk-Acceptance by the Insurer?
[a] Risk will be Accepted at Ordinary rates
[b] Risk will be Accepted at lower rates
[c] Risk will be Accepted With an Extra, Over the Tabular Rate of Premium
[d] Risk will be declined
Show Answer
Correct Answer: [c] Risk will be Accepted With an Extra, Over the Tabular Rate of Premium
Q 7. Which one of the following claims is payable to the Assignee or Nominee only?
[a] Death-claim
[b] Maturity-claim
[c] Survival benefit
[d] Surrender value
Show Answer
Correct Answer: [a] Death-claim
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Q 8. If complex language is used to word which is in favour of the Insured and it has given rise to an Ambiguity, How will it generally be construed?
[a] In favour of the insured
[b] In favour of the insurer
[c] The policy will be declared void. and the Insurer will be asked to Return the Premium, With Interest, to the Insured
[d] The policy will be declared void. and the Insurer will be asked to Return the Premium without any Interest to the Insured
Show Answer
Correct Answer: [a] In favour of the insured
Q 9. Select the Correct Statement in reference to Grace- Period. Choose the most appropriate option.
[a] The Standard Length of the Grace-Period is 1 Month or 31 days
[b] The Standard Length of the Grace-Period is One Quarter.
[c] The Standard Length of the Grace-Period is One Week.
[d] The Standard Length of the Grace-Period is One Fort-night.
Show Answer
Correct Answer: [a] The Standard Length of the Grace-Period is 1 Month or 31 days
Q 10. An agent should not recommend insurance in certain situations. One of the such situation can be-
[a] Where the prospect is interested in reducing the cost of handling the risk.
[b] When the risk involved is non-insurable
[c] Where the risk involved can be managed by means other than insurance.
[d] All of the above
Show Answer
Correct Answer: [c] Where the risk involved can be managed by means other than insurance.
Q 11. In which if following kind of policy, the customer has choice to continue with same insurer or to switch to another insurer?
[a] Term Insurance Policy
[b] Motor Third Party Policy
[c] Endowment Policy
[d] Unit Linked Insurance Policy
Show Answer
Correct Answer: [b] Motor Third Party Policy
Q 12. Full form of IGMS is-
[a] Insurance Grievance Management System
[b] Integrated Grievance Management System
[c] IRDAI Grievance Management System
[d] Initial Grievance Management System
Show Answer
Correct Answer: [b] Integrated Grievance Management System
Q 13. Insurance Agents, who hold the licence to act as agents for both: Life Insurer, General Insurer, Health Insurer, and Each of the Two Mono-Line Insurers, are called as-
[a] Brokers
[b] Corporate Agents
[c] Third Party Administrators (TPA)
[d] Composite Insurance Agents
Show Answer
Correct Answer: [d] Composite Insurance Agents
Q 14. An agent’s appointment can be cancelled / suspended if he…..
[a] Discloses material facts in the application
[b] Violates terms of policy
[c] Fails to retain the clients on renewal of the policy
[d] Furnishes wrong/ false information
Show Answer
Correct Answer: [d] Furnishes wrong/ false information
Q 15. Which one of the following statement w.r.t. Central Government Health Scheme (CGHS) is FALSE?
[a] The Central Government Health Scheme (CGHS), which was introduced in 1954
[b] The CGHS is only for the central government employees including pensioner and their family member working in civilian jobs
[c] It aims to provide comprehensive medical care to employees and their families and is fully funded by the employer (central government)
[d] The services are provided through CGHS’s own dispensaries, polyclinics and empanelled private hospitals.
Show Answer
Correct Answer: [c] It aims to provide comprehensive medical care to employees and their families and is fully funded by the employer
Q 16. Which inscription is found in the board room of a non-life insurance company?
[a] Insurance is MUST.
[b] Pay if you can, repudiate if you must.
[c] We always pay our claim.
[d] Honesty is the best policy.
Show Answer
Correct Answer: [b] Pay if you can, repudiate if you must.
Q 17. Which section of the Income Tax Act allows individuals to deduct premiums paid towards Health Insurance from taxable income?
[a] Section 80 B
[b] Section 80 C
[c] Section 80 D
[d] Section 80 E
Show Answer
Correct Answer: [c] Section 80 D
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Q 18. What is the Free Look In period for health insurance policies?
[a] 7 Days
[b] 15 Days
[c] 30 Days
[d] None of the above
Show Answer
Correct Answer: [b] 15 Days
Q 19. What information does the insurer consider to decide to accept a proposal?
[a] Details of the insured
[b] Details of the subject matter
[c] Previous history of insurance and claim experience
[d] All of the above
Show Answer
Correct Answer: [d] All of the above
Q 20. What is an endorsement in insurance policy?
[a] A document attached to the policy that covers all perils and exclusions
[b] A document that specifies the standard terms and conditions of the policy
[c] A document that sets out changes or amendments to the policy
[d] A document that provides additional coverage to the policy
Show Answer
Correct Answer: [c] A document that sets out changes or amendments to the policy
Q 21. What is the minimum size of a Group for which Group Health Insurance Policy can be issued?
[a] 2
[b] 7
[c] 10
[d] 20
Show Answer
Correct Answer: [b] 7
Q 22. What is the provision in case an insured has taken fixed benefits health policies from multiple insurer?
[a] The insurance companies will split the claim payment evenly
[b] Each insurance company will make claim payments independently according to their policy’s terms and conditions
[c] The insured must choose one policy to use for all claim payments
[d] The insured must provide proof of which policy they want to use for each claim
Show Answer
Correct Answer: [b] Each insurance company will make claim payments independently according to their policy’s terms and conditions
Q 23. What is co-payment in health insurance?
[a] The portion of the claim amount that the policyholder/insured has to bear
[b] A separate policy taken by the policyholder to cover specific diseases
[c] The percentage of the premium paid by the policyholder/insured
[d] The amount deducted from the Sum Insured after every claim
Show Answer
Correct Answer: [a] The portion of the claim amount that the policyholder/insured has to bear
Q 24. What is top-up cover in health insurance?
[a] A policy that provides covers for pre-existing conditions only
[b] A policy that provides covers for only day-care procedures
[c] A policy that provides covers for high sums insured over and above a specified amount
[d] A policy that covers only accidents
Show Answer
Correct Answer: [c] A policy that provides covers for high sums insured over and above a specified amount
Q 25. What is the proof required to process a claim in a fixed benefit insurance plan?
[a] Detailed bills and invoices of the treatment
[b] Proof of Hospitalization and coverage of ailment under the policy
[c] Doctor’s prescriptions and medical reports
[d] None of the above
Show Answer
Correct Answer: [b] Proof of Hospitalization and coverage of ailment under the policy
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