INSURANCE PRODUCT - MCQS - Study For Buddies

Thursday, June 17, 2021

INSURANCE PRODUCT - MCQS

T.Y B.COM
SEMESTER - 6

INSURANCE PRODUCT
(IP)
MCQS 

UNIT - 3 LIFE INSURANCE PRODUCTS

TERM LIFE POLICIES

1) Which policy is simplest and cheapest form of life insurance policy ?

(A) Term Life Policy 
(B) Whole Life Policy
(C) Endowment Insurance Policy 
(D) Annuities

2) Term insurance is also known as...............

(A) Property insurance 
(B) Life insurance
(C) Temporary insurance 
(D) None of the above

3) Which of the following is the type of term insurance policies ?

(A) Level benefit term insurance 
(B) Decreasing benefit term insurance
(C) Increasing benefit term insurance 
(D) All of the above

4) In which type of term insurance policy the coverage remains constant throughout the policy ?

(A) Level benefit term insurance 
(B) Decreasing benefit term insurance
(C) Increasing benefit term insurance 
(D) None of these

5) In which type of term insurance policy the coverage keeps on increasing periodically over the term ?

(A) Level benefit term insurance 
(B) Decreasing benefit term insurance
(C) Increasing benefit term insurance 
(D) None of these

6) In which type of term insurance policy the coverage keeps decreasing with the time ?

(A) Level benefit term insurance 
(B) Increasing benefit term insurance
(C) Decreasing benefit term insurance 
(D) None of these

WHOLE LIFE POLICIES

7) Which insurance policy provides life insurance protection over the lifetime of the assured?

(A) Whole life policies 
(B) Level benefit term insurance
(C) Increasing benefit term insurance 
(D) Decreasing benefit term insurance

8) Which type of whole life policy provides surplus such as profits, bonus, dividends, etc.?

(A) Participating whole life policy 
(B) Non-participating whole life policy
(C) Ordinary whole life policy
(D) None of these

9) Which policy is plain vanilla type whole life policy ?

(A) Ordinary whole life insurance 
(B) Limited payment whole life insurance
(C) Convertible whole life insurance 
(D) Increasing whole life insurance

10) Which type of policy can be converted into endowment insurance policy ?

(A) Ordinary whole life insurance 
(B) Limited payment whole life insurance
(C) Convertible whole life insurance 
(D) Increasing whole life insurance

11) In which type of whole life policy the cover under policy increase at a pre-determined level ?

(A) Ordinary whole life insurance 
(B) Limited payment whole life insurance
(C) Convertible whole life insurance
(D) Increasing whole life insurance

ENDOWMENT INSURANCE POLICIES

12) Which insurance policy provides living benefit as well as life insurance ?

(A) Term life insurance 
(B) Whole life insurance
(C) Endowment insurance 
(D) None of these

13) Which insurance policy provides the benefit of accumulating capital and protects the saving of the insured ?

(A) Term life insurance 
(B) Whole life insurance
(C) Endowment insurance 
(D) All of these

14) In which type of endowment policy the sum assured is payable either on survival or death within endowment period ?

(A) Pure endowment 
(B) Joint endowment
(C) Marriage endowment 
(D) All of these

15) Which endowment policy provides cover of risk on two or more lives under single policy ?

(A) Pure endowment 
(B) Joint endowment
(C) Marriage endowment 
(D) None of these

16) Which endowment policy is designed to meet the marriage financing needs of the family member of the policyholder ?

(A) Pure endowment 
(B) Joint endowment
(C) Marriage endowment 
(D) None of the above

17) In which endowment policy the premium during the first five years are very high and from the sixth year it scaled down to 1/3rd of the original premium ?

(A) Jeevan Mitra 
(B) Bhavishya Jeevan Policy
(C) Jeevan Griha 
(D) New Jana Raksha

18) In which type of endowment policy the risk cover will be twice or thrice of the face value of the policy ?

(A) Bhavishya Jeevan 
(B) Jeevan Mitra
(C) Jeevan Griha 
(D) Jeevan Shree

19) Which endowment policy is suitable for agriculturists ?

(A) Jeevan Mitra 
(B) Jeevan Griha 
(C) New Jana Raksha 
(D) Jeevan Shree

20) Which endowment policy provides rider to cover the serious illness ?

(A) Jeevan Mitra 
(B) Jeevan Shree 
(C) New Jana Raksha 
(D) Asha Deep II

21) In which policy the face value of the policy is paid in installments and at the end the
balance being paid on maturity ?

(A) Money Back Plan 
(B) Endowment Plan
(C) Term Life Plan 
(D) Whole Life Plan

22) Which of the following is type of money back plan ?

(A) Jeevan surabhi 
(B) Jeevan sanchay 
(C) Both A & B 
(D) None of these

23) .......... is a special type of money back plan designed for females.

(A) Jeevan Surabhi 
(B) Jeevan Sanchay
(C) Jeevan Sneha 
(D) Jeevan Shree

24) Which policy is limited payment whole life policy for the life of the parent ?

(A) Jeevan Aadhar 
(B) Jeevan Sanchay
(C) Jeevan Sneha
(D) Jeevan Shree

25) Which insurance policy provides benefit of joint life assurance for husband and wife ?

(A) Jeevan sathi 
(B) Jeevan saritha 
(C) Both A & B 
(D) None of these

ANNUITIES

26) In which type of insurance plan the policyholder regular contributes over a period of time accumulate to form a corpus with the insurer ?

(A) Annuities 
(B) Whole life policy
(C) Term life policy 
(D) Joint life policy

27) In ........... annuities the payments begin within one year of purchase.

(A) Fixed 
(B) Variable 
(C) Deferred 
(D) Immediate

28) In ............. annuity the payment to the annuitant start after a certain deferment period.

(A) Fixed 
(B) Variable 
(C) Deferred 
(D) Immediate

29) ........ annuity assures minimum rate of return.

(A) Fixed 
(B) Variable 
(C) Deferred 
(D) Immediate

30) Which annuity offers a verity of investment fund portfolios ?

(A) Fixed 
(B) Variable 
(C) Deferred 
(D) Immediate

31) Annuities provides Tax benefits u/s ...... of the Income Tac Act, 1961.

(A) 81
(B) 84 
(C) 86 
(D) 88

32) How many options are there in Annuity ?

(A) 4 
(B) 6 
(C) 3 
(D) 5

33) In ........... annuity the annuitant receives income payments for the rest of his/her life.

(A) Single life 
(B) Single life with period certain
(C) Joint and survivor 
(D) Joint and survivor with period certain

34) In .......... annuity the annuitant and the designated joint annuitant will receive income for the rest of their lives.

(A) Single life 
(B) Single life with period certain
(C) Joint and survivor 
(D) Joint and survivor with period certain

35) In .......... annuity, if the annuitant and his/her joint annuitant die before a specific number of payments the beneficiary will receive income for the reminder of the period certain.

(A) Single life 
(B) Single life with period certain
(C) Joint and survivor 
(D) Joint and survivor with period certain

GROUP INSURANCE

36) Which insurance is an extension of individual insurance into class insurance ?

(A) Group insurance 
(B) Life insurance
(C) Mediclaim insurance 
(D) All of these

37) OYTA means...........

(A) Over Your Term Assurance 
(B) One Year’s Term Assurance
(C) Only Year Term Assurance 
(D) None of these

38) Group insurance is a contract between ............ and .............

(A) Insurer, employees 
(B) Insurer, company
(C) Insurer, group 
(D) Insurer, Employer

39) In which year the first group insurance policy was issued ?

(A) 1909 
(B) 1999 
(C) 1911 
(D) 1920

40) ............ insurance is blessing for both employers and employees.

(A) Joint insurance 
(B) Group insurance
(C) Individual insurance 
(D) Life insurance

LAPSE AND NONE FORFEITURE

41) When there is default on the part of policyholder and termination of policy it is called...........

(A) Lapse 
(B) Forfeiture 
(C) Both A & B 
(D) None of these

42) The policy conditions provides various safeguards to policyholders when there is premium default, it is called........

(A) Lapse 
(B) Forfeiture 
(C) Non-forfeiture 
(D) None of these

43) Under.............. scheme the policyholder will be required to pay the full arrears but only six monthly premiums, two quarterly premiums, one half yearly premium or half of the yearly premium.

(A) Installment Revival 
(B) Loan cum Revival
(C) Money Back 
(D) None of these

44) In ........... scheme, the arrears required for revival are advanced out of surrender value of the policy as a loan under the policy.

(A) Installment Revival 
(B) Loan cum Revival
(C) Money Back 
(D) None of these

45) In which scheme the survival amount can be adjusted towards the outstanding dues for
revival ?

(A) Installment Revival 
(B) Loan cum Revival
(C) Survival cum Revival 
(D) None of these

CLAIMS

46) ............. is the demand that the insurer should redeem the promise made in the contract.

(A) Lapse 
(B) Forfeiture 
(C) Claim 
(D) Insurance

47) MWP stands for .........

(A) Money With Plan 
(B) Money Without Plan
(C) Married Women’s Property 
(D) None of these

48) If the life assured dies after the date when the survival benefit was due, but before it is settled, the death claim will be paid to .......

(A) Family
(B) Nominee 
(C) Wife 
(D) No one

49) Which money back policy is paid during the currency of the policy, before the date of maturity ?

(A) Survival benefit 
(B) Maturity benefit
(C) Maturity benefit 
(D) None of these

RURAL / SOCIAL INSURANCE PRODUCTS

50) In rural sector, for a life insurer, ........ % in the first financial year going up to the policies written direct in that year.

(A) 5% 
(B) 7% 
(C) 10% 
(D) 12%

51) In general insurance, ......... % in the first financial year of the total gross premium income written direct in that year.

(A) 2% 
(B) 3% 
(C) 5%
 (D) 10%

52) In social sector, what is the obligation of insurer for the first financial year ?

(A) 5000 lives 
(B) 7500 lives 
(C) 10,000 lives 
(D) 15,000 lives

53) In social sector, what is the obligation of insurer for the second financial year ?

(A) 5000 lives 
(B) 7500 lives 
(C) 10,000 lives 
(D) 15,000 lives

54) What is the obligation of insurer in social sector for the third and fourth financial year?

(A) 5000 and 7500 lives 
(B) 7500 and 10,000 lives
(C) 10,000 and 15,000 lives 
(D) 15,000 and 20,000 lives

55) Which scheme provide life insurance protection to the families of Landless agricultural
labourers ?

(A) LALGI 
(B) LALPG 
(C) LLGAI 
(D) None of these

56) Which scheme provides insurance protection to rural and urban persons who are below or marginally at the poverty line ?

(A) Jan Shree BIMA Yojna 
(B) Jivan Shree BIMA Yojna
(C) Landless agricultural labourers group insurance scheme
(D) Social security group insurance scheme

PREMIUM AND BONUSES

57) ............ is the consideration that the policyholder has to pay in order to secure the benefits offered by the insurance contract.

(A) Claim 
(B) Premium 
(C) Fees 
(D) Penalty

ASSIGNMENT

58) When assignor transfers rights, title and interest to the assignee, it is called.......

(A) Assignment 
(B) Claim 
(C) Premium 
(D) Transfer

59) Life insurance policy is an actionable claim as described in ...........

(A) Property Act, 1982 
(B) Companies Act, 2013
(C) IRDA Act 
(D) Transfer of Property Act, 1882

60) Which of the following is type of assignment ?

(A) Absolute 
(B) Conditional 
(C) Both A & B
(D) None of these

NOMINATION

61) ......... is a simple way to ensure easy payment of policy money in the case of a death claim.

(A) Assignment 
(B) Nomination 
(C) Both A & B 
(D) None of these

62) ......... gives the nominee the right to receive the policy money in the event of death of the life assured.

(A) Nomination 
(B) Assignment 
(C) Both A & B 
(D) None of these

63) ............ can be changed by the policyholder by making another endowment on the policy.

(A) Nomination 
(B) Claim 
(C) Premium 
(D) Assignment

64) In Nomination, the policyholder retains full control and deal with the policy without the consent of ...............

(A) Assignor 
(B) Assignee 
(C) Nominee 
(D) Insurer

65) Nomination can be done...........

(A) before issue of the policy by mention in the proposal form or by a letter giving details of
(B) after issue of the policy, by an endorsement on the policy
(C) Both A & B 
(D) None of these

SURRENDERS AND LOANS

66) When the policyholder voluntarily terminate the contract, it is called ...........

(A) Surrender 
(B) Termination 
(C) Assignment 
(D) Nomination

67) The amount payable by the insurer to the policyholder on surrender is called.......

(A) Surrender value 
(B) Cash value
(C) Both A & B 
(D) None of these

68) The actual surrender value will be higher than ...........

(A) Face value
(B) Normal value 
(C) Cash value 
(D) Guaranteed surrender value

69) How many percentage of loan are given on the life insurance policy ?

(A) 80% of the surrendeer value 
(B) 90% of the surrendeer value
(C) 100% of the surrendeer value 
(D) Both A & B

UNIT - LINKED INSURANCE PRODUCTS

70) Give the full form of ULIP.

(A) Unit Linked Insurance Policies
(B) Union Linked Insurance Policy
(C) United Linked Insurance Policy 
(D) All of these

71) .......... provides a combination of the life insurance protection and investment.

(A) Life Insurance Policy 
(B) Endowment policy
(C) Unit Linked Insurance Policy 
(D) Term Life Policy

72) In ............ the policyholder can pay additional premium for investment at any time.

(A) ULIP 
(B) Life Insurance
(C) General Insurance 
(D) Endowment Insurance

73) In ......... the amount of the premium used for insurance coverage, other charges and purchase of units are unbundled and transparent.

(A) ULIP 
(B) Traditional Plans 
(C) Life Insurance 
(D) General Insurance

LIFE INSURANCE RIDERS

74) .......... are additional benefits that can be added to a basic life insurance policy to provide additional coverage.

(A) Joint Insurance 
(B) Endowment Insurance 
(C) Additional Insurance 
(D) Riders

75) Which type of rider covers the risk of death or permanent disability as a result of an accident?

(A) Accidental death/ permanent disability benefit rider 
(B) Critical illness rider
(C) Term Rider 
(D) Guaranteed Insurability Rider

76) Which Rider is helpful to protect the insured in the event of diagnosis of a critical illness ?

(A) Major Surgical Assistance Benefit 
(B) Guaranteed Insurability Rider
(C) Critical illness Rider 
(D) Term Rider

77) Which type of rider allows the insured to increase the insurance cover as the terms & conditions of the policy without future medical examination ?

(A) Accidental death rider 
(B) Term rider
(C) Critical illness rider 
(D) Guaranteed Insurability rider

78) Which type of rider provides payment of additional benefit on death over and above the basic policy cover ?

(A) Term rider 
(B) Waiver of premium rider
(C) Guaranteed Insurability rider 
(D) Critical illness rider

79) Which type of rider provides waiver of future premiums ?

(A) Term rider 
(B) Waiver of premium rider
(C) Guaranteed Insurability rider 
(D) Critical illness rider

80) Which type of rider provides insurance coverage for the spouse ?

(A) Term rider 
(B) Critical illness rider
(C) Guaranteed Insurability rider 
(D) Spouse Insurance rider

81) Which type of rider provides financial support in the event of medical emergencies that require surgery ?

(A) Major Surgical Assistance benefit 
(B) Term rider
(C) Guaranteed Insurability rider 
(D) Spouse Insurance rider

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