insuranceinstituteofindia.com Licentiate Examination Question Paper Model : Insurance Institute of India
Organisation : Insurance Institute of India
Exam : Licentiate Examination
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Insurance Institute Licentiate Examination Model Paper
IC 02 – Model Questions :
i. In cases where a Life Insurance Agent collects the premium from the policyholder and remits it to the insurer’s office, he is acting as an agent of __________:
Related / Similar Question Paper:
Insurance Institute IC-33 Sample Questions Paper
Practice of Life Insurance
a. IRDA
b. the Insurance Company
c. the Policyholder
d. the broker
e. the general public
Ans: b. the Insurance Company
ii. A policy where the policyholder makes a one-time payment of premium, is known as a ______________:
a. Money-back policy
b. Single premium policy
c. Salary Savings Scheme policy
d. Half-yearly policy
e. Annual policy
Ans: b. Single premium policy
II. i. State which of the statements given below is correct (Checking learning – Direct)
a. An organisation can exist only with employees
b. An organisation can exist only with different sections
c. An organisation can exist only with its own office building
d. An organisation can exist without a purpose
e. An organisation will grow as years pass by
Ans: a. An organisation can exist only with employees
ii. State which of the statements given below is correct (Checking learning – Direct)
a. People generally feel that life related risks are imminent
b. Religious beliefs interfere with the purchase of life insurance
c. People are always keen to buy insurance
d. Life insurance cannot be denied to anyone at any time
e. Life insurance is to be sold to people who are not in good health
Ans: b. Religious beliefs interfere with the purchase of life insurance
III. Answer the questions below by selecting the correct answer: (Checking learning – Direct)
i. Which of the following is/ are important activities of an organisation’s Accounts Department?
a. Keeping control on cash
b. Investments of funds
c. Processing bills
d. Reconciling bank statements
e. All of the above
Ans: e. All of the above
ii. Which of the following is an important reason for insurers to sell life insurance policies through agents?
a. The benefits of life insurance policies are simple and clear to all
b. People can decide which policy is best for them
c. Agents have to earn their commissions
d. Agents have to meet their marketing targets
e. Many people require personalised guidance for selecting the right policy
Ans: e. Many people require personalised guidance for selecting the right policy
IV. Fill in the Blanks using the appropriate word(s) (Checking understanding – Indirect)
i. Compared to the premium for a Whole Life plan, the premium for an Endowment plan will be ____________ for the same age
a. more
b. less
c. the same
d. double
e. half
Ans: a. more
ii. A nomination can be made only in favour of ________________
a. a bank
b. spouse and children with guardian
c. spouse and minor children
d. parents, spouse and children
e. any individual
Ans: d. any individual
V. Select the expanded form of the abbreviation given (Checking understanding – Indirect)
i. Select the expanded form of SA as commonly used in life insurance
a. Sum Assured
b. Surrender of Assurance
c. Supplementary Assurance
d. Stamp Act
e. Survivor’s Annuity
Ans: a. Sum Assured
ii. Select the expanded form of OR as commonly used in life insurance
a. Oral Rehydration
b. Once Renewed
c. Ordinary Rates
d. Ordinary Renewal
e. Ombubsman’s Assurance
Ans: c. Ordinary Rates
iii. Select the expanded form of SV as commonly used in life insurance
a. Summary Valuation
b. Selected Value
c. Surrender Value
d. Stamp Value
e. Survivor Value
Ans: c. Surrender Value
VI. Select the word(s) that most closely matches the given term. (Checking understanding – Indirect)
i. Which of the following terms matches closest with ‘Automatic Teller Machines’?
a. Divisional Offices
b. Branch Offices
c. Agents
d. Information Kiosks
e. Interactive Voice Response Systems
Ans: d. Information Kiosks
ii. Which of the following terms matches closest with ‘Foreclosure’?
a. Surrender Value
b. Nominee
c. Death Claim
d. Maturity Claims
e. Bonus
Ans: a. Surrender Value
Principles of Insurance
IC 01 – Model Questions
I. Select the appropriate answer to complete the sentence (Checking learning – Direct)
i. Insurance works on the principle of:
a. Sharing of losses
b. Probabilities
c. Large numbers
d. Randomness
e. All of the above
Ans: e. All of the above.
ii. Insurance helps to:
a. Prevent adverse situations from occurring
b. Reduce the financial consequences of adverse situations
c. Negate all consequences of adverse situations
d. Make assets continuously productive
e. All of the above
Ans: b. Reduce the financial consequences of adverse situations.
II. State which of the statements is/are correct (Checking learning – Direct)
i. The term ‘Risk’ includes:
a. Damage to machinery and property
b. Impact on the health or life of a person
c. Leakage of toxic products into the atmosphere
d. Effect on the healthy life of the neighbourhood
e. All of the above
Ans: e. All of the above.
ii. The main purpose of having Life insurance is:
a. As an avenue for long-term investment
b. As a medium for getting income tax benefits from savings
c. As a governmental programme for reducing poverty
d. As an avenue for short-term investment
e. None of the above
Ans: e. None of the above.
III. Answer the questions below by selecting the correct answer: (Checking learning – Direct)
i. Which of the following intermediaries do not require IRDA’s licence/ approval to operate in India?
a. Insurance Brokers
b. Insurance Agents
c. Third Party Administrators
d. Surveyors
e. All the above intermediaries require IRDA’s licence/ approval
Ans: e. All the above intermediaries require IRDA’s licence/ approval
ii. An actuary is expected to:
a. Make an exact forecast of the future liabilities of policies
b. Make a reasonable forecast of the future liabilities of policies
c. Calculate the premium required to cover a risk on a long-term basis
d. Find the probability of an insured event to happen in non-life policies
e. All the above statements are incorrect
Ans: b. Make a reasonable forecast of the future liabilities of policies
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