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Organisation : Life Insurance Corporation of India
Exam : IC-33
Document Type : Sample Questions
Website : insuranceinstituteofindia.com

Download Model/Sample Question Paper : https://www.pdfquestion.in/uploads/7377-IC33%2520Sample%2520Questions.pdf

LIC IC-33 Sample Questions Paper

IC-33 :
1. The concept of insurance involves a transfer of
A. liability.
B. needs.
C. ownership.
D. risk.

Related / Similar Question Paper :
Insurance Institute Licentiate Exam Question Paper

2. Rakesh recently bought a health insurance policy and a personal accident policy. What main section(s) of the insurance market do these products normally fall into?
A. Life insurance in both cases.
B. Life insurance for health and non-life insurance for personal accident.
C. Non-life insurance in both cases.
D. Non-life insurance for health and life insurance for personal accident.

3. The main role of an underwriter in a non-life insurance company is normally to
A. assess the acceptability of particular risks.
B. certify a loss when claims are submitted.
C. design the structure of the products to be offered.
D. negotiate with the industry regulator.

4. Akshat is a relatively cautious person. In insurance terms, this will normally increase the likelihood that he will
A. be considered an above average insurance risk.
B. be considered a below average insurance risk.
C. require insurance cover.
D. require reinsurance cover.

5. How are perils and hazards normally distinguished under term insurance policies?
A. Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying.
B. Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk.
C. Perils are factors which affect the risk being insured and hazards are the size of the risk being insured.
D. Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout.

6. In insurance terms, the risk of suffering a disability is best described as what type of risk?
A. Financial.
B. Fundamental.
C. Homogenous.
D. Speculative.

7. For a household insurance policy, insurable interest need only exist at outset and at what other point?
A. The date the cancellation period expires.
B. The date a claim occurs.
C. The date the policy document is received.
D. The termination date.

8. Rahul is employed by Sunny. In respect of this employment, Rahul automatically has insurable interest in Sunny’s life up to what limit, if any?
A. Rahul’s monthly salary.
B. Rahul’s pension fund value.
C. Sunny’s annual profit.
D. There is no limit.

9. Arun started a 20-year term insurance policy. Once established, when, if at all, is the insurer next entitled to ask him for proof of continuing good health?
A. At no point.
B. After the end of the first 12 months.
C. At the point when he changes occupation or retires.
D. When a lapsed policy is revived.

10. The concept of indemnity is based on the key principle that policyholders should be prevented from
A. insuring existing losses.
B. making false insurance claims.
C. paying excessively for insurance cover.
D. profiting from insurance.

11. Once an absolute assignment is effected under a life insurance policy, who will be the titleholder(s) of this policy?
A. The assignor in all cases.
B. The assignee in all cases.
C. Either the assignor or assignee depending on the type of policy involved.
D. The assignor and assignee jointly.

12. How long is the free look-in period under a term insurance policy from the date of receipt of the policy document?
A. 5 days.
B. 10 days.
C. 15 days.
D. 20 days.

13. A life insurer issued a quotation on 10 February, guaranteed for 14 days, which was accepted by the customer on day 10. Consequently the insurer can only decline this risk if the
A. customer submits a second quotation request.
B. insurer increases its underlying premium rates.
C. market place experiences a significant downturn.
D. material facts change.

14. A policy document for a money-back policy includes the statement ‘the proposal and declaration signed by the proposer form the basis of the contract’. In which main section of the policy document will this normally appear?
A. Attestation.
B. Operative clause.
C. Preamble.
D. Terms and conditions.

15. A life insurance policy can only be made paid up if what particular policy feature exists?
A. Indexing contribution.
B. Nomination facility.
C. Rider benefits.
D. Savings element.

16. The main reason why a life insurance proposal form often asks for the proposer’s height is to enable a reasonable comparison with the proposer’s
A. age.
B. gender.
C. occupation.
D. weight.

17. Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply?
A. 2.5%
B. 3.0%
C. 5.0%
D. 7.5%

18. The amount paid out by the insurer under a 30-year life insurance policy exceeded the sum insured plus revisionary bonuses. The excess is likely to result from?
A. charges refunded.
B. a frequency loading.
C. a tax rebate.
D. a terminal bonus.

19. What normally happens to the sum insured under a life insurance policy once the period of the lien expires?
A. It reduces.
B. It increases.
C. It is temporarily suspended.
D. It is replaced by a newly-underwritten sum insured.

20. The main protection need of a 19-year-old is most likely to be
A. self-protection.
B. home loan protection.
C. protection of dependants.
D. protection of children’s future.

21. Raunak recently arranged a life insurance policy under which he is classed as the master policyholder. This addresses his role as
A. a creditor.
B. a debtor.
C. an employee.
D. an employer.

22. The need for investment advice from an insurance agent normally results from what overriding key factor?
A. Absence of any long-term goals.
B. Inability to prioritise future financial needs.
C. Lack of market knowledge.
D. Shortage of available funds.

23. When undertaking financial planning for individuals without capital, what savings need is likely to be addressed in every single case?
A. Emergency funds.
B. Funds for children’s savings.
C. Funds for educational costs.
D. House purchase funds.

24. Naveen is addressing his income needs by investing directly in corporate bonds. In what form will he receive this income?
A. Annuity instalments.
B. Dividend payments.
C. Interest payments.
D. Rental payments.

25. Nikhil is looking for tax-efficient savings methods for his disposable income. He is considering an equity-linked savings scheme, national savings certificates and an endowment insurance policy. Premiums for which of these investments are allowed to be deducted from his taxable income?
A. The national savings certificates only.
B. The equity-linked savings scheme and the national savings certificates only.
C. The national savings certificates and the endowment insurance policy only.
D. The equity-linked savings scheme, the national savings certificates and the endowment insurance policy.