CHAPTER 11

1) While making decision to buy insurance product, the clients need to take into account
Pricing of product
Features of the product
Flexibility offered
All above
2) _____________ plays very important role with taking decision to buy product
Maturity payment
Claim settlement ration
Revival
Foreclosure
3) ____________ is a demand that the insurer redeem the promise made in the contract
Foreclosure
Revival
Claim
Paid up
4) The Insurance company promises to pay specified amount after completion of plan term, if the
client survives, called
Foreclosure
Survival Benefit
Maturity
Surrender
5) The insurance company promises topay specified amount after specified intervals, if the client
survives, called
Foreclosure
Survival Benefit
Maturity
Surrender
6) On maturity of lapsed policy, the proportionate reduced sum insured is paid out by the insurance
company called
Maturity Benefit
Survival Benefit
Paid up Value
Surrender
7) If the client wants maturity payment 6 month earlier than maturity date called as
Foreclosure
Revival
Surrender
Discounted
8) In case of ULIP, the insurance company pays at the time of death
Fund value
Sum Assured with fund value
Higher of the sum assured fund value
All Above
9) An additional sum assured paid in case of accidental if _________rider is taken
DAB
CIR
PWB
TR
10) In case of absolute assignment, the maturity claim payment will be made to
Nominee
Life assured
Legal heir
Assignee
11) In case of conditional assignment, the maturity claim payment will be made to
Nominee
Life assured
Legal heir
Assignee
12) If policyholder wants maturity amount in installment instead of lump sum, its called
Surrender
Foreclosure
Settlement upon
Discounter
13) Consequences of fraud claim settlement make the insurer
To bear loss in profit
Increase burden by way of increase in premium
Temptation to continue this practice
None of the above
14) A specified amount is payable in the event of diagnosis any illness if ________ rider is taken
DAB
CIR
PWB
TR

15) If Mr. Vikas took term Assurance of Rs.25 lac pays annual payment at every 1st July. Due to
financial problem he didnt pay premium for current year death took place on 15th Sept.
Nominee will get
Sum Assured
Sum Assured with Bonus
Reduced Sum Assured
Nothing is payable
16) Suicide clause is applicable for _______ year of the policy
1
2
3

17) If Mr. Vijay took endowment policywihtout disclosing fact of heart attck within 2 year death
take place. Nominee will get
Sum Assured
Sum Assured with Bonus
Reduced Sum Assured
Nothing is Payable
18) If death claim arises within ________ years from date of commencement or revival, insurance
company classifies it as an early death claim.
1
2
3
4
19) If Death claim arises because of accident or suicide, then following report requires
FIR
Panchanama
Postmortem report
All above
20) Following requirement needed if early death claim arises
Hospital Statement
Employer certificate about leave
Statement from person who attend last rites
All above
21) Mr.Rahul took endowment policy pay premium for 7 year death take place in 7th year. Nominee
will get
Sum Assured
Sum Assured with Bonus
Reduced Sum Assured
Reduced Sum Assured with Bonus
22) Increase in premium amount because of fraud claim make consequences on
Insurance company
Insured
Claimant
IRDA
23) Indian Evidence Act __________deal with presumption of deth in case of missing,
1871
1872
1873
1874
24) As per Indian Evidence Act 1872, If person is missing for last _____ years he is presumed to be
dead
Six
Seven
Eight
Nine
25) A life insurance contract entered into with person who is not sound mind at the time of entering
into the contract, will not be valid as the person is not a state of mind to understand the
contracts terms and conditions. This is example of void contracts as
Mistake
Unlawful circumstances
Lack of Insurable interest
Non disclosure
26) Ab Inito is a Latin term which means
Utmost good faith
From the beginning

Insurable interest
Null void

27) A person taking a life insurance with the intention of committing suicide or a husband taking
life insurance on his wifes life with the intention of killing her and claiming the money from
the insurance company. This is example of void contract as
Mistake
Unlawful circumstances
Lack of Insurable interest
Non disclosure
28) As per Section ______ of Insurance act 1938, a policy which has been inforce for 2 years cannot
be disputed on the grounds false statements
43
44
45
46
29) An insurer may refuse to pay the claim because
The policy is not in force
An exclusion condition applies

The claim is found to be fraudulent

All Above

30) The IRDA has laid down guidelines for the settlement of claims in IRDA (Protectin of
Policyholders interests)
2001
2002
2003
2004
31) The requirement for a valid death claim is
The policy is not in force
An insured event took place

The claim is found to be fraudulent

An exclusion condition applies