LIC Agents Exam Model Paper with answers

[Raman Vij]

Please provide me question paper for the LIC Agent Examination as soon as possible ?

Here I am giving you question paper for the LIC Agent Examination in word files attached with it so you can get it easily..

LIC Agents Exam Model Paper

Model test paper 3
(1) Potential purchaser of product is called ________________
(a) Prospect
(b) Consumer
(c) Customer
(d) Client

(2) If policyholder is in grievance,__________________ will solve
(a) Grievance officer
(b) Court order
(c) Ombudsman
(d) All the above

(3) 20,000 policies in the 5th year are to be made from _________sector
(a) Rural
(b) Social
(c) None
(d) Urban

(4) Insurance Agent is governed by ____________________
(a) Contract act
(b) Insurance Act
(c) IRDA
(d) All above

(5) Doctors appointed by insurers will be _____________
(a) General Physicians
(b) Specialists
(c) Surgeons
(d) All of above

(6) __________is the document produced to establish one’s age
(a) Birth Certificate
(b) Affidavit
(c) License
(d) Proof of age

(7) Who is the person who identifies the customer and get the necessary insurance for him ?
(a) Intermediary
(b) Retailer
(c) Broker
(d) Agent

(8) Which kind of Insurance plan can meet all need of a proponent?
(a) Endowment
(b) Money Back
(c) Multipurpose
(d) None of them

(9) The principal is responsible for __________ agent
(a) All the acts of agent
(b) Specified acts of agent
(c) Some of acts agent
(d) None of them

(10) Which of the following statements are True:
a) It is the agent’s responsibility to ensure that all material information is made available
b) If the proposal paper is incomplete, the agent will be held accountable
(a) A Statement
(b) B Statement
(c) Both Statement
(d) Neither of Statement

(11) In the case of a policy under the provision of M.W.P. ACT who can make the death claim?
(a) Beneficiary
(b) Life insured Heirs
(c) Trustee
(d) Any of the above

(12) Which kind policies are not entitled bonuses?
(a) Non participatory
(b) Money back
(c) Children’s
(d) Whole life

(13) Claim in question is Rs.23 lakh which consumer court will it go to:__________

(14) A policy which has run for 8 years can be called into question if there is a__________________
(a) Fraud
(b) Misrepresentation
(b) Mistake
(c) None of above

(15) What would be the paid up value of a 25-year-old endowment policy for Rs.50, 000 taken in Oct 1988, if the last ½ year’s premium paid was in Oct 2000?____________

(16) Which of the following statements are True:
a) An insurance agent can be sued under the Consumer Protection Act
b) The Consumer Protection Act does not apply to Govt. Company.
a) A Statement
b) B Statement
c) Both Statements
d) Neither of Statement

(17) If the proponent has no insurable interest in the insured the underwriter will
(a) Accept with reduce sum assured
(b) Decline the proposal
(c) Accept with lien
(d) Accept with extra premium

(18) What is paid by the insurer when the policyholder decides to discontinue the policy
(a) Forfeiture
(b) Surrender Value
(c) Intermediate Claim
(d) Lapse

(19) A person employed to act on behalf of another in dealing with a third person is called _____________
(a) Lawyer
(b) Broker
(c) Employee
(d) Agent

(20) Which are true
a) Proof of age is necessary for proposal and not for agency application
b) After business is complete agent has no role
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement

(21) Which are true
a) Insurance is necessary to cover risk of living too long
b) Insurance helps one to be less dependent on others
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement

(22) Which statement is not appropriate
A) When the prospect said that he had taken sick leave for a few days because he wanted to go outstation for an interview, the agent suggested he need not mention it
B) Agent suggested to the prospect not to mention the fact that the cause of death of one of the brothers who had died young was cardiac arrest, it was mentioned as accident
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement

(23) Which statement is not appropriate
A) The necessity for medical examination depends on S.A.
B) The nature of employment may be a factor to dispense with medical exam
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement


(24) Why does an office conduct special inquiry in the case of death claim which arose after 4 years
(a) As precaution
(b) As a Routine
(c) On suspicion of suppression of facts
(d) For large sum assured

(25) Loans is available only in the policy if
(a) It is a with profit policy
(b) The S.A exceeds Rs.10,000/-
(c) It is in facts underwriter decision
(d) None of the above

(26) Which statement is true
A Lapsed policy can be revived whenever the policy holder choose
B A paid up policy is a lapsed policy
(a) Only statement A
(b) Only statement B
(c) Both false
(d) Both statement

(27) When do the non-forfeiture provision apply
a) When policy is surrendered
b) When loan is taken
c) When premium is not paid
d) All above

(28) True – False
A - DAB is automatic in all life insurance policies
B- DAB is an option on payment of additional payment

(29) True – False
A - Insurance works on the law of large numbers
B - Insurance is possible only when there are many policyholders

(30) True – False
A - A policy that has been in force for 10 years can be called into question for misrepresentation
B - A policy which has been for 10 years called into question for fraud.

(31) True – False
A - An agent must find out the details of proponent and report the same to the insurer. T
B - The income of the proponent must be made known to the insurer.

(32) Loan under policy should not exceed
(a) S.V
(b) S.A.
(c) total premium paid
(d) Bonus

(33) Disability is related to
(a) Sickness
(b) Old age
(c) Loss of limb
(d) all of them

(34) Agent is subject to
(a) IRDA regulation
(b) Term of appointment
(c) Agent’s manual
(d) All of above

(35) The agent has _______freedom to act on behalf of insurer
(a) Limited
(b) Specified
(c) full
(d) none of the above

(36) Write true or false
a) Insurance is an individual issue and not a social one. -
b) “Uberrimae Fides” means “utmost Good Faith”.
c) Whole life policy is the best solution for most of the needs of a person. -
d) There are no “participating” policies in life insurance. -
e) There is no single premium endowment plan. -
F) Loan “Value” is equal to 90% of “Surrender Value”.


(37) Calculate Premium
Date of Birth = 3.06.1954
Date of Calculation = 1.01.2001
Date of commencement of policy = 1.12.2000
Term = 19 years
Sum assured = Rs.1,00,000/-
Mode = Ordinary – monthly
Accident benefit for Rs.50, 000/- only is required.
Tabular Premiums Age 45 = 76.00
Age 46 = 76.80
Age 47 = 78.00
AGE TO BE TAKEN 46 ANS 659

(38) Calculate the premium on basis of data given below:
Age 35 years
S.A.Rs.60, 000/-
T & T 75 – 20
Tabular premium Rs.68.70 per 1000/- mode I) yearly – II) half yearly –
DAB & EPDB Allowed, Occupational Extra Rs.2 per 1000 per year

(39) Calculate paid up value and special S.V.
S.A. Rs.30, 000 /-
T and T 14 – 15
D.O.C. 18.12.1985
L.P.P. 18.3.1991
Mode Quarterly
Bonus addition: Rs.396/- per 1000/- S.A.
S.V.factor 44.2

(44) Match the following
A B
a) Proposal C) let the buyer beware
b) ad idem D) evidence of contract
c) Caveat Emptor E) Pension
d) Policy A) basis of contract
e) Annuity B) of the same mind


(45) Say True or False.
a) A person’s insurable interest in his own life is _____(Unlimited / 10 times his salary / equal to his assets / non of these)
b) How many years must elapse after cancellation of a license, before a new license can be issued (three / four / five)
c) To whom should an application for agency license be given ______________(IRDA / Insurer /Controller of Insurance / any of them)
d) Who fixes the limits of doctors for medical examinations _____________ (IRDA / Medical council / Insurer / None of these)
e) Life Insurance premiums are determined by __________ (Accountants / Underwriter / Actuary)

(46) Calculate paid up value and S.V. in the following case
S.A. Rs. 30,000/-
Mode Half yearly
D.O.C. 28/10/1985
L.P.P. 28/04/1996
S.V. Factor 45
TT 14-25
Bonus Addition Rs.770 per 1000/- S.A.

(47) The route or process through which a product is carried to the customer is known as DISTRIBUTION CHANNEL

(48) Age nearer birthday as on 18/06/2000 of a person with date of birth 28/12/1961 is ________39
(49) The days of grace for monthly mode of premium is ___________ days.15

(50) EDLI scheme is linked to the payment of ________________ (Gratuity / Provident fund / pension)

(51) State whether true or false.
1. Group Gratuity Scheme is beneficial to both the employer as well as employees.
2. Financial planning is not necessary, but agent should seek maximum premium from the customer.
3. There should be no inducement, incase or kind, passing from agent to customer for taking out life insurance.
4. Agents generally get something over and above legitimate commission amount from the insurer.
5. Insurance Advisor is an agent of the insurer and therefore insurer is bound by the acts or omissions of the advisers, there being the principal-agent relationship.
6. As long as the insurer gets the minimum business from an agent, the insurer cannot terminate the agency of such agent.
7. All the information asked in a proposals form is relevant to the assessment of the risk.
8. ONCE the policy lapses there is no way the policy holder can re-start the policy
9. “Nomination” is not compulsory.
10. “Early” claims can be investigated by the insurer.

I want to get LIC Agents Exam Model Paper with answers for this exam preparation so will you plz let me know from where I can do download its paper ??

[sumit]

As you are asking for LIC Agents Exam Model Paper with answers so on your demand I am providing same here :
1. Nitin is ready to submit his proposal for insurance after the need analysis. When his agent asks him
to fill in the proposal form, seeing so many questions bothers him. What should be the agents most
appropriate approach in this case?

a. The agent should note down all personal information regarding Nitin on a paper and let him only sign the proposal form
b. The agent should explain that it is important for the underwriting purpose to provide all necessary information mentioned in the proposal form and educate the proposer to fill in the correct details
c. The agent should fill in the form in front of the proposer after explaining all the questions and then make the proposer sign on the form
d. The agent can ask somebody from his family to fill in the correct details and sign on behalf of Nitin


2. An insurance agent:
a) Must disclose the amount of remuneration and commission he receives as a result of effecting insurance for a client, on demand
b) Can disclose the amount of remuneration and commission he receives as a result of effecting insurance for a client, on demand
c) Can refuse to disclose the amount of remuneration and commission he receives as a result of effecting insurance for a client, on demand
d) Should refuse to disclose the amount of remuneration and commission he receives as a result of effecting insurance for a client, on demand


3. Which of the following is not true with regard to Human Life Value?
a) HLV is used, as a yardstick to determine how much life insurance cover a person should have
b) HLV is a one-time calculation
c) As age increases HLV diminishes
d) Through HLV insurance company tries to measure the economic value of a person

4. In case of lien:
a) If the insured dies within the lien period, insurance company will still pay the full sum insured.
b) The lien should diminish by an equal amount over a specific period of time
c) If the term of the policy is a multiple of three, then the lien operable is two third of the term of the policy
d) Conditions under which a lien can be applied remain same for all insurance companies.

5. Rajan takes a family floater health insurance of Rs 3 lacs from Insurance Company X and has a health cover of Rs 2 lacs from another company Y from his employers side. He suffers from heart attack and has a total bill of Rs 4 lacs. He can take claim from:
a) Company X only
b) Company Y only
c) Both the companies to the extent of Rs 4 Lacs
d) Both the companies to the extent of Rs 5 lacs

6. Ajay has taken a term insurance policy with a Sum Assured of Rs. 4 Lacs. As per the IRDA Regulations on Riders how much maximum Sum Assured he can take for Critical Illness rider
a) 2 Lac
b) 1 Lac
c) 4 Lac
d) 6 Lac

7. Attestation on the policy requires signature of
a) Agent
b) Insurance companys authorized official
c) Nominee
d) Appointee

8. Ramesh proposes a life insurance policy for his son. What is the status of Ramesh in this policy?
a) Proposer
b) Life Insured
c) Nominee
d) Appointee

9. Mr. Sudhakar wants to invest in Post office time deposit for tax benefits. What is the minimum duration for which he needs to invest this money?
a) 1 year
b) 2 years
c) 5 years
d) 10 years

10. The client doesnt like the product recommended by the agent & explains the reasons for the same. What should the agent do in this situation?
a) Refer the matter to arbitration
b) Review alternative products
c) Review the needs of the client and take the decisions accordingly
d) Refer product brochure

11. An investment like Kisan Vikas Patra(KVP) will be preferred by a person who is looking for
a) Lump sum investment & fixed maturity
b) Lump sum investment & open ended maturity
c) Monthly investment & open ended maturity
d) Monthly investment & fixed maturity

12. As per Prevention of Money Laundering Act (PMLA) 2002, what is the risk profile of a client who is a Non Resident Indian
a) Low risk
b) Moderate risk
c) No risk
d) High risk

13. An offer made by A which is accepted by B unconditionally is an example of
a) Conditional acceptance
b) Rejection
c) Counter offer
d) Acceptance

14. Nikhil is taking a policy with a sum assured of Rs. 1, 00,000. What premium amount he can pay to get the income tax benefit on full premium amount as per the Income Tax Act 1961
a) A minimum of Rs.10,000
b) A maximum of Rs.10,000
c) A minimum of Rs.20,000
d) A maximum of Rs.20,000

15. A person wants to lead peaceful golden years, which plan he should opt for:
a) Term
b) Endowment
c) Annuity
d) Money Back

16. A offers the plan & B accepts it unconditionally. It is:
a) Counter Offer
b) Acceptance
c) Modified acceptance
d) Lien

17. If there is advertisement in Newspaper regarding policy, it could be due to:
a) Counter Offer
b) Lost Policy
c) Lien
d) I do not want to attempt this question