Detailed Result: Your Result For English IC38 Mock Test 14

9/23/21, 5:01 PM Work With LIC - IC38
Great! you have successfully completed your exam
Your Result for English IC38 Mock Test 14

Result Pass
No of Questions 50
Question Attempted 50
Total Marks 50
Your Marks 24
Percentage Obtained 48%
Detailed Result

Q(1):Which of the below is not an advantage of cash value insurance contracts ?
1. Safe and secure investment
2. Inculcates saving discipline
3. Lower yields (Your answer is correct)
4. Inculcates saving discipline
Q(2):Who among the following is best advised to purchase a term plan ?
1. An individual who needs money at the end of insurance term (Your answer is incorrect)
2. An individual who needs insurance and has a high budget
3. An individual who needs insurance but has a low budget (This is the correct answer)
4. An individual who needs an insurance product that gives high returns
Q(3):The ________ the premium paid by you towards your life insurance, the ________ will be
the compensation paid to the beneficiary in the event of your death.
1. Lower, Higher
2. Higher, Lower
3. Faster, Slower
4. Higher, Higher (Your answer is correct)
 Home IC38 Demo 
https://www.workwithlic.com/ic38/result.php?arg=true&result_id=257374# 1/13
Q(4):Which of the below option is correct with regards to a term insurance plan ?
1. Term insurance plans come with life-long renewability option (Your answer is incorrect)
2. Term insurance can be bought as a stand-alone policy as well as a rider with another policy (This is
the correct answer)
3. All term insurance plans come with a built-in disability rider
4. There is no provision in a term insurance plans to convert it into a whole life insurance plan
Q(5):In decreasing-term insurance, the premiums paid ____________ over time.
1. Increase
2. Decrease (Your answer is incorrect)
3. Remain constant (This is the correct answer)
4. Are returned
Q(6):What does NAV stands for in an ULIP ?
1. Net Asset Value (Your answer is correct)
2. Net Assumed Value
3. Net Assured Value
4. Net Average Value
Q(7):What does inter-temporal allocation of resources refer to ?
1. Temporary allocation of resources (Your answer is incorrect)
2. Postponing allocation of resources until the time is right
3. Allocation of resources over time (This is the correct answer)
4. Diversification of resource allocation
Q(8):Where was the Universal Life Policy introduced first ?
1. Great Britain
2. USA (Your answer is correct)
3. Germany
4. France
Q(9):Using the conversion option present in a term policy you can convert the same to _
1. Mortgage policy (Your answer is incorrect)
2. Whole life policy (This is the correct answer)
3. Bank FD
4. Decreasing term policy
Q(10):What is the primary purpose of a life insurance product ?
1. Tax rebates
2. Protection against the loss of economic value of an individual’s productive abilities (This is the correct
answer)
3. Safe investment avenue (Your answer is incorrect)
4. Wealth accumulation
Q(11):Which of the below is an example of an endowment assurance plan ?
1. Mortgage Redemption Plan
2. Credit Life Insurance Plan
3. Money Back Plan (Your answer is correct)
4. Whole Life Plan
Q(12):From a _______________________ standpoint, a product is a bundle of attributes. Firms

differentiate their product offerings in the marketplace by packing together different types of
attributes or different bundles of the same attributes.
1. Sells
2. Financial
3. Marketing (Your answer is correct)
4. None of the above
Q(13):Who among the following is most likely to buy variable life insurance ?
1. Knowledgeable people comfortable with equity (This is the correct answer)
2. People seeking fixed return (Your answer is incorrect)
3. People who are risk averse and do not dabble in equity
4. Young people in general
Q(14):Which of the below statement is true regarding ULIP’s ?
1. Investment risk is borne by the insurer
2. Value of the units is determined by a formula fixed in advance
3. ULIP’s are opaque with regards to their term, expenses and savings components (Your answer is
correct)
4. ULIP’s are bundled products
Q(15):What is the objective behind Mortgage Redemption Insurance ?
1. Provide financial protection for home loan borrowers (This is the correct answer)
2. Facilitate cheaper mortgage rates
3. Evade eviction in case of default
4. Protect value of the mortgaged property (Your answer is incorrect)
Q(16):What does the term “premium” denote in relation to an insurance policy ?
1. Profit earned by the insurer (Your answer is incorrect)
2. Price paid by an insured for purchasing the policy (This is the correct answer)
3. Margins of an insurer on a policy
4. Expenses incurred by an insurer on a policy
Q(17):The sum assured under keyman insurance policy is generally linked to which of the
following ?
1. Business profitability (This is the correct answer)
2. Business history
3. Keyman income (Your answer is incorrect)
4. Inflation index
Q(18):Which of the below is not a factor in determining life insurance premium ?
1. Reserves
2. Rebate (This is the correct answer)
3. Mortality (Your answer is incorrect)
4. Management expenses
Q(19):Mortgage redemption insurance (MRI) can be categorised under __
1. Universal life assurance
2. Variable life assurance (Your answer is incorrect)
3. Increasing term life assurance
4. Decreasing term life assurance (This is the correct answer)
Q(20):What is a policy withdrawal ?
1. Policy downgrade
2. Policy upgrade
3. Discontinuation of premium payment by policyholder
4. Surrender of policy in return for acquired surrender value (Your answer is correct)
Q(21):Which of the below is one of the ways of defining surplus ?
1. Excess value of assets over liabilities (This is the correct answer)
2. Excessive liabilities
3. Excess value of liabilities over assets (Your answer is incorrect)
4. Excessive turnover
Q(22):Which among the following is a limitation of traditional life insurance products ?
1. Clear and visible method of arriving at surrender value
2. Yields on these policies is high (Your answer is incorrect)
3. Well defined cash and savings value component
4. Rate of return is not easy to ascertain (This is the correct answer)
Q(23):A __________ is a formal legal document used by insurance companies that provides
details about the product.
1. Prospectus (This is the correct answer)
2. Information docket
3. Proposal quote
4. Proposal form (Your answer is incorrect)
Q(24):Which of the below losses are covered under keyman insurance ?
1. Property theft
2. General liability
3. Losses related to the extended period when a key person is unable to work (Your answer is correct)
4. Losses caused due to errors and omission
Q(25):Which of the below is not a component of ULIP premiums ?
1. Social security charge (This is the correct answer)
2. Investment risk premium (Your answer is incorrect)

3. Policy allocation charge
4. Mortality charge
Q(26):Life insurance companies may offer rebate to the buyer on the premium that is payable on
the basis of __
1. Term of the plan chosen by the buyer
2. Type of policy chosen by the buyer
3. Sum assured chosen by the buyer (This is the correct answer)
4. Mode of payment (cash, cheque, card) chosen by the buyer (Your answer is incorrect)
Q(27):A policy is effected under the MWP Act. If the policyholder does not appoint a special
trustee to receive and administer the benefits under the policy, the sum secured under the
policy becomes payable to the _
1. Next of kin
2. Official Trustee of the State (Your answer is correct)
3. Insurer
4. Insured
Q(28):Interest rates are one of the important components used while determining the premium.
Which of the below statement is correct with regards to interest rates ?
1. Higher the interest rate assumed, lower the premium (This is the correct answer)
2. The interest rates don’t affect premiums
3. Lower the interest rate assumed, lower the premium
4. Higher the interest rate assumed, higher the premium (Your answer is incorrect)
Q(29):With regards to valuation of assets by insurance companies, __________ is the value at

which the life insurer has purchased or acquired its assets.
1. Market value (Your answer is incorrect)
2. Discounted future value
3. Book value (This is the correct answer)
4. Discounted present value
Q(30):In case of __________, a company expresses the bonus as a percentage of basic benefit
and already attached bonuses.
1. Compound bonus (This is the correct answer)
2. Terminal bonus (Your answer is incorrect)
3. Reversionary bonus
4. Persistency bonus
Q(31):What does a policy lapse mean ?
1. Policyholder discontinues premium payment for a policy (Your answer is correct)
2. Policyholder completes premium payment for a policy
3. Policy attains maturity
4. Policy is withdrawn from the market
Q(32):Mahesh ran a business on borrowed capital. After his sudden demise, all the creditors are
doing their best to go after Mahesh’s assets. Which of the below assets is beyond the
reach of the creditors ?
1. Mahesh’s bank accounts
2. Property under Mahesh’s name
3. Mutual funds owned by Mahesh
4. Term life insurance policy purchased under Section 6 of MWP Act (Your answer is correct)
Q(33):Who bears the investment risk in case of ULIPs ?
1. Insurer
2. State
3. Insured (This is the correct answer)
4. IRDA (Your answer is incorrect)
Q(34):Which of the below option is true with regards to MWP Act cases?
Statement I: Maturity
claims cheques are paid to policyholders
Statement II: Maturity claims cheques are paid to
trustees
1. I is true
2. II is true (Your answer is correct)
3. Both I and II are true
4. Neither I nor II is true
Q(35):Who can be a key person in a co. eligible for Keyman Insurance ?
1. A partner
2. Director of the co.
3. A key sales person (Your answer is incorrect)
4. All of the above (This is the correct answer)
Q(36):Single Premium contracts are _
1. Investment oriented (This is the correct answer)
2. Policy of a single person (Your answer is incorrect)
3. Tax benefit oriented.
4. None of the above
Q(37):Ajay pays insurance premium for his employees. Which of the below insurance premium
will not be treated deductible as compensation paid to employee?
Choice I: Health
insurance with benefits payable to employee
Choice II: Keyman life insurance with benefits
payable to Ajay
1. I only
2. II only (Your answer is correct)
3. Both I and II
4. Neither I nor II
Q(38):Which of the below can be attributed to moral hazard ?
1. Increased risky behaviour prior to the purchase of insurance
2. Increased risky behaviour following the purchase of insurance (Your answer is correct)
3. Decreased risky behaviour following the purchase of insurance
4. Engaging in criminal acts post being insured
Q(39):The practice of charging interest to borrowers who pledge their property as collateral but
leaving them in possession of the property is called
1. Security
2. Mortgage (Your answer is correct)
3. Usury
4. Hypothecation
Q(40):The application document used for making the proposal is commonly known as the __
1. Proposal form (Your answer is correct)
2. Registration form
3. Application form
4. Subscription form
Q(41):From the below given age proof documents, identify the one which is classified as
nonstandard
by insurance companies.
From the below given age proof documents, identify
the one which is classified as nonstandard
by insurance companies.
1. Ration card (Your answer is correct)
2. Passport
3. School or college certificate
4. Pan card
Q(42):Which of the below option is true with regards to MWP act cases?
Statement I: Death
claims are settled in favour of nominees
Statement II: Death claims are settled in favour of
trustee
1. I is true
2. II is true (Your answer is correct)
3. Both I and II are true
4. Neither I nor II is true
Q(43):Money laundering is the process of bringing _______ money into an economy by hiding its
_______ origin so that it appears to be legally acquired.
1. Legal, legal (Your answer is incorrect)
2. Illegal, legal
3. Illegal, illegal (This is the correct answer)
4. Legal, illegal
Q(44):In the case of Keyman Insurance which of the following policies can be given.
1. Money back policy
2. Term Insurance Policy (This is the correct answer)
3. ULIP (Your answer is incorrect)
4. Endowment Policy
Q(45):In case the policyholder is not satisfied with the policy, he / she can return the policy within
the free-look period i.e. within ________of receiving the policy document
1. 60 days
2. 45 days
3. 30 days
4. 15 days (Your answer is correct)
Q(46):Which of the below policy can provide protection to home loan borrowers ?
1. Mortgage Redemption Insurance (Your answer is correct)
2. Disability Insurance
3. Life Insurance
4. General Insurance
Q(47):In the case of policy under MWP Act which of following is not possible
1. Surrender of the policy
2. Nomination in the policy
3. Creditors asking for policy money
4. All of the above (Your answer is correct)
Q(48):Which of the following is not a standard age proof ?
1. Horoscope (Your answer is correct)
2. School leaving certificate
3. Passport
4. Birth certificate
Q(49):Beneficiary under section 6 of MWP act can be
1. Wife alone
2. Wife and one or more children jointly
3. One or more children
4. All of the above (Your answer is correct)
Q(50):Which of the following is ture

I) Under MWP Act the policy is deemed to be a Trust
II) In
case of a policy under MWP Act the maturity amount will be paid to the husband.
1. I is correct (Your answer is incorrect)

2. II is correct (This is the correct answer)
3. Both are correct
4. Both are wrong
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9/23/21, 5:01 PM Work With LIC - IC38

Great! you have successfully completed your exam

Your Result for English IC38 Mock Test 14

Q(1):Which of the below is not an advantage of cash value insurance contracts ?

1. Safe and secure investment

2. Inculcates saving discipline

3. Lower yields (Your answer is correct)

4. Inculcates saving discipline

Q(2):Who among the following is best advised to purchase a term plan ?

2. An individual who needs insurance and has a high budget

1. Lower, Higher

2. Higher, Lower

3. Faster, Slower

4. Higher, Higher (Your answer is correct)

 Home IC38 Demo 

Q(5):In decreasing-term insurance, the premiums paid ____________ over time.

2. Decrease (Your answer is incorrect)

3. Remain constant (This is the correct answer)

4. Are returned

Q(6):What does NAV stands for in an ULIP ?

1. Net Asset Value (Your answer is correct)

2. Net Assumed Value

3. Net Assured Value

4. Net Average Value

Q(7):What does inter-temporal allocation of resources refer to ?

1. Temporary allocation of resources (Your answer is incorrect)

2. Postponing allocation of resources until the time is right

3. Allocation of resources over time (This is the correct answer)

4. Diversification of resource allocation

Q(8):Where was the Universal Life Policy introduced first ?

1. Great Britain

 Home IC38 Demo 

2. USA (Your answer is correct)

1. Mortgage policy (Your answer is incorrect)

2. Whole life policy (This is the correct answer)

4. Decreasing term policy

Q(10):What is the primary purpose of a life insurance product ?

1. Tax rebates

3. Safe investment avenue (Your answer is incorrect)

4. Wealth accumulation

Q(11):Which of the below is an example of an endowment assurance plan ?

1. Mortgage Redemption Plan

2. Credit Life Insurance Plan

3. Money Back Plan (Your answer is correct)

4. Whole Life Plan

Q(12):From a _______________________ standpoint, a product is a bundle of attributes. Firms

 Home IC38 Demo 

3. Marketing (Your answer is correct)

4. None of the above

1. Knowledgeable people comfortable with equity (This is the correct answer)

2. People seeking fixed return (Your answer is incorrect)

4. Young people in general

Q(14):Which of the below statement is true regarding ULIP’s ?

1. Investment risk is borne by the insurer

2. Value of the units is determined by a formula fixed in advance

4. ULIP’s are bundled products

Q(15):What is the objective behind Mortgage Redemption Insurance ?

2. Facilitate cheaper mortgage rates

3. Evade eviction in case of default

4. Protect value of the mortgaged property (Your answer is incorrect)

Q(16):What does the term “premium” denote in relation to an insurance policy ?

1. Profit earned by the insurer (Your answer is incorrect)

3. Margins of an insurer on a policy