Practice of life insurance (IC 02): Memory based questions

Practice of life insurance (IC 02): Memory based questions

The insurance institute of India conducts the III exam. Every year, the exam is held four times: once in March, once in May, once in September, and once in November. We are offering Recollected Questions (Memory-based Questions) for the Practice of life insurance (IC 02) exam. The maximum number of questions are repeated in each exam in these papers. As a result, Ambitiousbaba is providing you with a recollected Question on Practice of life insurance (IC 02).
These Practice of life insurance (IC 02).Memory Based Questions can come in handy in the forthcoming Exam.

Practice of life insurance (IC 02) Recollected Questions (11/7/2021)

  1. Agents recruited directly on basis of test & interview, given intensive training later?
  2. Remuneration Paid to agents in form of – commission
  3. Gratuity – few questions, example based also , calculations also
  1. Section 41

5 – Brokers – many questions

  1. Intermediaries
  2. Bonus commission
  3. Numerical on Age calculation – Near bday, last Bday
  1. ULIP types of funds, definitions, applications
  2. Actuary definition
  3. What models actuary use: financial model, statistical model, etc.
  1. Types of Pseonium
  2. Riders – few questions
  3. Terminal Bonus definitions

15.Pure endowment, Term assurance, Definition & their mixed up products,,  application based – many questions

  1. Which plan is convertible?
  2. Who is annuitant?
  3. Deferment period?
  4. Joint life policy definition
  5. ULIP premium – is divided into 5 parts
  6. MWP act- entire topic, many questions
  7. section of MWP act – section 6
  8. Keyman insurance
  9. No – claim Bonus – definition
  10. Basis of group insurance
  11. Gratuity – definition, calculation, application= many ques
  1. EDLI = 0.51% of each employee’s Contributions
  2. Types of ULIP funds – V. important
  3. Top up premium in ULIP
  4. Preamble, proviso
  5. Underwriting definitions
  6. Supplementary benefits – Policy document
  7. monthly made policy-grace period 15 days
  8. rebate calculation —— mode of payment numerical
  1. S S S — no days of grace
  2. 36 surrender value -other name cash value
  1. installment revival
  2. Assignment nominations – definition
  3. Document submitted at death claim

Practice of life insurance (IC 02) Recollected Questions 

  1. Age next birthday
  2. Tabular premium (rates won’t be given please remember this :

The tabular rate will be given. Otherwise it is 3% , 1.5% for yearly and half yearly respectively.  Nil for quarterly and 5% extra fir monthly mode.)

  1. Case study questions on special report
  2. The insurance cover under EDLI cannot exceed 60,000
  3. Case study Questions on group insurance pension
  4. Identify the type of Annuity
  5. Identify whether it’s a vesting date, deferred date etc.

Deferred date- date on which risk commences

Vesting date- The process of passing the Title of insurance policy to the life assured child once they turn 18.

  1. Money back insurance plan has combination of what all plans
  2. Questions on increasing and decreasing term insurance
  3. Questions to identify whether it is appropriation or expropriation method
  4. Age limit in Postal life insurance- Whole life insurance
  5. Offer price and bid price
  6. How do brokers get their remuneration
  7. Lots of questions on policy documents. Be very thorough about Preamble Operative clause Proviso Schedule Attestation Conditions and privileges. Examples would be given and we have to find in which of these categories they fit in
  8. Similarly identify which type of condition and privileges it is
  9. Remember the sections for assignment and nomination
  10. Numericals on calculation of paid up value and surrender value
  11. Case study questions on MWP ACT
  12. Identify whether it’s conditional assignment or absolute assignment
  13. Meaning of switching and redirection
  14. Remember the lock in period for all plans
  15. Identify the incorrect feature of group insurance policy
  16. Underwriters see what all types of hazard while calculating risk
  17. When you assign a policy you transfer all 3- Titles, rights and interests
  18. Minimum employment years to be completed for gratuity is 5 years
  19. Minimum sum assured and death benefit for age of entry of 45 years and above. See page 127
  20. Policy administration charges are recovered by cancellation of units on monthly basis.
  21. Features of loan against insurance policy- The rate of interest on outstanding loan charged is generally paid half yearly to coincide with the due date of premium.
  22. Identify whether it is premium holiday
  • ULIP – Very important chapter. Nearly half of the questions were asked on various policies linked to ULIP such as % of sum assured as returns, loan availability, funds to invest in and their prime difference etc.
  • Quite a few sums were asked on gratuity and premium payable.
  • Many questions on age next birthday and age previous birthday. Almost 6-7 questions on that concept were tested.
  • Lots of questions on Surrender Value, Assignment and Nomination. Learn the main difference between the two thoroughly. Also don’t omit the section numbers, as they asked a question about that.
  • All the questions were case study based. So, many questions were based entirely on conceptual understanding. If you understand the concept, you’re good to go.
  • Learn the policy documents thoroughly. What is written under which head, etc.
    Assignment and Nominations, Protection of Policyholders Interest and Linked Insurance Products, types of products
    Insurance on EDLI cannot exceed Rs 6 Lakhs
    Calculations on  Age
    Calculation of Tabular Premium
    Paid Up Value calculation
    Policy Loans
    Postal Life Insurance Age limit and Sum Assured Limit
    MWP Act 3 Questions statement types
    Gratuity Limit
    ESI Wage Limit
    Charges of ULIP
    Simple Revisionary Bonus
    Terminal Bonus
    Loyalty addition
    Group Insurance features and what is the policy called ? Master Policy
    Increasing Term Insurance
    Decreasing Term Insurance
    Minor Nominee what should be done ?
    Nominee and Life Assured both not live policy proceeds will go to ?
    Difference between ULIP and Mutual fund
    Difference between ULIP and Traditional Plan
    Early Claims
    Presumption of death how many years ?
    age, nature of occupation, previous medical history important underwriting factors
    importance of family history
    incontestable clause in life insurance
    suicide clause
    renewal of insurance policies
    special revival campaigns
    Many questions on ULIPS
    Many questions on Types of Plans                                                                                                                                      Micro Life Insurance Limit sum assured

Main Chapters tested:

  • ULIPs
    •Types of Insurance plans (40% of questions were from here)
    •Policy Documents
    •Assignment, Nomination & Surrender
    •Applications & Acceptance

    Important topics

  • Policy documents
  • annuities
  • Gratuity

4)Married Women’s Property Act

5)Group Insurance

6)  products especially ulips

Questions on inclusions and exclusions in various policies mainly chapter 3456..

Risk management

Calculation of claim payable

In terms of revenue, which is the biggest non life ins. Co. ?

Another term for erection all risks ?

about burglary ins.

Exclusions to fire ins.?

role of underwriter ?

Calculating payable claim amount.

Principle of Indeminity is not applicable to Personal Accident Policy
Insurable Interest not required at the time inception of the policy but required/ mandated at the time of risk/Claims Marine Cargo
Marine Insurance Important Points to be considered Voyage, Age and condition of the vessel,
Proposal form not required/Not mandatory in case of marine cargo
In general insurance, the policy is taken for one year at a time and can be renewed yearly or a fresh policy can be taken with some other insurance company. TRUE
 is taken out to protect the insured against the losses caused by bad debts due to insolvency of the debtors or otherwise. Repays some or all of a loan when certain circumstances arise to the borrower such, many credit cards offer payment protection plans which are a form of credit insurance Credit insurance
This is a policy whereby the subject matter in transit is insured from one place to another. It is

generally carried out for cargo which is exposed to marine risks in transit

 Voyage policy
This clause covers all losses caused by willful misconduct or defaults of the master and crew of the ship Barratry
undertaken against the possible losses resulting from the lack of integrity of the employees involved in cash transactions working in the industry, commerce and banking sectors Fidelity Guarantee Insurance
provides individuals and organizations operating outside of their home country with protection for automobiles, property, health, liability and business pursuits Expatriate insurance

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