L07 Life Insurance Documentation MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on L07 Life Insurance Documentation, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our L07 Life Insurance Documentation MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of L07 Life Insurance Documentation mcq questions that explore various aspects of L07 Life Insurance Documentation problems. Each MCQ is crafted to challenge your understanding of L07 Life Insurance Documentation principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our L07 Life Insurance Documentation MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

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L07 Life Insurance Documentation MCQs | Page 2 of 11

Discover more Topics under IC38 Life Insurance Agent Exam

Q11.
What aspects related to personal financial planning may be asked in a Life Insurance Proposal Form?

a.

Hobbies and interests of the policyholder

b.

Work span and projected income of the insured

c.

Favorite vacation destinations of the proposer

d.

Pet ownership and preferences

Discuss
Answer: (b).Work span and projected income of the insured Explanation:A Life Insurance Proposal Form may ask about the work span, projected income, and expenses of the insured as part of their personal financial planning.
Q12.
Why do life insurers collect age proofs for life insurance applicants?

a.

To promote transparency in insurance contracts

b.

To verify the correct age of the insured

c.

To determine the policy premium amount

d.

To assess the creditworthiness of the applicant

Discuss
Answer: (b).To verify the correct age of the insured Explanation:Age proofs are collected to verify the correct age of the insured, as age is a critical factor for assessing the risk profile.
Q13.
What information should be mentioned in the Agent's Confidential Report for life insurance underwriting?

a.

Family vacation plans of the policyholder

b.

Details of the insured's favorite hobbies

c.

Material facts relevant to risk assessment

d.

The policy premium payment schedule

Discuss
Answer: (c).Material facts relevant to risk assessment Explanation:The Agent's Confidential Report should include material facts relevant to risk assessment, such as health, habits, occupation, income, and family details.
Q14.
What are insurance proposals that are underwritten and accepted without requiring a medical examination typically called?

a.

Medical cases

b.

Non-moral hazard cases

c.

Non-medical cases

d.

Special underwriting cases

Discuss
Answer: (c).Non-medical cases Explanation:Proposals that are underwritten and accepted for insurance without a medical examination are known as non-medical cases.
Q15.
When is a medical examiner's report typically required in the underwriting process of life insurance?

a.

For all insurance proposals

b.

When the proposer has a high sum assured

c.

When the proposer is of a young age

d.

When the proposer is a non-smoker

Discuss
Answer: (b).When the proposer has a high sum assured Explanation:A medical examiner's report is typically required when the sum proposed or the age of the proposed life is high or when certain characteristics revealed in the proposal call for examination and a report by a medical examiner.
Q16.
How is the death claim payable when more than one nominee is appointed?

a.

The death claim is paid to the nominee with the highest priority

b.

The death claim is paid to all nominees jointly

c.

The death claim is paid to the survivor or survivors among the nominees

d.

The death claim is not payable to the nominees

Discuss
Answer: (b).The death claim is paid to all nominees jointly Explanation:When more than one nominee is appointed, the death claim will be payable to them jointly, meaning it is paid to all the nominees together.
Q17.
How are nominations made after the commencement of the policy made effective?

a.

Nominations are effective immediately

b.

Nominations are not allowed after the policy has commenced

c.

Nominations have to be communicated to the insurers to be effective

d.

Nominations can only be made through a will

Discuss
Answer: (c).Nominations have to be communicated to the insurers to be effective Explanation:Nominations made after the commencement of the policy have to be intimated to the insurers to be effective.
Q18.
According to Section 39(11) of the Insurance Act, who is entitled to the proceeds and benefits of a policy if the policyholder dies after the policy matures but before the proceeds are received?

a.

The insurance company

b.

The legal heirs of the policyholder

c.

The nominee

d.

The appointee

Discuss
Answer: (c).The nominee Explanation:According to Section 39(11) of the Insurance Act, if the policyholder dies after the maturity of the policy but the proceeds and benefits of the policy have not been made to him because of his death, his nominee shall be entitled to the proceeds and benefits of his policy.
Q19.
How is assignment of a life insurance policy defined?

a.

The transfer of the policyholder's rights, title, and interest in the policy to another person

b.

The cancellation of the policy

c.

The surrender of the policy for its cash value

d.

The termination of the policy

Discuss
Answer: (a).The transfer of the policyholder's rights, title, and interest in the policy to another person Explanation:Assignment of a life insurance policy is defined as the transfer of the policyholder's rights, title, and interest in the policy to another person.
Q20.
How is assignment of a life insurance policy defined?What is the person who transfers the rights, title, and interest in the policy called in an assignment?

a.

The transfer of the policyholder's rights, title, and interest in the policy to another personThe assignee

b.

The cancellation of the policyThe nominee

c.

The surrender of the policy for its cash valueThe beneficiary

d.

The termination of the policyThe assignor

Discuss
Answer: (b).The transfer of the policyholder's rights, title, and interest in the policy to another personThe assignor Explanation:Assignment of a life insurance policy is defined as the transfer of the policyholder's rights, title, and interest in the policy to another person.The person who transfers the rights, title, and interest in the policy is called the assignor.
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