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.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of L07 Life Insurance Documentation. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your L07 Life Insurance Documentation knowledge to the test? Let's get started with our carefully curated MCQs!

L07 Life Insurance Documentation MCQs | Page 8 of 11

Discover more Topics under IC38 Life Insurance Agent Exam

Q71.
How many nominees can the life assured nominate for a policy?

a.

Only one nominee is allowed

b.

Multiple nominees are not permitted

c.

One or more than one person can be nominated

d.

Nomination is not allowed

Discuss
Answer: (c).One or more than one person can be nominated Explanation:The life assured can nominate one or more than one person as nominees for a policy.
Q72.
What is the role of the nominees in a life insurance policy?

a.

Nominees become the policyholders

b.

Nominees are entitled to a valid discharge

c.

Nominees must pay the policy premiums

d.

Nominees have the right to cancel the policy

Discuss
Answer: (b).Nominees are entitled to a valid discharge Explanation:Nominees in a life insurance policy are entitled to a valid discharge and have to hold the money as a trustee on behalf of those entitled to it.
Q73.
When can a policyholder make changes to the nomination for a life insurance policy?

a.

Changes can only be made at the time of policy purchase

b.

Changes are not allowed once the policy is issued

c.

Nomination can be cancelled or changed at any time before policy matures

d.

Changes can be made only after the policy matures

Discuss
Answer: (c).Nomination can be cancelled or changed at any time before policy matures Explanation:Nomination can be cancelled or changed at any time before the policy matures, either by an endorsement or a further endorsement or a will, as the case may be.
Q74.
What right does a nominee have in a life insurance claim?

a.

A nominee has the right to the whole claim amount

b.

A nominee has no rights to the claim amount

c.

A nominee has the right to receive the policy monies from the insurer

d.

A nominee becomes the policyholder after the death of the life assured

Discuss
Answer: (c).A nominee has the right to receive the policy monies from the insurer Explanation:A nominee has the right to receive the policy monies from the insurer in the event of the death of the life assured. However, the money would belong to the legal heir.
Q75.
In an absolute assignment, who has control over the policy's rights and benefits?

a.

The assignor

b.

The life assured

c.

The insurance company

d.

The assignee

Discuss
Answer: (d).The assignee Explanation:In an absolute assignment, the assignee has control over the policy's rights and benefits.
Q76.
What is the primary scenario where absolute assignment is commonly used?

a.

When the policyholder wants to change the nomination

b.

When the policy is mortgaged for a housing loan

c.

When the assignor wants to maintain some control over the policy

d.

When the assignee agrees to reversion

Discuss
Answer: (b).When the policy is mortgaged for a housing loan Explanation:Absolute assignment is more commonly seen when the policy is mortgaged against a debt assumed by the policyholder, such as a housing loan.
Q77.
What is one of the necessary conditions for a valid assignment?

a.

The assignment must be opposed to the law in force

b.

The assignee can do another assignment but cannot change the nomination

c.

The assignor must have an absolute right and title to the policy

d.

The assignor must be the life assured

Discuss
Answer: (c).The assignor must have an absolute right and title to the policy Explanation:One of the necessary conditions for a valid assignment is that the assignor must have an absolute right and title or assignable interest to the policy being assigned.
Q78.
Can the assignee change the nomination of the policy?

a.

Yes, the assignee can change the nomination at any time.

b.

No, the assignee cannot change the nomination because the assignee is not the life assured.

c.

The assignee can only change the nomination with the consent of the assignor.

d.

The nomination can never be changed after assignment.

Discuss
Answer: (b).No, the assignee cannot change the nomination because the assignee is not the life assured. Explanation:No, the assignee cannot change the nomination because the assignee is not the life assured.
Q79.
What is the requirement for a valid assignment of a life insurance policy?

a.

The assignee's signature on the policy

b.

The policyholder's consent

c.

At least one witness

d.

The insurer's approval

Discuss
Answer: (c).At least one witness Explanation:A valid assignment of a life insurance policy must be signed by the assignor and attested by at least one witness.
Q80.
Can a life insurance policy be assigned partially?

a.

Yes, it can be assigned in part.

b.

No, it can only be assigned as a whole.

c.

Partial assignment is allowed only with the insurer's approval.

d.

Partial assignment is not possible for life insurance policies.

Discuss
Answer: (a).Yes, it can be assigned in part. Explanation:A life insurance policy can be assigned wholly or partially.
Page 8 of 11