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 9 of 11

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Q81.
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.
Q82.
What is the consequence if the policyholder fails to give notice of the assignment to the insurer?

a.

The assignment is automatically void.

b.

The assignee becomes the policyholder.

c.

The assignment remains valid.

d.

The insurer must approve the assignment without notice.

Discuss
Answer: (a).The assignment is automatically void. Explanation:The assignment will not be valid if the policyholder fails to give notice of the assignment to the insurer.
Q83.
When can an insurer refuse to accept an assignment of a life insurance policy?

a.

Only if the policyholder does not provide notice

b.

If the insurer believes the assignment is not in the interest of the policyholder

c.

If the assignee is a family member of the policyholder

d.

Insurers are not allowed to refuse assignments

Discuss
Answer: (b).If the insurer believes the assignment is not in the interest of the policyholder Explanation:An insurer may refuse to accept an assignment if it has sufficient reason to believe that the assignment is not bona fide or not in the interest of the policyholder or the public interest.
Q84.
What is the maximum time frame within which an insurer must communicate the reasons for refusing an assignment?

a.

10 days from the date of notice

b.

30 days from the date of notice

c.

60 days from the date of notice

d.

90 days from the date of notice

Discuss
Answer: (b).30 days from the date of notice Explanation:The insurer must communicate the reasons for refusing an assignment to the policyholder not later than thirty days from the date of the policyholder giving notice of such transfer or assignment.
Q85.
What is the purpose of issuing a duplicate policy in life insurance?

a.

To terminate the existing policy

b.

To absolve the insurance company of its liability

c.

To replace a lost or destroyed policy document

d.

To apply for a policy loan

Discuss
Answer: (c).To replace a lost or destroyed policy document Explanation:A duplicate policy in life insurance is issued to replace a lost or destroyed policy document, but it doesn't absolve the insurance company of its liability under the contract.
Q86.
Under what circumstances might a life insurance company require an indemnity bond or surety for issuing a duplicate policy?

a.

When the policyholder wants to surrender the policy

b.

When the policyholder wishes to change the policy's beneficiary

c.

When the policyholder claims that the policy has been lost

d.

When the policyholder wants to alter the policy terms

Discuss
Answer: (c).When the policyholder claims that the policy has been lost Explanation:An indemnity bond with or without surety may be required when the policyholder claims that the policy has been lost and requests a duplicate policy.
Q87.
When are policy alterations typically permitted in life insurance?

a.

Alterations are always allowed without any restrictions.

b.

Alterations can be made during the first year of the policy only.

c.

Alterations require consent from the insurer and assured.

d.

Alterations are permitted only for policies with compulsory changes.

Discuss
Answer: (c).Alterations require consent from the insurer and assured. Explanation:Policy alterations are typically permitted with the consent of both the insurer and the assured. They may not be allowed during the first year, except for certain compulsory changes.
Q88.
Which of the following is considered a compulsory alteration in a life insurance policy?

a.

Changing the policy's premium payment mode

b.

Changing the beneficiary's name

c.

Adding double accident benefit

d.

Altering the policy's term

Discuss
Answer: (a).Changing the policy's premium payment mode Explanation:Changing the premium payment mode is an example of a compulsory alteration in a life insurance policy.
Q89.
In case of a high-value payment, what additional step may be required when issuing a duplicate policy due to a lost document?

a.

A health check-up

b.

Filing a police report

c.

Placing an advertisement in a national newspaper

d.

Seeking consent from the insurance regulator

Discuss
Answer: (c).Placing an advertisement in a national newspaper Explanation:In the case of a high-value payment and to ensure there is no objection, the insurance company may insist on placing an advertisement in a national newspaper reporting the loss before issuing a duplicate policy.
Q90.
What is typically required when a policyholder requests an alteration in a life insurance policy?Which of the following policy alterations does not generally involve an increase in the risk?

a.

A detailed health check-upChanging the mode of payment of premium

b.

Consent from the insurance regulatorReducing the sum assured

c.

Cancellation of the existing policyChanging from without profits to with profits plan

d.

Placement of a suitable endorsement on the policyIncreasing the sum assured

Discuss
Answer: (b).Placement of a suitable endorsement on the policyChanging the mode of payment of premium Explanation:Alterations in a life insurance policy may require placing a suitable endorsement on the policy or a separate paper, depending on the type of alteration.Changing the mode of payment of premium is an alteration that typically does not involve an increase in the risk.
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