L09 Life Insurance Claims MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on L09 Life Insurance Claims, 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 L09 Life Insurance Claims 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 L09 Life Insurance Claims mcq questions that explore various aspects of L09 Life Insurance Claims problems. Each MCQ is crafted to challenge your understanding of L09 Life Insurance Claims 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 L09 Life Insurance Claims 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 L09 Life Insurance Claims. 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 L09 Life Insurance Claims knowledge to the test? Let's get started with our carefully curated MCQs!

L09 Life Insurance Claims MCQs | Page 2 of 4

Discover more Topics under IC38 Life Insurance Agent Exam

Q11.
How is a surrender value payment different from other claim payments in life insurance?

a.

Surrender value payments have no penalty for premature withdrawal

b.

Surrender value payments are based on medical records

c.

Surrender value payments are automatically paid to the policyholder

d.

Surrender value payments are triggered by the decision of the life assured

Discuss
Answer: (d).Surrender value payments are triggered by the decision of the life assured Explanation:Surrender value payments in life insurance are different from other claims because they are triggered by the decision of the policyholder or assignee to cancel the contract and withdraw the due amount. There is typically a penalty for premature withdrawal.
Q12.
How are critical illness claims typically ascertained in life insurance?

a.

Based on the decision of the insurer

b.

Based on dates specified in the policy

c.

Based on medical and other records provided by the policyholder

d.

Based on the date of maturity

Discuss
Answer: (c).Based on medical and other records provided by the policyholder Explanation:Critical illness claims in life insurance are typically ascertained based on the medical and other records provided by the policyholder in support of their claim.
Q13.
What happens to the insurance cover under a life insurance contract when a death claim is paid?

a.

The insurance cover continues

b.

The insurance cover is terminated

c.

The policyholder must pay higher premiums

d.

The policyholder receives a bonus

Discuss
Answer: (b).The insurance cover is terminated Explanation:When a death claim is paid in a life insurance contract, the insurance cover is terminated, and no further insurance cover is available.
Q14.
Why is it important to educate policyholders about conditional assignments in critical illness benefits?

a.

To encourage more policyholders to make assignments

b.

To prevent policyholders from making assignments

c.

To ensure the critical illness benefit serves its intended purpose

d.

To provide more benefits to policyholders

Discuss
Answer: (c).To ensure the critical illness benefit serves its intended purpose Explanation:Educating policyholders about conditional assignments in critical illness benefits is important to ensure that the benefit serves its intended purpose and that all benefits are not assigned away.
Q15.
What are survival benefit payments in a life insurance policy?

a.

Payments made to the nominee upon the death of the insured

b.

Periodical payments made by the insurer to the insured during the policy term

c.

Payments made to the insured in case of critical illness

d.

Payments made to the insured upon policy surrender

Discuss
Answer: (b).Periodical payments made by the insurer to the insured during the policy term Explanation:Survival benefit payments are periodical payments made by the insurer to the insured at specified times during the term of the policy.
Q16.
What is the surrender value of a life insurance policy?

a.

The value of investments made by the insured

b.

The total sum assured in the policy

c.

The amount paid to the nominee upon the death of the insured

d.

The value of the policy when voluntarily terminated before maturity

Discuss
Answer: (d).The value of the policy when voluntarily terminated before maturity Explanation:The surrender value of a life insurance policy reflects the value of the policy when voluntarily terminated before maturity. It depends on various factors such as sum assured, bonuses, policy term, and premiums paid.
Q17.
When can a life insurance policy be surrendered?

a.

Anytime during the policy term

b.

Only if it has no paid-up value

c.

Only at the end of the policy term

d.

Only if the insured is critically ill

Discuss
Answer: (b).Only if it has no paid-up value Explanation:A life insurance policy can be surrendered only if it has acquired paid-up value.
Q18.
What is the purpose of a critical illness rider in a life insurance policy?

a.

To provide additional coverage for accidental death

b.

To ensure the insured receives regular income during retirement

c.

To pay the insured in case of policy surrender

d.

To provide a specified amount in the event of diagnosis of a critical illness

Discuss
Answer: (d).To provide a specified amount in the event of diagnosis of a critical illness Explanation:The critical illness rider in a life insurance policy provides a specified amount to the insured in the event of the diagnosis of a critical illness as per the terms and conditions.
Q19.
What happens to the policy contract when a maturity claim is paid?

a.

The policy continues

b.

The policy is surrendered

c.

The policy is terminated

d.

The policyholder must pay higher premiums

Discuss
Answer: (c).The policy is terminated Explanation:When a maturity claim is paid in a life insurance policy, the policy contract is terminated.
Q20.
What is a death claim in a life insurance policy?

a.

A claim made by the policyholder for a refund of premiums paid

b.

A claim made by the beneficiary or legal heir of the insured upon the insured's death

c.

A claim made by the insurer for outstanding premium payments

d.

A claim made by the policyholder upon policy surrender

Discuss
Answer: (b).A claim made by the beneficiary or legal heir of the insured upon the insured's death Explanation:A death claim in a life insurance policy is a claim made by the beneficiary or legal heir of the insured upon the insured's death.
Page 2 of 4