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 3 of 4

Discover more Topics under IC38 Life Insurance Agent Exam

Q21.
What does a death claim typically include in a life insurance policy?

a.

Refund of all premiums paid

b.

Sum assured plus accumulated bonuses, less outstanding premium payments

c.

Outstanding policy loans and interest

d.

Premiums due for the next policy term

Discuss
Answer: (b).Sum assured plus accumulated bonuses, less outstanding premium payments Explanation:A death claim in a life insurance policy typically includes the sum assured plus accumulated bonuses, less outstanding premium payments and other dues.
Q22.
When is a death claim considered "early" in a life insurance policy?

a.

When the policy is terminated within the first year

b.

When the insured dies within the first month of the policy

c.

When the policy duration is less than three years

d.

When the insured dies after the policy term has ended

Discuss
Answer: (c).When the policy duration is less than three years Explanation:A death claim is considered "early" when the policy duration is less than three years.
Q23.
What forms are typically submitted for a death claim in a life insurance policy?

a.

Claim form by the insured

b.

Certificate of policy surrender

c.

Certificate of investment

d.

Claim form by the nominee, certificate of burial or cremation, treating physician's certificate, and more

Discuss
Answer: (d).Claim form by the nominee, certificate of burial or cremation, treating physician's certificate, and more Explanation:Typically, various forms and certificates are submitted for a death claim, including a claim form by the nominee, certificate of burial or cremation, treating physician's certificate, and more.
Q24.
What happens if the insurer detects incorrect statements or material facts suppression in a death claim?

a.

The insurer pays the claim and adjusts the discrepancies later

b.

The policy continues as usual

c.

The contract is declared void, and all benefits are forfeited

d.

The insurer imposes a penalty on the beneficiary

Discuss
Answer: (c).The contract is declared void, and all benefits are forfeited Explanation:If the insurer detects incorrect statements or material facts suppression in a death claim, the contract is declared void, and all benefits under the policy are forfeited.
Q25.
Under what section of the Insurance Act, 1938 is a policy of life insurance protected from being called into question after three years from the policy's issuance date?

a.

Section 20

b.

Section 45

c.

Section 60

d.

Section 75

Discuss
Answer: (b).Section 45 Explanation:Section 45 of the Insurance Act, 1938 protects a policy of life insurance from being called into question on any ground whatsoever after the expiry of three years from the date of the policy.
Q26.
What is the maximum time period insurers have to process a death claim under a life insurance policy as per IRDAI (Protection of Policyholders' Interests) Regulations, 2017?

a.

15 days

b.

30 days

c.

45 days

d.

60 days

Discuss
Answer: (b).30 days Explanation:IRDAI (Protection of Policyholders' Interests) Regulations, 2017 require insurers to process a death claim under a life insurance policy within 30 days from the date of receipt of all relevant papers and required clarifications.
Q27.
What interest rate is applicable if a claim is ready for payment but cannot be made due to improper identification of the payee?

a.

Fixed interest rate of 5%

b.

Bank rate prevalent at the beginning of the financial year

c.

Prime lending rate of the insurer

d.

Market interest rate

Discuss
Answer: (b).Bank rate prevalent at the beginning of the financial year Explanation:If a claim is ready for payment but cannot be made due to improper identification of the payee, it shall earn interest at the rate applicable to a savings bank account with a scheduled bank, effective from 30 days following the submission of all papers and information.
Q28.
How much interest does a life insurance company need to pay on the claim amount in case of a delay in processing the claim for reasons other than improper identification?

a.

1% above the bank rate

b.

2% above the bank rate

c.

5% above the bank rate

d.

Prime lending rate of the insurer

Discuss
Answer: (b).2% above the bank rate Explanation:In case of a delay in processing a claim for reasons other than improper identification, the life insurance company shall pay interest on the claim amount at a rate which is 2% above the bank rate prevalent at the beginning of the financial year in which the claim is reviewed by it.
Q29.
What role is expected of an insurance agent in the claim process for a life insurance policy?

a.

The agent is not involved in the claim process.

b.

The agent assists in claim form submission and provides financial compensation to the beneficiary.

c.

The agent solely manages the claim settlement process.

d.

The agent helps in filling out claim forms accurately and assists in their submission.

Discuss
Answer: (d).The agent helps in filling out claim forms accurately and assists in their submission. Explanation:An agent is expected to assist in filling out claim forms accurately and aid in their submission during the claim process for a life insurance policy.
Q30.
What is the purpose of Section 45 of the Insurance Act?

a.

To set a time limit of 3 years for filing insurance claims

b.

To specify the types of insurance policies that are protected

c.

To protect the insurer against fraudulent claims

d.

To provide protection against rejection of claims by the insurer on flimsy grounds

Discuss
Answer: (d).To provide protection against rejection of claims by the insurer on flimsy grounds Explanation:The purpose of Section 45 of the Insurance Act is to provide protection against rejection of claims by the insurer on flimsy grounds. It sets a time limit of 3 years for the insurer to call a policy into question, ensuring that claims cannot be denied arbitrarily.
Page 3 of 4