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Lic Agent Exam Model Question Paper



The LIC Agent Exam, officially known as the IRDA IC-38 Exam, is essential for those aspiring to become Life Insurance Corporation (LIC) agents in India. Here's a comprehensive guide to understanding the exam, including its structure, syllabus, preparation resources, and application process.

Exam Structure

  1. Sections: The exam is divided into three main sections:

    • Insurance and Financial Market Awareness
    • Fundamentals of Life Insurance
    • Regulatory Aspects of Insurance

  2. Format: The exam typically consists of multiple-choice questions (MCQs).

  3. Duration: The total time allocated for the exam is usually around 1 hour.

  4. Passing Criteria: A minimum of 35% is required to pass the exam.

Syllabus

  1. Insurance and Financial Market Awareness:

    • Basics of Insurance
    • Types of Insurance
    • Insurance Terminology

  2. Fundamentals of Life Insurance:

    • Life Insurance Products and Services
    • Policy Documentation
    • Life Insurance Underwriting

  3. Regulatory Aspects of Insurance:

    • IRDA Regulations
    • Consumer Protection Act
    • AML (Anti Money Laundering) guidelines

Preparation Resources

  1. Study Materials:

    • IC-38 Study Guide: Available from the Insurance Institute of India and other online educational platforms.
    • Textbooks and Reference Books: Books specifically designed for the IC-38 exam, covering all sections comprehensively.

  2. Mock Tests and Previous Year Papers:

    • TestMocks: Offers mock tests and model question papers for the LIC Agent Exam in various languages​ (TestMocks)​​ (TestMocks)​.
    • AmbitiousBaba: Provides PDFs of IC-38 exam questions to practice​ (Ambitious Baba)​.
    • Youth4Work: Online practice tests for the IC-38 Life Insurance Agents exam​ (TestMocks)​.

  3. Online Courses:

    • Udemy and Coursera: These platforms offer courses on insurance and exam preparation.

Application Process

  1. Eligibility:

    • Candidates must have completed a minimum of 10th standard (SSC/Matriculation) and be at least 18 years old.

  2. Application Steps:

    • Register: Visit the official LIC website or the IRDA portal to register for the exam.
    • Training: Complete the mandatory 25-hour pre-licensing training from an approved institution.
    • Exam Application: Fill out the application form and pay the exam fee online.
    • Admit Card: Download the admit card once it is available.

Tips for Success

  1. Understand the Syllabus: Thoroughly go through the syllabus and focus on each section.
  2. Regular Practice: Take mock tests regularly to understand the exam pattern and manage time effectively.
  3. Stay Updated: Keep abreast of the latest insurance regulations and market trends.

For detailed information and to apply for the exam, visit the IRDA official website or the LIC official website.

Details of Below Practice Set

Duration : 60 Minutes
Negative Marking : 0%
Useful for LIC Agent Exam exam
Medium of Practice Set English
Cost of this Practice Set : Rs 0
This Practice set consist of following topics : General Studies (45) | Total Question 45
  • Do not use Back and Refresh Button
  • Cost of Practice Set : Rs. 0
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Lic Agent Exam Model Question Paper
Q.1

Insurance works on the principle of

A Trust
B Sharing
C Randomness
D All of the above
Q.2

when an adverse happening is likely

A When an adverse happening is unlikely
B When an adverse happening is certain
C In all the above three situations
D Insurance benefits replace
Q.3

Insurance benefits replace

A All physical losses, in full
B All physical losses, partly
C All monetary losses, in full
D The monetary losses, but only to some extent
Q.4

Which one of the following statements is correct?

A People hesitate to buy life insurance because they are not aware of their needs
B People hesitate to buy life insurance because they prefer to enjoy the present
C Both the statements are correct
D Both the statements are wrong
Q.5

Which is the right time for taking life insurance?

A When you are about to get married
B Soon after you have got married
C Just when you are joined a new job
D All the three ‘times’ are right
Q.6

Retention of risk may be done conveniently by

A Large corporations
B Small companies
C Single individuals
D None of the three
Q.7

A valuation is done by a life insurer because

A It is a statutory requirement
B It is necessary to be able to declare dividends to shareholders
C It tells the insurer how well it is managing the business
D All of the above
Q.8

The reason for charging level premiums is

A Risk increases as age increases
B It is convenient to the policyholder
C It is convenient to the insurer
D All the above reasons
Q.9

What does a premium depend upon?

A The place of worship visited by the person to be insured
B The state of health of the policyholder
C The decision of the underwriter
D The report of the agent
Q.10

State which one of the following statements is correct?

A In group insurance, a single policy is issued covering many persons
B A master policy covers servants of a master
C Both the statements above are correct
D Both the statements above are wrong
Q.11

Which one of the following statements is correct?

A In a limited payment policy, there is a maximum limit to the SA
B In a limited payment policy, there is a maximum limit to the term
C Both the statements above are wrongd
D Both the statements above are correct
Q.12

Which one of the following statements is true with regard to Children’s policies?

A On vesting, the insured person has an option to change the term of the policy
B On vesting the insured person has an option to increase the SA
C Both the statements above are wrong
D Both the statements above are correct
Q.13

 Which of the following could be the basis of the cover in a group policy?

A Height of the life insured
B Age of the life insured
C Size of the insureds family
D All the three above
Q.14

Which one of the following statements is true with regard to Children’s policies?

A On vesting, the insured person has an option to change the term of the policy
B On vesting the insured person has an option to increase the SA
C Both the statements above are wrong
D Both the statements above are correct
Q.15

Every plan of insurance is a combination of two basic plans

A Every plan of insurance is a combination of two basic plans
B The name given to a plan indicates the benefits available under the plan
C Both the statements above are correct
D Both the statement s above are wrong
Q.16

Which one of the following statements is correct?

A Underwriting is done only when there is a medical examination
B Medical examination is necessary before a policy can be issued
C Both the statements above are correct
D Both the statements above are wrong
Q.17

Which one of the following statements is correct?

A The underwriter determines the premium to be charged
B The underwriter is an employee of the insurer
C Both the statements above are correct
D Both the statements above are wrong
Q.18

Which one of the following statements is correct?

A If the underwriter feels that the risk is more, he will accept at
B If the underwriter feels that the risk is more, he may impose a lien
C Both the statements above are correct
D Both the statements above are wrong
Q.19

A money back policy for SA. of Rs.50,000/- Matured after 25 years.Survival benefits of 15% each had been paid at the end of 5th, 10th, 15th,and 20th years. Bonus had accrued at Rs.965/- per Rs.1000/- SA. Interim bonus @ Rs.25/- per thousand SA is payable. What is the maturity claim amount?

 

A 68250
B 69500
C 98250
D 99500
Q.20

Find out surrender value on the basis of following data (the answer to be rounded off to the next lower rupee). SA Rs.30, 000 DOC- 15.6.1992, Endowment with profit – 30 years Due date of last premium paid 15-06-2007 mode half yearly Accrued bonus Rs.750/- per thousand SA. SV factor 23%

 

A 3670
B 3765
C 8740
D None of these
Q.21

A proposal for SA of Rs. 10 lakhs with DAB for monthly mode under SSS. Proposer had a previous policy of Rs. 5 lakhs with DAB. Proposal was accepted with health extra of Rs. 2.75 per thousand SA premium for DAB Re 1 per thousand. 5% extra for monthly mode. large SA rebate of Rs 2/- per thousand for 1 lakh and above. Tabular premium Rs. 48.20 maximum total SA on which DAB is allowed is Rs. 10/- lakhs. Find monthly (SSS) premium, rounded off to the next higher rupee

A 4102
B 4121
C 4183
D 4195
Q.22

State which one of the following statements is correct?

A The tax provisions are the same for all kinds of savings
B The tax provisions are included in the Constitution
C Both the statements above are correct
D Both the statements above are wrong
Q.23

State which one of the following statements is correct?

A The Ombudsman"e;s authority is limited to claims matters only
B The Ombudsman is not a judicial authority
C Both the statements above are correct
D Both the statements above are wrong
Q.24

State which one of the following statements is correct?

A The social sector is not only in the urban areas
B The social sector includes the unorganized sector
C Both the statements above are correct
D Both the statements above are wrong
Q.25

State which one of the following statements is correct

A When vital information is not disclosed, the policyholder is benefited
B When a claim is repudiated, the agent’s trustworthiness is affected
C Both the statements above are correct
D Both the statements above are wrong
Q.26

Which of the following statements is correct?

A An insurance agent has fixed working hours
B An insurance agent has to mark his attendance in office every day
C An insurance agent works according to his schedule
D An insurance agent cannot do any other work
Q.27

State which one of the following statements is correct

A Life insurance is the best savings scheme for all persons
B Life insurance is the best investment scheme for young persons
C Both the statements above are correct
D Both the statements above are wrong
Q.28

which of the following statements is correct

A In ULIPs the insurance cover must be a minimum multiple of the premium
B ULIPs can be surrendered after two years
C Both the above statements are correct
D Both the above statements are wrong
Q.29

Which one of the following statements is correct?

A Foreclosure action cannot be taken till a notice is served on the policyholder
B When a foreclosure action is taken, nothing is payable to the policyholder
C Both the statements above are correct
D Both the statements above are wrong
Q.30

The date of issue of the FPR indicates

A The date when the risk effectively begins
B The date when the next premium falls due
C The date when the policy will commence
D None of the above
Q.31

Which one of the following statements is correct?

A Maturity claim cheques are paid to the trustees in a MWP Act case
B Maturity claim cheques are paid to the beneficiaries in a MWP Act case
C Both the statements above are correct
D Both the statements above are wrong
Q.32

31 If a claim is made in January 2007 under a policy, which commenced in May 2002, stating that the life insured had died in April 2004,

A Section 45 of the Act will not apply
B The claim can be treated as an early claim
C Foul play must be suspected
D All the three statements above are correct
Q.33

Which one of the following statements is correct?

A The schedule of a policy is not altered after the policy is issued
B Changes in the terms of the policy are made through endorsements
C Both the statements above are correct
D Both the statements above are wrong
Q.34

Which one of the following statements is correct?

A In the case of SSS policies, renewal premium receipts are issued
B In the case of SSS policies, FPRs are issued
C Both the statements above are correct
D Both the statements above are wrong
Q.35

Which one of the following statements is correct?

A Assignee is free from the assignor’s obligations under the policy
B A nomination is automatically cancelled when a loan is taken under the policy
C Both the statements above are correct
D Both the statements above are wrong
Q.36

Which one of the following statements is correct?

A The beneficiaries under the MWP Act can be any member of the family
B A policy can be taken under the MMWP Act for the benefit of parents
C Both the statements above are correct
D Both the statements above are wrong
Q.37

Which one of the following statements is correct?

A Foreclosure can be done only with the consent of the policyholder
B Foreclosure can be done only after informing the policyholder
C Both the statements above are correct
D Both the statements above are wrong
Q.38

Which one of the following statements is correct?

A Revivals are not done unless the entire outstanding premium is paid
B Revivals are not done unless the underwriter agrees
C Both the statements above are correct
D Both the statements above are wrong
Q.39

Which one of the following statements is correct?

A The beneficiaries under the MWP Act can be any member of the family
B A policy can be taken under the MMWP Act for the benefit of parents
C Both the statements above are correct
D Both the statements above are wrong
Q.40

Which one of the following statements is correct?

A A presumption of death is not the same as proof of death
B Presumption of death allows inheritance of property
C Both the statements above are correct
D Both the statements above are wrong
Q.41

When does a claim arise under an insurance policy?

A Whenever the policyholder feels the need for money
B When the insured events happen
C When a premium is not paid
D Whenever any of the three things mentioned above happen
Q.42

Which one of the following statements is correct?

A A policy reported to be lost, may actually have been assigned
B A policy has no value after the payment of survival benefits
C Both the statements above are correct
D Both the statements above are wrong
Q.43

Which one of the following statements is correct?

A The foreign exchange regulations apply if the life insured is a non-resident
B The foreign exchange regulations apply if the claimant is a non-resident
C Both the statements above are correct
D Both the statements above are wrong
Q.44

State which of the following statements is correct

A ULIPs provide for flexibility
B ULIPs are better than traditional policies
C Both the above statements are correct
D Both the above statements are wrong
Q.45

State which of the following statements is correct

A In ULIPs, the offer bid spread is the difference between the two prices
B b In ULIPs, the offer bid spread, will in some cases be zero
C Both the above statements are correct
D Both the above statements are wrong
Best of Luck