LIC Assistant flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Insurable Interest
- A legal right or relationship such that the policyholder benefits from the continued life of the insured and suffers loss from their death; required at proposal time in life insurance.
- Utmost Good Faith
- The principle requiring both insurer and proposer to disclose all material facts honestly; breach by the proposer can make the contract voidable.
- Section 45 Insurance Act
- After three years from issuance, revival, or rider addition, a life policy cannot be called in question on any ground, including fraud or misstatement.
- First Premium Receipt
- Document issued on receipt of the first premium; it evidences commencement of risk and the date from which the policy is in force.
- Mortality Table
- A statistical table showing age-wise death rates used to calculate risk premiums; higher age means higher mortality and a higher premium.
- Endowment Plan
- A life insurance plan that pays the sum assured plus bonuses on death before maturity, or on survival to the maturity date.
- Money-Back Policy
- A plan that pays a fixed percentage of the sum assured at regular intervals during the term, with the balance and bonuses paid at maturity.
- ULIP
- Unit Linked Insurance Plan: part of each premium buys units in a fund whose value moves with NAV; IRDAI mandates a five-year lock-in.
- Annuity Plan
- A product that converts a lump sum into regular income; immediate annuities begin at once, deferred annuities begin after a waiting period.
- Free-Look Period
- A period of 15 days (30 days for distance marketing) from receipt of the policy document during which it can be cancelled for a refund.
- Whole Life Policy
- A plan covering the life assured for the entire lifetime, paying the sum assured on death whenever it occurs, with loan and surrender facilities.
- Rider
- An add-on benefit attached to a base policy for an extra premium; it cannot be bought alone or continue after the base policy ends.
- Critical Illness Rider
- Pays a lump sum on diagnosis of a listed illness such as cancer or heart attack, in addition to the base sum assured.
- Premium Waiver Benefit Rider
- Waives future premiums of the base policy and attached riders if the specified person dies or becomes disabled.
- Accident Benefit Rider
- Provides an additional sum on accidental death and a benefit on permanent disability, subject to age and sum-assured limits.
- Term Assurance Rider
- An add-on paying an extra death benefit equal to the rider sum assured, capped by the insurer's maximum limit.
- Insurance Ombudsman
- A quasi-judicial authority that hears policyholder complaints up to a monetary limit and can award compensation; its decision binds the insurer if accepted.
- Section 39 Nomination
- A provision letting the policyholder name a person to receive the policy money; the nominee holds it as trustee for legal heirs unless a beneficial nominee is named.
- Section 38 Assignment
- A provision allowing transfer of policy rights to another person, either conditionally or absolutely, by endorsement on the policy.
- Policy Revival
- Restoring a lapsed policy within five years of the first unpaid premium by paying arrears with interest and proving continued insurability.
- Bima Bharosa
- IRDAI's online grievance redressal portal where policyholders can escalate complaints unresolved by the insurer within thirty days.
- Early Claim
- A death claim arising within three years of commencement or revival; it triggers detailed investigation and requires additional documents.
- Surrender Value
- The amount payable when a policy with acquired value is terminated early; guaranteed surrender value is a set percentage of premiums paid.
- Policy Loan
- A loan against a policy that has acquired surrender value, usually up to 80-90 percent of that value, with interest charged.
- Paid-Up Value
- The reduced sum assured when premiums stop after the policy acquires value: sum assured multiplied by premiums paid divided by premiums payable.
- Maturity Claim
- The payment on survival to the end of the policy term, comprising the sum assured plus vested bonuses, made after surrender of the policy document.
- Compound Interest Formula
- CI equals P times (1 plus R over 100) raised to T, minus P; for two years the gap over simple interest is P times R over 100 squared.
- Work Together Formula
- If A finishes a job in a days and B in b days, working together they finish it in ab divided by (a plus b) days.
- Train Crossing Platform
- Time equals the sum of train length and platform length divided by the train's speed, with consistent units.
- Combination Formula
- nCr equals n factorial divided by r factorial times (n minus r) factorial; order does not matter in combinations.
- Syllogism Rule
- A conclusion follows only if it is true in every possible Venn diagram consistent with the premises; otherwise it does not follow.
- Circular Seating Facing Centre
- When people face the centre, a person's left is clockwise and right is anticlockwise; fix one seat and place others relative to it.