Question Answer FINAL

Sr. No. Chapter No Question Ans Option 1 Ans Option 2 Ans Option 3 Ans Option 4

Correct Ans /

option

Learning Objective Explation for correct answer Page No. Remarks

1

1

Sanjeev is an insurance expert who has rich experience in determining premium levels for product, what is

his profile like

an actuary loss adjuster risk mager underwriter 1 Actuaries Works on statistical data to arrive on mortality , premium table etc

Pg :27

21

The Non Government organizations(NGO) helps the

insurance industry immensely in

Promotiol activities

Drafting new regulations

Linking buyers and sellers

Linking third party

administrators 3 NGO

NGO spread Awareness as well as In rural on deeper Penetration through Micro

Insurance Pg :27

3

1 Investment by foreign direct investors in to Insurance co's is restricted to 12% 25% 40% 26% 4 FDI

On recommendation of Mahlotra Committee , Under Joint venture , the foreign player can not have more than

26% stake

Pg :24

4

1 Which market does the Micro Insurance Concentrate on ?

People with large families

People with Low Income

Government Employees

people living in Metro cities 2 Micro

Insurance

Micro Insurance is for Low Income Group . Product ranges from 5K to 50 K

.Premium is as low as Rs 15 and can be collected weekly

Pg 24

5 1 What facility do the insurer use to cover Risk beyond their Limits ? Re Insurance Banca assurance NGO RBI 1 Reinsurance Reinsurance company is the Insurer for

the Insurance Company Pg :26

61 what is the max level under which

micro insurance can be done 5000 25000 50000 1 lac 3 Micro Insurance

Micro Insurance guidelines was issued in 2005 by IRDA . Minimum SA is Rs 5000

& Max is Rs 50,000Pg :25

71 Who is the customer of a Re insurer High Networth

IndividualInsurance

Companies

Licenced Insurance

Agents

Non Government Organisation

2 Reinsurance Reinsurance company is the Insurer for the Insurance Company

Pg :26

81

Insurance company transfers the insurance which cannot bear by them

toBancassurance Reinsurance TPAs Actuaries 2 Reinsurance A re insurance company is the Insurer for

Insurance company Pg :26

9 1What is the main objective of taking

the life insurance policy Tax benefit Savings Investment Protection 4

10 1What is the maximum sum assured

under a micro insurance 10000 25000 50000 100000 3

11

1

Varun wishes to pursue a career in insurance and wishes to be in a

department which calculates the level of premium. In which department

should he join?

Actuary Underwriter Claim Department Accounts 1

12

1According to Insurance Brokers

Association of India, what is the most appropriate relationship between

Insurer and Broker?

Insurance broker represent the client and the

insurer remunerate the

broker

The client represent the

broker and the insurer

remunerate the broker

Insurer represent both

client and broker

remuneration

Broker only service the

client1

131

If a client needs Mediclaim to cover health insurance which insurer he

needs to apply.Non life insurer Life Insurance Reinsurer Any Insurer 1

141

Insurance agents are

Who work only for insurance

company

Who work for customers Intermediaries

Who works for their own interest.

3

151

Any assets, which are no longer suitable or are earning fewer returns

than expected, should beReviewed

Cashed in for investment into

other assets2

161

If a client wants to compare between all fincial products then the best

person he can approach isIndividual agent Corporate agent Bank Broker 4

171

If the customer wants to seek information about all products, then

he can avail the services ofAgent Broker NGO Bank 1

181

To identify suitable products their main features and their tax treatments

is the role of:Agent Proposer Policy Holder Insured person 1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

19

1The main purpose of buying an

insurance policy normally is

to develop the habit of savings

to obtain Income Tax benefits

for protection of fincial security

to obtain loan as when

required to meet fincial obligations

3

201 The basic elements of life insurance

are:

Accident benefit and riders.

Pension and monthly income.

Death cover and maturity

benefit.

Interest yield and variable

income3

21

1

Transactions of sale of life insurance products to the insurable clients are

viewed in the Insurance market mostly as

Sales transactions

Relationship transactions

Monetary transactions

Assured transactions 2 Discuss

221 A Professiol insurance market

carries…..1. Need – Based

Selling2. Product –

Based Selling3. Commission – Based Selling

4. Company – Based Selling. 1

23

1 Insurance Market divided into1. Endowment

and Money Back Insurance

2. Life and General (non-life) Insurance

3. Government and Private Insurance Markets

4. Health and Saving

Insurance Markets

2

24

1 What is Bancassurance?

1. Giving insurance policies to

Banks.

2. Selling insurance

policies through Banks.

3. Giving guarantee to policies by

Banks.

4. None of the above. 2

251 Which of the following do not include

the channel of indirect marketing?1. individual

agents2.

bancassurance3. insurance

brokers4. through

internet 3 Discuss

26

1 The business of Insurance is connected with................

1. physical values of assets

2. economic values of assets

3. metaphysical values of

assets

4. market values of

assets2

271 Human beings need life insurance

because..................1. death is

certain2. death is uncertain

3. the timing of death is

uncertain

4. Death is the solution. 3

28

1 The timing of death is uncertain, so when one should take life insurance?

1. At the time of uncertainty

2. At an early age

3. Anytime in life

4. At the time when Advisor

takes the decision

2

291 Insurance Protects which of the

following?

1. The life of the person paying compensation

2. The risk retained person

's family

3. The fincial goal of the

insured

4. The life of the nominee 3

30

1 Agent who is a licensed intermediary is actually is ?

1. A legal person to act on behalf of the re-insurer

2. B.A legal person to act on

behalf of the insurer

3. C.A legal person to act

on behalf of the contract

4. D. An authorized

agent to act on behalf of the

legal company

2

31 1 E-sales refers to sales of insurance products through

1. Insurance brokers.

2. Bancassurance.

3. Individual agents. 4. Internet. 4

321 Insurance business is classified into

three main types:1. Life, Non –life, Micro Insurance.

2. Life, Non Life, Miscellaneous

3. Life, Non life, Re-

insurance.

4.Life, Health, Micro

Insurance3

33

2 lung cancer and smoking .

lung cancer is peril and

smoking is moral hazard

smoking is peril and lung cancer

is hazard Death is certain Is occupatiol

hazard 1 Peril & Hazard

Peril refers to a specific event which might cause a Loss /Damage .A hazard is a condition that may Increase the chance

of perils to happen

Pg:41

342 The type of risk that can be insured

against is Speculative Risk Pure RiskPure &

Speculative risk

Non Fincial Risk 2 Types of Risk

The types of risk that could be insured against are , fincial risk , pure Risk &

Particular risk Pg :42

35

2

Pooling of risk in insurance means

The premium collected &

deposited in a pool

All similar risks are pooled together

Premium is pool to make

claims

Contribution of insurance company

2


36 2 Pure risk is classified under Economic risk Speculative risk Fincial risk Insurable risk 4

37

2The consequences of these risks

which will affect specific individuals or local communities in ture is called as

Pure risk Fincial risk Particular risk Physical hazard 3

38 2Law of Large number helps the

insures toCalculate the

premiumIncrease the profitability

Ascertain the death ratio

Declare the bonus 3

392

A person with a crimil background due to Fincial fraud would come under

which hazardPhysical Moral Occupation 2

40

2

How are perils and hazards normally distinguished under term insurance

policies?

Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying.

Perils are risks that

policyholders will die before a

specified date and hazards are

factors which could influence

that risk.

Perils are factors which affect the risk being insured and hazards

are the size of the risk being

insured.

Perils are factors which

could influence an insured

event occurring and hazards

are the actual events which will trigger a

payout

2

412 Law of large numbers is worked out

by which of the following? Pooling of risk Maintaining

insurable interestWith utmost good faith Randomness 1

42

2

With pooling of risks an insurance company pools the premium collected

from several individuals to insure them against similar risks. At what circumstances will the insurance companies pool the risk of a life insurance and health insurance

together?

Under no circumstances

Under conditions of the reinsurer

As directed by actuary

As per company policy 1

43

2

In life insurance industry which mechanism operates so as to eble the

individuals to reduce the impact of risks

Pooling of risk Transfer of risk Prevention of risk Sharing of risk 2

44 2Law of large numbers help in

calculating the severity of risk physical hazard moral hazard Probability of risk 1

45 2 Which is the best option to mage risk? Retain Transfer Avoid None 2

46

2

Viy doesn’t want to take insurance on himself. He feels that his family will

survive with the funds available in the bank and monthly rentals received

from village. This comes under Risk ______

Transfer Control Retaining Avoidance 3

472

Insurance is a mechanism through which risk of an individual can

normally betransferred prevented avoided reduced 1

48

2

In the context of Insurance terminology, how the meaning of ‘Peril’, ‘Risk’ and ‘Hazard’ is best

described?

Peril, Risk and Hazard are of

the same meaning

Peril is the event, Risk is the loss of event and

Hazard is the wrongful even

Peril is the event, Risk is the cause of

event and the Hazard is an

event of dangerous ture

Peril is the event, Risk is

the likely occurrence of the event and

the Hazard increases the chances of

happening of the event.

4


49

2

Pooling of risks is one of the fundamental principles of insurance where the Insurers pool the premium

collected from

all types of fincial risks

the homogeneous

risks

the heterogeneous

risks

the speculative risks 2

50

2 Pooling of insurance applies to 1. all types insurance

2. All types of insurance except Motor insurance

3. Only life insurance

4. Only Non-life insurance 1

51 2 The “Risk” contains…. 1. Peril and Hazard 2. Level 3. Uncertainty 4. All of the

above. 4

52 2 Grouping the similar risks by Insurance Company is called as….

1. Grouping of Risk 2. Risk Grading 3. Risk

Assessment4. Pooling of

Risk 4

53 2 The function of Insurance works on….. 1. Risk Transfer 2. Risk avoid 3. Risk

retention.4. All of the

above. 1

54

2

Mr. Mahesh is a software engineer. He has taken a term insurance for Rs.

30,000,00/- for 30 years. This is an example for-----------------

1. Risk retention 2. Risk transfer 3. Risk avoidance

4. Risk tolerance 2

55

2 Which of the following can be an example of moral hazard?

1. a family history of heart

disease

2. a person working in a

chemical factory

3. a person consuming

alcohol

4. A teacher working in a

primary school.3

562 Life insurance the risk is determined

on the basis of .......... 1. future data 2. past data 3. statistical data

4. mathematical

data2

57

2 Which one of the following is possible in retaining the risk?

1. Retaining the ownership in the

policy

2. Not possible as life has many

risks.

3.Is possible by transferring risk

to the policy holder

4.Is possible by Re-insuring

oneself 2

58

2

On 6th August there was a typhoon. Mr.Augustin who had insurance died

in typhoon. Now how will the insurance company will categories

this particular risk ?

1. Under the category of Pure

risk

2. Under the category of peril

risk

3. Under the category of

particular risk

4. Under the category of

Risk Transfer1

59 2 Life insurance company determine the level of risk based on

1. Future expenses.

2. Claim experiences.

3. Present expenses.

4. Targeted bonus rates. 2

60

2 Ram works in a Fire cracker factory. He stocks the cracker in his house.

He runs which type of risk.1. Speculative. 2. Particular. 3. Fincial. 4.

Fundamental. 3

61

2 In Insurance terms, pooling of risk is

1. Using the same pool for

paying claims of car & life

insurance.

2. Using different pool for paying claims of life insurance.

3. Using the same pool for paying claims of life & house

insurance.

4. Using the same pool for paying claims

of life insurance.

4

62

2

An Insurance company pools the premium collected from several Individual to insure them against

similar risk is called:

1. Pure Risk 2. Pooling of Risk

3. Insuraable Risk

4. Sharing of Risk 2

63

2

Which of the following Risk is associated with those events which

are not in control of an individual and also no possibility of making profit:

1. Pure Risk. 2. Particular Risk. 3. Fincial Risk. 4. Insurable

Risk 1

642

which of the following refres to specific event which might cause a

loss ...1. Peril 2. Hazard 3. Physical

hazards 4. Uncertinity 2

65

3:1

Harish takes a life insurance policy for Ramesh. Which of the following

statement best describes the principle of Insurable Interest.

Ramesh declares all his

liabilities

Ramesh is elder than Harish

Ramesh owes money form

Harish

Harish suffers fincial loss

incase of death of Ramesh

4 Insurable Interest

Creditor has Insurable Interest on the Life of Debtor to the extend of the MONEY

lent to the debtor Pg :56


66

3:1 what is the min age to enter into the contract of insurance 16 18 20 21 2 Insurance

Contracts

Person entering contract should be competent enough . A person is

competent when he is a Major ( above 18 years ) , sound mind ,not disqualified

Pg :53

67

3:1In a whole life plan - The

policyholider's responsibility to give disclosure

at the beginning of the contract

through out the contract Revival stage beginning of

renewal 1 Utmost Good Faith

The proposer knows all the material facts about himself and has to disclose all information voluntarily at the time of

completing the proposal form and submitting the documents

Pg :57

68

3:1Principle of utmost good faith will

operate in existing policy

Every time premium is paid

If the policy has lapsed and it has

to be revived

If the insured person falls sick and is admitted to

hospital

If the insured person changes

his job2

69

3:1Both the parties to a contract must

agree and understand the same thing and in the same sense which is called

Consideration Legality of an object

Consensus ad idem Acceptance 3

703:1 In case of life insurance, Insurable

interest must exist

At inception of policy Not needed At the time of

claimAny time during

the contract 1

71 3:1Group Insurance can be taken in

following relationshipemployee- employer Husband-wife family

memberssociety

members 1

723:1 What amount of insurable interest

does an individual have in his own life20,000 50,000

Up to the sum assured taken

in the planUnlimited 4

733:1 With reference to the principle of

indemnity a life insurance policy is a.

Insurance contract.

Indemnity contract. Value contract. Major life

contract 3

74

3:1

If Insurable interest does not exists at the time of inception of the life

insurance policy then, life insurance contract is

Voidable Invalid Valid Null & voidable 2

75 3:1If a contract is signed by a 15 years

old boy, this contract will be Null and void Invalid Voidable Valid 2

763:1

1. If the employer has insurable interest in the life of an employee,

what kind of policy is this?

A. Surety insurance

B. Keyman Insurance

C. Partnership Insurance

D. Debtor Insurance 2

77

3:1The concept of indemnity is based on

the key principle that policyholders should be prevented from

Insuring existing losses.

Making false insurance

claims.

Paying excessively for

insurance cover.

Profiting from insurance. 4

783:1 Employee has insurable interest in the

life of their employer to the extent ofYearly Salary Monthly Salary Probation

Period Till Gratuity 2 Discuss

79

3:1

Mr Rohan takes an insurance policy due to heavy Debt on his business

with an intention of committing suicide. This is an example of the

following Feature of a valid contract

Capacity to Contract Legality of object Capability of

performanceOffer and

acceptance 2

803:1 An insurer can invoke indisputability

clause in case of death only in

Non payment of due premium

Breach of duty of disclosure of material facts

2

813:1 A proposer shows his age lesser than

his actual age. This will be termed as

Breach of utmost good faith Breach of trust 1


82

3:1

Mr. Mehra wants to insure his wife. Previously his proposal was rejected by another company, but this time he

submits the proposal form without showing this to a new company. This

is

Non-disclosure of material facts

Concealment of material facts

Fraudulent misrepresentation of material

facts

Innocent misrepresentation of material

facts

2

83 3:1In which type of insurance Insurable Interest exists at the time of claim?

Liability Insurance Marine Insurance Motor

InsuranceTravel

Insurance 2

84

3:1 A proposal of life insurance is not accepted in the absence of Insurable interest which mainly depends on the

blood relation between the

Proposer and the Life assured

Proximity of relationship between the

Proposal and the Life assured

Fincial relationship between the


Emotiol relationship between the


3

853:1 Principle of utmost good faith is

expected for max up to which stage

Before the contract is concluded

1 Discuss

86

3:1 A contract comes into existence when………

1. One party makes an offer which the other party accepts unconditiolly.

2. One party makes an offer which the other party put extra

conditions.

3. One party makes an offer

where other party gives

counter offer.

4. One party makes an offer which the other party receives

the offer.

1

87

3:1

Mr. Kumar’s wife is suffering from blood cancer. Doctors lost their hope on her live. Mr. Kumar would like to take Life Insurance policy on wife’s me in order to get monitory benefit.

Insurance company rejects this proposal on the grounds of…….

1. Anti Money Laundry

2. Legality of object or purpose

3. Capacity of paying future premiums.

4. All of the above 2

883:1

Under this situation may leads to breach of the duty of utmost good

faith.

1. Non disclosure of material facts.

2. Concealment of a material fact

3. Fraudulent misrepresentati

on of facts.

4. All of the above. 4

893:1 The principle of utmost good faith is

not applicable to

1. Facts of common

knowledge2. Facts of law

3. Facts those are not

material.


903:1 Where do you not find insurable

interest in the following options.........1. surety-co

surety2. employee-

employer 3. husband-wife 4. brother-sister 4

913:1 The principle of utmost good faith

applies to........... 1. only insurers 2. only proposer 3. both insurers and proposer

4. neither insures nor proposer

3

92

3:1

Mr.Akash filled the proposal form but before submitting to the company he

discussed with the agent that he is not sure whether he can pay for 15 years . This attitude affects which part of the

contract?

1. Consideration in the contract

2. Capacity to contract

3. Consensus ad idem

4. Offer and Acceptance in the contract

4

93

3:1

Mr.Karan who has to go to abroad for 6 months on an official work decides

to leave his car with his friend Mr. Jim. What will be the validity of the

insurable interest in this case ?

1. The insurable interest between the car and jim is

valid for 6 months

2. The insurable interest between

the car and karan is valid for

6 months

3. The insurable interest

between the car and karan

is valid until he owns it

4. The insurable interest

between the car and Jim is

valid until Karan’s return

3

94

3:1

Mr. Josh was filling the proposal form but as his mother was sitting beside

him, even though he drinks and smokes he ticked “NO” in smoking &

drinking column of proposal form. This indicates ?

1. He has breached the

non-disclosure of the fact

2. He has breached the company by

concealing the facts

3. He has breached the company by fraudulent information

4. He had done an innocent

misrepresentation

2


95

3:1 A contract exists between insurer and proposer when

1. A proposal has been

accepted by insurer.

2. A policy document has

been stamped by insurer.

3. A policy document has been received

by the policyholder.

4. An insurer has made another

proposal.

1

96

3:1

Rakesh purchased a life insurance policy. While writing a proposal form

he hide that he practices mountaineering. Sadly he died in an

accident while climbing Mount Everest. The insurers rejected the

claim.What is the reason for rejection?

1. Innocent misrepresentatio

n.

2. Fraudulent misrepresentatio

n.

3. Concealment.

4. Non-Disclosure. 4

97

3:1

Shamsher has a health insurance policy of ` 1, 00,000 individually and from his company for ` 2, 00,000. He

falls sick and got hospitalized. His hospital bill ran to ` 50,000. He claimed this amount from his

individual policy. Also, he placed the request with his company for group

policy claim, which was rejected. The reason for rejection is.

1. Indemnity contract.

2. Value contract.

3. Deemed contract.

4. Rolling contract. 1

98 3:1 Life Insurance also known as: 1. Value Contract. 2. Indemnity 3. Commercial

Contract 4. Speculative 1

99

3:1 Which option is not correct with regard to joint life insurance plan?

1. Plan offer insurance

coverage for two person in one

policy

2. This plan is ideal for brother

& sister.

3. Each life will be underwritten

separately.

4. A joint life policy may

cover a partner in business under one

policy.

2

100

3:1

Pooling of insurance applies to

all types insurance

All types of insurance except Motor insurance

Only life insurance

Only Non-life insurance 1

101

3:1The proposer can withdraw from the

contract, if they disagree with the terms and conditions of the Policy,

within a ‘free look-in period’ of

15 days from the date of receipt of

the policy document

20 days from the date of receipt of

the policy document

25 days from the date of

receipt of the policy

document

30 days from the date of

receipt of the policy

document

1

102 3:2 Types of assignment Absolute Term assignment Conditiol Absolute &

Conditiol 4 Assignment Sec 38 of Insurance Act 1938 Defines Assignment and its types

Pg:79

103

3:2 why does an insurer insist on age proof document . To assess SA Risk assessment Identity

verificationFincial

assessment 2 Insurance Documents

AGE is a factor for determining the Risk Profile of the Proposer , thus allowing the

underwriters to calculate the premium required for the plan

Pg :69

1043:2

Mr A submitted the proposal form . When will the risk begins for the

company?

Submission of proposal form FPR issued Policy issued Agent accepts

money 2 Insurance Documents

FPR is an Important document which is also an evidence that Risk has begun

Pg :70

105 3:2 The obligation of the insurer for the whole life policy is mentioned in

Operative Clause Preamble Proviso Endorsement 1 Insurance

Documents The operative clause lays down the

Mutual obligation of the parties . Pg :71

106

3:2

Asvath is illiterate. He wants to take policy and surya is a friend of his help

him is answering questions and answers and also fills proposal . In

addition to this requirement is

Asvath photograph

asvath thump impression Only

policy document need to be registered

Left thumb Impressionof Asvath along

with a declaration of

his friend

4 Key Documents

The proposal form and the proposer's Sigture is the basis of the contract .

Pg :68


107

3:2For Logging a Policy , a person gives

Baptism CERTIFICATE & Ration Card . What is this ?

Both are Standard Age

Proof

Both are Non standard Age

Proof

Baptism Certificate is Standard &

Ration Card is Non Standard

Age Proof

Baptism Certificate is

Non Standard & Ration card is Standard Age Proof

3 Key Documents Age proof are standard and non standard Pg :69

1083:2 To be a valid contract ,the declaration

is necessary in which document Policy Document proposal form FPR RPR 2 Key Insurance Documents

The proposal form and the sigture of the proposer will form the basis of Insurance

contract .Pg 68

109

3:2

Mr. ABC buying Term insurance policy, insurer should mention

Ombudsman address in which part of policy document?

operative clause Preamble Information statement schedule 3 Key Insurance

Documents

Policy Information statement includes :facility available for frequency and

method of premium payment ,contact for service and inquiry related to policy ,Ombudsman location and contact

Pg :72

1103:2 Zaib takes insurance in the life of

Jasmeet. Zaib will be called as Proposer Nominee Appointee Trust 1 Key terminologies

The person seeking insurance is a Proposer . Proposer & Life assured could

be the same or different Pg 66

111

3:2Mr.Suresh dies one day before the

grace period without paying the premium, what is th claim payable

No claims payable

All premiums paid Sum assured

Sum Assured less the latest

premium4 Lapse

A grace period normaly is of One month , not more than 30 days for YEARLY ,

HALF , Qtrly mode of premium payment .Pg :74

112 3:2 Loan is available for a policy in which there is a feature of Fund switch Savings Element Partial

withdrawal Surrender 2 Loans & Foreclosure

loan is given as a certain %age of Surrender value

Pg :79

113 3:2 Appointee's role Sigture on the proposal Medical exams insurable

interestwhen Nominee

is Minor 4 Nomition An appointee has to be appointed in case the Nominee is a Minor

Pg :74

114

3:2 how many nominees can be attached to a term insurance policy one two three many 4 Nomition

Any number of nomitions can be attested on the policy . However No % age of share can be mentioned per nominee

Pg :78

115

3:2if a policy has two nominee

mentioned what should be the Min allocation

Each nominee to get Min 10%

Each Nominee to get Min 25%

the first nominee

should have more than

second

No such conditions 4 Nomition &

Assignments

No specific Shares in Multiple Nomitions however can be done for successive

nomitions Pg:78

116

3:2

a Policy holder takes a insurance contract for 30 years and the SA

reduces after 25 years what could be the likely reason

No bonus accumulated

Age proof was substantially

wrong

Policy has become paid

up Its a Ulip Plan 3 Paid Up &

Lapse

Lapsed policy will be made Paid Up and the SA reduced to an amount based on

Premiums Paid Pg :75

117

3:2A life insurance policy can only be

made paid up if what particular policy feature exists?

Indexing contribution. Nomition facility. Rider benefits. Savings

element. 4 Paid Up policies

Policy which have A value , ie endowment and having saving

component can be made paid up in case it lapses during the term after completion

of 3 policy years

Pg :75

118

3:2 Reasons for surrender of the policy SA advisor induced no commission Has Fincial Problems 4 Surrender

value

Also known as Cash Value . The Option for the policy holder to close the Plan during the Term .due to either Persol

Fincial problems or policy being mis sold and benefits not up to the clients needs

Pg :76

119 3:2If a life insurance policy is issued with

a lien, it will be mention in Proviso Schedule Terms & conditions Endorsement 2

1203:2 Available Loan amount under a life

Insurance policy is generally based on

Total paid premium Sum Assured Surrender

value Paid up value 3

121

3:2

If a customer has mentioned he is a drinker in the proposal form, the

insurance company can exclude this hazard and mention it in which part of

the policy document?

Provisio Endorsements Operative clause

Terms and Conditions 4


122

3:2

Mr. shailsh has an endowment policy with 30 years policy term, he has paid

for eight years. The sum assured Rs.8,00,000/- and accumulated bonus

Rs.60,000/-. What is the paid up value if bonus accumulated and if not

bonus accumulated?

213333 & 273333

213333 & 229333

229333 & 273333

229333 & 293333 1

1233:2 Whose sigture is required on

attestation of the policy?Agent Policy holder

Authorized officials of

insurerProposer 3

124 3:2The mutual obligation of the parties is

laid down in?Operative

Clause Heading Proviso Attestation 1

1253:2

The Insurance companies allow modification/alteration of the origil

policy documents through...Surrender Paid Up Endorsement Assignment 3

126

3:2

In case the customer has stopped making payment for the premium of the policy. What are the two most

important things required in order to reinstate the policy?

Reinstatement Fee and Proof of continuing good

health

Premium cheque and health declaration

Only health certificate

Premium cheque with

arrears1

127

3:2

A and B start their policies on the same date and surrender on 22nd

anniversary of the policy. But A’s surrender value is higher than B. the

reason was ;

A’s health was better than B

A’s term was longer than B

B’s term was longer than A 3 Discuss

128

3:2Which from the following would help best the underwriter to know whether the proposer had applied previously

and his application was rejected

Medical reports Proposal form Policy document 2

129

3:2A policyholder wants to change the nomition after 5 years of the policy.

What would happen

Change not allowed

Can be done through

endorsement

Can be done through an

affidavit sworn in

A simple application would do.

2

130

3:2Mr. Anil has a money back policy and a whole life policy. He is planning to

take some loan from both the policies as he was regularly paying the

premium. What is your suggestion?

He regularly pays premium so he can take loan

from both the policies

He can surrender whole life policy

and can take loan from Money

back policy

He can’t take loan from

money back but can avail

loan from Whole life

policy

He can’t take loan from whole life

policy but can avail loan from

Money back policy

3

1313:2 When does nomination get

invalidated On assignment

If more than one person is nomited

1

132

3:2

If 5% bonus is given every year then for a SA of 1 lakh, what will be the

payout after 15 years in a simple revisiory bonus system?

60000 75000 100000 5000 2

133

3:2

Vijay received his policy bond on 11th June, 2011. Due to some persol

problems he has decided to cancel the policy on 8th July, 2011. Can he

cancel or return the policy?

No, as 15 days period is over

Yes, as it is within 1 year

No, as 20 days period is over

Yes, as it is within 3 months 1

134

3:2

Rohit, 17 years old, submitted a proposal for Endowment plan of Rs.1

lac to AB Insurance Co. In the absence of an essential ingredient of a valid contract, the proposal was not accepted. Which factor caused the insurer for non-acceptance of the

proposal?

Capability of performance Legality of object Capacity to

contract Offer 3


1353:2

A nomition is not required if

Policy is taken under joint life

basis1

1363:2

What is the main source for insurance company to get information of

proposer?

1. Advertisements. 2. Proposal form. 3. Conducting

interviews.4. Telephonic conversations. 2

1373:2

What are the factors involved in calculating Surrender Value of the

Policy?

1. Number of year’s premium

paid.

2. Number of premiums payable.

3. Sum Assured


138

3:2

Mr. Kumar is taken one life insurance policy with ABC Company. But he is not satisfied with the policy benefits. What Mr. Kumar can do under this

situation?

1. He can not do any thing,

because be received the policy bond.

2. He can file a complaint against

insurance company in

court.

3. He can send back the policy

document to insurance

company with in 15 days from policy receiving

date.

4. Serve notice to insurance company on

policy benefits.

3

139

3:2 When an illiterate person wants to have a policy.....

1. an impression of the left thumb is taken and third

party has to attest it

2. an impression of the left thumb is taken and the advisor has to

attest it

3. an impression of the left thumb

is sufficient and need not be

attested

4. A relative of the illiterate

person has to sign on behalf of that illiterate

person.

1

140

3:2

Mr.Shanth has taken an endowment policy of 15 years with ABC insurance company. He has paid premium for 4 years and he could not pay premium for 5th and 6th year. In the 7th year

he approaches the company to renew the policy. Now which of the following

options will apply to him?

1. The policy will be renewed on

the existing terms and conditions.

2. Mr. Shanth cannot renew the

policy

3. the policy may be

renewed on different terms and conditions

4. Mr. Shanth can renew the policy only on

the approval of the insurer

3

141

3:2 Which of the following statement is not true in connection with nomition?

1. The life insured can

nomite one or more than one

person as nominees.

2. Nomition can be done either at

the time the policy is bought

or later.

3. A person having a policy

on the life of another should

make a nomition.

4. The section 39 of the

Insurance Act 1938 speaks

about the nomition.

3

142

3:2Which of the following statements in

correct in connection with assignment?

1. Assignee cannot make

fresh nomition in the policy

2. The assignor need not be

major at the time of assignment.

3. Section 45 of the insurance

act speaks about

assignment.

4. Conditiol assignment and

absolute assignment are

one and the same.

1

143

3:2

Mr. Shanth has taken an endowment policy of 20 years. He has paid

premium for 10 years and now the policy is in force. At this point of time

can Shanth take loan?

1. Mr. Shanth will not be granted

any loan

2. Mr. Shanth can take loan

which should be certain

percentage of the surrender value of the

policy.

3. There is no concept of loan

in insurance policy

4. loans are allowed only in

term plans2

144

3:2

Mrs.Shwetha has taken a loan from her policy. Later stage she neither paid back neither the loan nor she paid the premium for a very long

time. What will happen to her policy?

1. Policy will be surrendered by

the insurer


the nominee

3. Policy will be surrendered by the company


the heir1


145

3:2 Which of the following information

does not appear in the First Premium Receipt?

1. method and frequency of

premium payment

2. Date of commencement of last premium

3. Date the policy matures

4. Date the last premium will be

paid2

146

3:2

Mr. Raj has taken a policy of 15 year term. He has paid the premium for 9 years. But now unfortutely he has lost

his job. He is uble to pay the premium. What can be the best

solution from the following ?

1. Converting the policy to Term

policy

2. Converting the policy to Paid up

3. Converting the policy to money back

4. Converting the policy to whole Life

2

1473:2 Payment of premium and sum

assured are laid down in1. Heading of

policy document.2. Proviso of

policy.3. Operative

clause.

4. Schedule of policy

document.3

148

3:2 An insurance contract commences when

1. Quotation is signed by proposer.

2. First Premium Receipt is

issued.

3. Proposal Form is signed.

4. Policy Document is received by policyholder.

2

149

3:2 When is premium considered / deemed to be paid?

1. When insured writes a cheque

in favor of insurer.

2. When cheque amount is

deposited in insurer account.

3. When the cheque is

deposited with insurer office.

4. When cheque is

posted/couriered by the insure4.

2

150

3:2

Ram Lal is an insurance policyholder. He has recently shifted his home from

New Delhi to Noida. He wants the address to be changed. This change in policy document will be effective

through?

1. Terms & Condition. 2. Preamble. 3.

Endorsement. 4. Schedule. 3

151

3:2

Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 annual premiums but due to fincial

crisis is uble to make future premium. His policy

1. Acquires surrender value.

2. Contract comes to an end.

3. Moneys will be forfeited.

4. Acquires paid up value. 4

152

3:2 How assignment distinguishes itself from nomition?

1. Nomition does not transfer the

title while assignment

does.

2. Nomition transfers the title while assignment

does not.

3. Nomition is made after

policy is issued while

assignment is done before it

is issued.

4. Nomition need not be informed but assignment needs to be informe4.

1

153

3:2

Manish took a loan from Pankaj of Rs.10 lac, Pankaj transferred his

Insurance policy to Manish of Rs.10 lac as a security with the agreement

Of when Loan is fully paid, policy title will be revert back to me of Manish is

called:

1. Loan assignment

2. Conditiol Assignment

3. Loan Agreement

4. Absoulte Assignment 2

154

3:2

Which clause lays down the mutual obligation of the parties regarding,

Payment of Premium by Life assured & payment of Sum Assured by

1. Lien Clause 2. Opertaive Clause

3. Proviso Clause

4. Schedule of Policy 2

155

3:2

Prab is not able to pay premium for continue his policy due to some

Fincial problem, so he rather than surrendering the policy, what Option

he has to convert ……….?

1. In to paid up and reduced Sum Assured

would be payable on maturity.

2.Return of Premium on

maturity

3. Deduct the underpaid

premium from Sum assured

and payable on Maturity

4. Policy was subject to lien. 1


156

3:2

Ajay has bought an endowment with profit plan for 20 year .if he took a

Loan after 5th of commencement of policy and died before 2 year of

Maturity .what would be payable on maturity?

1. only Sum assured

2.Sum Assured + Bonus

3. Sum assured plus vested

bonus minus any outstanding loan/premium

& Interest.

4. Paid up value only. 3

157

4

While calculating Human life value (HLV) two components need to be kept in mind , the one is take home

salary and other is

Bank Fixed deposit rate discount rate Estimated life

expectancy

Estimated amount at retirement

1 Human Life Value

HLV assumes if the event happens Today how much money one should have in the BANK to get the monthly expenses of the

family to continue .

Pg 95

158

4

Annual premium of insurance product is Rs. 32,000, 4% loading on

Quarterly mode of payment What is the quarterly premium?

7680 8000 8320 8500 3 Premium Calculations

Adjustment to take into account of Expenses & profits of the insurer is called

loading Pg :100

159

4 why ACR To calculate Premium

To Calculate the commission due

for the agent

To verify the Plan proposed

To help the underwriter to asses the Risk

4 Primary Underwriter

Agent Confidentiality Report is mandatory as It helps the Underwriters to have

additiol Information about the Proposer as the agent is in better position having

met / known the client

Pg :102

160 4 In a 20 year with profit policy,persist ency Bonus is paid at the end of 1st Year 10th Year 15th Year 20th Year 4 Types of Bonus Persist ency or termil bonus is given at

maturity of the policyPg :101

161

4

While Underwriting Mr X proposal , its found that there has been CRIMIL case against him in Fraudulent act

.What type of Risk this will be categorized Into ?

Fraudulent Hazard

Occupatiol Hazard

Physical Hazard Moral Hazard 4 Types of

Hazards Moral Hazard relates to attitude or

Intentions & conduct Pg :91

162

4Mr A wants insurance cover . But he is drinks alcohol frequently . What

kind of hazard you may categorize?Physical hazard Moral Hazard fincial risk Pure risk 1 Underwiting

Physical Hazard refers to the physical characteristic of the risk associated with

the proposer Pg :91

1634 Who IS the primary underwriter of

the customer? Underwriter Insuranc eCo Agent Actuary 3 UnderwitingAgents are in direct contact with the

Customer and have an important role to play in assessing the risk

Pg :102

1644

Claim was settled however full Sum assured not paid though the policy

was in force due toLien Bonus Surrender Accidental

death 1 Underwiting Lien is a clause where the underwriter feels the risk will wear out in time

Pg :95

165

4 Lien can be considered an altertive of which of the following Clause Rejection Acceptance Time barred 1 Underwriting

LIENS are clauses which Underwriters apply to the proposal where they feel the

RISK will wear off after certain time duration l

Pg :95

166

4what is the special report that is asked by the underwriter from the officer of

the insurerHLV report

Client confidentiality

report

moral hazard report medical report 3 Underwriting

Special reports from senior officials or agents are taken by underwriters

sometimes if the risk on the policy solicited is high . Informations on

Occupation, habits , lifestyle , income would be asked through this

Pg :90

167

4

As per the norms of risk assessment by U/W both the parents of a policy holder died in their early 30s due to

Heart disease, what is the risk assessed

Moral Hazard Medical Hazard Occupatiol Hazard

Physical Hazard 4 Underwriting

Under Physical hazard , the Underwriter looks into medical history of the family of

the proposer to asses the risk due to heredity

Pg :91

1684

Net premium is equal to

Premium plus interest earning

Risk premium plus interest

earning

Premium minus interest earning

Risk premium minus interest

earning3

169

4

Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply

2.50% 3.00% 5.00% 7.50% 3


170

4

The regulations issued by the IRDA, require that the decision on the

proposal must be conveyed to the proposer within

15 days of receiving the

proposal


proposal


proposal


proposal1

171 4If bonus is given under a plan the

additiol premium added is known as Loading Investment Frequency 1

172

4

Certificate from the village panchayat

Will be considered as standard age

proof

Will be considered as

non standard age proof

Will not be accepted 2

1734

What will be lien amount in 3rd year as compared to the 4th year of lien.

It is higher Decrease Slightly higher Slightly lower 2

1744

When an individual gets older, chances of obtaining life and health

protection will beIncreases Reduces Remains same Depends on

insurer 2

175

4

What key event is most likely to prevent insurer from ensuring that each insured person brings a fair premium to the pool for the risk

presented?

A policy Assignment

A Fradulent Claim

A steep rise in inflation

A sudden illness 2

176

4

HLV is used as a Yardstick to determine

Emotion Loss can be

compensated for

The correct cover needed to

compensate economical loss to their family in case of death of

the earning member

A lump sum amount that the person will get

from the insurance company

2

177

4

While calculating HLV along with future income, no of years of work,

increments in salary what is also to be taken in to account?

Inflation. Interest. Discount rate Compounding. 3

178

4

Vishal and sandeep applied for a health plan in XYZ Life Insurance

Company. Vishal is asked to undergo a medical checkup but Sandeep is not

asked to do so. What will be most possible reason?

Sandeep has taken another

policy from XYZ Life Insurance

Company

Vishal is older than Sandeep

Sandeep is earning more then Vishal

Vishal is working in a

MNC2

179

4Mr. Kul used to participate in Car

race. While taking up the Insurance policy he disclosed this information. What kind of hazard does it refers to

Physical hazard Fraudulent representation Moral hazard Peril 1

180

4If the sum assured remains the same, what will be impact of net premium if the age of the policyholder increases

It rises It falls It remains constant

Gross premiums increases

3

1814

For which of the following reasons, the underwriter should ask beyond

agent’s confidential report.Physical Hazard Moral Hazard SA is too high Pure Risk 3

182

4

An insurance agent sold two policies to two different persons having the same policy term. He declares the commission to each of them. The commission of one of the policy is

more than the other. What should be the reasons for this difference?

Risk profile of both the

policyholder are different

Age of both the candidate are

different

One has chosen Single

premium policy and other has chosen regular premium policy

Both have chosen

different kind of policies.

4

183

4 Compound reversiory bonus of 4 % will be calculated on

Sum assuredSum assured plus bonus till

date

Premiums paid till date

Sum assured minus bonuses

paid till date2


184 4 A lien is generally used as a

substitute to charginga high premium for a high risk

for reduction in sum assured 1

185

4

In a process of completion of an insurance proposal, an agent finds

that the intention of the proposer was not genuine. In this case what should

the agent do?

Contact the Regulators

Issue a wrong note

Refuse to proceed

Inform the insurer 3

186

4

The documents likely to provide the underwriter of an insurance company,

the details relating to the previous subject application, which have been

accepted as non-standard..

Quotation Request Form Proposal Form Policy

Document Claim Form 2

187

4

In a case, the underwriter felt that the risk associated with the person would

decrease with time, then he would accept the case with

A clause A Lien A Loading Level Premium 2

188 4 Maximum Life cover20 times annual

salary 500000 1500000 4000000 1

189

4

What role an agent is likely to play in the process of underwriting?

To see that the proposal is

accepted by the underwriter at

OR

To ensure that his client is not burdened with extra premium

To give truthful report to the Insurer all

about the life to be insured

To see that the plan as

proposed by the client is not

changed on underwriting

3

190

4 In insurance, HLV is a known

abbreviated term. How the meaning of HLV can best be described in

relation to a income earning proposer?

Sum assured is the HLV of the

proposer

Yearly income is the HLV of the

proposer

Difference between the Assets and

Liabilities is the HLV of the proposer

Present value of the future earnings less

persol expenses is the

HLV of the proposer

4

191

4

Out of all the factors that affect the needs of different life stages of an

individual, which is the most common factor that is likely to exist throughout

the life span of an individual?

Employment Age Marital Status Liability 2

192

4

While calculating HLV along with future income, no of years of work,

increments in salary what is also to be taken in to account?

1. Inflation. 2. Interest. 3. Discount rate 4. Compounding. 3

1934 Moral Hazard reflects the …….

1. Intentions and attitude of Proposer.

2. Habits and Hobbies of Proposer.

3. Occupation and Residence

of Proposer.

4. Medical and Persol History of Proposer.

1

194

4 Income replacement methods equates Human Life Value (HLV) to

1. Future value of Present earnings.

2. Present value of future earnings.

3. Present value of previous earnings.

4. Future value of previous earnings.

2

195 4 Agent will be called as….. 1. Primary Underwriter

2. Main Underwriter

3. Chief Underwriter.

4. Information Underwriter. 1

196

4

Mr. Rajesh has taken policy from ABC insurance company for Rs.

500000 Sum Assured by paying Rs. 50,000 premium per year. Company

declared 5% Simple Reversiory bonus, what is bonus amount?

1. Rs. 2500/- 2. Rs. 25000/- 3. Rs. 250000/- 4. Rs. 5000/- 2

197 4 The underwriter can get the required information about the proposer in..... 1. Proposal form. 2. renewal

receipt 3. brochure 4. annual report 1


1984

Mr. Ramesh works in a mining company. So he is exposed

to..............1. moral hazard 2. physical

hazard3. mental

hazard4. Ethical hazard. 2

199

4 Lien is imposed on a policy when underwriter feels that......

1. the risk associated might

increase

2. the risk associated might

decrease

3. the risk associated

might not be harmful

4. the risk associated might be general

2

200

4 What does the mortality tables contains ?

1. Tables of death occurring

in various circumstances

2. Tables of details of various probabilities of

death

3. Tables of details of

underwriter’s calculation on

death

4. Tables of details of actuarial

calculation on death

4

201

4 Mr. Guptha is recently detected with lung cancer. He would like to take an insurance. What is your suggestion?

1. Time of death is uncertain, so

insurance can be given

2. Only lung is affected so

health insurance can be given.

3. He can take insurance after

submitting health

certificate

4. Cannot give insurance for health reason

4

202

4

Mr.Santhosh working as a head master who is around 52 years had

requested for an Insurance cover for Rs.1 crore. He insisted that his

brother’s son should be the nominee not his wife. Underwriter will verify

this case for which one of the following:

1. A . Physical hazard, as he is

old

2. B. Moral hazard, as he is 52 years old and

wife is not the nominee

3. C. Moral hazard, as coverage is

high and brother’s son is

the nominee

4. D. Moral hazard, as he is a head master and 52 years

old

3

203

4

Mr.Feroz has applied for an insurance cover of Rs.4 crores. The Company will accept or reject the

proposal only after confirming from one of the following agencies.

1. Fincial Inspection agencies

2. Specialized inspection agencies

3. Credit worth inspection agencies

4. Insurance Investigation

Agencies4

2044

The responsibility for classification and alysis of the proposal form lies

with whom?

1. Risk Alysis Department

2. Classification of Risk

Department3. Underwriter 4. Actuary who

alysis the risk 3

2054 In underwriting the economic value of

the person is determined by what?

1. The occupation of the

person

2. The fincial history of his

family

3. The income that he earns

4. Human Life Value 4

206

4 When an underwriter may consider Moral Hazard?

1. An individual is proposing SA

15 times his annual income.

2. Insurance is taken out by an individual with dependents.

3. A nominee is not a

dependent.

4. A medical checkup is carried out

nearby place of residence.

3

207 4 Level Premium is calculated based on 1. Risk Premium. 2. Net Premium. 3. Loading of

Premium.4. Gross

Premium. 1

208 4 MPL abbreviates 1. Minimum Possible Loss.

2. Major Possible Loss.

3. Minor Possible Loss.

4. Maximum Possible Loss. 4

2094

What is generally considered as a substitute to charging a high premium

for a high risk?1. Clause. 2. Assignment. 3. Lien. 4. Level

Premium. 3

210

4

Jyoti is submitting is copy of permanents account number card as age proof for buying an money back

plan .her age consider as a

1. Non Standard Age Proof

2. Standard Age proof

3. an Address proof

4. Proof of Income tax

payer2

2114

Which one of the following bonuses is given by insurer as an incentive to the

insured to for long term:

1. Simple Revisiory bonus

2. Compound Revisiory bonus

3. Persistency Bonus

4. Interim bonus 3 Discuss

2124

Ramesh bought an endowment plan for ten year he pays the same Amount

in every year is called:

1. Gross Premium

2. Level Premium

3. Risk Premium 4. Net Premium 2

2134 Which one of the following is not

source of information about the 1. Proposal Form 2. Insurance agent

3. neighbor of proposer

4. Medical of examition

report3


214

4

Manish being a sole earning member of his family not insured himself But looking for insurance for his son who

is student .there is possibility of

1. Physical Hazard 2. Moral Hazard 3. Medical 4. No

underwriting 2

2154

An underwriter accepts the proposal with certain modified terms and

coditions,What it denotesLien Counter offer Decline Postpontment 2

216 4Loading in a term plan is more likely

beacause of Morbidity MortalityAdmin

expensesInvestment expenses

217

4In case of lien,the risk will classified

as per underwriting standards

better than average risk,at

the early stage of life

better than the average risk ,at

the later stage of the life

Higher than the average risk,at the early stage

Higher than the average risk at the later stage

of life

3

218

4

Sarath is the client and looking for large SA, and the proposal to be

certified in the context of confidentiality report with relavent to

moral hazard,who is concerned person to do! ACR Sarath nominee

Superior of the Sarth's

insurance agent

Insurance company

3

219

4 If a person have motoring sport as hobby before taking insurance policy,then what it implicates

Moral hazard is Sport and it

influence the risk of life

motoring sport is risk and

influences moral hazard

motoring sport is risk and influences physical hazard

motoring sport is a physical

hazard and it influences risk

4

220 4If a policy of term 30yrs is imposed with lien, what will be the lien period 5 10 15 20 1

2214

A gave an offer to B and B made changes to the same and returned it

to A. It will be called

modified acceptance Counter offer Rectified offer Rectified

Acceptance 2

222

5

Hari wants a constant life cover till his 31st birthday. But he cant afford to pay high premiums. The best suited

products for him would be

Pure Endowment Anticipated endowment term plan ULIP 3 Insurance

products

Term product is the simplest and the cheapest Insurance plan which gives Life

cover Pg :112

223

5At the time of maturity , quarter of the

SA is paid though the policy was in force

Endowment Lien Money back Surrender 3 Insurance Products

In money back plan , payouts are given at fixed intervals called survival benefits .

Usually 25% of SA is paid in equal interval of the term

Pg :117

2245

Weekly premiums are generally collected for which type/range of

palnsBanca assurance Health plans Micro

Insurance Term Insurance 3 Micro Insurance

Micro Insurance is for Low Income Group . Product ranges from 5K to 50 K

Pg:113

225

5

Mr A is planning to invest and his needs are :1 Protection for is Income ,

during his absence 2.children education

Children Plan Retirement Plan Ulip Plan Term Insurance 3 Protection Needs

Term Insurance will help in protecting the future loss of Income

Pg :109 Discuss

226

5

What tax rate,if any,will be applicable to a life insurance policy holder for the

maturity proceeds of a Rs 5000 life insurance policy

Nil 10% 20% 30% 1 Tax & Inflation The Proceeds of Life Insurance are exempted under Sec 10 (10D)

Pg :118

227

5A policy holder can pay the premium

of Rs 5,00,000 and what could be the max tax efficiency he is entitles to

500000 50000 100000 300000 3 Tax & InflationUnder Sec 80 C , the max Amount under

Tax deduction through Life Insurance premium will be Rs 1 Lk

Pg 118

228

5

Ram has Invested Rs 5000 in PPF & Rs 1 Lakh in Life insurance premium .

In which he will get maximum Tax Benefit

Life Insurance Premium PPF 50% on each

95% on Life Insurance

Premium & 5% on PPF

1 Tax Implications

Under Sec 80 C , the maximum deductible Income from tax in a given

year is Rs 1 Lk .Pg :118


229

5

Mr.Sumesh takes a policy and pays premium of 20000 with a sum assured

of 300000, what will be the tax implication on his maturity amount

Fully taxable 10% 20% Tax fully exempted 4 Tax

Implications

The premium should be 20% or less than 20% of the SA to avail the tax benefit of

Sec 10 10 d Pg :118

230

5

without submitting any form of claim,a life insurance policy holder received

payments of survival then what type of policy he is holding

ULIP Term Money Back Health 3 Types of PlansPartial Survival Benefits are paid at fixed

intervals without any formalities to be completed by the Policyholders

Pg :117

2315

what is the special feature of ulip that ensures customer risk profile for long

time insurance policiesfund switching partial with drawl premium

holiday riders 1 UlipUlip offers protection with Investment and flexibilities to mage the Investment to the

customers Pg :116

232

5

Kamal is willing to pay 60000/- per annum for his ULIP policy. What

should be the SA in case he wants to avail the tax benefits

1 lac 3 lacs 2 lacs 1.50 lacs 2

233

5

Suresh is suffering from Asthma and the policy in been done on joint life

basis and the need for nomition under the plan is less as

Joint life policy Has physical ailment 1

234

5

After maturity In a Unit Linked Life Insurance Policy, customer does not get received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity

plan

He has switched his fund

He has opted for Settlement

option

He has redirected his past premium

Policy was lapsed on the

time of maturity2

235

5

A customer gets periodic benefits without any claim and then when he dies during the term of the policy, his nominees gets the sum insured. What

type of policy is this ?

Endowment Term Money Back Whole of Life 3

236

5

For assessing the risk of a group health insurance policy, which of the

following information is the most critical

Group lifestyle Employees Age of the group

Medical history of group 3

237

5

Rakesh wants to buy a policy primarily for Risk Cover but at the end

of the term he wants to get at least some return. Under which policy he

will get these benefits

Endowment plan ROP plan Whole life plan Ulip 2

238

5

Prashant buys an Endowment Plan with a sum assured of Re. 100000

and wants to make use of tax benefit under the policy for whole SA. How much premium would help him avail

this benefit

Less than 10000 More than 10000 Less than 20000

More than 20000 3

239 5What is the ceiling of tax exemption

under 80 c. 1 lakh 1.5 lakhs 2 lakhs 3 lakhs 1

240

5

The agent can use the benefit illustration document to show the

client the projected growth of investment at the rate of –

6% and 10% 5% and 10% 6% and 12% 5% and 12% 1

241

5

Suresh has adequate reserve capital with him and he wishes to protect his income, moreover he feels that if he does not die then he would need the amount. What type of plan should he

opt for?

Term Insurance Plan Endowment plan Return of

premium plan Pension plan 3

242 5Frequent switching is not advisable in

ULIP plan because it increase Investment Risk Risk of death Uncertainty of return

Chances of lapse 1


243

5

Mr. Kartik got a job recently, he can’t afford to pay to pay the higher

premium as of now but in future once he settles down with his job he can

pay higher premium. Which one will be the best plan?

Convertible Endowment plan

Convertible Term plan

Convertible pure

Endowment

Convertible money back

plan 2

244 5What is the minimum Sum Assured

allowed for Micro Insurance? 5000 10000 15000 20000 1

245

5Pick the wrong answer. In a child

plan:

Deferred date is a policy

anniversary.

On vesting date policy has to be assigned to the

life assured.

After vesting the contract is between the

insurer and the life assured.

Deferred date is date on

which the risk commences.

2

246

5 Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness before maturity?

1. Nil 2. 10% 3. 20% 4. 30% 1

247

5

For assessing the risk of a group health insurance policy, which of the

following information is the most critical

1. Group lifestyle 2. Employees 3. Age of the group

4. Medical history of group 3

248 5 Term Insurance Plan will give…. 1. Only Death Benefit.

2. Only Maturity Benefit.

3. Only Bonus Benefit.

4. Only Tax Benefit. 1

249 5 Low risk products give….. 1. High Returns 2. Low Returns 3. Moderate Returns

4. Good Returns 2

2505 The income of an individual can be

protected with the help of.........1. a unit linked

policy2. a term life

policy

3. an endowment

policy

4. a money back policy 2

251

5

Mr. Shanth has got a pure endowment policy for 30 years for the sum

assured of Rs. 75,000,00/-. It can be paid to him......

1. when he dies 2. when he survives the term

3. when he is hospitalized

4. when he loses his job 2

2525

Flexibility like partial withdrawal and taking premium holidays is possible

with....1. Fixed deposits 2. Unit linked

Insurance plans3. Term

Insurance4. Endowment

plans 2

253

5

Mr. Varun who own a multi chain company would like to take an

insurance. What will be the best option for him from the following ?

1. He can take Surety insurance

2. He can take Business Partner

insurance

3. He can take Key man Insurance

4. He Can take company insurance

3

2545

Mr. Kumar decides that his employees should have SSS scheme.

What type of plan is SSS?

1. Salary saving Life plan

2. Not a specific plan

3. Salary insurance plan

4. Salary Specific plan 2

255

5

Manmohan has recently purchased a house worth ` 50, 00,000 on loan.

Which insurance product you as an adviser will suggest?

1. Endowment Plan.

2. Money Back Plan.

3. Whole Life Plan. 4. Term Plan. 4

2565

To avail the income tax benefit at investment stage, premium should be

maximum1. 10% of S1. 2. 20% of SA. 3. 30% of SA. 4. 40% of SA. 2

2575

Rakesh has bought an Endowment, Money back, Term & Annuity Plan he

would like to avail Loan from:

1. Endowment Plan 2. Term Plan 3. Money Back

Plan 4. Annuity Plan 1

258 5 In Group insurance plans contract of insurance between …………?

1. Master Policy holder & insurer

2. Employer & Employee

3. Employee & Insurer

4. Creditors & Debtors 1

2596

The best way to overcome the problem of investment decision

depends mainly on peer influence is

By Canvassing wide peer group

Seeking professiol advise

Go for a low investment tranchee

Postponement of investment

decision2

Benefits of Professiol

Advise

A agent is a Professiol and gives Need based Solutions

Pg :128

260

6A person who has a temporary job

Loss , where should he look for Investing other than FD

Debt Funds of MF Govt Securities Equities Gold 1 Emergency

funds

Investment for emergency funds should be invested in saving products that offer easy liquidity and can be converted to

Cash without much loss in value

Pg: 138


261

6 RBI increased interest rates 2 times then the stock prices increase decrease volatile same 2

Implication of Interest on

saving products

Increase in Interest rates will bring the stock price down

Pg :137

2626

A person Wants to invest in a FD for Tax benefit , How many years he has

to take the term of the FD ?5 year 4 year 3 Year 2 Year 1 Income Tax

1961To avail Sec 80 C of IT 1961 , the FD

duration has to be 5 or 10 Years Pg 136

263

6

aditya wants to take home loan and his monthly take home is 80,000 what

as a best practice should be the maximum EMI

20000 24000 28000 32000 4 Prioritizing Saving Needs

Care should taken that the EMI do not exceed 40% of monthly take home salary

Pg :139

264

6

Ramesh has invested in Post office Monthly Income Scheme. The interest rate was set at 6%. What will be the

effect of rate in going years.

Increase gradually

Decrease gradually

Remain Constant

Change as per market

fluctuation3 Saving

Products

Investment is made in Lump Sum and the Interest rate is Fixed at the time of

Inception Pg 135

2656

A person is holding 100 GOLD ETF certificates . How many grams of

GOLD does he Have ?10- 20 gms 20- 50 gms 50-100 gms 10 gms 3 Saving

Products1 unit in ETF represents One Gram or

Half Gram of Gold Pg :135

266

6

A customer while investing in to Recurring deposit or Cumulative

deposit what are the key factors which will matter

Taxation frequency of payment interest rates tenure 3 Saving

Products

Three types of deposits :cumulative , recurring & traditiol . Rate of interest

varies .Pg :133

267 6 A person planning to invest in Kisan Vikas Patra will go to

Insurance Branch Post Office Internet Mutual Fund

Office 2 Saving Products

NSC . Kisan Vikas Patra , PPF etc can be brought from Post office

Pg 135

2686

If a person chooses Cumulative deposit than Recurring deposit

,difference will be in

frequency of interest

calculationTax Interest tax Tenure 1 Saving

Products In cumulative Deposits , Interest is

calculated quarterly Pg :113

2696

A policy holder pays identical premium amount for ULIP and EPF

where he gets max tax efficiencyin ULIP policy in EPF same efficiency

for both

Both do not give tax benefits

1 Tax & Inflation Life Insurance gives 80C Tax Benefit on Premium and 10 10 D on Claims

Pg 136

2706

Investing in ULIP plans exempts a maximum up to what limit for Income

Tax50000 75000 100000 200000 3 Tax

Implications

Under Sec 80 C , the maximum deductible Income from tax in a given

year is Rs 1 Lk .Pg :136

271

6Suresh wants to transfer his physical gold to gold exchange traded fund,in

relation to access,this change will

not hedge against Inflation

Decrease his liquidity

Reduce his encasement for next six months

Insurance against

Uncertainties 4

Types of Saving

Products

Good returns , Portfolio diversification ,hedging against Inflation are the other

reasons for ETFPg :135

2726 An Investor has invested in Debt

mutual fund,he is ideally looking for Equity return Fixed Income Stable income Savings income 4

Types of Saving

Products

Debt instruments caters to Saving and secure income

Pg :138

2736

With this type of deposit the bank pays the principal and the total interest at the end of the term

Traditiol deposits Recurring deposits

Cumulative deposits Term Deposits 3

2746

In Cumulative bank deposit the interest that in normally compounded

on what basisMonthly Quarterly Half Yearly Annually 2

275

6Amit has taken a G-Sec and has

parted with it mid way as he required the money with the intention of not

getting the interest. What will he get?

Discounted Value Principle amount

Discounted Value with persistency

bonus

Principle with persistency

bonus1

276

6

And received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the

reason

Administrative charge Inflation Interest rate Market Risk 2

277

6An elderly person wants to use tax efficient investment and invests in

senior citizen saving scheme. Its the impact in his taxation

He will get tax benefit up to

5000

He will get tax benefit up to

25%

He will get a reduction in tax

slab

His investment would be

deducted from taxable income

4


278

6

If a policy with premium of Rs 5000 has matured, how much will be

deducted when the maturity claim arises

Nil 1% 5% 10% 1

2796

When a person is investing in Debt Mutual Fund, what is the primary

objectiveGood Returns Regular Income Safety Liquidity 4

2806

Payment/Investments in Kishan Vikash Patra under post office

schemes

Regularly with no fixed term

Lump Sum with no fixed term

Lump Sum for fixed period of

time

Regularly for fixed period of

time3

2816

What is the similarity between Recurring Deposits & cumulative

deposits in a bank Guarantees Taxation Tenure Lock in periods 1

282

6Mrs. Sheela received some amount

out of her husband’s death. In such a situation what will be her prime focus?

Savings Insurance Investment magement

Planning for pension 3

2836

If a person want to maintain emergency funds the best place is a

bank orEquity market ULIP Debt mutual

fund FD 3

2846 What is the advantage of converting

physical gold assets to gold ETFs.Liquidity More gold in

value PurityMore

conversion value

1

285

6 Suresh wants to transfer his physical gold to gold exchange traded fund,in relation to access, this change will

Increase his liquidity

Decrease his liquidity

Reduce his ability to

encash for next six months

Create a future exit liability 1

286

6

A client has his investment in equity shares. Agent advises him to keep it in equity based mutual fund. This will

make the risk

Diversified Lessened Increased 1

287 6 Bank interest is accumulated Monthly Yearly Quarterly Once in 6 months 4

2886 Bank savings account earn

cumulative interest at what frequencyMonthly 1 Discuss

2896

If I invest in a G sec partway(ignore periodic interest payments).I will get

on MaturityPrinipal amount 1

290

6

And received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the

reason

1. Administrative charge 2. Inflation 3. Interest rate 4. Market Risk 2

291

6 Who will maintain Mutual Fund Schemes?

1. Mutual Fund Magement Societies

2. Mutual Fund Magement Systems.

3. Asset Magement

Companies.

4. Asset Maintence Company Limite4.

3

292

6 Which is the primary saving need among all saving needs? 1. Insurance 2. Purchasing

House 3. Investment.4. Contingency/

Emergency Fund.

4 Discuss

293

6

Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this amount for his daughter’s marriage which is

going to happen with in Nine months. He would like to get some returns from this money in these 9 months

period. What is the best option to park his money?

1. Insurance 2. Shares 3. Fixed Deposit in Bank

4. Mutual Funds. 3


294

6 The disposable income means......1. the surplus

amount that can be invested

2. the amount that can be paid towards one's

EMIs

3. the annual bonus amount

4. the sum of one's all

investment1

2956 Which of the following ways is easier

for a person to take a saving product?1. through

individual agents2. through

internet3. corporate

agents 4. call centers 2

296

6

Mr. Rajgopal has invested some money. He has been informed clearly

about the tenure, interest rate and method of payment of interest at the inception of the investment itself. His

investment may be in.....

1. Life Insurance 2. Mutual fund 3. Shares 4. Bank deposits 4

2976

The concept of Risk diversification is applicable in which of the following

instrument ? 1. Mutual Fund

2. Risk Diversified Insurance

3. Shares 4. Risk Sharing insurance 1

2986

Ajay bought a share for Rs.110 and he sold when it was Rs.630.What had

happened to his share?

1. Capital Appreciation 2. Capital Profit 3. Capital

Benefit4. Capital Variation 1

2996

Which of the following can’t be ducted under section 80 c from

taxable income?

1. Pension Funds

2. Public Provident Fund

3. Employee Gratuity Fund

4. Infrastructure Bonds 3

3006

Who act as an intermediary by offering a trading platform for buying

and selling of shares?

1. Bombay Share exchange

2. Bombay Stock exchange

3. Stock brokers

4. Share brokers 2

3016 The savings needs of a particular

individual is majorly determined by

1. Amount of disposable

income.

2. Current assets.

3. Current liabilities.

4. Duration of investment. 4 Discuss

302

6

For his investment need, Ravi has parked funds in equity. The returns from this form of investment can be

categorized as

1. High Risk. 2. Low Risk. 3. Moderate Risk. 4. No Risk. 1

303

6

While calculating the expected returns from investments and savings, an individual should make provisions

for

1. Taxation only. 2. Inflation only. 3. Taxation & inflation both.

4. No provision is require4. 3

304 6 Time deposit account is issued by: 1. Post office 2.Bank 3.Mutual Fund 4. Life Insurance co. 1

305

6

Pankaj want to save tax over and above the deduction allowed under section 80C of the income tax act 1961, which allow deduction from

taxable income

1. Corporate Bond

2. Infrastructure Bond

3. Health Insurance

4. Interest paid on education

loan2

306

6

In which of the following Bank pays the Interest on the deposit’s fund on

monthly /quarterly /half yearly/ yearly basis as chosen by depositor fund:

1. Saving Deposit

2.Cumlative deposit

3. Traditiol Deposit

4. Fixed Deposit 3 Discuss

307 6Sanjeev in a lumsum investment is getting benefit of multiple securities Bonds Fixed Deposit Mutual Fund KVP 3

3086

If the client prefers bank fixed deposit rather than cumulative deposit ,due to

what implication ?Investment Frequency Interest Rate Look in period Taxation

1

309

7

Omkar Started a pension policy with provider A but ended up in taking the annuity payment from provider B.The result directly reflect the which feature

available with this policy

Commutation Option

Differed Annuity Option

Guaranteed period option

Open Market option 4 Annuities

Open market option allows the Annuitant to get the best scerio by taking his/ her

annuity from other companies Pg :155


3107 what frequencies can one take

annuitymonthly,quarterly

,half yearly,

fortnightly,quarterly,monthly,yearl

y

fortnightly,monthly ,half yearly,

yearlyYearly Only 1 Annuities Most of the people choose Monthly Mode

thoughPg:157

311

7All ULIP pension plans have to give

how much percentage as Guaranteed returns

6% 9% 4.50% 10% 3 Annuities

As epr IRDA regulation post 1st Sept 2010 , The minimum Guaranteed returns

in a pension plan has to be 4.5% . The insurer will have to invest very prudently

to get this %age return

Pg :157

312

7Yash wants to take open market

option in Pension plan. What is the benefit?

To save tax To switch the underlying fund

For improved annuity rate

To continue life cover 3 Annuities

Open Market Option allows the Annuitant to look at the best Rates in the market

from other Insurance companies before taking the pension payouts

Pg :156

313 7 Commutation option allows the annuity policy holder to with draw 25% 50% 40% 33% 4 Annuities One third of the Corpus can be withdrawn

on vesting date Tax Free Pg :156

3147 commutation is a feature of which

type of policy annuity joint life policypure

endowement policy

policy of another person 1 Annuities

Commutation allows the Annuitant to withdraw 1/3rd of the corpus amount Tax

Free at vesting date Pg :156

3157 Waiting period in a health insurance

policy is to address Age discrepancy Pre existing illness risk premium 2 Health plans

Most Insurer have waiting Period in the health Plans for covering any pre existing

illnesses Pg:151

316

7Under a health insurance policy,if a policy holder needs to avail his no claim bonus, how can that be done

cash encashment

discount in the next premium

increase in the cover level

certain policy exclusions 2 Health plans

No claim bonus is a feature of health plans in which if no claims are made in a policy year , the insurer will give some discount on the next renewal premium

Pg :151

317

7

Danny is married and has two children aged 6 & 10 , His parents are aged 68

&70 . Who all can be included in Family floater option of a health plan

Only Danny Danny & his Wife

Danny , His wife ,His children

Danny's family and his parents 4 Health Plans

Family members can be covered under One Umbrella . However some Insurance

Companies will have specified the number of members one can take under

Family floater

Pg :150

318

7 Implication of Daily Hospitalisation benefit paln Fixed amt daily SA

Amt for particular

diseases daily

On the expenses

incurred daily due to critical

illness

1 Health products Fixed amount is paid on hospitalization on a daily basis

Pg :150

3197

Rupkumar wants to take Commutation option. What is the

maximum amount he can withdrawone sixth one third 25% 15% 2 Pension Plans

Under Sec 10 10 A , Commutation , you can withdraw 1/3rd of the Corpus Tax

FreePg :156

320

7Critical illness rider was taken and the rider benefit has been claimed , the

rider benefit now gets

Reduced the the base SA termited continues as it

is

New critical Illness Rider

has to be added to base

Policy

2 Riders

Lump Sum SA of the rider benefit is paid on diagnosis of the critical illness as per the Rider Feature and subsequent claims

under it will not be paid as the rider termites

Pg :154

321

7A person has taken a term insurance

of 4 Lac. What is the maximum Critical Illness Rider he can take

1 Lac 2 Lac 3 Lac 4 Lac 4 Riders Benefits arising of the Riders cannot exceed the Base Plan SA

Pg :155

322

7

Mr. Sharma buy term insurance policy along with Accident and Disability

benefits rider cost restricted upto the base premium of the policy?

20% 30% 40% 50% 2 Riders According to IRDA regulations Premium

of all riders taken together should not exceed 30% of the base policy premium

Pg :155

323

7

Mr.Ramesh invested Rs:50000 in pension policy, what is the percentage he can avail as exemption in Income

tax.

33%Pension plan is not eligible for tax exemption

100% 20% 1 Tax Implications

Under Commutation , person can take 1/3rd of the corpus amount Tax Free at

vesting date under Sec 10 10 aPg 157 :B6

3247

In a Guaranteed annuity option of 5 years , the policy holder will get

annuity tillentire life term

till 5 years and continue till

annuitant lives

annuity only for 5 years

premium payment term 2

Types of Annuity

Payment

Pension Payout is fixed for certain period guaranteed like 5,10,15,20 and then till

Life of the annuitant Pg:156


325

7 The Premium on all riders put together should not exceed

10% of the premium on the

base policy


base policy


base policy


base policy3

326

7 How riders will help the customer in life insurance

allows policyholders to customize their insurance cover

with additiol benefits

Rider is like a clause

Operative clause

Rider is like Preamble 1

327

7 In Daily hospitalization cash benefit scheme

The daily amount paid is fixed and

will never be more or less than the cost of actual

treatment

The insurance company may pay an additiol amount on a

daily basis if the insured is

admitted to the Intensive Care

Unit (ICU)

The insurance company will pay for doctor consultation fees incurred

prior to hospitalization

Only surgery expenses are

included in daily

hospitalization benefi

1

328

7In term insurance if Critical illness rider claim happens then what will

happen to existing policy

CI benefit will cease

CI benefit reduced from existing sum

assured

CI benefit continues

No change in policy 1

329 7Family floater health Insurance plan

coversAll members of a

FamilyHusband and

Wife only Parents only Children Only 1

330

7How the Daily hospitalization cash

benefit will provide benefits to policyholder who is hospitalized

Entire charges are refunded

Entire charges less bed charges

will be paid

A fixed amount on a daily basis

is paid irrespective of the actual cost of treatment

Only Hospital bill will be paid 3

3317 The premium for accidental death

benefit rider must not exceed15% of base

policy premium25% of base



policy premium 3

332

7 Under the hospital care rider what is the payout made

10% of the sum assured

Specified amount

multiplied by the number of days the policyholder is hospitalized

2

333

7

One person wants to take term plan for 20 lakh and wants to take ADB

rider, he is not sure of how much sum assured he needs to take for ADB

rider. What is your suggestion?

Needs to take expert’s

suggestion

Equal to base cover 2

334

7 What are the benefits to the policyholder Under Surgical care

rider?

Number of days admitted in hospital & surgery

expenses in full

Number of days admitted in hospital & surgery

expenses in partial

Treatment cost of surgery subject to terms &

conditions

Lump sum amount what

he has incurred 3

335

7

Health insurance policy holder takes treatment in a hospital which doesn’t have cashless facility. How the policy

holder will get benefited

Need to spend and Get claim

from the insurer

Need to add that hospital as TPA

Need not to claim

Need to switch to the another

insurer 1

336 7Health insurance rider and critical

illness rider in classified underLife and non life

respectivelyBoth life

insuranceBoth non life

insuranceNonlife and life respectively. 2


337

7In a pension plan illustration what are the parts which shows the benefit for

an annuitant.

Insurance coverage Annuity part

Guaranteed and non

guaranteed partVesting age 3

338

7

What is commutation of installments

The lump sum withdrawal

before receiving periodic

installments of annuity


before receiving maturity benefit


before receiving

Survival benefit


before receiving Death

benefit

1

339

7

Health Insurance is needed because

Life is very uncertain

Cost of healthcare has

increased significantly

Premium increases with

age2

340

7

Rajan and Rajini has taken a Family Floater health insurance Plan of 4

lacs. They met with an accident and had a hospital bill of 6 lacs. Which is

true for this situation:

They would get the claim of 6 lacs since the

individual cover is 8 lacs

The claim will depend on the

surveyor

The maximum claim will be of

4 lacs

Rajan will get a claim of 3 lacs and Rajini will

get 1 lacs

3

3417

Open market option under Annuity policy would extend which of the

following benefit?

Ensure Better annuity rate

Increase in the range

Increase in return

Switch of Funds 2

342

7

Ajit and vijit are 2 friends paying same premium for health insurance. Why ajit has higher tax exemption

eligibility than vijit

Ajit is above 65years of age whereas vijit is

below 65

Ajit is NRI and vijit is Indian

Ajit’s health is better than vijit 1

343

7

While calculating retirement fund required for a self employed person

which of the following option will automatically be ruled out

Gratuity amount His standard of living 1

3447

In case of pension plans a guaranteed minimum return of 4.5 % is applicable

when the plan is Indexed Guaranteed Unit linked 3

345

7

Which of the following is true regarding Family Floater Health

Insurance Plan?

A Family Floater Plan is the same as a Individual

Plan

Only self and spouse can be covered in this

plan

Any number of people may be covered in this

plan.

The insurance cover is shared

amongst the family

members in no fixed

Proportion

4

346 7 In what proportion is the cover in a

Family Floater Plan shared? 25% each 15% each 50% each No Proportion 4

347

7

The rider which is given by the Insurance company pays for the treatment costs in the event of

hospitalization of the insured person is called

Critical Illness Rider

Hospitalization Care Rider

Accidental Benefit Rider

Surgical Care Rider 2

3487

Mr. X is married with wife, 2 children and aged parents Health premium is

allowed forX only X with wife X with wife and

kids X with all 4

349

7

Hospitalization rider has the following benefit:

Person receives fixed amt daily

for no of days in hospital

Person receives an amount equal to the expense.

Person receives a

fixed amount of 1000 daily.

Person receives

benefit only if he is

hospitalized for 3 days

minimum

1

350

7

In a Health insurance plan what the particular feature is likely to cause the

Insurer to decrease the Renewal premium?

Cashless facility Exclusion No claim bonus Waiting period 3


351

7

Daily hospitalisation benefit:

No of days spent in hospital

multiplied by Daily

hospitalisation benefit

1

352 7 ADB rider premium cannot exceed30% of the base

premium 1

353

7

Customer has opted for a 5 yrs guaranteed annuity option. What will happen to annuity, if the customer

survives for 5 years after the end of guarantee period?

1. paid up to 75 Yrs

2. annuity will be continued for next 5 Years

3. till he die 4. not remembered 2 Discuss

354

7

The rider which is given by the Insurance company pays for the treatment costs in the event of

hospitalization of the insured person is called

1. Critical Illness Rider

2. Hospitalization Care Rider

3. Accidental Benefit Rider

4. Surgical Care Rider 2

355

7 Which of the following product not

comes under Section 80 ( C ), income tax act 196

1. tiol Saving Certificates.

2. Equity Linked Saving

Schemes.

3. Principle component of

home loan.

4. Premium paid for Health Insurance Plan.

4

356

7

Mr. Suresh purchase one pension plan and accumulated Rs. 9,00,000

amount in his pension fund. He would like to utilize commutation benefit

before taking pension. What is amount Mr. Suresh can withdraw as

commutation?

. 3, 00,000/- 4, 50,000/- 90,000/- 4, 85, 468/- 1

357

7

Customer has to pay the amount in regular intervals to create purchase price or Pension Fund. We call this

phase as…..

1. Collection Phase.

2. Accumulation Phase

3. Pension Phase.

4. Primary Phase. 2

358

7 Some Health Plans will give

coverage for family members also. We will call these plans as…..

1. Family Health Insurance Plans

2. Total Protection Policies.

3. Family Floater Health

Insurance Plans.

4. Family Rakshak Health

Plans.3

359

7

Mr. Hitesh would like to get health coverage along with Life Insurance.

What are the options available to Mr. Hitesh to fulfill his need with a little

cost?

1. Taking Life Insurance plan

with Critical Illness Rider.

2. Taking Health Plan, Insurance Plan separately.

3. Taking Medi-claim plan with Life Insurance.

4. Taking Hospital

Benefit Plan with

Endowment Plan.

1

360

7

Mr. Govind, Advisor with ABC life insurance company find out one client

is seeking solutions for health care and inheritance planning. Which main

life stage he most likely to fall into?

1. Young Unmarried.

2. Young married with children. 3. Retirement. 4. Children. 3

361

7 Which of the following is not a feature of WOP rider?

1. The rider waives future

premiums in the event of the disability or death of the

policy holder.

2. This rider is ideal for helping

to prevent a policy lapsing due to non-payment of

premiums due to death or disability

3. The main strength of WOP is the

payment of full sum assured.

4. WOP rider can be offered with all plans

4

362

7

Mr. Ramakant is 35 years old. He has bought retirement plan for 20 years. This type of pension plan is

known as..................

1. immediate annuity 2. life annuity 3. deferred

annuity4. joint life

annuity 3


363

7

Mr. Ranga has taken Critical Illness Rider. In which of the following

scerios the insurance company will pay him......

1. When Mr. Ranga dies due to critical illness

2. When Mr. Ranga is

diagnosed a critical illness

3. When Mr. Ranga's family member will be in critical illness

4. When Mr. Ranga dies due to severe road

accident.

2

364

7

Mr.Feroz has taken policy for critical illness worth Rs.1 lakh in health

policy. He also has a term plan worth Rs.10 lakhs. Mr.Feroz was

hospitalized after he was detected with cancer .Unfortutely he died after 3 days of treatment. How the claim

will be settled?

1. claim of critical illness

and 10 lakh from term policy will

be settled

2. claim of hospital charge Rs 20,000 and 1

lakh for death will be settled

3. Claim will not be settled as he died due

to cancer

4. Claim will be settled as per

the instructions of underwriter

1

3657 Which one of the following cannot be

covered under Critical illness rider? 1. Blindness 2. Paraplegia 3. Coma 4. Brain Surgery 4

366

7

Mr. Yash has taken an annuity on 25th August 201The benefit of the

plan will start from 25th August 201 What type of annuity plan is this?

1. Guaranteed period annuity 2. Life annuity 3. Deferred

Annuity4. Immediate

annuity 4

367

7

Rohit is working as sales mager with an FMCG company. His job requires

him to travel across states. He is planning of covering his additiol risk

involved while travelling and a savings plan. What suggestion would

you give him as an agent?

1. To purchase an accidental rider with a

savings insurance plan.

2. To purchase a health plan along

with a savings insurance plan.

3. To save through fixed deposits in

bank.

4. To purchase a medical plan. 1

368

7

The general need for purchasing a health insurance plan at an early age

results from which of the following factors?

1. The premium decreases with increasing age.

2. The premium remains constant with increasing

age.

3. The premium may

increase or decrease with the increasing

age.

4. The premium

increases with increasing age.

4

369

7

The life expectancy in India is constantly improving and is well above 60 years. This also brings

along challenges. These challenges can be covered through

1. Equity. 2. Bank fixed deposits.

3. Health insurance plan.

4. Savings insurance plan. 3

370

7

And has purchased a pension plan which is nearing completion of

accumulation phase. He is in need of finces to make down payment of car he wants to purchase. At the end of

accumulation phase how much he can make tax free withdrawal?

1. 1/5th of accumulated

amount.

2. 1/3rd of accumulated

amount.

3. 2/5th of accumulated

amount.

4. 2/3rd of accumulated

amount.2

371

7 Which of the following is not featured and benefit of rider?

1. Providing additiol cover

2. Maturity benefit

3. Nomil cost & flexibility

4. Customization

and tax benefit.2

372

7

Gaurav bought an endowment plan for 20 year of 10 lac SA with ADB

Rider, died in road accident after 10th year how much money claimant would

be payable:

1.10 lac 2. 20 lac 3.30 lac 4.5 lac 2

373

7

Under what kind of Rider the insurance company pays the treatment cost in the event of

hospitalization of the insured, subject to term & Condition of the rider.

1. Accidental death benefit

(ADB)

2. Critical illness (CI)

3. Hospital Care (HC) 4. Term Rider. 3


3747 The risk of unemployment is covered

with what benefit in the policy Rider Continouation Subsidiary discount1

375

7

In Surgical benfit rider what would be the payout procedure

Per day Hospital Cash Benefit Respective to

the surgery made

Per day Hospital Cash Benefit

irrespective to the surgery

made

Will get lumsum benefit

respective to surgery have been made

Irrespective to the sugery

3

3767

A Critical Illness claim is settled in a policy. The benefits of the policy can

be used for Only for IllnessFor Repairing

houseOnly For

Doctors fees Not specified4

3777

If a health rider is taken in a policy, maximum rider premium can be

%age of base premium 25% 50% 75% 100%4

378

7

In a pension policy if agent says the cost would be 120% of present value if he invests for 10 years, this is due

to Charges Compounding TaxationPremium increase

2

3797

Under daily hospitalisation cash benefit scheme the amount payable is

increased due to what reasonChange in hospital

Special consultant charges

Admission to ICU

3

3807 Insurance addresses the needs of

people with risk of living too long by..Extensive

documentationRestricting the

max age at entry

Extensive underwriting at

inception

Retirement and pension plans 4

381

8

Why do Self Employed Individual have the need to buy Medical

Insurance rather than People working in public Sectors

Public Sectors do not get Sick

often

Public sector employees enjoy

Medical Insurance

Covers related to Job

Self Employed people do not

have Sick Leave

Loans are available faster

for Public sector

EMPLOYEES

2factors

affecting Life stages

Public sector makes provision for PPF , health

Pg:172

382

8

Mohit has two kinds, one of 6 years and other 8 years.He is the earning member and not having life cover. Before advising him to take health policy, what he should be advised.

Health policy for child

Health policy for wife

Life insurance policy for wife

Life Insurance policy for himself

4 Life stages Protection of Asset is the most factor Pg :170

383

8

Manoj a 26 year old is having 7 years old son. What will happen to his

monthly disposable income after 15 years of job

Margilly decrease

Singnifcantly increase

less than after 15 years

will remain same 2 Life stages

The Income earning capacity keeps going up there by allowing the disposable

income to increase as the time goes.Pg :164

384

8Samir is married and he has only one partner,with dependant parents and no child,which should be his priority

income protection

inheritance planning

investment efficiency

long term savings 1 Life stages Single Income family , Insurance

protection is very important Pg :168

385

8

The sole focus during a client’s fact-find session was healthcare

requirements and estate planning. Which main life stage is he most

likely to fall into?

Young married couple

Young married with children. Pre-retirement. Retirement 4 Life stages

The clinet needs @ Retirement age is Investment to get regular income , estate

planning and revisiting the health insurance plans to see their adequacies

Pg :170

3868 A Couple has 7 years old son, What

solution would they be looking for Retirement health care child education life cover 3 Life stages Along with Life cover , child education planning is important stage

Pg :168

3878

In which of the recognized life stages an individual does not required any

protection coverChildhood Young Married Pre Retirement Retirement 1 Life stages of

Clients Children normally do not have their own

Income source Pg :167

388

8

Benefit Illustration given to a customer quantifies an amount by

which investment return is reduced. This reduction reflect the impact of

Charges Interest Inflation Taxation 1 Fact finding The Electronic benefit Illustration gives all information of Returns , Charges

Pg:194

389 8Life insurance is the most important

for which age group Young Pre- retirement Retirement children 1


390

8

Ashish is looking at different plans of insurance for protection at the lowest premium. Which is the best plan for

him?

Term plan Endowment plan Whole life plan Money back plan. 1

391 8During Fact finding, rating is mentioned ‘3’. This Indicates

Risk apatite of client

His future aspiration

Commitment to need

Willingness to pay 1

392

8Shailesh and ankit want to retire in the age of 65yrs. But shailesh pays more monthly payment than ankit. Why?

Shailesh is very older than ankit.

Shailesh’s income is more

than Ankit’s income

1

393

8

During fincial planning session if the agent finds out the following needs, which one should be given the top priority. Needs: Income protection,

Childs education, marriage and emergency funds.

Childs education Marriage Emergency funds

Income protection 4

394

8

Ajay and Vijay both are unmarried. Ajay has dependant Parent. Which

need Ajay must take care of on priority, although that will not be a

priority for Vijay?

Retirement plan Health insurance for parents

Term Assurance

Endowment Plan 2

395

8

In the context of fincial planning, how is the difference between real needs and perceived needs best described?

Real needs are fincial needs and perceived needs are non-fincial

needs.

Real needs are actual needs and perceived needs are based on a client’s thoughts

and desires.

Real needs are identified by

the insurance agent and perceived needs are

identified by the client.

Real needs are needs which

satisfy an objective and

perceived needs are

needs which do not satisfy an

objective.

2

3968

If a person is concentrating more on health plan and retirement plan then

at which stage of life is he in.Young unmarried Young married Young married

with Kids Pre retirement 4

397

8

Manish and Manisha is a married couple with one child. They want to

plan for savings, child education/marriage and their

retirement and protection of income. Which should be their lowest priority?

Marriage. Savings. Education. Protection. 1

3988 During fact finding, What will be the

next step after Identifying clients need

Quantify clients need

Priorities Clients Need

Recommending Product

Fill up the proposal form 1

399

8

Akash is an Unmarried person and employed with company ABC and

drawing a handsome salary. He has no liabilities. What kind of plan can be

suggested to him?

Money Back Term Plan Endowment Plan ULIP 4

400

8Sumit is having 2 children. He wishes to have health cover for himself and his wife. Which suits him the most?

A family floater Life insurance Individual cover

Group health insurance plan 1

401

8

A client has got some funds and wants to provide for retirement and margin money. What should be his

priority

Margin money Retirement plan

Depends upon his actual age and years left for retirement

Depends upon the amount

needed3

402

8

While planning for retirement fund to calculate the required amount needed

at that time we should consider as priority

The inflation rate The interest rate His income 1


403

8

Ajay is 35 years old. He wants good amount of life insurance cover along with savings element with no defined

term. Which plan should be suggested

Endowment Term Whole life Moneyback 3

404 8The income of an individual can be

protected with the help ofa unit linked

policy a term life policy an endowment policy

a money back policy 2

405

8

A married couple having 9 year old child have to consider life insurance, health insurance, child investment & retirement plans for their better future as a family but at present condition

which aspect should be kept at lowest priority?

Child Investment Health Insurance Life Insurance Retirement 4

406

8

After completing a Fact Finding activity for a client, who is self

employed, the main reason why it is important to record the type of work

that he is involved in is…

It affects the basic cost of

cover

Dictate the Rider Benefit should

be recommended

Helps to quantify the

client’s attitude to risk

Influence the tax status 3

4078

Mr. Shyam is having 9 year old child. Which product is not to be given

priority?Health plan Child Plan Life Insurance Retirement

Plan 4

408 8What is the major reason for self

employed to take insurance. Save Tax Fluctuating income High Returns Protection 4

409 8What is the major reason for

conducting fact finding exercise? Need alysis Understand about company

Introduction of agent

Understanding the Customer 1

410

8

veen, aged 32 years, has taken money back plan. He is a teacher by profession. veen referred Prasad to Ram. Prasad is also teacher. Ram who is an agent advised Prasad to take money back plan as he is of

same age (33 years). Is it the right advice? Why?

Yes, as veen and Ram are of same

age.

No, customers needs are different

Yes, as both are teachers

No, as there is an age

difference.2

411

8There is a relation between Age, Risk and Risk appetite. Which relation is

most likely to be acceptable?

Age increases, Risk increases and the Risk

appetite increases

Age increases, Risk increases and the Risk

appetite decreases

Age increases, Risk decreases

and the Risk appetite

increases

Age increases, Risk decreases

and the Risk appetite

decreases

2

412

8

Regular savings creates a fund to meet adverse incidents in future. For

drawing a fincial plan for savings needs of an individual without capital, what is the Fund which comes first?

Retirement fund Emergency fund Fund for untimely death Education Fund 2

413

8 A Proposer asks for double death benefit in an Endowment assurance plan for 15 years. How his proposal

will suitably be dealt with?

By offering another

Endowment assurance plan

By addition of Accident Benefit

rider to the proposed


By addition of Term

assurance rider to the proposed


By addition of Premium

waiver rider to the proposed Endowment

assurance plan

3

4148 A provision for superannuation is

normally taken a high need to

a Public sector employee

an unmarried young

A self-employed

person

A Government employee 3

415 8A person has 6 months of emergency

funds.This is: Reasoble 1


416

8

During fincial planning session if the agent finds out the following needs, which one should be given the top priority. Needs: Income protection,

Childs education, marriage and emergency funds.

1. Childs education 2. Marriage 3. Emergency

funds4. Income protection 4

4178 Perceived needs are those…. 1. Short term

needs.

2. Imagined to be important by

Advisor.

3. Imagined to be important by

client.

4. Long term needs. 3

418

8 Need alysis involves identifying………

1. Fincial provision to meet predictable and unpredictable

needs.

2. Capacity to pay the

premiums in future.

3. Existing insurance

plans.

4. Family and Employment

details.1

4198

Mr. Shanth is in his early 20s and has just started earning. His risk appetite

is expected to be.....1. high 2. low 3. normal 4. Neutral. 2

4208

The younger the age of an individual..............their liabilities will

be.1. the lower 2. the higher 3. the smarter 4. the superior 1

421

8

Mr. Ramachandra's son Mr. Bharat has just employed as a software

engineer, daughter Anusha has got married. Now Mr. Ramachandra is

free from his burden. So Mr. Ramachandra is now in the

...................stage.

1. Pre-retirement stage

2. Post retirement stage

3. Married with older children

stage

4. Employment stage 1

422

8

Mr. Vinodh has lot of inconvenience to reach office every day. So he

wants to buy an expensive car when he will have sufficient fund. Here Mr.

Vinodh's need is.............

1. Real need 2. Perceived need 3. Imagiry need 4. Important

need 2

423 8 Which are the two primary needs of any customer in any point of life?

1. Investment and retirement

2. Investment and Protection

3. Investment and savings

4. Investment and life needs 2

424

8 The concept of need based selling involves

1. Selling what company wish to

sell.

2. Selling what adviser wish to

sell.

3. Selling what customer

requirement is.

4. Selling what IDRA wants company to

sell.

3

425

8

Vijay, aged 30 years and married, is the sole bread winner for his family.

He is saving enough with banks.As an agent, which need you prioritize first?

1. Retirement need.

2. Tax planning need.

3. Fincial security need.

4. Asset building nee4. 3

4268

The Central Bank has recently announced the decrease in interest

rates. The prices of bonds are

1. Likely to increase.

2. Likely to decrease.

3. Will fluctuate.

4. No change is likely. 2

427

8During the fact finding session as an agent you should follow which one of

the following process?

1. Prioritize, Identify &

Quantify Needs.

2. Identify, Quantify &

Prioritize Needs.

3. Quantify, Identify & Prioritize Needs.

4. Prioritize, Quantify &

Identify Needs.2

4288

Amit is looking for term insurance plan for protection of his family, he is

advised to approach to:

1. Property Insurance 2. Life Insurance 3. Health

Insurance4. Liabilty Insurance 2

429

8 What do you mean by Double Income Family?

1. When a person of the

family is involved in

double businesses or

jobs.

2. When both the life partners are

earning members of the

family.

3. When the income of a family is just the double of

income of another family.

4. When the members of a family do not work at all.

2


4308 In which of the following case there is

no defined retirement age?1. Public sector

employees2. Private sector

employees3. Professiols & Businessmen

4. All of the above 2

431

8 Which one of the following is true?

1. Every individual’s income and expenditure

pattern is same.

2. Every individual’s income and expenditure

pattern is different.

3. An individual’s income and expenditure

has no relation.

4. An individual should not keep

in mind his income while planning his expenditure.

2

432

8Ram has set a provision for

contigency which can survive for 6 month .This amount is considered as

Adequate Idequate too low too high 1

433

8XYZ client wants to buy a car in future , however his fincial planning shows that he cannot afford car as of now

.As a fincial planner you should

Explain him difference

between real need &

perceived


between fincial & non fincial need

Explain him difference between

important & unimportant

need


between short term & long term need

1

434

8 Which is suitable life stage to buy Unit linked insurance plan?

Young Married with no children

and Single income family

Young Married with no children

and Double income family

Young Married with children and Single

income family

Young Married with children and Double

income family

2

4358

X and Y are married, they are planning for estate planning, which

life stage do they belong to

Young married with single

income no kids Retirement Childhood Pre retirement4

4369 objective of fact finding client need alysis Product Pitching for completing

ACR Finding out

Moral hazards 1 Fact Findingfact finding process helps in identifying

the clients fincial needs, to quantify them & to prioritize them ,

Pg :184

4379 Fact finding sheet allows the agent to Alyze customer

needsSelect the

product Proof Reference 1 Fact findingFact finding as a process is to identify the

clients needs , quantify them and prioritize them

Pg :184

438

9Mr A has been approached by the

Agent and on fact finding the score is 3 , this represents

Low Risk Taking High Risk Taking Moderate Risk Taking

Zero risk Taking 3

Fincial Planning objective

The grading is in 0 -5 rating , O denotes No risk taking ability and 5 denotes High

risk taking ability of the client Pg 190

4399

To ensure that the premiums are paid out of a legitimate source of funds

cash is acceptedUp to Rs 50000 Up to 99990 Up to 100000 Without any

limit 1

4409

With effect from 1st July 2010 all insurers have to disclose in the

benefit illustration document the..

Commission Pay to their agents Detail of charges Both of the

aboveNone of the

above 1

4419

If the client accept the recommendation, then the agent

should ask the client..

To pay the premium

To fill in the proposal form

To ask the documents

None of the above 2

442

9

What should an agent do in order to understand the mental state of client

in respect to his investments in saving products

Fact finding Consulting the client’s parents

Consulting the family of the

client

Reviewing his existing

investments1

4439

During product recommendation the agent should explain the product in

relation to

The needs that came to fore in

fact find process

Benefits of the products

Commission on the products 1

444

9

An agent was explaining to his customer the guaranteed benefits of

the product. Which one of the following documents he would have

used to explain the same?

Fact Finding document KYC document

Benefit illustration document

Client benefit document 3

4459

resh is married and his daughter Sneha is 3 years old. Which plan can

he take?

Term & Children Plan Annuity Plan Whole Life

Plan Health Plan 1


446

9 If the recommendation of the agent has been rejected by the client, the

agent should:

Ask the client to fill the proposal

form

Find out the reasons for

refusal

Must try to convince the

client to follow his

recommendation

Must try to force the client

to follow his recommendatio

n

2

447

9

Fincial planning may not be taken as complete till inclusion of the

predictable needs of the clients. It is likely to emerge from the incident of

Disability Unemployment Sickness Education 4 Discuss

4489

Which one is not an assetHouse House loan

Investment in shares and mutual fund

All of them 2

4499 During Fact finding, rating is

mentioned ‘3’. This Indicates1. Risk apatite of

client2. His future aspiration

3. Commitment to need

4. Willingness to pay 1

4509

Which type of questioning is very useful to gather information from

clients?

1. Closed Ended Questions

2. Open Ended Questions.

3. Interrogative Questions.

4. Clarification Questions. 2

451 9 Which is the not part of KYC norms? 1. Photographs 2. Proof of identity

3. Proof of address.

4. Lapsed policy details. 4

452

9 During the recommendation stage the advisor needs to......

1. recommend the products that

best meet the client's needs

2. recommend to wait some days

to invest

3. recommend the new

product the company has

recently launched

4. Recommend to take his own time to take a

decision.

1

4539

In which of the following an agent will collect the customer’s Persol data,

professiol data and fincial data

1. Fact Finding Sheet

2. Advisor Confidential

Sheet

3. Customer Data sheet

4. Persol and fincial data

sheet 1

454

9

Mr.Mohith, an agent was explaining to his customer the guaranteed

benefits of the product. Which one of the following documents he would have used to explain the same?

1. Fact Finding document

2. B.KYC document

3. C. Benefit illustration document

4. D. Client benefit

document 3

455

9

Mr.Harsha an agent wants do a thorough Fact Finding for his client to

Mr.Kishan who is a business man. Which of the following information will be helpful to know about the earnings

and Expense of Kishan?

1. Client’s Profits and Withdrawals

from business

2. Client’s Expense statement

3. Client’s business details

4. Client’s business records

1

456

9 As an adviser why is it essential for you to carry out the fincial planning

exercise with the prospective clients?

1. Individuals understand their real needs and can prioritize

them.

2. Individuals have same

fincial needs at different stages of the life cycle.

3. Individuals do not

understands their real needs

and cannot prioritize them.

4. Individuals’ real and

perceived needs are

same.

3

457

9

After undertaking fincial planning exercise, the prospective client said

that he does not have funds for investments. To resolve this query,

which skill of an agent would be tested?

1. Objection handling skills.

2. Listening skills.

3. Communication

skills.

4. Client information

gathering skills.1

458

9 The objective of Fact Finding is to 1. Gather Clients Information only.

2. Identify only the client’s

needs.

3. To provide solution of company’s

choice.

4. Both identify clients’ needs &

gather information.

4


459

9 To explain the benefits of a product, the insurance adviser should

1. Provide the product brochure

to the client.

2. Provide Benefit

illustration documents to

client.

3. Provide the terms and conditions

document to the client.

4. Provide the website

address to the client.

2

460

9

Amit & Rashmi are newly married. Both are working couple. They want to

invest their savings of 100,000 annually to build corpus to make

down payment for their house 5 years from now. An adviser sold than a unit link product to meet their requirement.

This may result in

1. Ruining the long term

reputation of company.

2. Opportunity of new business for

adviser.

3. Bad reputation of the individual

adviser.

4. Fincial burden on the

couple.2 Discuss

461

9

To prove one’s identity in accordance with KYC process, the customer

needs to submit following document excluding ……….?

1. An Age Proof 2. An Identity Proof

3. An Address Proof

4. Education Proof 4

462

9Vinod being an insurance agent can offer assistance to his client Ramesh

by:

1. Providing him emergency fund.

2. Matching the product with

Ramesh‘s fincial need.

3. Recommendation of product with highest

return.

4. Discourse saving in a

purposeful and need based

manner.

2

463

9 Objectives of fact-finding do not include- 1. Identify needs 2. Gathering

client data

3. Provide for anticipated

changes

4.Surrendering the existing policies for

selling new one

4

464

9Which one of the following documents

distinguishes between Guaranteed and non-guaranteed benefits?

1. KYC documents

2. Benefit illustration documents

3. Fact-finding sheet

4. Fincial details 2

465

9

After fact finding , Ram has presented the product to the client in te second

meeting . If client approves the recommendation what should be the

next xtep

Ask the client to sign the contract of relationship

Check the client's

commitment to the need &

continue with process

Should take some more

time to conclude the

sale

Should close the discussion then & there

2

466

9which of the following is the fil stage

of fact finding with the client?

Discuss with proposer about

future life prospects and

changesCompletion of Proposal form

Recommending Solutions

Coming to mutual

agreement with objective for

Solutions

4

467

10

a policy holder takes two insurance policy and the premium amount is

identical and he gets lesser commission in one of contract the

reason is likely to be

one policy has more SA

ONE POLICY has more term

one policy is a single premium

One of the policy has

higher Premium

3 Agent

Agent can receive maximum up to 35% Commission in first year . Maximum

commission in ten years horizon cannot be more than 40.%.

Pg :201

468

10

An agent reveals his commission received from insurance sales to X&Y

.Both plans are of same duration . Why is commission of X far higher

that that of Y

X has brought other limited

premium product

Y has brought a single premium

product X is married Y is Single 2 Agent

different products have different commission . Maximum Commission

payable in First Year cannot exceed 35% Pg :202

469

10 Customer asks the agent to disclose the commission . The agent should

disclose on demand Not disclose Should call up

the InsurerShould avoid

the topic 1 Agent role & responsibility

Sec 42 of Insurance act 1938 defines licensing procedure for agents .Agents should disclose their commission to the customer on demand and yet not give

any rebate

Pg :202

470

10

The best way to prove that customer of a ULIP policy is given awareness about the commission paid to the

agent is

Ask the insurer to give a policy endorsement

letter

From the fact details

From signed copy of benefit

illustration

From ticked column of

proposal form3

Agents Upfront disclosure Methods

As per IRDA regulations , agents are supposed to disclose their COMMISSION when asked by the customer . However

Rebates are prohibited

Pg:102


471

10 Churning is bad , based on which aspect

Agents earn Lower

Commission on churning

Policyholder gets more benefits

Policyholders suffer due to

surrender charges and

benefits

Insurance companies get good branding

3Churning &

Product switching

Repeatedly encouraging clients to switch policies / Investments from one another is

called churning Pg :204

47210

what over riding criteria an insurance agent consider while proposing a

solutionrisk suitability Flexibility Cost 2

Duties & Responsibilities

of agents

Agent is an intermediary between Insurer and the Client

Pg :200

47310 Sales Target is reduced . Churning

will Increase Decrease Will not affect Partially 2 Persist encyRepeatedly encouraging customers to

switch policies or investment from one to another is called Churning

Pg 204 : D4

47410 Higher persistency to the insurer

ensures what ? More productivity Higher attrition Higher Profits Higher S.A 3 Persist ency Higher Persistency helps Insurer to get

Higher revenue thereby increasing profitability

Pg :206

47510

Persitency =has increased from 82 % in previous year to 86 % this year .

That meansmore lapsation more attrition less lapsation No profits 3 Persist ency

Higher Persistency helps Insurer to get Higher revenue thereby increasing

profitability Pg :206

47610 What key impact will the agent have

in low persistency

Increase more business

Increase in the agents earning

Will improve reputation

Will have impact in his commission

4

477

10

A customer surrenders his policy on Feb 2011. As per Agents code of conduct, an agent can get a new

policy from this customer from Feb which year

2011 2012 2013 2014 1

478

10When should an agent disclose the commission which he will earn from the product which he is going to sell

When the customer asks

him

After the fact finding process

After quantifying the

need

After the product is

recommended to the client

1

479 10What is the disadvantage to the

insurer in case the persistency falls Lower profits Higher profits 1

480

10

A low persistency ratio for the insurance company means that:

The customers are satisfied with

the products

The company is acquiring more business and

new customers

A large numbers of

policies have lapsed /

surrendered resulting in loss

of profit

The company will not declare

bonus3

481

10

If a person already suffering from some disease and had not mentioned

it in the proposal form then as per IRDA code of conduct the agent

should

Notify the insurer of this matter

Refuse to act for the customer

benefit

Ask the proposer’s

doctor to send details to the

insurer

Respect this confidentiality

by not disclosing it to

anyone

1

482

10 If the client does not wish to proceed with the recommendations right at the

moment the agent should

Insist on taking the product right

away

Should ask for the reason for not going with

the recommendation

Should ask for a future date

from the client

Should review once again 3

483

10

During a fact finding process the need alyzed were income replacement and children’s education. But the customer

insists on only a child plan for the time being and asks the agent to give him a child plan. The agent should.

Do the fact finding exercise

again

Insist with the client to take a

term plan

Give a child plan and revisit the client on a

later date

Give the lead to another

agent3

484

10

After doing the need alysis of the client, the agent advised the client to opt for TROP product. But the client

refused. According to ethical business practices what will the agent do ?

Enquire about the refusal from

the client

Suggest an altertive plan

Pass on to the superior

Pass on to the other agent 1


485

10Which of the following act from agent will be specifically useful in case of

annual premium policies compared to monthly mode policies

Explaining charge structure

Issuing reminders

Offering credit facility to client

Offering premium collection

facility to client

2

486

10As per the IRDA circular an insurance

agent

need not disclose the amount of

commission

need to disclose the amount of commission

needs to disclose the amount of

commission on demand

Should not disclose 3

487

10

If the agent recommends the client to termite an endowment plan and take a whole life in order to earn higher

commission its termed as

Switching Doing a fincial planning Churning Fact Finding 3

488

10

A low persistency ratio for the insurance company means that:

The customers are satisfied with

the products

The company is acquiring more business and

new customers

A large numbers of

policies have lapsed /

surrendered resulting in loss

of profit

The company will not declare

bonus1

489

10An agent offered his client that 75% of the first premium will be paid by

him out of commission. This offer of rebate on premium will be treated as

a kind of gift for purchasing insurance products

a rebate on the price amount like

other sales

a breach of IRDA’s code of

conduct

a breach of a provision of the

Insurance Act,1938

4

49010

Persistency can be improved by:

Providing service to the clients 1

49110 Remuneration to Agents includes 1. First Year

Commission2. Renewal

Commission.3. Both of the

above.

4. Salary and Reimbursemen

t.3

492

10

Mr. Gayaram, Advisor who advised the customer to close the old policy and take new one. But new policy

does not have any extra benefits but it will give more commission to Mr. Gayaram. This is called as……

1. Switching 2. Churning 3. Redirecting. 4. Shifting. 2

493

10 An insurance agent is intermediary between….

1. Client and Insurance Company

2. Insurance Company and

IRDA

3. Client and IRDA

4. Insurance and Re-

insurance company.

1

494 10 What is the factor which has influence on persistency? 1. Role of Agent 2. Product

Design.3. Policy Servicing


495 10 For an insurance advisor churning is.............practice 1. good 2. bad 3. compulsory 4. appreciable 2

496

10 Which one of the following factor does not help in the Persistency ?

1. Regular reminders about the premium to the customer

2. Flexibility of Premium

payment to the customer

3. Dispatching Discharge

voucher to the customer

4. Continuous servicing of the

policy 3

497

10

Mr. David an agent had helped Mr. Srinivasan to take an endowment

policy on Feb 200As srinivasan was finding it difficult to pay the premium,

Mr. David had advised him to surrender this policy and to apply for a

lower premium policy. This is called as ?

1. Churning of the policy

2. Surrendering the policy

3. Switching the policy

4. Claiming the policy 1


498

10

Mrs. Hansa an agent, has planned to sell maximum products within a short

span of time by giving maximum rebates to the customer to complete the contest target of the company.

1. It will benefit both the

company and the customer

2. Reputation of the company will be high due to offers to the

customer

3. Agent will be termited

4. Agent will be qualified for the

contest 3

499

10

Mr.Raghav is an expert in fact finding .Mr.Raghav helps his brother in his job by sharing the information of his

clients after the fact finding he does to procure insurance. What will be the

outcome ?

1. Raghav will be promoted to the

next level

2. Raghav will be termited

3. Raghav License will be

cancelled

4. Customer will complain to

Ombudsman3

500

10 The agents duties and responsibilities ends

1. When the clients policy is

issued.

2. When the client’s needs

have been established.

3. When the nominee has

changed.

4. When the maturity/claim

is settle4.4

501

10

When client declines the recommendation by the insurance adviser even after resolving the

concerns, the adviser should

1. Persuade the client to

purchase the policy.

2. Should ask for reference who

might be interested in

fincial planning.

3. Should never approach the client ever

again.

4. Should do nothing. 2

502

10Under what circumstances the surrender of a policy should be recommended by the agent?

1. When a client have been sold

the right solution.

2. When a client is holding a

product having good value for

money.

3. When the policy has been

mis-sold and do not match

his needs.

4. When the client is

enjoying good fincial status.

3

503 10 What key benefit high persistency ratios have on insurance adviser?

1. High renewal income.

2. Less renewal income.

3. Fewer client bases.

4. Unsatisfied clients. 1

504

10

Under which one of the following acts the maximum remuneration that can

be given to insurance agents described?

1. Income Tax Act

2. Indian Contract Act

3. Insurance Act 1938

4. IRDA Act 1999 3

50510 Which one of the following is not a

benefit of persistency?

1. Helps the client in

achieving goals

2. Reduction in costs

3. Increased client

satisfaction

4. Decreased revenues 4

506

10Satish as an insurance advisor while

recommending to his client Ramesh is not suitable policies –

1. Satish should check the Ramesh ‘s

commitment to the needs

2. Satish should outline the reasons for

recommendation for a particular

policy

3. Satish should check

the acceptance or rejection of

the recommendatio

n.

4. Should advised him to surrender all the polices

which are not buy from satish.

4

507

10 Why a building long term relationship with clients is necessary?

1. A satisfied client may be the source of other potential clients

2. Reviewing fincial needs and

plans are necessary with

changes

3. Agent has the option to

recommending highest

commission at any time.

4. Introduction of a new insurance

product or a change in a

client’s Circumstance

3

508

10

As per agents code of conduct,Agent Recommends protection Plan,but the client insist on investment plan for the fincial planning,what an agent should

do!Recommend

both the plans

Propose an investment plan and discuss with

him regard to discomfort of

term planRefuse to act

with client

Report to the senior and seek

his Guidance

2

509 10Insurers observe high persistency

ratio,thenpolicy reserve

increasesReserve

decreasesRemains constant

Surplus decreases 1

510

10

After clearly identifying 2 needs from fact finding, client agrees to go for

one and gives the reason, what should the agent do now

Do a fact finding again

Refuse to proceed

Proceed with agreed need

and document the rejection

Get second opinion

3


511

10

Nikhil was in the process of closing a unit linked plan sale and the customer

put a query which Nikhil does not know. What should Nikhil do?

Decline to act for the client

Direct him to the product booklet

Ask his Supervisor and

clarify

Ask the client to put the query

in writing3

51210 While on sales of an Insurance plan

Mr…. Had to show his license

Due to the category of customer

the customer demanded

Due to the profile of the

customer2

513

11What is the maximum Time in which

The insurer should settle a claim when all documents are submitted

3 days 15 days 30 days 10 days 3 Claims

According to IRDA Regulation 2002 , a claim under a life insurance policy will

have to be paid or be disputed with giving relevant information within 30 days from

the date of receipt of all necessary documents & clarifications

Pg :219

514

11 A missing person is considered to be dead after 5years 8years 12 years 7years 4 Claims

Sec 107 & 108 of indian evidence act 1872 deals with presumption of death ,

Waiting period of 7 years is seen in case of person missing

Pg :221

515

11

The delay in settling claim by any insurance co, as per IRDA norms has to pay....% if the present bank interest

rate is 5.2%

7% 9% 7.20% 8% 3 Claims

As per IRDA Regulations , when there is a delay by the insurer for settling of a

claim , then they need to pay 2% more than the fincial years saving account rate

of interest

Pg :219

516

11A claim was submitted & in how many days company should ask for additiol

documents if required15 days 10days 20 days 30 days 1 Claims

IRDA Guidelines on claim settlement instruct the insurer to complete any

additiol documents /information collection not in a piece meal basis within 15 days

from the time of receiving the claim intimation

Pg :219

517

11

Vivek takes insurance policy and dies after 8 months . If the claim needs to

be excluded basis the exclusion cause what could be the cause

suicide murder Death was due to Accident Body not found 1 Valid Claims

Suicide clause exclude claim settlements if it happens within One year of the

policy commencement Pg :217

518

11

According to IRDA guidelines, how long does an insurance company

have to complete its investigation of a claim

30 days 90 days 120 days 180 days 4

51911 Indisputability clause can be enforced

by the insurance company during the

First five years of policy

First Two years of policy Claim Inception of the

policy 2

520

11

Incase of presumption of death

Not necessary to pay premium

until court decree

Necessary to pay premium until court decree

Claim not admissible 2

521

11

If a valid claim is delayed by the insurer then the interest for the same will have to be paid by the insurance after how many days from the date of

admission of the claim?

10 days 20days 30 days 60 days 3

522

11

Under the IRDA guidelines for Claim settlement, any queries or additiol

documents can asked from the claimant within

5 days from the receipt



20 days from the receipt 3

523

11A claim was paid in a policy and it

was advertised in the newspaper also. This indicates that the policy was.

It was assigned. It was paid up. It was lost. It was surrendered. 3

52411

An indemnity bond was signed in a policy when the claim was paid. This

indicates that the policy was.It was lost. It was paid up. It was lapsed. It was

surrendered. 1


52511 Which of the following falls under

voidable contract?

Misrepresentation

Lack of insurable interest Fraud None of the

above 1

526

11As per claims assessment process if a claim arises within a few days of the start of the policy which factor should the insurer check in the first place?

Age admission Disclosure of material fact

Premiums paid or not 2

527

11

Ajay has bought an endowment insurance plan with a cover of Rs. 10, 00,000 for a term of 15 years. Ajay

died after 4 years. Insurance company will not treat this claim as

________ claim.

Normal Fraudulent Early General 3

528

11

Ranjan took out a 20 years Money Back plan on his own life 5 years ago. Survival benefit was due on 4.5.2011.

Ranjan died on 6.5.2011 without receiving the survival benefit amount. What will be the legitimate procedure

to pay out the claim?

Survival claim will not be paid and only death

claim will be paid to the Nominee

Both the survival claim and the

death claim will be paid to the

Nominee

Survival claim will be paid to the Legal heirs and the death

claim to the Nominee

Bothe claims will be paid to the Legal heirs

3

529

11A life assured died after 40 days from the payment of his monthly premium. If there be any claim, how the claim

will normally be dealt with?

A regret letter will go intimating

that nothing is payable as death

claim

Full sum assured will be paid as death claim

Paid up value, if any, will be paid as death

claim

Full sum assured less deduction of

unpaid premium will be

paid

4

53011 Which of the following falls under

voidable contract?

1. Misrepresentatio

n

2. Lack of insurable interest 3. Fraud 4. None of the

above 1

531

11

After maturity In a Unit Linked Life Insurance Policy, customer does not get received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity

plan

1. He has switched his fund

2. He has opted for Settlement

option

3. He has he has redirected

his past premium.

4. Policy was lapsed on the

time of maturity2

532

11 Incase of presumption of death1. Not necessary to pay premium

until court decree

2. Necessary to pay premium

until court decree

3. Claim not admissible

4. Depends on case to case 2

533

11 What is meant by a claim under insurance policy?

1. A demand to fulfill the

policyholder’s obligations.

2. A demand to fulfill the insurer’s

obligations.

3. Any demand made by the

policyholder on the insurer.


534 11 Who will take the initiation to settle the maturity claim process? 1. Client 2. IRDA 3. Advisor 4. Insurance

company 4

535

11 Which is the right statement regarding claim enquiry?

1. The insurance company makes enquire only on death claims.

2. The insurance company makes

enquire on maturity claims

only.

3. Enquiry will be done on

both Maturity and Death

Claims.

4. Enquiry will be done if

death happens before one year

from policy inception date.

1

536

11

Mr. Chintamani has taken a policy from ABC Company on 2nd March

2010, but unfortutely he died on 18th August 201 His death claim is

considered as..........

1. Normal death claim

2. Early death claim

3. Abnormal death claim

4. Untural death claim 2

537 11 Detailed Investigation will be triggered in case of......

1. Maturity claims

2. All death claims

3. Early death claims

4. Rider benefit claims. 3


53811

In insurance, if a person is not heard for .......years his is presumed to be

dead.1. 5 years 2. 6 years 3. 7 years 4. 8 years 3

539

11 In the process of settling maturity claims....

1. the company will wait until the claimant comes

to office to demand the

claim

2. the process is initiated by the

company well in advance of the maturity date

3. it is the responsibility of the claimant to approach the

company

4. If the claimant does

not come within a month the

entire maturity amount will be

forfeited.

2

540

11

Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He also has an ADB rider worth Rs. 4 lakhs.

Unfortutely Baskar died in a car accident. How much will be the death

claim settlement?

1. Total 7 lakhs will be paid as

death had taken place

2. Total 4 lakhs will be paid as

death had happened due to

car accident

3. Total 11 lakhs will be

paid

4. Total 7 lakhs will be paid without any deduction.

3

541

11 Insurer will not pay the claim unless

1. The policyholder

makes a demand.

2. The nominee makes a demand.

3. The event insured against

happens.

4. The insurer completes the

enquiry.3

542

11

Aman has taken a term plan for 20 years. In the 3rd year he suffered

fincial crisis due to which he was uble to pay premium within grace period

and died after 1 month. The nominee files a claim and is rejected because

1. The policy was not in force.

2. This condition is excluded in

the policy.

3. The claim is fraudulent.

4. The claim is an early claim. 1

543

11 When a policy is lost, insurance company take utmost care while settling maturity claims because

1. The claim may not be genuine.

2. The policy may be pledged.

3. The facts were

misrepresented.

4. There is no nomition. 2

544

11What key event is most likely to make

an insurance contract not a valid contract?

1. The circumstances are legitimate.

2. Representation of facts by the

policyholders is true.

3. The life assured is

major.

4. There is no insurable interest

attached to the policy.

4

545

11

On foreclosure, if Death claim arises before the payment of the surrender

value, the payment would be payable to:

1. Nominee 2. Legal heir of life Assured 3. Debotrs 4. forfeited the

Premium 2

546

11

Gaurav is working in MNC at the age of 32 bought an Endowment Plan. He had nomited his 1 year old daughter

Saanvi, but not able to get the Sigture of her appointee due to uvailability of his spouse .after 5 year. He died in

road accident, now claim money would be payable to:

1. Nominee only 2. Legal heir of the life assured

3. Appointee Only

4. will be Payable to

Saanvi (Nominee) at

the age of 18th

2 Discuss

547

11

Which one of the following report is not considered in case of Pankaj

Bought a plan in 2009 & died in road accident in 2011 :

1. Policy first information

report.

2. Advisor confidential

report

3. Post Mortem Report.

4.Coroners Report 2

548

11

Insurer has deducted Rs 3000 from the death claim of Ram. What could be the reason for deduction when all

the due premiums were paid Paid up option Lien Commutation Loan Facility

4


549

11

Two policy Matures at the same time for an insurance company,what are

the other requirment for maturity with respect to policy.A is absolute assignment and B is conditiol

assignment.pending requirment in relation with B

A loan and interest is

outstanding

A loan amount and oustanding

premium is pending

A outstanding premium is

pendingA sign on

discharge form

3

55011

Maturity benefit is equal to Sum assured plus reversiory bonus minus

? Persistency

bonus

Outstanding premium +

interestOutstandin premiums

2

55111

In a non life policy, the person who is authorised to process the mediclaim

is known as UnderwriterThird party

administrator Actuary2

55211

Maturity benefit is equal to Sum assured plus reversiory bonus minus

? Claim within 1st

anniversaryClaim within 1st calendar year

Claim befor the valuation date

Claim after the valuation date

553

12

An advisor while explaining the policy and to sell he accepts to give a part of

his Agents commission, what is th limits

10% 20%He cannot offer

any commission

He can offer up to 50% 3 Code of

conduct Sec 41 (1) of insurance act 1938 prohibits

all agents to give rebates Pg :231

554 12 Consumer Forum at district level will hear complaints up to 20L 40L 1Cr 10L 1 Grievance cells District Court upto 20 L Pg :238

555 12 How much is the rebate allowed by IRDA to client Nil 5% 10% 35% 1 Insurance act

1938Sec40(1) of Insurance act 1938 prohibits

agents from giving rebates Pg 231

556 12 the controller of insurance in india is IRDA RBI SEBI Insurance ombusdmen 1 IRDA 1999 IRDA 1999 , was passed in parliament

establishing it as a corporate Body Pg :233

557

12A insurer advertises through daily

news paper . What type of marketing is

cross selling direct selling Solicitation of Policy Brand building 3

IRDA Regulations on Advertisement

and Disclosures

IRDA regulations on advertisements include all printed and published

materials from Insurer as well as Agents Pg 237

558 12 Investment by NRI(Non Resident Indian) will be No risk Low risk Medium risk High risk 4 KYC Pg :235

55912

MWP- If the policy is endorsed under MWP - then the beneficiaries are wife

and ?parents ex wife children mother 3 MWPA

Beneficiaries under MWPA can be Wife , Children , Wife & Children , Adopted

Child Pg :236

560

12

If the license of an agent has been disqualified by a desigted authority in 2010 then the person can apply for a

license in which year

2013 2015 2017 2020 2

561

12 When can an insurance company give more than 35% first year

commission?

When the insurance

company is in the first 10 years

of operation

If the agent has worked with the

company for more than 5

years

If the agent has worked with the

company for more than 10

years

If the agent is doing more

than 3 policies in a month.

1

562

12

An agent recommends a term plan in keeping with the ethical standards

since it was suitable to client’s needs. In such a case what is the percentage of commission which he can rebate so

as to beat the competition

Maximum 10% Half of the commission

Cannot rebate at all 2% 3

563 12_____ controls monetary system in

India RBI IRDA SEBI Constitution 1

564 12 In MWP Act Policy, claim is paid to Nominee Assignee Trustee Policy holder 3

56512 Which is the 2nd stage in Money

Laundering?1. Layering 2. Placement 3. Integration 4.

Amalgamation. 1


566

12

According to IRDA regulations the maximum percentage of first year

commission to be paid to an insurance advisor is.............

1. 30 % 2. 35% 3. 40% 4. 45% 2

56712

In the case of agent's death, the commission payable will be paid

to.........1. his legal heirs 2. to his nominee 3. will stop

automatically

4. Paid in lump sum to the survivors.

1

568

12 Issuance of a license to a person has been stipulated in................Act

1. Section 43 of the Insurance

Act 1939


Act 1938


Act 1922


Act 19322

56912 Which official body decides to

increase the interest rates? 1. Central bank

of India2. Reserve bank

of India3. Reserve

bank of country4. Central bank

of country 2

570

12 Which one of the section deals with the licensing of an agent?

1. Section 42 of the insurance act

1938

2. Section 42 of the insurance act

1936

3. License section of

Insurance act 1938

4. License section of insurance

agent act 1938

1

571

12 Which regulations take care of the settlement of claims ?

1. Protection of Policy holder

Interests regulation 2002

2. IRDA claim protection

regulation 2002

3. C.IRDA policy

settlement regulation 2004

4. D. Protection of claim

settlement regulation 2002

1

572

12 Which of the following team represents the members of GBIC ?

1. Representatives

from all insurance companies

2. Representatives

from all government

bodies

3. Representative

s from IRDA

4. Representative

s from Insurance institute of

India

1

573

12Rahul is a licensed insurance agent. As agent he must carry out his role in

accordance with

1. Company’s code of conduct.

2. IRDA Acts code of conduct.

3. IRDA Regulations

code of conduct.

4. Insurance Acts code of

conduct.3

574 12 Under Married Women’s Property Act, 1874 a policyholder is

1. The Life Assured.

2. The beneficiaries. 3. The trustee. 4. The

administrator. 3

57512

Who has the authority in insurance company to issue/cancel the agents

license

1. Insurance Company.

2. Desigted Person.

3. Branch Operations

Team.4. Actuary. 2

57612

Married Woman’s Property Act 1874 provides that a life insurance Policy

that has been taken out by:

1. Married Woman 2. Married Man 3. Married Son 4. Married

Daughter 2

577

12

Premium Income earned by an agent holding a composite license is

600000. What is the max contribution of one organisation 60000 1.5 lac 1.2 lac 3 lac

578

12 License criteria,criml offence in the past.given IRDA license.Why?

he was less than 21 at that time

offence had a punishment of less that 2000

atleast 5 yrs hav passed since the sentence exception 3

579

13Mr.Sunil is doing premium calculation

for his company, as per which authority is his profession related to

Council of Actuaries

Insurance council of India

Insurance institiute of

IndiaIRDA 1 Actuaries

IAI (Institute of actuaries in India ). Actuary is an expert who applies

statistical & mathematical methods to asses risk and calculate premium tables

Pg :249

580

13 basic qualifications of agent sound mind & graduate

sound mind & good income

level

Age and income level

His contacts in the market to

solicit Insurance

1 Agent Licensing

For License , a person should be Major , Of sound mind , graduate , no crimil records ,attended training , passed III

exam

Pg :251

58113 Which Institution was Constituted by

Insurance Act 1938Insurance

Institute of IndiaLife Insurance

Council

Insurance Broker

Association

General Insurance Council

2Insurance Regulation

Bodies

Life Insurance council was constituted under Sec 64 of Insurance ACT 1938. Its

the face of Life Insurance Industry Pg :248


582

13 What is the role of tiol Insurance Academy? To regulate To advise

Government

To undertake training

activities

To Advertise globally on

Indian Insurance

3 Key regulatory Body

I , Pune , was set up by Govt in 1980 with support from LI Council , GI council & 4

psu GI. Main Objective is to design , implement & operate on Insurance

Training

Pg :249

58313

According to IRDA act 1999, central governments involve in insurance

industry over Policy matters complex

technical issuesPromotiol activities

Licensing of Insurance companies

3Power of

Central Govt over IRDA

Power of Govt to supersede IRDA is uble to discharge its Function or duties

Pg :246

58413

Who is a regulator, supervisor and monetary authority of the fincial

system in India IRDA SEBI RBI SBI 3

585 13The insurance act of 1938 created

which of these. IRDA Tariff Advisory Committee

tiol Insurance Academy LIC 2

586

13De- tarrification is a process by which

pricing of Insurance

Rises DecreasesReaches at a level as per

industry trends

Insurance can price their

product on their self past

experiences.

4

587

13 What is the key function of NIA

Provide suggestion for

Premium calculation

To be an active link between

Global market & Indian Life Insurance Industry

Design, implement and

operate an insurance training

Regulate the investment of funds by Life

Insurance company

3

588 13Basing on which criteria the

qualification of Agent is determined? Address of the

agent Domicile status 2

589

13 If IRDA is uble to discharge its functions or duties, Central

Government

Has the power to supersede the

IRDA by issuing notification.

Has the power to supersede the

IRDA by issuing a bill in

parliament

Has the power to supersede the IRDA by issuing draft

Can make changes in IRDA law

1

590

13

Under the prevailing FDI laws for insurance, domestic private

companies are allowed to form joint ventures with foreign partners. What percent of stake can a foreign partner

hold?

20% 26% 49% 51% 2

59113 Rahul is appointed as director of life

insurance company, he cannot be an

Insurance Advisor Nodal officer Chief actuary Underwriter 1

592

13 An agent is not required to obtain the prior approval of the insurer before

placing an advertisement when:

It contains only statements that

mention the agents me, logo

& phone number.

He can design the

advertisement without the concern of

insurer.

Were all his information published to enhance his

business.

Describe the benefits which do not match

the policy provisions

1

59313

The Institute of insurance and risk magement along with insurance

education does what moreRegulation Redressal Research Repository 3

594 13 Pricing element is done by IRDA Insurance Company

Life Insurance Council CII 2

595

13

What does MDRT Stand for?

Million Dollar Round Table

Major Double Rupees Tag

Major Dollar Round Tag

Mean Disposition Residence

Time

1

596 13As per AML regulation, it allows cash

premium not over than Rs.20000 Rs.25000 Rs.5000 Rs.50000 4

597

13Which Act or Regulation provides that the Renewal commission is payable to the legal heirs of the Insurance

agent in case of his death?

IRDA Act,1999IRDA

Regulations, 2000

Insurance Act,1938

Indian Contract Act,1872 3


598 13 Agent offering rebate may be fined Rs. 300 Rs500 Rs 1000 Any of them 2

599

13If an Insurance agent is found guilty of breach of trust, he will be disqualified

to act as an insurance agent. The disqualification stands valid

for lifefor 10 years from

the date of disqualification

for 7 year from the date of judgment

for 5 years since

completion of the sentence

imposed

4

600

13 Central govt has authority of Direction to IRDA on

Policy matter

To present statement of IRDA act in Parliament

May issue notification All of them. 4

601

13

It is the bounden duty of the Insurers to protect the interests of their policyholders from proposal

acceptance to claim payment because of the

Behavioral requirements of

E-Governce

Market competition

Requirements of the Life Insurance Council

Regulations of IRDA 4

602

13 In the context of IRDA’s code of conduct, the term Ethical behavior

can be best described as

a behavior that is based upon the positive

judgment of an individual

a behavior that is based upon the

legal judgment of an individual

a behavior that is based upon

the ritual judgment of an

individual

a behavior that is based upon

the moral judgment of an

individual

4

603 13 IIRM is in areas of education and Research 1

604

13

Who controls and regulate the rates, advantages, terms and conditions that

may be offered by insurers in the respect of general insurance

business.

1. Insurance Regulatory and Development

Authority.

2. Reserve Bank of India.

3. Tariff Advisory

Committee.

4. Insurance Institute of

India.3

605 13 The Insurance Institute of India (III) was formed in..... 1. 1956 2. 1999 3. 1955 4. 1947 3

606

13

Which council among the following focus on creating a positive image of the insurance industry and would also

like to enhance the Consumer’s confidence on the same ?

1. Life insurance council

2. Consumer insurance council

3. tiol Insurance

council

4. General insurance

council 1

607

13

Mr.Varun taken up his agency in July 5th 200 His lost his IRDA license

while travelling. His agency has also expired. What is the solution for

Mr.Varun ?

1. Need to complete 25

hours of practical training and

paying Rs.50 for the issuance of

duplicate license


hours of practical training and

paying Rs.100 for the issuance

of duplicate license


hours of practical

training and paying Rs.100

for the issuance of duplicate license


hours of IRDA training and

paying Rs.50 for the

issuance of duplicate license

1

60813

Which organization was formed with purpose to promote insurance

education and training in India?

1. Institute of Actuaries of

Indi1.

2. tiol Insurance Academy.

3. Chartered Insurance Institute.


India.4 Discuss

609

13 The face of the life Insurance industry in India is ………..?

1. Life Insurance Council

2. Life Insurance Corporation

3. Insurance Regulatory

Development Authority

4.Insurance Institute of

India1

610

13 For Insurance industry which

association to take steps to Develop Education and research in insurance?

1. Life Insurance Council

2. Life Insurance Corporation

3. Insurance institute of

India


India1 Discuss

611

13Which is the body who provides grant to Insurance Regulatory Develompent

Authoruty to carry out activites.RBI LIC Central

Government SEBI 3


612

14Complaint council bodies other than IRDA grievance readdress forum &

COPAOmbudsman Insurance

Institute of IndiaInsurance

Association FERA 1

Governing Body of

Insurance Council

Integrated Grievance magement system (IGMS) also makes the complaints to be

regsitered through E mail – [email protected] or Toll free

number 155255

Pg :271

613

14 What are the ways by which a policy holder can make complaints email Toll free No. Newpaper Email or Toll

free Number 4

Governing Body of

Insurance Council

Integrated Grievance magement system (IGMS) also makes the complaints to be

regsitered through E mail – [email protected] or Toll free

number 155255

Pg :268

61414

what are the ways in which IRDA can be contacted . One is thru toll free

number and other is email Insurance

ombudsmenvisiting regiol

officeThrough Agents 1

Grievance Redress Cell of

IRDA Toll Free Number :155255 & Email Pg:268

615

14what is the maximum level of

complaint that can be considered and taken action by ombudsmen

20 lac 25 lac 30 lac 50 lac 1 Ombudsman

Ombudsman role is to resolve complaints related to claims , disputes with regard to

premium / policy, non issue policy documents , all in a cost effective

manner

Pg :265

616

14What is the period of award passed to

the customer decided by ombudsman?

2months 3 months 5 months 6 months 2 Ombudsman

Ombudsman role is to resolve complaints related to claims , disputes with regard to

premium / policy, non issue policy documents , all in a cost effective

manner

Pg:268

617

14

Raju is a certified license holder under what circumstances he needs to hold his certified license with him

that is issued by irda

under all circumstances

when he sells term insurance

when he represents himself as

another insurer

when he sells pension policies

1 Ethics & Code of Conduct

Under IRDA regulations , an agent should carry is license all the time and on

demand , should show it to the customers Pg :284

618

14

A policy has been rejected by the company under direct intimation to

the customer and copy to the Agent, what is the next action of the Agent

he has to inform the customer

that the co has broken

relationship with the customer

he plans to change the plan

He has to explain the reasons for

rejection to the customer

He takes up with the higher

authorities3 Ethics & Code

of Conduct

The role & responsibility of the agent is important to have a good relation with the

customers Pg :279

619 14Where one can approach in case of

dispute IRDA Consumer Forum 2

620 14The Authority of COPA is limited to

what amount at the district level. 10,00,000. 20,00,000. 50,00,000 1,00,00,000 2

621

14As per Regulation for protection of

Policyholder’s interest 2002 (IRDA), Which insurer will have a grievance

redressal System

Some Specific Insurer

Those Insurer who did not

created Insurance

Ombudsman System

All insurer It is optiol 3

62214

Which regulatory body has created a call center for logging a complaints of

insurance Customers

Life Insurance Council IRDA Insurance

Association

Insurance Institute of

India2

62314

Within how many years a complaint can be made through consumer

protection act.One year Two years Three years Five years 2

624

14

Insurance companies are required to honor the awards passed by the

Insurance Ombudsman within how may days

10 days 15 days 20 days 25 days 2

62514 As per IRDA regulations IGMS should

be mandatory set up by

Only by few selected insurers Only by non life Some life and

non life By all insurers. 4

626

14

For the customer whose claim has been refused by the company, the three places where he/she should

follow up are – Ombudsman, IRDA Customer Grievance Cell and

………………………..

Consumer Forum COPA Sebi Life Insurance

Council 1


627

14

What is the stipulated time frame within which an insurer is supposed to

respond after receiving any communication from its

policyholders?

24 hours 1 day 10 days 30 days 3

62814 The functions of the Insurance

Ombudsman include:

Conciliation and making awards Counseling Repudiation of

claim

Evaluating claim

settlement1

629

14If a case is already before the

consumer forum, then the ombudsman should

Give a recommendation

Give a joint decision with the consumer forum

Dismiss the case Give an award. 3

630

14

Generally insurance companies do not hold the premium in case of a

fraud or misrepresentation. However, due to which of the following

circumstances the insurer can retain the premium of the policyholder

Fraudulent claim Indisputability clause

Redressal procedure

Pending decision from Ombudsman

2

631

14

A policy holder is not satisfied with the services of the insurer and complains

to ombudsman. In how many days from receipt of the complaint the

ombudsman should pass the recommendation.

6 weeks 1 month 2 months 6 months 2

632 14The guidelines for annual assumed

growth rate are given byLife Insurance

Council IRDA Actuaries Underwriter 2

633

14AML Program of every insurer to

include _______________, apart from Procedure, Training and audit.

Inspection by IRDA

Audit by Fince Ministry

Appointment of Principal

Compliance Officer

Inspection by Auditor General 4

634

14

Ravi was expecting a claim amount of Rs. 12, 00,000 from insurer. But it

was rejected. He feels that it is repudiated on wrong reasons. Which consumer forum can he approach?

tiol Commission District Level State Level Mandal Level 2

635

14

For redress of grievances of the policyholders, a number of Authorities

have been formed. Which of the Following authorities has been

empowered to hear the complaints and adjudicate?

Insurance Ombudsman

Consumer Grievance

Redress Forum

Consumer Affairs

departmentIRDA 2 Discuss

636 14 How many ombudsmen offices located in India? 1. 10 2. 12 3. 14 4. 15 2

637

14 What the me of department that is

established by IRDA to deal with customer complaints?

1. Customer Complaint

Department (CCD)

2. Customer Grievance

Department (CGD)

3. Consumer Affairs

Department (CAD)

4. Consumer Protection

Department (CPD)

3

63814

The insurance ombudsman has been appointed to protect the interest

of.......1. policyholders 2. shareholders 3. insurers 4. General

insurers. 1

63914

The charges were not fully disclosed to the customers" is a common

complaint against.....1. IRDA 2. Agents 3. Shareholders 4. Underwriters 2

640

14

If any consumer is dissatisfied with the customer care cell of any

insurance company to whom they can escalate their grievances.

1. Nodal officer 2. Grievance call center

3. Compliance cell

4. Compliance officer 1 Discuss


641

14

Which is the Regulation that insists that all the insurance companies

should provide the information about the insurance ombudsman of that

region while sending the policy documents.

1. Policyholder grievance Regulation

2. Policyholder’s Protection regulation

3. Ombudsman Regulation

4. Compliance Regulatory 2

642

14

A client demands the information on the current status of a policy

indicating accrued bonus. The insurer should provide communication within

1. 10 Days. 2. 15 days. 3. 20 Days. 4. 30 Days. 1

643

14To ensure that the customers

complaints are handled effectively, IRDA has established

1. Integrated Grievance Magement System.

2. Interl Grievance

Redressal Cell of the Insurer.

3. Grievance Redressal

Officer.

4. Consumer Affairs

Department.4 Discuss

64414

Insured can contact to seek the resolution of grievances they have against insurer to IRDA through:

[email protected]

[email protected]

n

[email protected]

[email protected] 4

645

14

Parvesh bought a policy an endowment plan but after one year

insurer. Found he had Aorta Surgery .now which will apply by insurer:

1. Indisputability Clause (Section

45) apply

2.Principal of Indemnity apply 3.Lien Clause 4.Utmost good

faith apply 1 Discuss

646

14

How Many offices of Ombudsmen the Government body has set up to Resolving insured customer’s

grievances.

1.15 2.12 3.14 4.16 2

647

14

If there is no agreement or settlement and the recommendation is also not acceptable to the complaint, in this case the Ombudsman will grant an

award

If it is acceptable to the complaint

if it is acceptable to the insurer

if the complaint decides to

proceed legally

if the insurer decides to

proceed legally1

648

15

If the agent recommends the client to termite an endowment plan and take a whole life in order to earn higher

commission its termed as

Switching Doing a fincial planning Churning 3

649 15Unethical behavior can affect the

reputationInsurance Agent

& company Insurance Agent Insurance company Insured person 1

650

15Underselling life insurance comes under unethical practices because

It might fell short of actual needed and family would

suffer

It will bring a smaller premium

Tax exemption will be lesser 1

651

15 The main reason why an agents act of underselling insurance is treated as a

unethical behavior is

Benefit could fall short of the

fincial liabilities

Excessive Premium

SA ceased too early

Tax concession opportunity

could be lost forever

1

652

15 Ethics can be defined as…

1. Those values we commonly

hold to be “good” and “right”.

2. Behavior that is based upon

the moral judgments of an

individual

3. A study of what makes one’s own

actions right or wrong.


653

15 Which is not unethical behavior in below statements?

1. Over selling of Insurance policies.

2. Under selling of Insurance

policies.

3. Explaining all details of the

policy to customer.

4. Churning. 3


654

15

Mr. Sharma is a newly recruited insurance advisor. To meet his month

target he explains only the good points of newly launched plan to his

customer. Here Mr. Sharma's behavior is............

1. ethical 2. unethical 3. professiol 4. Perfect. 2

65515 The code of conduct has been

prescribed in India by........... 1. IRDA 2. Insurance Council


India

4. Government of India. 1

656

15

Shankar, an adviser, sold a term insurance policy and unit-linked

insurance policy (ULIP) to Amar, the client, who is unmarried and has no

dependent. Consequently, Shankar’s action can be termed as

1. Underselling of insurance

policies.2. Churning.

3. Overselling of insurance

policies.

4. Ethical practice by an

adviser.3

657

15Pankaj being a license insurance

advisor has to follow code of Conduct provided by:

1. Insurance Regulatory

Development Authority

2. Life Insurance Company

3. Reserve Bank of India 4. SEBI. 1

658 15 In case of term plan the premium for CI rider shall not exceed 25% 50% 75% 100% 4

659 15Reduced target of agent will have

what impact on churning more likely less likelyless

transparentmore

transparetn 2

660

9

An agent does 6 lacs of new business premium /Income in a year. He is a

composite agent. What is the maximum Premium/Income he can

earn from 1 insurer?

1
