IC -33 Test papers

Paper 2 (2014-New Syllabus )

1Prepared by Manish Suryawanshi, mob. no. 07276112117

Question 1

______________ is a plan of decreasing term insurance designed to provide a death amount that corresponds to the decreasing amount owned on a mortgage loan.A Loan Redemption Plan B Cash Redemption Plan C Mortgage Redemption Plan D Credit Redemption Plan

Question 2

What benefits are given by the government to promote health insurance?A Cash Benefits B Premium Discontinuance C No claims Bonus D Tax Benefits

Question 3

Which of the below is not a strategy to maximise discretionary income?A Debt restructuring B Loan transfer C Investment restructuring D Insurance purchase 2Prepared by Manish Suryawanshi, mob. no.

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Question 4

Mahesh has bought a life insurance policy with a critical illness rider. He has made absolute assignment of the policy in favour of Karan. Mahesh suffers a heart attack and there is a claim of Rs. 50,000 under the critical illness rider. To whom will the payment be made in this case?A Mahesh B Karan C The payment will be shared equally by Mahesh and Karan D Neither of the two because Mahesh has suffered the heart attack but the policy is assigned in favour of Karan.

Question 5

Typical risks faced by people areA Dying to early B Living to long C Living with disability D All of the above

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Question 6

What does a policy lapse mean?A Policyholder completes premium payment for a policy B Policyholder discontinues premium payment for a policy C Policy attains maturity D Policy is withdrawn from the market

Question 7

An individual with an aggressive risk profile is likely to follow wealth _____________ investment style.A Consolidation B Gifting C Accumulation D Spending

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Question 8

Given below are some events that will trigger survival claims. Identify which of the below statement is incorrect?A Claim paid on maturity of a term insurance policy B An installment payable upon reaching the milestone under a money-back policy C Claim paid for critical illnesses covered under the policy as a rider benefit D Surrender value paid on surrender of an endowment policy by the policyholder

Question 9

Types of pension scheme What are the various types of annuity schemes A Public Pension B Occupational Pension C Personal Pensions D All of the above

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Question 10

Which of the below will be the most appropriate option for a customer to lodge an insurance policy related complaint?A Police B Supreme Court C Insurance Ombudsman D District Court

Question 11

____________ is the feature in which an health insurance policy holder can transfer his policy with gained credit and time bound exclusion from one insurer to another.A Network Provider B Portablity C TPA D Mediclaim

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Question 12

Insurance policy is contract between ____________A Company & Partner B Agency & Company C Insured & Policy holder D Insurer & Policy holder

Question 13

Which of the below is not correct with regards to insurable interest?A Father taking out insurance policy on his son B Spouses taking out insurance on one another C Friends taking out insurance on one another D Employer taking out insurance on employees

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Question 14

Which among the following is not an objective of tax planning?A Maximum tax benefit B Reduced tax burden as a result of prudent investments C Tax evasion D Full advantage of tax breaks

Question 15

In health insurance policy premium will be based onA Occupation B Income C Age D Height

8Prepared by Manish Suryawanshi, mob. no. 07276112117

Question 16

Any person who has completed 60 or more years of age as on the date of commencement or renewal in health insurance policy is called _________________A Family floater B Group Health Insurance C Senior Citizen D Mediclaim

Question 17

A complete insurance planning includes _______________A Life Insurance B Health insurance C Asset Insurance D All of the above

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Question 18

How many life insurance companies are operating in India currently ?A 26 B 23 C 20 D 24

Question 19

Anthony has taken a new car and immediately gets his car insured too. He is paying a premium of Rs.4000 premium for car insurance. Unfortunately his car meets with an accident and most of the parts are broken.So that Anthon receives the insurance when should the insurable interest existA At time of Purchasing New Car B AT time of Paying Premium C At the time of claim D None of the above 10Prepared by Manish Suryawanshi, mob. no.

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Question 20

Which of the following statement is correct in relation to claim?A A claim is the demand of performance by the insurer B A claim arises only when insured event takes place C A claim is valid if insured has paid all the premiums D All of the above

Question 21

Mortgage Redemption Insurance facilitate ____________ A Higher Mortgage Rate B Cheaper Mortgage Rate C Higher Interest Rate D Higher Profits

11Prepared by Manish Suryawanshi, mob. no. 07276112117

Question 22

Which among the following methods is a traditional method that can help determine the insurance needed by an individual?A Human Economic Value B Life Term Proposition C Human Life Value D Future Life Value

Question 23

_______________ life insurance pays off a policyholder's mortgage in the event of the person's death.A Term B Mortgage C Whole D Endowment

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Question 24

When is the best time to start financial planning?A Post retirement B As soon as one gets his first salary C After marriage D Only after one gets rich

Question 25

During which stage of life will an individual appreciate past savings the most?A Post retirement B Earner C Learner D Just married

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Question 26

Keyman insurance indemnify ______________ incurred but compensates with fixed monetary sum as specified on the insurance policyA Actual Losses B Actual Expenses C Early Premiums D Fixed Monetary sum is specify in the policy

Question 27

What are retained earningsA Premium B Surplus C Bonus D Assets

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Question 28

If an agent wants to earn more commissionA He will meet fixed number of existing customers B He will have to meet more number of prospects C Do nothing as he getting renewal commission D Persuade to surrender exiting policy and buy new one - to existing customer

Question 29

What is the procedure in which and indvidual can get the complicated surgical procedures without getting admitted?A In patient B Out patient C Day care D Normal Admission

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Question 30

Hurt not other with that which pains yourself is golden rule of which religionA Jainsim B Buddhisim C Islam D Christianity

Question 31

Mr X has lost his policy document, company will issue him new policy document with?A Minor change in policy terms and condition B Major change in policy terms and condition C change in policy terms and condition D No change in policy terms and condition

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Question 32

Which of the below insurance proposal is not likely to qualify under non-medical underwriting? A Savita, aged 26 years, working in an IT company as a software engineer B Mahesh, aged 50 years, working in a coal mine C Satish, aged 28 years, working in a bank and has applied for an insurance cover of Rs. 1 crore D Pravin, aged 30 years, working in a departmental store and has applied for an endowment insurance plan for a tenure of 10 years

Question 33

Deliberate concealment of facts or misrepresentation of facts falls under which category ___________ A Fraud B Consideration C Capacity of the party D Free Consent 17Prepared by Manish Suryawanshi, mob. no.

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Question 34

Mr Amit is nearing retirement, he has a lumpsum ammount to invest, he requires regular cash flow to help cover basic living expenses, Which type of annuity plan Amit should purchaseA Immediate Annuity B Deferred Annuity C Money back annuity D Assured Annuity

Question 35

_______________ includes preparing of budget, analysing of expenses and income flow and predicting the future monthly income & expensesA Estate Planning B Investment Planning C Retirement Planning D Cash Planning 18Prepared by Manish Suryawanshi, mob. no.

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Question 36

Which of the following statement is correctA Higher the mortality rate in the mortality table; higher the premiums would be B Higher the interest rate assumed, lower the premium C Both of the above D Premium would remain unaffected

Question 37

The Cash value component in traditional products isA Pre-planned B Weil defined C Not well defined D Not pre-planned

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Question 38

As per IRDA norms, an insurance company can provide which of the below nontraditional savings life insurance products are permitted in India? Choice I: Unit Linked Insurance Plans Choice II: Variable Insurance PlansA I only B II only C I and II both D Neither I nor II

Question 39

Interest paid by the insurer for delay in claim settlement would beA 0.02 B 2% above the bank rate C No Interest payable D 0.06

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Question 40

For seeking license to act as a composite agent one has to complete from an IRDA approved institution atleastA 100 hrs practical training B 75 hrs practical training C 60 hrs practical training D 65 hrs practical training

Question 41

In the keyman insurance the premium paid by the company is treated as ______________ A Profit of the business B Business Expense C Loan of the company D Sum Assured of the business

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Question 42

Rating factors in underwriting does not depend onA Financial situation B Family History C No. of members in the family D Personal history of health and habits

Question 43

What is the relation between investment horizon and returns?A Both are not related at all B Greater the investment horizon the larger the returns C Greater the investment horizon the smaller the returns D Greater the investment horizon more tax on the returns

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Question 44

Active listening involvesA Paying attention B Confidence C Trust D Smiling face

Question 45

Which of the following condition will affect a person's insurability negatively?A Daily jogs B Banned substance abuse C Lazy nature D Procrastination

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Question 46

Sheena is suffering from acute diabetes. She has applied for an insurance plan. In this case the underwriter is most likely to use ______________ for underwriting. Choose the most appropriate option.A Judgment method B Numerical method C Any of the above method since an illness like diabetes does not play a major role in the underwriting process D Neither of the above method as diabetes Gases are rejected outright

Question 47

Employer may take out a key persons insurance policy on the ____________ and ______________ of any employeeA Life of all employee B Employer cannot insure a keyman C Only health of the employees D Life or Health of Any employees

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Question 48

In customer relationship the first impression is created:A By being confident B By being on time C By showing interest D By being on time: showing interest and being confident

Question 49

MR. Shetty wants to purchase a new house. This is which category of goal?A Short Term Gaol B Log term Goal C Medium Term Goal D Option 2& 3

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Question 50

The awards by the Ombudsman are governed by the following rulesA Award should not be more than RS 20 lakhs B Award should be made within a period of 3 months from the date of receipt of the complaint C Insurer shall comply with the award and send a written intimation to the ombudsman within 1.5 days of the receipt of acceptance D All of the above

26Prepared by Manish Suryawanshi, mob. no. 07276112117