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All the questions in the quiz along with their answers are shown below. Your answers are bolded.
The correct answers have a green background while the incorrect ones have a red background.
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 manager underwriter
A
Works on statistical data to arrive on mortality , premium table etc
2 The Non Government organizations(NGO) helps the insurance industry immensely in
Promotional activities Drafting new regulations Linking buyers and sellers Linking third party administrators
C
Question was not answered
NGO spread Awareness as well as In rural on deeper Penetration through Micro Insurance3 Investment by foreign direct investors in to Insurance co's is restricted to
12% 25% 40% 26%
D
Question was not answered
On recommendation of Mahlotra Committee , Under Joint venture , the foreign player can not have
more than 26% stake
4 Which market does the Micro Insurance Concentrate on ?
People with large families People with Low Income Government Employees people living in Metro cities
B
Question was not answered
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
5 What facility do the insurer use to cover Risk beyond their Limits ?
Re Insurance Banca assurance NGO RBI
AQuestion was not answered
Reinsurance company is the Insurer for the Insurance Company
6 What is the max level under which micro insurance can be done
5000 25000 50000 1 lac
C
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Question was not answered
Micro Insurance guidelines was issued in 2005 by IRDA . Minimum SA is Rs 5000 & Max is Rs 50,000
7 Who is the customer of a Re insurer
High Networth Individual Insurance Companies Licenced Insurance Agents Non Government Organisation
B
Question was not answered
Reinsurance company is the Insurer for the Insurance Company
8 Insurance company transfers the insurance which cannot bear by them to
Bancassurance Reinsurance TPAs Actuaries
B
Question was not answered
A re insurance company is the Insurer for Insurance company9 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
C
Question was not answered
Agent can receive maximum up to 35% Commission in first year . Maximum commission in ten years
horizon cannot be more than 40.%.
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
B
Question was not answered
different products have different commission . Maximum Commission payable in First Year cannot
exceed 35%
11 Customer asks the agent to disclose the commission . The agent should
disclose on demand Not disclose Should call up the Insurer Should avoid the topic
A
Question was not answered
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
12 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
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From the fact details From signed copy of benefit illustration From ticked column of proposal form
C
Question was not answered
As per IRDA regulations , agents are supposed to disclose their COMMISSION when asked by the
customer . However Rebates are prohibited
13 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
C
Question was not answered
Repeatedly encouraging clients to switch policies / Investments from one another is called churning
14 What over riding criteria an insurance agent consider while proposing a solution
risk suitability Flexibility Cost
B
Question was not answered
Agent is an intermediary between Insurer and the Client
15 Sales Target is reduced . Churning will
Increase Decrease Will not affect Partially
B
Question was not answered
Repeatedly encouraging customers to switch policies or investment from one to another is called
Churning
16 Higher persistency to the insurer ensures what ?
More productivity Higher attrition Higher Profits Higher S.A
C
Question was not answered
Higher Persistency helps Insurer to get Higher revenue thereby increasing profitability
17 Persitency =has increased from 82 % in previous year to 86 % this year . That means
more lapsation
more attrition less lapsation No profits
C
Question was not answered
Higher Persistency helps Insurer to get Higher revenue thereby increasing profitability
18 What is the maximum Time in which The insurer should settle a claim when all
documents are submitted
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3 days 15 days 30 days 10 days
C
Question was not answered
According to IRDA Regulation 2002 , a claim under a life insurance policy will have to be paid or bedisputed with giving relevant information within 30 days from the date of receipt of all necessary
documents & clarifications
19 A missing person is considered to be dead after
5years 8years 12 years 7years
D
Question was not answered
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
20 The delay in settling claim by any insurance co, as per IRDA norms has to pay....% if thepresent bank interest rate is 5.2%
6% 9% 7% 8%
C
Question was not answered
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 financial years saving account rate of interest
21 A claim was submitted & in how many days company should ask for additional
documents if required
15 days 10days 20 days 30 days
A
Question was not answered
IRDA Guidelines on claim settlement instruct the insurer to complete any additional documents
/information collection not in a piece meal basis within 15 days from the time of receiving the claim
intimation
22 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
A
Question was not answered
Suicide clause exclude claim settlements if it happens within One year of the policy commencement
23 An advisor while explaining the policy and to sell he accepts to give a part of his Agents
commission, what is th limits
10%
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20% He cannot offer any commission He can offer up to 50%
C
Question was not answered
Sec 41 (1) of insurance act 1938 prohibits all agents to give rebates
24 Consumer Forum at district level will hear complaints up to
20L 40L 1Cr 10L
A
Question was not answered
District Court upto 20 L
25 How much is the rebate allowed by IRDA to client
Nil 5% 10% 35%
A
Question was not answered
Sec40(1) of Insurance act 1938 prohibits agents from giving rebates
26 The controller of insurance in india is
IRDA RBI SEBI Insurance ombudsmen
A
Question was not answered
IRDA 1999 , was passed in parliament establishing it as a corporate Body
27 A insurer advertises through daily news paper . What type of marketing is
cross selling direct selling Solicitation of Policy Brand building
C
Question was not answered
IRDA regulations on advertisements include all printed and published materials from Insurer as well
as Agents
28 Investment by NRI(Non Resident Indian) will be
No risk
Low risk Medium risk High risk
D
Question was not answered
29 MWP- If the policy is endorsed under MWP - then the beneficiaries are wife and ?
parents ex wife children
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motherC
Question was not answered
Beneficiaries under MWPA can be Wife , Children , Wife & Children , Adopted Child
30 Mr.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 India IRDA
A
Question was not answered
IAI (Institute of actuaries in India ). Actuary is an expert who applies statistical & mathematical
methods to asses risk and calculate premium tables
31 Basic qualifications of agent
sound mind & graduate sound mind & good income level Age and income level His contacts in the market to solicit Insurance
A
Question was not answered
For License , a person should be Major , Of sound mind , graduate , no criminal records ,attended
training , passed III exam
32 Which Institution was Constituted by Insurance Act 1938
Insurance Institute of India Life Insurance Council Insurance Broker Association General Insurance Council
B
Question was not answered
Life Insurance council was constituted under Sec 64 of Insurance ACT 1938. Its the face of Life
Insurance Industry
33 What is the role of National Insurance Academy?
To regulate To advise Government To undertake training activities To Advertise globally on Indian Insurance
C
Question was not answered
NAI , 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
34 According to IRDA act 1999, central governments involve in insurance industry over
Policy matters complex technical issues Promotional activities Licensing of Insurance companies
C
Question was not answered
Power of Govt to supersede IRDA is unable to discharge its Function or duties
35 Complaint council bodies other than IRDA grievance readdress forum & COPA
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Ombudsman Insurance Institute of India Insurance Association FERA
A
Question was not answered
Integrated Grievance management system (IGMS) also makes the complaints to be regsiteredthrough E mail [email protected] or Toll free number 155255
36 What are the ways by which a policy holder can make complaints
email Toll free No. Newpaper Email or Toll free Number
D
Question was not answered
Integrated Grievance management system (IGMS) also makes the complaints to be regsitered
through E mail [email protected] or Toll free number 155255
37 What are the ways in which IRDA can be contacted . One is thru toll free number and
other is email Insurance ombudsmen visiting regional office Through Agents
A
Question was not answered
Toll Free Number :155255 & Email
38 A policy holder submits cancellation of his term insurance policy , the insurer accepts the
form and fails to give the benefit and the policy holder writes to IRDA post which the
settlement should be within
10 days 15 days 20 days 30 days
A
Question was not answered
Complaints related to cancellation of Policy & premium paid in excess for additional cover , Response
TAT has to be within 10 Days from the date of complaint
39 What is the maximum level of complaint that can be considered and taken action by
ombudsmen
20 lac 25 lac 30 lac
50 lacA
Question was not answered
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
40 What is the period of award passed to the customer decided by ombudsman?
2months 3 months 5 months
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6 monthsB
Question was not answered
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
41 An Award is passed by Ombudsman .In how many days it should be honored by
Insurance Co
15 days 30 days 60 days 90 days
D
Question was not answered
The award is binding on the insurer if acceptable by the Claimant , Ombudsman will have to give the
award within 3 months from the receipt of the complain
42 Karthik written to his insurer about non settlement of a maturity calim,as per
regulations,the insurer has to reply to this within how many working days
3 5 7 10
D
Question was not answered
Under Protection of policyholders Regulation of IRDA , the insurer has to respond back within 10
days for any written communication by thepolicyholder
43 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 policiesA
Question was not answered
Under IRDA regulations , an agent should carry is license all the time and on demand , should show
it to the customers
44 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 authorities
C
Question was not answeredThe role & responsibility of the agent is important to have a good relation with the customers
45 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 occupational hazard
A
Question was not answered
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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
46 The type of risk that can be insured against is
Speculative Risk Pure Risk Pure & Speculative risk Non Financial Risk
B
Question was not answered
The types of risk that could be insured against are , financial risk , pure Risk & Particular risk
47 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 financial loss incase of death of Ramesh
D
Question was not answered
Creditor has Insurable Interest on the Life of Debtor to the extend of the MONEY lent to the debtor
48 What is the min age to enter into the contract of insurance
16 18 20 21
B
Question was not answered
Person entering contract should be competent enough . A person is competent when he is a Major (
above 18 years ) , sound mind ,not disqualified
49 In 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
A
Question was not answered
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
50 Types of assignment
Absolute Term assignment Conditional Absolute & Conditional
DQuestion was not answered
1. With this type of deposit the bank pays the principal and the total interest at the end of
the term.
Traditional deposits
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Recurring deposits
Cumulative deposits
Term Deposits
C
2. The Premium on all riders put together should not exceed
10% of the premium on the base policy
20% of the premium on the base policy
30% of the premium on the base policy
40% of the premium on the base policy
C
3. How riders will help the customer in life insurance?
allows policyholders to customize their insurance cover with additional benefits
rider is like a clause
Operative clause.
Rider is like Preamble.
A
4. 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 additional 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 hospitalizationB
5. A lump sum withdrawal allowed as commutation in pension plans is
1/3rd of the accumulation fund
1/4th of the accumulation fund
1/2nd of the accumulation fund
Full withdrawal is allowed
A
6. 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?
paid up to 75 Yrs
annuity will be continued for next 5 Years
till he die
not remembered
C
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7. In 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.
A
8. What is the main objective of taking the life insurance policy?
Tax benefit
Savings
Investment
Protection
D9. If person consumes alcohol- what is the type of hazard?
Moral
Physical
Occupational
Professional
B
10. Group Insurance can be taken in following relationship
employee- employer
husband-wife
family members
society members
A
11. Where one can approach in case of dispute?
IRDA
Consumer Forum
B
12. Life insurance is the most important for which age group
Young
Pre- retirement
Retirement
children
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A
13. Where annually increasing flexible premiums operate under a life insurance policy,
what rate of increase will generally apply?
2. 5%
3. 0%
5. 0%
7. 5%
C
14. 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 lacs
3 lacs
2 lacs
1. 50 lacs
B
15. 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
20 days of receiving the proposal
25 days of receiving the proposal
30 days of receiving the proposal
A
16. Family floater health Insurance plan covers
All members of a Family
Husband and Wife only
Parents only
Children Only
A
17. 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
D
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18. How 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
C
19. Who is a regulator, supervisor and monetary authority of the financial system in India?
IRDA
SEBI
RBI
SBI
C20. 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
B
21. To ensure that the premiums are paid out of a legitimate source of funds cash is
accepted
Up to 50000
Up to 99990
Up to 100000
Without any limit
A
22. If there is no claim in a year than what will be the benefit to the customer as NO CLAIM
BONUS
Discount in next year premium
Increase in Sum Assured next year
Loans facility
No benefit
A
23. An individual is said to be competent to enter into a contract if they are
18 year old
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21 year old
23 year old
25 year old
A
24. Maximum time for investigation in disputed claim?
1 month
2 months
3 months
6 months
D
25. The Ombudsmans powers are restricted to insurance contracts of value not exceeding?
50 lakhs
30 lakhs
25 lakhs
20 lakhs
D
26. In which section of Policy document, Information about the location of the insurance
Ombudsman had written?
Operative clause
Attestation
Information statement
Endorsements
C
27. In Cumulative bank deposit the interest that in normally compounded on what basis.
Monthly
Quarterly
Half Yearly
Annually
B
28. The premium for accidental death benefit rider must not exceed
15% of base policy premium
25% of base policy premium
30% of base policy premium
40% of base policy premium
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C
29. If the annual premium for a plan is 32000 and a frequency loading of 4% is added in a
quarterly premium what is the amount that needs to be paid.
8000
8320
9456
9240
B
30. What amount of insurable interest does an individual have in his own life?
20,000
50,000
Up to the sum assured taken in the plan
UnlimitedD
31. Ombudsman passes an award within which time
1 month
2 months
3 months
6 months
C
32. If the license of an agent has been disqualified by a designated authority in 2010 then
the person can apply for a license in which year.
2013
2015
2017
2020
B
33. 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
B
34. If the agent recommends the client to terminate an endowment plan and take a whole
life in order to earn higher commission its termed as
Switching
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Doing a financial planning
Churning
C
35. Mr. Denny is married and has 2 children and his parents are alive. He has taken a
family floater plan. Under the plan who all will be covered.
Denny
Denny and his wife
Denny, his wife and children
Denny, his wife, his children and his parents
D
36. Amit 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 bonus
A
37. If bonus is given under a plan the additional premium added is known as
Loading
Investment
Frequency
A38. Nomination can be in favor of how many people?
One person
Two persons
Three persons
It can be any number
D
39. Suresh is suffering from Asthma and the policy in been done on joint life basis and the
need for nomination under the plan is less as
Joint life policy
Has physical ailment
A
40. What key impact will the agent have in low persistency
Increase more business
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Increase in the agents earning
Will improve reputation
Will have impact in his commission.
D
41. Within how many days will the underwriter needs to inform the policyholder regardingthe status of the policy.
10 days
15 days
30 days
45 days
B
42. Certificate from the village panchayat
Will be considered as standard age proof
Will be considered as non standard age proof
Will not be accepted
B
43. What is the maximum sum assured under a micro insurance
10000
25000
50000
100000C
44. 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
A
45. If Naresh wishes to take the tax benefit of the full premium paid which is 60000, what
amount of sum assured should he avail in a ULIP plan.
2 lacs
3 lacs
5 lacs
6 lacs
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B
46. 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.
A
47. The insurance act of 1938 created which of these.
IRDA
Tariff Advisory Committee
National Insurance Academy
LICB
48. Ashu is an illiterate person and his proposal form was filled by Nishu, then what is the
additional requirement to be taken along with the documents.
The policy needs to be advertised in the newspaper.
Nishu has to sign an indemnity bond.
Thumb impression of Ashu has to be taken.
Ashu needs to be medically examined.
C
49. Harshs policy matured, however he was paid only 25% of the sum insured in spite of
all his premiums been paid on time. This indicates that his policy is a
Term plan.
Endowment plan.
Money back plan.
Wholelife plan.
C
50. The 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.
B
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. In case of a term plan the maximum premium of the accidental rider can be.
100% of basic premium.
50% of basic premium.
30% of basic premium.
35% of basic premium.
C
2. With reference to the principle of indemnity a life insurance policy is a.
Insurance contract.
Indemnity contract.
Value contract.
Major life contract.
C
3. In the personal statement, Ramesh declares that he consumes alcohol twice every week.This is a
Moral hazard.
Moral peril.
Physical hazard.
Physical peril.
C
4. Micro insurance is made specifically for people from.
High income.
Middle class.
Low income.
Affluent class.
C
5. The reduction in the benefit illustration shows what.
Charges.
Mortality.
Interest.
Inflation.
A
6. If Insurable interest does not exists at the time of inception of the life insurance policy
then, life insurance contract is
Voidable
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Invalid
Valid
Null & voidable
B
7. If a contract is signed by a 15 years old boy, this contract will be
Null and void
Invalid
Voidable
Valid
B
8. If a life insurance policy is issued with a lien, it will be mention in
Proviso
Schedule
Terms & conditions
Endorsement
B
9. Available Loan amount under a life Insurance policy is generally based on
Total paid premium
Sum Assured
Surrender value
Paid up value
C
10. De- tarrification is a process by which pricing of Insurance
Rises
Decreases
Reaches at a level as per industry trends
Insurance can price their product on their self past experiences.
D
11. As per Regulation for protection of Policyholders 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 optional
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C
12. Which body has created a call center for logging a complaint
Life Insurance Council
IRDA
Insurance Association
Insurance Institute of India
B
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
C14. 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 he has redirected his past premium.
Policy was lapsed on the time of maturity
B
15. Gautam wants to purchase a Kisan Vikas Patra. What is the most suitable place to
purchase it
Bank
Insurance Company
Post Office
Share Market
C
16. Anand 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
B
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17. During Fact finding, rating is mentioned 3. This Indicates
Risk apatite of client
His future aspiration
Commitment to need
Willingness to pay
A
18. Raunak wants to purchase a cheapest plan which can provide financial security to his
dependent. Which plan should be offered
Term Plan
Term Plan with return of premium
Pure Endowment plan
Unit Linked Plan
A19. For tax Saving Someone wants to fixed deposit in bank. What duration is required for it?
3 years
5 years
7 years
2 years
B
20. Incase of presumption of death
Not necessary to pay premium until court decree
Necessary to pay premium until court decree
Claim not admissible
B
21. If insured gets the two advance payment in the 5yrs and in the maturity he gets rest of
sum assured. What type of policy it is
Money back policy
Convertible plan
Term plan
Endowment policy
A
22. Which is correct in relation to Insurance Broker?
Insurance broker is represents insurance buyer and remunerated by the insurance company
Insurance broker is represents insurance buyer and remunerated by the Client
A
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23. Shailesh 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.
Shaileshs income is more than Ankits income
A24. What will be lien amount in 3rd year as compared to the 4th year of lien.
It is higher
Decrease
Slightly higher
Slightly lower
B
25. Within how many years a complaint can be made through consumer protection act.
One year
Two years
Three years
Five years
B
26. In which plan weekly premium payments are accepted.
Health Insurance
Group Insurance
Micro InsuranceC
27. 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 experts suggestion
Equal to base cover
B
28. Basing on which criteria the qualification of Agent is determined?
Address of the agent
Domicile status
B
29. Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers
illness before maturity? (wrong)
A. Nil
10%
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20%
30%
A
30. 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
A
31. If we hold 100 units in gold ETF, It means that how much grams we have in physical
A. 5 or 10 grams
B. 10 or 15 grams
C. 15 or 25 grams
D. 50 or 100 grams
D
32. In case of life insurance, the insurable interest should exist
A. At the time of taking the policy
B. At the time of claim
C. At the time policy matures
D. At the time of taking the policy & claimA
33. Pooling of insurance applies to
A. all types insurance
B. All types of insurance except Motor insurance
C. Only life insurance
D. Only Non-life insurance
A
34. Insurance companies are required to honor the awards passed by the Insurance
Ombudsman within how many days
10 days
15 days
20 days
25 days
B
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35. If IRDA is unable 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
A
36. An 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
D37. 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
C
38. Health insurance policy holder takes treatment in a hospital which doesnt 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
A
39. During financial 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.
A. Childs education
B. Marriage
C. Emergency funds
D. Income protection
D
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40. National insurance academy has the following main functions
A. Calculating premium
B. Interact with the government
C. Training
D. Mortality assumptions
C
41. Health insurance rider and critical illness rider in classified under
A. Life and non life respectively
B. Both life insurance
C. Both non life insurance
D. Nonlife and life respectively.
A
42. Pure risk is classified under
A. Economic risk
B. Speculative risk
C. Financial risk
D. Insurable risk
D
43. 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?
A. 10 days
B. 20days
C. 30 days
D. 60 days
C
44. As per IRDA regulations IGMS should be mandatory set up by
A. Only by few selected insurers
B. Only by non life
C. Some life and non life
D. By all insurers.
D
45. 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?
A. Provisio
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B. Endorsements
C. Operative clause
D. Terms and Conditions
D
46. When can an insurance company give more than 35% first year commission?
A. When the insurance company is in the first 10 years of operation
B. If the agent has worked with the company for more than 5 years
C. If the agent has worked with the company for more than 10 years
D. If the agent is doing more than 3 policies in a month.
A
47. When should an agent disclose the commission which he will earn from the product
which he is going to sell
A. When the customer asks him
B. After the fact finding process
C. After quantifying the need
D. After the product is recommended to the client
A
48. In a pension plan illustration what are the parts which shows the benefit for an
annuitant.
A. Insurance coverage
B. Annuity part
C. Guaranteed and non guaranteed part
D. Vesting age
C
49. 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?
A. 213333 & 273333
B. 213333 & 229333
C. 229333 & 273333
D. 229333 & 293333
A
50. The consequences of these risks which will affect specific individuals or local
communities in nature is called as
A. Pure risk
B. Financial risK
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C. Particular risk
D. Physical hazard
C
1. What is the disadvantage to the insurer in case the persistency falls
Lower profits
Higher profitsA
2. 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
A3. If a policy with premium of Rs 5000 has matured, how much will be deducted when the
maturity claim arises
Nil
1%
5%
10%
A
4. When a person is investing in Debt Mutual Fund, what is the primary objective
Good Returns
Regular Income
Safety
Liquidity
D
5. If the employer has insurable interest in the life of an employee, what kind of policy is
this?
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Surety insurance
Keyman Insurance
Partnership Insurance
Debtor Insurance
B
6. In the sales illustration, the reduction of the actual benefit amount is mainly due to
deduction of
Commission
Charges
Non guaranteed benefits
Reversionary Bonus
B
7. The concept of indemnity is based on the key principle that policyholders should beprevented from
Insuring existing losses.
Making false insurance claims.
Paying excessively for insurance cover.
Profiting from insurance.
D
8. The client of reinsurer are
Insurance companies
Banks
Asset Management Companies
A
9. 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
C
10. For assessing the risk of a group health insurance policy, which of the following
information is the most critical
Group lifestyle
Employees
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Age of the group
Medical history of group
C
11. According 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 client
A
12. A low persistency ratio for the insurance company means that:
A. The customers are satisfied with the products
B. The company is acquiring more business and new customers
C. A large numbers of policies have lapsed / surrendered resulting in loss of profit
D. The company will not declare bonus
C
13. For annuity plans, before receiving regular/periodic annuity payments, the individual
can make a lump sum withdrawal. This is known as commutation. Up to what proportion of
the accumulated fund can be withdrawn?
A. The entire fund can be withdrawn
B. Only half of the fund can be withdrawn
C. Only one third of the fund can be withdrawn
D. Only one fourth of the fund can be withdrawn
C
14. What is the stipulated time frame within which an insurer is supposed to respond after
receiving any communication from its policyholders?
A. 24 hours
B. 1 day
C. 10 days
D. 30 days
C
15. For an insurance agent, a low persistency ratio means :
A. Loss of renewal commission
B. High client satisfaction
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C. Higher reputation
D. More earning of First Year Commission
A
16. The proposer can withdraw from the contract, if they disagree with the terms and
conditions of the Policy, within a free look-in period of
A. 15 days from the date of receipt of the policy document
B. 20 days from the date of receipt of the policy document
C. 25 days from the date of receipt of the policy document
D. 30 days from the date of receipt of the policy document
A
17. In the case of life insurance, insurable interest should exist
A. At the inception of the policy
B. At the time of a claim
C. At the time of every renewal premium payment
D. All the above occasion
A
18. In which of the following plan remaining part of the Sum Assured is paid on maturity?
Endowment Plan
Convertible Plan
Money Back plan
Term Plan
C
19. 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
B
20. Payment/Investments in Kishan Vikash Patra under post office schemes is done
Regularly with no fixed term
Lump Sum with no fixed term
Lump Sum for fixed period of time
Regularly for fixed period of time
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C
21. 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
C
22. Under the IRDA guidelines for Claim settlement, any queries or additional documents
can asked from the claimant within
5 days from the receipt
10 days from the receipt
15 days from the receipt
20 days from the receipt
C
23. Law of Large number helps the insures to
Calculate the premium
Increase the profitability
Ascertain the death ratio
Declare the bonus
C
24. A person with a criminal background due to Financial fraud would come under which
hazard
Physical
Moral
Occupation
B
25. Whose signature is required on attestation of the policy?
Agent
Policy holder
Authorized officials of insurer
Proposer
C
26. What is the ceiling of tax exemption under 80 c.
1 lakh
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1. 5 lakhs
2 lakhs
3 lakhs
A
27. If customer has applied for a policy with 1 Lac SA then what is maximum Premium onwhich he can save Taxes
Maximum 20000
Maximum 100000
Maximum 120000
Maximum 150000
A
28. If Ombudsman makes a recommendation and is accepted by Complainant then it would
be
Binding on the insurer
Binding on Court Of Law
Binding on IRDA
Binding of Insured
A
29. 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 whichcould 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
C
30. In India almost each and every sector is having regulatory agencies for following up the
companies and institution operating in the sector. Likely, regulatory agency for insurance
sector is known as -
SEBI
ICAR
IRDA
RBI
B
31. Govt. of India has full control on IRDA. Ultimately Govt. of India which of the following
matters/issues of IRDA on an ongoing basis
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Formation of IRDA
Staffing pattern of IRDA
Policy matters
It is an autonomous body. Govt of India has no control over IRDA
C
32. Mr. Rahul is having a life insurance policy. After 8 months he was died. But when the
claim is returned by the Insurance Company as the claim cannot be settled because of a
specific clause mentioned in the policy document. Which is the most likely clause?
Special clause
Suicide Clause
Lien clause
Paid up clause
A33. Mr. Ramesh has taken a life police as recommended by an insurance agent. Now the
role of Agents Principal lies
The insured
Insurance Company only
Ramesh only, none else
IRDA, since entire insurance is under control of IRDA
B
34. From Insurance Companys point of view, most important aspect in a Term Insurance
Policy lies with
Good ethics
Fact findings
The proposal
Underwriting process
C
35. Mr. Purusottam has joined as Director of Insurance Company. Now as per the IRDA act
he is not allowed to play the role of which of the following:
Agent
Comparison website
Under writer
None of these
A
36. Mr. Amar has taken a Term Insurance Policy from Insurance Company. A term insurance
is basically what kind of contract?
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Indemnity Contract
Insurance Contract
B
37. There are two most widely used mode of lodging complaints against insurance company
by the insured. One is toll free phone call. Name which of following will be 2nd most widelyused method among the following alternatives.
Insurance ombudsman
Direct visit to IRDA office
Comparison website
Vimal has obtained most of his policies from railway porters
D
38. XYZ Insurance Company has started promoting their insurance products mostly through
television and news paper advertisements. Hence, the said company is operating through
Direct channel
Indirect channel
Using both the channels
Agent channel
C
39. ABC Insurance Company has appointed many agents. They are helping in underwriting
process to the underwriters. However, Mr. Vimal, an agent has done adverse selections.
From insurance companys point of view, which among the following is most likely
considered to be the adverse selection?
Obtaining a policy from a very poor person
Obtaining policy from a rich man
Vimal has obtained most of his policies from railway porters
In certain cases material facts are changed to obtain higher claims
D
40. Vikash a 30 years unmarried young man has invested a pretty good amount in shares.
Recently he is shifting his investments Gold ETF. Now state which of the following is the
most likely motive of Mr. Vikash by doing so?
He is interested in savings only
He prefers both regular savings as well as capital appreciation
He prefers capital growth only
Recently he is going to marry that is why he is more interest in Gold to keep the gold of his would
be wife in Gold ETF
B
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41. It has been observed that, most of the policies issued by M/S XYZ Insurance Company
have been forfeited by the insured during the free look period. What may be the most likely
reason so far ethics is concerned?
The company has no ethics
The company has only internal ethics but not external
The company has external ethics but not internal
The company has both the ethics
A
42. An insurance company has issued a policy document to one of its policy holder. In the
policy document they have mentioned the payment of premium by the insured, payment of
SA by the insurance company on the happening of insured event etc. which part of the
policy document is most likely to contain such matter?
Preamble
Schedule
Terms and conditions
Operative clause
D
43. The lung cancer is aggravated by smoking. In terms of insurance, these are respectively
known as
Hazard & peril
Peril & hazard
Effect & cause
Either peril or hazard
A
44. Sohan and Amit are 30 years old unmarried persons. Sohan is having dependent mother
where as Amit has no dependent. Which type of policy most likely to be chosen by Sohan?
Health insurance for mother
Life insurance policy
Liability insurance policy
Retirement policy
B
45. Ashok is a young married man with beautiful young wife and two kids. He should selectwhich types of insurance projects?
Contingency funding
Health insurance
Housing Loan insurance
Retirement benefit insurance
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B
46. Underwriting is an important aspect of insurance business. In which of the following
situations underwriter must be most cautious?
Low age, low sum assured
Low age, high sum assured
High age, high sum assured
High age, low sum assured
C
47. A Govt. employee after retirement has chosen to take 10% of his pension benefit in
cash. Which of the following options shall be applicable to the person so far income tax
payment is concern?
It is absolutely tax free
He has to pay 10% TDS on the amount taken in cash
He has to pay 30% TDS on the amount taken in cash
He is not allowed to take in cash.
A
48. Amit has decided to invest Rs. 1,00,000/- every year in ULIP where as Ramesh has
decided to invest the same amount in PF in order to get IT exemption in 80C. In this view
which of the following is correct?
Both the investments have same impact.
In ULIP IT exemption u/s 80C is not available.
PF is also not eligible for IT exemption u/s Sec. 80C.
Both are taxable as per Income tax Act 1961
A
49. Ram and Shyam, both have taken life policy from same company through same agent
for same period. During the process of disclosure, the agent has revealed that he obtains
more commission from Ram. What may be the probable reason for the same?
Shyam has taken more number of policy that is why he has been given concession.
Rams policy is having rider
Ram is older than Shyam
Ram is having wife and children, where as Shyam is unmarried.
A50. Ramesh is a brother of Rakesh, in which circumstances Rakesh can propose a policy on
Rameshs name
If Ramesh owes him money
IF Ramesh gives a declaration
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If Ramesh proves that he need the money
If ramesh want to invest by his brothers name.
A
Show Results
1. 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 activitieswhich 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
B
2. In the context of financial planning, how is the difference between real needs and
perceived needs best described?
Real needs are financial needs and perceived needs are non-financial needs.
Real needs are actual needs and perceived needs are based on a clients 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.
B
3. 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
Young married with Kids
D
4. The Institute of insurance and risk management along with insurance education does
what more
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Regulation
Redressal
Research
Repository
C
5. 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
B
6. 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
C
7. A 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.
C
8. 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 paid up.
It was surrendered.
A
9. 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?
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Marriage.
Savings.
Education.
Protection.
A
10. 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.
C
11. If RBI increases the interest rates then what will be the effect on share prices.
Shares will be more attractive.
Shares will be less attractive.
Fixed deposits will be more attractive.
Fixed deposits will be less attractive.
B
12. 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 MNC
B
13. 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
A
14. What is purpose of investing money in debt mutual fund?
Easy access
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Fixed income
Tax Benefits
Tax Benefits
D
15. Mr. shailsh has an endowment policy with 30 years policy term, he has paid for eightyears. The sum assured Rs. 8,00,000/- and accumulated bonus Rs. 60,000/-. What is the
paid up value?
A. 213333
B. 229333
C. 273333
D. 293333
C
16. What is the similarity between Recurring Deposits & cumulative deposits in a bank
A. Guarantees
B. Taxation
C. Tenure
D. Lock in periods
A
17. Mrs. Sheela received some amount out of her husbands death. In such a situation
what will be her prime focus?
A. Savings
B. Insurance
C. Investment management
D. Planning for pension
C
18. Mr. Kunal 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
A
19. Which of the following falls under voidable contract?
Misrepresentation
Lack of insurable interest
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Fraud
None of the above
A
20. Law of large numbers is worked out by which of the following?
A. Pooling of risk
B. Maintaining insurable interest
C. With utmost good faith
D. Randomness
A
21. If a client wants to compare between all financial products then the best person he can
approach is
A. Individual agent
B. Corporate agent
C. Bank
D. Broker
D
22. If a person want to maintain emergency funds the best place is a bank or
A. Equity market
B. ULIP
C. Debt mutual fund
D. FDC
23. During a fact finding process the need analyzed were income replacement and
childrens 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.
A. Do the fact finding exercise again
B. Insist with the client to take a term plan
C. Give a child plan and revisit the client on a later date
D. Give the lead to another agent
C
24. If a case is already before the consumer forum, then the ombudsman should
A. Give a recommendation
B. Give a joint decision with the consumer forum
C. Dismiss the case
D. Give an award.
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C
25. If 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
C
26. What is the advantage of converting physical gold assets to gold ETFs.
Liquidity
More gold in value
Purity
More conversion valueA
27. For which of the following reasons, the underwriter should ask beyond agents
confidential report.
Physical Hazard
Moral Hazard
SA is too high
Pure Risk
C
28. After doing the need analysis 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 alternative plan
Pass on to the superior
Pass on to the other agent
A
29. 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
B
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30. According to IRDA agents code of conduct, what is the best method of showing the
amount of commission earned by the advisor
Signed copy of sales illustration
Brochure
Sales Communication
Press releases
A
31. 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
A
32. 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 arrears
A
33. If the customer has invested money in a pension plan from company A and buys an
annuity from company B, what is the nature of transaction?
Life Long Annuity
Open Market
Reinsuring Annuity
B
34. If a policy holder buys a policy from the advisor and lodges a complaint, it should be
treated as :
Same for all policies sold by advisor
Same for all policies sold by the advisor except corporate clients
A
35. An investor holds a wide range of shares. If the Reserve Bank of India announces a
series of significant interest rate increases, the prices of these shares are most likely to
A. Become volatile
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B. Decrease
C. Increase
B
36. In life insurance business if a person is working in calculating premium rates of
insurance products, then he is mostly likely a member of
A. institutes of actuaries of India
B. insurance institute of India
C. Charted institute of insurance
D. Insurance institute of risk management
A
37. In a life insurance policy it is later found that the person doesnt have insurable
interest then the contract is
A. expired
B. reviewed
C. Void
D. Valid
D
38. If both parents of proposer died in their thirties due to heart attack what is the kind of
peril or hazard the proposer has?
Insurable hazard
moral hazard
non insurable hazard
Physical hazard
D
39. Raunak earns 80,000 per month as salary. He has taken a House loan of Rs. 500000.
What will be the maximum amount of EMI that can be charged by the Bank to recover the
loan amount?
Rs. 32000 per month
Rs. 24000 per month
Rs. 40000 per month
Rs. 48000 per month
A
40. Frequent switching is not advisable in ULIP plan because it increase
Investment Risk
Risk of death
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Uncertainty of return
Chances of lapse
A
41. According to insurance terminology which of the following is correct?
Lung cancer is a hazard whereas smoking is a peril
Smoking is a hazard and lung cancer is a peril
Lung cancer is a peril and smoking is a moral hazard
Smoking is a moral hazard whereas lung cancer is a peril.
B
42. 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.
D
43. 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
B
44. 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
D
45. 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 clients parents
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Consulting the family of the client
Reviewing his existing investments
A
46. Net premium is equal to
Premium plus interest earning
Risk premium plus interest earning
Premium minus interest earning
Risk premium minus interest earning
D
47. 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
B
48. Principle 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 job.
B49. Both 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.
C
50. In case of life insurance, Insurable interest must exist
At inception of policy
Not needed
At the time of claim