Sample Paper irda exam

Revised IC 33 Questions

Ch 01 6% 3 22Ch 02 6% 3 29Ch 03 18% 9 63Ch 04 8% 4 49Ch 05 4% 2 42Ch 06 10% 5 31Ch 07 8% 4 57Ch 08 6% 3 29Ch 09 4% 2 19Ch 10 8% 4 16Ch 11 8% 4 32Ch 12 2% 1 17Ch 13 4% 2 23Ch 14 4% 2 26Ch 15 4% 2 19Total 100% 50 474

Chapter No.

Weightage Given in Exam

Questions/chapter Expected

Questions Available in Qbank

Questions Ans Option 1 Ans Option 2 Ans Option 3 Ans Option 4

1 Ch 1 1. Individual agent 2. Corporate agent 3. Bank 4. Broker 4

2 Ch 1 1

3 ch 1 1. CI benefit will cease 3. CI benefit continues 4. No change in policy. 1

4 ch 1 1. Money back policy 2. Convertible plan 3. Term plan 4. Endowment policy 1

5 Ch 1 4. Profiting from insurance. 4

6 ch 1 1. Group lifestyle 2. Employees 3. Age of the group 4. Medical history of group 3

7 Ch 1 1. 60000 2. 75000 3. 100000 4. 5000 2

8 Ch 1 How many days does the Free Look Period last? 1. 15 days 2. 30 Days 3. 45 days 4. 60 Days 19 Ch 1 The Ombudsman’s powers are restricted to insurance contracts of what value? 1. 1Lakh 2. 10 Lakhs 3. 15Lakhs 4. 20 Lakhs 4

10 ch 1 Insurance Market divided into 2

11 ch 1 What is Bancassurance? 4. None of the above. 2

12 ch 1 A contract comes into existence when……… 1

13 Ch 1 An insurance agent is intermediary between…. 3. Client and IRDA 1

14 Ch 1 Which of the following do not include the channel of indirect marketing? 1. individual agents 2. bancassurance 3. insurance brokers 4. through internet 3

15 Ch 1 The business of Insurance is connected with................ 4. market values of assets 2

16 Ch 1 Human beings need life insurance because.................. 1. death is certain 2. death is uncertain 4. Death is the solution. 3

17 Ch 1 Life insurance the risk is determined on the basis of .......... 1. future data 2. past data 3. statistical data 4. mathematical data 218 ch 1 Life insurance company determine the level of risk based on 1. Future expenses. 2. Claim experiences. 3. Present expenses. 4. Targeted bonus rates. 2

19 ch 1 In Insurance terms, pooling of risk is 4

20 Ch 1 Insurance business is classified into three main types: 3

21 Ch 1 1. Property Insurance 2. Life Insurance 3. Health Insurance 4. Liabilty Insurance 2

22 Ch 1 [email protected] [email protected] [email protected] 4

23 Ch 2 How are perils and hazards normally distinguished under term insurance policies? 2

24 Ch 2 1. Regulation 2. Redressal 3. Research 4. Repository 3

25 Ch 2 1. Physical hazard 3. Moral hazard 4. Peril 1

26 Ch 2 Law of large numbers is worked out by which of the following? 1. Pooling of risk 3. With utmost good faith 4. Randomness 1

27 Ch 2 3. As directed by actuary 4. As per company policy 1

28 Ch 2 According to insurance terminology which of the following is correct? 2

S.No

Revised

syllabus

Chapter No.

Correct option

If a client wants to compare between all financial products then the best person he can approach is In life insurance business if a person is working in calculating premium rates of insurance products, then he is mostly likely a member of

1. institutes of actuaries of India

2. insurance institute of India

3. Charted institute of insurance

4. Insurance institute of risk management

In term insurance if Critical illness rider claim happens then what will happen to existing policy

2. CI benefit reduced from existing sum assured

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 The concept of indemnity is based on the key principle that policyholders should be prevented from

1. Insuring existing losses.

2. Making false insurance claims.

3. Paying excessively for insurance cover.

For assessing the risk of a group health insurance policy, which of the following information is the most critical 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 revisionary bonus system?

1. Endowment and Money Back Insurance

2. Life and General (non-life) Insurance

3. Government and Private Insurance Markets

4. Health and Saving Insurance Markets

1. Giving insurance policies to Banks.

2. Selling insurance policies through Banks.

3. Giving guarantee to policies by Banks.

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

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. Client and Insurance Company

2. Insurance Company and IRDA

4. Insurance and Re-insurance company.

1. physical values of assets

2. economic values of assets

3. metaphysical values of assets3. the timing of death is uncertain

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.

1. Life, Non –life, Micro Insurance.

2. Life, Non Life, Miscellaneous

3. Life, Non life, Re-insurance.

4.Life, Health, Micro Insurance

Amit is looking for term insurance plan for protection of his family, he is advised to approach to:Insured can contact to seek the resolution of grievances they have against insurer to IRDA through:

[email protected]

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

2. Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk.

3. Perils are factors which affect the risk being insured and hazards are the size of the risk being insured.

4. Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout

The Institute of insurance and risk management along with insurance education does what more 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

2. Fraudulent representation2. Maintaining insurable interest

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?

1. Under no circumstances

2. Under conditions of the reinsurer

1. Lung cancer is a hazard whereas smoking is a peril

2. Smoking is a hazard and lung cancer is a peril

3. Lung cancer is a peril and smoking is a moral hazard

4. Smoking is a moral hazard whereas lung cancer is a peril.

29 Ch 230 Ch 2 What is the main objective of taking the life insurance policy? 1. Tax benefit 2. Savings 3. Investment 4. Protection 4

31 Ch 2 1. Joint life policy 2. Not Possible 3.50:50 4.Not Applicable 1

32 Ch 2 What is the maximum sum assured under a micro insurance 1. 10000 2. 25000 3. 50000 4. 100000 333 Ch 2 Available Loan amount under a life Insurance policy is generally based on 1. Total paid premium 2. Sum Assured 3. Surrender value 4. Paid up value 3

34 Ch 2 In case of life insurance, the insurable interest should exist 2. At the time of claim 1

35 Ch 2 Health insurance rider and critical illness rider in classified under 2. Both life insurance 3. Both non life insurance 2

36 Ch 2 1. 213333 & 273333 2. 213333 & 229333 3. 229333 & 273333 4. 229333 & 293333 1

37 Ch 2 3. 15 days from the receipt 4. 20 days from the receipt 3

38 Ch 2 Mr. Shyam is having 9 year old child. Which product is not to be given priority? 1. Health plan 2. Child Plan 3. Life Insurance 4. Retirement Plan 4

39 Ch 2 1

40 Ch 2 Ombudsman has to give his decision within how many days? 1. 15 Days 2. 30 Days 3. 2 Months 4. 3 Months 241 Ch 2 The “Risk” contains…. 1. Peril and Hazard 2. Level 3. Uncertainty 4. All of the above. 442 Ch 2 Grouping the similar risks by Insurance Company is called as…. 1. Grouping of Risk 2. Risk Grading 3. Risk Assessment 4. Pooling of Risk 443 Ch 2 The function of Insurance works on….. 1. Risk Transfer 2. Risk avoid 3. Risk retention. 4. All of the above. 1

44 Ch 2 1. Risk retention 2. Risk transfer 3. Risk avoidance 4. Risk tolerance 2

45 Ch 2 Which of the following can be an example of moral hazard? 3

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

47 Ch 2 1

48 ch 2 1. Speculative. 2. Particular. 3. Financial. 4. Fundamental. 3

49 Ch 2 1. Pure Risk 2. Pooling of Risk 3. Insuraable Risk 4. Sharing of Risk 2

50 Ch 2 1. Pure Risk. 2. Particular Risk. 3. Financial Risk. 4. Insurable Risk 1

51 Ch 2 which of the following refres to specific event which might cause a loss ... 1. Peril 2. Hazard 3. Physical hazards 4. Uncertinity 2

52 ch 3 1. 213333 2. 229333 3. 273333 4. 293333 3

53 Ch 3 1. It rises 2. It falls 3. It remains constant 3

54 Ch 3 3. Only health certificate 1

55 Ch 3 1. expired 2. reviewed 3. Void 4. Valid 4

56 Ch 3 Net premium is equal to 3

57 ch 3 Pooling of risk in insurance means 2

58 ch 3 Principle of utmost good faith will operate in existing policy 2

Suresh is suffering from Asthma and the policy is been done on joint life basis and the need for nomination under the plan will be as

1. At the time of taking the policy

3. At the time policy matures

4. At the time of taking the policy & claim

1. Life and non life respectively

4. Nonlife and life respectively.

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? Under the IRDA guidelines for Claim settlement, any queries or additional documents can asked from the claimant within

1. 5 days from the receipt

2. 10 days from the receipt

Vijay received his policy bond on 11th June, 201 Due to some personal problems he has decided to cancel the policy on 8th July, 201 Can he cancel or return the policy?

1. No, as 15 days period is over

2. Yes, as it is within 1 year

3. No, as 20 days period is over

4. Yes, as it is within 3 months

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. 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.

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

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 Transfer

Ram works in a Fire cracker factory. He stocks the cracker in his house. He runs which type of risk. An Insurance company pools the premium collected from several Individual to insure them against similar risk is called: 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:

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

4. Gross premiums increases

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?

1. Reinstatement Fee and Proof of continuing good health

2. Premium cheque and health declaration

4. Premium cheque with arrears

In a life insurance policy it is later found that the person doesn’t have insurable interest then the contract is

1. Premium plus interest earning

2. Risk premium plus interest earning

3. Premium minus interest earning

4. Risk premium minus interest earning

1. The premium collected & deposited in a pool

2. All similar risks are pooled together

3. Premium is pool to make claims

4. Contribution of insurance company

1. Every time premium is paid

2. If the policy has lapsed and it has to be revived.

3. If the insured person falls sick and is admitted to hospital.

4. If the insured person changes his job.

59 ch 3 1. Consideration. 2. Legality of an object. 3. Consensus ad idem. 4. Acceptance. 3

60 Ch 3 Life insurance is the most important for which age group 1. Young 2. Pre- retirement 3. Retirement 4. children 2

61 Ch 3 The premium for accidental death benefit rider must not exceed 3

62 ch 3 1. 8000 2. 8320 3. 9456 4. 9240 2

63 Ch 3 1. Discounted Value 2. Principle amount 1

64 Ch 3 If bonus is given under a plan the additional premium added is known as 1. Loading 2. Investment 3. Frequency 4. Interest 1

65 Ch 3 In case of a term plan the maximum premium of the accidental rider can be. 3. 30% of basic premium. 4. 35% of basic premium. 3

66 ch 3 The reduction in the benefit illustration shows what. 1. Charges. 2. Mortality. 3. Interest. 4. Inflation. 167 Ch 3 If a life insurance policy is issued with a lien, it will be mention in 1. Proviso 2. Schedule 3. Terms & conditions 4. Endorsement 2

68 Ch 3 If we hold 100 units in gold ETF, It means that how much grams we have in physical 1. 5 or 10 grams 2. 10 or 15 grams 3. 15 or 25 grams 4. 50 or 100 grams 4

69 Ch 3 1. Insurance coverage 2. Annuity part 4. Vesting age 3

70 Ch 3 1. Surety insurance 2. Keyman Insurance 3. Partnership Insurance 4. Debtor Insurance 2

71 Ch 3 1. Commission 2. Charges 4. Reversionary Bonus 2

72 ch 3 1

73 Ch 3 What is the major reason for self employed to take insurance. 1. Save Tax 2. Fluctuating income 3. High Returns 4. Protection 4

74 Ch 3 1. National Commission 2. District Level 3. State Level 4. Mandal Level 2

75 Ch 3 1. Middle Level 2. Top Level 3. Low Level 4. High Level 4

76 Ch 3 1. 7680 2. 9320 3. 8320 4. 6600 3

77 Ch 3 Under this situation may leads to breach of the duty of utmost good faith. 4. All of the above. 4

78 Ch 3 Principle of Indemnity denotes….. 4. All of the above. 1

79 Ch 3 The principle of utmost good faith is not applicable to 2. Facts of law 4. All of the above. 4

80 Ch 3 What are the factors involved in calculating Surrender Value of the Policy? 3. Sum Assured 4. All of the above. 4

81 Ch 3 What are the different types of Assignments? 2

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

83 Ch 3 In an insurance contract the insurable interest needs to be at the time of .... 1. claim 2. revival 3. inception 4. surrender 3

84 ch 3 In an insurance contract 'consideraton' means........ 1. proposal form 3. premium 4. claim 3

85 ch 3 Where do you not find insurable interest in the following options......... 1. surety-co surety 2. employee-employer 3. husband-wife 4. brother-sister 4

86 ch 3 The principle of utmost good faith applies to........... 1. only insurers 2. only proposer 3

Both the parties to a contract must agree and understand the same thing and in the same sense which is called

1. 15% of base policy premium




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. 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?

3. Discounted Value with persistency bonus

4. Principle with persistency bonus

1. 100% of basic premium.


In a pension plan illustration what are the parts which shows the benefit for an annuitant.

3. Guaranteed and non guaranteed part

If the employer has insurable interest in the life of an employee, what kind of policy is this? In the sales illustration, the reduction of the actual benefit amount is mainly due to deduction of

3. Non guaranteed benefits

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

1. 15 days from the date of receipt of the policy document




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? Rajesh is 34 years old and having 2 sons, Vineeth and Sumith. The level of risk appetite, Rajesh belongs is _______. Total annual premium Rs 32000 quarterly loading done 4 %. Hence actual quarterly premium will be

1. Non disclosure of material facts.

2. Concealment of a material fact

3. Fraudulent misrepresentation of facts.

1. Insurance can not be used to make a profit

2. Insurance should not taken by high risk people.

3. Insurance can not taken by politicians.

1. Facts of common knowledge

3. Facts those are not material.

1. Number of year’s premium paid.

2. Number of premiums payable.

1. Full Assignment and Partial Assignment

2. Conditional and Absolute Assignment.

3. Life Assignment and General Assignment.

4. Standard Assignment and Non-Standard Assignment.

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 Reversionary bonus, what is bonus amount?

2. Advisors confidential report

3. both insurers and proposer

4. neither insures nor proposer

87 Ch 3 3

88 Ch 3 Which of the following statement is not true in connection with nomination? 3

89 Ch 3 Which of the following statements in correct in connection with assignment? 1

90 Ch 3 2

91 ch 3 2. Capacity to contract 3. Consensus ad idem 4

92 ch 3 3

93 ch 3 2

94 Ch 3 1

95 Ch 3 3

96 Ch 3 2

97 ch 3 A contract exists between insurer and proposer when 1

98 ch 3 1. Indemnity contract. 2. Value contract. 3. Deemed contract. 4. Rolling contract. 1

99 ch 3 Payment of premium and sum assured are laid down in 2. Proviso of policy. 3. Operative clause. 3

100 ch 3 An insurance contract commences when 3. Proposal Form is signed. 2

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

102 ch 3 3. Moneys will be forfeited. 4. Acquires paid up value. 4

103 ch 3 How assignment distinguishes itself from nomination? 1

104 ch 3 3

105 ch 3 What key event is most likely to make an insurance contract not a valid contract? 4

106 Ch 3 1. Loan assignment 3. Loan Agreement 4. Absoulte Assignment 2

107 Ch 3 1. Endowment Plan 2. Term Plan 3. Money Back Plan 4. Annuity Plan 1

108 Ch 3 1. Nominee 3. Debotrs 4. forfeited the Premium 2

109 Ch 3 1. An Age Proof 2. An Identity Proof 3. An Address Proof 4. Education Proof 4

110 Ch 3 Life Insurance also known as: 1. Value Contract. 2. Indemnity 3. Commercial Contract 4. Speculative 1

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

1. The life insured can nominate one or more than one person as nominees.

2. Nomination 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 nomination.

4. The section 39 of the Insurance Act 1938 speaks about the nomination.

1. Assignee cannot make fresh nomination 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. Conditional assignment and absolute assignment are one and the same.

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 plans

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

4. Offer and Acceptance in the contract

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

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

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

2. Policy will be surrendered by the nominee

3. Policy will be surrendered by the company

4. Policy will be surrendered by the heir

Mr. Manish 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?

1. He regularly pays premium so he can take loan from both the policies

2. He can surrender whole life policy and can take loan from Money back policy

3. He can’t take loan from money back but can avail loan from Whole life policy

4. He can’t take loan from whole life policy but can avail loan from Money back policy

Mr. Raj has taken a policy of 15 year term. He has paid the premium for 9 years. But now unfortunately he has lost his job. He is unable 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

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.

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. Heading of policy document.

4. Schedule of policy document.

1. Quotation is signed by proposer.

2. First Premium Receipt is issued.

4. Policy Document is received by policyholder.

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.

Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 annual premiums but due to financial crisis is unable to make future premium. His policy

1. Acquires surrender value.

2. Contract comes to an end.

1. Nomination does not transfer the title while assignment does.

2. Nomination transfers the title while assignment does not.

3. Nomination is made after policy is issued while assignment is done before it is issued.

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

Under 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 financial status.

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.

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 name of Manish is called:

2. Conditional Assignment

Rakesh has bought an Endowment, Money back, Term & Annuity Plan he would like to avail Loan from:On foreclosure, if Death claim arises before the payment of the surrender value, the payment would be payable to:

2. Legal heir of life Assured

To prove one’s identity in accordance with KYC process, the customer needs to submit following document excluding ……….?

111 Ch 3 1. Lien Clause 2. Opertaive Clause 3. Proviso Clause 4. Schedule of Policy 2 Which clause lays down the mutual obligation of the parties regarding, Payment of Premium by Life assured & payment of Sum Assured by

112 Ch 3 1. Nominee only 3. Appointee Only 2

113 Ch 3 3.Lien Clause 4.Utmost good faith apply 1

114 Ch 3 2. Standard Age proof 3. an Address proof 4. Proof of Income tax payer 2

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

116 Ch 4 2

117 Ch 4 1. Physical Hazard 2. Moral Hazard 3. SA is too high 4. Pure Risk 3

118 Ch 4 1. Insurable hazard 2. moral hazard 3. non insurable hazard 4. Physical hazard 4

119 Ch 4 1. 1 lacs 2. 3 lacs 3. 2 lacs 4. 1.50 lacs 2

120 Ch 4 What key impact will the agent have in low persistency 3. Will improve reputation 4

121 Ch 4 1. 10 days 2. 15 days 3. 30 days 4. 45 days 2

122 Ch 4 The insurance act of 1938 created which of these. 1. IRDA 4. LIC 2

123 Ch 4 With reference to the principle of indemnity a life insurance policy is a. 1. Insurance contract. 2. Indemnity contract. 3. Value contract. 4. Major life contract. 3124 Ch 4 Micro insurance is made specifically for people from. 1. High income. 2. Middle class. 3. Low income. 4. Affluent class. 3

125 Ch 4 1. Voidable 2. Invalid 3. Valid 4. Null & voidable 2

126 Ch 4 If a contract is signed by a 15 years old boy, this contract will be 1. Null and void 2. Invalid 3. Voidable 4. Valid 2

127 Ch 4 4. Option 1 & 3 are correct 1

128 Ch 4 As per IRDA regulations IGMS should be mandatory set up by 2. Only by non life 3. Some life and non life 4. By all insurers. 4

129 Ch 4 For an insurance agent, a low persistency ratio means : 3. Higher reputation 2

130 Ch 4 Law of Large number helps the insures to 4. Declare the bonus 3

131 Ch 4 What is the limit of tax benefit that can be availed of under Section 80C? 1. 50,000/- 2. 15,000/- 3. 10,000/- 4. 100,000/- 4

132 Ch 4 1. A clause 2. A Lien 3. A Loading 4. Level Premium 2

133 Ch 4 In Cumulative Deposits the interest is normally compounded in a 1. Annually 2. Semi Annually 3. Quarterly 4. Monthly 1

134 Ch 4 Age proof submitted from Village Panchayat is: 3. Not at all accepted 2

135 Ch 4 Maximum Life cover 2. 500000 3. 1500000 4. 4000000. 1

136 Ch 4 1. Anti Money Laundry 4. All of the above 2

137 Ch 4 What is the main source for insurance company to get information of proposer? 1. Advertisements. 2. Proposal form. 3. Conducting interviews. 2

138 Ch 4 Moral Hazard reflects the ……. 1

139 Ch 4 Income replacement methods equates Human Life Value (HLV) to 2

140 Ch 4 Agent will be called as….. 1. Primary Underwriter 2. Main Underwriter 3. Chief Underwriter. 4. Information Underwriter. 1

141 Ch 4 When an illiterate person wants to have a policy..... 1


143 Ch 4 The underwriter can get the required information about the proposer in..... 1. Proposal form. 2. renewal receipt 3. brochure 4. annual report 1144 Ch 4 Mr. Ramesh works in a mining company. So he is exposed to.............. 1. moral hazard 2. physical hazard 3. mental hazard 4. Ethical hazard. 2

145 Ch 4 Lien is imposed on a policy when underwriter feels that...... 2

146 Ch 4 What does the mortality tables contains ? 4

Gaurav is working in MNC at the age of 32 bought an Endowment Plan. He had nominated his 1 year old daughter Saanvi, but not able to get the Signature of her appointee due to unavailability of his spouse .after 5 year. He died in road accident, now claim money would be payable to:

2. Legal heir of the life assured

4. will be Payable to Saanvi (Nominee) at the age of 18th

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

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

While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account?

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?

1. Sandeep has taken another policy from XYZ Life Insurance Company

2. Vishal is older than Sandeep

3. Sandeep is earning more then Vishal

4. Vishal is working in a MNC

For which of the following reasons, the underwriter should ask beyond agent’s confidential report. If both parents of proposer died in their thirties due to heart attack what is the kind of peril or hazard the proposer has? 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. Increase more business

2. Increase in the agents earning

4. Will have impact in his commission.

Within how many days will the underwriter needs to inform the policyholder regarding the status of the policy.

2. Tariff Advisory Committee

3. National Insurance Academy

If Insurable interest does not exists at the time of inception of the life insurance policy then, life insurance contract is

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

1. Shailesh is older than ankit.

2. Shailesh’s income is more than Ankit’s income

3. Shailesh & Ankit want it that way

1. Only by few selected insurers1. Loss of renewal commission

2. High client satisfaction

4. More earning of First Year Commission

1. Calculate the premium

2. Increase the profitability

3. Ascertain the death ratio

In a case, the underwriter felt that the risk associated with the person would decrease with time, then he would accept the case with

1. Standard and accepted

2. Not standard but accept

4. Accepted with SSLC book/mark list

1. 20 times annual salary

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 name in order to get monitory benefit. Insurance company rejects this proposal on the grounds of…….

2. Legality of object or purpose

3. Capacity of paying future premiums.

4. Telephonic conversations.

1. Intentions and attitude of Proposer.

2. Habits and Hobbies of Proposer.

3. Occupation and Residence of Proposer.

4. Medical and Personal History of Proposer.

1. Future value of Present earnings.

2. Present value of future earnings.

3. Present value of previous earnings.

4. Future value of previous earnings.

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.

As per the IRDA regulations the decisions on the proposal must to convey to the proposer within......

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

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

147 Ch 4 4

148 Ch 4 Which of the following information does not appear in the First Premium Receipt? 3. Date the policy matures 2

149 Ch 4 3

150 Ch 4 4

151 Ch 4 The responsibility for classification and analysis of the proposal form lies with whom? 3. Underwriter 3

152 Ch 4 In underwriting the economic value of the person is determined by what? 4. Human Life Value 4

153 Ch 4 2

154 ch 4 3. Concealment. 4. Non-Disclosure. 4

155 ch 4 1. Terms & Condition. 2. Preamble. 3. Endorsement. 4. Schedule. 3

156 ch 4 When an underwriter may consider Moral Hazard? 3

157 ch 4 Level Premium is calculated based on 1. Risk Premium. 2. Net Premium. 3. Loading of Premium. 4. Gross Premium. 1

158 ch 4 MPL abbreviates 2. Major Possible Loss. 3. Minor Possible Loss. 4. Maximum Possible Loss. 4

159 ch 4 To explain the benefits of a product, the insurance adviser should 2

160 Ch 4 3. Persistency Bonus 4. Interim bonus 3

161 Ch 4 1. Gross Premium 2. Level Premium 3. Risk Premium 4. Net Premium 2

162 Ch 4 Which one of the following is not source of information about the 1. Proposal Form 2. Insurance agent 3. neighbor of proposer 3

163 Ch 4 1. Physical Hazard 2. Moral Hazard 3. Medical 4. No underwriting 2

164 Ch 5 Frequent switching is not advisable in ULIP plan because it increase 1. Investment Risk 2. Risk of death 3. Uncertainty of return 4. Chances of lapse 1

165 Ch 5 4

166 Ch 5 If person consumes alcohol- what is the type of hazard? 1. Moral 2. Physical 3.Ethical 4.Ethical & Moral both 2

167 Ch 5 1. 2.5% 2. 3.0% 3. 5.0% 4. 7.5% 3

168 Ch 5 Nomination can be in favor of how many people? 1. One person 2. Two persons 3. Three persons 4. It can be any number 4

169 Ch 5 1. 2 lacs 2. 3 lacs 3. 5 lacs 4. 6 lacs 2

170 Ch 5 3

171 Ch 5 1. Moral hazard. 2. Moral peril. 3. Physical hazard. 4. Physical peril. 3

172 Ch 5 What is the key function of NIA 3

173 Ch 5 1. Bank 2. Insurance Company 3. Post Office 4. Share Market 3

174 Ch 5 During Fact finding, rating is mentioned ‘3’. This Indicates 1. Risk apatite of client 2. His future aspiration 3. Commitment to need 4. Willingness to pay 1

175 Ch 5 1. Term Plan 3. Pure Endowment plan 4. Unit Linked Plan 1

176 Ch 5 Incase of presumption of death 3. Claim not admissible 4. Depends on case to case 2

177 Ch 5 Within how many years a complaint can be made through consumer protection act. 1. One year 2. Two years 3. Three years 4. Five years 2

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

1. method and frequency of premium payment

2. Date of commencement of last premium

4. Date the last premium will be paid

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

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. Financial Inspection agencies

2. Specialized inspection agencies

3. Credit worth inspection agencies

4. Insurance Investigation Agencies

1. Risk Analysis Department

2. Classification of Risk Department

4. Actuary who analysis the risk

1. The occupation of the person

2. The financial history of his family

3. The income that he earns

In which one of the following statement an agent’s commission will be disclosed to the customer ?

1. Customer Statement of the product

2. Benefit illustration of unit linked product

3. Benefit illustration of endowment product

4. Customer data sheet with the product

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 misrepresentation.

2. Fraudulent misrepresentation.

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. 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.

1. Minimum Possible Loss.

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.

Which one of the following bonuses is given by insurer as an incentive to the insured to for long term:

1. Simple Revisionary bonus

2. Compound Revisionary bonus

Ramesh bought an endowment plan for tern year he pays the same Amount in every year is called:

4. Medical of examination report

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

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?

1. Risk profile of both the policyholder are different

2. Age of both the candidate are different

3. One has chosen Single premium policy and other has chosen regular premium policy

4. Both have chosen different kind of policies.

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

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.

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.

1. The policy needs to be advertised in the newspaper.

2. Nishu has to sign an indemnity bond.

3. Thumb impression of Ashu has to be taken.

4. Ashu needs to be medically examined.

In the personal statement, Harish declares that he consumes alcohol twice every week. This is a

1. Provide suggestion for Premium calculation

2. To be an active link between Global market & Indian Life Insurance Industry

3. Design, implement and operate an insurance training

4. Regulate the investment of funds by Life Insurance company

Gautam wants to purchase a Kisan Vikas Patra. What is the most suitable place to purchase it

Raunak wants to purchase a cheapest plan which can provide financial security to his dependent. Which plan should be offered

2. Term Plan with return of premium

1. Not necessary to pay premium until court decree

2. Necessary to pay premium until court decree

178 Ch 5 Basing on which criteria the qualification of Agent is determined? 1. Address of the agent 2. Domicile status 3. Qualification of Agent 4. DOB of Agent 2

179 Ch 5 If IRDA is unable to discharge its functions or duties, Central Government 1

180 Ch 5 1. Provisio 2. Endorsements 3. Operative clause 4. Terms and Conditions 2

181 Ch 5 When a person is investing in Debt Mutual Fund, what is the primary objective 1. Good Returns 2. Regular Income 3. Safety 4. Liquidity 4

182 Ch 5 The client of reinsurer are 1. Insurance companies 2. Banks 4. Brokers 1

183 Ch 5 In the case of life insurance, insurable interest should exist 2. At the time of a claim 4. All the above occasion 1

184 Ch 5 In which of the following plan remaining part of the Sum Assured is paid on maturity? 1. Endowment Plan 2. Convertible Plan 3. Money Back plan 4. Term Plan 3

185 Ch 5 Payment/Investments in Kishan Vikash Patra under post office schemes is done 3

186 Ch 5 1. Physical 2. Moral 3. Occupation 4. Not applicable 2

187 Ch 5 Whose signature is required on attestation of the policy? 1. Agent 2. Policy holder 4. Proposer 3

188 Ch 5 Payment of premiums by cash cannot exceed ____________ . 1. Rs. 1, 00,000 2. Rs. 50,000 3. Rs. 25,000 4. Rs. 60,000 2

189 Ch 5 1. Normal 2. Fraudulent 3. Early 4. General. 3

190 Ch 5 What does MDRT Stand for? 3. Major Dollar Round Tag 1

191 Ch 5 3

192 Ch 5 The two basic elements of most life insurance plans are 3

193 Ch 5 Term Insurance Plan will give…. 1. Only Death Benefit. 2. Only Maturity Benefit. 3. Only Bonus Benefit. 4. Only Tax Benefit. 1

194 Ch 5 Low risk products give….. 1. High Returns 2. Low Returns 3. Moderate Returns 4. Good Returns 2

195 Ch 5 Which of the following product not comes under Section 80 ( C ), income tax act 196 4

196 Ch 5 The income of an individual can be protected with the help of......... 1. a unit linked policy 2. a term life policy 3. an endowment policy 4. a money back policy 2

197 Ch 5 1. when he dies 3. when he is hospitalized 4. when he loses his job 2

198 Ch 5 Flexibility like partial withdrawal and taking premium holidays is possible with.... 1. Fixed deposits 3. Term Insurance 4. Endowment plans 2

199 Ch 5 3

200 Ch 5 2

201 Ch 5 1. Salary saving Life plan 2. Not a specific plan 3. Salary insurance plan 4. Salary Specific plan 2

202 ch 5 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

203 ch 5 1. Endowment Plan. 2. Money Back Plan. 3. Whole Life Plan. 4. Term Plan. 4

204 Ch 5 In Group insurance plans contract of insurance between …………? 2. Employer & Employee 3. Employee & Insurer 4. Creditors & Debtors 1

205 Ch 5 Which option is not correct with regard to joint life insurance plan? 2

206 Ch 6 If RBI increases the interest rates then what will be the effect on share prices. 2

207 Ch 6 What is purpose of investing money in debt mutual fund? 1. Easy access 2. Fixed income 3. Tax Benefits 4. Liquidity 4

208 Ch 6 What is the similarity between Recurring Deposits & cumulative deposits in a bank 1. Guarantees 2. Taxation 3. Tenure 4. Lock in periods 1

1. Has the power to supersede the IRDA by issuing notification.

2. Has the power to supersede the IRDA by issuing a bill in parliament

3. Has the power to supersede the IRDA by issuing draft

4. Can make changes in IRDA law

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?

3. Asset Management Companies

1. At the inception of the policy

3. At the time of every renewal premium payment

1. Regularly with no fixed term

2. Lump Sum with no fixed term

3. Lump Sum for fixed period of time

4. Regularly for fixed period of time

A person with a criminal background due to Financial fraud would come under which hazard

3. Authorized officials of insurer

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.

1. Million Dollar Round Table

2. Major Double Rupees Tag

4. Mean Disposition Residence Time

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.

1. Guaranteed Benefit and Non-guaranteed Benefit.

2. Interest Benefit and Bonus Benefit.

3. Death Benefit and Maturity Benefit.

4. Bonus Benefit and Tax Benefit.

1. National Saving Certificates.

2. Equity Linked Saving Schemes.

3. Principle component of home loan.

4. Premium paid for Health Insurance Plan.

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......

2. when he survives the term2. Unit linked Insurance plans

Mr. Varun who won 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

Mr. Vinu 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?

1. Convertible Endowment plan

2. Convertible Term plan

3. Convertible pure Endowment

4. Convertible money back plan

Mr. Kumar decides that his employees should have SSS scheme. What type of plan is SSS?

Manmohan has recently purchased a house worth ` 50, 00,000 on loan. Which insurance product you as an adviser will suggest?

1. Master Policy holder & insurer

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.

1. Shares will be more attractive.

2. Shares will be less attractive.

3. Fixed deposits will be more attractive.

4. Fixed deposits will be less attractive.

209 Ch 6 If a person want to maintain emergency funds the best place is a bank or 1. Equity market 2. ULIP 3. Debt mutual fund 4. FD 3210 Ch 6 What is the advantage of converting physical gold assets to gold ETFs. 1. Liquidity 2. More gold in value 3. Purity 4. More conversion value 1

211 Ch 6 1. Become volatile 2. Decrease 3. Increase 4. Remain unchanged 2

212 Ch 6 2. Rs. 24000 per month 3. Rs. 40000 per month 4. Rs. 48000 per month 1

213 Ch 6 In case of life insurance, Insurable interest must exist 1. At inception of policy 2. Not needed 3. At the time of claim 1

214 Ch 6 1. Operative clause 2. Attestation 3. Information statement 4. Endorsements 3

215 Ch 6 1. Denny 2. Denny and his wife 4

216 Ch 6 1. Actuary 2. Underwriter 3. Claim Department 4. Accounts 1

217 Ch 6 2

218 Ch 6 1. 2011 2. 2012 3. 2013 4. 2014 1

219 Ch 6 1. Nil 2. 1% 3. 5% 4. 10% 1

220 Ch 6 1. Endowment plan 2. ROP plan 3. Whole life plan 4. Ulip 2

221 Ch 6 1. 48% 2. 50% 3. 60% 4. 26% 4

222 Ch 6 In what proportion is the cover in a Family Floater Plan shared? 1. 25% each 2. 15% each 3. 50% each 4. No Proportion 4223 Ch 6 Bank interest is accumulated 1. Monthly 2. Yearly 3. Quarterly 4. Once in 6 months 2

224 Ch 6 Who will maintain Mutual Fund Schemes? 3

225 Ch 6 Which is the primary saving need among all saving needs? 1. Insurance 2. Purchasing House 3. Investment. 4

226 Ch 6 1. Insurance 2. Shares 3. Fixed Deposit in Bank 4. Mutual Funds. 3

227 Ch 6 Which of the following ways is easier for a person to take a saving product? 2. through internet 3. corporate agents 4. call centers 2

228 Ch 6 1. Life Insurance 2. Mutual fund 3. Shares 4. Bank deposits 4

229 Ch 6 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

230 Ch 6 3. Stock brokers 4. Share brokers 2

231 ch 6 1. Likely to increase. 2. Likely to decrease. 3. Will fluctuate. 4. No change is likely. 2

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

233 Ch 6 1. Corporate Bond 2. Infrastructure Bond 3. Health Insurance 2

234 Ch 6 1. Saving Deposit 2.Cumlative deposit 3. Traditional Deposit 4. Fixed Deposit 3

235 Ch 6 1. Dividend Income 2. Captial Appreciation 3. Bonus Share 4. Interest on share 2

236 Ch 6 Vinod being an insurance agent can offer assistance to his client Ramesh by: 2

237 Ch 7 1. Life Long Annuity 2. Open Market 3. Reinsuring Annuity 4. deferred Annuity 2

238 Ch 7 Open market option under Annuity policy would extend which of the following benefit? 2. Increase in the range 3. Increase in return 4. Switch of Funds 2

239 Ch 7 1. Traditional deposits 2. Recurring deposits 3. Cumulative deposits 4. Term Deposits 3

240 Ch 7 The Premium on all riders put together should not exceed 3

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

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?

1. Rs. 32000 per month

4. Any time during the contract

In which section of Policy document, Information about the location of the insurance Ombudsman had written? 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.

3. Denny, his wife and children

4. Denny, his wife, his children and his parents

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? 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 maturity

A customer surrenders his policy on Feb 2010 As per Agents code of conduct, an agent can get a new policy from this customer from Feb which year If a policy with premium of Rs 5000 has matured, how much will be deducted when the maturity claim arises

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

Under current regulations what is the maximum stake that the Foreign Partner in Insurance Company hold?

1. Mutual Fund Management Societies

2. Mutual Fund Management Systems.

3. Asset Management Companies.

4. Asset Maintenance Company Limite4.4. Contingency/ Emergency Fun4.

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. through individual agents

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.....

Who act as an intermediary by offering a trading platform for buying and selling of shares? Chap-6

1. Bombay Share exchange

2. Bombay Stock exchange

The Central Bank has recently announced the decrease in interest rates. The prices of bonds are

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

4. Interest paid on education loan

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:Mukesh buys shares at lower price and sold at higher price, the Difference between the two prices is known as:

1. Providing him emergency fund.

2. Matching the product with Ramesh‘s financial need.

3. Recommendation of product with highest return.

4. Discourse saving in a purposeful and need based manner.

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?

1. Ensure Better annuity rate

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

1. 10% of the premium on the base policy




241 Ch 7 How riders will help the customer in life insurance? 2. rider is like a clause 3. Operative clause. 4. Rider is like Preamble. 1

242 Ch 7 In Daily hospitalization cash benefit scheme, 1

243 Ch 7 A lump sum withdrawal allowed as commutation in pension plans is 4. Full withdrawal is allowed 1

244 Ch 7 1. paid up to 75 Yrs 3. till he die 4. not remembered 2

245 Ch 7 1


247 Ch 7 1. Up to 50000 2. Up to 99990 3. Up to 100000 4. Without any limit 1

248 Ch 7 In Cumulative bank deposit the interest that in normally compounded on what basis. 1. Monthly 2. Quarterly 3. Half Yearly 4. Annually 2

249 Ch 7 1. 2013 2. 2015 3. 2017 4. 2020 2

250 Ch 7 1. Switching 3. Churning 4. Fact Finding 3

251 Ch 7 Certificate from the village panchayat 3. Will not be accepted 4. Will be verified first 2

252 Ch 7 The Authority of COPA is limited to what amount at the district level. 1. 10,00,000. 2. 20,00,000. 3. 50,00,000 4. 1,00,00,000. 3

253 Ch 7 In case of a term plan the maximum premium of the accidental rider can be. 3. 30% of basic premium. 4. 35% of basic premium. 3

254 Ch 7 Which is correct in relation to Insurance Broker? 4. None are correct 1

255 Ch 7 In which plan weekly premium payments are accepted. 1. Health Insurance 2. Group Insurance 3. Micro Insurance 4. Macro Insurance 3

256 Ch 7 4

257 Ch 7 What are the benefits to the policyholder Under Surgical care rider? 3

258 Ch 7 National insurance academy has the following main functions 1. Calculating premium 3. Training 4. Mortality assumptions 3

259 Ch 7 1

260 Ch 7 1. Endowment 2. Term 3. Money Back 4. Whole of Life 3

261 Ch 7 A low persistency ratio for the insurance company means that: 3

262 Ch 7 1. Churning 2. Proposing 3. Underwriting 4. Switching 1

263 Ch 7 If the recommendation of the agent has been rejected by the client, the agent should: 2

264 Ch 7 To identify suitable products their main features and their tax treatments is the role of: 1. Agent 2. Insured 3. Policy Holder 4. Insured person 1

265 Ch 7 1. Critical Illness Rider 3. Accidental Benefit Rider 4. Surgical Care Rider 2

266 Ch 7 Mr. X is married with wife, 2 children and aged parents Health premium is allowed for 1. X only 2. X with wife 3. X with wife and kids 4. X with all 4

1. allows policyholders to customize their insurance cover with additional benefits

1. The daily amount paid is fixed and will never be more or less than the cost of actual treatment.

2. The insurance company may pay an additional amount on a daily basis if the insured is admitted to the Intensive Care Unit (ICU).

3. The insurance company will pay for doctor consultation fees incurred prior to hospitalization

4. Only surgery expenses are included in daily hospitalization benefit

1. 1/3rd of the accumulation fund

2. 1/4th of the accumulation fund

3. 1/2nd of the accumulation fund

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?

2. annuity will be continued for next 5 Years

The regulations issued by the IRDA, require that the decision on the proposal must be conveyed to the proposer within

1. 15 days of receiving the proposal




According to IRDA guidelines, how long does an insurance company have to complete its investigation of a claim? To ensure that the premiums are paid out of a legitimate source of funds cash is accepted

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. 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

2. Doing a financial planning

1. Will be considered as standard age proof

2. Will be considered as non standard age proof



1. Insurance broker is represents insurance buyer and remunerated by the insurance company

2. Insurance broker is represents insurance buyer and remunerated by the Client

3.Insurance Broker gets money from both Insurance company as well as from Client fo selling Insurance

An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. Its the impact in his taxation

1. He will get tax benefit up to 5000

2. He will get tax benefit up to 25%

3. He will get a reduction in tax slab

4. His investment would be deducted from taxable income

1. Number of days admitted in hospital & surgery expenses in full

2. Number of days admitted in hospital & surgery expenses in partial

3. Treatment cost of surgery subject to terms & conditions

4. Lump sum amount what he has incurred

2. Interact with the government

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

1. When the customer asks him

2. After the fact finding process

3. After quantifying the need

4. After the product is recommended to the client

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 ?

1. The customers are satisfied with the products

2. The company is acquiring more business and new customers

3. A large numbers of policies have lapsed / surrendered resulting in loss of profit

4. The company will not declare bonus

Venu, aged, 32, had a Insurance cover of 10, 00,000/- . He was approached by an advisor who made some analysis and told him that his Insurance need is higher than 10, 00,000 and suggested that he surrenders the existing policy and buys a new one. This is an example of

1. Ask the client to fill the proposal form

2. Find out the reasons for refusal

3. Must try to convince the client to follow his recommendation

4. Must try to force the client to follow his recommendation

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

2. Hospitalization Care Rider

267 Ch 7 Hospitalization rider has the following benefit: 1

268 Ch 7 1. Rs. 3, 00,000/- 2. Rs. 4, 50,000/- 3. Rs. 90,000/- 4. Rs, 4, 85, 468/- 1

269 Ch 7 1. Collection Phase. 2. Accumulation Phase 3. Pension Phase. 4. Primary Phase. 2

270 Ch 7 3

271 Ch 7 1

272 Ch 7 In 'Daily hospitalization cash benefit plan'...... 3

273 Ch 7 Which of the following is not a feature of WOP rider? 4

274 Ch 7 1. immediate annuity 2. life annuity 3. deferred annuity 4. joint life annuity 3

275 Ch 7 2

276 Ch 7 The concept of Risk diversification is applicable in which of the following instrument ? 1. Mutual Fund 3. Shares 4. Risk Sharing insurance 1

277 Ch 7 1. Capital Appreciation 2. Capital Profit 3. Capital Benefit 4. Capital Variation 1

278 Ch 7 Which one of the following cannot be covered under Critical illness rider? 1. Blindness 2. Paraplegia 3. Coma 4. Brain Surgery 4

279 Ch 7 2. Life annuity 3. Deferred Annuity 4. Immediate annuity 4

280 Ch 7 3

281 Ch 7 In what situation “Waiting Period” is applicable in a health insurance? 1. Immediate care 2. Medical examinations 3. Pre-existing illness 4. Permanent exclusions 3

282 ch 7 E-sales refers to sales of insurance products through 1. Insurance brokers. 2. Bancassurance. 3. Individual agents. 4. Internet. 4283 ch 7 To avail the income tax benefit at investment stage, premium should be maximum 1. 10% of S1. 2. 20% of SA. 3. 30% of SA. 4. 40% of SA. 2

284 ch 7 The savings needs of a particular individual is majorly determined by 2. Current assets. 3. Current liabilities. 4. Duration of investment. 4

285 ch 7 1. Taxation only. 2. Inflation only. 4. No provision is require4. 3

286 ch 7 1

287 ch 7 4

288 ch 7 1. Equity. 2. Bank fixed deposits. 3. Health insurance plan. 4. Savings insurance plan. 3

289 ch 7 2

290 Ch 7 4

291 Ch 7 Which of the following is not featured and benefit of rider? 2. Maturity benefit 2

292 Ch 7 1.10 lac 2. 20 lac 3.30 lac 4.5 lac 2

293 Ch 7 2

294 Ch 8 2

1. Person receives fixed amt daily for no of days in hospital

2. Person receives an amount equal to the expense.

3. Person receives a fixed amount of 1000 daily.

4. Person receives benefit only if he is hospitalized for 3 days minimum.

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

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. all the expense incurred will be reimbursed by the insurance company

2. Some percentage of the expense will be reimbursed by the insurance company

3. a fixed amount on daily basis is paid by the insurance company

4. The insurance company will pay all the expense only after consulting hospital authority.

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

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

Mr. Ranga has taken Critical Illness Rider. In which of the following scenarios 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. Risk Diversified Insurance

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

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

Mr.Rohith wants to have a health insurance plan for his family and for his aged parents. which will be the best plan for him ?

1. Group Family health insurance plan

2. Family health insurance plan

3. Family floater health insurance plan

4. Family Health benefit plan

1. Amount of disposable income.

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

3. Taxation & inflation both.

Rohit is working as sales manager with an FMCG company. His job requires him to travel across states. He is planning of covering his additional 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.

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.

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

Anand has purchased a pension plan which is nearing completion of accumulation phase. He is in need of finances 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.

Due to some medical problem Neeraj got hospitalized and insurance Company paid him a fixed amount on daily basis, what kind of health Policy he bought it…………?

1. Group health insurance

2.Family floater Insurance Plan

3. Individual health insurance plan

4.Daily hospitalization cash benefit plan

1. Providing additional cover

3. Nominal cost & flexibility

4. Customization and tax benefit.

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:Kajal is investing for the purpose of retirement at the time of vesting Age before receiving the regular annuity she has option to withdraw/commute Upto:

1. 2/3rd of Accumulated Fund

2.1/2th of Accumulated Fund

3.1/3rd of Accumulated Fund

4.1/4th of Accumulated Fund

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

1. Real needs are financial needs and perceived needs are non-financial needs.

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

3. Real needs are identified by the insurance agent and perceived needs are identified by the client.

4. Real needs are needs which satisfy an objective and perceived needs are needs which do not satisfy an objective.

295 Ch 8 1. Young unmarried 2. Young married 3. Young married with Kids 4. Pre retirement 4

296 Ch 8 1. Term Insurance Plan 2. Endowment plan 3. Return of premium plan 4. Pension plan 3

297 Ch 8 1. Marriage. 2. Savings. 3. Education. 4. Protection. 1

298 Ch 8 1. Savings 2. Insurance 4. Planning for pension 3

299 Ch 8 Where one can approach in case of dispute? 1. IRDA 2. Consumer Forum 3. Distric Forum 4. National Forum 2

300 Ch 8 3. Need not to claim 1

301 Ch 8 What is the ceiling of tax exemption under 80 c. 1. 1 lakh 2. 1.5 lakhs 3. 2 lakhs 4. 3 lakhs 1302 Ch 8 What is the limit of tax benefit that can be availed of under Section 80C.? 1. 75K 2. 1L 3. 1.5 L 4. 50K 2

303 Ch 8 1. Health Insurance 2. Family floater 3. Life Insurance 4. Retirement 2

304 Ch 8 1. Rs. 75,000 2. Rs. 1, 10,000 3. Rs. 1, 20,000 4. Rs. 1, 00,000 4

305 Ch 8 A Professional insurance market carries….. 1. Need – Based Selling 1

306 Ch 8 Perceived needs are those…. 1. Short term needs. 4. Long term needs. 3

307 Ch 8 Need analysis involves identifying……… 1

308 Ch 8 The disposable income means...... 1

309 Ch 8 1. high 2. low 3. normal 4. Neutral. 2

310 Ch 8 The younger the age of an individual..............their liabilities will be. 1. the lower 2. the higher 3. the smarter 4. the superior 1

311 Ch 8 1. Pre-retirement stage 2. Post retirement stage 4. Employment stage 1

312 Ch 8 1. Real need 2. Perceived need 3. Imaginary need 4. Important need 2

313 Ch 8 Fact finding enables the insurance advisor to identify the............. 1. clients financial need 1

314 Ch 8 The timing of death is uncertain, so when one should take life insurance? 2. At an early age 3. Anytime in life 2

315 Ch 8 Which are the two primary needs of any customer in any point of life? 3. Investment and savings 2

316 Ch 8 The concept of need based selling involves 3

317 Ch 8 1. High Risk. 2. Low Risk. 3. Moderate Risk. 4. No Risk. 1

318 Ch 8 1. Retirement need. 2. Tax planning need. 3. Financial security need. 4. Asset building nee4. 3

319 Ch 8 3

320 Ch 8 What do you mean by Double Income Family? 2

321 Ch 8 In which of the following case there is no defined retirement age? 4. All of the above 2

322 Ch 8 Which one of the following is true? 2

323 Ch 9 During fact finding, What will be the next step after Identifying clients need 1. Quantify clients need 2. Priorities Clients Need 3. Recommending Product 4. Fill up the proposal form 1

324 Ch 9 3

If a person is concentrating more on health plan and retirement plan then at which stage of life is he in. 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?

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? Mrs. Sheela received some amount out of her husband’s death. In such a situation what will be her prime focus?

3. Investment management

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

1. Need to spend and Get claim from the insurer

2. Need to add that hospital as TPA

4. Need to switch to the another insurer

Mr. Raj is married and having 2 children. Which plan can he take that can cover his whole family? Under section 80C the maximum tax deduction that can be gained for premium paid is _______ in a financial year.

2. Product – Based Selling

3. Commission – Based Selling

4. Company – Based Selling.

2. Imagined to be important by Advisor.

3. Imagined to be important by client.

1. Financial 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. 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 investment

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

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.

3. Married with older children stage

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.............

2. clients personal problems

3. clients hereditary diseases

4. Clients’ social background.

1. At the time of uncertainty

4. At the time when Advisor takes the decision

1. Investment and retirement

2. Investment and Protection

4. Investment and life needs

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.

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

As an adviser why is it essential for you to carry out the financial planning exercise with the prospective clients?

1. Individuals understand their real needs and can prioritize them.

2. Individuals have same financial 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.

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.

1. Public sector employees

2. Private sector employees

3. Professionals & Businessmen

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.

During a fact finding process the need analyzed 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.

1. Do the fact finding exercise again

2. Insist with the client to take a term plan

3. Give a child plan and revisit the client on a later date

4. Give the lead to another agent

325 Ch 9 1. Money Back 2. Term Plan 3. Endowment Plan 4. ULIP 4

326 Ch 9 1. Fact finding 1

327 Ch 9 1. Administrative charge 2. Inflation 3. Interest rate 4. Market Risk 2

328 Ch 9 Which is the best option to manage risk? 1. Retain 2. Transfer 3. Avoid 4. None 2

329 Ch 9 2

330 Ch 9 Which of the following is true regarding Family Floater Health Insurance Plan? 4

331 Ch 9 1. Young Unmarried. 3. Retirement. 4. Children. 3

332 Ch 9 Which type of questioning is very useful to gather information from clients? 3. Interrogative Questions. 4. Clarification Questions. 2

333 Ch 9 During the recommendation stage the advisor needs to...... 1

334 Ch 9 Insurance Protects which of the following? 4. The life of the nominee 3

335 Ch 9 1. Fact Finding Sheet 3. Customer Data sheet 1

336 Ch 9 2. B.KYC document 3

337 Ch 9 3. Client’s business details 4. Client’s business records 1

338 ch 9 2

339 ch 9 The objective of Fact Finding is to 4

340 Ch 9 Objectives of fact-finding do not include- 1. Identify needs 2. Gathering client data 4

341 Ch 9 1. KYC documents 3. Fact-finding sheet 4. Financial details 2

342 Ch 10 4. Should review once again 2

343 Ch 10 1. Pure risk 2. Financial risk 3. Particular risk 4. Physical hazard 3

344 Ch 10 1

345 Ch 10 1. 24 hours 2. 1 day 3. 10 days 4. 30 days 3

346 Ch 10 Naresh is married and his daughter Sneha is 3 years old. Which plan can he take? 1. Term & Children Plan 2. Annuity Plan 3. Whole Life Plan 4. Health Plan 1

347 Ch 10 What is the factor which has influence on persistency? 1. Role of Agent 2. Product Design. 3. Policy Servicing 4. All of the above. 4

348 Ch 10 Agent who is a licensed intermediary is actually is ? 2

349 Ch 10 Which one of the following factor does not help in the Persistency ? 3

350 ch 10 2. Listening skills. 3. Communication skills. 1

351 ch 10 4. Should do nothing. 2

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?

What should an agent do in order to understand the mental state of client in respect to his investments in saving products

2. Consulting the client’s parents

3. Consulting the family of the client

4. Reviewing his existing investments

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

Naveen, aged 32 years, has taken money back plan. He is a teacher by profession. Naveen 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?

1. Yes, as Naveen and Ram are of same age.

2. No, customers needs are different

3. Yes, as both are teachers

4. No, as there is an age difference.

1. A Family Floater Plan is the same as a Individual Plan

2. Only self and spouse can be covered in this plan

3. Any number of people may be covered in this plan.

4. The insurance cover is shared amongst the family members in no fixed Proportion.

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?

2. Young married with children.

1. Closed Ended Questions

2. Open Ended Questions.

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. The life of the person paying compensation

2. The risk retained person 's family

3. The financial goal of the insured

In which of the following an agent will collect the customer’s Personal data, professional data and financial data

2. Advisor Confidential Sheet

4. Personal and financial data sheet

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

3. C. Benefit illustration document

4. D. Client benefit document

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

During 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.

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.

3. Provide for anticipated changes

4.Surrendering the existing policies for selling new one

Which one of the following documents distinguishes between Guaranteed and non-guaranteed benefits?

2. Benefit illustration documents

If the client does not wish to proceed with the recommendations right at the moment the agent should

1. Insist on taking the product right away

2. Should ask for the reason for not going with the recommendation

3. Should ask for a future date from the client

The consequences of these risks which will affect specific individuals or local communities in nature is called as

According to Insurance Brokers Association of India, what is the most appropriate relationship between Insurer and Broker?

1. Insurance broker represent the client and the insurer remunerate the broker

2. The client represent the broker and the insurer remunerate the broker

3. Insurer represent both client and broker remuneration

4. Broker only service the client

What is the stipulated time frame within which an insurer is supposed to respond after receiving any communication from its policyholders?

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

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

After undertaking financial 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.

4. Client information gathering skills.

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 financial planning.

3. Should never approach the client ever again.

352 ch 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

353 ch 10 2

354 Ch 10 1. Income Tax Act 2. Indian Contract Act 3. Insurance Act 1938 4. IRDA Act 1999 3

355 Ch 10 Which one of the following is not a benefit of persistency? 2. Reduction in costs 4. Decreased revenues 4

356 Ch 10 4

357 Ch 10 Why a building long term relationship with clients is necessary? 3

358 Ch 11 1. It was assigned. 2. It was paid up. 3. It was lost. 4. It was surrendered. 3

359 Ch 11 1. It was lost. 2. It was paid up. 3. It was lapsed. 4. It was surrendered. 1

360 Ch 11 Which of the following falls under voidable contract? 1. Misrepresentation 3. Fraud 4. None of the above 1

361 Ch 11 1. Fraudulent claim 2. Indisputability clause 3. Redressal procedure 2

362 Ch 11 Family floater health Insurance plan covers 3. Parents only 4. Children Only 1

363 Ch 11 Who is a regulator, supervisor and monetary authority of the financial system in India? 1. IRDA 2. SEBI 3. RBI 4. SBI 3

364 Ch 11 An individual is said to be competent to enter into a contract if they are 1. 18 year old 2. 21 year old 3. 23 year old 4. 25 year old 1

365 Ch 11 For tax Saving Someone wants to fixed deposit in bank. What duration is required for it? 1. 3 years 2. 5 years 3. 7 years 4. 2 years 2

366 Ch 11 Pure risk is classified under 1. Economic risk 2. Speculative risk 3. Financial risk 4. Insurable risk 4

367 Ch 11 1. Consumer Forum 2. COPA 3. Sebi 4. Life Insurance Council 1

368 Ch 11 1. Less than 10000 2. More than 10000 3. Less than 20000 4. More than 20000 3

369 Ch 11 1. Transfer 2. Control 3. Retaining 4. Avoidance 3

370 Ch 11 What is meant by a claim under insurance policy? 4. All of the above. 2

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

372 Ch 11 Which is the right statement regarding claim enquiry? 1

373 Ch 11 A missing person will be presumed to be dead only after…. 1. Three years 2. Five years. 3. Seven years. 4. Nine years. 3

374 Ch 11 1. Normal death claim 2. Early death claim 3. Abnormal death claim 4. Unnatural death claim 2

375 Ch 11 Detailed Investigation will be triggered in case of...... 1. Maturity claims 2. All death claims 3. Early death claims 4. Rider benefit claims. 3376 Ch 11 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

377 Ch 11 In the process of settling maturity claims.... 2

378 Ch 11 1

379 Ch 11 1. Claim will be rejected 4. Claim will be delayed 1

380 Ch 11 3

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. Financial burden on the couple.

Under which one of the following acts the maximum remuneration that can be given to insurance agents described?

1. Helps the client in achieving goals

3. Increased client satisfaction

Satish 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 recommendation.

4. Should advised him to surrender all the polices which are not buy from satish.

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

2. Reviewing financial 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

A claim was paid in a policy and it was advertised in the newspaper also. This indicates that the policy was. An indemnity bond was signed in a policy when the claim was paid. This indicates that the policy was.

2. Lack of insurable interest

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

4. Pending decision from Ombudsman

1. All members of a Family

2. Husband and Wife only

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 ………………………..

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

Vinay 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 ______

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.

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.

Mr. Chintamani has taken a policy from ABC Company on 2nd March 2010, but unfortunately he died on 18th August 201 His death claim is considered as..........

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.

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 .Unfortunately 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

Mr. sham had taken a term plan in 2008 . He died of cancer in 20 Investigation about his death revealed that he was deducted cancer in 200What will happen to his death claim?

2. Claim will be settled as Cancer was not deducted in 2008

3. Claim will be settled as he died in 2010

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. Unfortunately 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.

381 Ch 11 2

382 ch 11 The agents duties and responsibilities ends 4

383 ch 11 Insurer will not pay the claim unless 3

384 ch 11 3. The claim is fraudulent. 1

385 ch 11 4. There is no nomination. 2

386 Ch 11 4. Policy was subject to lien. 1

387 Ch 11 1. only Sum assured 2.Sum Assured + Bonus 4. Paid up value only. 3

388 Ch 11 2. Critical illness (CI) 3. Hospital Care (HC) 4. Term Rider. 3

389 Ch 11 3. Post Mortem Report. 4.Coroners Report 2

390 Ch 12 If a case is already before the consumer forum, then the ombudsman should 3. Dismiss the case 4. Give an award. 3

391 Ch 12 Indisputability clause can be enforced by the insurance company during the 3. Claim 4. Inception of the policy 2

392 Ch 12 1. Term plan 2. Endowment plan 3. Whole life plan 4. Money back plan. 1

393 Ch 12 What is the major reason for conducting fact finding exercise? 1. Need analysis 3. Introduction of agent 1

394 Ch 12 The guidelines for annual assumed growth rate are given by 1. Life Insurance Council 2. IRDA 3. Actuaries 4. Underwriter 2

395 Ch 12 Pricing element is done by 1. IRDA 2. Insurance Company 3. Life Insurance Council 4. CII 2396 Ch 12 As per AML regulation, it allows cash premium not over than 1. Rs.20000 2. Rs.25000 3. Rs.5000 4. Rs.50000 4397 Ch 12 Which is the not part of KYC norms? 1. Photographs 2. Proof of identity 3. Proof of address. 4. Lapsed policy details. 4

398 Ch 12 Remuneration to Agents includes 1. First Year Commission 2. Renewal Commission. 3. Both of the above. 3

399 Ch 12 1. Layering 2. Placement 3. Integration 4. Amalgamation. 1

400 Ch 12 As per the IRDA circular an insurance agent....... 4. Should not disclose. 3

401 Ch 12 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 1

402 Ch 12 Which one of the section deals with the licensing of an agent? 1

403 Ch 12 1

404 ch 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

405 ch 12 Who has the authority in insurance company to issue/cancel the agents license 1. Insurance Company. 2. Designated Person. 4. Actuary. 2

406 Ch 12 1. Married Woman 2. Married Man 3. Married Son 4. Married Daughter 2

407 Ch 13 3

408 Ch 13 3. Loans facility 4. No benefit 1

409 Ch 13 Ombudsman passes an award within which time 1. 1 month 2. 2 months 3. 3 months 4. 6 months 1

410 Ch 13 Which body has created a call center for logging a complaint 1. Life Insurance Council 2. IRDA 3. Insurance Association 2

411 Ch 13 2. Equal to base cover 4. 50% of SA max. 2

Mr.Sampath has taken a policy on January 10th 2006 for a term of 12 years. Due to financial instability he discontinued to pay the premium from 201 He died on August 13th 201 What will happen to his death claim ?

1. Eligible for claim as the premium was paid from 2006 to Dec 2010.

2. Not eligible for Claim settlement

3. Claim will be settled after deducting the unpaid premium

4. Claim will be settled after the deduction of unpaid loan amount

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.

1. The policyholder makes a demand.

2. The nominee makes a demand.

3. The event insured against happens.

4. The insurer completes the enquiry.

Aman has taken a term plan for 20 years. In the 3rd year he suffered financial crisis due to which he was unable 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.

4. The claim is an early claim.

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.

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

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?

3. Sum assured plus vested bonus minus any outstanding loan/premium & Interest.

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)

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

1. Give a recommendation

2. Give a joint decision with the consumer forum

1. First five years of policy

2. First Two years of policy

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

2. Understand about company

4. Understanding the Customer

4. Salary and Reimbursement.

Which is the 2nd stage in Money Laundering?

1. need not disclose the amount of commission

2. need to disclose the amount of commission

3. need to disclose the amount of commission on demand

4. Paid in lump sum to the survivors.

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

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



4. Need to complete 50 hours of IRDA training and paying Rs.50 for the issuance of duplicate license

3. Branch Operations Team.

Married Woman’s Property Act 1874 provides that a life insurance Policy that has been taken out by:

How the Daily hospitalization cash benefit will provide benefits to policyholder who is hospitalized?

1. Entire charges are refunded.

2. Entire charges less bed charges will be paid

3. A fixed amount on a daily basis is paid irrespective of the actual cost of treatment

4. Only Hospital bill will be paid

If there is no claim in a year than what will be the benefit to the customer as NO CLAIM BONUS

1. Discount in next year premium

2. Increase in Sum Assured next year

4. Insurance Institute of India

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?

1. Needs to take expert’s suggestion

3. Any Amount he can take if he is ready to pay premium


413 Ch 13 1. Childs education 2. Marriage 3. Emergency funds 4. Income protection 4

414 Ch 13 1. 10 days 2. 20days 3. 30 days 4. 60 days 3

415 Ch 13 _____ controls monetary system in India 1. RBI 2. IRDA 3. SEBI 4. Constitution 1

416 Ch 13 1. 74% 2. 26% 3. 24% 4. 76% 2

417 Ch 13 3

418 Ch 13 1. 30 % 2. 35% 3. 40% 4. 45% 2

419 Ch 13 Issuance of a license to a person has been stipulated in................Act 2

420 Ch 13 The foreign direct Investment (FDI) in Indian Insurance Industry is allowed up to..... 1. 50% 2. 25% 3. 26% 4. 27% 3

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

422 Ch 13 Which official body decides to increase the interest rates? 1. Central bank of India 2. Reserve bank of India 3. Reserve bank of country 4. Central bank of country 2

423 Ch 13 Which of the following team represents the members of GBIC ? 1

424 Ch 13 1. Life insurance council 1

425 Ch 13 3

426 Ch 13 3

427 ch 13 4

428 Ch 13 The face of the life Insurance industry in India is ………..? 1. Life Insurance Council 1

429 Ch 13 At what percentage FDI allowed in life Insurance sector by Govt. 1.26% 2.24% 3.74% 4.49% 1

430 Ch 14 4.None applicable 1

431 Ch 14 Group Insurance can be taken in following relationship 1. employee- employer 2. husband-wife 3. family members 4. society members 1432 Ch 14 Maximum time for investigation in disputed claim? 1. 1 month 2. 2 months 3. 3 months 4. 6 months 4

433 Ch 14 1. 50 lakhs 2. 30 lakhs 3. 25 lakhs 4. 20 lakhs 4

434 Ch 14 What amount of insurable interest does an individual have in his own life? 1. 20,000 2. 50,000 4. Unlimited 4

435 Ch 14 1. Term plan. 2. Endowment plan. 3. Money back plan. 4. Wholelife plan. 3

436 Ch 14 De- tarrification is a process by which pricing of Insurance 1. Rises 2. Decreases 4

437 Ch 14 1. Some Specific Insurer 3. All insurer 4. It is optional 3

438 Ch 14 What will be lien amount in 3rd year as compared to the 4th year of lien. 1. It is higher 2. Decrease 3. Slightly higher 4. Slightly lower 2

439 Ch 14 Pooling of insurance applies to 1. all types insurance 3. Only life insurance 4. Only Non-life insurance 1

440 Ch 14 What is the disadvantage to the insurer in case the persistency falls 1. Lower profits 2. Higher profits 3. Increased Liability 4. Decreased Life fund 1

441 Ch 14 3

442 Ch 14 1. Inspection by IRDA 4

443 Ch 14 What is the minimum Sum Assured allowed for Micro Insurance? 1. 5000 2. 10000 3. 15000 4. 20000 1

Insurance companies are required to honor the awards passed by the Insurance Ombudsman within how may days 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.

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?

What is the maximum stake can foreign company has in one insurance company in India?

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.

According to IRDA regulations the maximum percentage of first year commission to be paid to an insurance advisor is.............

1. Section 43 of the Insurance Act 1939




1. Representatives from all insurance companies

2. Representatives from all government bodies

3. Representatives from IRDA

4. Representatives from Insurance institute of India

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 ?

2. Consumer insurance council

3. National Insurance council

4. General insurance council

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 terminated 4. Agent will be qualified for the contest

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 terminated

3. Raghav License will be cancelled

4. Customer will complain to Ombudsman

Which organization was formed with purpose to promote insurance education and training in India?

1. Institute of Actuaries of Indi1.

2. National Insurance Academy.

3. Chartered Insurance Institute.

4. Insurance Institute of India.

2. Life Insurance Corporation

3. Insurance Regulatory Development Authority

4.Insurance Institute of India

If a policy holder buys a policy from the advisor and lodges a complaint, it should be treated as :

1. Same for all policies sold by advisor

2. Same for all policies sold by the advisor except corporate clients

3.Only for policy for which complaint has been given

The Ombudsman’s powers are restricted to insurance contracts of value not exceeding?

3. Up to the sum assured taken in the plan

Harsh’s 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

3. Reaches at a level as per industry trends

4. Insurance can price their product on their self past experiences.

As per Regulation for protection of Policyholder’s interest 2002 (IRDA), Which insurer will have a grievance redressal System

2. Those Insurer who did not created Insurance Ombudsman System

2. All types of insurance except Motor insurance

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?

1. The entire fund can be withdrawn

2. Only half of the fund can be withdrawn

3. Only one third of the fund can be withdrawn

4. Only one fourth of the fund can be withdrawn

AML Program of every insurer to include _______________, apart from Procedure, Training and audit.

2. Audit by Finance Ministry

3. Appointment of Principal Compliance Officer

4. Inspection by Auditor General

444 Ch 14 Where would you have to go if you wanted to buy a Kisan Vikas Patra? 1. Any Nationalized Bank 2. Insurance Company 3. Post Office 4. Mutual Fund Company 3

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

446 Ch 14 3

447 Ch 14 The insurance ombudsman has been appointed to protect the interest of....... 1. policyholders 2. shareholders 3. insurers 4. General insurers. 1

448 Ch 14 1. IRDA 2. Agents 3. Shareholders 4. Underwriters 2

449 Ch 14 Which regulations take care of the settlement of claims ? 1

450 Ch 14 1. Nodal officer 2. Grievance call center 3. Compliance cell 4. Compliance officer 1

451 Ch 14 3. Ombudsman Regulation 4. Compliance Regulatory 2

452 Ch 14 1. 10 Days. 2. 15 days. 3. 20 Days. 4. 30 Days. 1

453 Ch 14 To ensure that the customers complaints are handled effectively, IRDA has established 4

454 Ch 14 1.15 Days 2.20 Days 3.25 Days 4.10 Days 1

455 Ch 14 1.15 2.12 3.14 4.16 2

456 Ch 15 3. Pass on to the superior 1

457 Ch 15 2. Brochure 1

458 Ch 15 Under the hospital care rider what is the payout made 4. 100% of Sum Assured 2

459 Ch 15 1. Nil 2. 10% 3. 20% 4. 30% 1

460 Ch 15 When can an insurance company give more than 35% first year commission? 1

461 Ch 15 A person suffering from lung cancer is a smoker. Here smoking can be termed as 1. Peril 2. Hazard 3. Risk 4. Uncertainty 3

462 Ch 15 Which of the following is a Non Standard Age Proof 1. PAN Card 3

463 Ch 15 1. 2015 2. 2014 3. 2013 4. 2017 1

464 Ch 15 1. Switching 2. Churning 3. Redirecting. 4. Shifting. 2

465 Ch 15 Ethics can be defined as… 4. All of the above. 4

466 Ch 15 Which is not unethical behavior in below statements? 4. Churning. 3

467 Ch 15 For an insurance advisor churning is.............practice 1. good 2. bad 3. compulsory 4. appreciable 2

468 Ch 15 1. ethical 2. unethical 3. professional 4. Perfect. 2

469 Ch 15 The code of conduct has been prescribed in India by........... 1. IRDA 2. Insurance Council 4. Government of India. 1

470 Ch 15 1. Churning of the policy 3. Switching the policy 4. Claiming the policy 1

471 ch 15 3

472 ch 15 2. Churning. 3

473 Ch 15 1. Life Insurance Council 1

What the name 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)

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

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

If any consumer is dissatisfied with the customer care cell of any insurance company to whom they can escalate their grievances. 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

A client demands the information on the current status of a policy indicating accrued bonus. The insurer should provide communication within

1. Integrated Grievance Management System.

2. Internal Grievance Redressal Cell of the Insurer.

3. Grievance Redressal Officer.

4. Consumer Affairs Department.

If policy holder is not satisfy with term and condition the policy which She/he has received, then has option to return policy with in……..?How Many offices of Ombudsmen the Government body has set up to Resolving insured customer’s grievances. 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 ?

1. Enquire about the refusal from the client

2. Suggest an alternative plan

4. Pass on to the other agent

According to IRDA agent’s code of conduct, what is the best method of showing the amount of commission earned by the advisor

1. Signed copy of sales illustration

3.Hand written declaration by agent

4.Verbal communication to customer

1. 10% of the sum assured

2. Specified amount multiplied by the number of days the policyholder is hospitalized

3. expenses incurred per day multiplied by no. of days stay in the hospital

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

1. When the insurance company is in the first 10 years of operation

2. If the agent has worked with the company for more than 5 years

3. If the agent has worked with the company for more than 10 years

4. If the agent is doing more than 3 policies in a month.

2. Certificate of Baptism 3. Certificate from Village Panchayat

4. Certificate from School or College

License of an agent was withdrawn in June 2010 due to malpractice. He can reapply for his license in 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. 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.

1. Over selling of Insurance policies.

2. Under selling of Insurance policies.

3. Explaining all details of the policy to customer.

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............


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 ?

2. Surrendering the policy

Rahul 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.

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.

3. Overselling of insurance policies.

4. Ethical practice by an adviser.

For Insurance industry which association to take steps to Develop Education and research in insurance?

2. Life Insurance Corporation

3. Insurance institute of India


474 Ch 15 Pankaj being a license insurance advisor has to follow code of Conduct provided by: 3. Reserve Bank of India 4. SEBI. 11. Insurance Regulatory Development Authority

2. Life Insurance Company

Sample Paper irda exam

Documents

Transcript of Sample Paper irda exam