Question

(1)

4 1 Correct Answer 4 2 2 1 3 2 2 2 Question

Q1. 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.

4. Profiting from insurance.

Q2. 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. 60000 2. 7500 0 3.10000 0 4. 5000

Q3. The business of Insurance is connected with ...

1. physical values of assets

2. economic values of assets

3. metaphysical values of assets

4. market values of assets

Q4. 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?

1. 213333 & 273333

2. 213333 & 229333

3. 229333 & 273333

4. 229333 & 293333

Q5. Under the IRDA guidelines for Claim settlement, any queries or additional documents can asked from the claimant within

1. 5 days from the receipt

Q6. Ombudsman has to give his decision within how many days?

1. 15 Days

2. 30 Days

3. 2 Months

4. 3 Months

Q7. Pooling of risk in insurance means

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

Q8. 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.

1. 8000

2. 8320

3. 9456

4. 9240

Q9. What are the factors involved in calculating Surrender Value of the Policy?

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2 2 3 4 1 1 2 1 1

2. Number of premiums payable.

3. Sum Assured

4. All of the above.

Q10. 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?

1. Rs. 2500/

2. Rs. 25000/

3. Rs. 250000/

4. Rs. 5000/-

Q11. In an insurance contract 'consideraton' means ...

1. proposal form

2. Advisors confidential report

3. premium

4. claim

Q12. Where do you not find insurable interest in the following options ...

1. surety-co surety

2. employee-employer

3. husband-wife

4. brother-sister

Q13. Which of the following statements in correct in connection with assignment?

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.

Q14. Life Insurance also known as:

1. Value Contract.

2. Indemnity

3. Commercial Contract

4. Speculative

Q15. 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:

1. Nominee only

2. Legal heir of the life assured

3. Appointee Only

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

Q16. Agent will be called as ...

1. Primary Underwriter

2. Main Underwriter

3. Chief Underwriter.

4. Information Underwriter.

Q17. When an illiterate person wants to have a policy ...

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

attest it

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

attest it

3. an impression of the left thumb is sufficient and need not be

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3

4. A relative of the illiterate person has to sign on behalf of that

illiterate person.

Q18. 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

Q19. Ram Lal is an insurance policyholder. He has recently shifted his home from New Delhi to Noida. He wants the address to be changed. This change in policy document will be effective through?

1. Terms & Condition.

2. Preamble.

3. Endorsement.

4. Schedule.

Q20. 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

Q21. 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

Q22. In case of life insurance, Insurable interest must exist

1. At inception of policy

2. Not needed

3. At the time of claim

4. Any time during the contract

Q23. 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

1. 2011

2. 2012

3. 2013

4. 2014

Q24. 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

1. Endowment plan

2. ROP plan

3. Whole life plan

4. Ulip

Q25. Bank interest is accumulated

1. Monthly

2. Yearly

3. Quarterly

4. Once in 6 months

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4 4 3 3 3 4 1 1

informed clearly about the tenure, interest rate and method of payment of interest at the inception of the investment itself. His investment may be in ...

1. Life Insurance

2. Mutual fund

3. Shares

4. Bank deposits

Q27. 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

Q28. 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.

Q29. While calculating the expected returns from investments and savings, an individual should make provisions for

1. Taxation only.

2. Inflation only.

3. Taxation & inflation both.

4. No provision is require4.

Q30. The life expectancy in India is constantly improving and is well above 60 years. This also brings along challenges.

These challenges can be covered through

1. Equity.

2. Bank fixed deposits.

3. Health insurance plan.

4. Savings insurance plan.

Q31. If a person is concentrating more on health plan and retirement plan then at which stage of life is he in.

1. Young unmarried

2. Young married

3. Young married with Kids

4. Pre retirement

Q32. 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?

1. Marriage.

2. Savings.

3. Education.

4. Protection.

Q33. Mr. Ramachandra's son Mr. Bharat has just employed as a software engineer, daughter Anusha has got married. Now Mr. Ramachandra is free from his burden. So Mr.

Ramachandra is now in the ... stage.

1. Pre-retirement stage

2. Post retirement stage

3. Married with older children stage

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5 Q34. During the recommendation stage the advisor needs to ...

1. recommend the products that best meet the client's needs

2. recommend to wait some days to invest

3. recommend the new product the company has recently

launched

4. Recommend to take his own time to take a decision.

Q35. 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.

Q36. The consequences of these risks which will affect specific individuals or local communities in nature is called as

1. Pure risk

2. Financial risk

3. Particular risk

4. Physical hazard

Q37. Agent who is a licensed intermediary is actually is ?

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

2. B.A legal person to act on behalf of the insurer

3. C.A legal person to act on behalf of the contract

4. D. An authorized agent to act on behalf of the legal company

Q38. 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.

4. Should do nothing.

Q39. 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.

Q40. Who is a regulator, supervisor and monetary authority of the financial system in India?

1. IRDA

2. SEBI

3. RBI

4. SBI

Q41. 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

1. Consumer Forum

2. COPA

3. Sebi

4. Life Insurance Council

Q42. What is meant by a claim under insurance policy?

1. A demand to fulfill the policyholder's obligations.

2. A demand to fulfill the insurer's obligations.

3. Any demand made by the policyholder on the insurer.

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2 6 2 3 3 1 2 3 4

Q43. 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

Q44. Indisputability clause can be enforced by the insurance company during the

1. First five years of policy

2. First Two years of policy

3. Claim

4. Inception of the policy

Q45. The foreign direct Investment (FDI) in Indian Insurance Industry is allowed up to ...

1. 0.5

2. 0.25

3. 0.26

4. 0.27

Q46. The Insurance Institute of India (III) was formed in

1. 1956

2. 1999

3. 1955

4. 1947

Q47. What is the minimum Sum Assured allowed for Micro Insurance?

1. 5000

2.10000 3.15000

4. 20000

Q48. How Many offices of Ombudsmen the Government body has set up to Resolving insured customer's grievances.

1. 15

2. 12

3. 14

4. 16

Q49. Which of the following is a Non Standard Age Proof

1. PAN Card

2. Certificate of Baptism

3. Certificate from Village Panchayat

4. Certificate from School or College

Q50. Ethics can be defined as...

1. Those values we commonly hold to be "good" and "right".

2. Behavior that is based upon the moral judgments of an

individual

3. A study of what makes one's own actions right or wrong.

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Correct Answer 4 3 4 1 2 2 3 2 3 Questions

Q1. The concept of indemnity is based on the key principle that policyholders should be prevented from

Q2. For assessing the risk of a group health insurance policy, which of the following information is the most critical

1. Group lifestyle

2. Employees

3. Age of the group

4. Medical history of group

Q3. In Insurance terms, pooling of risk is

1. Using the same pool for paying claims of car & life insurance.

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

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

4. Using the same pool for paying claims of life insurance.

Q4. 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. Joint life policy

2. Not Possible

3. 2.11805555555556

4. Not Applicable

Q5. Health insurance rider and critical illness rider in classified under

1. Life and non life respectively

2. Both life insurance

3. Both non life insurance

4. Nonlife and life respectively.

Q6. Ombudsman has to give his decision within how many days?

1. 15 Days

2. 30 Days

3. 2 Months

4. 3 Months

Q7. Both the parties to a contract must agree and understand the same thing and in the same sense which is called

1. Consideration.

2. Legality of an object.

3. Consensus ad idem.

4. Acceptance.

Q8. 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?

1. National Commission

2. District Level

3. State Level

4. Mandal Level

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1 2 2 2 1 2

Hence actual quarterly premium will be

1. 7680

2.9320 3.8320 4. 6600

Q10. Which of the following statements in correct in connection with assignment?

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.

Q11. 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

Q12. 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

Q13. How assignment distinguishes itself from nomination?

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.

Q14. Which clause lays down the mutual obligation of the parties regarding, Payment of Premium by Life assured & payment of Sum Assured by

1. Lien Clause

2. Opertaive Clause

3. Proviso Clause

4. Schedule of Policy

Q15. 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:

1. Nominee only

2. Legal heir of the life assured

3. Appointee Only

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Q16. In a case, the underwriter felt that the risk associated with

the person would decrease with time, then he would accept 2

the case with

1. A clause

2. A Lien

3. A Loading

4. Level Premium

Q17. Age proof submitted from Village Panchayat is: 2

1. Standard and accepted

2. Not standard but accept

3. Not at all accepted

4. Accepted with SSLC book/mark list

Q18. Moral Hazard reflects the ... ... 1

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.

Q19. To explain the benefits of a product, the insurance adviser should

1. Provide the product brochure to the client.

2. Provide Benefit illustration documents to client.

3. Provide the terms and conditions document to the client.

4. Provide the website address to the client.

Q20. The two basic elements of most life insurance plans are 3

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.

Q21. Mr. Shanth has got a pure endowment policy for 30 years for ^ the sum assured of Rs. 75,000,00/-. It can be paid to him ...

1. when he dies

2. when he survives the term

3. when he is hospitalized

4. when he loses his job

Q22. An investor holds a wide range of shares. If the Reserve Bank

of India announces a series of significant interest rate 2

increases, the prices of these shares are most likely to

1. Become volatile

2. Decrease

3. Increase

4. Remain unchanged

Q23. Mr. Denny is married and has 2 children and his parents are

alive. He has taken a family floater plan. Under the plan who 4

all will be covered.

1. Denny

2. Denny and his wife

3. Denny, his wife and children

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

Q24. Bank interest is accumulated

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1. Monthly

2. Yearly

3. Quarterly

4. Once in 6 months

Q25. 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 4

investment may be in ...

1. Life Insurance

2. Mutual fund

3. Shares

4. Bank deposits

Q26. Mukesh buys shares at lower price and sold at higher price, 2

the Difference between the two prices is known as:

2

1. Dividend Income

2. Captial Appreciation

3. Bonus Share

4. Interest on share

Q27. A lump sum withdrawal allowed as commutation in pension

plans is 1

1. 1/3rd of the accumulation fund

2. 1/4th of the accumulation fund

3. 1/2nd of the accumulation fund

4. Full withdrawal is allowed

Q28. 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 1

and suggested that he surrenders the existing policy and buys a new one. This is an example of

1. Churning

2. Proposing

3. Underwriting

4. Switching

Q29. Mr. Ranga has taken Critical Illness Rider. In which of the

following scenarios the insurance company will pay him ...

... 2

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.

Q30. Kajal is investing for the purpose of retirement at the time of

vesting Age before receiving the regular annuity she has 2

option to withdraw/commute Upto:

1. 2/3rd of Accumulated Fund

2. 1/2th of Accumulated Fund

3. 1/3rd of Accumulated Fund

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1 2

3

Q31. Health insurance policy holder takes treatment in a hospital

which doesn't have cashless facility. How the policy holder 1

will get benefited

1. Need to spend and Get claim from the insurer

2. Need to add that hospital as TPA

3. Need not to claim

4. Need to switch to the another insurer

Q32. Perceived needs are those.... 3

1. Short term needs.

2. Imagined to be important by Advisor.

3. Imagined to be important by client.

4. Long term needs.

Q33. Need analysis involves identifying ... ... 1

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.

Q34. 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

3

same?

1. Fact Finding document

2. B.KYC document

3. Benefit illustration document

4. Client benefit document

Q35. Which one of the following documents distinguishes between Guaranteed and non-guaranteed benefits?

1. KYC documents

2. Benefit illustration documents

3. Fact-finding sheet

4. Financial details

Q36. 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

4. Should review once again

Q37. The consequences of these risks which will affect specific individuals or local communities in nature is called as

1. Pure risk

2. Financial risk

3. Particular risk

4. Physical hazard

Q38. Naresh is married and his daughter Sneha is 3 years old. Which plan can he take?

1. Term & Children Plan

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2

3. Whole Life Plan

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Q39. 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.

Q40. An indemnity bond was signed in a policy when the claim was paid. This indicates that the policy was.

1. It was lost.

2. It was paid up.

3. It was lapsed.

4. It was surrendered.

Q41. 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

1. Fraudulent claim

2. Indisputability clause

3. Redressal procedure

4. Pending decision from Ombudsman

Q42. Insurer will not pay the claim unless 3

1. The policyholder makes a demand.

2. The nominee makes a demand.

3. The event insured against happens.

4. The insurer completes the enquiry.

Q43. Which one of the following report is not considered in case of

Pankaj Bought a plan in 2009 & died in road accident in 2011 2

1. Policy first information report.

2. Advisor confidential report

3. Post Mortem Report.

4. Coroners Report

Q44. Which is the 2nd stage in Money Laundering? 1

1. Layering

2. Placement

3. Integration

4. Amalgamation.

Q45. What is the maximum stake can foreign company has in one insurance company in India?

1. 0.74

2. 0.26

3. 0.24

4. 0.76

Q46. Which organization was formed with purpose to promote ^

insurance education and training in India?

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4

2. National Insurance Academy.

3. Chartered Insurance Institute.

4. Insurance Institute of India.

Q47. 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

Q48. 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

Q49. When can an insurance company give more than 35% first

year commission? 1

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.

Q50. Rahul is a licensed insurance agent. As agent he must carry ^

out his role in accordance with 3

1. Company's code of conduct.

2. IRDA Acts code of conduct.

3. IRDA Regulations code of conduct.

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(16)

2 Correct Answer 3 4 2 2 3 3 2 Question

Q1. Which of the following do not include the channel of indirect

marketing?

1. individual agents

2. bancassurance

3. insurance brokers

4. through internet

Q2. In Insurance terms, pooling of risk is

Q3. Amit is looking for term insurance plan for protection of his

family, he is advised to approach to:

1. Property Insurance

2. Life Insurance

3. Health Insurance

4. Liabilty Insurance

Q4. According to insurance terminology which of the following is

correct?

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.

Q5. Under the IRDA guidelines for Claim settlement, any queries

or additional documents can asked from the claimant within

Q6. Which of the following can be an example of moral hazard?

1. a family history of heart disease

2. a person working in a chemical factory

3. a person consuming alcohol

4. A teacher working in a primary school.

Q7. Life insurance is the most important for which age group

1. Young

2. Pre- retirement

3. Retirement

4. children

Q8. 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.

1. 8000

2. 8320

3. 9456

(17)

1 1 2 3 3 3 1

Q9. If bonus is given under a plan the additional premium added

is known as

1. Loading

2. Investment

3. Frequency

4. Interest

Q10. 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?

1. Rs. 2500/

2. Rs. 25000/

3. Rs. 250000/

4. Rs. 5000/-

Q11. In an insurance contract the insurable interest needs to be at the time of

1. claim

2. revival

3. inception

4. surrender

Q12. In an insurance contract 'consideraton' means ...

1. proposal form

3. premium

4. claim

Q13. The principle of utmost good faith applies to ...

1. only insurers

2. only proposer

3. both insurers and proposer

4. neither insures nor proposer

Q14. Shamsher has a health insurance policy of ' 1, 00,000

individually and from his company for ' 2, 00,000. He falls sick and got hospitalized. His hospital bill ran to ' 50,000. He claimed this amount from his individual policy. Also, he placed the request with his company for group policy claim, which was rejected. The reason for rejection is.

1. Indemnity contract.

2. Value contract.

3. Deemed contract.

4. Rolling contract.

Q15. Rakesh has bought an Endowment, Money back, Term &

Annuity Plan he would like to avail Loan from:

1. Endowment Plan

2. Term Plan

3. Money Back Plan

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Q16. Q17. Q18. Q19. Q20. Q21. Q22.

What is the limit of tax benefit that can be availed of under

4

Section 80C? 50,000/

1. 15,000/

2. 10,000/

3. 100,000/Which of the following information does not appear in the First

Premium Receipt? 2

1. method and frequency of premium payment

2. Date of commencement of last premium

3. Date the policy matures

4. Date the last premium will be paid

Mr.Feroz has applied for an insurance cover of Rs.4 crores.

The Company will accept or reject the proposal only after 4

confirming from one of the following agencies.

1. Financial Inspection agencies

2. Specialized inspection agencies

3. Credit worth inspection agencies

4. Insurance Investigation Agencies

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. 4

The insurers rejected the claim.What is the reason for rejection?

1. Innocent misrepresentation.

2. Fraudulent misrepresentation.

3. Concealment.

4. Non-Disclosure.

The client of reinsurer are 1

1. Insurance companies

2. Banks

3. Asset Management Companies

4. Brokers

Payment/Investments in Kishan Vikash Patra under post

office schemes is done 3

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

What is the advantage of converting physical gold assets to

gold ETFs. 1

1. Liquidity

2. More gold in value

3. Purity

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Q23. Q24. Q25. 2 Q26. ₂ Q27. ₂ Q28. ₃ Q29. 1

After maturity In a Unit Linked Life Insurance Policy, customer does not get received Maturity in a lump sum.

2

What is the possibility of receiving it in installments if it is 2

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 1

customer from Feb which year

1. 2011

2. 2012

3. 2013

4. 2014

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

1. Endowment plan

2. ROP plan

3. Whole life plan

4. Ulip

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

1. Likely to increase.

2. Likely to decrease.

3. Will fluctuate.

4. No change is likely.

In Cumulative bank deposit the interest that in normally compounded on what basis.

1. Monthly

2. Quarterly

3. Half Yearly

4. Annually

In case of a term plan the maximum premium of the accidental rider can be.

1. 100% of basic premium.

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

1. Capital Appreciation

2. Capital Profit

3. Capital Benefit

(20)

(21)

Q30. ₃ 3 Q31. ₂ Q32. 3 Q33. 2 Q34. 2 Q35. ₁ Q36.

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

1. Taxation only.

2. Inflation only.

3. Taxation & inflation both.

4. No provision is require4.

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. Perceived needs are those....

1. Short term needs.

2. Imagined to be important by Advisor.

3. Imagined to be important by client.

4. Long term needs.

What do you mean by Double Income Family?

1. When a person of the family is involved in double businesses or

jobs.

2. When both the life partners are earning members of the family.

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

another family.

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

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

1. Administrative charge

2. Inflation

3. Interest rate

4. Market Risk

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

1. Fact Finding Sheet

2. Advisor Confidential Sheet

3. Customer Data sheet

4. Personal and financial data sheet

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

1. 24 hours

2. 1 day

3. 10 days

(22)

Q37. Q44. Q38. Q39. Q40. Q41. 1 Q42. ₃ Q43.

What is the factor which has influence on persistency? 4

1. Role of Agent

2. Product Design.

3. Policy Servicing

Agent who is a licensed intermediary is actually is ? 2

Why a building long term relationship with clients is

necessary? 3

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

Which of the following falls under voidable contract? 1

1. Misrepresentation

2. Lack of insurable interest

3. Fraud

4. None of the above

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

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

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

to some Financial problem, so he rather than surrendering 1

the policy, what Option he has to convert ... ?

1. In to paid up and reduced Sum Assured would be payable on maturity.

2. Return of Premium on maturity

3. Deduct the underpaid premium from Sum assured and payable on Maturity

4. Policy was subject to lien.

Married Woman's Property Act 1874 provides that a life

insurance Policy that has been taken out by: 2

1. Married Woman

2. Married Man

(23)

2 Q45. 4. Married Daughter

(24)

2 Q46. Q46. Q47. Q48. Q49. Q50.

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

3. Loans facility

4. No benefit

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

1. 0.74

2. 0.26

3. 0.24

4. 0.76

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 2

policy documents.

1. Policyholder grievance Regulation

2. Policyholder's Protection regulation

3. Ombudsman Regulation

4. Compliance Regulatory

A client demands the information on the current status of a

policy indicating accrued bonus. The insurer should provide 1

communication within

1. 10 Days.

2. 15 days.

3. 20 Days.

4. 30 Days.

Ethics can be defined as... 4

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.

The code of conduct has been prescribed in India by ... 1

1. IRDA

2. Insurance Council

3. Insurance Institute of India

(25)

Q1. In term insurance if Critical illness rider claim happens then what will happen to existing policy

1. CI benefit will cease

2. CI benefit reduced from existing sum assured

3. CI benefit continues

4. No change in policy.

Q2. The concept of indemnity is based on the key principle that policyholders should be prevented from

Q3. A contract comes into existence when...

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.

Q4. 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. Joint life policy

2. Not Possible

3. 2.11805555555556

4. Not Applicable

Q5. Under the IRDA guidelines for Claim settlement, any queries or additional documents can asked from the claimant within

Q6. which of the following refres to specific event which might cause a loss ...

1. Peril

2. Hazard

3. Physical hazards

4. Uncertinity

Q7. Principle of utmost good faith will operate in existing policy

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.

Q8. In case of a term plan the maximum premium of the accidental rider can be.

(26)

(27)

1 2 2 3 1 1 1 1

Q9. 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

Q10. What are the different types of Assignments?

1. Full Assignment and Partial Assignment

2. Conditional and Absolute Assignment.

3. Life Assignment and General Assignment.

4. Standard Assignment and Non-Standard Assignment.

Q11. In an insurance contract 'consideraton' means ...

1. proposal form

3. premium

4. claim

Q12. 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.

2. Value contract.

3. Deemed contract.

4. Rolling contract.

Q13. Rakesh has bought an Endowment, Money back, Term & Annuity Plan he would like to avail Loan from:

1. Endowment Plan

2. Term Plan

3. Money Back Plan

4. Annuity Plan

Q14. Life Insurance also known as:

1. Value Contract.

2. Indemnity

3. Commercial Contract

4. Speculative

Q15. Parvesh bought a policy an endowment plan but after one year insurer. Found he had Aorta Surgery .now which will apply by insurer:

1. Indisputability Clause (Section 45) apply

2. Principal of Indemnity apply

3. Lien Clause

4. Utmost good faith apply

Q16. For an insurance agent, a low persistency ratio means :

1. Loss of renewal commission

2. High client satisfaction

3. Higher reputation

(28)

Q17. Q18. Q19. Q20. Q21. Q22. Q23. Q24.

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

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

Manish being a sole earning member of his family not insured

himself But looking for insurance for his son who is student .there 2

is possibility of

1. Physical Hazard

2. Moral Hazard

3. Medical

4. No underwriting

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

it 3

1. Bank

2. Insurance Company

3. Post Office

4. Share Market

The two basic elements of most life insurance plans are 3

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.

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

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.

What is the similarity between Recurring Deposits & cumulative deposits in a bank 1

1. Guarantees

2. Taxation

3. Tenure

4. Lock in periods

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

1. Operative clause

2. Attestation

3. Information statement

(29)

(30)

Q32. Q25. ₁ Q26. Q27. Q28. Q31.

If a policy with premium of Rs 5000 has matured, how much will be deducted when the maturity claim arises

1. Nil

2. 0.01

3. 0.05

4. 0.1

In which of the following Bank pays the Interest on the deposit's

fund on monthly /quarterly /half yearly/ yearly basis as chosen by 3 depositor fund:

1. Saving Deposit

2. Cumlative deposit

3. Traditional Deposit

4. Fixed Deposit

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

the proposal must be conveyed to the proposer within 1

1. 15 days of receiving the proposal

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

2 year. 1. 2013 2.2015 3.2017 4. 2020

Where one can approach in case of dispute? 2

1. IRDA

2. Consumer Forum

3. Distric Forum

4. National Forum

Health insurance policy holder takes treatment in a hospital which doesn't have

cashless facility. How the policy holder will get 1

benefited

1. Need to spend and Get claim from the insurer

2. Need to add that hospital as TPA

3. Need not to claim

4. Need to switch to the another insurer

Q29.

3

Q30. ₂

In case of a term plan the maximum premium of the accidental rider can be.

1. 100% of basic premium. 2. 50% of basic premium. 3. 30% of basic premium. 4. 35% of basic premium.

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.

(31)

(32)

3 Q40. Q34. ₂ Q35. 4 Q36. 3 Q37. ₂ Q38. 1 Q39. 2

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

1. Administrative charge

2. Inflation

3. Interest rate

4. Market Risk

The objective of Fact Finding is to

1. Gather Clients Information only.

2. Identify only the client's needs.

3. To provide solution of company's choice.

4. Both identify clients' needs & gather information.

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

1. 24 hours

2. 1 day

3. 10 days

4. 30 days

When client declines the recommendation by the insurance adviser even after resolving the concerns, the adviser should

2. Should ask for reference who might be interested in financial planning.

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.

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.

Who is a regulator, supervisor and monetary authority of the financial system in India?

1. IRDA

2. SEBI

3. RBI

4. SBI

Q33. _{The younger the age of an individual.} .their liabilities will be. 1 1. the lower

2. the higher 3. the smarter 4. the superior

(33)

3 Q41. Q42. 1 Q43. 3 Q44. ₃ Q45. ₂ Q46. 2 Q47. 1

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. Transfer

2. Control

3. Retaining

4. Avoidance

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?

1. Claim will be rejected

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

3. Claim will be settled as he died in 2010

4. Claim will be delayed

Under what kind of Rider the insurance company pays the treatment cost in the event of hospitalization of the insured, subject to term & Condition of the rider.

1. Accidental death benefit (ADB)

2. Critical illness (CI)

3. Hospital Care (HC)

4. Term Rider.

If a case is already before the consumer forum, then the ombudsman should

1. Give a recommendation

2. Give a joint decision with the consumer forum

3. Dismiss the case

4. Give an award.

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

1. Section 43 of the Insurance Act 1939

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

Pooling of insurance applies to

1. all types insurance

2. All types of insurance except Motor insurance

3. Only life insurance

(34)

Q48. 3 1 Q49. 3 Q50.

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

Shankar, an adviser, sold a term insurance policy and unit-linked insurance policy (ULIP) to Amar, the client, who is unmarried and has no dependent. Consequently, Shankar's action can be termed as

1. Underselling of insurance policies.

2. Churning.

3. Overselling of insurance policies.

4. Ethical practice by an adviser.

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

2. Life Insurance Corporation

3. Insurance institute of India

(35)

(36)

Q1. The Ombudsman's powers are restricted to insurance contracts of what value?

1. 1Lakh

2. 10 Lakhs

3. 15Lakhs

4. 20 Lakhs

Q2. Which of the following do not include the channel of indirect marketing?

1. individual agents

2. bancassurance

3. insurance brokers

4. through internet

Q3. Life insurance company determine the level of risk based on

1. Future expenses.

2. Claim experiences.

3. Present expenses.

4. Targeted bonus rates.

Q4. 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

3. As directed by actuary

4. As per company policy

Q5. What is the main objective of taking the life insurance policy?

1. Tax benefit

2. Savings

3. Investment

4. Protection

Q6. Grouping the similar risks by Insurance Company is called as....

1. Grouping of Risk

2. Risk Grading

3. Risk Assessment

4. Pooling of Risk

Q7. In a life insurance policy it is later found that the person doesn't have insurable interest then the contract is

1. expired

2. reviewed

3. Void

4. Valid

Q8. Life insurance is the most important for which age group

1. Young

2. Pre- retirement

3. Retirement

(37)

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

Mr.Akash filled the proposal form but before submitting to the company he discussed with the agent that he is not sure whether he can pay for 15 years . This attitude affects which part of the contract?

1. Consideration in the contract

2. Capacity to contract

3. Consensus ad idem

4. Offer and Acceptance in the contract

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

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.

What key event is most likely to make an insurance contract not a valid contract?

1. The circumstances are legitimate.

2. Representation of facts by the policyholders is true.

3. The life assured is major.

4. There is no insurable interest attached to the policy.

On foreclosure, if Death claim arises before the payment of the surrender value, the payment would be payable to:

1. Nominee

2. Legal heir of life Assured

3. Debotrs

4. forfeited the Premium

Jyoti is submitting is copy of permanents account number card as age proof for buying an money back plan .her age consider as a

1. Non Standard Age Proof

2. Standard Age proof

3. an Address proof

4. Proof of Income tax payer

With reference to the principle of indemnity a life insurance policy is a.

1. Insurance contract.

3. Value contract.

4. Major life contract.

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

(38)

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

1. Provide the product brochure to the client.

2. Provide Benefit illustration documents to client.

3. Provide the terms and conditions document to the client.

4. Provide the website address to the client.

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

1. Gross Premium

2. Level Premium

3. Risk Premium

4. Net Premium

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

What is the similarity between Recurring Deposits & cumulative deposits in a bank

1. Guarantees

2. Taxation

3. Tenure

4. Lock in periods

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

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

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

1. 2011

2. 2012

3. 2013

4. 2014

Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this amount for his daughter's marriage which is going to happen with in Nine months. He would like to get some returns from this money in these 9 months period. What is the best option to park his money?

1. Insurance

2. Shares

3. Fixed Deposit in Bank

(39)

National insurance academy has the following main functions

1. Calculating premium

2. Interact with the government

3. Training

4. Mortality assumptions

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

1. Critical Illness Rider

2. Hospitalization Care Rider

3. Accidental Benefit Rider

4. Surgical Care Rider

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

1. immediate annuity

2. life annuity

3. deferred annuity

4. joint life annuity

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

1. Capital Appreciation

2. Capital Profit

3. Capital Benefit

4. Capital Variation

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?

1. Term Insurance Plan

2. Endowment plan

3. Return of premium plan

4. Pension plan

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.

What do you mean by Double Income Family?

1. When a person of the family is involved in double businesses or jobs.

2. When both the life partners are earning members of the family.

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

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

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

1. Fact Finding Sheet

2. Advisor Confidential Sheet

3. Customer Data sheet

4. Personal and financial data sheet

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.

(40)

Agent who is a licensed intermediary is actually is ?

When client declines the recommendation by the insurance adviser even after resolving the concerns, the adviser should

2. Should ask for reference who might be interested in financial planning.

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. Income Tax Act

2. Indian Contract Act

3. Insurance Act 1938

4. IRDA Act 1999

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

1. Consumer Forum

2. COPA

3. Sebi

(41)

2 3 3 2 1 2 1 3

Q41. 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. Transfer

2. Control

3. Retaining

4. Avoidance

Q42. 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.

Q43. Which one of the following report is not considered in case of Pankaj Bought a plan in 2009 & died in road accident in 2011 :

1. Policy first information report.

2. Advisor confidential report

3. Post Mortem Report.

4. Coroners Report

Q44. What is the major reason for conducting fact finding exercise?

1. Need analysis

2. Understand about company

3. Introduction of agent

4. Understanding the Customer

Q45. Issuance of a license to a person has been stipulated in ... Act

Q46. Which of the following team represents the members of GBIC ?

1. Representatives from all insurance companies

2. Representatives from all government bodies

3. Representatives from IRDA

4. Representatives from Insurance institute of India

Q47. 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

Q48. How Many offices of Ombudsmen the Government body has set up to Resolving insured customer's grievances.

1. 15

2. 12

3. 14

(42)

Q49. 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 2

give more commission to Mr. Gayaram. This is called as ...

1. Switching

2. Churning

3. Redirecting.

4. Shifting.

Q50. For Insurance industry which association to take steps to Develop

Education and research in insurance? 1

2. Life Insurance Corporation

3. Insurance institute of India

(43)

Question

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

Human beings need life insurance because ...

1. death is certain

2. death is uncertain

3. the timing of death is uncertain

4. Death is the solution.

In Insurance terms, pooling of risk is

What is the maximum sum assured under a micro insurance

1. 10000

2. 25000

3. 50000

4. 100000

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

Grouping the similar risks by Insurance Company is called as....

1. Grouping of Risk

2. Risk Grading

3. Risk Assessment

4. Pooling of Risk

Life insurance is the most important for which age group

1. Young

2. Pre- retirement

3. Retirement

4. children

The reduction in the benefit illustration shows what.

1. Charges.

2. Mortality.

3. Interest.

4. Inflation.

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

Q10. 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 2

consumer forum can he approach?

1. National Commission

(44)

3. State Level

4. Mandal Level

Q11. What are the different types of Assignments? 2

1. Full Assignment and Partial Assignment

2. Conditional and Absolute Assignment.

3. Life Assignment and General Assignment.

4. Standard Assignment and Non-Standard Assignment.

Q12. 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 2

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

Q13. 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 3

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

Q14. Rakesh has bought an Endowment, Money back, Term & Annuity Plan he would like to avail Loan from:

1. Endowment Plan

2. Term Plan

3. Money Back Plan

4. Annuity Plan

Q15. Parvesh bought a policy an endowment plan but after one year insurer.

Found he had Aorta Surgery .now which will apply by insurer: 1

1. Indisputability Clause (Section 45) apply

2. Principal of Indemnity apply

3. Lien Clause

4. Utmost good faith apply

Q16. If both parents of proposer died in their thirties due to heart attack what is the kind of peril or hazard the proposer has?

1. Insurable hazard

2. moral hazard

3. non insurable hazard

4. Physical hazard

Q17. When an illiterate person wants to have a policy ... ... 1

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

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