Sr.
No. Chapter No Question Ans Option 1 Ans Option 2 Ans Option 3 Ans Option 4
Correct Ans /
option
Learning
Objective Explation for correct answer Page No. Remarks
1 1
Sanjeev is an insurance expert who has rich experience in determining premium levels for product, what is
his profile like
an actuary loss adjuster risk mager underwriter 1 Actuaries Works on statistical data to arrive on
mortality , premium table etc Pg :27
2 1
The Non Government organizations(NGO) helps the insurance industry immensely in
Promotiol activities Drafting new regulations Linking buyers and sellers Linking third party administrators 3 NGO
NGO spread Awareness as well as In rural on deeper Penetration through Micro
Insurance
Pg :27
3
1 Investment by foreign direct investors
in to Insurance co's is restricted to 12% 25% 40% 26% 4 FDI
On recommendation of Mahlotra Committee , Under Joint venture , the foreign player can not have more than
26% stake
Pg :24
4
1 Which market does the Micro
Insurance Concentrate on ?
People with large families
People with Low Income Government Employees people living in Metro cities 2 Micro Insurance
Micro Insurance is for Low Income Group . Product ranges from 5K to 50 K .Premium is as low as Rs 15 and can be
collected weekly
Pg 24
5 1
What facility do the insurer use to
cover Risk beyond their Limits ? Re Insurance Banca assurance NGO RBI 1 Reinsurance
Reinsurance company is the Insurer for
the Insurance Company Pg :26
6
1 what is the max level under which
micro insurance can be done 5000 25000 50000 1 lac 3
Micro Insurance
Micro Insurance guidelines was issued in 2005 by IRDA . Minimum SA is Rs 5000
& Max is Rs 50,000
Pg :25
7
1 Who is the customer of a Re insurer High Networth Individual Insurance Companies Licenced Insurance Agents Non Government Organisation
2 Reinsurance Reinsurance company is the Insurer for
the Insurance Company Pg :26
8 1
Insurance company transfers the insurance which cannot bear by them
to
Bancassurance Reinsurance TPAs Actuaries 2 Reinsurance A re insurance company is the Insurer for
Insurance company Pg :26
9 1
What is the main objective of taking
the life insurance policy Tax benefit Savings Investment Protection 4
10 1
What is the maximum sum assured
under a micro insurance 10000 25000 50000 100000 3
11 1
Varun wishes to pursue a career in insurance and wishes to be in a department which calculates the level
of premium. In which department should he join?
Actuary Underwriter Claim
Department Accounts 1
12
1 According to Insurance Brokers Association of India, what is the most
appropriate relationship between Insurer and Broker?
Insurance broker represent the client and the
insurer remunerate the
broker
The client represent the broker and the
insurer remunerate the broker Insurer represent both client and broker remuneration Broker only service the client 1 13 1
If a client needs Mediclaim to cover health insurance which insurer he
needs to apply.
Non life insurer Life Insurance Reinsurer Any Insurer 1
14 1
Insurance agents are
Who work only for insurance
company
Who work for
customers Intermediaries
Who works for their own
interest.
3
15 1
Any assets, which are no longer suitable or are earning fewer returns
than expected, should be
Reviewed Cashed in for investment into other assets 2 16 1
If a client wants to compare between all fincial products then the best
person he can approach is
Individual agent Corporate agent Bank Broker 4
17 1
If the customer wants to seek information about all products, then
he can avail the services of
Agent Broker NGO Bank 1
18 1
To identify suitable products their main features and their tax treatments
is the role of:
19 1
The main purpose of buying an insurance policy normally is
to develop the habit of savings to obtain Income Tax benefits for protection of fincial security to obtain loan as when required to meet fincial obligations 3 20
1 The basic elements of life insurance are: Accident benefit and riders. Pension and monthly income. Death cover and maturity benefit. Interest yield and variable income 3 21 1
Transactions of sale of life insurance products to the insurable clients are
viewed in the Insurance market mostly as Sales transactions Relationship transactions Monetary transactions Assured transactions 2 Discuss 22
1 A Professiol insurance market carries….. 1. Need – Based Selling 2. Product – Based Selling 3. Commission – Based Selling 4. Company – Based Selling. 1 23
1 Insurance Market divided into
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 2 24 1 What is Bancassurance? 1. Giving insurance policies to Banks. 2. Selling insurance policies through Banks. 3. Giving guarantee to policies by Banks. 4. None of the above. 2 25
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 Discuss 26
1 The business of Insurance is connected with... 1. physical values of assets 2. economic values of assets 3. metaphysical values of assets 4. market values of assets 2 27
1 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. 3 28
1 The timing of death is uncertain, so when one should take life insurance?
1. At the time of uncertainty 2. At an early age 3. Anytime in life 4. At the time when Advisor takes the decision 2 29
1 Insurance Protects which of the following?
1. The life of the person paying compensation 2. The risk retained person 's family 3. The fincial goal of the insured 4. The life of the nominee 3 30
1 Agent who is a licensed intermediary is actually is ? 1. A legal person to act on behalf of the re-insurer 2. B.A legal person to act on behalf of the insurer 3. C.A legal person to act on behalf of the contract 4. D. An authorized agent to act on behalf of the legal company 2 31 1
E-sales refers to sales of insurance products through 1. Insurance brokers. 2. Bancassurance. 3. Individual agents. 4. Internet. 4 32
1 Insurance business is classified into three main types:
1. Life, Non –life, Micro Insurance.
2. Life, Non Life, Miscellaneous 3. Life, Non life, Re-insurance. 4.Life, Health, Micro Insurance 3 33
2 lung cancer and smoking .
lung cancer is peril and smoking is moral
hazard
smoking is peril and lung cancer
is hazard
Death is certain Is occupatiol
hazard 1 Peril & Hazard
Peril refers to a specific event which might cause a Loss /Damage .A hazard is a condition that may Increase the chance
of perils to happen
Pg:41
34
2 The type of risk that can be insured
against is Speculative Risk Pure Risk
Pure & Speculative
risk
Non Fincial
Risk 2 Types of Risk
The types of risk that could be insured against are , fincial risk , pure Risk &
Particular risk
Pg :42
35 2
Pooling of risk in insurance means
The premium collected & deposited in a
pool
All similar risks are pooled together Premium is pool to make claims Contribution of insurance company 2
36 2 Pure risk is classified under Economic risk Speculative risk Fincial risk Insurable risk 4
37
2 The consequences of these risks which will affect specific individuals or
local communities in ture is called as
Pure risk Fincial risk Particular risk Physical
hazard 3
38 2
Law of Large number helps the insures to Calculate the premium Increase the profitability Ascertain the death ratio Declare the bonus 3 39 2
A person with a crimil background due to Fincial fraud would come under
which hazard
Physical Moral Occupation 2
40 2
How are perils and hazards normally distinguished under term insurance
policies?
Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying.
Perils are risks that policyholders will
die before a specified date and hazards are
factors which could influence
that risk.
Perils are factors which affect the risk being insured and hazards are the size of
the risk being insured. Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a
payout
2
41
2 Law of large numbers is worked out by which of the following?
Pooling of risk Maintaining insurable interest
With utmost
good faith Randomness 1
42 2
With pooling of risks an insurance company pools the premium collected
from several individuals to insure them against similar risks. At what circumstances will the insurance companies pool the risk of a life insurance and health insurance
together? Under no circumstances Under conditions of the reinsurer As directed by actuary As per company policy 1 43 2
In life insurance industry which mechanism operates so as to eble the
individuals to reduce the impact of risks
Pooling of risk Transfer of risk Prevention of
risk Sharing of risk 2
44 2
Law of large numbers help in
calculating the severity of risk physical hazard moral hazard
Probability of
risk 1
45 2 Which is the best option to mage risk? Retain Transfer Avoid None 2
46 2
Viy doesn’t want to take insurance on himself. He feels that his family will survive with the funds available in the
bank and monthly rentals received from village. This comes under Risk
______
Transfer Control Retaining Avoidance 3
47 2
Insurance is a mechanism through which risk of an individual can
normally be
transferred prevented avoided reduced 1
48 2
In the context of Insurance terminology, how the meaning of ‘Peril’, ‘Risk’ and ‘Hazard’ is best
described?
Peril, Risk and Hazard are of the same meaning
Peril is the event, Risk is the loss of event and Hazard is the wrongful even
Peril is the event, Risk is
the cause of event and the
Hazard is an event of dangerous ture Peril is the event, Risk is the likely occurrence of the event and the Hazard increases the chances of happening of the event. 4
49 2
Pooling of risks is one of the fundamental principles of insurance where the Insurers pool the premium
collected from all types of fincial risks the homogeneous risks the heterogeneous risks the speculative risks 2 50
2 Pooling of insurance applies to 1. all types insurance 2. All types of insurance except Motor insurance 3. Only life insurance 4. Only Non-life insurance 1
51 2 The “Risk” contains….
1. Peril and
Hazard 2. Level 3. Uncertainty
4. All of the
above. 4
52 2
Grouping the similar risks by Insurance Company is called as….
1. Grouping of
Risk 2. Risk Grading
3. Risk Assessment
4. Pooling of
Risk 4
53 2
The function of Insurance works
on….. 1. Risk Transfer 2. Risk avoid
3. Risk retention. 4. All of the above. 1 54 2
Mr. Mahesh is a software engineer. He has taken a term insurance for Rs.
30,000,00/- for 30 years. This is an example
for---1. Risk retention 2. Risk transfer 3. Risk avoidance
4. Risk
tolerance 2
55
2 Which of the following can be an example of moral hazard?
1. a family history of heart disease 2. a person working in a chemical factory 3. a person consuming alcohol 4. A teacher working in a primary school. 3 56
2 Life insurance the risk is determined
on the basis of ... 1. future data 2. past data
3. statistical data 4. mathematical data 2 57
2 Which one of the following is possible in retaining the risk?
1. Retaining the ownership in the
policy
2. Not possible as life has many
risks. 3.Is possible by transferring risk to the policy holder 4.Is possible by Re-insuring oneself 2 58 2
On 6th August there was a typhoon. Mr.Augustin who had insurance died
in typhoon. Now how will the insurance company will categories
this particular risk ?
1. Under the category of Pure risk 2. Under the category of peril risk 3. Under the category of particular risk 4. Under the category of Risk Transfer 1 59 2
Life insurance company determine the level of risk based on
1. Future expenses. 2. Claim experiences. 3. Present expenses. 4. Targeted bonus rates. 2 60 2
Ram works in a Fire cracker factory. He stocks the cracker in his house.
He runs which type of risk.
1. Speculative. 2. Particular. 3. Fincial. 4.
Fundamental. 3
61
2 In Insurance terms, pooling of risk is
1. Using the same pool for paying claims of
car & life insurance.
2. Using different pool for paying
claims of life insurance.
3. Using the same pool for paying claims of life & house insurance.
4. Using the same pool for paying claims of life insurance. 4 62 2
An Insurance company pools the premium collected from several Individual to insure them against
similar risk is called:
1. Pure Risk 2. Pooling of Risk 3. Insuraable Risk 4. Sharing of Risk 2 63 2
Which of the following Risk is associated with those events which are not in control of an individual and
also no possibility of making profit:
1. Pure Risk. 2. Particular
Risk. 3. Fincial Risk.
4. Insurable
Risk 1
64 2
which of the following refres to specific event which might cause a
loss ...
1. Peril 2. Hazard 3. Physical
hazards 4. Uncertinity 2
65 3:1
Harish takes a life insurance policy for Ramesh. Which of the following statement best describes the principle
of Insurable Interest.
Ramesh declares all his
liabilities Ramesh is elder than Harish Ramesh owes money form Harish Harish suffers fincial loss incase of death of Ramesh 4 Insurable Interest
Creditor has Insurable Interest on the Life of Debtor to the extend of the MONEY
lent to the debtor
66
3:1 what is the min age to enter into the
contract of insurance 16 18 20 21 2
Insurance Contracts
Person entering contract should be competent enough . A person is competent when he is a Major ( above 18
years ) , sound mind ,not disqualified
Pg :53
67 3:1
In a whole life plan - The policyholider's responsibility to give
disclosure
at the beginning of the contract
through out the
contract Revival stage
beginning of
renewal 1
Utmost Good Faith
The proposer knows all the material facts about himself and has to disclose all information voluntarily at the time of completing the proposal form and
submitting the documents
Pg :57
68 3:1
Principle of utmost good faith will operate in existing policy
Every time premium is paid
If the policy has lapsed and it has
to be revived If the insured person falls sick and is admitted to hospital If the insured person changes his job 2 69
3:1 Both the parties to a contract must agree and understand the same thing and in the same sense which is called
Consideration Legality of an object
Consensus ad
idem Acceptance 3
70
3:1 In case of life insurance, Insurable interest must exist
At inception of
policy Not needed
At the time of claim
Any time during
the contract 1
71 3:1
Group Insurance can be taken in following relationship employee- employer Husband-wife family members society members 1 72
3:1 What amount of insurable interest does an individual have in his own life
20,000 50,000 Up to the sum assured taken in the plan Unlimited 4 73
3:1 With reference to the principle of indemnity a life insurance policy is a.
Insurance contract.
Indemnity
contract. Value contract.
Major life
contract 3
74 3:1
If Insurable interest does not exists at the time of inception of the life insurance policy then, life insurance
contract is
Voidable Invalid Valid Null & voidable 2
75 3:1
If a contract is signed by a 15 years
old boy, this contract will be Null and void Invalid Voidable Valid 2
76 3:1
1. If the employer has insurable interest in the life of an employee,
what kind of policy is this?
A. Surety insurance B. Keyman Insurance C. Partnership Insurance D. Debtor Insurance 2 77
3:1 The concept of indemnity is based on the key principle that policyholders
should be prevented from
Insuring existing losses. Making false insurance claims. Paying excessively for insurance cover. Profiting from insurance. 4 78
3:1 Employee has insurable interest in the life of their employer to the extent of
Yearly Salary Monthly Salary Probation
Period Till Gratuity 2 Discuss
79 3:1
Mr Rohan takes an insurance policy due to heavy Debt on his business
with an intention of committing suicide. This is an example of the following Feature of a valid contract
Capacity to
Contract Legality of object
Capability of performance
Offer and
acceptance 2
80
3:1 An insurer can invoke indisputability clause in case of death only in
Non payment of due premium Breach of duty of disclosure of material facts 2 81
3:1 A proposer shows his age lesser than his actual age. This will be termed as
Breach of utmost
82 3:1
Mr. Mehra wants to insure his wife. Previously his proposal was rejected by another company, but this time he submits the proposal form without showing this to a new company. This
is Non-disclosure of material facts Concealment of material facts Fraudulent misrepresentati on of material facts Innocent misrepresentati on of material facts 2 83 3:1
In which type of insurance Insurable Interest exists at the time of claim?
Liability
Insurance Marine Insurance
Motor Insurance Travel Insurance 2 84 3:1
A proposal of life insurance is not accepted in the absence of Insurable interest which mainly depends on the
blood relation between the Proposer and the
Life assured
Proximity of relationship between the Proposal and the
Life assured Fincial relationship between the Proposer and the Life assured Emotiol relationship between the Proposer and the Life assured 3 85
3:1 Principle of utmost good faith is expected for max up to which stage
Before the contract is concluded
1 Discuss
86
3:1 A contract comes into existence when………
1. One party makes an offer which the other party accepts unconditiolly.
2. One party makes an offer which the other party put extra
conditions. 3. One party makes an offer where other party gives counter offer. 4. One party makes an offer which the other party receives
the offer. 1
87 3:1
Mr. Kumar’s wife is suffering from blood cancer. Doctors lost their hope
on her live. Mr. Kumar would like to take Life Insurance policy on wife’s me in order to get monitory benefit. Insurance company rejects this proposal on the grounds of…….
1. Anti Money Laundry 2. Legality of object or purpose 3. Capacity of paying future premiums. 4. All of the above 2 88 3:1
Under this situation may leads to breach of the duty of utmost good
faith. 1. Non disclosure of material facts. 2. Concealment of a material fact 3. Fraudulent misrepresentati on of facts. 4. All of the above. 4 89
3:1 The principle of utmost good faith is not applicable to 1. Facts of common knowledge 2. Facts of law 3. Facts those are not material. 4. All of the above. 4 90
3:1 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
91
3:1 The principle of utmost good faith
applies to... 1. only insurers 2. only proposer
3. both insurers and proposer 4. neither insures nor proposer 3 92 3:1
Mr.Akash filled the proposal form but before submitting to the company he discussed with the agent that he is not
sure whether he can pay for 15 years . This attitude affects which part of the
contract? 1. Consideration in the contract 2. Capacity to contract 3. Consensus ad idem 4. Offer and Acceptance in the contract 4 93 3:1
Mr.Karan who has to go to abroad for 6 months on an official work decides
to leave his car with his friend Mr. Jim. What will be the validity of the
insurable interest in this case ?
1. The insurable interest between the car and jim is
valid for 6 months
2. The insurable interest between the car and karan is valid for
6 months
3. The insurable
interest between the car and karan is valid until he owns it 4. The insurable interest between the car and Jim is
valid until Karan’s return
3
94 3:1
Mr. Josh was filling the proposal form but as his mother was sitting beside
him, even though he drinks and smokes he ticked “NO” in smoking &
drinking column of proposal form. This indicates ? 1. He has breached the non-disclosure of the fact 2. He has breached the company by concealing the facts 3. He has breached the company by fraudulent information 4. He had done an innocent misrepresentati on 2
95
3:1 A contract exists between insurer and proposer when 1. A proposal has been accepted by insurer. 2. A policy document has been stamped by insurer. 3. A policy document has been received by the policyholder. 4. An insurer has made another proposal. 1 96 3:1
Rakesh purchased a life insurance policy. While writing a proposal form
he hide that he practices mountaineering. Sadly he died in an
accident while climbing Mount Everest. The insurers rejected the
claim.What is the reason for rejection? 1. Innocent misrepresentatio n. 2. Fraudulent misrepresentatio n. 3. Concealment. 4. Non-Disclosure. 4 97 3:1
Shamsher has a health insurance policy of ` 1, 00,000 individually and from his company for ` 2, 00,000. He
falls sick and got hospitalized. His hospital bill ran to ` 50,000. He
claimed this amount from his individual policy. Also, he placed the
request with his company for group policy claim, which was rejected. The
reason for rejection is.
1. Indemnity contract. 2. Value contract. 3. Deemed contract. 4. Rolling contract. 1
98 3:1 Life Insurance also known as:
1. Value
Contract. 2. Indemnity
3. Commercial
Contract 4. Speculative 1
99
3:1 Which option is not correct with regard to joint life insurance plan?
1. Plan offer insurance coverage for two
person in one policy
2. This plan is ideal for brother
& sister.
3. Each life will be underwritten separately. 4. A joint life policy may cover a partner in business under one policy. 2 100 3:1
Pooling of insurance applies to
all types insurance All types of insurance except Motor insurance Only life insurance Only Non-life insurance 1 101 3:1
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
15 days from the date of receipt of
the policy document
20 days from the date of receipt of the policy document 25 days from the date of receipt of the policy document 30 days from the date of receipt of the policy document 1
102 3:2 Types of assignment Absolute
Term
assignment Conditiol
Absolute &
Conditiol 4 Assignment
Sec 38 of Insurance Act 1938 Defines
Assignment and its types Pg:79
103
3:2 why does an insurer insist on age
proof document . To assess SA Risk assessment
Identity verification Fincial assessment 2 Insurance Documents
AGE is a factor for determining the Risk Profile of the Proposer , thus allowing the
underwriters to calculate the premium required for the plan
Pg :69
104 3:2
Mr A submitted the proposal form . When will the risk begins for the
company?
Submission of
proposal form FPR issued Policy issued
Agent accepts
money 2
Insurance Documents
FPR is an Important document which is also an evidence that Risk has begun Pg :70
105 3:2
The obligation of the insurer for the whole life policy is mentioned in
Operative
Clause Preamble Proviso Endorsement 1
Insurance Documents
The operative clause lays down the
Mutual obligation of the parties . Pg :71
106 3:2
Asvath is illiterate. He wants to take policy and surya is a friend of his help
him is answering questions and answers and also fills proposal . In
addition to this requirement is
Asvath photograph asvath thump impression Only policy document need to be registered Left thumb Impressionof Asvath along with a declaration of his friend 4 Key Documents
The proposal form and the proposer's Sigture is the basis of the contract . Pg :68
107 3:2
For Logging a Policy , a person gives Baptism CERTIFICATE & Ration
Card . What is this ?
Both are Standard Age
Proof
Both are Non standard Age Proof Baptism Certificate is Standard & Ration Card is Non Standard Age Proof Baptism Certificate is Non Standard & Ration card is Standard
Age Proof
3 Key
Documents Age proof are standard and non standard Pg :69
108
3:2 To be a valid contract ,the declaration
is necessary in which document Policy Document proposal form FPR RPR 2
Key Insurance Documents
The proposal form and the sigture of the proposer will form the basis of Insurance
contract .
Pg 68
109 3:2
Mr. ABC buying Term insurance policy, insurer should mention Ombudsman address in which part of
policy document?
operative clause Preamble Information
statement schedule 3
Key Insurance Documents
Policy Information statement includes :facility available for frequency and method of premium payment ,contact for
service and inquiry related to policy ,Ombudsman location and contact
Pg :72
110
3:2 Zaib takes insurance in the life of
Jasmeet. Zaib will be called as Proposer Nominee Appointee Trust 1
Key terminologies
The person seeking insurance is a Proposer . Proposer & Life assured could
be the same or different
Pg 66
111 3:2
Mr.Suresh dies one day before the grace period without paying the premium, what is th claim payable
No claims payable
All premiums
paid Sum assured
Sum Assured less the latest
premium
4 Lapse
A grace period normaly is of One month , not more than 30 days for YEARLY , HALF , Qtrly mode of premium payment .
Pg :74
112 3:2
Loan is available for a policy in which
there is a feature of Fund switch Savings Element
Partial
withdrawal Surrender 2
Loans & Foreclosure
loan is given as a certain %age of
Surrender value Pg :79
113 3:2 Appointee's role
Sigture on the
proposal Medical exams
insurable interest
when Nominee
is Minor 4 Nomition
An appointee has to be appointed in
case the Nominee is a Minor Pg :74
114
3:2 how many nominees can be attached
to a term insurance policy one two three many 4 Nomition
Any number of nomitions can be attested on the policy . However No % age of share can be mentioned per nominee
Pg :78
115 3:2
if a policy has two nominee mentioned what should be the Min
allocation Each nominee to get Min 10% Each Nominee to get Min 25% the first nominee should have more than second No such conditions 4 Nomition & Assignments
No specific Shares in Multiple Nomitions however can be done for successive
nomitions
Pg:78
116 3:2
a Policy holder takes a insurance contract for 30 years and the SA reduces after 25 years what could be
the likely reason
No bonus accumulated
Age proof was substantially
wrong
Policy has become paid
up
Its a Ulip Plan 3 Paid Up &
Lapse
Lapsed policy will be made Paid Up and the SA reduced to an amount based on
Premiums Paid
Pg :75
117 3:2
A life insurance policy can only be made paid up if what particular policy
feature exists?
Indexing
contribution. Nomition facility. Rider benefits.
Savings
element. 4
Paid Up policies
Policy which have A value , ie endowment and having saving component can be made paid up in case it lapses during the term after completion
of 3 policy years
Pg :75
118
3:2 Reasons for surrender of the policy SA advisor induced no commission Has Fincial
Problems 4
Surrender value
Also known as Cash Value . The Option for the policy holder to close the Plan during the Term .due to either Persol Fincial problems or policy being mis sold
and benefits not up to the clients needs
Pg :76
119 3:2
If a life insurance policy is issued with
a lien, it will be mention in Proviso Schedule
Terms &
conditions Endorsement 2
120
3:2 Available Loan amount under a life Insurance policy is generally based on
Total paid
premium Sum Assured
Surrender
value Paid up value 3
121 3:2
If a customer has mentioned he is a drinker in the proposal form, the insurance company can exclude this hazard and mention it in which part of
the policy document?
Provisio Endorsements Operative
clause
Terms and
122 3:2
Mr. shailsh has an endowment policy with 30 years policy term, he has paid
for eight years. The sum assured Rs.8,00,000/- and accumulated bonus
Rs.60,000/-. What is the paid up value if bonus accumulated and if not
bonus accumulated? 213333 & 273333 213333 & 229333 229333 & 273333 229333 & 293333 1 123
3:2 Whose sigture is required on attestation of the policy?
Agent Policy holder
Authorized officials of insurer
Proposer 3
124 3:2
The mutual obligation of the parties is laid down in?
Operative
Clause Heading Proviso Attestation 1
125 3:2
The Insurance companies allow modification/alteration of the origil
policy documents through...
Surrender Paid Up Endorsement Assignment 3
126 3:2
In case the customer has stopped making payment for the premium of
the policy. What are the two most important things required in order to
reinstate the policy?
Reinstatement Fee and Proof of
continuing good health Premium cheque and health declaration Only health certificate Premium cheque with arrears 1 127 3:2
A and B start their policies on the same date and surrender on 22nd anniversary of the policy. But A’s surrender value is higher than B. the
reason was ;
A’s health was better than B
A’s term was longer than B
B’s term was
longer than A 3 Discuss
128 3:2
Which from the following would help best the underwriter to know whether the proposer had applied previously
and his application was rejected
Medical reports Proposal form Policy
document 2
129
3:2 A policyholder wants to change the nomition after 5 years of the policy.
What would happen
Change not allowed Can be done through endorsement Can be done through an affidavit sworn in A simple application would do. 2 130 3:2
Mr. Anil has a money back policy and a whole life policy. He is planning to take some loan from both the policies
as he was regularly paying the premium. What is your suggestion?
He regularly pays premium so he can take loan from both the
policies
He can surrender whole life policy
and can take loan from Money
back policy
He can’t take loan from money back but can avail loan from Whole life policy He can’t take loan from whole life policy but can avail loan from Money back
policy
3
131
3:2 When does nomination get
invalidated
On assignment
If more than one person is
nomited
1
132 3:2
If 5% bonus is given every year then for a SA of 1 lakh, what will be the payout after 15 years in a simple
revisiory bonus system?
60000 75000 100000 5000 2
133 3:2
Vijay received his policy bond on 11th June, 2011. Due to some persol problems he has decided to cancel the policy on 8th July, 2011. Can he
cancel or return the policy?
No, as 15 days period is over Yes, as it is within 1 year No, as 20 days period is over Yes, as it is within 3 months 1 134 3:2
Rohit, 17 years old, submitted a proposal for Endowment plan of Rs.1
lac to AB Insurance Co. In the absence of an essential ingredient of a valid contract, the proposal was not accepted. Which factor caused the
insurer for non-acceptance of the proposal?
Capability of
performance Legality of object
Capacity to
135 3:2
A nomition is not required if
Policy is taken under joint life
basis
1
136 3:2
What is the main source for insurance company to get information of
proposer?
1.
Advertisements. 2. Proposal form.
3. Conducting interviews. 4. Telephonic conversations. 2 137 3:2
What are the factors involved in calculating Surrender Value of the
Policy? 1. Number of year’s premium paid. 2. Number of premiums payable. 3. Sum Assured 4. All of the above. 4 138 3:2
Mr. Kumar is taken one life insurance policy with ABC Company. But he is not satisfied with the policy benefits. What Mr. Kumar can do under this
situation? 1. He can not do any thing, because be received the policy bond. 2. He can file a complaint against insurance company in court. 3. He can send back the policy document to insurance company with in 15 days from policy receiving date. 4. Serve notice to insurance company on policy benefits. 3 139
3:2 When an illiterate person wants to have a policy...
1. an impression of the left thumb is taken and third party has to
attest it
2. an impression of the left thumb is taken and the advisor has to
attest it
3. an impression of the left thumb is sufficient and need not be attested 4. A relative of the illiterate person has to sign on behalf of that illiterate person. 1 140 3:2
Mr.Shanth has taken an endowment policy of 15 years with ABC insurance company. He has paid premium for 4 years and he could not pay premium for 5th and 6th year. In the 7th year he approaches the company to renew the policy. Now which of the following
options will apply to him?
1. The policy will be renewed on
the existing terms and conditions.
2. Mr. Shanth cannot renew the
policy 3. the policy may be renewed on different terms and conditions 4. Mr. Shanth can renew the policy only on the approval of
the insurer 3
141
3:2 Which of the following statement is not true in connection with nomition?
1. The life insured can nomite one or more than one person as nominees.
2. Nomition can be done either at
the time the policy is bought or later. 3. A person having a policy on the life of another should make a nomition. 4. The section 39 of the Insurance Act 1938 speaks about the nomition. 3 142 3:2
Which of the following statements in correct in connection with
assignment? 1. Assignee cannot make fresh nomition in the policy 2. The assignor need not be major at the time
of assignment. 3. Section 45 of the insurance act speaks about assignment. 4. Conditiol assignment and absolute assignment are
one and the same.
1
143 3:2
Mr. Shanth has taken an endowment policy of 20 years. He has paid premium for 10 years and now the policy is in force. At this point of time
can Shanth take loan?
1. Mr. Shanth will not be granted
any loan
2. Mr. Shanth can take loan which should be certain percentage of the surrender value of the policy. 3. There is no concept of loan in insurance policy 4. loans are allowed only in term plans 2 144 3:2
Mrs.Shwetha has taken a loan from her policy. Later stage she neither paid back neither the loan nor she paid the premium for a very long time. What will happen to her policy?
1. Policy will be surrendered by the insurer 2. Policy will be surrendered by the nominee 3. Policy will be surrendered by the company 4. Policy will be surrendered by the heir 1
145 3:2
Which of the following information does not appear in the First Premium
Receipt? 1. method and frequency of premium payment 2. Date of commencement of last premium 3. Date the policy matures
4. Date the last premium will be
paid
2
146 3:2
Mr. Raj has taken a policy of 15 year term. He has paid the premium for 9 years. But now unfortutely he has lost
his job. He is uble to pay the premium. What can be the best
solution from the following ?
1. Converting the policy to Term policy 2. Converting the policy to Paid up 3. Converting the policy to money back 4. Converting the policy to whole Life 2 147
3:2 Payment of premium and sum
assured are laid down in
1. Heading of policy document. 2. Proviso of policy. 3. Operative clause. 4. Schedule of policy document. 3 148
3:2 An insurance contract commences when 1. Quotation is signed by proposer. 2. First Premium Receipt is issued. 3. Proposal Form is signed. 4. Policy Document is received by policyholder. 2 149
3:2 When is premium considered / deemed to be paid? 1. When insured writes a cheque in favor of insurer. 2. When cheque amount is deposited in insurer account. 3. When the cheque is deposited with insurer office. 4. When cheque is posted/couriere d by the insure4. 2 150 3:2
Ram Lal is an insurance policyholder. He has recently shifted his home from New Delhi to Noida. He wants the address to be changed. This change
in policy document will be effective through? 1. Terms & Condition. 2. Preamble. 3. Endorsement. 4. Schedule. 3 151 3:2
Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 annual premiums but due to fincial crisis is uble to make future premium.
His policy 1. Acquires surrender value. 2. Contract comes to an end. 3. Moneys will be forfeited. 4. Acquires paid up value. 4 152
3:2 How assignment distinguishes itself from nomition?
1. Nomition does not transfer the
title while assignment
does.
2. Nomition transfers the title while assignment does not. 3. Nomition is made after policy is issued while assignment is done before it is issued. 4. Nomition need not be informed but assignment needs to be informe4. 1 153 3:2
Manish took a loan from Pankaj of Rs.10 lac, Pankaj transferred his Insurance policy to Manish of Rs.10 lac as a security with the agreement Of when Loan is fully paid, policy title will be revert back to me of Manish is
called: 1. Loan assignment 2. Conditiol Assignment 3. Loan Agreement 4. Absoulte Assignment 2 154 3:2
Which clause lays down the mutual obligation of the parties regarding, Payment of Premium by Life assured
& payment of Sum Assured by
1. Lien Clause 2. Opertaive Clause 3. Proviso Clause 4. Schedule of Policy 2 155 3:2
Prab is not able to pay premium for continue his policy due to some Fincial problem, so he rather than surrendering the policy, what Option
he has to convert ……….? 1. In to paid up and reduced Sum Assured would be payable on maturity. 2.Return of Premium on maturity 3. Deduct the underpaid premium from Sum assured and payable on Maturity 4. Policy was subject to lien. 1
156 3:2
Ajay has bought an endowment with profit plan for 20 year .if he took a Loan after 5th of commencement of
policy and died before 2 year of Maturity .what would be payable on
maturity? 1. only Sum assured 2.Sum Assured + Bonus 3. Sum assured plus vested bonus minus any outstanding loan/premium & Interest. 4. Paid up value only. 3 157 4
While calculating Human life value (HLV) two components need to be kept in mind , the one is take home
salary and other is
Bank Fixed
deposit rate discount rate
Estimated life expectancy Estimated amount at retirement 1 Human Life Value
HLV assumes if the event happens Today how much money one should have in the BANK to get the monthly expenses of the
family to continue .
Pg 95
158 4
Annual premium of insurance product is Rs. 32,000, 4% loading on Quarterly mode of payment What is
the quarterly premium?
7680 8000 8320 8500 3 Premium
Calculations
Adjustment to take into account of Expenses & profits of the insurer is called
loading
Pg :100
159
4 why ACR To calculate
Premium
To Calculate the commission due for the agent
To verify the Plan proposed
To help the underwriter to asses the Risk
4 Primary
Underwriter
Agent Confidentiality Report is mandatory as It helps the Underwriters to have additiol Information about the Proposer as the agent is in better position having
met / known the client
Pg :102
160 4
In a 20 year with profit policy,persist
ency Bonus is paid at the end of 1st Year 10th Year 15th Year 20th Year 4 Types of Bonus
Persist ency or termil bonus is given at
maturity of the policy Pg :101
161 4
While Underwriting Mr X proposal , its found that there has been CRIMIL case against him in Fraudulent act .What type of Risk this will be
categorized Into ? Fraudulent Hazard Occupatiol Hazard Physical
Hazard Moral Hazard 4
Types of Hazards
Moral Hazard relates to attitude or
Intentions & conduct Pg :91
162 4
Mr A wants insurance cover . But he is drinks alcohol frequently . What kind of hazard you may categorize?
Physical hazard Moral Hazard fincial risk Pure risk 1 Underwiting
Physical Hazard refers to the physical characteristic of the risk associated with
the proposer
Pg :91
163
4 Who IS the primary underwriter of
the customer? Underwriter Insuranc eCo Agent Actuary 3 Underwiting
Agents are in direct contact with the Customer and have an important role to
play in assessing the risk
Pg :102
164 4
Claim was settled however full Sum assured not paid though the policy
was in force due to
Lien Bonus Surrender Accidental
death 1 Underwiting
Lien is a clause where the underwriter feels the risk will wear out in time Pg :95
165
4 Lien can be considered an altertive of
which of the following Clause Rejection Acceptance Time barred 1 Underwriting
LIENS are clauses which Underwriters apply to the proposal where they feel the
RISK will wear off after certain time duration l
Pg :95
166 4
what is the special report that is asked by the underwriter from the officer of
the insurer HLV report Client confidentiality report moral hazard
report medical report 3 Underwriting
Special reports from senior officials or agents are taken by underwriters sometimes if the risk on the policy
solicited is high . Informations on Occupation, habits , lifestyle , income
would be asked through this
Pg :90
167 4
As per the norms of risk assessment by U/W both the parents of a policy holder died in their early 30s due to Heart disease, what is the risk
assessed
Moral Hazard Medical Hazard Occupatiol Hazard
Physical
Hazard 4 Underwriting
Under Physical hazard , the Underwriter looks into medical history of the family of the proposer to asses the risk due to
heredity
Pg :91
168 4
Net premium is equal to
Premium plus interest earning Risk premium plus interest earning Premium minus interest earning Risk premium minus interest earning 3 169 4
Where annually increasing flexible premiums operate under a life
insurance policy, what rate of increase will generally apply
170 4
The regulations issued by the IRDA, require that the decision on the proposal must be conveyed to the
proposer within 15 days of receiving the proposal 20 days of receiving the proposal 25 days of receiving the proposal 30 days of receiving the proposal 1 171 4
If bonus is given under a plan the
additiol premium added is known as Loading Investment Frequency 1
172 4
Certificate from the village panchayat
Will be considered as standard age proof Will be considered as non standard age
proof
Will not be
accepted 2
173 4
What will be lien amount in 3rd year as compared to the 4th
year of lien. It is higher Decrease Slightly higher Slightly lower 2
174 4
When an individual gets older, chances of obtaining life and health
protection will be
Increases Reduces Remains same Depends on
insurer 2
175 4
What key event is most likely to prevent insurer from ensuring that
each insured person brings a fair premium to the pool for the risk
presented? A policy Assignment A Fradulent Claim A steep rise in inflation A sudden illness 2 176 4 HLV is used as a Yardstick to determine Emotion Loss can be compensated for The correct cover needed to compensate economical loss to their family in case of death of the earning member A lump sum amount that the
person will get from the insurance company 2 177 4
While calculating HLV along with future income, no of years of work, increments in salary what is also to be
taken in to account?
Inflation. Interest. Discount rate Compounding. 3
178 4
Vishal and sandeep applied for a health plan in XYZ Life Insurance Company. Vishal is asked to undergo a medical checkup but Sandeep is not
asked to do so. What will be most possible reason?
Sandeep has taken another policy from XYZ
Life Insurance Company Vishal is older than Sandeep Sandeep is earning more then Vishal Vishal is working in a MNC 2 179 4
Mr. Kul used to participate in Car race. While taking up the Insurance policy he disclosed this information. What kind of hazard does it refers to
Physical hazard Fraudulent
representation Moral hazard Peril 1
180
4 If the sum assured remains the same, what will be impact of net premium if the age of the policyholder increases
It rises It falls It remains
constant Gross premiums increases 3 181 4
For which of the following reasons, the underwriter should ask beyond
agent’s confidential report.
Physical Hazard Moral Hazard SA is too high Pure Risk 3
182 4
An insurance agent sold two policies to two different persons having the same policy term. He declares the commission to each of them. The commission of one of the policy is more than the other. What should be
the reasons for this difference?
Risk profile of both the policyholder are
different
Age of both the candidate are
different
One has chosen Single premium policy
and other has chosen regular premium policy Both have chosen different kind of policies. 4 183 4
Compound reversiory bonus of 4 % will be calculated on
Sum assured
Sum assured plus bonus till
date
Premiums paid till date
Sum assured minus bonuses
paid till date 2
184 4
A lien is generally used as a substitute to charging
a high premium for a high risk
for reduction in
sum assured 1
185 4
In a process of completion of an insurance proposal, an agent finds that the intention of the proposer was not genuine. In this case what should
the agent do?
Contact the Regulators Issue a wrong note Refuse to proceed Inform the insurer 3 186 4
The documents likely to provide the underwriter of an insurance company,
the details relating to the previous subject application, which have been
accepted as non-standard..
Quotation
Request Form Proposal Form
Policy
Document Claim Form 2
187 4
In a case, the underwriter felt that the risk associated with the person would decrease with time, then he would
accept the case with
A clause A Lien A Loading Level Premium 2
188 4 Maximum Life cover
20 times annual
salary 500000 1500000 4000000 1
189 4
What role an agent is likely to play in the process of underwriting?
To see that the proposal is accepted by the
underwriter at OR
To ensure that his client is not burdened with extra premium
To give truthful report to the
Insurer all about the life to
be insured
To see that the plan as proposed by the client is not
changed on underwriting 3 190 4 In insurance, HLV is a known abbreviated term. How the meaning
of HLV can best be described in relation to a income earning
proposer? Sum assured is the HLV of the proposer Yearly income is the HLV of the proposer Difference between the Assets and Liabilities is the HLV of the proposer Present value of the future earnings less persol expenses is the HLV of the proposer 4 191 4
Out of all the factors that affect the needs of different life stages of an individual, which is the most common factor that is likely to exist throughout
the life span of an individual?
Employment Age Marital Status Liability 2
192 4
While calculating HLV along with future income, no of years of work, increments in salary what is also to be
taken in to account?
1. Inflation. 2. Interest. 3. Discount rate 4.
Compounding. 3
193
4 Moral Hazard reflects the …….
1. Intentions and attitude of Proposer. 2. Habits and Hobbies of Proposer. 3. Occupation and Residence of Proposer. 4. Medical and Persol History of Proposer. 1 194
4 Income replacement methods
equates Human Life Value (HLV) to
1. Future value of Present earnings. 2. Present value of future earnings. 3. Present value of previous earnings. 4. Future value of previous earnings. 2
195 4 Agent will be called as…..
1. Primary Underwriter 2. Main Underwriter 3. Chief Underwriter. 4. Information Underwriter. 1 196 4
Mr. Rajesh has taken policy from ABC insurance company for Rs. 500000 Sum Assured by paying Rs. 50,000 premium per year. Company declared 5% Simple Reversiory
bonus, what is bonus amount?
1. Rs. 2500/- 2. Rs. 25000/- 3. Rs. 250000/- 4. Rs. 5000/- 2
197 4
The underwriter can get the required
information about the proposer in... 1. Proposal form.
2. renewal
198 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. 2 199
4 Lien is imposed on a policy when underwriter feels that...
1. the risk associated might increase 2. the risk associated might decrease 3. the risk associated might not be harmful 4. the risk associated might be general 2 200
4 What does the mortality tables contains ? 1. Tables of death occurring in various circumstances 2. Tables of details of various probabilities of death 3. Tables of details of underwriter’s calculation on death 4. Tables of details of actuarial calculation on death 4 201 4
Mr. Guptha is recently detected with lung cancer. He would like to take an insurance. What is your suggestion?
1. Time of death is uncertain, so insurance can be given 2. Only lung is affected so health insurance can be given. 3. He can take insurance after submitting health certificate 4. Cannot give insurance for health reason 4 202 4
Mr.Santhosh working as a head master who is around 52 years had requested for an Insurance cover for Rs.1 crore. He insisted that his brother’s son should be the nominee
not his wife. Underwriter will verify this case for which one of the
following: 1. A . Physical hazard, as he is old 2. B. Moral hazard, as he is 52 years old and wife is not the
nominee 3. C. Moral hazard, as coverage is high and brother’s son is the nominee 4. D. Moral hazard, as he is a head master and 52 years old 3 203 4
Mr.Feroz has applied for an insurance cover of Rs.4 crores. The
Company will accept or reject the proposal only after confirming from
one of the following agencies.
1. Fincial Inspection agencies 2. Specialized inspection agencies 3. Credit worth inspection agencies 4. Insurance Investigation Agencies 4 204 4
The responsibility for classification and alysis of the proposal form lies
with whom? 1. Risk Alysis Department 2. Classification of Risk Department
3. Underwriter 4. Actuary who alysis the risk 3
205
4 In underwriting the economic value of the person is determined by what?
1. The occupation of the person 2. The fincial history of his family 3. The income that he earns 4. Human Life Value 4 206
4 When an underwriter may consider Moral Hazard? 1. An individual is proposing SA 15 times his annual income. 2. Insurance is taken out by an individual with dependents. 3. A nominee is not a dependent. 4. A medical checkup is carried out nearby place of residence. 3 207 4
Level Premium is calculated based
on 1. Risk Premium. 2. Net Premium.
3. Loading of Premium. 4. Gross Premium. 1 208 4 MPL abbreviates 1. Minimum Possible Loss. 2. Major Possible Loss. 3. Minor Possible Loss. 4. Maximum Possible Loss. 4 209 4
What is generally considered as a substitute to charging a high premium
for a high risk?
1. Clause. 2. Assignment. 3. Lien. 4. Level
Premium. 3
210 4
Jyoti is submitting is copy of permanents account number card as age proof for buying an money back
plan .her age consider as a
1. Non Standard Age Proof 2. Standard Age proof 3. an Address proof 4. Proof of Income tax payer 2 211 4
Which one of the following bonuses is given by insurer as an incentive to the
insured to for long term:
1. Simple Revisiory bonus 2. Compound Revisiory bonus 3. Persistency Bonus 4. Interim bonus 3 Discuss 212 4
Ramesh bought an endowment plan for ten year he pays the same Amount
in every year is called:
1. Gross Premium
2. Level Premium
3. Risk
Premium 4. Net Premium 2
213
4 Which one of the following is not
source of information about the 1. Proposal Form
2. Insurance agent 3. neighbor of proposer 4. Medical of examition report 3
214 4
Manish being a sole earning member of his family not insured himself But looking for insurance for his son who
is student .there is possibility of
1. Physical
Hazard 2. Moral Hazard 3. Medical
4. No
underwriting 2
215 4
An underwriter accepts the proposal with certain modified terms and
coditions,What it denotes
Lien Counter offer Decline Postpontment 2
216 4
Loading in a term plan is more likely
beacause of Morbidity Mortality
Admin expenses Investment expenses 217 4
In case of lien,the risk will classified as per underwriting standards
better than average risk,at the early stage of
life
better than the average risk ,at the later stage of
the life
Higher than the average risk,at the early stage
Higher than the average risk at the later stage
of life
3
218 4
Sarath is the client and looking for large SA, and the proposal to be
certified in the context of confidentiality report with relavent to
moral hazard,who is concerned
person to do! ACR Sarath nominee
Superior of the Sarth's insurance agent Insurance company 3 219
4 If a person have motoring sport as hobby before taking insurance
policy,then what it implicates
Moral hazard is Sport and it influence the risk
of life motoring sport is risk and influences moral hazard motoring sport is risk and influences physical hazard motoring sport is a physical hazard and it influences risk 4 220 4
If a policy of term 30yrs is imposed
with lien, what will be the lien period 5 10 15 20 1
221 4
A gave an offer to B and B made changes to the same and returned it
to A. It will be called
modified
acceptance Counter offer Rectified offer
Rectified
Acceptance 2
222 5
Hari wants a constant life cover till his 31st birthday. But he cant afford to pay high premiums. The best suited
products for him would be
Pure Endowment Anticipated
endowment term plan ULIP 3
Insurance products
Term product is the simplest and the cheapest Insurance plan which gives Life
cover
Pg :112
223 5
At the time of maturity , quarter of the SA is paid though the policy was in
force
Endowment Lien Money back Surrender 3 Insurance
Products
In money back plan , payouts are given at fixed intervals called survival benefits .
Usually 25% of SA is paid in equal interval of the term
Pg :117
224 5
Weekly premiums are generally collected for which type/range of
palns
Banca assurance Health plans Micro
Insurance Term Insurance 3
Micro Insurance
Micro Insurance is for Low Income Group . Product ranges from 5K to 50 K Pg:113
225 5
Mr A is planning to invest and his needs are :1 Protection for is Income ,
during his absence 2.children education
Children Plan Retirement Plan Ulip Plan Term Insurance 3 Protection
Needs
Term Insurance will help in protecting the
future loss of Income Pg :109 Discuss
226 5
What tax rate,if any,will be applicable to a life insurance policy holder for the maturity proceeds of a Rs 5000 life
insurance policy
Nil 10% 20% 30% 1 Tax & Inflation The Proceeds of Life Insurance are
exempted under Sec 10 (10D) Pg :118
227 5
A policy holder can pay the premium of Rs 5,00,000 and what could be the
max tax efficiency he is entitles to
500000 50000 100000 300000 3 Tax & Inflation
Under Sec 80 C , the max Amount under Tax deduction through Life Insurance
premium will be Rs 1 Lk
Pg 118
228 5
Ram has Invested Rs 5000 in PPF & Rs 1 Lakh in Life insurance premium . In which he will get maximum Tax
Benefit Life Insurance Premium PPF 50% on each 95% on Life Insurance Premium & 5% on PPF 1 Tax Implications
Under Sec 80 C , the maximum deductible Income from tax in a given
year is Rs 1 Lk .
229 5
Mr.Sumesh takes a policy and pays premium of 20000 with a sum assured
of 300000, what will be the tax implication on his maturity amount
Fully taxable 10% 20% Tax fully
exempted 4
Tax Implications
The premium should be 20% or less than 20% of the SA to avail the tax benefit of
Sec 10 10 d
Pg :118
230 5
without submitting any form of claim,a life insurance policy holder received payments of survival then what type
of policy he is holding
ULIP Term Money Back Health 3 Types of Plans
Partial Survival Benefits are paid at fixed intervals without any formalities to be
completed by the Policyholders
Pg :117
231 5
what is the special feature of ulip that ensures customer risk profile for long
time insurance policies
fund switching partial with drawl premium
holiday riders 1 Ulip
Ulip offers protection with Investment and flexibilities to mage the Investment to the
customers
Pg :116
232 5
Kamal is willing to pay 60000/- per annum for his ULIP policy. What should be the SA in case he wants to
avail the tax benefits
1 lac 3 lacs 2 lacs 1.50 lacs 2
233 5
Suresh is suffering from Asthma and the policy in been done on joint life basis and the need for nomition under
the plan is less as
Joint life policy Has physical
ailment 1
234 5
After maturity In a Unit Linked Life Insurance Policy, customer does not get received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity
plan
He has switched his fund
He has opted for Settlement option He has redirected his past premium Policy was lapsed on the time of maturity 2 235 5
A customer gets periodic benefits without any claim and then when he dies during the term of the policy, his nominees gets the sum insured. What
type of policy is this ?
Endowment Term Money Back Whole of Life 3
236 5
For assessing the risk of a group health insurance policy, which of the
following information is the most critical
Group lifestyle Employees Age of the group
Medical history
of group 3
237 5
Rakesh wants to buy a policy primarily for Risk Cover but at the end
of the term he wants to get at least some return. Under which policy he
will get these benefits
Endowment plan ROP plan Whole life plan Ulip 2
238 5
Prashant buys an Endowment Plan with a sum assured of Re. 100000 and wants to make use of tax benefit
under the policy for whole SA. How much premium would help him avail
this benefit
Less than 10000 More than 10000 Less than 20000
More than
20000 3
239 5
What is the ceiling of tax exemption
under 80 c. 1 lakh 1.5 lakhs 2 lakhs 3 lakhs 1
240 5
The agent can use the benefit illustration document to show the
client the projected growth of investment at the rate of –
6% and 10% 5% and 10% 6% and 12% 5% and 12% 1
241 5
Suresh has adequate reserve capital with him and he wishes to protect his income, moreover he feels that if he does not die then he would need the amount. What type of plan should he
opt for?
Term Insurance
Plan Endowment plan
Return of
premium plan Pension plan 3
242 5
Frequent switching is not advisable in
ULIP plan because it increase Investment Risk Risk of death
Uncertainty of return
Chances of
243 5
Mr. Kartik got a job recently, he can’t afford to pay to pay the higher premium as of now but in future once
he settles down with his job he can pay higher premium. Which one will
be the best plan?
Convertible Endowment plan Convertible Term plan Convertible pure Endowment Convertible money back plan 2 244 5
What is the minimum Sum Assured
allowed for Micro Insurance? 5000 10000 15000 20000 1
245 5
Pick the wrong answer. In a child plan: Deferred date is a policy anniversary. On vesting date policy has to be assigned to the life assured. After vesting the contract is between the insurer and the
life assured.
Deferred date is date on which the risk
commences. 2
246 5
Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness before maturity?
1. Nil 2. 10% 3. 20% 4. 30% 1
247 5
For assessing the risk of a group health insurance policy, which of the
following information is the most critical
1. Group lifestyle 2. Employees 3. Age of the group
4. Medical history of group 3
248 5 Term Insurance Plan will give….
1. Only Death Benefit. 2. Only Maturity Benefit. 3. Only Bonus Benefit. 4. Only Tax Benefit. 1
249 5 Low risk products give….. 1. High Returns 2. Low Returns
3. Moderate Returns
4. Good
Returns 2
250
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 2 251 5
Mr. Shanth has got a pure endowment policy for 30 years for the sum assured of Rs. 75,000,00/-. It can be
paid to him...
1. when he dies 2. when he survives the term
3. when he is hospitalized
4. when he
loses his job 2
252 5
Flexibility like partial withdrawal and taking premium holidays is possible
with....
1. Fixed deposits 2. Unit linked Insurance plans 3. Term Insurance 4. Endowment plans 2 253 5
Mr. Varun who own a multi chain company would like to take an insurance. What will be the best option for him from the following ?
1. He can take Surety insurance 2. He can take Business Partner insurance 3. He can take Key man Insurance 4. He Can take company insurance 3 254 5
Mr. Kumar decides that his employees should have SSS scheme.
What type of plan is SSS?
1. Salary saving Life plan 2. Not a specific plan 3. Salary insurance plan 4. Salary Specific plan 2 255 5
Manmohan has recently purchased a house worth ` 50, 00,000 on loan. Which insurance product you as an
adviser will suggest?
1. Endowment Plan.
2. Money Back Plan.
3. Whole Life
Plan. 4. Term Plan. 4
256 5
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
257 5
Rakesh has bought an Endowment, Money back, Term & Annuity Plan he
would like to avail Loan from:
1. Endowment
Plan 2. Term Plan
3. Money Back
Plan 4. Annuity Plan 1
258 5
In Group insurance plans contract of insurance between …………?
1. Master Policy holder & insurer
2. Employer & Employee 3. Employee & Insurer 4. Creditors & Debtors 1 259 6
The best way to overcome the problem of investment decision depends mainly on peer influence is
By Canvassing wide peer group
Seeking professiol advise Go for a low investment tranchee Postponement of investment decision 2 Benefits of Professiol Advise
A agent is a Professiol and gives Need
based Solutions Pg :128
260 6
A person who has a temporary job Loss , where should he look for
Investing other than FD
Debt Funds of
MF Govt Securities Equities Gold 1
Emergency funds
Investment for emergency funds should be invested in saving products that offer easy liquidity and can be converted to
Cash without much loss in value
