IC33 Exam Questions

1. Rishi is about to take a money back policy. At what stage he is allowed to make nomination under the nomination facility of the policy? a) b) c) d) 2. At the outset of the policy At the time of policy anniversary At the time of outset and last policy anniversary At any time

Consensus ad idem specifically describes which feature of a valid contract? a) b) c) d) Capacity to contract Direct contact with each other Same understanding Consideration

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What does a life insurance company save on while selling products exclusively through online? a) Commission b) Income Tax c) Marketing Cost d) Reinsurance premium When can an insurance agent suggest a Young Married Couple to purchase a ULIP policy? a) Young Married Couple with single income no children b) Young Married Couple with double income no children c) Young Married Couple with children and double income d) Young Married Couple with children and single income If RBI increases the interest rates, the effect on share prices will be a) More volatile b) More attractive c) Less attractive d) More profitable During investment diversification; an individual holds 100 units in gold Exchange Traded Funds. How much grams of gold does he have? a) 5 or 10 grams b) 10 or 20 grams c) 20 or 50 grams d) 50 or 100 grams In convertible policy; when can a policyholder Free look his policy? a) After receiving First Premium Receipt b) Any time during the term of the policy c) After receiving the Policy Document d) At the time of First Policy anniversary

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Insurance companies are required to honor the awards passed by the insurance Ombudsman within how many days? a) 10 days b) 15 days c) 20 days d) 25 days

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Which is the valid reason for an underwriter to impose a lien? a) An average risk because of occupation risk b) Lower than average risk because of occupational risk c) Higher than average risk due to physical characteristics d) To charge higher premium from Insured

10. Suresh Sharma has paid 8 early premiums for a 30 year endowment plan having sum assured of 800000. The bonus accrued in the policy is 60000. Calculate the paid value of the policy. a) 217235 b) 272153 c) 273435 d) 273333 11. When another party wants to settle the claim on the behalf of an Insurer; it is called as: a) IRDA b) Second Part Administrator c) Third Party Administrator. d) Life Insurance Council 12. If the persistency of an Insurer increases from 83% to 86% then the key feature behind it would be: a) Policy is sold to wealthy customers b) The number of surrender and lapsation of policies is less c) Agent is earning higher commission d) Company is earning higher profits 13. What is the key differentiator between the Recurring Deposit & Cumulative Deposit taken by a customer from ABC bank? a) The amount invested. b) The taxation c) Time period. d) The payment of interest. 14. As per the Insurance Act 1938, which of below institution formed? a) b) c) d) Tariff Advisory Committee NIA National Insurance Academy IRDA Charted Insurance Institute

15. According to the Insurer; the Authenticity of an Assignment depends upon: a) b) c) d) The type of policy A separate deed The type of Loan The receiving of notice

16. A complainant can lodge a complaint to Ombudsman: a) b) c) d) After 2 years from the date of rejection of his complaint by the Insurer 6 months after the complaints made to the insurer After One month of rejection of his complaint by the insurer Any time whenever the Complaint wishes

17. Insurance companies are required to honor the awards passed by the Insurance Ombudsman within: a) 10 Days

b) 15 days c) 30 days d) 180 days 18. Why does any insurance company require an age proof from the customer? a) Its a mandatory requirement. b) To evaluate the risk c) To improve persistency d) To avoid adverse selection 19. If a person gets involved in a dangerous Sport Activity, before the issuance of policy, which statement is true in terms of Peril & Hazard? a) b) c) d) Peril will increase the risk of Physical Hazard. Physical hazard will increase the risk of Peril. Peril will reduce the risk of Physical Hazard Physical Hazard will reduce the risk of Peril.

20. If central Govt. decides to supersede the IRDA, then the Govt has to: a) Appoint Additional Directors b) Issue a notification c) Form another Regulatory Body. d) Seek approval from SEBI 21. Manoj & Rakesh both buy an endowment plan for the same quarterly premium and same SA. Both surrender the plan after the same number of years, but Manoj gets a higher Surrender Value as compared to Rakesh. This is because a) Rakesh bought the policy for a longer term b) Manoj bought the policy for a longer term c) Manoj disclosed all material facts d) It is a calculation error 22. Rajat and Ramesh buy a health plan with same premium but Rajat gets more tax advantage. The reason could be a) Rajat is more than 65 years of age and Ramesh is less than 65 b) Rajat is an NRI and Ramesh is not c) Rajat has better health than Ramesh d) Ramesh is richer than Rajat 23. A claim has been given for an accidental benefit rider. It will be a) Life time annuity b) Lump sum money c) Less lump sum money + lesser annuity d) Annuity for some period only 24. After issuing a policy; it was found that the age admitted was 3 years lesser than the actual age. In such a scenario: a) The contract would becomes void b) The contract would becomes voidable c) Higher premium would be charged d) Age proof would not be required 25. Looking at persistency, what does an agent need to do if the policy is on an annual mode rather than in the monthly mode: a) Explain the client about the charge structure b) Remind the client about premium payment

c) Give the client a choice of different modes of payment d) Advice the client to buy another policy 26. In case of insurance, consideration refers to: a) Premium paid b) Insurance acceptance c) Age d) Tenure of policy 27. In ULIPs the agent commission is reflected in: a) Benefit Illustration document b) Policy document c) Product brochure d) Proposal form 28. The guaranteed and nonguaranteed values to be depicted in the Benefit illustration are in accordance with regulation issued by: a) Insurance Regulatory Development Authority b) Life Insurance Council c) IIRM d) Insurance Institute of India 29. In case the limit of risk of an insurer exceeds, he can opt for: a) Reinsurance b) Underwriting c) No claim d) Non payment of bonus 30. Arun is a nodal officer in an insurance company. His job involves a) Addressing customer grievances b) Deciding the premium to be charged c) Imparting training d) Looking after sales 31. While calculating the retirement corpus needed for an individual besides taxation and tenure; the other factor that needs to be considered is a) Inflation b) Insurance c) Contingency fund d) Disposable income 32. While calculating the retirement fund needed by Akhil, the agent does not consider the Gratutity element. This is because Akhil is: a) Public sector employee b) Private sector employee c) Self employed d) Salaried employee 33. The underselling of insurance is considered detrimental because: a) Financial benefits will not be compensated fully b) Insurance will have no effect c) More policies cannot be sold at a later stage d) The insurance cover is given a lower premium 34. In case of a self employed person it is important to know the work of the person because: a) It helps in classifying the risk b) It helps in determining moral hazard c) It helps to determine approximate timing of death

d) It helps to determine chances of disability 35. During fact-finding, two needs were identified as margin money and planning for retirement. Which of the two should be given preference? a) Margin Money b) Retirement c) Current Age and Priority will decide about given preference d) Customer wants will decide the preference 36. An agent does fact finding for a married couple with 09 year old child. The agent identifies that they need Life Insurance Protection, Child Insurance, Pension plan and Health Insurance. Which of them should be given least preference? a) Child Plan b) Pension Plan c) Health plan d) Life insurance 37. If in an endowment participating policy 4% compounding bonus is declared after some years. What will be the amount of bonus declared? a) 4% of basic sum assured amount b) 4% of basic sum assured + bonus for premium years c) 4% of accrued bonus + bonus for previous years d) 4% of basic sum assured+ accrued bonus 38. Ajay took an insurance plan of sum assured 3 lakhs and premium 20000. After maturity, what amount of tax will Ajay have to pay? a) 10% of total sum assured b) 30% of total sum assured c) 40% of total sum assured d) Nothing 39. To attain higher persistency value what actions would be useful for annual mode: a) Reminder for renewal premium b) Easy credit facility for renewal c) Annual account statement d) Premium payment by agent

40. What is the FDI Limit in the insurance sector? a) 50% b) 75% c) 26% d) 33% 41. In a Term plan, if permission is taken from insurer how much rebate can be offered to the customer by Agent: a) 50% of your commission can be offered as rebate b) 25% of commission can be offered as rebate c) No rebate can be given d) Will depend on age of proposer 42. If both mother and father of the proposer die before the age of 30 due to heart diseases, it is a case of: a) Moral hazard b) Physical hazard c) Financial hazard d) Occupational hazard

43. Six months after the issue of policy; if it is found that the insurable interest did not exist then the contract is: a) Void b) Voidable c) Rejected d) Invalid 44. If a policyholder complaints to the ombudsman that the insurer is not doing justice to him. In how many days ombudsman should give their recommendation? a) b) c) d) 30 days 60 days 90 days 120 days

45. Most probable reason for product churning by an insurance agent could be: a) For the benefit of the policy holder so that their goals are complete b) For giving the policy holder more insurance products c) For earning extra commission d) For giving the policy holder more insurance cover 46. If premium was not paid on due date and the insured dies during the grace period. The claim a) Will not be paid as policy has lapsed b) Will be paid c) Will be paid after deducting the premiums due d) Payment shall be at the discretion of the insurer 47. If Renewal Terms of health insurance policy is accepted; then it is a) A new contract b) Renewed contract c) Endorsement is placed on contract d) Clause are put in contract

48. If a claim is delayed by an insurance company in spite of customer depositing all necessary paper work within 15 days as required; then the company needs to pay interest on that. If prevailing bank rates are 5.3% than the payment to customer will be a) 7.3% b) 6.3% c) 5.3% d) 8.3% 49. In case an insured dies within a few months of the commencement of the policy; then which of following will be closely scrutinized: a) Premium payments b) Assignment details c) Nominee details d) Disclosure details 50. A widow applies for a claim that gets rejected. Apart from approaching the ombudsman she can approach a) An IRDA authorized Lawyer b) The District Court c) The Insurance Company d) The Reinsurer

51. Ravi is not convinced with the premium offered. As an agent, how much maximum discount can you give to convince Ravi? a) b) c) d) 5% of the first year commission 10% of the first year commission 15% of the first year commission No discount can be given

52. Suresh recommends a child plan to Mitali after a need analysis. Mitali disagrees with the offered plan. What will be the next step? a) Enquire about the reason for disagreement b) Suggest another plan c) Ask for future date d) Explain that this is the best plan 53. Under a term of 20 years, when will the persistency bonus be paid? a) After each year b) After 05 years c) After 10 years d) After 20years 54. Peter Rodriguez completes the proposal form and hands it to the agent- Guneesh. Guneesh asks Peter for his College Records as a proof to certify his age. Peter somehow was unable to find them. But Peter brought something that Guneesh accepted as a standard age proof document. What could this be? a) His Horoscope prepared at the time of birth b) A ration card c) A certificate of a name given at ceremony in a church d) A certificate from the village panchayat 55. When can an insurance company give more than 35% first year commission? a) When the Insurance Company is in the first 15 years of operation. b) If the agent has worked with the company for more than 10 years c) If the agent is performing exceptionally well. d) When the insurance company is in the first 10 years of operation 56. Which institute is concerned with training, education, research and publication in insurance and risk management? a) IRDA b) National Insurance Academy (NIA) c) III d) LIC 57. Person comes back to previous comfortable financial position after suffering with a loss this is because of the following insurance Principle : a) Proximity, b) Insurable Interest, c) Utmost Good faith, d) Principle of Indemnity

58. Ration Cards and Baptism certificate are considered as: a) Standard Age Proof b) Non Standard Age proof c) Standard and non standard age proof respectively.

d) Non Standard and standard age proof respectively. 59. If a lien will apply it would lead to: a) Decrease in Premium. b) Increase in Premium. c) Decrease in Claim amount.

d) Reduced Sum Assured 60. NIAs main work is : a) Calculating Premium. b) Conducting Exams. c) Training.

d) Give Certificates of Insurance.

61. If a person makes up his mind to purchase the Kisan Vikas Patra, he should ideally contact a) b) c) d) Asset Management Company Share Market Insurance Company Post Office

62. Sahil & Vijay buy an insurance plan for same SA , but only Vijay was called for medical examination .Why? 1. 2. 3. 4. Vijay is younger than Sahil. Vijay is elder than Sahil. Sahil has Kids & Vijay has No Kids. Sahil is Self Employed

63. In a sales call the agent identifies that customer needs health plan, what will a) Do a proper fact-finding b) Making Recommendation. c) Assessment and Analysis. d) Quantifies the Monetary term. 64. Under COPA the maximum amount that can be heard at the district level is, a) b) c) d) 20,00,000 80,00,000 10,00,000 50,00,000

be the next step,

65. Teja wants to get a low cost insurance cover, which Plan should he go for. a) Term Plan. b) ULIP Plan. c) Money Back Plan.

d) Endowment Plan. 66. A person has taken a lien. In which Part of the Policy Document will it be mentioned? a) b) c) d) Proviso Schedule. Preamble Terms and Conditions.

67. If a 15 year old child enters into a contract, the contract is said to be: a) b) c) d) 68. Voidable Null & Void Nil Indisputability Clause.

A Person receives Discounted Claim in the context to: a) Profit in Policy. b) Duration of Policy. c) Timing of Maturity d) Interest

69. Which need of the customer should be on the top priority? a) b) c) d) Protection Needs Investment Power of Compounding Premium and SA

70. A person age 28 yrs is looking for Term plan, Health Plan, Endowment Plan and Child Plan. Which Plan is the most Important for him: a) Health Plan.

b) Endowment Plan. c) Child Plan.

d) Term Plan. 71. ABC Insurance Company gave more than 35% Commission to the Agent this was because of : a) Insured age was more than 60 Years. b) Company Generated extra Profit. c) Company is in initial 10 Years of its operation. d) Insurance Company sets its own rule.

72. In a Pension Plan 4.5% Guaranteed Return is fixed in which type of Policy: a) Pure Endowment Plan. b) ULIP Plan. c) Money Back Plan. d) Endowment Plan.

73. Who took over Controller of Insurance? a) SEBI b) IRDA c) RBI d) Central Government 74. Customer paying Rs. 5,00,000 annual premium in ULIP policy from ABC life Insurance company. How much tax benefit he can have in this ULIP policy? a) Rs. 500000 b) Rs. 100000 c) No Tax Benefit d) Rs. 50000 75. Rajesh wants to invest Rs. 50000 annual premiums in ULIP & Suresh want to invest the same amount in EPF Scheme, for having tax benefit. What tax benefit Rajesh & Suresh will make? a) Both will get same benefit b) Only Rajesh will get tax benefit c) Only Suresh will get tax benefit d) Both will get but up to the limit of Rs.80000 76. General Insurance is a contract of indemnity thats why life insurance is described as a: a) Valid Contract b) Specific Contract c) Value Contract d) Void Contract 77. What is the date of the policy commencement? a) When FPR is issued b) When child reaches the age of 18 c) When customer signs the proposal d) When customer assigns the policy 78. Mohan is looking for a life insurance for which he is not wishing for any life cover but wants to have lump sum at maturity. Which plan will you suggest him? a) Term Plan b) Whole Life Plan c) Pure Endowment Plan d) Endowment Plan 79. In Life Insurance, Whole Life Plan is a a) Indemnity plan b) Life Insurance Contract c) Post Insurance Contract d) Valid Contract 80. What all modes are available in an Annuity Plan? a) Monthly, fortnightly, quarterly, half yearly b) Fortnightly, monthly, yearly, annually c) Annually, quarterly, monthly, Fortnightly d) Monthly, quarterly, Half Yearly, Annually

81. As per IRDA Regulations, in how many days an insurer has to settle the claim? a) 20 Days b) 30 Days c) 40 Days d) 50 Days

82. While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account? a) Inflation. b) Interest. c) Discount rate d) Compounding. 83. In case of many nominees, how much percentage should be defined amongst the nominees for the claims? a) 10 % for each nominee b) Equal sharing will be done c) No Specific limit defined d) Elder member of the family will decide about sharing 84. Mohan died after 7 months when policy started. ABC insurance company has rejected the claim. As per you what could be the possible reason for the rejection of claim? a) Murder b) Suicide c) Presumption of Death d) Missing 85. According to insurance terminology which of the following is correct? a) Lung cancer is a hazard whereas smoking is a peril b) Smoking is a hazard and lung cancer is a peril c) Lung cancer is a peril and smoking is a moral hazard d) Smoking is a moral hazard whereas lung cancer is a peril. 86. If an insurance company or individual purchases insurance, it means that they want to a) Retain the risk b) Save some money c) Transfer the risk d) Tax benefit 87. If an agent is allowed to apply for fresh license after being disqualified from an authorized designator, this could have happened because a) He has paid the fees of Rs. 2000 b) He would have cleared the examination c) His conviction of 5 years would have passed d) He must have applied in different insurance company 88. Customer has opted for 5 yrs guaranteed annuity option. What will happen to annuity, if the customer survives for 5 years after the end of guarantee period? a) paid up to 75 Yrs b) annuity will be continued for next 5 Years c) till he die d) not remembered 89. Maximum tax benefit under sec 80 C, allowed to a person purchasing life Insurance is a) 50000 b) 100000 c) 200000 d) 500000 90. Ajay is married with 2 kids 2 years and 4 years. After fact finding it is found that Ajay has few needs like Income Protection, child Education, health & pension etc. for which he has no cover so far. As an agent what you will suggest as his lowest priority? a) Health Plan b) Child Education Plan

c) Life Insurance Plan d) Pension Plan 91. Only a quartile of sum assured is paid to a person on maturity, while the entire premium was paid and up to date, this is because of: a) Term Plan b) Endowment plan c) Money Back plan d) ULIP 92. What is the need of doing the Fact Finding Analysis of a Customer: a) To ensure and Increase Sale b) Correct Need Analysis c) To follow IRDA Guidelines d) To relate the Monetary benefits 93. Anju is married with Akhilesh, they want to secure their unearned income, which plan should be suggested to protect Income: a) Endowment Plan b) Term Plan c) Children Plan d) Limited Pay Plan 94. Anshu is married with Ankita and they have two kids and his Parents are in Sixties, which of the following plan they can opt for jointly? a) Family Medical Plan b) Marriage Endowment Plan c) Money Back Plan d) Whole Life Plan . 95. Rohit died and was paid the claim, which was less though he had paid all the Premiums on time, what is the reason for the same? a) Lien was applied to the Policy b) Term plan was taken c) ADB Rider was attached d) Policy was affected due to Moral Hazards 96. The time period within which as per the IRDA Guidelines the Insurer have to intimate the Insured and compete the extra documentation formalities as required for passing the decision of proposal acceptance is: a) 10 Days b) 12 Days c) 15 Days d) 20 Days 97. Amit has got a maturity amount at the end of the Policy Tenure and that is 1/4 of the Risk Covered, this is due to: a) Terminal Bonus b) Money Back c) Full Disclosures d) Riders attached 98. An agent sells two insurance policy and the premium amount is identical but he gets lesser commission in one of contract the reason is likely to be a) one policy has more SA b) ONE POLICY has more term c) one policy is a single premium d) One of the policy has higher Premium

99. A claim was submitted, in how many days company should ask for additional documents if required a) 15 days b) 10days c) 20 days d) 30 days

100. Investment by NRI(Non Resident Indian) will be: a) b) c) d) No risk Low risk Medium risk High risk

101. While Underwriting Mr X proposal, it is found that there has been CRIMINAL case against him in fraudulent act. What type of Risk this will be categorized Into? a) b) c) d) Fraudulent Hazard Occupational Hazard Physical Hazard Moral Hazard

102. Who is the primary underwriter of the customer? a) b) c) d) Underwriter Insurance company Agent Actuary

103. A person wants to invest in a FD for Tax benefit, How many years he has to take the term of the FD? a) 5 year b) 4 year c) 3 Year d) 2 Year 104. Ramesh has invested in Post office Monthly Income Scheme. The interest rate was set at 6%. What will be the effect of rate in going years? a) b) c) d) Increase gradually Decrease gradually Remain Constant Change as per market fluctuation

105. Yash wants to take open market option in Pension plan. What is the benefit? a) To save tax b) To switch the underlying fund c) For improved annuity rate d) To continue life cover

106. Commutation option allows the annuity policy holder to with draw a) 25% b) 50% c) 40% d) 33% 107. Mohit has two kids, one of 6 years and other 8 years. He is the earning member and not having life cover. Before advising him to take health policy, what he should be advised? a) b) c) d) Health policy for child Health policy for wife Life insurance policy for wife Life Insurance policy for himself