Revised IC 33 Questions

Chapter Weightage Questions/chapter Questions Available

No. Given in Exam Expected in Qbank
Ch 01 6% 3 22
Ch 02 6% 3 29
Ch 03 18% 9 63
Ch 04 8% 4 49
Ch 05 4% 2 42
Ch 06 10% 5 31
Ch 07 8% 4 57
Ch 08 6% 3 29
Ch 09 4% 2 19
Ch 10 8% 4 16
Ch 11 8% 4 32
Ch 12 2% 1 17
Ch 13 4% 2 23
Ch 14 4% 2 26
Ch 15 4% 2 19
Total 100% 50 474
 Revised
syllabus Correct
S.No Questions Ans Option 1 Ans Option 2 Ans Option 3 Ans Option 4
Chapter option
No.
If a client wants to compare between all financial products then the best person he
1 Ch 1 1. Individual agent 2. Corporate agent 3. Bank 4. Broker 4
can approach is
In life insurance business if a person is working in calculating premium rates of 1. institutes of actuaries 2. insurance institute of 3. Charted institute of 4. Insurance institute of
2 Ch 1 1
insurance products, then he is mostly likely a member of of India India insurance risk management
2. CI benefit reduced
In term insurance if Critical illness rider claim happens then what will happen to
3 ch 1 1. CI benefit will cease from existing sum 3. CI benefit continues 4. No change in policy. 1
existing policy
assured
If insured gets the two advance payment in the 5yrs and in the maturity he gets rest
4 ch 1 1. Money back policy 2. Convertible plan 3. Term plan 4. Endowment policy 1
of sum assured. What type of policy it is
The concept of indemnity is based on the key principle that policyholders should be 1. Insuring existing 2. Making false 3. Paying excessively for
5 Ch 1 4. Profiting from insurance. 4
prevented from losses. insurance claims. insurance cover.
For assessing the risk of a group health insurance policy, which of the following
6 ch 1 1. Group lifestyle 2. Employees 3. Age of the group 4. Medical history of group 3
information is the most critical
If 5% bonus is given every year then for a SA of 1 lakh, what will be the payout after
7 Ch 1 1. 60000 2. 75000 3. 100000 4. 5000 2
15 years in a simple revisionary bonus system?
8 Ch 1 How many days does the Free Look Period last? 1. 15 days 2. 30 Days 3. 45 days 4. 60 Days 1
9 Ch 1 The Ombudsman‟s powers are restricted to insurance contracts of what value? 1. 1Lakh 2. 10 Lakhs 3. 15Lakhs 4. 20 Lakhs 4
1. Endowment and 2. Life and General (non-3. Government and 4. Health and Saving
10 ch 1 Insurance Market divided into 2
Money Back Insurance life) Insurance Private Insurance Markets Insurance Markets
1. Giving insurance 2. Selling insurance 3. Giving guarantee to
11 ch 1 What is Bancassurance? 4. None of the above. 2
policies to Banks. policies through Banks. policies by Banks.
1. One party makes an 2. One party makes an
3. One party makes an 4. One party makes an
offer which the other offer which the other
12 ch 1 A contract comes into existence when……… offer where other party offer which the other party 1
party accepts party put extra
gives counter offer. receives the offer.
unconditionally. conditions.
1. Client and Insurance 2. Insurance Company 4. Insurance and Re-
13 Ch 1 An insurance agent is intermediary between…. 3. Client and IRDA 1
Company and IRDA insurance company.
14 Ch 1 Which of the following do not include the channel of indirect marketing? 1. individual agents 2. bancassurance 3. insurance brokers 4. through internet 3
1. physical values of 2. economic values of 3. metaphysical values of
15 Ch 1 The business of Insurance is connected with................ 4. market values of assets 2
assets assets assets
3. the timing of death is
16 Ch 1 Human beings need life insurance because.................. 1. death is certain 2. death is uncertain 4. Death is the solution. 3
uncertain
17 Ch 1 Life insurance the risk is determined on the basis of .......... 1. future data 2. past data 3. statistical data 4. mathematical data 2
18 ch 1 Life insurance company determine the level of risk based on 1. Future expenses. 2. Claim experiences. 3. Present expenses. 4. Targeted bonus rates. 2
1. Using the same pool 2. Using different pool 3. Using the same pool for 4. Using the same pool for
19 ch 1 In Insurance terms, pooling of risk is for paying claims of car for paying claims of life paying claims of life & paying claims of life 4
& life insurance. insurance. house insurance. insurance.
1. Life, Non –life, Micro 2. Life, Non Life, 3. Life, Non life, Re- 4.Life, Health, Micro
20 Ch 1 Insurance business is classified into three main types: 3
Insurance. Miscellaneous insurance. Insurance
Amit is looking for term insurance plan for protection of his family, he is advised to
21 Ch 1 1. Property Insurance 2. Life Insurance 3. Health Insurance 4. Liabilty Insurance 2
approach to:
Insured can contact to seek the resolution of grievances they have against insurer to 1.Complaint@gov.ird1.i 2.insurancecomplaints
22 Ch 1 3.irdacomplaints@gov.in 4.Complaints@irda.gov.in 4
IRDA through: n @irda.gov.in
1. Perils are medical
2. Perils are risks that 4. Perils are factors which
factors which influence 3. Perils are factors which
policyholders will die could influence an insured
the risk of dying and affect the risk being
before a specified date event occurring and
23 Ch 2 How are perils and hazards normally distinguished under term insurance policies? hazards are lifestyle insured and hazards are 2
and hazards are factors hazards are the actual
activities which the size of the risk being
which could influence events which will trigger a
influence the risk of insured.
that risk. payout
dying.
The Institute of insurance and risk management along with insurance education does
24 Ch 2 1. Regulation 2. Redressal 3. Research 4. Repository 3
what more
Mr. Kunal used to participate in Car race. While taking up the Insurance policy he 2. Fraudulent
25 Ch 2 1. Physical hazard 3. Moral hazard 4. Peril 1
disclosed this information. What kind of hazard does it refers to representation
2. Maintaining insurable
26 Ch 2 Law of large numbers is worked out by which of the following? 1. Pooling of risk 3. With utmost good faith 4. Randomness 1
interest
With pooling of risks an insurance company pools the premium collected from several
1. Under no 2. Under conditions of
27 Ch 2 individuals to insure them against similar risks. At what circumstances will the 3. As directed by actuary 4. As per company policy 1
circumstances the reinsurer
insurance companies pool the risk of a life insurance and health insurance together?
1. Lung cancer is a 2. Smoking is a hazard 3. Lung cancer is a peril 4. Smoking is a moral
28 Ch 2 According to insurance terminology which of the following is correct? hazard whereas and lung cancer is a and smoking is a moral hazard whereas lung 2
smoking is a peril peril hazard cancer is a peril.
29 Ch 2
30 Ch 2 What is the main objective of taking the life insurance policy? 1. Tax benefit 2. Savings 3. Investment 4. Protection 4
Suresh is suffering from Asthma and the policy is been done on joint life basis and the
31 Ch 2 1. Joint life policy 2. Not Possible 3.50:50 4.Not Applicable 1
need for nomination under the plan will be as
32 Ch 2 What is the maximum sum assured under a micro insurance 1. 10000 2. 25000 3. 50000 4. 100000 3
33 Ch 2 Available Loan amount under a life Insurance policy is generally based on 1. Total paid premium 2. Sum Assured 3. Surrender value 4. Paid up value 3
1. At the time of taking 3. At the time policy 4. At the time of taking the
34 Ch 2 In case of life insurance, the insurable interest should exist 2. At the time of claim 1
the policy matures policy & claim
1. Life and non life 4. Nonlife and life
35 Ch 2 Health insurance rider and critical illness rider in classified under 2. Both life insurance 3. Both non life insurance 2
respectively respectively.
Mr. shailsh has an endowment policy with 30 years policy term, he has paid for eight
36 Ch 2 years. The sum assured Rs.8,00,000/- and accumulated bonus Rs.60,000/-. What is 1. 213333 & 273333 2. 213333 & 229333 3. 229333 & 273333 4. 229333 & 293333 1
the paid up value if bonus accumulated and if not bonus accumulated?
Under the IRDA guidelines for Claim settlement, any queries or additional documents 1. 5 days from the 2. 10 days from the 3. 15 days from the
37 Ch 2 4. 20 days from the receipt 3
can asked from the claimant within receipt receipt receipt
38 Ch 2 Mr. Shyam is having 9 year old child. Which product is not to be given priority? 1. Health plan 2. Child Plan 3. Life Insurance 4. Retirement Plan 4
Vijay received his policy bond on 11th June, 201 Due to some personal problems he 1. No, as 15 days period 2. Yes, as it is within 1 3. No, as 20 days period 4. Yes, as it is within 3
39 Ch 2 1
has decided to cancel the policy on 8th July, 201 Can he cancel or return the policy? is over year is over months
40 Ch 2 Ombudsman has to give his decision within how many days? 1. 15 Days 2. 30 Days 3. 2 Months 4. 3 Months 2
41 Ch 2 The “Risk” contains…. 1. Peril and Hazard 2. Level 3. Uncertainty 4. All of the above. 4
42 Ch 2 Grouping the similar risks by Insurance Company is called as…. 1. Grouping of Risk 2. Risk Grading 3. Risk Assessment 4. Pooling of Risk 4
43 Ch 2 The function of Insurance works on….. 1. Risk Transfer 2. Risk avoid 3. Risk retention. 4. All of the above. 1
Mr. Mahesh is a software engineer. He has taken a term insurance for Rs. 30,000,00/-
44 Ch 2 1. Risk retention 2. Risk transfer 3. Risk avoidance 4. Risk tolerance 2
for 30 years. This is an example for-----------------
1. a family history of 2. a person working in a 3. a person consuming 4. A teacher working in a
45 Ch 2 Which of the following can be an example of moral hazard? 3
heart disease chemical factory alcohol primary school.
3.Is possible by
1. Retaining the 2. Not possible as life 4.Is possible by Re-
46 Ch 2 Which one of the following is possible in retaining the risk? transferring risk to the 2
ownership in the policy has many risks. insuring oneself
policy holder
th
On 6 August there was a typhoon. Mr.Augustin who had insurance died in typhoon. 1. Under the category of 2. Under the category 3. Under the category of 4. Under the category of
47 Ch 2 1
Now how will the insurance company will categories this particular risk ? Pure risk of peril risk particular risk Risk Transfer

Ram works in a Fire cracker factory. He stocks the cracker in his house. He runs
48 ch 2 1. Speculative. 2. Particular. 3. Financial. 4. Fundamental. 3
which type of risk.
An Insurance company pools the premium collected from several Individual to insure
49 Ch 2 1. Pure Risk 2. Pooling of Risk 3. Insuraable Risk 4. Sharing of Risk 2
them against similar risk is called:
Which of the following Risk is associated with those events which are not in control of
50 Ch 2 1. Pure Risk. 2. Particular Risk. 3. Financial Risk. 4. Insurable Risk 1
an individual and also no possibility of making profit:
51 Ch 2 which of the following refres to specific event which might cause a loss ... 1. Peril 2. Hazard 3. Physical hazards 4. Uncertinity 2
Mr. shailsh has an endowment policy with 30 years policy term, he has paid for eight
52 ch 3 years. The sum assured Rs.8,00,000/- and accumulated bonus Rs.60,000/-. What is 1. 213333 2. 229333 3. 273333 4. 293333 3
the paid up value?
If the sum assured remains the same, what will be impact of net premium if the age 4. Gross premiums
53 Ch 3 1. It rises 2. It falls 3. It remains constant 3
of the policyholder increases increases
1. Reinstatement Fee
In case the customer has stopped making payment for the premium of the policy. 2. Premium cheque and 4. Premium cheque with
54 Ch 3 and Proof of continuing 3. Only health certificate 1
What are the two most important things required in order to reinstate the policy? health declaration arrears
good health
In a life insurance policy it is later found that the person doesn‟t have insurable
55 Ch 3 1. expired 2. reviewed 3. Void 4. Valid 4
interest then the contract is
1. Premium plus 2. Risk premium plus 3. Premium minus interest 4. Risk premium minus
56 Ch 3 Net premium is equal to 3
interest earning interest earning earning interest earning
1. The premium
2. All similar risks are 3. Premium is pool to 4. Contribution of
57 ch 3 Pooling of risk in insurance means collected & deposited in 2
pooled together make claims insurance company
a pool
2. If the policy has 3. If the insured person
1. Every time premium 4. If the insured person
58 ch 3 Principle of utmost good faith will operate in existing policy lapsed and it has to be falls sick and is admitted 2
is paid changes his job.
revived. to hospital.
 Both the parties to a contract must agree and understand the same thing and in the
59 ch 3 1. Consideration. 2. Legality of an object. 3. Consensus ad idem. 4. Acceptance. 3
same sense which is called
60 Ch 3 Life insurance is the most important for which age group 1. Young 2. Pre- retirement 3. Retirement 4. children 2
1. 15% of base policy 2. 25% of base policy 3. 30% of base policy 4. 40% of base policy
61 Ch 3 The premium for accidental death benefit rider must not exceed 3
premium premium premium premium
If the annual premium for a plan is 32000 and a frequency loading of 4% is added in
62 ch 3 1. 8000 2. 8320 3. 9456 4. 9240 2
a quarterly premium what is the amount that needs to be paid.
Amit has taken a G-Sec and has parted with it mid way as he required the money 3. Discounted Value with 4. Principle with
63 Ch 3 1. Discounted Value 2. Principle amount 1
with the intention of not getting the interest. What will he get? persistency bonus persistency bonus
64 Ch 3 If bonus is given under a plan the additional premium added is known as 1. Loading 2. Investment 3. Frequency 4. Interest 1
1. 100% of basic 2. 50% of basic
65 Ch 3 In case of a term plan the maximum premium of the accidental rider can be. 3. 30% of basic premium. 4. 35% of basic premium. 3
premium. premium.
66 ch 3 The reduction in the benefit illustration shows what. 1. Charges. 2. Mortality. 3. Interest. 4. Inflation. 1
67 Ch 3 If a life insurance policy is issued with a lien, it will be mention in 1. Proviso 2. Schedule 3. Terms & conditions 4. Endorsement 2
68 Ch 3 If we hold 100 units in gold ETF, It means that how much grams we have in physical 1. 5 or 10 grams 2. 10 or 15 grams 3. 15 or 25 grams 4. 50 or 100 grams 4
In a pension plan illustration what are the parts which shows the benefit for an 3. Guaranteed and non
69 Ch 3 1. Insurance coverage 2. Annuity part 4. Vesting age 3
annuitant. guaranteed part
If the employer has insurable interest in the life of an employee, what kind of policy is
70 Ch 3 1. Surety insurance 2. Keyman Insurance 3. Partnership Insurance 4. Debtor Insurance 2
this?
In the sales illustration, the reduction of the actual benefit amount is mainly due to 3. Non guaranteed
71 Ch 3 1. Commission 2. Charges 4. Reversionary Bonus 2
deduction of benefits
1. 15 days from the 2. 20 days from the 3. 25 days from the date 4. 30 days from the date of
The proposer can withdraw from the contract, if they disagree with the terms and
72 ch 3 date of receipt of the date of receipt of the of receipt of the policy receipt of the policy 1
conditions of the Policy, within a „free look-in period‟ of
policy document policy document document document
73 Ch 3 What is the major reason for self employed to take insurance. 1. Save Tax 2. Fluctuating income 3. High Returns 4. Protection 4
Ravi was expecting a claim amount of Rs. 12, 00,000 from insurer. But it was
74 Ch 3 rejected. He feels that it is repudiated on wrong reasons. Which consumer forum can 1. National Commission 2. District Level 3. State Level 4. Mandal Level 2
he approach?
Rajesh is 34 years old and having 2 sons, Vineeth and Sumith. The level of risk
75 Ch 3 1. Middle Level 2. Top Level 3. Low Level 4. High Level 4
appetite, Rajesh belongs is _______.
Total annual premium Rs 32000 quarterly loading done 4 %. Hence actual quarterly
76 Ch 3 1. 7680 2. 9320 3. 8320 4. 6600 3
premium will be
3. Fraudulent
1. Non disclosure of 2. Concealment of a
77 Ch 3 Under this situation may leads to breach of the duty of utmost good faith. misrepresentation of 4. All of the above. 4
material facts. material fact
facts.
2. Insurance should not
1. Insurance can not be 3. Insurance can not
78 Ch 3 Principle of Indemnity denotes….. taken by high risk 4. All of the above. 1
used to make a profit taken by politicians.
people.
1. Facts of common 3. Facts those are not
79 Ch 3 The principle of utmost good faith is not applicable to 2. Facts of law 4. All of the above. 4
knowledge material.
1. Number of year‟s 2. Number of premiums
80 Ch 3 What are the factors involved in calculating Surrender Value of the Policy? 3. Sum Assured 4. All of the above. 4
premium paid. payable.
4. Standard Assignment
1. Full Assignment and 2. Conditional and 3. Life Assignment and
81 Ch 3 What are the different types of Assignments? and Non-Standard 2
Partial Assignment Absolute Assignment. General Assignment.
Assignment.
Mr. Rajesh has taken policy from ABC insurance company for Rs. 500000 Sum
82 Ch 3 Assured by paying Rs. 50,000 premium per year. Company declared 5% Simple 1. Rs. 2500/- 2. Rs. 25000/- 3. Rs. 250000/- 4. Rs. 5000/- 2
Reversionary bonus, what is bonus amount?
83 Ch 3 In an insurance contract the insurable interest needs to be at the time of .... 1. claim 2. revival 3. inception 4. surrender 3
2. Advisors confidential
84 ch 3 In an insurance contract 'consideraton' means........ 1. proposal form 3. premium 4. claim 3
report
85 ch 3 Where do you not find insurable interest in the following options......... 1. surety-co surety 2. employee-employer 3. husband-wife 4. brother-sister 4
3. both insurers and 4. neither insures nor
86 ch 3 The principle of utmost good faith applies to........... 1. only insurers 2. only proposer 3
proposer proposer
 Mr.Shanth has taken an endowment policy of 15 years with ABC insurance company.
1. The policy will be 3. the policy may be 4. Mr. Shanth can renew
He has paid premium for 4 years and he could not pay premium for 5th and 6th year. 2. Mr. Shanth cannot
87 Ch 3 renewed on the existing renewed on different the policy only on the 3
In the 7th year he approaches the company to renew the policy. Now which of the renew the policy
terms and conditions. terms and conditions approval of the insurer
following options will apply to him?
1. The life insured can 2. Nomination can be 3. A person having a
4. The section 39 of the
nominate one or more done either at the time policy on the life of
88 Ch 3 Which of the following statement is not true in connection with nomination? Insurance Act 1938 speaks 3
than one person as the policy is bought or another should make a
about the nomination.
nominees. later. nomination.
1. Assignee cannot 2. The assignor need 3. Section 45 of the 4. Conditional assignment
89 Ch 3 Which of the following statements in correct in connection with assignment? make fresh nomination not be major at the insurance act speaks and absolute assignment 1
in the policy time of assignment. about assignment. are one and the same.
2. Mr. Shanth can take
loan which should be
Mr. Shanth has taken an endowment policy of 20 years. He has paid premium for 10 1. Mr. Shanth will not 3. There is no concept of 4. loans are allowed only in
90 Ch 3 certain percentage of 2
years and now the policy is in force. At this point of time can Shanth take loan? be granted any loan loan in insurance policy term plans
the surrender value of
the policy.
Mr.Akash filled the proposal form but before submitting to the company he discussed
1. Consideration in the 4. Offer and Acceptance in
91 ch 3 with the agent that he is not sure whether he can pay for 15 years . This attitude 2. Capacity to contract 3. Consensus ad idem 4
contract the contract
affects which part of the contract?
2. The insurable
Mr.Karan who has to go to abroad for 6 months on an official work decides to leave 1. The insurable interest 3. The insurable interest 4. The insurable interest
interest between the car
92 ch 3 his car with his friend Mr. Jim. What will be the validity of the insurable interest in this between the car and jim between the car and karan between the car and Jim is 3
and karan is valid for 6
case ? is valid for 6 months is valid until he owns it valid until Karan‟s return
months
Mr. Josh was filling the proposal form but as his mother was sitting beside him, even 1. He has breached the 2. He has breached the 3. He has breached the
4. He had done an innocent
93 ch 3 though he drinks and smokes he ticked “NO” in smoking & drinking column of proposal non-disclosure of the company by concealing company by fraudulent 2
misrepresentation
form. This indicates ? fact the facts information
Mrs.Shwetha has taken a loan from her policy. Later stage she neither paid back 1. Policy will be 2. Policy will be 3. Policy will be
4. Policy will be
94 Ch 3 neither the loan nor she paid the premium for a very long time. What will happen to surrendered by the surrendered by the surrendered by the 1
surrendered by the heir
her policy? insurer nominee company
1. He regularly pays 2. He can surrender 4. He can‟t take loan from
Mr. Manish has a money back policy and a whole life policy. He is planning to take 3. He can‟t take loan from
premium so he can take whole life policy and whole life policy but can
95 Ch 3 some loan from both the policies as he was regularly paying the premium. What is money back but can avail 3
loan from both the can take loan from avail loan from Money back
your suggestion? loan from Whole life policy
policies Money back policy policy
Mr. Raj has taken a policy of 15 year term. He has paid the premium for 9 years. But
1. Converting the policy 2. Converting the policy 3. Converting the policy to 4. Converting the policy to
96 Ch 3 now unfortunately he has lost his job. He is unable to pay the premium. What can be 2
to Term policy to Paid up money back whole Life
the best solution from the following ?
2. A policy document 3. A policy document has
1. A proposal has been 4. An insurer has made
97 ch 3 A contract exists between insurer and proposer when has been stamped by been received by the 1
accepted by insurer. another proposal.
insurer. policyholder.
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 `
98 ch 3 50,000. He claimed this amount from his individual policy. Also, he placed the request 1. Indemnity contract. 2. Value contract. 3. Deemed contract. 4. Rolling contract. 1
with his company for group policy claim, which was rejected. The reason for rejection
is.
1. Heading of policy 4. Schedule of policy
99 ch 3 Payment of premium and sum assured are laid down in 2. Proviso of policy. 3. Operative clause. 3
document. document.
1. Quotation is signed 2. First Premium 3. Proposal Form is 4. Policy Document is
100 ch 3 An insurance contract commences when 2
by proposer. Receipt is issued. signed. received by policyholder.
1. When insured writes 2. When cheque amount 3. When the cheque is 4. When cheque is
101 ch 3 When is premium considered / deemed to be paid? a cheque in favor of is deposited in insurerdeposited with insurer posted/couriered by the 2
insurer. account. office. insure4.
Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 annual 1. Acquires surrender 2. Contract comes to an3. Moneys will be
102 ch 3 4. Acquires paid up value. 4
premiums but due to financial crisis is unable to make future premium. His policy value. end. forfeited.
3. Nomination is made
1. Nomination does not 2. Nomination transfers 4. Nomination need not be
after policy is issued while
103 ch 3 How assignment distinguishes itself from nomination? transfer the title while the title while informed but assignment 1
assignment is done before
assignment does. assignment does not. needs to be informe4.
it is issued.
2. When a client is
1. When a client have 3. When the policy has 4. When the client is
Under what circumstances the surrender of a policy should be recommended by the holding a product
104 ch 3 been sold the right been mis-sold and do not enjoying good financial 3
agent? having good value for
solution. match his needs. status.
money.
2. Representation of 4. There is no insurable
1. The circumstances 3. The life assured is
105 ch 3 What key event is most likely to make an insurance contract not a valid contract? facts by the interest attached to the 4
are legitimate. major.
policyholders is true. policy.
Manish took a loan from Pankaj of Rs.10 lac, Pankaj transferred his Insurance policy to
2. Conditional
106 Ch 3 Manish of Rs.10 lac as a security with the agreement Of when Loan is fully paid, policy 1. Loan assignment 3. Loan Agreement 4. Absoulte Assignment 2
Assignment
title will be revert back to name of Manish is called:
Rakesh has bought an Endowment, Money back, Term & Annuity Plan he would like to
107 Ch 3 1. Endowment Plan 2. Term Plan 3. Money Back Plan 4. Annuity Plan 1
avail Loan from:
On foreclosure, if Death claim arises before the payment of the surrender value, the 2. Legal heir of life
108 Ch 3 1. Nominee 3. Debotrs 4. forfeited the Premium 2
payment would be payable to: Assured
To prove one‟s identity in accordance with KYC process, the customer needs to submit
109 Ch 3 1. An Age Proof 2. An Identity Proof 3. An Address Proof 4. Education Proof 4
following document excluding ……….?
110 Ch 3 Life Insurance also known as: 1. Value Contract. 2. Indemnity 3. Commercial Contract 4. Speculative 1
 Which clause lays down the mutual obligation of the parties regarding, Payment of
111 Ch 3 1. Lien Clause 2. Opertaive Clause 3. Proviso Clause 4. Schedule of Policy 2
Premium by Life assured & payment of Sum Assured by
 Gaurav is working in MNC at the age of 32 bought an Endowment Plan. He had
4. will be Payable to Saanvi
nominated his 1 year old daughter Saanvi, but not able to get the Signature of her 2. Legal heir of the life
112 Ch 3 1. Nominee only 3. Appointee Only (Nominee) at the age of 2
appointee due to unavailability of his spouse .after 5 year. He died in road accident, assured
18th
now claim money would be payable to:
Parvesh bought a policy an endowment plan but after one year insurer. Found he had 1. Indisputability Clause 2.Principal of Indemnity
113 Ch 3 3.Lien Clause 4.Utmost good faith apply 1
Aorta Surgery .now which will apply by insurer: (Section 45) apply apply
Jyoti is submitting is copy of permanents account number card as age proof for buying 1. Non Standard Age 4. Proof of Income tax
114 Ch 3 2. Standard Age proof 3. an Address proof 2
an money back plan .her age consider as a Proof payer
While calculating HLV along with future income, no of years of work, increments in
115 Ch 4 1. Inflation. 2. Interest. 3. Discount rate 4. Compounding. 3
salary what is also to be taken in to account?
Vishal and sandeep applied for a health plan in XYZ Life Insurance Company. Vishal is 1. Sandeep has taken
2. Vishal is older than 3. Sandeep is earning 4. Vishal is working in a
116 Ch 4 asked to undergo a medical checkup but Sandeep is not asked to do so. What will be another policy from XYZ 2
Sandeep more then Vishal MNC
most possible reason? Life Insurance Company
For which of the following reasons, the underwriter should ask beyond agent‟s
117 Ch 4 1. Physical Hazard 2. Moral Hazard 3. SA is too high 4. Pure Risk 3
confidential report.
If both parents of proposer died in their thirties due to heart attack what is the kind of
118 Ch 4 1. Insurable hazard 2. moral hazard 3. non insurable hazard 4. Physical hazard 4
peril or hazard the proposer has?
Kamal is willing to pay 60000/- per annum for his ULIP policy. What should be the SA
119 Ch 4 1. 1 lacs 2. 3 lacs 3. 2 lacs 4. 1.50 lacs 2
in case he wants to avail the tax benefits?
1. Increase more 2. Increase in the 4. Will have impact in his
120 Ch 4 What key impact will the agent have in low persistency 3. Will improve reputation 4
business agents earning commission.
Within how many days will the underwriter needs to inform the policyholder regarding
121 Ch 4 1. 10 days 2. 15 days 3. 30 days 4. 45 days 2
the status of the policy.
2. Tariff Advisory 3. National Insurance
122 Ch 4 The insurance act of 1938 created which of these. 1. IRDA 4. LIC 2
Committee Academy
123 Ch 4 With reference to the principle of indemnity a life insurance policy is a. 1. Insurance contract. 2. Indemnity contract. 3. Value contract. 4. Major life contract. 3
124 Ch 4 Micro insurance is made specifically for people from. 1. High income. 2. Middle class. 3. Low income. 4. Affluent class. 3
If Insurable interest does not exists at the time of inception of the life insurance policy
125 Ch 4 1. Voidable 2. Invalid 3. Valid 4. Null & voidable 2
then, life insurance contract is
126 Ch 4 If a contract is signed by a 15 years old boy, this contract will be 1. Null and void 2. Invalid 3. Voidable 4. Valid 2
2. Shailesh‟s income is
Shailesh and ankit want to retire in the age of 65yrs. But shailesh pays more monthly 1. Shailesh is older than 3. Shailesh & Ankit want
127 Ch 4 more than Ankit‟s 4. Option 1 & 3 are correct 1
payment than ankit for same amount of policy. Why? ankit. it that way
income
1. Only by few selected
128 Ch 4 As per IRDA regulations IGMS should be mandatory set up by 2. Only by non life 3. Some life and non life 4. By all insurers. 4
insurers
1. Loss of renewal 2. High client 4. More earning of First
129 Ch 4 For an insurance agent, a low persistency ratio means : 3. Higher reputation 2
commission satisfaction Year Commission
1. Calculate the 2. Increase the 3. Ascertain the death
130 Ch 4 Law of Large number helps the insures to 4. Declare the bonus 3
premium profitability ratio
131 Ch 4 What is the limit of tax benefit that can be availed of under Section 80C? 1. 50,000/- 2. 15,000/- 3. 10,000/- 4. 100,000/- 4
In a case, the underwriter felt that the risk associated with the person would decrease
132 Ch 4 1. A clause 2. A Lien 3. A Loading 4. Level Premium 2
with time, then he would accept the case with
133 Ch 4 In Cumulative Deposits the interest is normally compounded in a 1. Annually 2. Semi Annually 3. Quarterly 4. Monthly 1
1. Standard and 2. Not standard but 4. Accepted with SSLC
134 Ch 4 Age proof submitted from Village Panchayat is: 3. Not at all accepted 2
accepted accept book/mark list
1. 20 times annual
135 Ch 4 Maximum Life cover 2. 500000 3. 1500000 4. 4000000. 1
salary
Mr. Kumar‟s wife is suffering from blood cancer. Doctors lost their hope on her live.
2. Legality of object or 3. Capacity of paying
136 Ch 4 Mr. Kumar would like to take Life Insurance policy on wife‟s name in order to get 1. Anti Money Laundry 4. All of the above 2
purpose future premiums.
monitory benefit. Insurance company rejects this proposal on the grounds of…….
4. Telephonic
137 Ch 4 What is the main source for insurance company to get information of proposer? 1. Advertisements. 2. Proposal form. 3. Conducting interviews. 2
conversations.
1. Intentions and 2. Habits and Hobbies 3. Occupation and 4. Medical and Personal
138 Ch 4 Moral Hazard reflects the ……. 1
attitude of Proposer. of Proposer. Residence of Proposer. History of Proposer.
1. Future value of 2. Present value of 3. Present value of 4. Future value of previous
139 Ch 4 Income replacement methods equates Human Life Value (HLV) to 2
Present earnings. future earnings. previous earnings. earnings.
140 Ch 4 Agent will be called as….. 1. Primary Underwriter 2. Main Underwriter 3. Chief Underwriter. 4. Information Underwriter. 1
1. an impression of the 2. an impression of the 4. A relative of the illiterate
3. an impression of the
left thumb is taken and left thumb is taken and person has to sign on
141 Ch 4 When an illiterate person wants to have a policy..... left thumb is sufficient and 1
third party has to attest the advisor has to behalf of that illiterate
need not be attested
it attest it person.
As per the IRDA regulations the decisions on the proposal must to convey to the
142 Ch 4 1. 10 days 2. 15 days 3. 20 days 4. 25 days 2
proposer within......
143 Ch 4 The underwriter can get the required information about the proposer in..... 1. Proposal form. 2. renewal receipt 3. brochure 4. annual report 1
144 Ch 4 Mr. Ramesh works in a mining company. So he is exposed to.............. 1. moral hazard 2. physical hazard 3. mental hazard 4. Ethical hazard. 2
1. the risk associated 2. the risk associated 3. the risk associated 4. the risk associated
145 Ch 4 Lien is imposed on a policy when underwriter feels that...... 2
might increase might decrease might not be harmful might be general
1. Tables of death 2. Tables of details of 3. Tables of details of 4. Tables of details of
146 Ch 4 What does the mortality tables contains ? occurring in various various probabilities of underwriter‟s calculation actuarial calculation on 4
circumstances death on death death
 1. Time of death is 2. Only lung is affected 3. He can take insurance
Mr. Guptha is recently detected with lung cancer. He would like to take an insurance. 4. Cannot give insurance
147 Ch 4 uncertain, so insurance so health insurance can after submitting health 4
What is your suggestion? for health reason
can be given be given. certificate
1. method and 2. Date of
4. Date the last premium
148 Ch 4 Which of the following information does not appear in the First Premium Receipt? frequency of premium commencement of last 3. Date the policy matures 2
will be paid
payment premium
3. C. Moral hazard, as
Mr.Santhosh working as a head master who is around 52 years had requested for an 2. B. Moral hazard, as 4. D. Moral hazard, as he is
1. A . Physical hazard, coverage is high and
149 Ch 4 Insurance cover for Rs.1 crore. He insisted that his brother‟s son should be the he is 52 years old and a head master and 52 3
as he is old brother‟s son is the
nominee not his wife. Underwriter will verify this case for which one of the following: wife is not the nominee years old
nominee
Mr.Feroz has applied for an insurance cover of Rs.4 crores. The Company will accept 1. Financial Inspection 2. Specialized 3. Credit worth inspection 4. Insurance Investigation
150 Ch 4 4
or reject the proposal only after confirming from one of the following agencies. agencies inspection agencies agencies Agencies
1. Risk Analysis 2. Classification of Risk 4. Actuary who analysis the
151 Ch 4 The responsibility for classification and analysis of the proposal form lies with whom? 3. Underwriter 3
Department Department risk
1. The occupation of the 2. The financial history 3. The income that he
152 Ch 4 In underwriting the economic value of the person is determined by what? 4. Human Life Value 4
person of his family earns
In which one of the following statement an agent‟s commission will be disclosed to 1. Customer Statement 2. Benefit illustration of 3. Benefit illustration of 4. Customer data sheet
153 Ch 4 2
the customer ? of the product unit linked product endowment product with the product
Rakesh purchased a life insurance policy. While writing a proposal form he hide that
1. Innocent 2. Fraudulent
154 ch 4 he practices mountaineering. Sadly he died in an accident while climbing Mount 3. Concealment. 4. Non-Disclosure. 4
misrepresentation. misrepresentation.
Everest. The insurers rejected the claim.What is the reason for rejection?
Ram Lal is an insurance policyholder. He has recently shifted his home from New
155 ch 4 Delhi to Noida. He wants the address to be changed. This change in policy document 1. Terms & Condition. 2. Preamble. 3. Endorsement. 4. Schedule. 3
will be effective through?
1. An individual is 2. Insurance is taken 4. A medical checkup is
3. A nominee is not a
156 ch 4 When an underwriter may consider Moral Hazard? proposing SA 15 times out by an individual carried out nearby place of 3
dependent.
his annual income. with dependents. residence.
157 ch 4 Level Premium is calculated based on 1. Risk Premium. 2. Net Premium. 3. Loading of Premium. 4. Gross Premium. 1
1. Minimum Possible
158 ch 4 MPL abbreviates 2. Major Possible Loss. 3. Minor Possible Loss. 4. Maximum Possible Loss. 4
Loss.
2. Provide Benefit 3. Provide the terms and
1. Provide the product 4. Provide the website
159 ch 4 To explain the benefits of a product, the insurance adviser should illustration documents conditions document to 2
brochure to the client. address to the client.
to client. the client.
Which one of the following bonuses is given by insurer as an incentive to the insured 1. Simple Revisionary 2. Compound
160 Ch 4 3. Persistency Bonus 4. Interim bonus 3
to for long term: bonus Revisionary bonus
Ramesh bought an endowment plan for tern year he pays the same Amount in every
161 Ch 4 1. Gross Premium 2. Level Premium 3. Risk Premium 4. Net Premium 2
year is called:
4. Medical of examination
162 Ch 4 Which one of the following is not source of information about the 1. Proposal Form 2. Insurance agent 3. neighbor of proposer 3
report
Manish being a sole earning member of his family not insured himself But looking for
163 Ch 4 1. Physical Hazard 2. Moral Hazard 3. Medical 4. No underwriting 2
insurance for his son who is student .there is possibility of
164 Ch 5 Frequent switching is not advisable in ULIP plan because it increase 1. Investment Risk 2. Risk of death 3. Uncertainty of return 4. Chances of lapse 1
3. One has chosen Single
An insurance agent sold two policies to two different persons having the same policy 1. Risk profile of both
2. Age of both the premium policy and other 4. Both have chosen
165 Ch 5 term. He declares the commission to each of them. The commission of one of the the policyholder are 4
candidate are different has chosen regular different kind of policies.
policy is more than the other. What should be the reasons for this difference? different
premium policy
166 Ch 5 If person consumes alcohol- what is the type of hazard? 1. Moral 2. Physical 3.Ethical 4.Ethical & Moral both 2
Where annually increasing flexible premiums operate under a life insurance policy,
167 Ch 5 1. 2.5% 2. 3.0% 3. 5.0% 4. 7.5% 3
what rate of increase will generally apply?
168 Ch 5 Nomination can be in favor of how many people? 1. One person 2. Two persons 3. Three persons 4. It can be any number 4
If Naresh wishes to take the tax benefit of the full premium paid which is 60000, what
169 Ch 5 1. 2 lacs 2. 3 lacs 3. 5 lacs 4. 6 lacs 2
amount of sum assured should he avail in a ULIP plan.
1. The policy needs to
Ashu is an illiterate person and his proposal form was filled by Nishu, then what is the 2. Nishu has to sign an 3. Thumb impression of 4. Ashu needs to be
170 Ch 5 be advertised in the 3
additional requirement to be taken along with the documents. indemnity bond. Ashu has to be taken. medically examined.
newspaper.
In the personal statement, Harish declares that he consumes alcohol twice every
171 Ch 5 1. Moral hazard. 2. Moral peril. 3. Physical hazard. 4. Physical peril. 3
week. This is a
2. To be an active link
3. Design, implement and 4. Regulate the investment
1. Provide suggestion between Global market
172 Ch 5 What is the key function of NIA operate an insurance of funds by Life Insurance 3
for Premium calculation & Indian Life Insurance
training company
Industry
Gautam wants to purchase a Kisan Vikas Patra. What is the most suitable place to
173 Ch 5 1. Bank 2. Insurance Company 3. Post Office 4. Share Market 3
purchase it
174 Ch 5 During Fact finding, rating is mentioned „3‟. This Indicates 1. Risk apatite of client
2. His future aspiration 3. Commitment to need 4. Willingness to pay 1
Raunak wants to purchase a cheapest plan which can provide financial security to his 2. Term Plan with
175 Ch 5 1. Term Plan 3. Pure Endowment plan 4. Unit Linked Plan 1
dependent. Which plan should be offered return of premium
1. Not necessary to pay 2. Necessary to pay
176 Ch 5 Incase of presumption of death premium until court premium until court 3. Claim not admissible 4. Depends on case to case 2
decree decree
177 Ch 5 Within how many years a complaint can be made through consumer protection act. 1. One year 2. Two years 3. Three years 4. Five years 2
178 Ch 5 Basing on which criteria the qualification of Agent is determined? 1. Address of the agent 2. Domicile status 3. Qualification of Agent 4. DOB of Agent 2
 2. Has the power to
1. Has the power to 3. Has the power to
supersede the IRDA by 4. Can make changes in
179 Ch 5 If IRDA is unable to discharge its functions or duties, Central Government supersede the IRDA by supersede the IRDA by 1
issuing a bill in IRDA law
issuing notification. issuing draft
parliament
If a customer has mentioned he is a drinker in the proposal form, the insurance
180 Ch 5 1. Provisio 2. Endorsements 3. Operative clause 4. Terms and Conditions 2
company can exclude this hazard and mention it in which part of the policy document?
181 Ch 5 When a person is investing in Debt Mutual Fund, what is the primary objective 1. Good Returns 2. Regular Income 3. Safety 4. Liquidity 4
3. Asset Management
182 Ch 5 The client of reinsurer are 1. Insurance companies 2. Banks 4. Brokers 1
Companies
3. At the time of every
1. At the inception of 2. At the time of a
183 Ch 5 In the case of life insurance, insurable interest should exist renewal premium 4. All the above occasion 1
the policy claim
payment
184 Ch 5 In which of the following plan remaining part of the Sum Assured is paid on maturity? 1. Endowment Plan 2. Convertible Plan 3. Money Back plan 4. Term Plan 3
1. Regularly with no 2. Lump Sum with no 3. Lump Sum for fixed 4. Regularly for fixed
185 Ch 5 Payment/Investments in Kishan Vikash Patra under post office schemes is done 3
fixed term fixed term period of time period of time
A person with a criminal background due to Financial fraud would come under which
186 Ch 5 1. Physical 2. Moral 3. Occupation 4. Not applicable 2
hazard
3. Authorized officials of
187 Ch 5 Whose signature is required on attestation of the policy? 1. Agent 2. Policy holder 4. Proposer 3
insurer
188 Ch 5 Payment of premiums by cash cannot exceed ____________ . 1. Rs. 1, 00,000 2. Rs. 50,000 3. Rs. 25,000 4. Rs. 60,000 2
Ajay has bought an endowment insurance plan with a cover of Rs. 10, 00,000 for a
189 Ch 5 term of 15 years. Ajay died after 4 years. Insurance company will not treat this claim 1. Normal 2. Fraudulent 3. Early 4. General. 3
as ________ claim.
1. Million Dollar Round 2. Major Double Rupees 4. Mean Disposition
190 Ch 5 What does MDRT Stand for? 3. Major Dollar Round Tag 1
Table Tag Residence Time
3. He can send back the
1. He can not do any 2. He can file a
policy document to 4. Serve notice to
Mr. Kumar is taken one life insurance policy with ABC Company. But he is not thing, because be complaint against
191 Ch 5 insurance company with in insurance company on 3
satisfied with the policy benefits. What Mr. Kumar can do under this situation? received the policy insurance company in
15 days from policy policy benefits.
bond. court.
receiving date.
1. Guaranteed Benefit
2. Interest Benefit and 3. Death Benefit and 4. Bonus Benefit and Tax
192 Ch 5 The two basic elements of most life insurance plans are and Non-guaranteed 3
Bonus Benefit. Maturity Benefit. Benefit.
Benefit.
2. Only Maturity
193 Ch 5 Term Insurance Plan will give…. 1. Only Death Benefit. 3. Only Bonus Benefit. 4. Only Tax Benefit. 1
Benefit.
194 Ch 5 Low risk products give….. 1. High Returns 2. Low Returns 3. Moderate Returns 4. Good Returns 2
1. National Saving 2. Equity Linked Saving 3. Principle component of 4. Premium paid for Health
195 Ch 5 Which of the following product not comes under Section 80 ( C ), income tax act 196 4
Certificates. Schemes. home loan. Insurance Plan.
196 Ch 5 The income of an individual can be protected with the help of......... 1. a unit linked policy 2. a term life policy 3. an endowment policy 4. a money back policy 2
Mr. Shanth has got a pure endowment policy for 30 years for the sum assured of Rs. 2. when he survives the
197 Ch 5 1. when he dies 3. when he is hospitalized 4. when he loses his job 2
75,000,00/-. It can be paid to him...... term
2. Unit linked Insurance
198 Ch 5 Flexibility like partial withdrawal and taking premium holidays is possible with.... 1. Fixed deposits 3. Term Insurance 4. Endowment plans 2
plans
Mr. Varun who won a multi chain company would like to take an insurance. What will 1. He can take Surety 2. He can take Business 3. He can take Key man 4. He Can take company
199 Ch 5 3
be the best option for him from the following ? insurance Partner insurance Insurance insurance
Mr. Vinu got a job recently, he can‟t afford to pay to pay the higher premium as of
1. Convertible 2. Convertible Term 3. Convertible pure 4. Convertible money back
200 Ch 5 now but in future once he settles down with his job he can pay higher premium. Which 2
Endowment plan plan Endowment plan
one will be the best plan?
Mr. Kumar decides that his employees should have SSS scheme. What type of plan is 1. Salary saving Life
201 Ch 5 2. Not a specific plan 3. Salary insurance plan 4. Salary Specific plan 2
SSS? plan
What is generally considered as a substitute to charging a high premium for a high
202 ch 5 1. Clause. 2. Assignment. 3. Lien. 4. Level Premium. 3
risk?
Manmohan has recently purchased a house worth ` 50, 00,000 on loan. Which
203 ch 5 1. Endowment Plan. 2. Money Back Plan. 3. Whole Life Plan. 4. Term Plan. 4
insurance product you as an adviser will suggest?
1. Master Policy holder 2. Employer &
204 Ch 5 In Group insurance plans contract of insurance between …………? 3. Employee & Insurer 4. Creditors & Debtors 1
& insurer Employee
1. Plan offer insurance 4. A joint life policy may
2. This plan is ideal for 3. Each life will be
205 Ch 5 Which option is not correct with regard to joint life insurance plan? coverage for two person cover a partner in business 2
brother & sister. underwritten separately.
in one policy under one policy.
1. Shares will be more 2. Shares will be less 3. Fixed deposits will be 4. Fixed deposits will be
206 Ch 6 If RBI increases the interest rates then what will be the effect on share prices. 2
attractive. attractive. more attractive. less attractive.
207 Ch 6 What is purpose of investing money in debt mutual fund? 1. Easy access 2. Fixed income 3. Tax Benefits 4. Liquidity 4
208 Ch 6 What is the similarity between Recurring Deposits & cumulative deposits in a bank 1. Guarantees 2. Taxation 3. Tenure 4. Lock in periods 1
209 Ch 6 If a person want to maintain emergency funds the best place is a bank or 1. Equity market 2. ULIP 3. Debt mutual fund 4. FD 3
210 Ch 6 What is the advantage of converting physical gold assets to gold ETFs. 1. Liquidity 2. More gold in value 3. Purity 4. More conversion value 1
An investor holds a wide range of shares. If the Reserve Bank of India announces a
211 Ch 6 series of significant interest rate increases, the prices of these shares are most likely 1. Become volatile 2. Decrease 3. Increase 4. Remain unchanged 2
to
Raunak earns 80,000 per month as salary. He has taken a House loan of Rs. 500000.
212 Ch 6 What will be the maximum amount of EMI that can be charged by the Bank to recover 1. Rs. 32000 per month 2. Rs. 24000 per month 3. Rs. 40000 per month 4. Rs. 48000 per month 1
the loan amount?
4. Any time during the
213 Ch 6 In case of life insurance, Insurable interest must exist 1. At inception of policy 2. Not needed 3. At the time of claim 1
contract
In which section of Policy document, Information about the location of the insurance
214 Ch 6 1. Operative clause 2. Attestation 3. Information statement 4. Endorsements 3
Ombudsman had written?
Mr. Denny is married and has 2 children and his parents are alive. He has taken a 3. Denny, his wife and 4. Denny, his wife, his
215 Ch 6 1. Denny 2. Denny and his wife 4
family floater plan. Under the plan who all will be covered. children children and his parents
Varun wishes to pursue a career in insurance and wishes to be in a department which
216 Ch 6 1. Actuary 2. Underwriter 3. Claim Department 4. Accounts 1
calculates the level of premium. In which department should he join?
After maturity In a Unit Linked Life Insurance Policy, customer does not get received 3. He has he has
1. He has switched his 2. He has opted for 4. Policy was lapsed on the
217 Ch 6 Maturity in a lump sum. What is the possibility of receiving it in installments if it is not redirected his past 2
fund Settlement option time of maturity
a annuity plan premium.
A customer surrenders his policy on Feb 2010 As per Agents code of conduct, an
218 Ch 6 1. 2011 2. 2012 3. 2013 4. 2014 1
agent can get a new policy from this customer from Feb which year
If a policy with premium of Rs 5000 has matured, how much will be deducted when
219 Ch 6 1. Nil 2. 1% 3. 5% 4. 10% 1
the maturity claim arises
Rakesh wants to buy a policy primarily for Risk Cover but at the end of the term he
220 Ch 6 1. Endowment plan 2. ROP plan 3. Whole life plan 4. Ulip 2
wants to get at least some return. Under which policy he will get these benefits
Under current regulations what is the maximum stake that the Foreign Partner in
221 Ch 6 1. 48% 2. 50% 3. 60% 4. 26% 4
Insurance Company hold?
222 Ch 6 In what proportion is the cover in a Family Floater Plan shared? 1. 25% each 2. 15% each 3. 50% each 4. No Proportion 4
223 Ch 6 Bank interest is accumulated 1. Monthly 2. Yearly 3. Quarterly 4. Once in 6 months 2
1. Mutual Fund 2. Mutual Fund 3. Asset Management 4. Asset Maintenance
224 Ch 6 Who will maintain Mutual Fund Schemes? 3
Management Societies Management Systems. Companies. Company Limite4.
4. Contingency/ Emergency
225 Ch 6 Which is the primary saving need among all saving needs? 1. Insurance 2. Purchasing House 3. Investment. 4
Fun4.
Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this amount for his
daughter‟s marriage which is going to happen with in Nine months. He would like to
226 Ch 6 1. Insurance 2. Shares 3. Fixed Deposit in Bank 4. Mutual Funds. 3
get some returns from this money in these 9 months period. What is the best option to
park his money?
1. through individual
227 Ch 6 Which of the following ways is easier for a person to take a saving product? 2. through internet 3. corporate agents 4. call centers 2
agents
Mr. Rajgopal has invested some money. He has been informed clearly about the
228 Ch 6 tenure, interest rate and method of payment of interest at the inception of the 1. Life Insurance 2. Mutual fund 3. Shares 4. Bank deposits 4
investment itself. His investment may be in.....
229 Ch 6 Which of the following can‟t be ducted under section 80 c from taxable income? 1. Pension Funds 2. Public Provident Fund 3. Employee Gratuity Fund 4. Infrastructure Bonds 3
Who act as an intermediary by offering a trading platform for buying and selling of 1. Bombay Share 2. Bombay Stock
230 Ch 6 3. Stock brokers 4. Share brokers 2
shares? Chap-6 exchange exchange
The Central Bank has recently announced the decrease in interest rates. The prices of
231 ch 6 1. Likely to increase. 2. Likely to decrease. 3. Will fluctuate. 4. No change is likely. 2
bonds are
232 Ch 6 Time deposit account is issued by: 1. Post office 2.Bank 3.Mutual Fund 4. Life Insurance co. 1
Pankaj want to save tax over and above the deduction allowed under section 80C of 4. Interest paid on
233 Ch 6 1. Corporate Bond 2. Infrastructure Bond 3. Health Insurance 2
the income tax act 1961, which allow deduction from taxable income education loan
In which of the following Bank pays the Interest on the deposit‟s fund on monthly
234 Ch 6 1. Saving Deposit 2.Cumlative deposit 3. Traditional Deposit 4. Fixed Deposit 3
/quarterly /half yearly/ yearly basis as chosen by depositor fund:
Mukesh buys shares at lower price and sold at higher price, the Difference between the
235 Ch 6 1. Dividend Income 2. Captial Appreciation 3. Bonus Share 4. Interest on share 2
two prices is known as:
2. Matching the product 3. Recommendation of 4. Discourse saving in a
1. Providing him
236 Ch 6 Vinod being an insurance agent can offer assistance to his client Ramesh by: with Ramesh„s financial product with highest purposeful and need based 2
emergency fund.
need. return. manner.
If the customer has invested money in a pension plan from company A and buys an
237 Ch 7 1. Life Long Annuity 2. Open Market 3. Reinsuring Annuity 4. deferred Annuity 2
annuity from company B, what is the nature of transaction?
1. Ensure Better annuity
238 Ch 7 Open market option under Annuity policy would extend which of the following benefit? 2. Increase in the range 3. Increase in return 4. Switch of Funds 2
rate
With this type of deposit the bank pays the principal and the total interest at the end
239 Ch 7 1. Traditional deposits 2. Recurring deposits 3. Cumulative deposits 4. Term Deposits 3
of the term.
1. 10% of the premium 2. 20% of the premium 3. 30% of the premium on 4. 40% of the premium on
240 Ch 7 The Premium on all riders put together should not exceed 3
on the base policy on the base policy the base policy the base policy
 1. allows policyholders
to customize their
241 Ch 7 How riders will help the customer in life insurance? 2. rider is like a clause 3. Operative clause. 4. Rider is like Preamble. 1
insurance cover with
additional benefits
2. The insurance
1. The daily amount company may pay an
3. The insurance company
paid is fixed and will additional amount on a 4. Only surgery expenses
will pay for doctor
242 Ch 7 In Daily hospitalization cash benefit scheme, never be more or less daily basis if the are included in daily 1
consultation fees incurred
than the cost of actual insured is admitted to hospitalization benefit
prior to hospitalization
treatment. the Intensive Care Unit
(ICU).
1. 1/3rd of the 2. 1/4th of the 3. 1/2nd of the 4. Full withdrawal is
243 Ch 7 A lump sum withdrawal allowed as commutation in pension plans is 1
accumulation fund accumulation fund accumulation fund allowed
2. annuity will be
Customer has opted for a 5 yrs guaranteed annuity option. What will happen to
244 Ch 7 1. paid up to 75 Yrs continued for next 5 3. till he die 4. not remembered 2
annuity, if the customer survives for 5 years after the end of guarantee period?
Years
The regulations issued by the IRDA, require that the decision on the proposal must be 1. 15 days of receiving 2. 20 days of receiving 3. 25 days of receiving the 4. 30 days of receiving the
245 Ch 7 1
conveyed to the proposer within the proposal the proposal proposal proposal
According to IRDA guidelines, how long does an insurance company have to complete
246 Ch 7 1. 30 days 2. 90 days 3. 120 days 4. 180 days 4
its investigation of a claim?
To ensure that the premiums are paid out of a legitimate source of funds cash is
247 Ch 7 1. Up to 50000 2. Up to 99990 3. Up to 100000 4. Without any limit 1
accepted
248 Ch 7 In Cumulative bank deposit the interest that in normally compounded on what basis. 1. Monthly 2. Quarterly 3. Half Yearly 4. Annually 2
If the license of an agent has been disqualified by a designated authority in 2010 then
249 Ch 7 1. 2013 2. 2015 3. 2017 4. 2020 2
the person can apply for a license in which year.
If the agent recommends the client to terminate an endowment plan and take a whole 2. Doing a financial
250 Ch 7 1. Switching 3. Churning 4. Fact Finding 3
life in order to earn higher commission its termed as planning
1. Will be considered as 2. Will be considered as
251 Ch 7 Certificate from the village panchayat 3. Will not be accepted 4. Will be verified first 2
standard age proof non standard age proof
252 Ch 7 The Authority of COPA is limited to what amount at the district level. 1. 10,00,000. 2. 20,00,000. 3. 50,00,000 4. 1,00,00,000. 3
1. 100% of basic 2. 50% of basic
253 Ch 7 In case of a term plan the maximum premium of the accidental rider can be. 3. 30% of basic premium. 4. 35% of basic premium. 3
premium. premium.
1. Insurance broker is 3.Insurance Broker gets
2. Insurance broker is
represents insurance money from both
represents insurance
254 Ch 7 Which is correct in relation to Insurance Broker? buyer and remunerated Insurance company as 4. None are correct 1
buyer and remunerated
by the insurance well as from Client fo
by the Client
company selling Insurance
255 Ch 7 In which plan weekly premium payments are accepted. 1. Health Insurance 2. Group Insurance 3. Micro Insurance 4. Macro Insurance 3
4. His investment would be
An elderly person wants to use tax efficient investment and invests in senior citizen 1. He will get tax benefit 2. He will get tax 3. He will get a reduction
256 Ch 7 deducted from taxable 4
saving scheme. Its the impact in his taxation up to 5000 benefit up to 25% in tax slab
income
2. Number of days
1. Number of days 3. Treatment cost of
admitted in hospital & 4. Lump sum amount what
257 Ch 7 What are the benefits to the policyholder Under Surgical care rider? admitted in hospital & surgery subject to terms & 3
surgery expenses in he has incurred
surgery expenses in full conditions
partial
2. Interact with the
258 Ch 7 National insurance academy has the following main functions 1. Calculating premium 3. Training 4. Mortality assumptions 3
government
When should an agent disclose the commission which he will earn from the product 1. When the customer 2. After the fact finding 3. After quantifying the 4. After the product is
259 Ch 7 1
which he is going to sell asks him process need recommended to the client

A customer gets periodic benefits without any claim and then when he dies during the
260 Ch 7 1. Endowment 2. Term 3. Money Back 4. Whole of Life 3
term of the policy, his nominees gets the sum insured. What type of policy is this ?
2. The company is 3. A large numbers of
1. The customers are
acquiring more policies have lapsed / 4. The company will not
261 Ch 7 A low persistency ratio for the insurance company means that: satisfied with the 3
business and new surrendered resulting in declare bonus
products
customers loss of profit
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
262 Ch 7 1. Churning 2. Proposing 3. Underwriting 4. Switching 1
10, 00,000 and suggested that he surrenders the existing policy and buys a new one.
This is an example of
3. Must try to convince the 4. Must try to force the
1. Ask the client to fill 2. Find out the reasons
263 Ch 7 If the recommendation of the agent has been rejected by the client, the agent should: client to follow his client to follow his 2
the proposal form for refusal
recommendation recommendation
To identify suitable products their main features and their tax treatments is the role
264 Ch 7 1. Agent 2. Insured 3. Policy Holder 4. Insured person 1
of:
The rider which is given by the Insurance company pays for the treatment costs in the 2. Hospitalization Care
265 Ch 7 1. Critical Illness Rider 3. Accidental Benefit Rider 4. Surgical Care Rider 2
event of hospitalization of the insured person is called Rider
266 Ch 7 Mr. X is married with wife, 2 children and aged parents Health premium is allowed for 1. X only 2. X with wife 3. X with wife and kids 4. X with all 4
1. Person receives fixed 2. Person receives an 4. Person receives benefit
3. Person receives a fixed
267 Ch 7 Hospitalization rider has the following benefit: amt daily for no of days amount equal to the only if he is hospitalized for 1
amount of 1000 daily.
in hospital expense. 3 days minimum.
 Mr. Suresh purchase one pension plan and accumulated Rs. 9,00,000 amount in his
268 Ch 7 pension fund. He would like to utilize commutation benefit before taking pension. What 1. Rs. 3, 00,000/- 2. Rs. 4, 50,000/- 3. Rs. 90,000/- 4. Rs, 4, 85, 468/- 1
is amount Mr. Suresh can withdraw as commutation?
Customer has to pay the amount in regular intervals to create purchase price or
269 Ch 7 1. Collection Phase. 2. Accumulation Phase 3. Pension Phase. 4. Primary Phase. 2
Pension Fund. We call this phase as…..
Some Health Plans will give coverage for family members also. We will call these 1. Family Health 2. Total Protection 3. Family Floater Health 4. Family Rakshak Health
270 Ch 7 3
plans as….. Insurance Plans Policies. Insurance Plans. Plans.
1. Taking Life Insurance 2. Taking Health Plan,
Mr. Hitesh would like to get health coverage along with Life Insurance. What are the 3. Taking Medi-claim plan 4. Taking Hospital Benefit
271 Ch 7 plan with Critical Illness Insurance Plan 1
options available to Mr. Hitesh to fulfill his need with a little cost? with Life Insurance. Plan with Endowment Plan.
Rider. separately.
1. all the expense 2. Some percentage of 4. The insurance company
3. a fixed amount on daily
incurred will be the expense will be will pay all the expense
272 Ch 7 In 'Daily hospitalization cash benefit plan'...... basis is paid by the 3
reimbursed by the reimbursed by the only after consulting
insurance company
insurance company insurance company hospital authority.
2. This rider is ideal for
1. The rider waives
helping to prevent a
future premiums in the 3. The main strength of
policy lapsing due to 4. WOP rider can be
273 Ch 7 Which of the following is not a feature of WOP rider? event of the disability or WOP is the payment of full 4
non-payment of offered with all plans
death of the policy sum assured.
premiums due to death
holder.
or disability
Mr. Ramakant is 35 years old. He has bought retirement plan for 20 years. This type
274 Ch 7 1. immediate annuity 2. life annuity 3. deferred annuity 4. joint life annuity 3
of pension plan is known as..................
2. When Mr. Ranga is 3. When Mr. Ranga's 4. When Mr. Ranga dies
Mr. Ranga has taken Critical Illness Rider. In which of the following scenarios the 1. When Mr. Ranga dies
275 Ch 7 diagnosed a critical family member will be in due to severe road 2
insurance company will pay him...... due to critical illness
illness critical illness accident.
2. Risk Diversified
276 Ch 7 The concept of Risk diversification is applicable in which of the following instrument ? 1. Mutual Fund 3. Shares 4. Risk Sharing insurance 1
Insurance
Ajay bought a share for Rs.110 and he sold when it was Rs.630.What had happened to
277 Ch 7 1. Capital Appreciation 2. Capital Profit 3. Capital Benefit 4. Capital Variation 1
his share?
278 Ch 7 Which one of the following cannot be covered under Critical illness rider? 1. Blindness 2. Paraplegia 3. Coma 4. Brain Surgery 4
Mr. Yash has taken an annuity on 25th August 201The benefit of the plan will start 1. Guaranteed period
279 Ch 7 2. Life annuity 3. Deferred Annuity 4. Immediate annuity 4
from 25th August 201 What type of annuity plan is this? annuity
Mr.Rohith wants to have a health insurance plan for his family and for his aged 1. Group Family health 2. Family health 3. Family floater health 4. Family Health benefit
280 Ch 7 3
parents. which will be the best plan for him ? insurance plan insurance plan insurance plan plan
281 Ch 7 In what situation “Waiting Period” is applicable in a health insurance? 1. Immediate care 2. Medical examinations 3. Pre-existing illness 4. Permanent exclusions 3
282 ch 7 E-sales refers to sales of insurance products through 1. Insurance brokers. 2. Bancassurance. 3. Individual agents. 4. Internet. 4
283 ch 7 To avail the income tax benefit at investment stage, premium should be maximum 1. 10% of S1. 2. 20% of SA. 3. 30% of SA. 4. 40% of SA. 2
1. Amount of disposable
284 ch 7 The savings needs of a particular individual is majorly determined by 2. Current assets. 3. Current liabilities. 4. Duration of investment. 4
income.
While calculating the expected returns from investments and savings, an individual 3. Taxation & inflation
285 ch 7 1. Taxation only. 2. Inflation only. 4. No provision is require4. 3
should make provisions for both.
Rohit is working as sales manager with an FMCG company. His job requires him to 1. To purchase an 2. To purchase a health
3. To save through fixed 4. To purchase a medical
286 ch 7 travel across states. He is planning of covering his additional risk involved while accidental rider with a plan along with a 1
deposits in bank. plan.
travelling and a savings plan. What suggestion would you give him as an agent? savings insurance plan. savings insurance plan.
1. The premium 2. The premium 3. The premium may
The general need for purchasing a health insurance plan at an early age results from 4. The premium increases
287 ch 7 decreases with remains constant with increase or decrease with 4
which of the following factors? with increasing age.
increasing age. increasing age. the increasing age.
The life expectancy in India is constantly improving and is well above 60 years. This
288 ch 7 1. Equity. 2. Bank fixed deposits. 3. Health insurance plan. 4. Savings insurance plan. 3
also brings along challenges. These challenges can be covered through
Anand has purchased a pension plan which is nearing completion of accumulation
1. 1/5th of accumulated 2. 1/3rd of accumulated 3. 2/5th of accumulated 4. 2/3rd of accumulated
289 ch 7 phase. He is in need of finances to make down payment of car he wants to purchase. 2
amount. amount. amount. amount.
At the end of accumulation phase how much he can make tax free withdrawal?
Due to some medical problem Neeraj got hospitalized and insurance Company paid 1. Group health 2.Family floater 3. Individual health 4.Daily hospitalization cash
290 Ch 7 4
him a fixed amount on daily basis, what kind of health Policy he bought it…………? insurance Insurance Plan insurance plan benefit plan
1. Providing additional 3. Nominal cost & 4. Customization and tax
291 Ch 7 Which of the following is not featured and benefit of rider? 2. Maturity benefit 2
cover flexibility benefit.
Gaurav bought an endowment plan for 20 year of 10 lac SA with ADB Rider, died in
292 Ch 7 1.10 lac 2. 20 lac 3.30 lac 4.5 lac 2
road accident after 10th year how much money claimant would be payable:
Kajal is investing for the purpose of retirement at the time of vesting Age before 1. 2/3rd of Accumulated 2.1/2th of Accumulated 3.1/3rd of Accumulated 4.1/4th of Accumulated
293 Ch 7 2
receiving the regular annuity she has option to withdraw/commute Upto: Fund Fund Fund Fund
2. Real needs are actual 3. Real needs are 4. Real needs are needs
1. Real needs are
needs and perceived identified by the insurance which satisfy an objective
In the context of financial planning, how is the difference between real needs and financial needs and
294 Ch 8 needs are based on a agent and perceived and perceived needs are 2
perceived needs best described? perceived needs are non-
client‟s thoughts and needs are identified by the needs which do not satisfy
financial needs.
desires. client. an objective.
 If a person is concentrating more on health plan and retirement plan then at which
295 Ch 8 1. Young unmarried 2. Young married 3. Young married with Kids 4. Pre retirement 4
stage of life is he in.
Suresh has adequate reserve capital with him and he wishes to protect his income,
296 Ch 8 moreover he feels that if he does not die then he would need the amount. What type of 1. Term Insurance Plan 2. Endowment plan 3. Return of premium plan 4. Pension plan 3
plan should he opt for?
Manish and Manisha is a married couple with one child. They want to plan for savings,
297 Ch 8 child education/marriage and their retirement and protection of income. Which should 1. Marriage. 2. Savings. 3. Education. 4. Protection. 1
be their lowest priority?
Mrs. Sheela received some amount out of her husband‟s death. In such a situation 3. Investment
298 Ch 8 1. Savings 2. Insurance 4. Planning for pension 3
what will be her prime focus? management
299 Ch 8 Where one can approach in case of dispute? 1. IRDA 2. Consumer Forum 3. Distric Forum 4. National Forum 2
1. Need to spend and
Health insurance policy holder takes treatment in a hospital which doesn‟t have 2. Need to add that 4. Need to switch to the
300 Ch 8 Get claim from the 3. Need not to claim 1
cashless facility. How the policy holder will get benefited hospital as TPA another insurer
insurer
301 Ch 8 What is the ceiling of tax exemption under 80 c. 1. 1 lakh 2. 1.5 lakhs 3. 2 lakhs 4. 3 lakhs 1
302 Ch 8 What is the limit of tax benefit that can be availed of under Section 80C.? 1. 75K 2. 1L 3. 1.5 L 4. 50K 2
Mr. Raj is married and having 2 children. Which plan can he take that can cover his
303 Ch 8 1. Health Insurance 2. Family floater 3. Life Insurance 4. Retirement 2
whole family?
Under section 80C the maximum tax deduction that can be gained for premium paid
304 Ch 8 1. Rs. 75,000 2. Rs. 1, 10,000 3. Rs. 1, 20,000 4. Rs. 1, 00,000 4
is _______ in a financial year.
2. Product – Based 3. Commission – Based 4. Company – Based
305 Ch 8 A Professional insurance market carries….. 1. Need – Based Selling 1
Selling Selling Selling.
2. Imagined to be 3. Imagined to be
306 Ch 8 Perceived needs are those…. 1. Short term needs. 4. Long term needs. 3
important by Advisor. important by client.
1. Financial provision to
2. Capacity to pay the 3. Existing insurance 4. Family and Employment
307 Ch 8 Need analysis involves identifying……… meet predictable and 1
premiums in future. plans. details.
unpredictable needs.
2. the amount that can
1. the surplus amount 3. the annual bonus 4. the sum of one's all
308 Ch 8 The disposable income means...... be paid towards one's 1
that can be invested amount investment
EMIs
Mr. Shanth is in his early 20s and has just started earning. His risk appetite is
309 Ch 8 1. high 2. low 3. normal 4. Neutral. 2
expected to be.....
310 Ch 8 The younger the age of an individual..............their liabilities will be. 1. the lower 2. the higher 3. the smarter 4. the superior 1
Mr. Ramachandra's son Mr. Bharat has just employed as a software engineer,
3. Married with older
311 Ch 8 daughter Anusha has got married. Now Mr. Ramachandra is free from his burden. So 1. Pre-retirement stage 2. Post retirement stage 4. Employment stage 1
children stage
Mr. Ramachandra is now in the ...................stage.
Mr. Vinodh has lot of inconvenience to reach office every day. So he wants to buy an
312 Ch 8 1. Real need 2. Perceived need 3. Imaginary need 4. Important need 2
expensive car when he will have sufficient fund. Here Mr. Vinodh's need is.............
2. clients personal 3. clients hereditary 4. Clients‟ social
313 Ch 8 Fact finding enables the insurance advisor to identify the............. 1. clients financial need 1
problems diseases background.
1. At the time of 4. At the time when
314 Ch 8 The timing of death is uncertain, so when one should take life insurance? 2. At an early age 3. Anytime in life 2
uncertainty Advisor takes the decision
1. Investment and 2. Investment and 4. Investment and life
315 Ch 8 Which are the two primary needs of any customer in any point of life? 3. Investment and savings 2
retirement Protection needs
1. Selling what 2. Selling what adviser 3. Selling what customer 4. Selling what IDRA wants
316 Ch 8 The concept of need based selling involves 3
company wish to sell. wish to sell. requirement is. company to sell.
For his investment need, Ravi has parked funds in equity. The returns from this form
317 Ch 8 1. High Risk. 2. Low Risk. 3. Moderate Risk. 4. No Risk. 1
of investment can be categorized as
Vijay, aged 30 years and married, is the sole bread winner for his family. He is saving
318 Ch 8 1. Retirement need. 2. Tax planning need. 3. Financial security need. 4. Asset building nee4. 3
enough with banks.As an agent, which need you prioritize first?
1. Individuals 2. Individuals have 3. Individuals do not
As an adviser why is it essential for you to carry out the financial planning exercise understand their real same financial needs at understands their real 4. Individuals‟ real and
319 Ch 8 3
with the prospective clients? needs and can prioritize different stages of the needs and cannot perceived needs are same.
them. life cycle. prioritize them.
1. When a person of the
2. When both the life 3. When the income of a
family is involved in 4. When the members of a
320 Ch 8 What do you mean by Double Income Family? partners are earning family is just the double of 2
double businesses or family do not work at all.
members of the family. income of another family.
jobs.
1. Public sector 2. Private sector 3. Professionals &
321 Ch 8 In which of the following case there is no defined retirement age? 4. All of the above 2
employees employees Businessmen
4. An individual should not
1. Every individual‟s 2. Every individual‟s 3. An individual‟s income
keep in mind his income
322 Ch 8 Which one of the following is true? income and expenditure income and expenditure and expenditure has no 2
while planning his
pattern is same. pattern is different. relation.
expenditure.
2. Priorities Clients
323 Ch 9 During fact finding, What will be the next step after Identifying clients need 1. Quantify clients need 3. Recommending Product 4. Fill up the proposal form 1
Need
During a fact finding process the need analyzed were income replacement and 3. Give a child plan and
1. Do the fact finding 2. Insist with the client 4. Give the lead to another
324 Ch 9 children‟s education. But the customer insists on only a child plan for the time being revisit the client on a later 3
exercise again to take a term plan agent
and asks the agent to give him a child plan. The agent should. date
Akash is an Unmarried person and employed with company ABC and drawing a
325 Ch 9 1. Money Back 2. Term Plan 3. Endowment Plan 4. ULIP 4
handsome salary. He has no liabilities. What kind of plan can be suggested to him?
 What should an agent do in order to understand the mental state of client in respect 2. Consulting the 3. Consulting the family of 4. Reviewing his existing
326 Ch 9 1. Fact finding 1
to his investments in saving products client‟s parents the client investments
Anand received post taxation 5% return on his fixed deposit in a bank. If his net
327 Ch 9 1. Administrative charge 2. Inflation 3. Interest rate 4. Market Risk 2
return is 3%, what can be the reason
328 Ch 9 Which is the best option to manage risk? 1. Retain 2. Transfer 3. Avoid 4. None 2
Naveen, aged 32 years, has taken money back plan. He is a teacher by profession.
Naveen referred Prasad to Ram. Prasad is also teacher. Ram who is an agent advised 1. Yes, as Naveen and 2. No, customers needs 3. Yes, as both are 4. No, as there is an age
329 Ch 9 2
Prasad to take money back plan as he is of same age (33 years). Is it the right advice? Ram are of same age. are different teachers difference.
Why?
4. The insurance cover is
1. A Family Floater Plan 2. Only self and spouse 3. Any number of people
shared amongst the family
330 Ch 9 Which of the following is true regarding Family Floater Health Insurance Plan? is the same as a can be covered in this may be covered in this 4
members in no fixed
Individual Plan plan plan.
Proportion.
Mr. Govind, Advisor with ABC life insurance company find out one client is seeking
2. Young married with
331 Ch 9 solutions for health care and inheritance planning. Which main life stage he most likely 1. Young Unmarried. 3. Retirement. 4. Children. 3
children.
to fall into?
1. Closed Ended 2. Open Ended 3. Interrogative
332 Ch 9 Which type of questioning is very useful to gather information from clients? 4. Clarification Questions. 2
Questions Questions. Questions.
1. recommend the 3. recommend the new 4. Recommend to take his
2. recommend to wait
333 Ch 9 During the recommendation stage the advisor needs to...... products that best meet product the company has own time to take a 1
some days to invest
the client's needs recently launched decision.

1. The life of the person 2. The risk retained 3. The financial goal of the
334 Ch 9 Insurance Protects which of the following? 4. The life of the nominee 3
paying compensation person 's family insured
In which of the following an agent will collect the customer‟s Personal data, 2. Advisor Confidential 4. Personal and financial
335 Ch 9 1. Fact Finding Sheet 3. Customer Data sheet 1
professional data and financial data Sheet data sheet
Mr.Mohith, an agent was explaining to his customer the guaranteed benefits of the
1. Fact Finding 3. C. Benefit illustration 4. D. Client benefit
336 Ch 9 product. Which one of the following documents he would have used to explain the 2. B.KYC document 3
document document document
same?
Mr.Harsha an agent wants do a thorough Fact Finding for his client to Mr.Kishan who is 1. Client‟s Profits and
2. Client‟s Expense
337 Ch 9 a business man. Which of the following information will be helpful to know about the Withdrawals from 3. Client‟s business details 4. Client‟s business records 1
statement
earnings and Expense of Kishan? business
During the fact finding session as an agent you should follow which one of the 1. Prioritize, Identify & 2. Identify, Quantify & 3. Quantify, Identify & 4. Prioritize, Quantify &
338 ch 9 2
following process? Quantify Needs. Prioritize Needs. Prioritize Needs. Identify Needs.
4. Both identify clients‟
1. Gather Clients 2. Identify only the 3. To provide solution of
339 ch 9 The objective of Fact Finding is to needs & gather 4
Information only. client‟s needs. company‟s choice.
information.
3. Provide for anticipated 4.Surrendering the existing
340 Ch 9 Objectives of fact-finding do not include- 1. Identify needs 2. Gathering client data 4
changes policies for selling new one
Which one of the following documents distinguishes between Guaranteed and non- 2. Benefit illustration
341 Ch 9 1. KYC documents 3. Fact-finding sheet 4. Financial details 2
guaranteed benefits? documents
2. Should ask for the
If the client does not wish to proceed with the recommendations right at the moment 1. Insist on taking the reason for not going 3. Should ask for a future 4. Should review once
342 Ch 10 2
the agent should product right away with the date from the client again
recommendation
The consequences of these risks which will affect specific individuals or local
343 Ch 10 1. Pure risk 2. Financial risk 3. Particular risk 4. Physical hazard 3
communities in nature is called as
1. Insurance broker 2. The client represent
3. Insurer represent both
According to Insurance Brokers Association of India, what is the most appropriate represent the client and the broker and the 4. Broker only service the
344 Ch 10 client and broker 1
relationship between Insurer and Broker? the insurer remunerate insurer remunerate the client
remuneration
the broker broker
What is the stipulated time frame within which an insurer is supposed to respond
345 Ch 10 1. 24 hours 2. 1 day 3. 10 days 4. 30 days 3
after receiving any communication from its policyholders?
346 Ch 10 Naresh is married and his daughter Sneha is 3 years old. Which plan can he take? 1. Term & Children Plan 2. Annuity Plan 3. Whole Life Plan 4. Health Plan 1
347 Ch 10 What is the factor which has influence on persistency? 1. Role of Agent 2. Product Design. 3. Policy Servicing 4. All of the above. 4
1. A legal person to act 2. B.A legal person to 4. D. An authorized agent
3. C.A legal person to act
348 Ch 10 Agent who is a licensed intermediary is actually is ? on behalf of the re- act on behalf of the to act on behalf of the legal 2
on behalf of the contract
insurer insurer company
1. Regular reminders 2. Flexibility of
3. Dispatching Discharge 4. Continuous servicing of
349 Ch 10 Which one of the following factor does not help in the Persistency ? about the premium to Premium payment to 3
voucher to the customer the policy
the customer the customer
After undertaking financial planning exercise, the prospective client said that he does
1. Objection handling 4. Client information
350 ch 10 not have funds for investments. To resolve this query, which skill of an agent would be 2. Listening skills. 3. Communication skills. 1
skills. gathering skills.
tested?
2. Should ask for
When client declines the recommendation by the insurance adviser even after 1. Persuade the client to reference who might be 3. Should never approach
351 ch 10 4. Should do nothing. 2
resolving the concerns, the adviser should purchase the policy. interested in financial the client ever again.
planning.
352 ch 10 What key benefit high persistency ratios have on insurance adviser? 1. High renewal income. 2. Less renewal income. 3. Fewer client bases. 4. Unsatisfied clients. 1
 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 1. Ruining the long term 2. Opportunity of new 3. Bad reputation of the 4. Financial burden on the
353 ch 10 2
years from now. An adviser sold than a unit link product to meet their requirement. reputation of company. business for adviser. individual adviser. couple.
This may result in
Under which one of the following acts the maximum remuneration that can be given to
354 Ch 10 1. Income Tax Act 2. Indian Contract Act 3. Insurance Act 1938 4. IRDA Act 1999 3
insurance agents described?
1. Helps the client in 3. Increased client
355 Ch 10 Which one of the following is not a benefit of persistency? 2. Reduction in costs 4. Decreased revenues 4
achieving goals satisfaction
1. Satish should check 2. Satish should outline 4. Should advised him to
3. Satish should check the
Satish as an insurance advisor while recommending to his client Ramesh is not the Ramesh „s the reasons for surrender all the polices
356 Ch 10 acceptance or rejection of 4
suitable policies – commitment to the recommendation for a which are not buy from
the recommendation.
needs particular policy satish.
4. Introduction of a new
1. A satisfied client may 2. Reviewing financial 3. Agent has the option to
insurance product or a
357 Ch 10 Why a building long term relationship with clients is necessary? be the source of other needs and plans are recommending highest 3
change in a client‟s
potential clients necessary with changes commission at any time.
Circumstance
A claim was paid in a policy and it was advertised in the newspaper also. This
358 Ch 11 1. It was assigned. 2. It was paid up. 3. It was lost. 4. It was surrendered. 3
indicates that the policy was.
An indemnity bond was signed in a policy when the claim was paid. This indicates
359 Ch 11 1. It was lost. 2. It was paid up. 3. It was lapsed. 4. It was surrendered. 1
that the policy was.
2. Lack of insurable
360 Ch 11 Which of the following falls under voidable contract? 1. Misrepresentation 3. Fraud 4. None of the above 1
interest
Generally insurance companies do not hold the premium in case of a fraud or
4. Pending decision from
361 Ch 11 misrepresentation. However, due to which of the following circumstances the insurer 1. Fraudulent claim 2. Indisputability clause 3. Redressal procedure 2
Ombudsman
can retain the premium of the policyholder
1. All members of a 2. Husband and Wife
362 Ch 11 Family floater health Insurance plan covers 3. Parents only 4. Children Only 1
Family only
Who is a regulator, supervisor and monetary authority of the financial system in
363 Ch 11 1. IRDA 2. SEBI 3. RBI 4. SBI 3
India?
364 Ch 11 An individual is said to be competent to enter into a contract if they are 1. 18 year old 2. 21 year old 3. 23 year old 4. 25 year old 1
For tax Saving Someone wants to fixed deposit in bank. What duration is required for
365 Ch 11 1. 3 years 2. 5 years 3. 7 years 4. 2 years 2
it?
366 Ch 11 Pure risk is classified under 1. Economic risk 2. Speculative risk 3. Financial risk 4. Insurable risk 4
For the customer whose claim has been refused by the company, the three places
367 Ch 11 where he/she should follow up are – Ombudsman, IRDA Customer Grievance Cell and 1. Consumer Forum 2. COPA 3. Sebi 4. Life Insurance Council 1
………………………..
Prashant buys an Endowment Plan with a sum assured of Re. 100000 and wants to
368 Ch 11 make use of tax benefit under the policy for whole SA. How much premium would help 1. Less than 10000 2. More than 10000 3. Less than 20000 4. More than 20000 3
him avail this benefit
Vinay doesn‟t want to take insurance on himself. He feels that his family will survive
369 Ch 11 with the funds available in the bank and monthly rentals received from village. This 1. Transfer 2. Control 3. Retaining 4. Avoidance 3
comes under Risk ______
1. A demand to fulfill2. A demand to fulfill 3. Any demand made by
370 Ch 11 What is meant by a claim under insurance policy? the policyholder‟s the insurer‟s the policyholder on the 4. All of the above. 2
obligations. obligations. insurer.
371 Ch 11 Who will take the initiation to settle the maturity claim process? 1. Client 2. IRDA 3. Advisor 4. Insurance company 4
2. The insurance 4. Enquiry will be done if
1. The insurance 3. Enquiry will be done on
company makes death happens before one
372 Ch 11 Which is the right statement regarding claim enquiry? company makes enquire both Maturity and Death 1
enquire on maturity year from policy inception
only on death claims. Claims.
claims only. date.
373 Ch 11 A missing person will be presumed to be dead only after…. 1. Three years 2. Five years. 3. Seven years. 4. Nine years. 3
Mr. Chintamani has taken a policy from ABC Company on 2nd March 2010, but
374 Ch 11 1. Normal death claim 2. Early death claim 3. Abnormal death claim 4. Unnatural death claim 2
unfortunately he died on 18th August 201 His death claim is considered as..........
375 Ch 11 Detailed Investigation will be triggered in case of...... 1. Maturity claims 2. All death claims 3. Early death claims 4. Rider benefit claims. 3
376 Ch 11 In insurance, if a person is not heard for .......years his is presumed to be dead. 1. 5 years 2. 6 years 3. 7 years 4. 8 years 3
2. the process is
1. the company will wait 4. If the claimant does not
initiated by the 3. it is the responsibility of
until the claimant comes come within a month the
377 Ch 11 In the process of settling maturity claims.... company well in the claimant to approach 2
to office to demand the entire maturity amount will
advance of the maturity the company
claim be forfeited.
date
Mr.Feroz has taken policy for critical illness worth Rs.1 lakh in health policy. He also 1. claim of critical 2. claim of hospital
3. Claim will not be 4. Claim will be settled as
has a term plan worth Rs.10 lakhs. Mr.Feroz was hospitalized after he was detected illness and 10 lakh from charge Rs 20,000 and 1
378 Ch 11 settled as he died due to per the instructions of 1
with cancer .Unfortunately he died after 3 days of treatment. How the claim will be term policy will be lakh for death will be
cancer underwriter
settled? settled settled
Mr. sham had taken a term plan in 2008 . He died of cancer in 20 Investigation about 2. Claim will be settled
3. Claim will be settled as
379 Ch 11 his death revealed that he was deducted cancer in 200What will happen to his death 1. Claim will be rejected as Cancer was not 4. Claim will be delayed 1
he died in 2010
claim? deducted in 2008
2. Total 4 lakhs will be
Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He also has an 1. Total 7 lakhs will be
paid as death had 3. Total 11 lakhs will be 4. Total 7 lakhs will be paid
380 Ch 11 ADB rider worth Rs. 4 lakhs. Unfortunately Baskar died in a car accident. How much paid as death had taken 3
happened due to car paid without any deduction.
will be the death claim settlement? place
accident
Mr.Sampath has taken a policy on January 10th 2006 for a term of 12 years. Due to 1. Eligible for claim as 3. Claim will be settled 4. Claim will be settled
2. Not eligible for Claim
381 Ch 11 financial instability he discontinued to pay the premium from 201 He died on August the premium was paid after deducting the unpaid after the deduction of 2
settlement
13th 201 What will happen to his death claim ? from 2006 to Dec 2010. premium unpaid loan amount
 2. When the client‟s
1. When the clients 3. When the nominee has 4. When the maturity/claim
382 ch 11 The agents duties and responsibilities ends needs have been 4
policy is issued. changed. is settle4.
established.
1. The policyholder 2. The nominee makes 3. The event insured 4. The insurer completes
383 ch 11 Insurer will not pay the claim unless 3
makes a demand. a demand. against happens. the enquiry.
Aman has taken a term plan for 20 years. In the 3rd year he suffered financial crisis
1. The policy was not in 2. This condition is 4. The claim is an early
384 ch 11 due to which he was unable to pay premium within grace period and died after 1 3. The claim is fraudulent. 1
force. excluded in the policy. claim.
month. The nominee files a claim and is rejected because
When a policy is lost, insurance company take utmost care while settling maturity 1. The claim may not be 2. The policy may be 3. The facts were
385 ch 11 4. There is no nomination. 2
claims because genuine. pledged. misrepresented.
1. In to paid up and 3. Deduct the underpaid
Pranab is not able to pay premium for continue his policy due to some Financial
reduced Sum Assured 2.Return of Premium on premium from Sum 4. Policy was subject to
386 Ch 11 problem, so he rather than surrendering the policy, what Option he has to convert 1
would be payable on maturity assured and payable on lien.
……….?
maturity. Maturity
3. Sum assured plus
Ajay has bought an endowment with profit plan for 20 year .if he took a Loan after 5th
vested bonus minus any
387 Ch 11 of commencement of policy and died before 2 year of Maturity .what would be payable 1. only Sum assured 2.Sum Assured + Bonus 4. Paid up value only. 3
outstanding loan/premium
on maturity?
& Interest.
Under what kind of Rider the insurance company pays the treatment cost in the event 1. Accidental death
388 Ch 11 2. Critical illness (CI) 3. Hospital Care (HC) 4. Term Rider. 3
of hospitalization of the insured, subject to term & Condition of the rider. benefit (ADB)
Which one of the following report is not considered in case of Pankaj Bought a plan in 1. Policy first 2. Advisor confidential
389 Ch 11 3. Post Mortem Report. 4.Coroners Report 2
2009 & died in road accident in 2011 : information report. report
2. Give a joint decision
1. Give a
390 Ch 12 If a case is already before the consumer forum, then the ombudsman should with the consumer 3. Dismiss the case 4. Give an award. 3
recommendation
forum
1. First five years of 2. First Two years of
391 Ch 12 Indisputability clause can be enforced by the insurance company during the 3. Claim 4. Inception of the policy 2
policy policy
Ashish is looking at different plans of insurance for protection at the lowest premium.
392 Ch 12 1. Term plan 2. Endowment plan 3. Whole life plan 4. Money back plan. 1
Which is the best plan for him?
2. Understand about 4. Understanding the
393 Ch 12 What is the major reason for conducting fact finding exercise? 1. Need analysis 3. Introduction of agent 1
company Customer
1. Life Insurance
394 Ch 12 The guidelines for annual assumed growth rate are given by 2. IRDA 3. Actuaries 4. Underwriter 2
Council
395 Ch 12 Pricing element is done by 1. IRDA 2. Insurance Company 3. Life Insurance Council 4. CII 2
396 Ch 12 As per AML regulation, it allows cash premium not over than 1. Rs.20000 2. Rs.25000 3. Rs.5000 4. Rs.50000 4
397 Ch 12 Which is the not part of KYC norms? 1. Photographs 2. Proof of identity 3. Proof of address. 4. Lapsed policy details. 4
1. First Year 2. Renewal 4. Salary and
398 Ch 12 Remuneration to Agents includes 3. Both of the above. 3
Commission Commission. Reimbursement.
nd
399 Ch 12 Which is the 2 stage in Money Laundering? 1. Layering 2. Placement 3. Integration 4. Amalgamation. 1
3. need to disclose the
1. need not disclose the 2. need to disclose the
400 Ch 12 As per the IRDA circular an insurance agent....... amount of commission on 4. Should not disclose. 3
amount of commission amount of commission
demand
4. Paid in lump sum to the
401 Ch 12 In the case of agent's death, the commission payable will be paid to......... 1. his legal heirs 2. to his nominee 3. will stop automatically 1
survivors.
1. Section 42 of the 2. Section 42 of the 3. License section of 4. License section of
402 Ch 12 Which one of the section deals with the licensing of an agent? 1
insurance act 1938 insurance act 1936 Insurance act 1938 insurance agent act 1938
1. Need to complete 25 2. Need to complete 50 3. Need to complete 25 4. Need to complete 50
hours of practical hours of practical hours of practical training hours of IRDA training and
Mr.Varun taken up his agency in July 5th 200 His lost his IRDA license while
403 Ch 12 training and paying training and paying and paying Rs.100 for the paying Rs.50 for the 1
travelling. His agency has also expired. What is the solution for Mr.Varun ?
Rs.50 for the issuance Rs.100 for the issuance issuance of duplicate issuance of duplicate
of duplicate license of duplicate license license license
404 ch 12 Under Married Women‟s Property Act, 1874 a policyholder is 1. The Life Assured. 2. The beneficiaries. 3. The trustee. 4. The administrator. 3
3. Branch Operations
405 ch 12 Who has the authority in insurance company to issue/cancel the agents license 1. Insurance Company. 2. Designated Person. 4. Actuary. 2
Team.
Married Woman‟s Property Act 1874 provides that a life insurance Policy that has been
406 Ch 12 1. Married Woman 2. Married Man 3. Married Son 4. Married Daughter 2
taken out by:
3. A fixed amount on a
How the Daily hospitalization cash benefit will provide benefits to policyholder who is 1. Entire charges are 2. Entire charges less daily basis is paid 4. Only Hospital bill will be
407 Ch 13 3
hospitalized? refunded. bed charges will be paid irrespective of the actual paid
cost of treatment
If there is no claim in a year than what will be the benefit to the customer as NO 1. Discount in next year 2. Increase in Sum
408 Ch 13 3. Loans facility 4. No benefit 1
CLAIM BONUS premium Assured next year
409 Ch 13 Ombudsman passes an award within which time 1. 1 month 2. 2 months 3. 3 months 4. 6 months 1
1. Life Insurance 4. Insurance Institute of
410 Ch 13 Which body has created a call center for logging a complaint 2. IRDA 3. Insurance Association 2
Council India
One person wants to take term plan for 20 lakh and wants to take ADB rider, he is not 3. Any Amount he can
1. Needs to take
411 Ch 13 sure of how much sum assured he needs to take for ADB rider. What is your 2. Equal to base cover take if he is ready to pay 4. 50% of SA max. 2
expert‟s suggestion
suggestion? premium
Insurance companies are required to honor the awards passed by the Insurance
412 Ch 13 1. 10 days 2. 15 days 3. 20 days 4. 25 days 2
Ombudsman within how may days
During financial planning session if the agent finds out the following needs, which one
413 Ch 13 should be given the top priority. Needs: Income protection, Childs education, marriage 1. Childs education 2. Marriage 3. Emergency funds 4. Income protection 4
and emergency funds.
 If a valid claim is delayed by the insurer then the interest for the same will have to be
414 Ch 13 1. 10 days 2. 20days 3. 30 days 4. 60 days 3
paid by the insurance after how many days from the date of admission of the claim?
415 Ch 13 _____ controls monetary system in India 1. RBI 2. IRDA 3. SEBI 4. Constitution 1
What is the maximum stake can foreign company has in one insurance company in
416 Ch 13 1. 74% 2. 26% 3. 24% 4. 76% 2
India?
1. Insurance Regulatory
Who controls and regulate the rates, advantages, terms and conditions that may be 2. Reserve Bank of 3. Tariff Advisory 4. Insurance Institute of
417 Ch 13 and Development 3
offered by insurers in the respect of general insurance business. India. Committee. India.
Authority.
According to IRDA regulations the maximum percentage of first year commission to
418 Ch 13 1. 30 % 2. 35% 3. 40% 4. 45% 2
be paid to an insurance advisor is.............
1. Section 43 of the 2. Section 42 of the 3. Section 12 of the 4. Section 34 of the
419 Ch 13 Issuance of a license to a person has been stipulated in................Act 2
Insurance Act 1939 Insurance Act 1938 Insurance Act 1922 Insurance Act 1932
420 Ch 13 The foreign direct Investment (FDI) in Indian Insurance Industry is allowed up to..... 1. 50% 2. 25% 3. 26% 4. 27% 3
421 Ch 13 The Insurance Institute of India (III) was formed in..... 1. 1956 2. 1999 3. 1955 4. 1947 3
2. Reserve bank of 3. Reserve bank of
422 Ch 13 Which official body decides to increase the interest rates? 1. Central bank of India 4. Central bank of country 2
India country
1. Representatives from 2. Representatives from 3. Representatives from 4. Representatives from
423 Ch 13 Which of the following team represents the members of GBIC ? 1
all insurance companies all government bodies IRDA Insurance institute of India

Which council among the following focus on creating a positive image of the insurance 2. Consumer insurance 3. National Insurance 4. General insurance
424 Ch 13 1. Life insurance council 1
industry and would also like to enhance the Consumer‟s confidence on the same ? council council council
2. Reputation of the
Mrs. Hansa an agent, has planned to sell maximum products within a short span of 1. It will benefit both
company will be high 3. Agent will be 4. Agent will be qualified
425 Ch 13 time by giving maximum rebates to the customer to complete the contest target of the the company and the 3
due to offers to the terminated for the contest
company. customer
customer
Mr.Raghav is an expert in fact finding .Mr.Raghav helps his brother in his job by 1. Raghav will be
2. Raghav will be 3. Raghav License will be 4. Customer will complain
426 Ch 13 sharing the information of his clients after the fact finding he does to procure promoted to the next 3
terminated cancelled to Ombudsman
insurance. What will be the outcome ? level
Which organization was formed with purpose to promote insurance education and 1. Institute of Actuaries 2. National Insurance 3. Chartered Insurance 4. Insurance Institute of
427 ch 13 4
training in India? of Indi1. Academy. Institute. India.
1. Life Insurance 2. Life Insurance 3. Insurance Regulatory 4.Insurance Institute of
428 Ch 13 The face of the life Insurance industry in India is ………..? 1
Council Corporation Development Authority India
429 Ch 13 At what percentage FDI allowed in life Insurance sector by Govt. 1.26% 2.24% 3.74% 4.49% 1
2. Same for all policies
If a policy holder buys a policy from the advisor and lodges a complaint, it should be 1. Same for all policies 3.Only for policy for which
430 Ch 14 sold by the advisor 4.None applicable 1
treated as : sold by advisor complaint has been given
except corporate clients
431 Ch 14 Group Insurance can be taken in following relationship 1. employee- employer 2. husband-wife 3. family members 4. society members 1
432 Ch 14 Maximum time for investigation in disputed claim? 1. 1 month 2. 2 months 3. 3 months 4. 6 months 4
The Ombudsman‟s powers are restricted to insurance contracts of value not
433 Ch 14 1. 50 lakhs 2. 30 lakhs 3. 25 lakhs 4. 20 lakhs 4
exceeding?
3. Up to the sum assured
434 Ch 14 What amount of insurable interest does an individual have in his own life? 1. 20,000 2. 50,000 4. Unlimited 4
taken in the plan
Harsh‟s policy matured, however he was paid only 25% of the sum insured in spite of
435 Ch 14 1. Term plan. 2. Endowment plan. 3. Money back plan. 4. Wholelife plan. 3
all his premiums been paid on time. This indicates that his policy is a
4. Insurance can price their
3. Reaches at a level as
436 Ch 14 De- tarrification is a process by which pricing of Insurance 1. Rises 2. Decreases product on their self past 4
per industry trends
experiences.
2. Those Insurer who
As per Regulation for protection of Policyholder‟s interest 2002 (IRDA), Which insurer did not created
437 Ch 14 1. Some Specific Insurer 3. All insurer 4. It is optional 3
will have a grievance redressal System Insurance Ombudsman
System
438 Ch 14 What will be lien amount in 3rd year as compared to the 4th year of lien. 1. It is higher 2. Decrease 3. Slightly higher 4. Slightly lower 2
2. All types of insurance
439 Ch 14 Pooling of insurance applies to 1. all types insurance 3. Only life insurance 4. Only Non-life insurance 1
except Motor insurance
440 Ch 14 What is the disadvantage to the insurer in case the persistency falls 1. Lower profits 2. Higher profits 3. Increased Liability 4. Decreased Life fund 1
For annuity plans, before receiving regular/periodic annuity payments, the individual
1. The entire fund can 2. Only half of the fund 3. Only one third of the 4. Only one fourth of the
441 Ch 14 can make a lump sum withdrawal. This is known as commutation. Up to what 3
be withdrawn can be withdrawn fund can be withdrawn fund can be withdrawn
proportion of the accumulated fund can be withdrawn?
3. Appointment of
AML Program of every insurer to include _______________, apart from Procedure, 2. Audit by Finance 4. Inspection by Auditor
442 Ch 14 1. Inspection by IRDA Principal Compliance 4
Training and audit. Ministry General
Officer
443 Ch 14 What is the minimum Sum Assured allowed for Micro Insurance? 1. 5000 2. 10000 3. 15000 4. 20000 1
1. Any Nationalized
444 Ch 14 Where would you have to go if you wanted to buy a Kisan Vikas Patra? 2. Insurance Company 3. Post Office 4. Mutual Fund Company 3
Bank
445 Ch 14 How many ombudsmen offices located in India? 1. 10 2. 12 3. 14 4. 15 2
What the name of department that is established by IRDA to deal with customer 1. Customer Complaint 2. Customer Grievance 3. Consumer Affairs 4. Consumer Protection
446 Ch 14 3
complaints? Department (CCD) Department (CGD) Department (CAD) Department (CPD)
447 Ch 14 The insurance ombudsman has been appointed to protect the interest of....... 1. policyholders 2. shareholders 3. insurers 4. General insurers. 1
 The charges were not fully disclosed to the customers" is a common complaint
448 Ch 14 1. IRDA 2. Agents 3. Shareholders 4. Underwriters 2
against.....
1. Protection of Policy 2. IRDA claim 3. C.IRDA policy
4. D. Protection of claim
449 Ch 14 Which regulations take care of the settlement of claims ? holder Interests protection regulation settlement regulation 1
settlement regulation 2002
regulation 2002 2002 2004
If any consumer is dissatisfied with the customer care cell of any insurance company
450 Ch 14 1. Nodal officer 2. Grievance call center 3. Compliance cell 4. Compliance officer 1
to whom they can escalate their grievances.
Which is the Regulation that insists that all the insurance companies should provide
1. Policyholder 2. Policyholder‟s
451 Ch 14 the information about the insurance ombudsman of that region while sending the 3. Ombudsman Regulation 4. Compliance Regulatory 2
grievance Regulation Protection regulation
policy documents.
A client demands the information on the current status of a policy indicating accrued
452 Ch 14 1. 10 Days. 2. 15 days. 3. 20 Days. 4. 30 Days. 1
bonus. The insurer should provide communication within
2. Internal Grievance
1. Integrated Grievance 3. Grievance Redressal 4. Consumer Affairs
453 Ch 14 To ensure that the customers complaints are handled effectively, IRDA has established Redressal Cell of the 4
Management System. Officer. Department.
Insurer.
If policy holder is not satisfy with term and condition the policy which She/he has
454 Ch 14 1.15 Days 2.20 Days 3.25 Days 4.10 Days 1
received, then has option to return policy with in……..?
How Many offices of Ombudsmen the Government body has set up to Resolving
455 Ch 14 1.15 2.12 3.14 4.16 2
insured customer‟s grievances.
After doing the need analysis of the client, the agent advised the client to opt for
1. Enquire about the 2. Suggest an 4. Pass on to the other
456 Ch 15 TROP product. But the client refused. According to ethical business practices what will 3. Pass on to the superior 1
refusal from the client alternative plan agent
the agent do ?
According to IRDA agent‟s code of conduct, what is the best method of showing the 1. Signed copy of sales 3.Hand written declaration 4.Verbal communication to
457 Ch 15 2. Brochure 1
amount of commission earned by the advisor illustration by agent customer
2. Specified amount
multiplied by the 3. expenses incurred per
1. 10% of the sum
458 Ch 15 Under the hospital care rider what is the payout made number of days the day multiplied by no. of 4. 100% of Sum Assured 2
assured
policyholder is days stay in the hospital
hospitalized
Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers
459 Ch 15 1. Nil 2. 10% 3. 20% 4. 30% 1
illness before maturity?
2. If the agent has
1. When the insurance 3. If the agent has worked 4. If the agent is doing
worked with the
460 Ch 15 When can an insurance company give more than 35% first year commission? company is in the first with the company for more than 3 policies in a 1
company for more than
10 years of operation more than 10 years month.
5 years
461 Ch 15 A person suffering from lung cancer is a smoker. Here smoking can be termed as 1. Peril 2. Hazard 3. Risk 4. Uncertainty 3
3. Certificate from Village 4. Certificate from School
462 Ch 15 Which of the following is a Non Standard Age Proof 1. PAN Card 2. Certificate of Baptism 3
Panchayat or College
License of an agent was withdrawn in June 2010 due to malpractice. He can reapply
463 Ch 15 1. 2015 2. 2014 3. 2013 4. 2017 1
for his license in
Mr. Gayaram, Advisor who advised the customer to close the old policy and take new
464 Ch 15 one. But new policy does not have any extra benefits but it will give more commission 1. Switching 2. Churning 3. Redirecting. 4. Shifting. 2
to Mr. Gayaram. This is called as……
2. Behavior that is
1. Those values we 3. A study of what makes
based upon the moral
465 Ch 15 Ethics can be defined as… commonly hold to be one‟s own actions right or 4. All of the above. 4
judgments of an
“good” and “right”. wrong.
individual
1. Over selling of 2. Under selling of 3. Explaining all details of
466 Ch 15 Which is not unethical behavior in below statements? 4. Churning. 3
Insurance policies. Insurance policies. the policy to customer.
467 Ch 15 For an insurance advisor churning is.............practice 1. good 2. bad 3. compulsory 4. appreciable 2
Mr. Sharma is a newly recruited insurance advisor. To meet his month target he
468 Ch 15 explains only the good points of newly launched plan to his customer. Here Mr. 1. ethical 2. unethical 3. professional 4. Perfect. 2
Sharma's behavior is............
3. Insurance Institute of
469 Ch 15 The code of conduct has been prescribed in India by........... 1. IRDA 2. Insurance Council 4. Government of India. 1
India
Mr. David an agent had helped Mr. Srinivasan to take an endowment policy on Feb
200As srinivasan was finding it difficult to pay the premium, Mr. David had advised 1. Churning of the 2. Surrendering the
470 Ch 15 3. Switching the policy 4. Claiming the policy 1
him to surrender this policy and to apply for a lower premium policy. This is called as policy policy
?
Rahul is a licensed insurance agent. As agent he must carry out his role in accordance 1. Company‟s code of 2. IRDA Acts code of 3. IRDA Regulations code 4. Insurance Acts code of
471 ch 15 3
with conduct. conduct. of conduct. conduct.
Shankar, an adviser, sold a term insurance policy and unit-linked insurance policy
1. Underselling of 3. Overselling of insurance 4. Ethical practice by an
472 ch 15 (ULIP) to Amar, the client, who is unmarried and has no dependent. Consequently, 2. Churning. 3
insurance policies. policies. adviser.
Shankar‟s action can be termed as
For Insurance industry which association to take steps to Develop Education and 1. Life Insurance 2. Life Insurance 3. Insurance institute of 4. Insurance Institute of
473 Ch 15 1
research in insurance? Council Corporation India India
1. Insurance Regulatory 2. Life Insurance
474 Ch 15 Pankaj being a license insurance advisor has to follow code of Conduct provided by: 3. Reserve Bank of India 4. SEBI. 1
Development Authority Company