*Note: Correct Answers Marked as Bold

1. If Neha took policy that mnean she transfer risk to _

(a) Agent
(b) IRDA
(c) Insurance Com.
(d) None of the above.

2. It is the _ primary responsibility to meet the prospective client, understand their needs,
and accordingly recommend suitable products.

(a) Development Officer’s

(b) Underwriter’s
(c) Agent’s
(d) None of the above

3. Insurance Product is –

(a) Risk cover

(b) Insvestment option
(c) Combination of both
(d) None of the above

4. Against the transfer risk the insured will have to pay a certain amount (Consideration)
to the insurer, which is known as the –

(a) Sum Assured

(b) Claim
(c) Bonus
(d) Premium

5. The level of risk is normally assessed in terms of the

(a) Frequency
(b) Severity
(c) Both
(d) None of above

6. To provide the children’s marriage expenses means

(a) Retirement
(b) Savings Accumulation
(c) Disease
(d) All of above.

7. Following are standard age proofs

(a) School Certificate

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 (b) College Certificate
(c) Passport
(d) All of the above.

8. _ means placing the insured in the same financial position after the loss, as they were
before the occurrence of the loss.

(a) Indemnity
(b) Material Facts
(c) Utmost good faith
(d) None of the above

9. The person who transfers their title in the insurance policy is known as –

(a) Nominee
(b) Appointee
(c) Assignee
(d) Assigner

10. A policyholder dies after policy foreclosure action but before surrender payment, then
amount is payable to

(a) Spouse
(b) Assignee
(c) Nominee
(d) None of the above

11. Feature of a valid contract are

(a) Consensus ad idem

(b) Legality of object or purpose
(c) Capability of performance
(d) All above

12. _ is necessary to create a valid insurance contract

(a) Insurable interest

(b) Relationship
(c) Involvement
(d) All above

13. The person seeking insurance is called-

(a) the proposer

(b) the employer
(c) the insured
(d) All above

14. To prove identity in accordance with KYC process the customer needs to submit

(a) Age proof

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 (b) Identity proof
(c) Address proof
(d) All above

15. The provision of the policy states

(e) Surrender value

(f) Nomination
(g) Both
(h) None of the above

16. If an existing disease is not considered suitable for cover by a certain company, another
company might cover it to some extent with the payment of extra premium

(a) Statement is partly true

(b) Statement is wholly correct
(c) Statement is incorrect
(d) None of the above

17. On which principle is the business of insurance is based on

(a) Risk sharing

(b) Risk assessment
(c) Risk exclusion
(d) All of the above.

18. What does a underwriter do

(a) analyse a proposer’s real intentions for taking insurance

(b) make a decision on whether to accept or reject the proposal
(c) examine all the facts available to them
(d) all of the above

19. What will have a bad effect on the company

(a) adverse selection

(b) charging extra premium
(c) none of the above
(d) all of the above

20. These plans can be sold by both a life insurance agent and general insurance agent

(a) unit linked insurance

(b) Micro insurance
(c) Double endowment
(d) None of the above

21. Which plan assures to pay the sum assured on survival and not on death

(a) Term Insurance

(b) Medical Insurance

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 (c) Pure endowment
(d) All of the above

22. In a cumulative deposit the interest is normally compounded on a …. Basis

(a) Annual
(b) Half yearly
(c) Quarterly
(d) Monthly

23. In participating plans the investment risk is taken by the

(a) Insurance company

(b) Investor
(c) Both
(d) None of the two

24. If the customer withdrawls their money before the expiry of the lock in period, the mutual
fund deducts an … load and pays the balance amount

(a) entry
(b) capital
(c) exit
(d) risk

25. The full form of CBDT

(a) Central Board of Direct Taxes

(b) Central Board of Dependant Taxes
(c) Controlling Board of Direct Taxes
(d) Central Board for Dependant Taxes

26. They are an instrument where an individual has to invest a lump sum amount with a bank
for a fixed tenure at a fixed interest rate

(a) Bank Deposit

(b) Fixed Deposit
(c) Term Deposit
(d) All the three

27. …… can be enhance the death cover amount in a policy at a nominal cost

(a) DAB
(b) TR
(c) CIR
(d) PWB

28. The rider waives future premiums in the event of the disability of the policyholder due to
illness

(a) Accident benefit

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(b) Waiver of premium
(c) Critical illness
(d) None of the above

29. A…can be used to enhance the death cover in a policy

(a) Term rider

(b) Critical illness rider
(c) Accident benefit
(d) All of the above.

30. ……. Are additional benefits that can be added to insurance policies

(a) Sum Assured

(b) Revival
(c) Riders
(d) Claim

31. ….. for their children’s future is an important need that every parent will want to give
top priority to.

(a) Protection
(b) Risk cover
(c) Investment
(d) Surplus

32. Married with older children needs to

(a) Protect their income

(b) Needs life protection with future income
(c) Needs to cover the cost of higher education and the marriages of their children.
(d) Protect retirement life

33. Determine the order in which the agent should go about before recommending suitable
insurance product to the client a) identifying needs b)prioritizing needs c) quantifying
needs

(a) a-b-c
(b) a-c-b
(c) b-c-a
(d) b-a-c

34. The agent needs to ask Plans ambitions of the client for

(a) Career, occupation or business

(b) Investments and loan finance
(c) Both
(d) None of the above.

35. Agent needs to locate product

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(a) that satisfy a given need
(b) that require low cost
(c) that satisfy a given need with lowest cost
(d) None of the above.

36. … involves reminding the client of the needs that were agreed during the fact-finding
process

(a) Checking the client’s commitment to the needs

(b) Checking the client’s commitment to the needs
(c) Acceptance or rejection of the recommendation
(d) Churning and product switching

37. A low persistency ratio means fewer benefits that originally expected and a loss of
insurance cover for -----

(a) Client
(b) Agent
(c) Insurance Company
(d) IRDA

38. Keeping policy inforce till maturity helps----- to achieve the ultimate goal

(a) Client
(b) Agent
(c) Insurance Company
(d) IRDA

39. A low persistency ration means that a large number of policies have lapsed or have
been surrender, resulting in a loss of profits and a reduction in the accumulation of
reserves for…….

(a) Client
(b) Agent
(c) Insurance Company
(d) IRDA

40. If Mr. Vikas took Term Assurance of `25 lac pays annual payment at every 1st July.
Due to financial problem he didn’t pay premium for current year death took place on
15th Sept. Nominee will get

(a) Sum Assured

(b) Sum Assured with Bonus
(c) Reduced Sum Assured
(d) Nothing is payable

41. Indian Evidence Act …….deal with presumption of death in case of missing

(a) 1871
(b) 1872
(c) 1873

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(d) 1874

42. In case of ULIP, the insurance company pays at the time of death

(a) Fund value

(b) Sum Assured with Fund value
(c) Higher of the Sum Assured Fund value
(d) All above

43. Increase in premium amount because of fraud claim make consequences on

(a) Insurance Company

(b) Insured
(c) Claimant
(d) IRDA

44. …… prohibit resident Indians from taking out life/general insurance policies issued by
an insurer outside India

(a) Foreign Exchange Management Regulations 2000

(b) Foreign Exchange Management Regulations 2001
(c) Foreign Exchange Management Regulations 2002
(d) Foreign Exchange Management Regulations 2003

45. Insurance Agent qualification is mentioned in regulation------ of IRDA (Licensing of

Insurance Agents) Regulations 2000

(a) 1
(b) 2
(c) 3
(d) 4

46. An individual who acts as an insurance agent without holding a licence will be fined
upto ` …………………..

(a) 200
(b) 300
(c) 400
(d) 500

47. If the client wants to cancel the policy but the insurance company fails to do so, the
IRDA has stipulated……. Working days to respond such complaints

(a) 5
(b) 10
(c) 15
(d) 20

48. If there is no any settlement between two parties within an appropriate timeframe, then
the Ombudsman may make a ….to what is in his opinion, fair to both the parties.

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(a) Recommendation
(b) Award
(c) Complusion
(d) Withdrawal

49. To protect the policyholder against unethical agents, the IRDA allows policyholders a
free look in period of …… days after receiving the policy

(a) 30
(b) 20
(c) 15
(d) 8

50. ….. means ensuring that ethics are practiced at all levele of a business, coherently and
consistently in all situations

(a) Embedding
(b) Imbibing
(c) Empowerment
(d) None of the above

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