Q. What is the maximum cover that can be
provided in micro-insurance?
Ans. 50,000
Q. The Non-Government Organisations (NGOs)
help the insurance industry immensely in:
Ans. Promotional activities
Q. ........ means before loss what was his
financial status and for the same financial status to bring him is
called:
Ans. An indemnity
Q. Insurance Agents are
Ans. Intermediaries
Q. Mr.Varun who owns a multi-chain company
would like to take an insurance. What will be the best option for him from the
following?
Ans. He can take company insurance
Q. Insurance c option because:
Ans. Insurance products offer
flexibility to the policyholders
Q. Amit is looking for term insurance
plan for protection of his family he is advised to approach
for:
Ans. Life Insurance
Q. Which of the following is not a type of
insurance organization?
Ans. Ombudsman
Q. The constituents who participate in
deeper penetration of micro-insurance and awareness of insurance in rural areas
are:
Ans. Non- Governmental Organizations
Q. In life insurance business if a person
is working in calculating premium rates of insurance products then he is mostly
likely a member of:
Ans. Insurance institute of risk
management
Q. A Risk transfer provides a sense
of:
Ans. Financial security
Q. _________ is an insurer for the
insurance company:
Ans. Reinsurance company
Q. Mr. Mahesh is a software engineer. He
has taken a term insurance for Rs. 30,00,000/- for 30years. This is an example
for:
Ans. Risk transfer
Q. Currently, major percentage
of insurance sales in India takes place through:
Ans. Individual insurance agents
Q. I.R.D.A was incorporated as
a Statutory body in:
Ans. Dec-1999
Q. What facility do insurers use
to cover risks beyond their exposure
limits:
Ans. Both a & b
Q. One of the most sought
after advantage of Insurance is:
Ans. Tax benefits on payment of
premium and all the pay-outs
Q. Vinay doesn’t want to take
insurance on himself. He feels that his family will survive with the funds
available in the bank and monthly rentals received from village. This comes
under Risk ______:
Ans. Retaining
Q. Why is Insurance
required?
Ans. All of the above
Q. The main role of an underwriter in a
non-life insurance company is normally to: Ans. assess the
acceptability of particular risks
Q. The concept of insurance involves a
transfer of:
Ans. risk
Q. How are perils and hazards normally
distinguished under term insurance policies?
Ans. Perils are risks that
policyholders will die before a specified date and hazards are factors which
could influence that risk.
Q. In insurance terms, the risk of
suffering a disability is best described as what type of risk?
Ans. Financial.
Q. For a household insurance policy,
insurable interest need only exist at outset and at what other point?
Ans. The date a claim occurs.
Q. Rahul is employed by Sunny. In respect
of this employment, Rahul automatically has insurable interest in Sunny’s life
up to what limit, if any?
Ans. Rahul’s monthly salary.
Q. Akshat is a relatively cautious person.
In insurance terms, this will normally increase the likelihood that he will:
Ans. require insurance cover
Q. Arun started a 20-year term insurance
policy. Once established, when, if at all, is the insurer next entitled to ask
him for proof of continuing good health?
Ans. When a lapsed policy is revived.
Q. Once an absolute assignment is effected
under a life insurance policy, who will be the titleholder(s) of this policy?
Ans. The assignee in all cases.
Q. How long is the free look-in period
under a term insurance policy from the date of receipt of the policy document?
Ans. 15 days.
Q. A life insurer issued a quotation on 10
February, guaranteed for 14 days, which was accepted by the customeron day 10.
Consequently, the insurer can only decline this risk if the:
Ans. material facts change.
Q. A policy document for a money-back
policy includes the statement ‘the proposal and declaration signed by the proposer
form the basis of the contract’. In which main section of the policy document
will this normallyappear?
Ans. Preamble.
Q. The consequences of these risks which
will affect specific individuals or local communities in nature are called as?
Ans. particular risk
Q. Pooling of insurance applies to?
Ans. All Type insurance (Only life
insurance, only non-life insurance)
Q. Both the parties to a contract must
agree and understand the same thing and in the same sense which is called
Ans. Consensus ad idem.
Q. A contract exists between insurer and
proposes when
Ans. A proposal has been accepted by
insurer.
33. A life insurance policy
can only be made paid up if what policy feature exists?
Ans. Savings element.
Q. The main reason why a life insurance
proposal form often asks for the proposer’s height is to enable a reasonable
comparison with the proposer’s:
Ans. weight.
Q. The concept of indemnity is based
on the key principle that policyholders should be prevented from:
Ans. profiting from insurance.
Q. Where annually increasing flexible
premiums operate under a life insurance policy, what rate of increase will
generally apply?
Ans. 5.0%
Q. The amount paid out by the insurer
under a 30-year life insurance policy exceeded the sum insured plus revisionary
bonuses. The excess is likely to result from?
Ans. terminal bonus.
Q. What normally happens to the sum
insured under a life insurance policy once the period of the lien expires?
Ans. It increases.
Q. The main protection need of a
19-year-old is most likely to be:
Ans. self-protection.
Q. The need for investment advice
from an insurance agent normally results from what overriding key factor?
Ans. Lack of market knowledge.
Q. When undertaking financial
planning for individuals without capital, what savings need is likely to
beaddressed in every single case?
Ans. Emergency funds.
Q. Naveen is addressing his income
needs by investing directly in corporate bonds. In what form will he
receivethis income?
Ans. Interest payments.
Q. Raunak recently arranged a life
insurance policy under which he is classed as the master policyholder. This
addresses his role as:
Ans. an employer.
Q. Nikhil is looking for
tax-efficient savings methods for his disposable income. He is considering an
equity-linked savings scheme, national savings certificates and an endowment
insurance policy. Premiums for which of these investments are allowed to be
deducted from his taxable income?
Ans. The equity-linked savings
scheme, the national savings certificates and the endowment insurance policy.
Q. An investor holds a wide range of
shares. If the Reserve Bank of India announces a series of significantinterest
rate increases, the prices of these shares are most likely to
Ans. decrease.
Q. The changes in healthcare costs
over recent years has had what general impact on healthcare insurance?
Ans. A rise in the need for cover.
Q. What is the main objective of taking
the life insurance policy?
Ans. Protection
Q. Any assets, which are no longer
suitable or are earning fewer returns than expected, should be?
Ans.Cashed in for investment into other
assets.
Q. The business of insurance is connected
with?
Ans. Economic value of assets.
Q. Appointer’s Role
Ans. When nominee is minor
Q. Payment of premium and sum assured are
laid down in
Ans. Operative clause
Q. Which clause lays down the mutual
obligation the parties regarding, payment of premium by life assured &
payment sum assured by?
Ans. Operative clause
Q. The general need for a pension
policy results from the existence of what key problem?
Ans. Anticipated fall in income.
Q. The sole focus during a client’s
fact-find session was healthcare requirements and estate planning. Which main
life stage is he most likely to fall into?
Ans. Retirement.
Q. Apart from the salary level, what
other key feature of Alok’s job is likely to have a major impact on the level
ofhis pension, life insurance and health insurance needs?
Ans. Whether the job is in the public
or private sector.
Q. In the context of financial
planning, how is the difference between real needs and perceived needs
bestdescribed?
Ans. Real needs are actual needs and
perceived needs are based on a client’s thoughts and desires.
Q. To fulfil the ‘know your customer’
procedures, at what stage in the financial planning process is theinsurance
agent most likely to request a copy of the customer’s photograph?
Ans. At the end of the presentation
meeting.
Q. An agent has recommended an
investment product with non-guaranteed benefits. The benefit illustration passed
to his client will therefore use assumed annual growth rates of:
Ans. 6% and 10%
Q. The main purpose of including
commission details in the documentation to clients is to increase:
Ans. transparency.
Q. Yash pays health insurance
premiums for himself, his wife and his two children aged 13 and 8. Premiums for
which of these individuals will qualify as deductible from Yash’s taxable
income?
Ans. Yash, his wife and both his
children.
Q. A client has been recommended a
low-risk investment product by his insurance agent, but the client insiststhe
agent arranges for the money to be invested in a higher risk product. What
action should the agent take?
Ans. Carry out these instructions,
but document that this contradicts the recommendation.
Q. An insurance agent has advised a
client to surrender an existing investment product and start a newinvestment
product. What key indicator should be used to determine whether this advice was
ethical?
Ans. The best interests of the
client.
Q. What key impact will low
persistency levels have on insurance policyholders?
Ans. A reduction in benefits.
Q. A claim under a term insurance
policy is submitted by an individual who has substantially understated his
age.As an alternative to paying out the full claim the insurer is most likely
to take what action?
Ans. Reject the claim on the grounds
of misrepresentation.
Q. On the maturity of an endowment
policy, a reduced sum insured is paid out. What is the most likely reasonfor
this?
Ans. The policy was made paid up during
the policy term.
Q. What key event is most likely to
prevent insurers from ensuring that each insured person brings a fairpremium to
the pool for the risk presented?
Ans. A fraudulent claim.
Q. An insurance agent served an
insurer continually and exclusively for 20 years, after which he retired
fromwork. In accordance with Section 44 of the Insurance Act 1938, renewal
commission due to him after the termination of his agency can only be withheld
if:
Ans. there is fraud involved.
Q. Legislation gives which body the
power to specify a code of conduct for surveyors and loss assessors?
Ans. Insurance Regulatory and
Development Authority.
Q. What key legacy has been left by
the activities of the Tariff Advisory Committee?
Ans. Standard policy wordings.
Q. Raju died 5 years before the end
of his 30-year endowment insurance policy. What factor most likely causedthe
insurer to investigate the claim using the early death claim procedures?
Ans. The policy had lapsed and was
revived shortly before he died.
Q. Apart from conducting a
comprehensive fact-find, the other main action that an insurance agent can take
atoutset to minimise the risk of subsequently receiving a customer complaint is
to:
provide detailed disclosures.
Q. An award made by the Insurance
Ombudsman will only be binding on the insurer if the:
Ans. complainant accepts this
decision.
Q. A policyholder asked his insurance
agent for guidance on submitting a claim for the maturity benefit under hislife
insurance policy. Due to pressure of work, the agent declined to assist.
Consequently, this action is deemed to be a breach of the:
Ans. Insurance Regulatory and
Development Authority’s Code of Conduct.
Q. During the process of applying for
life insurance, the customer discloses confidentially to the insurance
agentthat he had a mild stroke four months ago, however this was NOT mentioned
on the application form. In accordance with the Insurance Regulatory and
Development Authority’s Code of Conduct, how should the insurance agent deal
with this information?
Ans. Notify the insurer of this
matter.
Q. Which of the following cannot be
insured?
Ans. Speculative risk
Q. Mr. Kunal used to participate in
Car race. While taking up the Insurance policy he disclosed this information.
What kind of hazard does it refers
to:
Ans. Occupational Hazard
Q. On 6thAugust, there was
a typhoon. Mr.Augustin who had insurance died in typhoon. Now how willthe
insurance company categorise this
risk?
Ans. Under the category of Pure risk
Q. Law of large numbers is worked out
by which of the following?
Ans. Pooling of risk
Q. Pure risks are those risks where
there is:
Ans. Loss or no loss
Q. The type of risk that can be
insured against is:
Ans. Pure Risk
Q. Mr.Kunal used to participate in
Car race. While taking up the Insurance policy he disclosed this information.
What kind of hazard does it refers
to:
Ans. Physical hazardorOccupational
Hazard
Q. Which statement is
correct?
Ans. lung cancer is peril and smoking
is a hazard
Q. There are two different groups of
100 people. The first group isbetween 30-39 years of age. Of these one person
dies before the age26 Probability of death in this case is 1%. The second group
is aged 60-69 years of these 15 die before the age of the probability of death
in this case is 15%.
Ans. This shows that frequency of
death is high in higher age
Q. Insurance contract is valid
because?
Ans. Contract enforceable by law
Q. Which of the following types of
insurances is not a contract of
indemnity:
Ans. Life Insurance
Q. Ajay does not consume alcohol for
a month to not detect during medical test is:
Ans. Concealment of a material fact
Q. Amit is illiterate. He wants to
take policy his friend Surya help him in knowing the question and filling the
proposal form. What extra requirement is required in this case:
Ans. Left thumb Impression of Amit
along with a declaration of his friend
Q. Insurance companies apply law of
_________ to determine the cost of total annual claims:
Ans. Large numbers
Q. Mr. Josh was filling the proposal
form but as his mother was sitting beside him even though hedrinks and smokes
he ticked “NO” in smoking & drinking column of proposal form. This
indicates?
Ans. He has breached the duty of disclosure
by concealing the facts
Q. Which of the following is not a
type of bonus?
Ans. Inception bonus
Q. The most important features of a
Valid contract
are:
Ans. Consideration and legality of
object
Q. Rohit is working as sales manager with
an FMCG company. His job requires him to travel across states. He is planning
of covering his additional risk involved while traveling and a saving plan.
What suggestion would you give him as an agent?
Ans. To purchase an accidental rider with
a saving insurance plan.
Q. To sale focus during a client’s fact
find session was healthcare requirements and estate planning.
Ans. Retirement
Q. In
which at the recognized life stages an individual does not require any
protection cover
Ans.
Childhood
Q. Ajay
and Vijay both are unmarried. Ajay has dependant parent. Which need Ajay must
take care of on priority, although that will not be a priority for Vijay.
Ans.
Health insurance for parents
Q. Mr.
Nikhil makes an offer of Rs 20 lacs SA to Insurance Co. XYZ. Inresponse to this
Insurance co. XYZ offers a SA to the tune of max. Rs10 lacs (counter offer). At
this stage Nikhil and Company X can enterinto a valid contract?
Ans. Nikhil
and Insurance Co. can enter into a valid contract if Nikhil unconditionally
accepts the offer.
Q. Policy
taken by husband and wife jointly is called as…..:
Ans. Joint
life policy
Q. Mr.Akash
filled the proposal form but before submitting to the company he discussed with
theagent that he is not sure whether he can pay for 15 years. This attitude
affects which part of thecontract?
Ans. Capacity
to contract
Q. Human
life is exposed to different type of risks. Which of these risks is not
currently covered by Indian insurers?
Ans. Unemployment
not caused by disability
Q. Rishabh
Agarwal is a 40 years businessman. He leads a healthylifestyle. Every morning
he practices yoga and abstains from smoking tobacco and alcohol. There is a
family history of diabetes and both hisparents suffer from it. But Rishabh
himself is not diagnosed withdiabetes. Based on this case which of the
following statement is
true?
Ans. He
can be given insurance as he maintains a healthy lifestyle
Q. Which
of the following cannot be insured?
Ans. Speculative
risk
Q. If
a person consumes alcohol regularly and does not disclose the same in proposal
form - what is the type of hazard?
Ans. Moral
Q. In
insurance terms the risk of suffering a disability is best described as what
type of risk?
Ans. Financial.
Q. Akshat
is a relatively cautious person. In insurance terms this will normally increase
the likelihood that he will:
Ans. require
insurance cover
Q. Level
of risk is determined by:
The
probability of the occurrence of a certain event and the extent of losses likely
to Ans. be suffered due to the occurrence of the event.
Q. Which
of the following risks are insurable?
Ans. Financial
Risk
Q. Insurance
Companies provide cover only
for:
Specified
Risks
Q. Insurance
relates to:
Ans. Pooling
of risk
Q. Loss
of Life needs:
Ans. To
provide a steady source of income to dependants after death
Q. A
hazard can be defined as:
Ans. A
condition that either increases the chance of a peril happening or cause its
effect to be worse
Q. Which
of the following is individual’s
assets?
Ans. His
properties
Q. The
type of risk that can be insured against
is:
Ans. Pure
Risk
Q. Which
category of insurance has nature of low frequency but high
severity?
Ans. Airline
Insurance
Q. Law
of large numbers is worked out by which of the following?
Ans. Pooling
of risk
Q. Policy
document is:
Ans. Legal
contract
Q. In
life insurance which principle does not apply?
Ans. Insurable
interest
Q. Kailash
is working with an MNC and has a co-worker Ramesh who helps him in his work. In
the absence of Ramesh Kailash’s work would suffer significantly and he has to
work on his own to complete his assignments. Which of the statement is true
with regard to
Ans. Insurable
Interest exists between Kailash and Ramesh
Q. What
amount of insurable interest does an individual have in his own
life?
Ans. Up
to the sum assured taken in the plan
Q. The
insurance company issues ________________ after accepting proposal
Ans. First
Premium Receipt
Q. The
__________ of the policy states that the proposal declaration signed by the
proposer forms the basis of contract:
Ans. Preamble
Q. Certificate
from the village
panchayat:
Ans. Will
be considered as non-standard age proof
Q. What
are the 2 types of Age proof
documents?
Ans. Standard
& Non-Standard
Q. Who
fills up proposal
form?
Ans. Proposer
Q. When
the life assured and the policyholder are one and the same how the policy will
be known?
Ans. Policy
on own life
Q.____________
refers to the transfer of the title rights interest of the insurance
policy
Ans. Assignment
Q. Appointee's
role
Ans. when
Nominee is Minor
Q. Even
though the insurer may avoid the contract entirely “ab initio” for the reason
of misrepresentation or non-disclosure the Insurance Act 1938 gives a
protection to the policy holder making the policy in disputable after 2 years
(excepting for fraud)
Ans. Sec.
45 of the Insurance Act 1938
Q. Shamsher
has a health insurance policy of 1,00,000 individually and from his company for
2,00,000. He falls sick and got hospitalized. His hospital bill ran to 50,000.
He claimed this amountfrom his individual policy. Also, he placed the request
with his company. His company has rejected the claim. What type of contract is
this?
Ans. Deemed
contract
Q. Nomination
can be in favor of how many people?
Ans. It
can be any number
Q. Insurable
Interest is deemed to exist in which of the following relationship?(i) Husband
and wife (ii) Parent and children (iii) Employer and employees(iv) Brother and
Sister.
Ans. (i),
(ii) and (iii)
Q. If
a policy holder is not satisfied with terms and conditions of the policy which
she/he has received, then there is an option to return policy for cancellation
within...days from the date of receipt for policy by policyholder.
Ans. 15Days
Q. Types
of assignment:
Ans. Absolute
& Conditional
Q. Material
facts are those:
Ans. That
would influence the decision of the underwriter in accepting the risk
Q. The
main supplier of the material facts is:
Ans. The
proposer as he is alone in the possession of full information about himself
Q. Duty
of disclosure of material information rests
with:
Ans. Insured
and Insurer both
Q. In
case of life insurance, the insurable interest should
exist:
Ans. At
the time of taking the policy
Q. A
& B in enters into a Contract & B accepts the Contract with a
condition. Will this be considered as a Contract Between A& B?
Ans. Contract
is created only when the acceptance is unconditional.
Q. Proposal
form & the Declaration signed by the proposer are called of the
contract: Ans. Basis
Q. In
which kind of policy the insurable interest should exist at the time of claim:
Ans. Marine
insurance
Q. When
does insurable interest exist in a life insurance contract?
Ans. inception
of the contract
Q. ______________
comes into existence when one party makes an offer which the other party
accepts unconditionally:
Ans. A
Contract
Q.. If
a contract is signed by a 15 years old boy this contract will be:
Ans. Invalid
Q. Mr.
ABC buying Term insurance policy insurer should mention Ombudsman address in
which part of policy document?
Ans. Information
statement
Q. If
a contract is signed by a 15 years old boy this contract will be:
Ans. Invalid
Q. The
condition that the policy holder should pay the premiums regularly is mentioned
in:
Ans. All
of the above
Q. For
Quarterly mode of payment days of grace is:
Ans. 30
days
Q. Both
the parties to a contract must agree and understand the same thing and in the
same sense which is called:
Ans. Consensusadidem
Q. Who
should attest the thumb impression on the proposal form?
Ans. Proposer
himself
Q. The
process of making changes in the terms and conditions of the policy once it is
issued is
called:
Ans. Amendments
Q. Utmost good faith envisages a
positive duty to disclose accurately all information that
are:
Ans. Facts which are material to the
risk being proposed
Q. The process of making changes in
the terms and conditions of the policy once it is issued is
called:
Ans. Endorsements
Q. When an interim bonus is paid
under with profit policy This normally represents a bonus covering what
period:
Ans. Previous valuation date to claim
date
Q. The insurance contract is mainly
an
Ans. Agreement enforceable by law
Q. Which of the following falls under
voidable contract?
Ans. Fraud
Q. A policy has two nominations. What
amount should be given to the two nominees?
Ans. There is no specified limit like
that
Q. Till what period is interim bonus
valid:
Ans. Till the next declaration of
bonus
Q. Insurable interest on one's own
life limited upto:
20 times of Gross Annual income
Ans. Unlimited
Q. Except Surrender how one policy
holder can transfer money to a third party barring
Nominee?
Ans. By doing Assignment
Q. Two people with same term one
person had more premium than other because:
Ans. Health detioration
Q. Moral Hazard reflects
the:
Ans. Habits and hobbies of proposer
Q. Annual premium of an insurance
product is Rs. 32,000 with 4% loading on Quarterly mode of payment. What is the
quarterly premium?
Ans. 8,320
Q. Income replacement methods equates
Human Life Value (HLV) to:
Present value of future earnings
Q. If the annual premium for a plan
is 32000 and a frequency loading of 4% is added in a quarterly premium what is
the instalment premium that needs to be paid.
Ans. 8,320
Q. A human being
is:
Ans. All of the above
Q. What is the special report that is
asked by the underwriter from the officer of the
insurer?
Ans. Client confidential report
Q. What role an agent is likely to
play in the process of
underwriting?
Ans. To give truthful report to the
insurer all about the life to be insured
Q. Who is the primary
Underwriter?
Ans. Agent
Q. Mr Sunil is doing premium
calculation for his company as per which authority is his profession related
to:
Ans. Council of Actuaries
Q. In a 20 year with profit policy
persistency Bonus is paid at the end of:
Ans. 20th year
Q. Two friends have taken same policy
but their premiums are different. Why?
Ans. All the above
Q. Compound reversionary bonus of 4%
will be calculated on:
Ans. Sum assured plus bonus till date
Q. As per the norms of risk
assessment U/W both the parents of a policy holder died in their early 30s due
to Heart disease. What is the risk assessed?
Ans. Physical Hazard
Q. While calculating Human life value
(HLV) two components need to be kept in mind the one is take home salary and
other is:
Ans. Estimated life expectancy
Q. Claim was settled. However full
Sum assured not paid though the policy was in force due
to:
Lein
Ans.
Q. HLV is used as a Yardstick to
determine:
The correct cover needed to compensate
economical loss to their family in case of Ans. death of the earning
member
Q. In insurance HLV is a known
abbreviated term. How the meaning of HLV can best be described in relation to
an income earning
proposer?
Present value of the future earnings less
personal expenses is the HLV of the proposer
Q. Mr A wants insurance cover. But he
is drinks alcohol frequently. What kind of hazard you may
categorize?
Ans. moral hazard
Q. Insurer appoints a candidate of
this professional qualification who decides the amount of premium in insurance
products:
Ans. Actuary
Q. While calculating HLV along with
future income no of years of work increments in salary what is also to be taken
in to account?
Ans. Discount rate
Q. Mr. A has a son who is 5 yrs and
he wants to save funds for his education. Both the parents are risk adverse.
Which plan is suitable for
them?
Ans. Endowment Plan
Q. Most plans offered by Indian
insurance companies are a combination
of:
Ans. Term insurance and whole life
Q. Why Annuities are reverse of Life
Insurance?
Ans. Annuities cover contingency of
Survival whereas Life insurance covers the contingency of death
Q. Main Protection need of a
client...:
Ans. Protection of Income
Q. Basic elements of an insurance
plan are:
Ans. Maturity benefit and Death cover
Q. When maturity benefit is payable under
a joint life Plan?
Ans. On survival of both or either of
the life insured.
Q. Which plan covers the risk of
living too long?
Ans. Retirement plan
Q. Income Tax Act 1961 provides for
tax relief for various investments under Section?
Ans. 80C
Q. Group insurance is a contract
between…:
Ans. Employer & Insurance Company
Q. Who deducts premium in Salary
Savings
Scheme?
Ans. Employer
Q. The date on which the Title/rights
under a policy passes on to the child on age 18 is called….:
Ans. Vesting date
Q. Which plan is suitable for those
who cannot afford higher premium now but can afford to pay higher premium
later?
Ans. Convertible Term insurance
Q. Which is the most basic simplest
& cheapest form of insurance?
Ans. Term insurance
Q. Why insurance needs require to be
prioritized?
Ans. Resources are limited.
Q. Mr A submitted the proposal form.
When will the risk begins for the company?
Ans. On receipt of payment by agent
Q. Two People of the same policy Term
one person pays more premium because:
Ans. Higher Age
Q. What is maximum level of Insurance
premium for which Income Tax benefit is
available:
Ans. 1,00,000
Q. Client has taken Joint Life
Policy. Who are responsible in the
contract?
Ans. Proposer & Wife
Q. Term insurance if best suited for
the following need
Ans. education needs
Q. A Couple has 7 year kid &
wants to Buy some Policy. Which is the best suitable policy for his
Son?
Ans. Child insurance plans can be
taken out in the form of endowment plans money-back plans or ULIPs
Q. Children policies come in 3 forms.
What are they?
Ans. Endowment Money back & ULIP
Q. At the time of maturity quarter of
the SA is paid though the policy was in force:
Ans. Money back
Q. Mr. X wants a life cover for the
term of 20 Yrs. Also, he wants a modest amount if he survives through the term.
Which plan should he buy?
Ans. Endowment plan
Q. Hari wants a constant life cover
till his 31st birthday. But he can’t afford to pay high premiums. The best
suited products for him would be:
Ans. Term plan
Q. The option to receive maturity
benefit in instalments under a ULIP is called..:
Ans. Settlement Option
Q. The period which does not provide
risk cover in a Child plan is
called…:
Ans. Commencement period
Q. To avail income tax exemption for
premium paid sum insured under a policy should be...:
Ans. 10 times
Q. Which life insurance plan offers
both the benefits of Risk cover and Investment?
Endowment policy
Ans. ULIP
Q. In endowment policy, we give SA +
Bonus- :
Ans. Outstanding premium
Q. What is
Inflation?
Ans. Increase in cost of living
Q. Samir is married and he has only
one partner with dependant parents and no child. Which should be his
priority?
Ans. income protection
Q. With-profit policies can be given
to:
Ans. Individual
Q. Out of all the factors that affect
the needs of different life stages of an individual which is the most common
factor that is likely to exist throughout the life span of an
individual?
Ans. Liability
Q. There is a family of four people
both the husband and the wife are working. They have two kinds aged 6 and 11
years. There is a tragedy in the family and the husband passes away due to an
accident. Which of the following saving options should the wife go for post the
death of her husband?
Ans. Children education planning
Q. A family consisting of husband
wife and two children aged 6 and 10 what kind of insurance plan can be
suggested?
Ans. All of the above
Q. The main protection need of a
19-year-old is most likely to be:
Ans. self-protection.
Q. A
Couple has 7 years old son what solution they would be looking for:
Ans. child
education
Q. Naresh
is married and his daughter Sneha is 3 years old. Which plan can he take?
Ans. Term
& Children plan
Q. What
is the reason for which a self-employed should take an insurance
plan?
Ans. Control
unstable income
Q. What
to be considered while taking first policy?
Ans. All
of the above
Q. Which
one is not an asset?
Ans. House
loan
Q. Mr.
X fact find shows he need a term insurance for his future income protection, a
family health plan to cover medical needs, a children’s plan to cover his son’s
education and a endowment policy for his daughter’s marriage. Which of these is
the first priority?
Ans. Term
Insurance
Q. The
sole focus during a client’s fact-find session was healthcare requirements and
estate planning which main life stage is he most likely to fall
into?
Ans. retirement
Q. Rajiv
is married & has 4-year old son. Which insurance plan is suitable for him?
Ans. Child
plan
Q. Akash
is an unmarried person and employed with company ABC and drawing a handsome salary.
He has no liabilities. What kind of plan can be suggested to him?
Ans. ULIP
Q. Danny
is married and has two children aged 6 and 10. His parents are aged 68 and 70.
who all can be included in Family floater option of a health
plan
Ans. Danny
his wife and his children
Q. Rupkumar
wants to take commutation option. What is the maximum amount he can
withdraw?
Ans. One
third
Q. If
there is no claim in a year, then what will be the benefit to the customer as
No Claim Bonus:
Ans. Discount
in next year premium
Q. While
calculating the pension figures required at the time of retirement, two factors
should be considered while planning. One is taxation and other
is:
Ans. inflation
Q. How
riders will help the customer in life insurance?
Ans. Allows
policyholders to customize their insurance cover with additional benefits
Q. Yash
wants to take open market option in pension plan. What is the benefit?
Ans. To
switch the underlying fund
Q. Critical
illness rider was taken and the rider benefit has been claimed. The rider
benefit now gets:
Ans. Terminated
Q. Health
insurance is needed
because:
Ans. cost
of healthcare has increased significantly
Q. The
premium on all riders put together should not
exceed:
Ans. 30%
of the premium on the base policy
Q. In
a health insurance plan, what feature is likely to cause the insurer to
decrease the renewal premium:
Ans. No
claim bonus
Q. The
premium for accidental death benefit rider must not exceed:
Ans. 30%
of base policy premium
Q. Rajan
and Rani has taken a family floater health insurance plan of 4 lacs. They met
with an accident and had a hospital bell of 6 lacs. Which is true for this
situation?
Ans. the
maximum cover will be of 4 lacs
Q. Ramesh
wants to buy 15 years pension plan for retirement. While calculating, gaps
required at the end the gratuity amount was completely ignored because he is:
Ans. self
employed
Q. Customer
has opted for a 5 years guaranteed annuity option what will happen to annuity
if the customer survives for 5 years after the end of guaranteed
period:
Ans. Till
he dies
Q. What
frequencies can one take annuity?
Ans. Monthly,
quarterly, Half-yearly, Yearly
Q. All
ULIP pension plans have to give how much percentage as Guaranteed returns:
Ans. 0.045
Q. In
what proportion is the cover in a family floater plan
shared:
Ans. no
proportion
In term
insurance, if critical illness rider claim happens then what will happen to
existing policy:
Ans. CI
benefit will cease
Q. A
person retiring within 3 months need return as pension. What kind of investment
plan he need to choose?
Ans. Immediate
annuity
Q. Vishal
and Sandeep applied for a health plan in XYZ Life Insurance company. Vishal is
asked to undergo medical check-up. But Sandeep is not asked to do so. What will
be most possible reason?
Ans. Sandeep
has taken another policy from XYZ life insurance company
Q. Family
floater health insurance plan
covers:
Ans. all
members of a family
Q. An
individual need a lump sum at the age of retirement. The amount he need to
invest
annuity for the goal will depend
on:
Ans. all
the above
Q. Waiting
period in a health insurance policy is to address:
Ans. Pre-existing
illness
Q. Commutation
is a feature of which type of policy:
Ans. Annuity
Q. A
person has taken a term insurance of 4 lacs. What is the maximum critical
illness rider he can
take?
Ans. 4
lac
Q. The
rider which is given by the insurance company and which pays for the treatment
cost in the event of hospitalization of the insured person is
called?
Ans. hospitalization
care rider
Q. What
are the benefits to the policyholder under surgical care
rider?
Ans. Treatment
cost of surgery subject to terms and conditions
Q. A
person Wants to invest in a FD for Tax benefit. How many years he has to take
the term of the
FD?
Ans. 5
year
Q. What
is the limit of tax benefit that can be availed of under Section
80C?
Ans. 1,00,000/-
Q. What
is the advantage of converting physical gold assets to gold
ETFs?
Ans. Liquidity
Q. From
which investment, a person will have Capital Growth and
Dividend?
Ans. Equity
Q. What
is purpose of investing money in debt mutual fund?
Ans. fixed
Income
Q. Under
which section of the Income Tax Act can an individual get a deduction from
taxable income for Health Insurance?
Ans. 80D
Q. Ajit
and Vijit are 2 friends paying same premium for health insurance. Why Ajit has
higher tax exemption eligibility than Vijit?
Ans. Ajit
is above 65 years of age whereas Vijit is below 65
Q. Which
is NOT the duty of Life Insurance Council?
Ans. Fixing
price of insurance products
Q. __________
has laid down the Code of Conduct for all agents:
Ans. Insurance
Regulatory & Development Authority
Q. In
underwriting the economic value of the person is determined by what
Ans.
Human life value
Q. Mr.
Kumar decides that is employees should have SSS scheme what type of plan is SSS
Ans.
Not a specific plan
Q. In
cumulative bank deposit the interest that in normally compounded on what basis.
Ans.
Quarterly
Q.
Anand received post taxation 5% return on his fixed deposit in bank if his net
return is 3%, what can be the reason
Ans.
Inflation
Q.
Which is the primary saving need among all saving needs?
Ans.
Contingency/Emergency fund.
Q. An Investor has invested in Debt
mutual fund he is ideally looking for:
Ans. Savings Income
Q. Regular savings creates a fund to
meet adverse incidents in future. For drawing a financial plan for savings
needs of an individual without capital what is the Fund which comes
first?
Ans. Retirement fund
Q. Why IRDA allows free look in
period cancellation?
Ans. To save clients from unethical
agents
Q. Embedding Ethics means
that:
Ans. Ensuring practice of ethics at
all levels consistently and coherently
Q. Raju is a certified license holder
under what circumstances he needs to hold his certified license with him that
is issued by
IRDA:
Ans. under all circumstances
Q. Who monitors and evaluates the
ethical practices of insurers?
Ans. Both the above
Q. A policy has been rejected by the
company under direct intimation to the customer and copy to the Agent. What is
the next action of the Agent?
Ans. He has to explain the reasons
for rejection to the customer
Q. More surrenders, lapses and
cancellations during free look in period raises doubts that the Company is
doing _______sales:
Ans. Unethical
Q. To redress the Grievances of the
Policy Holders, a number of authorities have been formed. Which of the
following authorities has been empowered to hear the complaints and
adjudicate?
Ans. Consumer Grievance Redressal
Forum
Q. Agent offering rebate may be fined
with:
Ans. Rs. 500
Q. AML program of every insurer to
include ___________ apart from procedure, training and
audit:
Ans. Appointment of Principal
Compliance Officer
Q. To ensure that the premiums are
paid out of a legitimate source of funds, cash is accepted:
Ans. Upto 1,00,000
Q. Ethical practices lead
to…...:
Ans. Positive image for the company
Q. An Insurer advertises through
daily newspaper. What type of marketing is this?
Ans. Direct Selling
Q. Investments by NRI (Non-Resident
Indian) will be:
Ans. High Risk
Q. An advisor while explaining the
policy and to sell he accepts to give a part of his Agent's Commission. What is
the limit?
Ans. He cannot offer any commission
Q. The authority of COPA is limited
to what amount at the District Level?
Ans. 20,00,000 /-
Q. It is the bounden duty of the
Insurers to protect the interest of their policyholders from proposal
acceptance to claim payment because of the:
Ans. Regulations of IRDA
Q. Who can cancel the licence of an Agent
if Agent violates code of conduct?
Ans. Life Insurance Council
Q. In MWP Act policy claim is paid
to:
Ans. Trustee
Q. Consumer Forum at District level
will hear complaints
upto:
Ans. 20 lakhs
Q. For renewal of licence an Agent has to
complete practical training for �. Hours
Ans. 25 hours
Q. How much is the rebate allowed by
IRDA to
client?
Ans. Nil
Q. If a policy is endorsed under MWP
Act the beneficiaries are wife and
Ans. Children
Q. Ravi was expecting a claim amount
of Rs. 12,00,000 from insurer. But it was rejected. He feels that the claim has
been repudiated on wrong reasons. Which consumer forum can he approach?
Ans. District Level
Q. An Agent offered his client that
75% of the first premium will be paid by him out of commission. This offer of
rebate on premium will be treated as: :
Ans. a breach of IRDA's code of
conduct
Q. Mr.Suresh dies one day before the
grace period without paying the premium. What is the claim
payable?
Ans. Sum Assured less the undue premium
Q. What is the maturity claim payable
under a ROP?
Ans. Return of Premium
Q. What is the main requirement for
settlement of a death claim?
Ans. Proof of death
Q. What is a Claim?
Ans. A demand of the Insured to the
Insurer
Q. What is recovery made from final
claim
settlement?
Ans. All the above
Q. An Insurer advertises through
daily newspaper. What type of marketing is this?
Ans. Direct Selling
Q. Payment of premiums by cash cannot
exceed ____________:
Ans. Rs. 1,00,000
Q. The controller of insurance in
India is:
Ans. IRDA
Q. Which is a
claim?
Ans. All the above
Q. If there is no insurable interest,
then the contract
is:
Ans. Invalid contract
Q. Client died in 89th day from DOC.
In which category he is not eligible for claim?
Ans. Suicide
Q. When an insurance claim is
valid?
Ans. All the above
Q. Mr. Customer has taken a policy
and died before receiving the document which was dispatched by the insurer? He
is:
Ans. Entitled for full claim
Q. When annuity payments start under
a deferred annuity plan?
Ans. Vesting date
Q. What is the death claim payable in
case of ULIP?
Ans. Sum insured or Fund Value
whichever is higher
Q. In a claim the customer got much
more than theSumAssured. Why?
Ans. Nature of payment
Q. If a person is absconding, then
after how many years will he be considered as dead & SA paid to the
nominee:
Ans. 7 years
Q. A contract entered into a drunken
person is ….:
Ans. Invalid contract
Q. A contract which has no effect on
either of the contracting parties is:
Ans. Void contract
Q. What is the maximum time in which
the insurer should settle a claim when all documents are submitted?
Ans. 30 days
Q. When insurance contract is
voidable?
Ans. Both the above
Q. Without submitting any form of
claim a life insurance policy holder received payments of maturity then what
type of policy he is holding?
Ans. Money Back
Q. If notification of death is
received 3 years after death then the claim can be declared:
Ans. Death claim
Q. What is the death benefit if the
person has multiple sums assured under different policies?
Ans. Sum of all SA in different
policies
Q. In case of confirmed accidental
death, the benefit is paid in the form of:
Ans. Lump sum assured plus accidental
sum assured
Q. If the policyholder dies before
receipt of Survival Benefit claim then to whom the Survival Benefit claim
monies are payable?
Ans. Nominee
Q. The delay in settling claim by any
insurance co as per IRDA norms has to pay....% if the present bank interest
rate is 5.2%:
Ans. 0.07%
Q. The policy under death claim is
paid regardless of when death occurs is:
Ans. Endowment plan
Q. The latin term 'void ab initio'
means:
Ans. null& void from the
beginning
Q. No of days in which the death
claim has to be paid after the necessary documents have been
received:
Ans. 30 days
Q. How much proportion of accumulated
fund can be commuted in case of annuity policies?
Ans. Upto 1/3rd
Q. If a person is missing, then after
how many years will he be considered as dead & SA paid to the
nominee?
Ans. 7
Q. In case of Conditional Assignment,
the claim monies can be paid to:
Ans. Assignee
Q. In case of a Paid up policy, what
is the claim payable?
Ans. Fund value
Q. Third party insurance is
compulsory under:
Ans. Motor vehicle Act 1988
Q. The Ombudsman can:
Ans. All the above
Q. In case of no fault liability the
minimum compensation that will be paid to the person injured due to motor
vehicle without proving the fault of the driver is
Ans. Rs. 50,000/- for death and Rs
25,000/-for grievous hurt.
Q. A customer can approach an
Ombudsman if:
Ans. The value of the claim is not
above Rs 20 lakh
Q. The Consumer Protection Act was
passed in:
Ans. 1986
Q. Protection of Policyholder's
Interest guidelines is published by:
Ans. IRDA
Q. LokAdalats were set up in June,
1985 with a view to:
Ans. All the above
Q. HIT and run cases means:
Ans. Vehicle and driver disappear
after the accident and the liability is not known
Q. Consumer Court is
a:
Ans. Quasi-judicial machinery
Q. A defect or deficiency is
a:
Ans. All the above
Q. A Life Insurance Policy should contain:
Ans. All the above
Q. Free look option should be
exercised within:
Ans. 15 days of purchase of the
policy
Q. A survey or should submit his
report generally within:
Ans. Within 30 days of appointment
Q. A General Insurance policy should
contain:
Ans. All the above
Ans. Q. A Policy holder can register
the following in his Policy:
All the above
Q. In case of delay of Claim
settlement under Life Insurance Policy the company shall:
Ans. Pay interest on the claim amount
at a rate which is 2% above the bank rate
Q. In case of General Insurance
Policy Claims, the company will appoint:
Ans. Surveyor for assessing the loss
Q. When a customer cancels a policy
under Free Look condition, the insurer will refund:
Ans. The risk premium;
Q. Medical underwriting is necessary
to prevent people from purchasing health insurance coverage only when they
are:
Ans. All the above
Q. Policy Bond is a very important
document for the customer because:
Ans. It is a legal document containing
the terms and conditions of the contract.
Q. Free look of an Insurance Policy
means:
Ans. Policy holder can cancel the
policy after purchasing it.
Q. RAP should
NOT:
Ans. All the above
Q. RAP should conduct ethical
business with:
Ans. All the above
Q. An underwriter is a professional
who has the ability to:
Ans. Understand the risks to which
the underwritten object is exposed
Q. After sales service in insurance
includes the following:
Ans. All the above
Q. Cold canvassing in Insurance
refers to:
Ans. Meeting a person not known and
with whom he does not have any introduction or any meeting in past
Q. Agents act as an intermediary
between the:
Ans. Insurer and the Policyholder.
Q. An Insurance company should be
a:
Ans. All the above
Q. Corporate agent Is a corporate
body which acts as:
Ans. Agent for all Life and General
Insurers
Q. A VLE can sell policies
of:
Ans. All Life, Non-Life and health
Insurance companies
Q. A public-sector company specialized
for Risk Related to Crop insurance is:
Ans. Agriculture Insurance Company of
India Limited
Q. A public-sector
companythatspecializesin risks related to export credit
is:
Ans. Export Credit and Guarantee
Corporation of India
Q. Who manages the employees
provident fund?
Ans. EPFO
Q. Unethical selling
includes:
Ans. All the above
Q. RAP can do the
following:
Ans. All the above
Q. Fact finding sheet allows the
agent to:
Ans. Analyse customer needs
Q. The rates of assumed annual growth
to be shared in the benefit illustration has been decided by which of the
authority:
Ans. Life Insurance Council
Q. In order to fulfil the Know Your
Customer Procedures, at what stage in the financial planning process is the
insurance agent most likely to request a copy of the Customer's
photograph?
Ans. At the end of the presentation
meeting
Q. A fact find is not intended
to:
Ans. Reveal client's personal secrets
Q. The agent can use the benefit illustration
document to show the client the projected growth of investment at the rate
of:
Ans. 6% and 10%
Q. The client's job profile and
workplace play an important role in:
Ans. Fact find
Q. During fact finding what will be
the next step after identifying clients need:
Ans. prioritize client needs
Q. What should an agent do in order
to understand the mental state of client in respect to his investment in
savings products
Ans. Reviewing his existing
Investments
Q. Assessment of needs does not
include:
Ans. priorities of the agent
Q. Which plan should an agent
suggest?
Ans. A plan based on needs of the
client
Q. What is the period of award passed to
the customer decided by
ombudsman?
Ans. 3 months
Q. For Logging a policy which
document is more preferable - Baptism Certificate or
Ans. Baptism Certificate
Q. What is the min age to enter into
the contract of insurance?
Ans. 18
Q. Why does an insurer insist on age
proof document? To assess:
Ans. Risk assessment
Q. In a joint life plan for a husband
& wife, where should the agent' principal loyalty lay?
Ans. Insurance company, husband &
wife
Q. Term insurance if best suited for
the following need:
Ans. home loan
Q. What is to be considered while
taking first policy?
Ans. All the above
Q. In fact-finding, why client's
income analysis is necessary?
To do financial planning according to the
needs of the client
Q. What does the liabilities section
list contain?
Ans. List the amounts of all the client's
debts
Q. The advantage/disadvantages within
cumulative and fixed traditional deposits pertain to-
Ans. Returns
Q. Mr.Ramesh invested Rs:50000 in
pension policy, what is the percentage he can avail as:
Ans. will depend on his income slab
Q. A satisfied client will lead to:
Ans. All the above
Q. Insurance Contract without any
Insurable Interest will result?
Ans. Wagering Contract
Q. Benefit illustration is used
to:
Ans. Show the client the nature of
the product and its benefits
Q. Suresh wants to transfer his
physical gold to gold exchange traded fund in relation to access this change
will:
Ans. Insure against uncertainties
Q. Suresh wants to transfer his
physical gold to gold exchange traded fund in relation to access this change
will:
Ans. Increase his liquidity
Q. Suresh has adequate reserve
capital with him and he wishes to protect his income. Moreover, he feels that
if he does not die then he would need the amount. What type of plan should he
opt for?
Ans. Pension plan
Q. A person wants to invest in a FD
for Tax benefit. How many years he has to take the term of the
FD?
Ans. 5 Years
Q. KishanVikas’s payment gets cleared
at:
Ans. Post office
Q. Where would you have to go if you
wanted to buy a KisanVikasPatra?
Ans. Post Office
Q. Bank interest is
accumulated:
Ans. Monthly
Q. What is the frequency of the
crediting the interest which is given to the customer in a cumulative
deposit?
Ans. quarterly
Q. In the Life Insurance segment,
there is:
Ans. One Life Insurance Company in
the public sector
Q. Corporate agent Is a corporate
body which acts as:
Ans. Agent for all Life and General
Insurers
Q. Customer asks the agent to
disclose the commission. The agent should:
Ans. disclose on demand
Q. Which is the training institute
for providing training to insurance agents?
Ans. Insurance Institute of India
Q. In a cashless Medi-claim policy
the claim amount is paid by the Insurance company to the:
Ans. TPA
Q. TPA's are authorized by the
Insurer to:
Ans. all the above
Q. TPA should
provide:
Ans. All the above
Q. Third Party Administrators
operating in Health insurance sector are licensed by IRDA
under:
Ans. IRDA(Third Party-Health
Services) Regulations of 2001
Q. Third Party Administrators are
intermediaries providing:
Ans. Health insurance services on
behalf of Insurance Companies
Q. Network Hospital in Health
Insurance refers to:
Ans. Hospitals with which TPAs tie-up
for cash less treatment
Q. If an Insurance company appoints a
TPA under health Insurance:
Ans. The liability to settle the
claim remains with the insurers
Q. The Ombudsman's powers are
restricted to insurance contracts of what value?
Ans. 20 Lakhs
Q. License of an agent was withdrawn
in June 2010 due to malpractice. He can reapply for his license
in:
Ans. 2015
Q. What is the stipulated time frame
within which an insurer is supposed to respond after receiving any
communication from its policyholder?
Ans. 10 days
Q. For the customer whose claim has
been refused by the company the three places where he/she should follow up are
- Ombudsman IRDA Customer Grievance Cell and :
Ans. Consumer Forum
Q. Karthik written to his insurer
about non-settlement of a maturity claim. As per regulations the insurer should
reply to this within how many working days?
Ans. 10
Q. A policy holder submits
cancellation of his term insurance policy. The insurer accepts the form and
fails to give the benefits. Policy holder writes to IRDA post which the
settlement should be made
within?
Ans. 15 days
Q. Health ID cards are provided to
all their policy holders to validate their identity at the time of admission
by:
Ans. Hospital
Q. The major duty of the TPA
is
Ans. Claim Management
Q. Third Party Administrators
operating in Health insurance sector are licensed by:
Ans. IRDA
Q. As per IRDA regulations IGMS
should be mandatory set up by:
Ans. By all insurers
Q. Ombudsman has to give his decision
within how many days?
Ans. 3 Months
Q. An Award is passed by Ombudsman. In how
many days it should be honored by Insurance Co
Ans. 15 days
Q. The functions of the Insurance
Ombudsman include
Ans. Conciliation and making awards
Q. IGMS is a platform for registering
complaints & mandatorily to be used
by
Ans. all insurers
Q. What are the ways by which a policy
holder can make
complaints
Ans. E mail or Toll free Number
Q. Ombudsman has to pass an award within
how much time
Ans. 3 months
Q. If a person chooses cumulative
deposit than Recurring deposit difference will be in:
Ans. Frequency of interest
calculation
Q. If a person want to maintain
emergency funds the best place is a bank
or:
Ans. ULIP
Q. What period of time a client has
to be invested to get tax benefit under postal
scheme?
Ans. 5 years
Q. What is purpose of investing money
in debt mutual
fund?
Liquidity
Q. Anand received post taxation 5%
return on his fixed deposit in a bank. If his net return is 3% what can be the
reason?
Ans. Inflation
Q. If an Agent focusses on
Commission, then it is:
Ans. Unethical
Q. Which body has created a call
centre for logging a complaint?
Ans. IRDA
Q. A client has got some funds and
wants to provide for retirement and margin money. What should be his
priority?
Ans. Depends upon his actual age and
years left for retirement
Q. A customer while investing in to
Recurring deposit or Cumulative deposit. What are the key factors which will
matter?
Ans. interest rates
Q. An agent reveals his commission
received from insurance sales to X&Y. Both plans are of same duration. Why
is commission of X far higher that of
Y?
Ans. Y has brought a single premium
product
Q. A customer surrenders his policy
on Feb 2011. As per Agents code of conduct an agent can get a new policy from
this customer from Feb which year?
Ans. 2011
Q. Persistency has increased from 82%
in previous year to 86% this year. That means:
Ans. Less Lapsation
Q. After doing the need analysis of
the client the agent advised the client to opt for ROP product. But the client
refuse. According to ethical business practices, what will the agent
do?
Ans. Enquire about the refusal from
the client
Q. What key impact will the agent
have in low persistency?
Ans. Will have impact in his
commission
Q. Complaint council bodies other than
IRDA grievance readdress forum & COPA
Ans. Ombudsman
Q. As per the IRDA circular an
insurance agent:
Ans. needs to disclose the amount of
commission on demand
Q. Transactions of sale of life
insurance products to the insurable clients are viewed in the insurance market
mostly as:
Ans. Relationship transactions
Q. What is meant by Higher persistency
to the insurers?
Ans. Higher Profits
Q. If Sales Target get reduced, then
Churning will:
Ans. Decrease
Q. An advisor will do a churn
to:
Ans. To earn extra commission
Q. Churning is bad, based on which
aspect:
Ans. Policyholders suffer due to
surrender charges and benefits
Q. If the agent recommends the client
to terminate an endowment plan and take a whole life in order to earn higher
commission, it is termed as:
Ans. Churning
Q. According to IRDA agent’s code of
conduct, what is the best method of showing the amount of commission earned by
the advisor?
Ans. Signed copy of sales
illustration
Q. What are the key aspects that
advisors do for better
persistency?
Ans. Selling product as per need
& policy servicing
Q. If the client does not wish to
proceed with the recommendations right at the moment, the agent
should:
Ans. Should ask for a future date
from the client
Q. During the recommendation stage
the advisor needs to:
Ans. recommend the products that best
meet the client’s needs
Q. Insurer has rejected an insurance
proposal with intimation along with reasons to client and with copy to agent.
What should agent do?
Ans. Explain to client the reasons of
rejection
Q. The best way to prove that customer
of a ULIP policy is given awareness about the commission paid to the Agent
is:
Ans. From signed copy of benefit
illustration
Q. During product recommendation, the
agent should explain the product in relation to:
Ans. The needs that came to fore in
fact find process
Q. What is the reason that an advisor
is getting more than 35% Commission in the 1st Year?
Ans. Alternate channel
Q. An Agent can receive maximum of
________ %of the premium as commission in the first
year
Ans. Thirty Five Percent
Q. Lien can be considered an alternative
of which of the following
Ans. Clause.
Q. What is the special report that is
asked by the underwriter from the officer of the insurer?
Ans. Moral hazard report
Q. The responsibility for classification
and analysis of proposal form lies with whom
Ans. Underwriter
Q. Time deposit account is issued by
Ans. Post Office
Q. All ULIP pension plans have to give how
much percentage as guaranteed returns
Ans. 4.50%
Q. How the Daily Hospitalization cash
benefit will provide benefits to policyholder who is hospitalized
Ans. A fixed amount on a daily basis is
paid irrespective of the actual cost of treatment.
Q. What are the benefits to the
policyholder under surgical car rider?
Ans. Treatment cost of surgery subject to
term & Condition
Q. In a pension plan illustration what are
the parts which shows the benefit for an annuitant
Ans. Guaranteed and non guaranteed part
Q. Open market option under annuity policy
would extend which of the following benefit
Ans. Increase in the range
Q. Some health plans will give coverage
for family member also we will call these plans as
Ans. Family floater health insurance plans
Q. Manish and Manisha is a married couple
with one child. They want to plan for savings, child education/marriage and
their retirement and protection of income. Which should be their lowest
priority?
Ans. Marriage
Q. A provision for superannuation is a
normally taken a high need to
Ans. a Self employed person
Q. During the recommendation stage the
advisor needs to
Ans. Recommend the products that best meet
the client’s need
Q. Mr. Harsh an agent wants do a through
fact finding for his client to Mr.Kishan who is a business man. Which of the
following information will be helpful to know about the earnings and expense at
kishan?
Ans. Client’s profit and withdrawal’s from
business
Q. Higher persistency to the insurer
ensure what
Ans. Higher profits
Q. Persistency has increased from 82% in
previous year to 86% this year that means
Ans. Less Lapsation
Q. When should an agent disclose the
commission which he will earn from the product which he is going to sell?
Ans. When the customer asks him
Q. Which one of the following factors does
not help in the persistency
Ans. Dispatching discharge voucher to the
customer
Q. Under married women’s property act,
1874 a policyholder is
Ans. the trustee
Q. Married women’s property act 19874
provides that a life insurance policy that has been taken out by
Ans. Married man
Q. What is the role of National insurance
Academy?
Ans. To undertake training activities
Q. De-tarrification is a process by which
pricing of insurance
Ans. insurers can price their product on
their self past experiences
Q. As per IRDA regulations IGMS Should be
mandatory setup by
Ans. By all insurers
Q. Generally insurance companies do not
hold the premium in case of a fraud or misrepresentation. However, due to which
of the following circumstances by insurer can retain the premium the
policyholder
Ans. Indisputability clause
Q. A policy holder is not satisfied with
the services at the insurer and complains to ombudsman. In how many days from
receipt of the complaint the ombudsman should pass the recommendation
Ans. 1 month
Q. The premium on all riders put together
should not exceed.
Ans. 30% of the premium on the base policy.
Q. How riders will help the customer in
life insurance
Ans. Allow policyholder to customize their
insurance cover with accidental benefits
Q. In daily hospitalization cash benefit
scheme
Ans. The insurance company may pay an
additional amount on a daily basis if the insured is admitted to the intensive
care unit (ICU).
Q. What is the main objective of taking
the life insurance policy?
Ans. Protection
Q. Group insurance can be taken in
following relationship
Ans. Employee- Employer
Q. If a person consuming alcohol- what is
the type of Hazard
Ans. Moral
Q. Life Insurance is the most important
for which age group
Ans. Pre- retirement
Q. While on sales of an insurance plan
Mr…. Had to show his license
Ans. The customer demanded
Q. Which one of the following reports in
not considered in case of pankaj bought a plan in 2009 & died in road
accident in 2011.
Ans. advisor confidential report
Q. In the case of agent’s death, the
commission payable will be paid to
Ans. His legal heirs
Q. Which one of the section deals with the
licensing of an agent
Ans. Section 42 of the insurance act 1938
Q. How are perils and hazards normally
distinguished under therm insurance policies?
Ans. Perils are risk that policyholders
will die before a specified date and hazards are factors which could influence
that risk.
Q. Where one can approach in case of
dispute
Ans. Consumer forum
Q. The regulations issued by the IRDA,
require that the decision on the proposer must be conveyed to the proposer
within
Ans. 15 days of receiving the proposal
Q. According to IRDA guidelines, how long
does an insurance company have to complete its investigation of claim?
Ans. 180 days
Q. Who is the regulator supervisor and
monetary authority of the financial system in India?
Ans. RBI
Q. Indisputability clause can be enforced
by the insurance company during the
Ans. First two years of policy
Q. To ensure that the premiums are paid
out of a legitimate source at funds cash is accepted
Ans. Up to 50,000
Q. If there is no claim in a year then
what will be the benefit to the customer as no clam BOUNS
Ans. Discount in next year premium
Q. Maximum time for investigation in
disputed claim
Ans. 3 months
Q. A lump sum withdrawal allowed as
commutation in pension plan is.
Ans. 1/3 of the accumulation fund
Q. Customer has opted for a 5 year
guaranteed annuity option. What will happen to annuity, if the customer
survives for 5 years after the end of guarantee period?
Ans. Till he die
Q. In term insurance if critical illness
rider claim happens then what will happen to existing policy.
Ans. CI benefits will case
Q. The Ombudsman’s powers are restricted
to insurance contracts of value not exceeding
Ans. 20Lakhs
Q. In which section of policy document,
information about the location at insurance Ombudsman had written
Ans. Information statement
Q. Ombudsman passes an award within which
time
Ans. 3 months
Q. If the license of an agent has been
disqualified by a designated authority in 2010 then the person can apply for a
license in which year
Ans. 2015
Q. Under the hospital care rider what is
the payout mode.
Ans. Specified amount multiplied by the
number at days the policyholder is hospitalized.
Q. M.rSamad has taken a G-Sec and has
parted with it mid way as he required the money with the intention at not
getting the interest what will he get
Ans. Discounted value
Q. If bonus is given under a plan the
additional premium added is known as
Ans. Loading
Q. Nomination can be in favor of how may
people
Ans. It can be any number
Q. Mr.Balaji is suffering from Asthma and
the policy in been done on joint life basis and the need for nomination under
the plan is less as
Ans. Joint life policy
Q. What key impact will the agent have in
low persistency?
Ans. Will have impact in his commission
Q. Within how many days will the
underwriter needs to inform the policyholder regarding the status at the policy.
Ans. 15 days
Q. Ravi was expecting a claim amount of
Rs. 12, 00,000 from insurer but it was rejected. He feels that it is repudiated
on wrong reasons. Which consumer forum can be approach?
Ans. District level
Q. If any consumer is dissatisfied with
the customer care cell of any insurance company to whom they can escalate their
grievances
Ans. Nodal Officer
Q. With this type of deposit the bank pays
the principal and the total interest at the end of the term.
Ans. Cumulative deposits
Ans. Will be considered as non standard
age proof
Q. Varun wishes to pursue a career in
insurance and wishes to be in a department which calculates the level of
premium. In which department should he join.
Ans. Actuary
Q. Aswin is looking at different plans of
insurance for protection at the lowest premium. Which is the best plan for him?
Ans. Term plan
Q. The insurance act of 1938 created which
of these
Ans. Traiff Advisory Committee
Q. The premium for accidental death
benefit rider must not exceed
Ans. 30% of base policy premium
Q. If the annual premium for a plan is
32000 and a frequency loading at 4% is added in a quarterly premium what is the
amount that needs to be paid
Ans. 8320
Q. What amount of insurable interest does
an individual have in his own life
Ans. Unlimited
Q. Kalyan is an illiterate person and his
proposal form was filled by simaran, then what is the additional requirement to
be taken along with the documents
Ans. Thumb impression of kalian has to be
taken
Q. Harsh’s policy matured, however he was
paid only 25% of the sum insured in spite at all his premiums been paid on time
. This indicates that his policy is a
Ans. Money back plan
Q. The Authority at COPA is limited to
what amount at the district level
Ans. 20, 00,000
Q. If a person is concentrating more on
health plan and retirement plan then at which stage at life is he in
Ans. Pre Retirement
Q. The Institute of Insurance and Risk
Management along with insurance education does what more
Ans. Research
Q. A claim was paid in a policy and it was
advertised in the newspaper also. This indicates that the policy was
Ans. It was lost
Q. An indemnity bond was signed in a
policy when the claim was paid. This indicates that the policy was
Ans. It was lost
Q. Payment of premium and sum assured are
laid down in
Ans. Operative clause
Q. What is the role of National Insurance
Academy?
Ans. To undertake training activities
Q. Which is the primary saving need among
all saving needs?
Ans. Contingency/Emergency fund
Q. Sanjeev is an insurance expert who has
rich experience in determining premium levels for product, what is his profile
like
Ans. Any actuary
Q. The Non Government Organizations (NGO)
helps the insurance industry immensely in
Ans. Linking Buyers & Sellers
Q. Investment by foreign direct investors
in to insurance co’s is restricted to
Ans. 26%
Q. Which market does the Micro Insurance
Concentrate on?
Ans. People with low income
Q.
What is the similarity between Recurring Deposits & Cumulative deposits in
a bank?
Ans. Guarantees
Q. What facility do the insurers use to
cover Risk beyond their Limits?
Ans. Re Insurance
Q. Lung cancer and smoking.
Ans. Lung cancer is peril and smoking is
moral hazard
Q. The type of risk that can be insured
against is
Ans. Pure Risk
Q. Pooling of risk in insurance means
Ans. All similar risk are pooled together
Q. Pure risk is classified under
Ans. Insurable risk
Q. The consequences of these risks which
will affect specific individuals or local communities in nature is called as
Ans. Particular risk
Q. Harish takes a life insurance policy
for Rames. Which of the following statement best describes the principle of
insurable interest.
Ans. Harish suffers financial loss incese
of death of Ramensh
Q. What is the min age to enter into the
contract of insurance?
Ans. 18
Q. In a whole life plan- The
policyholder’s responsibility to give disclosure
Ans. At the beginning of the contract
Q. Principle of utmost good faith will
operate in existing policy
Ans. If the policy has lapsed and it has
to be revived
Q. Why does an insurer insist on age proof
document? To assess
Ans. Risk Assessment
Q. Mr. A Submitted the proposal form. When
will the risk begins for the company?.
Ans. FPR issued
Q. The obligation of the insurer for the
whole life policy is mentioned in
Ans. Operative Clause
Q. All Ulip Pension Plans have to give how
much percentage as guaranteed returns
Ans. 4.50%
Q. Yash wants to take open market option
in pension plan. What is the benefit?.
Ans. For improved annuity rate
Q. Asvath is illiterate. He wants to take
policy anssurya is a friend of his help him is answering questions and answers
and also fills proposal. In addition to this requirement is
Ans. Left thumb impression of asvath along
with a declaration of his friend
Q. While calculating Human Life Value
(HLV) two components need to be kept in mind, the one is take home salary and
other is
Ans. Bank fixed deposit rate
Q. Annual premium of insurance product is
Rs.32, 000, 4% loading on Quarterly mode of payment what is the quarterly
premium?
Ans. 8320
Q. Why ACR
Ans. To help the underwriter to assess the
Risk
Q. In a 20 year with profit policy,
persist ency Bonus is paid at the end of
Ans. 20th year
Q. Hari Wants a constant life cover till
his 31 st birthday. But he cant afford to pay high premiums. The best suited
products for him would be
Ans. Term Plan
Q. At the time of maturity, quarter of the
SA is paid though the policy was in force
Ans. Money back
Q. Weekly premiums are generally collected
for which type/range of plans
Ans. Micro Insurance
Q. What tax rate, if any, will be
applicable to a life insurance policy holder for the maturity proceeds of a Rs
5000 life insurance policy
Ans. Nil
Q. The best way to overcome the problem of
investment decision depends mainly on peer influence is
Ans. Seeking Professional Advice
Q. A person who has a temporary job Loss,
where should he look for investing other than FD
Ans. Debt Funds of MF
Q. RBI increased interest rates 2 times
then the stock prices
Ans. decrease
Q. A person wants to invest in a FD for
Tax benefit, how many years he has to take the term of the FD?
Ans. 5 year
Q. Both the parties to a contract must
agree and understand the same thing and in the same sense which is called
Ans. Consensus ad idem
Q. Types of assignment
Ans. Absolute & Conditional
Q. Aditya wants to take home loan and his
monthly take home is 80,000 what as a best practices should be the maximum EMI
Ans. 32,000
Q. Omkar Started a pension policy with
provider a but ended up in taking the annuity payment from provider B. The
result directly reflect the which feature available with this policy
Ans. Open Market Option
Q. During financial planning session if
the agent finds out the following needs which one should be given the top
priority. Needs: Income protection Childs education marriage and emergency funds
Ans. Income protection
Q. What frequencies can one take annuity?
Ans. Monthly, Quarterly, Half Yearly
Q. Commutation option allows the annuity
policy holder to with draw
Ans. 33%
Q. Why do self employed individual have
the need to buy Medical Insurance rather than People working in public Sectors.
Ans. Public sector employees enjoy Medical
Insurance Covers Related to job
Q. Mohit has two kids, one of 6 years and
other 8 years. He is the earning member and not having life cover. Before
advising him to take health policy, what he should be advised?
Ans. Life Insurance Policy for himself
Q. Manoj a 26 year old is having 7 years
old son, what will happen to his monthly disposable income after 15 years of job
Ans. significantly increase
Q. Samir is married and he has only one
partner, with dependant parents and no child, which should be his priority
Ans. Income protection
Q. The sole focus during a client’s
fact-find session was healthcare requirements and estate planning. Which main
life stage is he most likely to fall into?
Ans. Retirement
Q. Objective of fact finding
Ans. Client needs analysis Q. Fact finding
sheet allows the agent to Ans. Analyze customer needs
Q. Mr. A has approached by the Agent and
on fact finding the score is 3, this represents
Ans. Moderate Risk Taking
Q. To ensure that the premiums are paid
out of a legitimate source of funds cash is accepted
Ans. Up to Rs 50000
Q. With effect from 1st July 2010 all
insurers have to disclose in the benefit illustration document the.
Ans. Commission Pay to their agents.
Q. Which Act or Regulation provides that
the Renewal Commission is payable to the legal heirs of the insurance Agent?
Ans. Insurance Act 1938
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