CSC VLE Insurance & RAP Exam Answer Key

                                                 CSC VLE Insurance & RAP Exam Question Answer Key - 100% Pass Guarantee

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:         



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



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?



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:          



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:  



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?       



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:



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:       



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?           



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?    



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

Q. Certificate from the village panchayat

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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