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SR

QUESTION

Option --1

Option--2

Option--3

Banca assurance

Health plans

Micro Insurance

Bancassurance

Reinsurance

Life insurance Council

People with large families

people with low income

people employed with the government

4 Insurance company selling products through newspaper


Indirect Selling
advertisements is called
5 If a client wants to compare between all financial products
Individual agent
then the best person he can approach is
6 In life insurance business if a person is working in calculating institutes of actuaries of India
premium rates of insurance products, then he is mostly likely
a member of

Awareness

Direct Selling

Corporate agent

Bank

insurance institute of India

Charted institute of insurance

7 In term insurance if Critical illness rider claim happens then


what will happen to existing policy
8 If insured gets the two advance payment in the 5yrs & 10th
yr and in the maturity he gets rest of sum assured. What
type of policy it is

CI benefit will cease

CI benefit reduced from existing sum assured

CI benefit continues

Money back policy

Convertible plan

Term plan

Making false insurance claims.

Paying excessively for insurance


cover.
Age of the group

1 Weekly premiums are generally collected for which


type/range of plans
2 If insurer want to cover the risk which is beyond their limits
they will approach
3 Which market areas do Micro Insurance product concentrate

9 The concept of indemnity is based on the key principle that


Insuring existing losses.
policyholders should be prevented from
10 For assessing the risk of a group health insurance policy,
Group lifestyle
which of the following information is the most critical
11 If 5% bonus is given every year then for a SA of 1 lakh, what
will be the payout after 15 years in a simple revisionary
bonus system?

Employees
60000

75000

100000

12 Current regulation allows the bank to act as Insurance agent


for
13 Party A makes offer to B & B conditionally accepts the
offer than the action is considered as

Giving insurance policies to Banks.

Selling insurance policies through Banks.

Giving guarantee to policies by Banks.

Counter offer

Response offer

Partial acceptance

14 An insurance agent is intermediary between.

Client and Insurance Company

Insurance Company and IRDA

Client and IRDA

15 Which of the following do not include the channel of indirect


marketing?

individual agents

bancassurance

insurance brokers

16 Human beings need life insurance because..................

death is certain

death is uncertain

the timing of death is uncertain

17 Life insurance the risk is determined on the basis of ..........

future data

past data

statistical data

18 Life insurance company determine the level of risk based on


19 Insurance business is classified into three main types:
20 Amit is looking for term insurance plan for protection of his
family, he is advised to approach to:

Future expenses.
Life, Non life, Micro Insurance.
Property Insurance

Claim experiences.
Life, Non Life, Miscellaneous
Life Insurance

Present expenses.
Life, Non life, Re-insurance.
Health Insurance

21 Insured can contact to seek the resolution of grievances they Complaint@gov.ird1.in


have against insurer to IRDA through:

insurancecomplaints@irda.gov.in

irdacomplaints@gov.in

22
23
24
25

Increase the profitability


Non-Life Insurers only
Bancassurance.
At an early age

Ascertain the death ratio


non-life and life insurers
Individual agents.
Anytime in life

26
27
28
29
30
31

Law of Large number helps the insures to


Micro insurance is transacted by
E-sales refers to sales of insurance products through
The timing of death is uncertain, so when one should take life
insurance?
What is the maximum cover that can be provided in micro
insurance?
Non Government organization operate in insurance market to
When insurers sell through advertisements it is
What main expense is eliminated if insurer moves to selling
online
If insurer want to cover the risk which is beyond their limits
they will approach
Sahil was recently appointed as a director of a life insurance
company. In accordance of IRDA code of conduct, this will
prevent him from carrying out the role of

Calculate the premium


Life Insurers only
Insurance brokers.
At the time of uncertainty
5000

10000

50000

to make regulations
indirect selling
Commission

to help IRDA
direct selling
Income Tax

to connect the buyer and seller


through intermediaries
Marketing Cost

Bancaassurance

reinsurance

Life Insurance council

Chief Actuary

Insurance Agent

Nodal Officer

QB-ENG-Page 1 of 54

Option--4

ANS

Term Insurance

IRDA

people with high income

Wrong Selling

Broker

Insurance institute of risk management

1
No change in policy.

Endowment policy

1
Profiting from insurance.

Medical history of group

3
5000

2
None of the above.

Modified acceptance

1
Insurance and Re-insurance company.

through internet

4
Death is the solution.

mathematical data

2
2
3

Targeted bonus rates.


Life, Health, Micro Insurance
Liabilty Insurance

2
Complaints@irda.gov.in

Declare the bonus


Self help group
Internet.
At the time when Advisor takes the
decision
100000
to make premiums
through brokers
Reinsurance
IRDA

4
1
3
4
2
3
3
2
1
2

Underwriting manager

2
QB-ENG-Page 2 of 54

32 What main expense is eliminated if insurer moves to selling


online
33 Who is the customer of a Re insurer

Commission

Income Tax

Marketing Cost

High Net worth Individual

Insurance Companies

Licensed Insurance Agents

34 Law of large number helps Insurer to analyse which key area Administrative expenses

in fixing the correct premium

to remove adverse selection

35 categorising between Lung cancer and smoking


36 What is the death benefit if the person has multiple sums
assured under different policies?
37 Which of the following risks are insurable?

lung cancer is peril and smoking is a hazard


Sum Assured will be paid as total of all insurance
plans
Financial Risk

smoking is peril and lung cancer is hazard


Sum Assured will be paid for only one plan with
highest SA
Non-financial Risk

Both the statement is correct

38 Sahil & Vijay , both health status same, however Vijay was
triggered with medicals. What are the reasons?

Difference in age

Difference in family health status

Difference in hobbies

39 The type of risk that can be insured against is


40 In insurance terms, the risk of suffering a disability is best
described as what type of risk?
41 How are perils and hazards normally distinguished under
term insurance policies?

Speculative Risk
Financial.

Pure Risk
Fundamental.

Pure & Speculative risk


Homogenous.

Perils are medical factors which influence the risk of Perils are risks that policyholders will die before a
dying and hazards are lifestyle activities which
specified date and hazards are factors which could
influence the risk of dying.
influence that risk.

Perils are factors which affect the risk


being insured and hazards are the
size of the risk being insured.

42 The Institute of insurance and risk management along with


insurance education does what more
43 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
44 Law of large numbers is worked out by which of the
45 following?
With pooling of risks an insurance company pools the
premium collected from several individuals to insure them
against similar risks. At what circumstances will the insurance
companies pool the risk of a life insurance and health
insurance
together?
46 What
is the
main objective of taking the life insurance policy?

Regulation

Redressal

Research

Physical hazard

Fraudulent representation

Moral hazard

Pooling of risk

Maintaining insurable interest

With utmost good faith

Under no circumstances

Under conditions of the reinsurer

As directed by actuary

Tax benefit

Savings

Investment

47 Vijay received his policy bond on 11th June, 201 Due to some No, as 15 days period is over
personal problems he has decided to cancel the policy on 8th
July, 201 Can he cancel or return the policy?

Yes, as it is within 1 year

No, as 20 days period is over

48
49
50
51

No SA will be Paid.
Both are correct

The Risk contains.


Grouping the similar risks by Insurance Company is called
as.function of Insurance works on..
The
Mr. Mahesh is a software engineer. He has taken a term
insurance for Rs. 30,000,00/- for 30 years. This is an
example for----------------52 Which of the following can be an example of moral hazard?

certainty of event
Grouping of Risk
Risk Transfer
Risk retention

Uncertainty & level


Risk Grading
Risk avoid
Risk transfer

certainty and frequency


Risk Assessment
Risk retention.
Risk avoidance

a family history of heart disease

a person working in a chemical factory

a person consuming alcohol

53 On 6th August there was a typhoon. Mr.Augustin who had


insurance died in typhoon. Now how will the insurance
company will categories this particular risk ?

Under the category of Pure risk

Under the category of peril risk

Under the category of particular risk

54 Ram works in a Fire cracker factory. He stocks the cracker in Speculative.


his house. He runs which type of risk.
55 An Insurance company pools the premium collected from
Pure Risk
several Individual to insure them against similar risk is called:

Particular.

Financial.

Pooling of Risk

Insuraable Risk

56 Which of the following Risk is associated with those events


which are not in control of an individual and also no
possibility of making profit:
57 which of the following refers to specific event which might
cause a loss ...
58 The consequences of these risks which will affect specific
individuals or local
59 Pure risk is classified under
60 A person suffering from lung cancer is a smoker. Here
smoking can be termed as
61 Moral hazard reflects the ....

Pure Risk.

Particular Risk.

Financial Risk.

Peril

Hazard

Physical hazards

Pure risk

Financial risk

Particular risk

Economic risk
Peril

Speculative risk
Hazard

Financial risk
social need

intention and attitude of proposer

habit and hobbies of proposer

occupation and residence of proposer

62 Mr X has Pancreatic cancer due to drinking .What is Alcohol


for him

a hazard

a hazard & peril

a risk

QB-ENG-Page 3 of 54

Reinsurance
Non Government Organization
Non of the above
Both the statement is incorrect
None of the above
None of them

1
2
2
1
1
1

All of the above

Non Financial Risk


Speculative.
Perils are factors which could influence
an insured event occurring and hazards
are the actual events which will trigger a
payout
Repository

4
2
1

2
3

Peril

Randomness

3
4

As per company policy

1
Protection

Yes, as it is within 3 months

emotional loss
Pooling of Risk
All of the above.
Risk tolerance

1
2
4
1
2

A teacher working in a primary school.

Under the category of Risk Transfer

1
Fundamental.

Sharing of Risk

2
Insurable Risk

1
Uncertainty
Physical hazard
Insurable risk
Uncertainty
medical and personal history of
proposer
a peril

1
3
4
1
1
1
QB-ENG-Page 4 of 54

63 A client has taken an endowment policy with SA- 800000 and


vested bonuses- 60000. He paid 8 annual premiums in the 30
year plan. Calculate paid-up SA?
64 The cooling period allows the policyholder to withdraw the
policy witin 15 days of ?
65 Under what type of insurance policy dose insurable interest
need only exist only at the time of claim
66 A policy has two nominations. What amount should be given
to the two nominees
67 Mr. X is illiterate and is buying insurance. Mr. Y fill up the
proposal form on behalf of Mr. X and also endorses and signs
an attestation in the proposal form. In addition to all
document what else should be taken

89333

273333

289333

risk commence

proposal form filling stage

after policy received

Liability Insurance

Marine insurance

Motor insurance

10% to each nominee

25% to each nominee

Mr. X photograph

Mr. Y photograph

Nominee one should not be paid more


than nominee two
Mr. X thumb impression

It is a money back policy

It is paid up

Premium with Interest

Premium less charges

68 On Maturity of an insurance policy only 25% of the amount


It is assigned
can is paid. This is due to
69 A person paying 1 lakh yearly premium discontinue the policy Premium Return
after the first year premium and surrender the same on the
second year what will be the surrender value
70 Jay buys a policy on the life of Nazia. Who is Jay?
71 A Client can withdraw the policy on receiving under free look
period within ____ number of days
72 For Logging a policy , which of these is a standard age proof
Baptism Certificate or Ration Card ?

Life Assured

Nominee

Ration Card

Baptism Certificate

Ration card and baptism certificate


are Standard age proof

73 The risk commencement date of policy is


74 Principle of Indemnity applicable to
75 Party A makes offer to B & B conditionally accepts the
offer than the action is considered as
76 The condition that the policy holder should pay the premiums
regularly is mentioned in
77 Except Surrender, how one policy holder can transfer money
to a third party , barring Nominee?
78 Insurance Contract without any Insurable Interest will result
as
79 a Policy holder takes a insurance contract for 30 years and
the SA reduces after 25 years what could be the likely reason

After the U/W process


Life Insurance
Counter offer

Premium receipted
General Insurance
Response offer

Policy is dispatched
Both a & b
Partial acceptance

Policy document

Prospectus

Proposal form

By Will

By doing Assignment

Claim

Wagering Contract

Legal Contract

Void Contract

No bonus accumulated

Age proof was substantially wrong

Policy has become paid up

80 Amit is illiterate. He wants to take policy & his friend Surya


helps him in knowing the question and filling the proposal
form. Apart from Amit's left thumb impression , what should
Surya should do ?
81 A life insurance policy can only be made paid up if what
particular policy feature exists?
82 Harish takes a life insurance policy for Ramesh. Which of the
following statement best describes the principle of Insurable
Interest.
83 Limit of nominees can be attached to a term insurance policy

Surya's Photograph

Surya also has to put his left thumb impression along Surya has to give his age proof along
with amits thumb impression
with amit's age proof

Indexing contribution.

Nomination facility.

Rider benefits.

Ramesh declares all his liabilities

Ramesh is elder than Harish

Ramesh owes money form Harish

one

two

three

84 In a whole life plan - The policyholder's responsibility to give at the beginning of the contract
disclosure
85 Mr. ABC buying Term insurance policy, insurer should mention operative clause
Ombudsman address in which part of policy document?

through out the contract

Revival stage

Preamble

Information statement

86 One of the genuine Reason for surrender of the policy could


be
87 To be a valid contract ,the declaration is necessary in which
document
88 Types of assignment
89 The insurer requires the age proof for calculating the __

new product from competition

advisor entices the policyholder to surrender

Wants to buy a car

Policy Document

proposal form

FPR

Absolute
SA

Term assignment
Risk assessment

Conditional
Identity verification

30

Proposer
15

QB-ENG-Page 5 of 54

50

219333

3
on premium being paid

Travel insurance

There is no specified limit like that

Mr. Y thumb impression

3
Any one of the above

Nothing as surrender is not allowed


before 5 policy years

4
3

Appointee
20
Ration card and baptism certificate are
both Non standard age proof
policy is received
Neither a nor b
Modified acceptance
First premium Receipt
not possible to transfer
non voidable contract

2
2
2
2
1
1
2
1

Its a ULIP Plan

3
Only a deceleration has to be given by
Surya

4
Savings element.
Harish suffers financial loss incase of
death of Ramesh
not specific
Beginning and also at revival stage

4
3
4
1

schedule

3
Has Financial Problems
RPR
Absolute & Conditional
Financial assessment

4
2
4
2

QB-ENG-Page 6 of 54

90 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 normally appear?

Attestation.

Operative clause.

Preamble.

91 Policy A and Policy B were surrendered on the same day after


paying the 22nd instalment of the premium. But the
Surrender Value in policy A was higher as compared to policy
B because
92 If someone of age group 15 /16 having a contract with
insurance companies that contract would fall under which
category
93 The obligation of the insurer for the whole life policy is
mentioned in
94 In which kind of policy the insurable interest should exist at
the time of claim only
95 The clause of indisputable is applicable from inception of
policy to
96 Insurable interest on one's own life limited upto

Policy A has a higher term than Policy B

Policy B has a higher term than Policy A

Policy A has been assigned

Valid

Invalid

Void

operative clause

Preamble

Proviso

Motor insurance

Marine insurance

Liability insurance

4 years

2 years

3 years

20 times of Gross Annual income

limit depends upon the insurance company

10 times the families annual income

97 The concept of indemnity is based on the key principle that


policyholders should be prevented from

Insuring existing losses.

Making false insurance claims.

Paying excessively for insurance


cover.

98 Sachin who is 17 years wants to buy an endowment with


profit policy . The insurance company rejects the proposal
form on what ground ?

the residence proof is not from the India

sachin is not attained legal age to enter a contract

Endowment policy do not have with


profit feature

99 When will the Principle of Utmost Good faith apply in Term


insurance plan?
100 Insurance company comes to know that Mr A had been issued
a policy earlier with extra premium charged . Which
document was referred by the insurer to come to this
conclusion
101 An agent surrendered the policy of a client on 10 Feb. 2011,
when can this client buy new plan?
102 When does insurable interest exist in life insurance contract ?

Throughout the policy contract

before premium deposit

before receiving policy document

Proposal form

Medical reports

Client confidential reports

After 5 years

within one year of surrendering

can never buy another policy

At the inception of the contract

At time of death claims

during the survival benefit payouts

103 If the sum assured remains the same, what will be impact of
net premium if the age of the policyholder increases

It rises

It falls

It remains constant

104 In case the customer has stopped making payment for the
premium of the policy. The revival procedure would require
the which of the following
105 In a life insurance policy it is later found that the person
doesnt have insurable interest then the contract is

payment of outstanding premium with interest ,


Only reinstatement fees has to be paid
proof of good health & in some cases reinstatement
fees
expired
reviewed

Upto two years the premium with


penalty can be waived off .

106 Net premium is equal to

Premium plus interest earning

Risk premium plus interest earning

Premium minus interest earning

107 Principle of utmost good faith will operate in existing policy

Every time premium is paid

If the policy has lapsed and it has to be revived.

Void

108 Both the parties to a contract must agree and understand the Consideration.
same thing and in the same sense which is called

Legality of an object.

If the insured person falls sick and is


admitted to hospital.
Consensus ad idem.

109 Amitabh is married and he has as his dependants , his wife


Income protection
Nelima and no child, which should be his priority in
investments?
110 Amit has taken a G-Sec and has parted with it mid way as he Discounted Value
required the money with the intention of not getting the
interest. What will he get?
111 When net premium is adjusted in order to calculate the gross Loading
premium , this process would be known as what ?

Inheritance planning

Investment efficiency

Principle amount

Discounted Value with persistency


bonus

Discount

mortality charges

112 A life insurance policy is issued with a Lien , this would be


mentioned in which part of the policy document ?

Proviso

Schedule

Terms & conditions

113 In a pension plan illustration what are the parts which shows
the benefit for an annuitant.

Open market option part

Annuity part

Guaranteed and non guaranteed part

QB-ENG-Page 7 of 54

Terms and conditions.

3
Policy B has been assigned

2
Illegal

3
Endorsement

Travel insurance

5year

No limit to self life

Profiting from insurance.

Submitted KYC documents are not valid


for Sachin

After receiving the policy document

Medical referees report


1
wherever he wants to buy

Through out the Term of the plan

Gross premiums increases

No revival is possible when the policy iis


lapsed
Valid

Risk premium minus interest earning

If the insured person changes his job.

Acceptance.

Long term savings


Principle with persistency bonus

Interest add ups

Endorsement

commutation part

3
1
1

2
3
QB-ENG-Page 8 of 54

114 The employer ABC has an insurable interest on his employee


Mr Janki who is their chief financial executive . Which type of
plan can ABC propose on Mr Janki's Life ?

Surety insurance

Keyman Insurance

Partnership Insurance

115 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 he approach?

National Commission

District Level

State Level

116 Rajesh is 34 years old and having 2 sons, Vineeth and


Sumith. The level of risk appetite, Rajesh belongs is
_______.
117 Under this situation may leads to breach of the duty of
utmost good faith.
118 Principle of Indemnity denotes..

Middle Level

Top Level

Low Level

Non disclosure of material facts.

Concealment of a material fact

Fraudulent misrepresentation of facts.

Insurance can not be used to make a profit

Insurance should not taken by high risk people.

119 The principle of utmost good faith is not applicable to

Facts of common knowledge

Facts of law

Insurance can not taken by


politicians.
Facts those are not material.

120 The factor involved in calculating Surrender Value of the


Policy would be
121 Mr. Rajesh has taken policy from ABC insurance company for
Rs. 500000 Sum Assured by paying Rs. 50,000 premium per
year. Company declared 5% Simple Reversionary bonus,
what is bonus amount?
122 In an insurance contract 'consideration' means........

amount of premium being paid

If it is a proposer case.

mode of premium payment

Rs. 2500/-

Rs. 25000/-

Rs. 250000/-

proposal form

Advisors confidential report

premium

123 a classic example of Non Existing Insurable interest would


be ...
124 The principle of utmost good faith applies to...........

surety-co surety

employee-employer

husband-wife

only insurers

only proposer

both insurers and proposer

125 Mr.Shanth has taken an endowment policy of 15 years with


ABC insurance company. He has paid premium for 4 years
and he could not pay premium for 5th and 6th year. In the
7th year he approaches the company to renew the policy.
Now which of the following options will apply to him?

The policy will be renewed on the existing terms


and conditions.

Mr. Shanth cannot renew the policy

the policy may be renewed on


different terms and conditions

126 Which of the following statement is not true in connection


with nomination?

The life insured can nominate one or more than one Nomination can be done either at the time the policy
person as nominees.
is bought or later.

A person having a policy on the life of


another should make a nomination.

127 Which of the following statements in correct in connection


with assignment?

Assignee cannot make fresh nomination in the


policy

The assignor need not be major at the time of


assignment.

Section 45 of the insurance act


speaks about assignment.

128 Mr. Shanth has taken an endowment policy of 20 years. He


Mr. Shanth will not be granted any loan
has paid premium for 10 years and now the policy is in force.
At this point of time can Shanth take loan?

Mr. Shanth can take loan which should be certain


percentage of the surrender value of the policy.

There is no concept of loan in


insurance policy

129 Mr.Akash filled the proposal form but before submitting to the Consideration in the contract
company he discussed with the agent that he is not sure
whether he can pay for 15 years . This attitude affects which
part of the contract?

Capacity to contract

Consensus ad idem

130 Mr.Karan who has to go to abroad for 6 months on an official The insurable interest between the car and jim is
work decides to leave his car with his friend Mr. Jim. What will valid for 6 months
be the validity of the insurable interest in this case ?

The insurable interest between the car and karan is


valid for 6 months

The insurable interest between the


car and karan is valid until he owns it

131 Mr. Josh was filling the proposal form but as his mother was
sitting beside him, even though he drinks and smokes he
ticked NO in smoking & drinking column of proposal form.
This indicates ?
132 Mrs.Shwetha has taken a loan from her policy. Later stage
she neither paid back neither the loan nor she paid the
premium for a very long time. What will happen to her policy?

He has breached the contract with non-disclosure of He has breached the contract with concealing the
the fact
facts

He has breached the contact by


fraudulent information

Policy will be foreclosed by the insurer after sending Policy has to be surrendered only my Mrs Swetha.
a foreclosure notice

Policy will continue to the end of term


and Mrs Swetha would get back her
maturity claim after deduction of loan
amount
He cant take loan from money back
but can avail loan from Whole life
policy

He regularly pays premium so he can take loan


133 Mr. Manish has a money back policy and a whole life policy.
He is planning to take some loan from both the policies as he from both the policies
was regularly paying the premium. What is your suggestion?

He can surrender whole life policy and can take loan


from Money back policy

QB-ENG-Page 9 of 54

Debtor Insurance
2
Mandal Level
2
High Level

All of the above.

Indemnity bond to be signed with every


life insurance proposal form
All of the above.

Policy should have a saving element

Rs. 5000/2
claim

brother-sister

neither insures nor proposer

Mr. Shanth can renew the policy only on


the approval of the insurer
3

The section 39 of the Insurance Act


1938 speaks about the nomination.

Conditional assignment and absolute


assignment are one and the same.

loans are allowed only in term plans


2
Offer and Acceptance in the contract
4

The insurable interest between the car


and Jim is valid until Karans return

He had done an innocent


misrepresentation

Policy can be converted into non profit


plan and closed by Mrs Swetha

He cant take loan from whole life policy


but can avail loan from Money back
policy

QB-ENG-Page 10 of 54

134 Mr. Raj has taken a policy of 15 year term. He has paid the
premium for 9 years. But now unfortunately he has lost his
job. He is unable to pay the premium. What can be the best
solution from the following ?

Converting the policy to Term policy

Converting the policy to Paid up

Converting the policy to money back

135 A contract exists between insurer and proposer when

A proposal has been accepted by insurer.

A policy document has been stamped by insurer.

136 Shamsher has a health insurance policy of Rs 1, 00,000


individually and from his company for Rs 2, 00,000. He falls
sick and got hospitalized. His hospital bill ran to Rs 50,000.
He claimed this amount from his individual policy. Also, he
placed the request with his company for group policy claim,
which was rejected. The reason for rejection is.

Indemnity contract.

Value contract.

A policy document has been received


by the policyholder.
Deemed contract.

137 Payment of premium and sum assured are laid down in

Heading of policy document.

Proviso of policy.

Operative clause.

138 An insurance contract commences when

Quotation is signed by proposer.

First Premium Receipt is issued.

Proposal Form is signed.

139 When is premium considered / deemed to be paid?

When insured writes a cheque in favour of insurer.

140 Lalu Yadav is having a saving plan with 20 years tenure. He


has paid 5 annual premiums but due to financial crisis is
unable to make future premium. His policy

Acquires surrender value.

When cheque amount is deposited in insurer account. When the cheque is deposited with
insurer office.
Contract comes to an end.
Moneys will be forfeited.

141 How assignment distinguishes itself from nomination?

Nomination does not transfer the title while


assignment does.

Nomination transfers the title while assignment does


not.

142 Under what circumstances the surrender of a policy should be When a client have been sold the right solution.
recommended by
143 What key event is most likely to make an insurance contract The circumstances are legitimate.
not a valid contract?
144 Manish took a loan from Pankaj for Rs.10 lac. Pankaj
Loan assignment
assigned his Insurance policy to Manish of Rs.10 lac as a
security with the agreement Of when Loan is fully paid, policy
title will be revert back to name of Manish . This would be
classified into which type of assignment :

When a client is holding a product having good value


for
Representation of facts by the policyholders is true.

Nomination is made after policy is


issued while assignment is done
before it is issued.
When the policy has been miss sold
and do
The life assured is major.

Conditional Assignment

Loan Agreement

145 Rakesh has bought an Endowment, Money back, Term &


Endowment Plan
Annuity Plan . Now he needs to take a loan for personal
requirement. He calls his agent to suggest under which of his
policy he could take a loan from . The agent would suggest
from which of the plans of Rakesh ?

Term Plan

Money Back Plan

146 On foreclosure, if Death claim arises before the payment of


the surrender value, the payment would be payable to:

Legal heir of life Assured

Debtors

147 Which clause lays down the mutual obligation of the parties
Lien Clause
regarding, Payment of Premium by Life assured & payment of
Sum Assured by
148 Gaurav is working in MNC at the age of 32 bought an
Nominee only
Endowment Plan. He had nominated his 1 year old daughter
Saanvi, but not able to get the Signature of her appointee
due to unavailability of his spouse .after 5 year. He died in
road accident, now claim money would be payable to:

Opertaive Clause

Proviso Clause

Legal heir of the life assured

Appointee Only

149 Parvesh bought a policy an endowment plan but after one


year, the insurance company found that Parvesh had
undergone Aorta Surgery ..In this case the insurance
company will make the contract null and void based under
which of the clauses/ principles of Insurance act ?

Principal of Indemnity clause

Lien Clause

Standard Age proof

Government authentication proof

10th year

15th year

Nominee

Indisputability Clause (Section 45) apply

150 Jyoti is submitting is copy of PAN card as age proof for buying Non Standard Age Proof
A money back plan .This would be categorised into which
type of age proof ?
151 In a 20 year with profit policy, persistency Bonus is paid at
1 year
the end of

QB-ENG-Page 11 of 54

Converting the policy to whole Life


2

An insurer has made another proposal.

Rolling contract.

Schedule of policy document.

Policy Document is received by


policyholder.
When cheque is posted/couriered by the
insure.
Acquires paid up value.

2
3

4
Nomination need not be informed but
assignment needs to be informed to
insurer.
When the client is enjoying good
There is no insurable interest attached
to the policy.
Absolute Assignment

1
3
4

Annuity Plan
1

forfeited the Premium

Schedule of Policy

will be Payable to Saanvi (Nominee) at


the age of 18th
2

Principle of Utmost good faith


1

Proof of Income tax payer

20th year

2
4
QB-ENG-Page 12 of 54

152 Vikas submitted an Age proof from Village Panchayat while


Standard and accept the proposal
taking a Term plan for Rs 5 Lakh SA . The insurance company
would consider this as which of the following ?

Not standard & will accept the proposal

Will reject the proposal

153 If a customer has mentioned he is a drinker in the proposal


form, the insurance company can exclude this hazard and
mention it in which part of the policy document?

Provisio

Endorsements

Operative clause

154 What to be considered while taking first policy


155 Which of the following is a Non Standard Age Proof

Personal Details
PAN Card

Family Details
Certificate of Baptism

Employment details
Certificate from Village Panchayat

156 In the insurance contract the risk cover is given in return of


the
157 If a life insurance contract is established without any
insurable interest in existence , the contract will be

Consideration

Consensus ad idem

Capability to perform

Invalid

unconditional

valid

158 Mr xyz accepted the contract formed by Mr Y .Is this

a consideration

an offer & acceptance

voidable contract

159 Mr. A & B started an endowment [policy on the same date


paying same premium on quarterly mode. After payment of
22nd premium both surrender the policy Mr. A's surrender
value is higher than B, what could be the reason

A's term is more than B

B's term is more than A

A is healthy & b is not

160 Payment of SA on happening of an event of dates premium


payment ,nominees ,lien ;all form part of
161 When is An appointee is required in the Life Insurance plan ,
the reason could be ?
162 While underwriting Mr. X proposal form it is found out that
there is a criminal case against him for fraudulent activities.
What type of risk would this fall in

schedule

Preamble

Terms & conditions

Nominee is spouse

Nominee is Minor

LA is minor

Fundamental risk

Physical hazard

Moral Hazard

163 How much insurance can be given to a working person ?

As per Human life Value

10L

50L

164 While calculating Human life value (HLV) in simple method


two components need to be kept in mind , the first one is net
monitory contribution to the family per annum and the
second would be ?
165 TWO FRIENDS HAVE TAKEN SAME POLICY BUT THEIR
PREMIUMS ARE DIFFERENT WHY?
166 Till what period is the interim bonus valid
167 Annual premium of insurance product is Rs. 32,000, 4%
loading on Quarterly mode of payment What is the quarterly
premium?
168 As per the norms of risk assessment by underwriting, both
the parents of a policy holder died in their early 30s due to
Heart disease, what is the risk assessed

Bank Fixed deposit rate

discount rate

Estimated life expectancy

AGE

MEDICAL

SA

as long as the policy is inforce

Till the next declaration of bonus


7680

Moral Hazard

Till the next validation date


8000

8320

Medical Hazard

Occupational Hazard

169 In accordance to money laundry regulation, the NRI should


No Risk
be categorized to what type of customer?
170 Mr.Sunil is doing premium calculation for his company, as per Council of Actuaries
which authority is his profession related to

Low Risk

medium Risk

Insurance council of India

Insurance institute of India

171 what is the special report that is asked by the underwriter


HLV report
from the officer of the insurer?
172 The insurer requires agent confidentiality report in order to ? To calculate Premium

Agents confidential report

moral hazard report

To Calculate the commission due for the agent

To verify the Plan proposed

173 A human being is


An economic asset
174 Suraj had taken an endowment plan for Rs 10 Lakh SA . He
The Policy was issued with a Lien
died in eight months from the inception date . The Insurance
company did not pay the Full SA , Instead paid out Rs 5Lakh .
What could be the reason .

Has a capacity to generate the income


The bonus for the policy had not yet declared

Has a finite life span


The policy had only maturity claim
provision

175 Mr. A wants insurance cover . But he is drinks alcohol


frequently . What kind of hazard you may categorize?

Moral Hazard

financial risk

Physical hazard

QB-ENG-Page 13 of 54

Will accept with a lower SA


2
Terms and Conditions
4
All of the above
Certificate from School or College

Unconditional acceptance

voidable

consensus ad idem

A' financial condition is better than B


2

Endorsements

All cases

No Risk
3
1 Crore

Estimated amount at retirement


2
ALL THE ABOVE

4
2

none of the above


8500

Physical Hazard
4
High Risk
IRDA

4
1

medical report

To help the underwriter to asses the


Risk
All of the above
The death was due to accident

4
4

Pure risk

QB-ENG-Page 14 of 54

176 Insurer appoints a candidate of this professional


qualification ,who decides the amount of premium in
insurance products
177 as per IRDA regulation , the decision on the proposal has to
be communicated to the Proposer within how many days of
receiving the proposal by the insurance company

Actuary

Underwriters

Sales Officer

7 days

10 days

15 days

178 When an interim bonus is paid under with profit policy, This
normally represents a bonus covering what period

Policy start date to the 1st Anniversary

Policy start date to the end of the 1st calendar year

Previous valuation date to claim date

179 While calculating HLV in the incremental method , along with


future income, number of years of work & future value of
earning potential which is the other most important factor
taken into consideration ?

Inflation.

Interest.

Discount rate

180 Vishal and sandeep applied for a health plan in XYZ Life
Insurance Company. Vishal is asked to undergo a medical
check up but Sandeep is not asked to do so. What will be
most possible reason?
181 For which of the following reasons, the underwriter should
ask beyond agents confidential report.
182 With reference to the principle of indemnity a life insurance
policy is a.
183 Micro insurance is made specifically for people from.
184 If Insurable interest does not exists at the time of inception
of the life insurance policy then, life insurance contract is

Sandeep has taken another policy from XYZ Life


Insurance Company

Vishal is older than Sandeep

Sandeep is earning more then Vishal

Physical Hazard

Moral Hazard

SA is too high

Insurance contract.

Indemnity contract.

Value contract.

High income.
Non Voidable

Middle class.
Invalid

Low income.
Valid

185 If a contract is signed by a 15 years old boy, this contract will


be
186 Shailesh and ankit want to retire in the age of 65yrs. But
shailesh pays more monthly payment than ankit for same
amount of policy. Why?
187 In a case, the underwriter felt that the risk associated with
the person would decrease with time, then he would accept
the case with
188 Mr. Kumars wife is suffering from blood cancer. Doctors lost
their hope on her live. Mr. Kumar would like to take Life
Insurance policy on wifes name in order to get monitory
benefit. Insurance company rejects this proposal on the
grounds of.
189 What is the main source for insurance company to get
information of proposer?
190 Moral Hazard reflects the .

Null and void

Invalid

Voidable

Shailesh is older than Ankit.

Shaileshs income is more than Ankits income

Shailesh family is larger than ankit's


family

A clause

A Lien

A Loading

Anti Money Laundry

Moral Hazard

Capacity of paying future premiums.

Advertisements.

Proposal form.

Conducting interviews.

Intentions and attitude of Proposer.

Habits and Hobbies of Proposer.

191 Income replacement methods equates Human Life Value


(HLV) to
192 The underwriter can get the required information about the
proposer in.....
193 Mr. Ramesh works in a mining company. So he is exposed
to..............
194 Lien is imposed on a policy when underwriter feels that......

Future value of Present earnings.

Present value of future earnings.

Occupation and Residence of


Proposer.
Present value of previous earnings.

Proposal form.

renewal receipt

brochure

moral hazard

physical hazard

mental hazard

the risk associated might increase

the risk associated might decrease

195 What does the mortality tables contains ?

Tables of death occurring in various circumstances

Tables of details of various probabilities of death

the risk associated might not be


harmful
Tables of details of underwriters
calculation on death

196 Mr. Guptha is recently detected with lung cancer. He would


like to take an insurance. What is your suggestion?

Time of death is uncertain, so insurance can be


given

Only lung is affected so health insurance can be


given.

He can take insurance after


submitting health certificate

Date of commencement of last premium

Date the policy matures

B. Moral hazard, as he is 52 years old and wife is not


the nominee

C. Moral hazard, as coverage is high


and brothers son is the nominee

197 Which of the following information does not appear in the


method and frequency of premium payment
First Premium Receipt?
198 Mr.Santhosh working as a head master who is around 52
A . Physical hazard, as he is old
years had requested for an Insurance cover for Rs.1 crore.
He insisted that his brothers son should be the nominee not
his wife. Underwriter will verify this case for which one of the
following:

QB-ENG-Page 15 of 54

Advisor

30 days
3
claim date to next valuation date

Compounding.
3

Vishal is working in a MNC


2
Pure Risk

Major life contract.

Affluent class.
Null

Valid

Shailesh is a Businessman and ankit is a


government employee

Level Premium

Physical Hazard
2

Telephonic conversations.

Medical and Personal History of


Proposer.
Future value of previous earnings.

annual report

Ethical hazard.

the risk associated might be general

Tables of details of actuarial calculation


on death

Cannot give insurance for health reason

Date the last premium will be paid


D. Moral hazard, as he is a head master
and 52 years old

4
2

QB-ENG-Page 16 of 54

199 Mr.Feroz has applied for an insurance cover of Rs.4 Cr. The
Company will accept or reject the proposal only after
confirming from one of the following agencies

Financial Inspection agencies

Specialized inspection agencies

Credit worth inspection agencies

200 The responsibility for classification and analysis of the


proposal form lies with whom?
201 In underwriting the economic value of the person is
determined by what?
202 Rakesh purchased a life insurance policy. While writing a
proposal form he hide that he practices mountaineering.
Sadly he died in an accident while climbing Mount Everest.
The insurers rejected the claim. What is the reason for
rejection?

Risk Analysis Department

Classification of Risk Department

Underwriter

The occupation of the person

The financial history of his family

The income that he earns

Innocent misrepresentation.

Fraudulent misrepresentation.

Concealment.

203 Ram Lal is an insurance policyholder. He has recently shifted


his home from New Delhi to Noida. He wants the address to
be changed. This change in policy document will be effective
through?
204 When an underwriter may consider Moral Hazard?

Terms & Condition.

Preamble.

Endorsement.

An individual is proposing SA 15 times his annual


income.
Risk Premium.
Minimum Possible Loss.
Simple Revisionary bonus

Insurance is taken out by an individual with


dependent
Net Premium.
Major Possible Loss.
Compound Revisionary bonus

A nominee is not a dependent.

208 Ramesh bought an endowment plan for ten year. He pays the Gross Premium
same Amount in every year through out the policy term . This
amount is called:
209 Which one of the following is not source of information about Proposal Form
the proposer required by the Underwriter .

Level Premium

Risk Premium

Insurance agent confidentiality report

Names and address of the proposers


friends and colleagues

210 Manish being a sole earning member of his family , has not
insured himself . But he is looking for insurance for his son
who is student . This could fall under which category os
Hazard in insurance ?
211 Who is the primary underwriter of the clients
212 Certificate from the village panchayat
213 What will be lien amount in 3rd year as compared to the 4th
year of lien.
214 A person submits as age proof, a certificate from the Village
Panchayat. Is it a
215 ACR is prepared by Insurance agent. If Mr X wants a higher
SA then the underwriter would ask for additional report apart
from ACR , the branch head will have to do what ?

Physical Hazard

Moral Hazard

Occupational hazard

Insurer's doctor
Will be considered as standard age proof
It is higher

Underwriter
Will be considered as non standard age proof
Decrease

Agent
Will not be accepted
Slightly higher

Standard Age Proof

Non Standard Age Proof

Prepare a more detailed report

Prepare a Moral Hazzard report

Standard, if accompanied by agents


signature
Prepare a detailed investigation
Report

205 Level Premium is calculated based on


206 MPL abbreviates
207 Which one of the following bonuses is given by insurer as an
incentive to the insured to for long term:

216 After receiving the proposal form, under how much time the 7 days
insurance company has to revert to the proposer with its
decision?
217 Anil is going to take life insurance policy in which total annual
Premium is Rs 32000/- and there is 4% frequency loading for
quarterly mode. What will be the quarterly premium ?

Loading of Premium.
Minor Possible Loss.
Persistency Bonus

10 days

7820

15 days

8000

8320

218 The process of adjusting the amount of Life Insurance


premium, so as to reflect bonuses is called

Indemnifying

Indexing

Loading

219 Underwriter is assessing the risk for the individual who


already is already a policyholder and previous policy was
accepted at non standard rates, which of the following
documents will be helpful to assess the risk

premium Quotation .

claim form

Proposal Form .

220 What tax rate, if any, will be applicable to a life insurance


Nil
policy holder for the maturity proceeds of a Rs 50,000 life
insurance policy
221 What is maximum level of Insurance premium for which
Income Tax benefit is available
222 Mr. X wants a life cover for the term of 20 Yrs. Also he wants Term Plan
a modest amount if he survives through the term. Which plan
would you suggest to Mr X?

25000
Endowment plan

QB-ENG-Page 17 of 54

0.1

0.2

50000

100000
Convertible plan

Insurance Investigation agencies


2
Actuary who analysis the risk

Human Life Value

Non-Disclosure.
3

Schedule.
3
A medical check up is carried out nearby
place of residence.
Gross Premium.
Maximum Possible Loss.
Interim bonus

Net Premium

3
1
4
3

Medical of examination report

Medical hazard
2
Nominee
Will be verified first
Slightly lower

2
2

Village panchayant does not issue Age


proofs
Prepare a Client Confidential Report

3
30 days

3
8200
3

Reviving

Policy Document.
1

0.3

150000
ULIP

3
2
3
QB-ENG-Page 18 of 54

223 In which category of Insurance plans , a Loan can be availed


by a policyholder ?
224 Which plan will suits a customer need who is just looking for
protection of family.
225 If 50000 is invested in Single Premium ULIP than what will be
the minimum SA applicable?
226 What is the maximum cover that can be provided in micro
insurance?
227 Mr. A has a son who is 5 yrs and he wants to save funds for
his education. Both the parents are risk averse . Which plan
is suitable for them?
228 A Couple has 7 year kid & wants to Buy some Policy. Which is
the best suitable policy for his Son?
229 Ajay is 35 years old and works for a multinational corporation
(MNC). He has a ten-year-old son, Vijay, whom he dreams
will one day become a doctor. Ajays spouse is a housewife,
and his parents are retired and dependent on him. Ajay has a
home loan of 40Lakhs. He has an endowment plan with a
cover of 2Lakhs only. What is most immediate need for
Insurance
230 Client has taken Joint Life Policy.. Whose responsible in the
contract?
231 If a person has taken a Pure Endowment Policy, then what
will be the death benefit if he dies during term of policy?

Health Policies

Term Policies

Endowment Policies

Term Insurance

ULIP

Endowment

50000

75000

62500

5000

10000

50000

Convertible plan

Term Insurance

Endowment Plan

Only ULIP Plans

Only Endowment Policies

only Term Plans

term plan

health plan

endowment plan

Insurer

Proposer

Proposer & Wife

No Death Benefit

Sum Assured will be paid

Both are correct

232 Two People of the same policy Term, one person pays more
premium because
233 Adverse selection occurs when a group of individuals try to

Married

Wife Younger

Health deterioration

cover only particular members of the group

to cover all members

have uniform coverage

234 If raju wants to accumulate a lump sum for 20 yrs but does
not require life cover, which policy will be suitable?

Term insurance plan

Money back

pure endowment policy

235 In a joint life plan for a husband & wife, where should the
agent' principal loyalty lay?
236 Hari wants a constant life cover till his 31st birthday. But he
cant afford to pay high premiums. The best suited products
for him would be
237 what is the special feature of ULIP that ensures customer risk
profile for long time insurance policies
238 At the time of maturity , quarter of the SA is paid though the
policy was in force. What type of insurance plan would this be
?
239 Rahul has taken a joint life policy with his wife .Who is
responsible for premium payment ?
240 Krishna and Laxmi are married having 7 years old child.
Which policy will satisfy the long term protection needs for
both
241 Term insurance if best suited for the following need
242 A group of people insured in a policy . They belong to which
category
243 In endowment policy , for the death claim of the
policyholder , , the insurance company would be paying the
nominee:SA plus Bonus & Minus ?
244 Which factor needs to be kept in mind before deciding a child
policy ?
245 Frequent switching is not advisable in ULIP plan because it
increase
246 An insurance agent sold two policies to two different persons
having the same policy term. He declares the commission to
each of them. The commission of one of the policy is more
than the other. What should be the reasons for this
difference?
247 Where annually increasing flexible premiums operate under a
life insurance policy, what rate of increase will generally
apply?
248 During Fact finding, rating is mentioned 3. This Indicates

Insurance company

Husband only

Husband & wife

Pure Endowment

Anticipated endowment

Term plan

fund switching

partial with drawl

premium holiday

Endowment

Lien

Money back

Rahul

His wife

children

Endowment

Money back

Term Insurance

home loan
Same Age

education needs
Employees

marriage of kids
Family

Outstanding premium

Commission outstanding

Persistency bonus

Mode of the premium

Inflation

Maturity Value

Investment Risk

Risk of death

Uncertainty of return

Risk profile of both the policyholder are different

Age of both the candidate are different

One has chosen Single premium


policy and other has chosen regular
premium policy

2.50%
Risk apatite of client

3.00%
His future aspiration

QB-ENG-Page 19 of 54

5.00%
Commitment to need

All of the above

Moneyback

3
100000

100000

ULIP Plan

Child insurance plans can be taken out


in the form of endowment plans,
money-back
plans or ULIPs
traditional plan

Insurer and both the Life Insured

both are incorrect

Higher Age

None of the above

Whole life

Insurance company, husband & wife


ULIP

4
3

riders

Surrender

Both a & b

Child Investment policy

3
1

Retirement needs
same grade

Interest

Vesting Age

Chances of lapse

Both have chosen different kind of


policies.

7.50%
Willingness to pay

3
1
QB-ENG-Page 20 of 54

249 Incase of presumption of death

Not necessary to pay premium until court decree

Necessary to pay premium until court decree

Claim not admissible

250 Within how many years a complaint can be made through


consumer protection act.
251 Basing on which criteria the qualification of Agent is
determined?
252 Payment/Investments in Kishan Vikash Patra under post
office schemes is done by the way of ?
253 Whose signature is required on attestation of the policy
documents ?
254 What does MDRT Stand for?
255 Mr. Kumar is taken one life insurance policy with ABC
Company. But he is not satisfied with the policy benefits.
What Mr. Kumar can do under this situation?

One year

Two years

Three years

Address of the agent

Domicile status

Qualification of Agent

Regularly with no fixed term

Lump Sum with no fixed term

Lump Sum for fixed period of time

Agent

Policy holder

Authorized officials of insurer

Million Dollar Round Table


He can not do any thing, because be received the
policy bond.

Major Double Rupees Tag


He can file a complaint against insurance company in
court.

Major Dollar Round Tag


He can send back the policy document
to insurance company with in 15 days
from policy receiving date.

256 The two basic elements of most life insurance plans are

Guaranteed Benefit and Non-guaranteed Benefit.

Interest Benefit and Bonus Benefit.

Death Benefit and Maturity Benefit.

257 Term Insurance Plan will give.


258 Low risk products give..
259 Which of the following product not comes under Section 80
( C ), income tax act 196
260 The income of an individual can be protected with the help
of.........
261 Mr. Shanth has got a pure endowment policy for 30 years for
the sum assured of Rs. 75,000,00/-. It can be paid to
him......
262 Flexibility like partial withdrawal and taking premium holidays
is possible with....
263 Mr. Vinu got a job recently, he cant afford to pay the higher
premium as of now but in future once he settles down with
his job he can pay higher premium. Which one will be the
best plan?
264 Mr. Kumar decides that his employees should have SSS
scheme. What type of plan is SSS?
265 What is generally considered as a substitute to charging a
high premium for a high risk?
266 Manmohan has recently purchased a house worth rs 50,
00,000 on loan. Which insurance product you as an adviser
will suggest?
267 In Group insurance plans contract of insurance between
?
268 Which option is not correct with regard to joint life insurance
plan?

Only Death Benefit.


High Returns
National Saving Certificates.

Only Maturity Benefit.


Low Returns
Equity Linked Saving Schemes.

Only Bonus Benefit.


Moderate Returns
Principle component of home loan.

a unit linked policy

a term life policy

an endowment policy

when he dies

when he survives the term

when he is hospitalized

Fixed deposits

Unit linked Insurance plans

Term Insurance

Convertible Endowment plan

Convertible Term plan

Convertible pure Endowment

Salary saving Life plan

Not a specific plan

Salary insurance plan

Clause.

Assignment.

Lien.

Endowment Plan.

Money Back Plan.

Whole Life Plan.

Master Policy holder & insurer

Employer & Employee

Employee & Insurer

Plan offer insurance coverage for two person in one This plan is ideal for brother & sister.
policy

Each life will be underwritten


separately.

269 Shaan, Age 22, suffering from Asthama, buys a 25 year Term Age
Insurance cover on Joint Life basis. What will reduce the need
for him to use nomination facility?

Policy Type

Joint Life Option

270 Vijay wants life cover for 20 years and a modest saving for
his child at the end What kind of plan is suitable for him?

Term Plan

Whole Life

Endowment

271 Weekly premiums are generally collected for which


type/range of plans
272 Suresh wants to transfer his physical gold to gold exchange
traded fund, in relation to access, this change will

Banca assurance

Health plans

Micro Insurance

Increase his liquidity

Decrease his liquidity

Reduce his encashabilty for next six


months

273 ULIP & NSC which is giving more tax benefit

ULIP

NSC

Both with same benefit

Taxation

Look-in Period

274 The advantage/disadvantages within cumulative and fixed


Returns
traditional deposits pertain to275 Ajay is 35 years old and works for a multinational corporation
(MNC) **Ajay salary is 80,000 he want home loan . what is
maximum EMI he can pay per month as per financial
experts ?
276 between ULIP & NSC which of them give tax benefit u/s
ULIP
80C ?

8000

16000

NSC

QB-ENG-Page 21 of 54

24000

ULIP & NSC

Depends on case to case

Five years

DOB of Agent

Regularly for fixed period of time

Proposer

Mean Disposition Residence Time


Serve notice to insurance company on
policy benefits.

Bonus Benefit and Tax Benefit.

Only Tax Benefit.


Good Returns
Premium paid for Health Insurance Plan.

1
2

a money back policy

when he loses his job

Endowment plans

Convertible money back plan


1
Salary Specific plan

Level Premium.

Term Plan.

Creditors & Debtors

A joint life policy may cover a partner in


business under one policy.

Health
3
Money Back

Term Insurance

Create a future exit liability

None of them having any tax benefit

Investment Frequency

1
32000
4

None of them

3
QB-ENG-Page 22 of 54

277 Under which section of the Income Tax Act can an individual
get a deduction from taxable income for the health plans

S. 80D

S. 80C

S 80E

278 What period of time a client has to be invested to get tax


10 Years
benefit under postal scheme?
279 If a person is going to face job loss for a temporary period,
Debt Funds of MF
then what is the ideal instrument to invest money apart from
Bank FD?
280 Mr. X Invested in a Bank FD with 6% Return, However his
Inflation
actual returns deemed to be 4% What are the reasons ?

8 years

6 years

NSC

Corporate bonds

Charges

Current Market Scenario

281 A person planning to invest in Kisan Vikas Patra will go to

Post Office

Internet

282 A person Wants to invest in a FD for Tax benefit , what is the 5 year
minimum term he should take while investing in FIXED
DEPOSIT
283 A customer while investing in to Recurring deposit or
Taxation
Cumulative deposit what are the key factors which will matter

4 year

3 Year

frequency of payment

interest rates

284 A person is holding 100 units of GOLD ETF certificates . How


many grams of GOLD does he Have ?

10- 20 gms

20- 50 gms

50-100 gms

285 Manoj a 26 year old is having 7 years old son. What will
happen to his monthly disposable income after 15 years of
job
286 Ramesh has invested in Post office Monthly Income Scheme.
The interest rate was set at 6%. What will be the effect of
rate till the maturity.
287 If a person chooses Cumulative deposit than Recurring
deposit ,difference will be in
288 Kishan Vikas 's payment gets cleared at
289 RBI increased interest rates 2 times, then the stock prices
will
290 Rahul switches from direct holding of shares to equity based
mutual funds. The impact on risk would be

Marginally decrease

Significantly increase

less than after 15 years

Increase gradually

Decrease gradually

Remain Constant

frequency of interest calculation

Tax

Interest tax

Bank
increase

Post office
decrease

Insurance company
volatile

Less transparent

More diversified

Less return

291 Raj and akshat of are paying the same annual premium for
the health policy taken on the same date for the same term.
But raj is getting higher deduction for income tax as
compared to akshat
292 Raj is married with two children. Age 9 and 11 years. What
should be the last priority for him among the life, health ,
retirement and child investment policy

Raj is married and akshat is single

Raj is above 65 years and Akshat is below 65 years

Raj is in the good health and akshat is


in poor health

Life Insurance

Health Insurance cover

Retirement plan

293 What is the frequency of interest in Cumulative deposit


Monthly
account
294 If RBI increases the interest rates then what will be the effect Shares will be more attractive.
on share prices.
295 What is purpose of investing money in debt mutual fund?
Easy access

Quarterly

Half Yearly

Shares will be less attractive.

Fixed deposits will be more attractive.

Fixed income

Tax Benefits

296 What is the similarity between Recurring Deposits &


cumulative deposits in a bank
297 If a person want to maintain emergency funds , the best
place is a bank or
298 What is the advantage of converting physical gold assets to
gold ETFs.
299 An investor holds a wide range of shares. If the Reserve Bank
of India announces a series of significant interest rate
increases, the prices of these shares are most likely to

Guarantees

Taxation

Tenure

Equity market

ULIP

Debt mutual fund

Liquidity

More gold in value

Purity

Become volatile

Decrease

Increase

He has opted for Settlement option

He has he has redirected his past


premium.

Insurance Branch

300 After maturity In a Unit Linked Life Insurance Policy,


He has switched his fund
customer does not get received Maturity in a lump sum. What
is the possibility of receiving it in instalments if it is not a
annuity plan

QB-ENG-Page 23 of 54

S. 80F

5 years
Govt Bonds

All of the above

Mutual Fund Office


2 Year

tenure

10 gms

will remain same

Change as per market fluctuation

2
4
1

1
2
1

Tenure

Any one of the above


same

Steep rise

Raj is earning more and akshat is


earning less

2
2

Child Investment policy


3
Yearly

Fixed deposits will be less attractive.

Liquidity

Lock in periods

FD

More conversion value

Remain unchanged
2
Policy was lapsed on the time of
maturity

QB-ENG-Page 24 of 54

301 Rakesh wants to buy a policy primarily for Risk Cover but at
the end of the term he wants to get at least some return.
Under which policy he will get these benefits

Endowment plan

Term insurance with Return of purchase price

Whole life plan

302 In what proportion is the cover in a Family Floater Plan


shared?
303 Who will maintain Mutual Fund Schemes?

25% each

15% each

50% each

Mutual Fund Management Societies

Mutual Fund Management Systems.

Asset Management Companies.

304 Which is the primary saving need among all saving needs?

Insurance

Purchasing House

Investment.

305 Mr. Rao has Rs. 10, 00,000 cash with him. He would like to
Insurance
use this amount for his daughters marriage which is going to
happen with in Nine months. He would like to get some
returns from this money in these 9 months period. What is
the best option to park his money?

Shares

Fixed Deposit in Bank

306 Which of the following avenues makes it easier for a person


to take a saving product?
307 Mr. Rajgopal has invested some money. He has been
informed clearly about the tenure, interest rate and method
of payment of interest at the inception of the investment
itself. His investment may be in.....

through individual agents

through internet

corporate agents

Life Insurance

Mutual fund

Shares

308 Which of the following cant be deducted under section 80 c


from taxable income?
309 Who act as an intermediary by offering a trading platform for
buying and selling of shares?
310 The Central Bank has recently announced the decrease in
interest rates. The prices of bonds are
311 Time deposit account is issued by:
312 Pankaj wants to save tax over and above the deduction
allowed under section 80C of the income tax act 1961, which
allows deduction from taxable income

Pension Funds

Public Provident Fund

Employee Gratuity Fund

Bombay Share exchange

Bombay Stock exchange

Stock brokers

Likely to increase.

Likely to decrease.

Will fluctuate.

Post office
Corporate Bond

Bank
Infrastructure Bond

Mutual Fund
Health Insurance

313 In which of the following Bank pays the Interest on the


deposits fund on monthly /quarterly /half yearly/ yearly
basis as chosen by depositor fund:
314 Vinod being an insurance agent can offer assistance to his
client Ramesh by:
315 The concept of Risk diversification is applicable in which of
the following instrument ?
316 Ajay bought a share for Rs.110 and he sold when it was
Rs.630.What had happened to his share?
317 A client wants to save up to buy an expensive car, but his
disposable income and future expected income estimates
make this desire unreasonable. An agent should clarify the
difference between
318 After paying premium of 5k the customer received a maturity
amt. at what rate will it be taxed ?.
319 As per new guidelines for a Sum Assured of Rs 1 Lakh what is
the minimum Annual Premium which one must take?

Saving Deposit

Cumulative deposit

Traditional Deposit

Providing him emergency fund.

Matching the product with Rameshs financial need.

Mutual Fund

Risk Diversified Insurance

Recommendation of product with


highest return.
Shares

Capital Appreciation

Capital Profit

Capital Benefit

Current & Future Needs

Financial & Non-Financial Needs

Identify and Quantify needs

nil

320 As per the income tax act how much total premium is
deducted from the taxable income under sec 80 c would be

0.1

0.2

20000

10000

50000

25000

50000 1lac

321 If the bank paid a cumulative interest in fixed deposit scheme Monthly
then what is a mode of interest paid

Quarterly

Half Yearly

322 In a fact find, it was found that a customer had provided for 6 High
months of expenses as emergency funds. Is it

adequate

Low

323 In a Unit Linked Insurance Plan, where the annual premium is 2 Lakhs
Rs.60,000, under the new guidelines, what is the minimum
life cover that a customer will have to take?

3 Lakhs

4 Lakhs

324 KVP is an ideal investment for what kind of customer

Monthly Investment

Annual Investment

Single Investment

QB-ENG-Page 25 of 54

Ulip
2
No Proportion

Asset Maintenance Company Limite4.

Contingency/ Emergency Fund.

Mutual Funds.
3

call centers

Bank deposits
4

Infrastructure Bonds

Share brokers

No change is likely.

Life Insurance co.


Interest paid on education loan

1
2

Fixed Deposit

Discourse saving in a purposeful and


need based manner.
Risk Sharing insurance

Capital Variation

Real & Perceived Needs


4
0.3
100000

2lac

Yearly

Inadequate

1
2

5 Lakhs
2
Monthly investment at regular interval

1
QB-ENG-Page 26 of 54

325 Suresh has transferred his physical gold to gold ETF. This will increase the liquidity

decrease the liquidity

attract tax at maturity

326 The investment performance of a customer's singe lump-sum Corporate Bonds


payment will reflect the performance of a wide range of
different securities under what type of product?

Kisan Vikas Patra

Mutual Fund

327 What period of time a client has to be invested to get tax


10 Years
benefit under postal scheme?
328 What is the amount of money a client can take out as a lump- One-tenth
sum from a pension policy?
329 Omkar Started a pension policy with provider A but ended up Commutation Option
in taking the annuity payment from provider B.The result
directly reflects which of the feature available in this policy ?

8 years

6 years

one-third

one-fifth

Differed Annuity Option

Guaranteed period option

330 Denny is married and has 2 children age 6 and 10. His
parents are alive and are 70 and 68. Who all can be included
under the family floater health plan
331 Critical illness rider was taken and the rider benefit has been
claimed , the rider benefit now gets
332 In a Guaranteed annuity option of 5 years , the policy holder
will get annuity till
333 What frequencies can one take in annuity

Denny only

Denny and his wife

Denny, His wife and children

Reduced the base SA

terminated

continues as it is

entire life term

till 5 years and continue till annuitant lives

annuity only for 5 years

monthly,quarterly,half yearly, yearly

fortnightly,quarterly,monthly,yearly

334 Why is there a waiting period in health insurance policies?

Pre-existing illnesses

Change in premium terms

fortnightly, monthly ,half yearly,


yearly
Nature of risk

335 How is No Claim Bonus is given in a Health Insurance Policy

By way of Cash Discount

Discount in Renewal Premium

Free Renewable

336 What is importance of Health insurance?

meet any medical emergencies

Major hospitalisation and treatment expenses

meet expenses post hospitalisation


due to loss of income

337 A person retiring within 3 months needs return as pension.


What kind of investment plan he needs to choose .

Immediate Annuity

Deferred Annuity

Anticipated Endowment

338 An individual need a lump sum at the age of retirement, the the deferment period
amount he need to invest annually for the goal will depend on

amount which required

investment tools used for investment

339 What are the Special features of Health plan?


340 What will be maturity benefit under health insurance plan

Covers disease expenses


Fund value

Helps in Tax Benefits


Paid premium

covers hospitalization cost


Paid premium with interest

341 Which is the suitable savings plan for a senior citizen

Term insurance plan

Money back

ULIP Plan

342 Claim Amount received under CIBR Rider ,can be spend for

Health Expenses Only

Household expenses Only

Unspecified reason

343 What could be the percentage of guaranteed return in all


ULIP pension plan.
344 A person has taken a term insurance of 4 Lac. What is the
maximum Critical Illness Rider he can take

0.06
1 Lac

345 commutation is a feature of which type of policy


346 Mr. Sharma buys a term insurance policy along with Accident
and Disability benefits rider. The rider cost would be
restricted up to what percentage of the base premium of the
policy?
347 Mr.Ramesh invested Rs:50000 in pension policy, what is the
percentage he can avail as exemption in Income tax.

annuity

348 Mr.Sumesh takes a policy and pays premium of 20000 with a


sum assured of 300000, what will be the tax implication on
his maturity amount
349 Yash wants to take open market option in Pension plan. What
is the benefit?
350 In rising life expectancy the need for pension policy is
increasing as retirement planning is
351 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

Fully taxable

0.085
2 Lac

3 Lac

joint life policy


0.2

0.045

pure endowment policy


0.3

0.4

0.3333 Pension plan is not eligible for tax exemption

0.1

0.2

save more tax

switch the underlying fund

improved annuity rate

Less expensive

Less Transparent

More necessary

self employed

Widower

Savings are significantly higher

QB-ENG-Page 27 of 54

reduces inflation

Recurring Deposit
3
5 years

half

Open Market option


4
Denny, His wife and children and
parents

will discontinue for 1 months

None of the above

None of the above

Cooling off period for insurers

Free increase in Sum Assured

All of the above

ULIP

All of the above

All of the above


No maturity benefit

Pension plan

to pay the further premium of base

0.1
4 Lac

3
4
1

policy of another person


0.5

2
will depend on his income slab

Tax fully exempted

To continue life cover

Tax efficient

Govt employee
1
QB-ENG-Page 28 of 54

352 While calculating pension figures, required at the time of


retirement, two factors should be considered while planning,
One is taxation and other is

Health

Charges

Inflation

353 A invested money in Sr Citizen scheme. What is the tax


benefit he receives?
354 Mr.Arvind has 2 children aged 13 & 15, he wants to buy 2
health plans, one for himself & one for his wife, what will you
recommend.
355 Which fund needs to be selected to receive a 4.5% guarantee
on Pension ?
356 With this type of deposit the bank pays the principal and the
total interest at the end of the term.

Amt will be deducted from taxable income upto 1


lakh
Family floater

Rs 1000 will be deducted

10% of the amt will be deducted

Health plan

Endowment plan

unit linked pension plan

traditional pension plan

POST OFFICE pension plans

Traditional deposits

Recurring deposits

Cumulative deposits

357 How riders will help the customer in life insurance?

allows policyholders to customize their insurance


cover with additional benefits
The daily amount paid is fixed and will never be
more or less than the cost of actual treatment.

rider is like a clause

Operative clause.

The insurance company may pay an additional


amount on a daily basis if the insured is admitted to
the Intensive Care Unit (ICU).

The insurance company will pay for


doctor consultation fees incurred prior
to hospitalization

359 Customer has opted for a 5 yrs guaranteed annuity option.


What will happen to annuity, if the customer survives for 5
years after the end of guarantee period?

paid up to 75 Yrs

annuity will be continued for next 5 Years

paid till he is alive

360 Which is correct in relation to Insurance Broker?

Insurance broker is represents insurance buyer and Insurance broker is represents insurance buyer and
remunerated by the insurance company
remunerated by the Client

Insurance Broker gets money from


both Insurance company as well as
from Client fo selling Insurance

361 In which plan weekly premium payments are accepted.

Health Insurance

Group Insurance

Micro Insurance

362 An elderly person wants to use tax efficient investment and


invests in senior citizen saving scheme. This will impact in
which way for him ?
363 What are the benefits to the policyholder Under Surgical care
rider?
364 A customer gets periodic benefits without any claim and then
when he dies during the term of the policy, his nominees gets
the sum insured. What type of policy is this ?

He will get tax benefit up to 5000

He will get tax benefit up to 25%

He will get a reduction in tax slab

Number of days admitted in hospital & surgery


expenses in full
Endowment

Number of days admitted in hospital & surgery


expenses in partial
Term

Treatment cost of surgery subject to


terms & conditions
Money Back

365 To identify suitable products with main features and their tax Agent
treatments is the role of:
366 The rider which is given by the Insurance company pays for
Critical Illness Rider
the treatment costs in the event of hospitalization of the
insured person is called
367 Customer has to pay the amount in regular intervals to create Collection Phase.
purchase price or Pension Fund. We call this phase as..

Insured

Policy Holder

Hospitalization Care Rider

Accidental Benefit Rider

Accumulation Phase

Pension Phase.

368 Some Health Plans will give coverage for family members
also. We will call these plans as..
369 Mr. Hitesh would like to get health coverage along with Life
Insurance. What are the options available to Mr. Hitesh to
fulfill his need with a little cost?
370 Which of the following is not a feature of WOP rider?

Total Protection Policies.

Family Floater Health Insurance Plans.

358 In Daily hospitalization cash benefit scheme,

Family Health Insurance Plans

Taking Life Insurance plan with Critical Illness Rider. Taking Health Plan, Insurance Plan separately.

This rider is ideal for helping to prevent a policy


lapsing due to non-payment of premiums due to
death or disability
life annuity

The main strength of WOP is the


payment of full sum assured.

When Mr. Ranga is diagnosed a critical illness

When Mr. Ranga's family member will


be in critical illness

Blindness

Paraplegia

Coma

Guaranteed period annuity

Life annuity

Deferred Annuity

The rider waives future premiums in the event of


the disability or death of the policy holder.

371 Mr. Ramakant is 35 years old. He has bought retirement plan immediate annuity
for 20 years. This type of pension plan is known
as..................
372 Mr. Ranga has taken Critical Illness Rider. In which of the
When Mr. Ranga dies due to critical illness
following scenarios the insurance company will pay him......
373 Which one of the following cannot be covered under Critical
illness rider?
374 Mr. Yash has taken an annuity on 25th August 2011 The
benefit of the plan will start from 25th August 2011 What
type of annuity plan is this?

Taking Medi-claim plan with Life


Insurance.

QB-ENG-Page 29 of 54

deferred annuity

Interest rates
3
20% of the amt will be deducted
Term Plan

BANK
Term Deposits

Rider is like Preamble.


Only surgery expenses are included in
daily hospitalization benefit

Will stop after 5 years guaranteed


period is over

1
1
1
3
1

None are correct


1
Macro Insurance

His investment would be deducted from


taxable income

Lump sum amount what he has incurred

Whole of Life
3
Insured person
Surgical Care Rider

Primary Phase.

1
2

Family Rakshak Health Plans.

Taking Hospital Benefit Plan with


Endowment Plan.

WOP rider can be offered with all plans

joint life annuity

4
3

When Mr. Ranga dies due to severe road


accident.

Brain Surgery

Immediate annuity

QB-ENG-Page 30 of 54

375 To avail the income tax benefit at investment stage, premium 10% of S1.
should be maximum
376 The savings needs of a particular individual is largely
Amount of disposable income.
determined by?
377 While calculating the expected returns from investments and Taxation only.
savings, an individual should make provisions for

20% of SA.

30% of SA.

Current assets.

Current liabilities.

Inflation only.

Taxation & inflation both.

378 The general need for purchasing a health insurance plan at an The premium decreases with increasing age.
early age results from which of the following factors?

The premium remains constant with increasing age.

The premium may increase or


decrease with the increasing age.

379 The life expectancy in India is constantly improving and is


Equity.
well above 60 years. This also brings along health challenges.
These health challenges can be covered through

Bank fixed deposits.

Health insurance plan.

380 Due to some medical problem Neeraj got hospitalized and


insurance Company paid him a fixed amount on daily basis,
what kind of health Policy he bought it?

Group health insurance

Family floater Insurance Plan

Individual health insurance plan

381 Which of the following is not a feature & benefit of rider?

Providing additional cover

Maturity benefit

Nominal cost & flexibility

382 Health insurance policy holder takes treatment in a hospital


Need to spend and Get claim from the insurer
which doesnt have cashless facility. How the policy holder
will get benefited
383 Which of the following is true regarding Family Floater Health A Family Floater Plan is the same as a Individual
Insurance Plan?
Plan

Need to add that hospital as TPA

Need not to claim

Only self and spouse can be covered in this plan

Any number of people may be


covered in this plan.

384 Family floater health Insurance plan covers


All members of a Family
385 One person wants to take term plan for 20 lakh and wants to Needs to take experts suggestion
take ADB rider, he is not sure of how much sum assured he
needs to take for ADB rider. What is your suggestion?

Husband and Wife only


Equal to base cover

Parents only
Any Amount he can take if he is ready
to pay premium

386 A customer has taken a Term Plan of Rs 4 Lakh what is the


max SA of Rider which can be taken
387 In Group health insurance plan the insured are
388 In Harish's Policy commutation option is being used, what
kind of policy is this
389 Mr. Krishan & Mr Mohan bought health insurance product and
are paying the same premium. Krishan is getting tax benefit
for higher premium than Mohan. What could be the reason
for it
390 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

Rs 1 lakh

Rs 2 lakh

Rs 3 Lakh

close relative
Annuity Plan

fellow employees
Joint life

friends
On the others life

krishan is married & mohan is not

Mohan is married and krishan is not

krishan is NRI and Mohan is resident


Indian

Commutation Option

Differed Annuity Option

Guaranteed period option

391 To comply with the Insurance Regulatory Development


Authority Regulations , the premium for a health -related
rider is limited to what maximum proportion of the base
premium of a term Insurance policy.
392 What is the Cash Value which can be taken from Pension Plan
at vesting that is tax free would be ?
393 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 travelling and a
savings plan. What suggestion would you give him as an
agent?
394 In which of the recognized life stages an individual does not
required any protection cover
395 Why need do self employed people have to buy medical
insurance than that of a person employed with a public sector
company
396 A family consisting of husband,wife and two children aged 6
and 10 . what kind of insurance plan can be suggested ?

0.25

0.5

0.75

One -fourth

One -third

Half

To purchase an accidental rider with a savings


insurance plan.

To purchase a health plan along with a savings


insurance plan.

To save through fixed deposits in


bank.

Childhood

Young Married

Pre Retirement

Public sector employees do not get sick very often

public sector employees enjoy medical cover related


to the Job

Self employed person fall sick quite


often

Protection plan

child plan

Saving plan

convertible plan

pension plan

397 Rajiv is married & has 4 year old son. Which insurance plan is Child plan
suitable for him?

QB-ENG-Page 31 of 54

40% of SA.

Duration of investment.

No provision is require4.

The premium increases with increasing


age.

Savings insurance plan.


3
Daily hospitalization cash benefit plan
4
Customization and tax benefit.

Need to switch to the another insurer

The insurance cover is shared amongst


the family members in no fixed
Proportion.
Children Only
50% of SA max.

4
1
4

Rs 4 lakh

not known
Term policy

2
1

Krishan is above 65yrs of age and


Mohan is below 65yrs

Open Market option


4
1
4

Nil

To purchase a medical plan.


1

Retirement

Self employed person give more


priorities to health

All of the above

ULIP Plan

4
1
QB-ENG-Page 32 of 54

398 Samir is married and he has only one partner, with dependant income protection
parents and no child, which should be his priority

inheritance planning

investment efficiency

399 The sole focus during a clients fact-find session was


Young married couple
healthcare requirements and estate planning. Which main life
stage is he most likely to fall into?
400 The main protection need of a 19-year-old is most likely to be self-protection.

Young married with children.

Pre-retirement.

home loan protection.

protection of Dependants.

401 With profit policies can be given to


402 In the context of financial planning, how is the difference
between real needs and perceived needs best described?

surety
keyman
Real needs are financial needs and perceived needs Real needs are actual needs and perceived needs are
are non-financial needs.
based on a clients thoughts and desires.

partner
Real needs are identified by the
insurance agent and perceived needs
are identified by the client.

403 If a person is concentrating more on health plan and


retirement plan then at which stage of life is he in.

Young unmarried

Young married

Young married with Kids

404 Suresh has adequate reserve capital with him and he wishes Term Insurance Plan
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?
405 Manish and Manisha is a married couple with one child. They RETIREMENT.
want to plan for savings, child education/marriage and their
retirement and protection of income. Which should be their
lowest priority?

Endowment plan

Return of premium plan

Savings.

Education.

406 Mrs. Sheela received some amount out of her husbands


death. In such a situation what will be her prime focus?

buy High return Investment plans

Buy protection

manage the asset and preserve it

407 A Professional insurance market carries..


408 Perceived needs are those which are .

Need Based Selling


Short term needs.

Product Based Selling


Imagined to be important by Advisor.

Commission Based Selling


Imagined to be important by client.

409 Need analysis involves identifying

Financial provision to meet predictable and


unpredictable needs.
the surplus amount that can be invested

Capacity to pay the premiums in future.

Existing insurance plans.

the amount that can be paid towards one's EMIs

the annual bonus amount

411 Mr. Shanth is in his early 20s and has just started earning.
high
His risk appetite is expected to be.....
412 The younger the age of an individual..............their liabilities the lower
will be.
413 Mr. Ramachandra's son Mr. Bharat has just employed as a
Pre-retirement stage
software engineer, daughter Anusha has got married. Now Mr.
Ramachandra is free from his burden. So Mr. Ramachandra is
now in the ...................stage.

low

normal

the higher

the smarter

Post retirement stage

Married with older children stage

414 Mr. Vinod has lot of inconvenience to reach office every day.
So he wants to buy an expensive car when he will have
sufficient fund. Here Mr. Vinodh's need is.............

Real need

Perceived need

Imaginary need

415 Fact finding enables the insurance advisor to identify


the.............
416 Which are the two primary needs of any customer in any
point of life?
417 The concept of need based selling involves

clients financial need

clients personal problems

clients hereditary diseases

Investment and retirement

Investment and Protection

Investment and savings

Selling what company wish to sell.

Selling what adviser wish to sell.

Selling what customer requirement is.

418 For his investment need, Ravi has parked funds in equity. The High Risk.
returns from this form of investment can be categorized as

Low Risk.

Moderate Risk.

419 Vijay, aged 30 years and married, is the sole bread winner for Retirement need.
his family. He is saving enough with banks. As an agent,
which need you prioritize first?
420 As an adviser why is it essential for you to carry out the
Individuals understand their real needs and can
financial planning exercise with the prospective clients?
prioritize them.

Tax planning need.

Financial security need.

Individuals have same financial needs at different


stages of the life cycle.

Individuals do not understands their


real needs and cannot prioritize them.

When both the life partners are earning members of


the family.

When the income of a family is just


the double of income of another
family.

410 The disposable income means......

421 What do you mean by Double Income Family?

When a person of the family is involved in double


businesses or jobs.

QB-ENG-Page 33 of 54

long term savings

Retirement

protection of childrens future.

Individual
Real needs are needs which satisfy an
objective and perceived needs are
needs which do not satisfy an objective.

Pre retirement

Pension plan
2
Protection.
1

Plan for pension

Company Based Selling.


Long term needs.

Family and Employment details.

the sum of one's all investment

Neutral.

the superior

Employment stage
1

Important need
2
Clients social background.

Investment and life needs

Selling what IDRA wants company to


sell.
No Risk.

Asset building need.

Individuals real and perceived needs


are same.

When the members of a family do not


work at all.

QB-ENG-Page 34 of 54

422 In which of the following case there is no defined retirement


age?
423 Which one of the following is true?

Public sector employees

Private sector employees

Professionals & Businessmen

Every individuals income and expenditure pattern


is same.

Every individuals income and expenditure pattern is


different.

An individuals income and


expenditure has no relation.

424 Ajay 28 years old has spouse and two children , before opting Health Insurance for Spouse
for Health Insurance Plan Which other need he need to take
care of?
425 Mr. X fact find shows he need a term insurance for his future Term Insurance
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

Health Insurance for child

Protection plan for spouse

Medical Insurance

Children's Policy

426 Benefit Illustration given to a customer quantifies an amount


by which investment return is reduced. This reduction reflect
the impact of
427 Fact Find Process helps to

Charges

Interest

Inflation

Ensure a sale is achieved

Identify Client need

428 A Person Need to do Estate Planning would be in which period


of his life stage
429 A plan suggested by an agent should be based upon which of
the following ?
430 In a fact find, a couple discovered their need to be estate
planning? In what life stage will they be in?
431 Mr. Prasanth 25 Age has a Government job & he is Unmarried
how many years policy can be given
432 Sanju & vikram are both 22 yrs old. Sanju has dependent
parents and vikram has no dependants. What will be sanjus
preference over vikrams preference?

Young Person

30-40 years age group

Create an audit trail for future


complaints
Married

A Plan based on needs to the Client

A plan based on paying capacity of the client

A Plan based on the clients dreams

Married

Married with children

Married with older children

Short term

long term

Medium term

Investment

Health Insurance cover

Life insurance cover

433 A Couple has 7 years old son, What solution would they be
Retirement
looking for
434 The commission payable in a ULIP plan to the Advisors is
Benefit Illustration
mention in...
435 An agent has recommended an investment product with non- 5% and 8%
guaranteed benefits. The benefit illustration passed to his
client will therefore use assumed annual growth rates of

health care

child education

Premium receipt

Product Brochure

5% and 10%

6% and 8%

436 The rates of assumed annual growth to be shared in the


IRDA
benefit illustration has been decided by which of the authority

Life insurance council

The Royal Bank

437 While recommending a solution to the client, the advisor


should, establish the link between, client needs and

Advisor need

Product features

Client income

438 A 38 year old married with 2 children, her husband dies and
left huge legacy behind. What should be top priority?

estate plan

loan protection

pension

439 A young couple wants to invest for their daughter, and their
term plan
income will increase with time horizon and suggest
investment plan?
440 During fact finding, What will be the next step after
Quantify clients need
Identifying clients need
441 During a fact finding process the need analyzed were income Do the fact finding exercise again
replacement and childrens education. But the customer
insists on only a child plan for the time being and asks the
agent to give him a child plan. The agent should.

endowment

annuity

Priorities Clients Need

Recommending Product

Insist with the client to take a term plan

Give a child plan and revisit the client


on a later date

442 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?

Term Plan

Endowment Plan

443 What should an agent do in order to understand the mental


Fact finding
state of client in respect to his investments in saving products

Consulting the clients parents

Consulting the family of the client

444 Which is the best option to manage risk?

Transfer

Avoid

Money Back

Retain

QB-ENG-Page 35 of 54

All of the above


An individual should not keep in mind
his income while planning his
expenditure.
protection plan for self

3
2
4

Endowment Policy
1

Taxation

Provide regulatory body about agents


data base
About to get retired

None of the Above

Retirement

Plan cannot be given

No preference
3
life cover

Proposal Form

6% and 10%
4
SEBI

Client expenditure

wealth creation

flexible Ulip plan

Fill up the proposal form

4
4

Give the lead to another agent


1

ULIP
3
Reviewing his existing investments

None

4
1
QB-ENG-Page 36 of 54

445 Naveen, aged 32 years, has taken money back plan. He is a


teacher by profession. Naveen referred Prasad to Ram.
Prasad is also teacher. Ram who is an agent advised Prasad
to take money back plan as he is of same age (33 years). Is
it the right advice? Why?

Yes, as Naveen and Ram are of same age.

446 Mr. Govind, Advisor with ABC life insurance company find out Young Unmarried.
one client is seeking solutions for health care and inheritance
planning. Which main life stage he most likely to fall into?

No, customers needs are different

Yes, as both are teachers

Young married with children.

Retirement.

447 Which type of questioning is very useful to gather information Closed Ended Questions
Open Ended Questions.
from clients?
448 During the recommendation stage the advisor needs to......
recommend the products that best meet the client's recommend to wait some days to invest
needs

Interrogative Questions.

449 Insurance Protects which of the following?


450 Mr.Mohith, an agent was explaining to his customer the
guaranteed benefits of the product. Which one of the
following documents he would have used to explain the
same?
451 Mr.Harsha an agent wants do a thorough 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 of Kishan?

The life of the person paying compensation


Fact Finding document

The risk retained person 's family


B.KYC document

The financial goal of the insured


C. Benefit illustration document

Clients Profits and Withdrawals from business

Clients Expense statement

Clients business details

452 During the fact finding session as an agent you should follow
which one of the following process?
453 Objectives of fact-finding do not include-

Prioritize, Identify & Quantify Needs.

Identify, Quantify & Prioritize Needs.

Quantify, Identify & Prioritize Needs.

Identify needs

Gathering client data

Provide for anticipated changes

454 Which one of the following documents distinguishes between


Guaranteed and non-guaranteed benefits?
455 What key impact will the agent have in low persistency

KYC documents

Benefit illustration documents

Fact-finding sheet

Increase more business

Increase in the agents earning

Will improve reputation

456 In which one of the following statement an agents


commission will be disclosed to the customer ?
457 A low persistency ratio for the insurance company means
that:

Customer Statement of the product

Benefit illustration of unit linked product

The customers are satisfied with the products

The company is acquiring more business and new


customers

458 Venu, aged, 32, had a Insurance cover of 10, 00,000/- . He


was approached by an advisor who made some analysis and
told him that his Insurance need is higher than 10, 00,000
and suggested that he surrenders the existing policy and
buys a new one. This is an example of

Churning

Proposing

Benefit illustration of endowment


product
A large numbers of policies have
lapsed / surrendered resulting in loss
of profit
Underwriting

recommend the new product the


company has recently launched

459 The best way to prove that customer of a ULIP policy is given Ask the insurer to give a policy endorsement letter
awareness about the commission paid to the agent would
be ?
460 An agent reveals the commission received from Insurance
Only X has bought other product from the agent
sales to X and Y. Both are for the same duration. Why is
commission of X far higher than commission received for Y

From the fact details

From signed copy of benefit


illustration

Only Y has a Single premium Product

X is married and Y is Single

461 An agent should disclose the commission if


462 Nikhil explaining ULIP plan to a customer doesn't know
answer of a doubt regarding the product that the customer
has. What should he do?
463 Churning is considered bad for a customer. Why is it?

the commission is low


Ask the customer to check it himself

the commission is high


tell him what ever he thinks

Customer asks for it


Refer to the product brochure

Impact of charges on customer fund

Higher commission to advisor

Customers get new plans

464 Churning is bad , based on which aspect

Agents earn Lower Commission on churning

Policyholder gets more benefits

465 What would Higher persistency to the insurer ensure?

More productivity

Higher attrition

Policyholders suffer due to surrender


charges and benefits
Higher Profits

466 Persistency has increased from 82 % in previous year to 86


% this year .This indicates which key reason ?

more lapsation

more attrition

less lapsation

467 A satisfied client will lead to

Word of mouth publicity for the agent

Chances of up selling

468 An Agent can receive maximum of ________ %of the


premium as commission in the first year

Thirty Percent

Twenty percent

More reference generation for the


agent
Thirty Five Percent

QB-ENG-Page 37 of 54

No, as there is an age difference.


2

Children.
3
Clarification Questions.

Recommend to take his own time to


take a decision.

The life of the nominee


D. Client benefit document

3
3

Clients business records


1

Prioritize, Quantify & Identify Needs.

Surrendering the existing policies for


selling new one
Financial details

Will have impact in his commission.

Customer data sheet with the product

The company will not declare bonus

Switching
1

From ticked columns of proposal form

Y is young
2
customer not asks for it
must not shown any interest in the
doubt

Agent will get angry and would not give


service
Insurance companies get good branding

Higher S.A

No profits

All the above

fifteen percent

3
QB-ENG-Page 38 of 54

469 Customer asks the agent to disclose the commission . The


agent should
470 If Sales Target get reduced then Churning will
471 Advisor motivates the client to surrender the existing
Endowment plan and buy new Whole life policy for gaining
higher commission. This is an example for ?

disclose on demand

Not disclose

Should call up the Insurer

Increase
switching

Decrease
Building long term relations

Will not affect


Revisit the financial planning

472 Sometimes an agent resorts to churning his /her customers


existing plans , without keeping the customers needs in
mind . This would be done for what reason ?

Avoid a customer complaint

Minimize paper work

Service the customer

473 What are the key aspects of advisors do for better


persistency?
474 If the client does not wish to proceed with the
recommendations right at the moment the agent should

Selling product as per need & policy servicing

Surrender

Insist on taking the product right away

Should ask for the reason for not going with the
recommendation

Selling products having higher


Commission
Should ask for a future date from the
client

475 According to Insurance Brokers Association of India, what is


the most appropriate relationship between Insurer and
Broker?
476 Naresh is married and his daughter Sneha is 3 years old.
Which plan can he take?
477 What is the factor which has influence on persistency?

Insurance broker represent the client and the


insurer remunerate the broker

The client represent the broker and the insurer


remunerate the broker

Insurer represent both client and


broker remuneration

Term & Children Plan

Annuity Plan

Whole Life Plan

Role of Agent

Product Design.

Policy Servicing

478 Agent who is a licensed intermediary is actually is ?

A legal person to act on behalf of the re-insurer

A legal person to act on behalf of the insurer

Regular reminders about the premium to the


479 Which one of the following factor does not help in the
Persistency ?
customer
480 After undertaking financial planning exercise, the prospective Objection handling skills.
client said that he does not have funds for investments. To
resolve this query, which skill of an agent would be tested?

Flexibility of Premium payment to the customer


Listening skills.

A legal person to act on behalf of the


contract
Dispatching Discharge voucher to the
customer
Communication skills.

481 When client declines the recommendation by the insurance


Persuade the client to purchase the policy.
adviser even after resolving the concerns, the adviser should

Should ask for reference who might be interested in


financial planning.

Should never approach the client ever


again.

482 Amit & Rashmi are newly married. Both are working couple. Ruining the long term reputation of company.
They want to invest their savings of 100,000 annually to build
corpus to make down payment for their house 5 years from
now. An adviser sold than a unit link product to meet their
requirement. This may result in

Opportunity of new business for adviser.

Bad reputation of the individual


adviser.

483 Under which one of the following acts the maximum


remuneration that can be given to insurance agents
described?
484 Which one of the following is not a benefit of persistency?

Income Tax Act

Indian Contract Act

Insurance Act 1938

Helps the client in achieving goals

Reduction in costs

Increased client satisfaction

485 Why building long term relationship with clients is necessary? A satisfied client may be the source of other
potential clients

Reviewing financial needs and plans are necessary


with changes

486 An insurer showing continuously low persistency then its


impact on front cost of policies will be
487 From which document , the client can check the agent
commission
488 if an insurance agent churns the policy the main reason for
this action is likely to be the desire to
489 NRI is classified in which category as per the KYC guideline?

Higher

Lower

Agent has the option to


recommending highest commission at
any time.
No change

EBI

policy document

prospectus

Avoid customer complaints

Minimise administrative paper work

Obtain value for money

High Risk

Low Risk

Average Risk

More Commission has been paid

Less no of Policies
Lapsed/Surrendered

490 Persistency of an Insurance Product has increased from 82 % More policies lapsed/surrendered
in previous year to 86 % this year . It means that
491 Under KYC Regulation, What is Max amount of cash client can
deposit
492 What is direct impact on advisor if there is low persistency
Renewal commission will decrease
ratio in policies ?
493 A claim intimation leads to the publishing of an advertisement Policy is assigned
in the newspaper. This means

10000

15000

25000

commission will increase

Low cost to company

Policy document is lost

Policy is in lien

QB-ENG-Page 39 of 54

Should avoid the topic

Partially
Churning

2
4

To earn extra commission


4
Not keeping in touch with client

Should review once again

Broker only service the client

Health Plan

All of the above.

An authorized agent to act on behalf of


the legal company
Continuous servicing of the policy

2
3

Client information gathering skills.


1
Should do nothing.

Financial burden on the couple.


1

IRDA Act 1999

Decreased revenues

Introduction of a new insurance product


or a change in a clients Circumstance

no impact

proposal form

Receive extra commission

No Risk

No Bonus Declared

3
50000

Agent can do more policy

Any one of the above

QB-ENG-Page 40 of 54

494 Ajay has bought an endowment insurance plan with a cover


of Rs. 10, 00,000 for a term of 15 years. Ajay died after 3
years. Insurance company will not treat this claim as
________ claim.
495 If a person is missing then after how many years will he be
considered as dead & SA paid to the nominee.

Normal

Fraudulent

Early

10

Death Benefit will be the amount with highest SA


496 What is the death benefit if the person has multiple sums
assured under different policies?
policy
497 Client died in 89th day from DOC. In which category he is not Murder
eligible for claim . What could be the reason ?

No amount will be paid


Deep Illness

Sum of all SA in different policies


would be paid
Accident

498 Mr. Customer has taken a policy and died before receiving the Entitled for full claim
document which was dispatched by the insurer.

Entitled for partial claim

Not entitled

499 In a claim, the customer got much more than the Sum
Assured. Why?
500 Without submitting any form of claim, a life insurance policy
holder received payments of maturity then what type of
policy he is holding
501 If a person is absconding then after how many years will he
be considered as dead & SA paid to the nominee.

it was a with profit plan

Investment Frequency

Nature of Death

ULIP

Term

Money Back

10 years

20 years

7 years

502 No of days in which the death claim has to be paid after the
necessary documents have been received
503 Mr.Suresh dies one day before the grace period without
paying the premium, what is the claim payable

15 days

30 days

45 days

No claims payable

All premiums paid

Sum assured

504 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%
505 What is the maximum Time in which The insurer should settle 3 days
a claim when all documents are submitted

0.07

0.085

0.072

15 days

30 days

506 During claim insurer deduct Rs. 10,000 in spite of having no


Lien and all due premiums are paid. What are the other
reason for deducting the same?
507 In case of confirmed accidental death, the benefit is paid in
the form of
508 Under Indian Evidence Act 1872, after which year
presumption clause will apply if the person is not heard of

Premium Rate increase

Loan facility

Mode of Payment

Life time annuity

Lump sum sum assured plus accidental sum assured

Sum Assured

6 years

7 years

10 years

509 A claim was paid in a policy and it was advertised in the


newspaper also. This indicates that the policy was.

It was assigned.

It was paid up.

It was lost.

510 An indemnity bond was signed in a policy when the claim was It was lost.
paid. This indicates that the policy was.
511 Which of the following falls under voidable contract?
Misrepresentation

It was paid up.

It was lapsed.

Lack of insurable interest

Fraud

512 Generally insurance companies do not hold the premium in


case of a fraud or misrepresentation. However, due to which
of the following circumstances the insurer can retain the
premium of the policyholder

Fraudulent claim

Indisputability clause

Redressal procedure

513 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
..
514 Prashant buys an Endowment Plan with a sum assured of Re.
100000 and wants to make use of tax benefit under the
policy for whole SA. How much premium would help him avail
this benefit
515 Vinay doesnt 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 ______
516 What is meant by a claim under insurance policy?

Consumer Forum

COPA

Sebi

Less than 10000

More than 10000

Less than 20000

Transfer

Control

Retaining

A demand to fulfill the policyholders obligations.

A demand to fulfill the insurers obligations.

Any demand made by the policyholder


on the insurer.

QB-ENG-Page 41 of 54

General.
3
12

Not more than 20lacs

2
3

Suicide

Return of Premium

Survival Benefits

Health

12 years

60 days

Sum Assured less the undue premium

0.082

10 days

Loading

Lump Sum plus life time annuity


12 years

It was surrendered.

2
2
2

It was surrendered.

None of the above

Pending decision from Ombudsman


2

Life Insurance Council


2
More than 20000
3
Avoidance
3
All of the above.

2
QB-ENG-Page 42 of 54

517 Who will take the initiation to settle the maturity claim
process?
518 Which is the right statement regarding claim enquiry?

Client

IRDA

Advisor

The insurance company makes enquire only on


death claims.

The insurance company makes enquire on maturity


claims only.

Enquiry will be done on both Maturity


and Death Claims.

519 Mr. Chintamani has taken a policy from ABC Company on 2nd Normal death claim
March 2010, but unfortunately he died on 18th August 2011
His death claim is considered as..........

Early death claim

Abnormal death claim

520 Detailed Investigation will be triggered in case of......

Maturity claims

All death claims

Early death claims

521 In the process of settling maturity claims....

the company will wait until the claimant comes to


office to demand the claim

the process is initiated by the company well in


advance of the maturity date

it is the responsibility of the claimant


to approach the company

522 Mr.Feroz has taken policy for critical illness worth Rs.1 lakh in claim of critical illness and 10 lakh from term policy claim of hospital charge Rs 20,000 and 1 lakh for
health policy. He also has a term plan worth Rs.10 lakhs.
will be settled
death will be settled
Mr.Feroz was hospitalized after he was detected with
cancer .Unfortunately he died after 3 days of treatment. How
the claim will be settled?

Claim will not be settled as he died


due to cancer

523 Mr. sham had taken a term plan in 2008 . He died of cancer
Claim will be rejected
in 2010 Investigation about his death revealed that he was
deducted cancer in 2000 What will happen to his death claim?

Claim will be settled as Cancer was not deducted in


2008

Claim will be settled as he died in


2010

524 Mr.Baskar had taken a Term plan for a sum assured of Rs. 7
Total 7 lakhs will be paid as death had taken place
lakhs. He also has an ADB rider worth Rs. 4 lakhs.
Unfortunately Baskar died in a car accident. How much will be
the death claim settlement?
525 Mr.Sampath has taken a policy on January 10th 2006 for a
Eligible for claim as the premium was paid from
term of 12 years. Due to financial instability he discontinued 2006 to Dec 2010.
to pay the premium from 201 He died on August 13th 201
What will happen to his death claim ?

Total 4 lakhs will be paid as death had happened due


to car accident

Total 11 lakhs will be paid

Not eligible for Claim settlement

Claim will be settled after deducting


the unpaid premium

526 The agents duties and responsibilities ends

When the clients policy is issued.

When the clients needs have been established.

When the nominee has changed.

527 Insurer will not pay the claim unless

The policyholder makes a demand.

The nominee makes a demand.

The event insured against happens.

528 Aman has taken a term plan for 20 years. In the 3rd year he
suffered financial crisis due to which he was unable to pay
premium within grace period and died after 1 month. The
nominee files a claim and is rejected because

The policy was not in force.

This condition is excluded in the policy.

The claim is fraudulent.

529 When a policy is lost, insurance company take utmost care


The claim may not be genuine.
while settling maturity claims because
530 Pranab is not able to pay premium for continue his policy due In to paid up and reduced Sum Assured would be
to some Financial problem, so he rather than surrendering
payable on maturity.
the policy, what Option he has to convert .?

The policy may be pledged.

The facts were misrepresented.

Return of Premium on maturity

Deduct the underpaid premium from


Sum assured and payable on Maturity

531 Ajay has bought an endowment with profit plan for 20 year .if only Sum assured
he took a Loan after 5th of commencement of policy and died
before 2 year of Maturity .what would be payable on
maturity?
532 Under what kind of Rider the insurance company pays the
Accidental death benefit (ADB)
treatment cost in the event of hospitalization of the insured,
subject to term & Condition of the rider.

Sum Assured + Bonus

Sum assured plus vested bonus minus


any outstanding loan/premium &
Interest.

Critical illness (CI)

Hospital Care (HC)

533 Which one of the following report is not considered in case of Police first information report.
Pankaj Bought a plan in 2009 & died in road accident in
2011 :
534 At the time of death claim within how much time insurance
30 days
company can ask for any documents which they require to
verify ?
535 Following the death of a policyholder, Rs.10000 was deducted Commutation
from the claim. The policy did not have a lien and all due
premiums had been paid. Why was the deduction made?

Advisor confidential report

Post Mortem Report.

15 days

45 days

Lack of insurable interest

Loan

QB-ENG-Page 43 of 54

Insurance company

Enquiry will be done if death happens


before one year from policy inception
date.

Unnatural death claim


2
Rider benefit claims.
If the claimant does not come within a
month the entire maturity amount will
be forfeited.
Claim will be settled as per the
instructions of underwriter

3
2

Claim will be delayed


1
Total 7 lakhs will be paid without any
deduction.

Claim will be settled after the deduction


of unpaid loan amount

When the maturity/claim is settle4.

The insurer completes the enquiry.

The claim is an early claim.


1

There is no nomination.

Policy was subject to lien.


1
Paid up value only.
3
Term Rider.
3
Coroners Report

60 days

Premium Rate Increase


3

QB-ENG-Page 44 of 54

536 Death claim is delayed due to investigations which were to be


made. If at that point of time the bank rate is 5.2 % then
what would be interest rate paid by the insurer to claimant on
the claim amount
537 if the person is missing and the insurance comp is waiting for continued to be paid
the court to issue a decree of death. Then the premium
payment needs to be ?
538 There is claim recieved by insurance company which is very
15 days
complex in nature and need investigation. What is max time
given by regulator to insurance company for investigation ?
539 When a policy is lost, Insurance company take utmost care
while settling maturity claim because
540 To prove ones identity in accordance with KYC process, the
customer needs to submit following document excluding
.?
541 License of candidate passing insurance exam is valid for ___
years?
542 The controller of insurance in India is
543 Who is regulating Advisor's Licensing
544 If the policy is endorsed under MWP Act - then the
beneficiaries are wife and ?
545 Consumer Forum at district level will hear complaints up to
546 Mr. ABC cleared the IRDA exam on 2010 got license but he
did not work , In which of the year again he will apply for
insurance license?
547 Who is regulatory body of money laundering in insurance
sector?
548 If a case is already before the consumer forum, then the
ombudsman should
549 Indisputability clause can be enforced by the insurance
company during the
550 Ashish is looking at different plans of insurance for protection
at the lowest premium. Which is the best plan for him?

0.067

0.077

0.072

discontinued

the company can waive off the


premium

30 days

3 months

The Claim may not be genuine

The policy may be assigned

The fact was misrepresented

An Age Proof

An Identity Proof

An Address Proof

IRDA
IRDA
parents

RBI
Insurance Act 1938
ex wife

SEBI
LIC Act 1956
children

20L

40L

1Cr

2013

2014

2015

SEBI

RBI

IRDA

Give a recommendation

Give a joint decision with the consumer forum

Dismiss the case

First five years of policy

First Two years of policy

Claim

Term plan

Endowment plan

Whole life plan

551 What is the major reason for conducting fact finding exercise? Need analysis

Understand about company

Introduction of agent

552 The guidelines for annual assumed growth rate are given by

Life Insurance Council

IRDA

Actuaries

553 Pricing element is done by


554 Which is the not part of KYC norms?
555 Remuneration to Agents includes

IRDA
Photographs
First Year Commission

Insurance Company
Proof of identity
Renewal Commission.
Placement
to his nominee

Life Insurance Council


Proof of address.
first year as well as renewal
commission
Integration
will stop automatically

Section 42 of the insurance act 1936

License section of Insurance act 1938

556 Which is the 2nd stage in Money Laundering?


Layering
557 In the case of agent's death, the commission payable will be his legal heirs
paid to.........
558 Which one of the section deals with the licensing of an agent? Section 42 of the insurance act 1938
559 Mr.Varun taken up his agency in July 5th 2000 His lost his
IRDA license while travelling. His agency has also expired.
What is the solution for Mr.Varun ?

Need to complete 25 hours of practical training and Need to complete 50 hours of practical training and
paying Rs.50 for the issuance of duplicate license
paying Rs.100 for the issuance of duplicate license

Need to complete 25 hours of


practical training and paying Rs.100
for the issuance of duplicate license

560 Under Married Womens Property Act, 1874 a policyholder is

The Life Assured.

The beneficiaries.

The trustee.

Designated Person.

Branch Operations Team.

Married Man

Married Son

561 Who has the authority in insurance company to issue/cancel Insurance Company.
the agents license
562 Married Womans Property Act 1874 provides that a life
Married Woman
insurance Policy that has been taken out by:
563 As per Anti Money Laundering guidelines, premium deposit in
cash is maximum allowed upto
564 Which institution was incorporated by the Insurance Act 1938 Insurance Institute of India
565 Who controls and regulates the rates,advantages ,terms and
conditions of general insurance business
566 If IRDA is unable to discharge its functions or duties, Central
Government

10000

20000

25000

Insurance brokers association of India

Life Insurance Council

Insurance regulatory and development authority

Reserve bank of India

Tariff advisory committee

Has the power to supersede the IRDA by issuing


notification.

Has the power to supersede the IRDA by issuing a bill Has the power to supersede the IRDA
in parliament
by issuing draft

QB-ENG-Page 45 of 54

0.082
3
optional to the nominee to pay or not to
pay

6 months
4
There is no Nominations

Education Proof

4
7

2
1
2

Insurance ombudsmen
None of the Above
mother

10L

1
2016

TRAI

Give an award.

Inception of the policy

Money back plan.

Understanding the Customer

Underwriter

CII
Lapsed policy details.
Salary and Reimbursement.

2
4

Amalgamation.
Paid in lump sum to the survivors.

License section of insurance agent act


1938
Need to complete 50 hours of IRDA
training and paying Rs.50 for the
issuance of duplicate license

The administrator.

Actuary.

Married Daughter

50000

National Insurance Academy

Insurance Institute of India

Can make changes in IRDA law

1
QB-ENG-Page 46 of 54

567 Which is the training institute for providing training to


insurance agents?
568 What is the eligible age for applying for agents license in
insurance company ?
569 Board of Insurance is related to
570 basic criteria of agent would be ?
571 Investment by foreign direct investors in to Insurance co's is
restricted to
572 What is the role of National Insurance Academy?

Insurance Institute of India

IRDA
16

SEBI
sound mind & graduate

RBI
15

IRDA
sound mind & good income level
0.12

18
Insurance Association
Age and income level

0.25

0.4

To regulate

To advise Government

To undertake training activities

573 Ombudsman has to pass the award within how much time of
the complaint being registered before him ?

1 month

2 months

3 months

574 Which body has created a call center for logging a complaint

Life Insurance Council

IRDA

Insurance Association

575 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.
576 If a valid claim is delayed by the insurer then the interest for
the same will have to be paid by the insurance after how
many days from the date of admission of the claim?

Childs education

Marriage

Emergency funds

10 days

20days

30 days

577 Who controls and regulate the rates, advantages, terms and
conditions that may be offered by insurers in the respect of
general insurance business.

Insurance Regulatory and Development Authority.

Reserve Bank of India.

Tariff Advisory Committee.

578 Issuance of a license to a person has been stipulated


in................Act
579 The Insurance Institute of India (III) was formed in.....

Section 43 of the Insurance Act 1939

Section 42 of the Insurance Act 1938

Section 12 of the Insurance Act 1922

1956

1999

1955

580 Which of the following team represents the members of GBIC Representatives from all insurance companies
?
581 Which council among the following focus on creating a
Life insurance council
positive image of the insurance industry and would also like
to enhance the Consumers confidence on the same ?

Representatives from all government bodies

Representatives from IRDA

Consumer insurance council

National Insurance council

582 Mrs. Hansa an agent, has planned to sell maximum products It will benefit both the company and the customer
within a short span of time by giving maximum rebates to the
customer to complete the contest target of the company.
What or how would insurance company react to this ?

Reputation of the company will be high due to offers


to the customer

Agent will be terminated

583 Mr.Raghav is an expert in fact finding .Mr.Raghav helps his


brother in his job by sharing the information of his clients
after the fact finding he does to procure insurance. What will
be the outcome ?

Raghav will be promoted to the next level

Raghav will be terminated

Raghav License will be cancelled

584 The face of the life Insurance industry in India is ..?

Life Insurance Council

Life Insurance Corporation

585 In life insurance business if a person is working in calculating


premium rates of insurance products, then he is mostly likely
a member of
586 WHAT IS THE ROLE OF NIA
587 Which body formulates the Monetary Policy in India
588 Ombudsman has to give his decision within how many days?

institutes of actuaries of India

insurance institute of India

Insurance Regulatory Development


Authority
Charted institute of insurance

TRAINING FOR INSURANCE SECTOR


Institute of Actuaries
15 Days

REGLATORY BODY
RBI
30 Days

INSURANCE UNDER WRITING


SEBI
2 Months

Licensing of agents by IRDA

Controlling Premium rates by IRDA


centrally
10 days

589 As per IRDA regulations setting up IGMS would help in


Claims by insurance companies
effectively handling what ?
590 What is the stipulated time frame within which an insurer is
24 hours
supposed to respond after receiving any communication from
its policyholders?
591 Karthik written to his insurer about non settlement of a
maturity claim, as per regulations, the insurer has to reply to
this within how many working days
592 When was Ombudsmen Created?

1 day

1998

1986

1989

QB-ENG-Page 47 of 54

SEBI

1
17

3
2

Insurance actuary of india


His contacts in the market to solicit
Insurance

1
0.26

To Advertise globally on Indian


Insurance
6 months

Insurance Institute of India

Income protection
4
60 days
3
Insurance Institute of India.
3
Section 34 of the Insurance Act 1932

1947

Representatives from Insurance institute


of India
General insurance council

1
Agent will be qualified for the contest
3

Customer will complain to Ombudsman


2

Insurance Institute of India

Insurance institute of risk management

ACTURIAL VALUATION
Tariff Advisory Committee
3 Months

1
2

Grievance of the customers

30 days

3
10

1990

4
1
QB-ENG-Page 48 of 54

593 Insurance companies are required to honor the awards


passed by the Insurance Ombudsman
594 What all grievances can be taken up to the Ombudsmen

15 days

10 days

20 days

partial or total repudiation of claims by the insurer

dispute with regard to premium paid or payable

delay in settlement of claims

595 When the insured disagrees with any of the terms or


conditions of the policy after the policy is issued, they have
the option to return the policy stating the reasons for their
objection. Within how many days they can return the poly?
596 Consumer can call Toll free No. for any Grievance or he can
also contact
597 What is the free look time available after receiving policy
Documents?
598 What is the limit of Ombudsman claim settlement?

30

Consumer Affairs Department of the IRDA

15

Insurance Ombudsman

20

Insurance Company

30

15

20

insurance contracts of value not exceeding Rs. 20


lakhs
15 days

insurance contracts of value not exceeding Rs. 25


lakhs
20 days

insurance contracts of value not


exceeding Rs. 30 lakhs
1 month

600 Whom should customer contact in case of any dispute for a


claim more than 20 lakhs
601 Which other Complaint council body ,other than IRDA
grievance readdress forum & COPA, can a complainant go to
get his grievances against insurance company ?

Forum at district level

Forum at state level

National commission

Ombudsman

Insurance Institute of India

Insurance Association

602 What are the ways by which a policy holder can make
complaints
603 If the complainant is disagreeing with the decision of the
company on the claim then he can approach to ombudsman
in
604 If a policy holder buys a policy from the advisor and lodges a
complaint, it should be treated as :
605 Group Insurance can be taken in following relationship

email

Toll free No.

Newspaper

1 Year

6 weeks

12 weeks

Same for all policies sold by advisor


employee- employer

Same for all policies sold by the advisor except


corporate clients
husband-wife

Only for policy for which complaint


has been given
family members

606 De- tarrification is a process by which pricing of Insurance

Rises

Decreases

607 As per Regulation for protection of Policyholder s interest


2002 (IRDA), Which insurer will have a grievance redressal
System
608 Pooling of insurance applies to
609 AML Program of every insurer to include _______________,
apart from Procedure, Training and audit.

Some Specific Insurer

Those Insurer who did not created Insurance


Ombudsman System

Reaches at a level as per industry


trends
All insurer

all types insurance


Inspection by IRDA

All types of insurance except Motor insurance


Audit by Finance Ministry

599 Regulation issued by IRDA required that the decision on the


proposal must be conveyed to the proposer within

610 What is the minimum Sum Assured allowed for Micro


Insurance?
611 How many ombudsmen offices located in India?
612 What the name of department that is established by IRDA to
deal with customer complaints?
613 The insurance ombudsman has been appointed to protect the
interest of.......
614 The charges were not fully disclosed to the customers" is a
common complaint against.....
615 Which regulations take care of the settlement of claims ?
616 If any consumer is dissatisfied with the customer care cell of
any insurance company to whom they can escalate their
grievances.
617 Which is the Regulation that insists that all the insurance
companies should provide the information about the
insurance ombudsman of that region while sending the policy
documents.
618 To ensure that the customers complaints are handled
effectively, IRDA has established
619 Life Insurance policyholder is entitled to refer complaint to
insurance ombudsman referral is made in maximum period of
one year from
620 Mr A Is working as Nodal Officer in Insurance company,. What
is he dealing into ?

5000
10

Only life insurance


Appointment of Principal Compliance
Officer
10000

15000

12

Customer Complaint Department (CCD)

Customer Grievance Department (CGD)

14
Consumer Affairs Department (CAD)

policyholders

shareholders

insurers

IRDA

Agents

Shareholders

Protection of Policy holder Interests regulation 2002 IRDA claim protection regulation 2002
Nodal officer

Grievance call center

C.IRDA policy settlement regulation


2004
Compliance cell

Policyholder grievance Regulation

Policyholders Protection regulation

Ombudsman Regulation

Integrated Grievance Management System.

Internal Grievance Redressal Cell of the Insurer.

Grievance Redressal Officer.

Original complaint

event on which complaint is based

response by insurer

handling complaints

assessing risk

Licensing of agents

QB-ENG-Page 49 of 54

3 days

ALL THE ABOVE

4
25
2

All of the above

4
45

insurance contracts of value not


exceeding Rs. 50 lakhs
no time bar

Ombudsman

FERA
1
Email or Toll free Number

2 months

None applicable

society members

Insurance can price their product on


their self past experiences.
It is optional

Only Non-life insurance


Inspection by Auditor General

3
20000

15
Consumer Protection Department (CPD)

General insurers.

Underwriters

D. Protection of claim settlement


regulation 2002
Compliance officer

Compliance Regulatory
2
Consumer Affairs Department.
expiry of policy

Managing administration for the branch

4
3
1
QB-ENG-Page 50 of 54

621 Mr. A is not satisfied with solutions provide by Insurer so he


approaches Ombudsman. Within how much time the
Ombudsman has to give his recommendation from the date
of receipt of complaint?

15 Days

622 On submission of complaint against an insurer to the


10 days
ombudsman, decision is made in favour of the policyholder.
Maximum no. of days the insurer must honour the
ombudsman's verdict:
623 A policy has been rejected by the company under direct
he has to inform the customer that the co has
intimation to the customer and copy to the Agent, what is the broken relationship with the customer
next action of the Agent
624 An advisor while explaining the policy and to sell he accepts
to give a part of his Agents commission, what is the limits

one month

2 Months

15 days

20 days

he plans to change the plan

He has to explain the reasons for


rejection to the customer

0.1

0.2 He cannot offer any commission

625 Raju is a certified license holder under what circumstances he when he sells term insurance
needs to hold his certified license with him that is issued by
IrDA

when he represents himself as another insurer

when he sells pension policies

626 ___________ has laid down the Code of Conduct for all
agents
627 After doing the need analysis of the client, the agent advised
the client to opt for TROP product. But the client refused.
According to ethical business practices what will the agent
do ?
628 Under the hospital care rider what is the payout made

Insurance Institute of India

Insurance Regulatory & Development Authority

Indian penal code

Enquire about the refusal from the client

Suggest an alternative plan

Pass on to the superior

10% of the sum assured

Specified amount multiplied by the number of days


the policyholder is hospitalized

expenses incurred per day multiplied


by no. of days stay in the hospital

629 Ethics can be defined as


630 Which is not unethical behaviour in below statements?

Those values we commonly hold to be good and


right.
Over selling of Insurance policies.

Behavior that is based upon the moral judgments of


an individual
Under selling of Insurance policies.

631 For an insurance advisor churning is.............practice

good

bad

A study of what makes ones own


actions right or wrong.
Explaining all details of the policy to
customer.
compulsory

632 Mr. Sharma is a newly recruited insurance advisor. To meet


his month target he explains only the good points of newly
launched plan to his customer. Here Mr. Sharma's behavior
633 is............
Rahul is a licensed insurance agent. As agent he must carry

ethical

unethical

professional

Companys code of conduct.

IRDA Acts code of conduct.

IRDA Regulations code of conduct.

Underselling of insurance policies.

Churning.

Overselling of insurance policies.

Insurance Regulatory Development Authority

Life Insurance Company

Reserve Bank of India

Less likely

More likely

Less Transparent

have worsened

have improved

focus mostly on internal activities

638 When insufficient emphasis is placed on the long term nature Average policy term
of Life Insurance policies during selling process, this will often
be apparent by noting the impact of which key static

Average premium size

Expense ratio

639 Why does an Insurer insists on age proof documents?

To calculate SA

For risk Assessment

For Identification Proof

640 Mr A submitted the proposal form , when will the risk begins
for the company
641 To be valid Contract , the declaration is necessary in which
document
642 Mr ABC buying is TERM insurance policy , the insurer should
mentioned ombudsman address in which part of policy
Zainab takes Insurance in the life of jasmeet , Zainab will be
643 document

On submission of proposal form

When FPR is issued

Policy issued

Policy document

proposal form

FPR

Operative clause

preamble

Information statement

Proposer

Nominee

appointee

634

635
636

637

out his role in accordance with


Shankar, an adviser, sold a term insurance policy and unitlinked insurance policy (ULIP) to Amar, the client, who is
unmarried and has no dependent. Consequently, Shankar s
action can be termed as
Pankaj being a license insurance advisor has to follow code of
Conduct provided by:
If the sales target for an insurance agent is significantly
reduced , this should normally have what impact on the
activity of churning?
if there is a significant reduction in the proportion of an
Insurer's Policies which are returned during free look period,
this tends to indicate that ethical practices by the company

called as ?

QB-ENG-Page 51 of 54

3 Months
2

25 days
2
He takes up with the higher authorities

He can offer up to 50%

under all circumstances

Reserve bank of India

4
2

Pass on to the other agent


1
100% of Sum Assured

All of the above.

Churning.

appreciable

Perfect.
2
Insurance Acts code of conduct.

Ethical practice by an adviser.


3
SEBI.
More Transparent

1
1

focus mostly on external activities


1
Persistency ratio
4
for financial assessment

when agent accepts the money

RPR

Schedule
Trust

3
1

QB-ENG-Page 52 of 54

644 Loan is available for a policy in which there is a feature of ?

Fund switch

saving element

partial withdrawal

645 The appointee's role would be when


646 If policy has to be made Paid Up , what particular feature
should exist
647 Why is ACR important ?

Medical check up for policyholder is there

when nominee is minor

Indexation contribution

Nomination facility

when loan has to be taken by


policyholder
Rider
Benefits

To calculate commission for the agent

to verify the plan proposed

648 While Underwriting MR X proposal , its found that there has


been criminal charges against him in fraudulent act . What
type of Hazard this will be categorised into ?

Occupational

Physical

to help the underwriter to asses the


risk
Moral

649 Who is the primary underwriter ?


650 Lien can be considered as an alternative to which of the
following ?
651 At the time of maturity of the policy , the Policyholder
received just quarter of SA and bonus , what could be the
reason
policyholder can pay the premium of Rs 5,00,000 . What
652 A

Branch underwriter
Clause

Sales Manager
Rejection

Actuary
acceptance

Partial withdrawal done earlier

Lien had been imposed

its a money back policy

could be the maximum Tax benefit he can avail under sec 80


? has invested Rs 5000 in PPF and Rs 1 Lk in life
653 C
Ram
Life Insurance premium
Insurance premium . In which he gets maximum tax benefit ?

500000

300000

200000

PPF

50% IN BOTH

654 The best way to overcome the problem of investment


decision depends mainly on peer influence is ?

By canvassing wide peer group

seeking professional advise

go for low investment tranche

655 As an investment diversification Mr B , Invested in ETF .


What's the weight of Gold for 100 units ?
656 Insurer transfers the risk which it cannot bear to whom ?

5/10 gms

50/100 gms

15/20 gms

Reinsurance company

Bancassurance

Third party admiration

657 What overriding criteria an insurance agent consider while


proposing a solution
658 Vivek takes insurance policy & dies after 8 months . If the
claim needs to be excluded , then the basis of the exclusion
would be which ?
659 According to IRDA 1999 , central government involvement in
insurance sector would be ?
660 Complaint council bodies other than IRDA grievance redressal
forum & COPA would be which one ?
661 Which other way IRDA can be contacted apart from toll free
number ?
662 Raju is certified license holder under what circumstances he
needs to hold his license with him that is issued by IRDA ?

Risk

Suitability

Flexibility

Murder

Body not found

Accident death

In advertisement

In legal handling of IRDA problems

Licensing of Insurance companies

Ombudsman

Insurance institute of india

Life insurance council

Branch office of insurer

Email

Insurance Ombudsman

Under all circumstances

When he sells term Insurance

When he is selling in different city

663 Harish takes a life insurance policy on life of RAMESH who is


his friend . Which of the following statements best describes
the insurable interest ?
664 Investing In ULIP can get exemption up to what limit in Sec
80 c ?
665 Suresh wants to transfer his physical gold into Gold ETF . In
relation to exchange this would help him in which way ?

Harish is elder than ramesh

RAMESH is working in oil company and is rich

Ramesh owes money to Harish

Decrease his liquidity

Reduce his encashments

will give insurance against certainty

666 Implication of Daily hospitalization benefit plan will be which


of theses ?
667 Ram has taken an Endowment plan for Rs 4LK SA , what
could be the maximum SA he can take for a critical Illness
rider ?
668 Why would self employed individuals have the need to buy
medical insurance rather than individuals working in Public
sector ?
669 In which stage of life an individual does not require any
protection cover
670 Mr y has been approached by an agent and on fact finding
the score of 3 would indicate what risk appetite for Mr y ?

Fixed & daily

only on selected hospitalization for surgeries

Only in case of critical illness

Rs 2 LK

Rs 50000

Rs 4 Lk

Public sector individuals dont fall sick

Self employed individuals do not have sick leaves

Public sector individuals enjoy medical


insurance covers related to job

Childhood

Retirement

Pre Retirement

High Risk

Low risk

Moderate risk

671 Both parties to a contract agree and understand the same


thing and in the same sense . This would be ?

Consideration

Consensus ad idem

Capability

50000

100000

QB-ENG-Page 53 of 54

200000

surrender

for signing declaration while taking the


policy on
children name
Saving
Element

to calculate the premium

Financial
3
4

Agent
Time barred

It is a Term plan with return of purchase


price
100000
95% IN Life insurance premium and 5%
in PPF
Postpone of investment decision

3
4
4

10/20 gms

actuaries

Cost

Suicide

issuing grants

FERA

Head office of Insurer

when he is selling ULIP plans

Harish Owes Money to Ramesh

Nil
Hedge against Inflation

SA
Rs 1 Lk

3
2
3
1
3

Self employed individual wants to take


best of the hospital benefits

Young married

No risk

Capacity

2
QB-ENG-Page 54 of 54