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Sr.

No.

Chapter No

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Question
Sanjeev is an insurance expert who
has rich experience in determining
premium levels for product, what is
his profile like
The Non Government
organizations(NGO) helps the
insurance industry immensely in

Ans Option 1

Ans Option 2

Ans Option 3

Ans Option 4

Correct
Ans /
option

Learning
Objective

Explation for correct answer

Page No.

an actuary

loss adjuster

risk mager

underwriter

Actuaries

Works on statistical data to arrive on


mortality , premium table etc

Pg :27

Promotiol
activities

Drafting new
regulations

Linking buyers
and sellers

Linking third
party
administrators

NGO

12%

25%

40%

26%

FDI

Government
Employees

people living in
Metro cities

Micro
Insurance

Investment by foreign direct investors


in to Insurance co's is restricted to

Which market does the Micro


Insurance Concentrate on ?

What facility do the insurer use to


cover Risk beyond their Limits ?

Re Insurance

Banca assurance

NGO

RBI

Reinsurance

what is the max level under which


micro insurance can be done

5000

25000

50000

1 lac

Micro
Insurance

Who is the customer of a Re insurer

High Networth
Individual

Insurance
Companies

Licenced
Insurance
Agents

Non
Government
Organisation

Reinsurance

Reinsurance company is the Insurer for


the Insurance Company

Pg :26

Reinsurance

A re insurance company is the Insurer for


Insurance company

Pg :26

People with large People with Low


families
Income

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10

1
1

1
11

1
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1
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1
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1
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1
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1
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Pg :27

1
3

NGO spread Awareness as well as In


rural on deeper Penetration through Micro
Insurance
On recommendation of Mahlotra
Committee , Under Joint venture , the
foreign player can not have more than
26% stake
Micro Insurance is for Low Income Group
. Product ranges from 5K to 50 K
.Premium is as low as Rs 15 and can be
collected weekly
Reinsurance company is the Insurer for
the Insurance Company
Micro Insurance guidelines was issued in
2005 by IRDA . Minimum SA is Rs 5000
& Max is Rs 50,000

Insurance company transfers the


Reinsurance
TPAs
Actuaries
insurance which cannot bear by them Bancassurance
to
What is the main objective of taking
Tax benefit
Savings
Investment
Protection
the life insurance policy
What is the maximum sum assured
10000
25000
50000
100000
under a micro insurance
Varun wishes to pursue a career in
insurance and wishes to be in a
Claim
department which calculates the level
Actuary
Underwriter
Accounts
Department
of premium. In which department
should he join?
Insurance broker
The client
Insurer
represent the
represent the
represent both
Broker only
According to Insurance Brokers
client and the
broker and the
client and
service the
Association of India, what is the most
insurer
insurer
broker
client
appropriate relationship between
remunerate the remunerate the
remuneration
Insurer and Broker?
broker
broker
If a client needs Mediclaim to cover
health insurance which insurer he
Non life insurer
Life Insurance
Reinsurer
Any Insurer
needs to apply.
Who work only
Who works for
Who work for
Intermediaries
for insurance
their own
customers
Insurance agents are
company
interest.
Any assets, which are no longer
Cashed in for
suitable or are earning fewer returns
Reviewed
investment into
than expected, should be
other assets
If a client wants to compare between
all fincial products then the best
Individual agent Corporate agent
Bank
Broker
person he can approach is
If the customer wants to seek
information about all products, then
Agent
Broker
NGO
Bank
he can avail the services of
To identify suitable products their
main features and their tax treatments
Agent
Proposer
Policy Holder Insured person
is the role of:

Remarks

Pg :24

Pg 24

Pg :26

Pg :25

4
3

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

1
The main purpose of buying an
insurance policy normally is

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The basic elements of life insurance


are:
Transactions of sale of life insurance
products to the insurable clients are
viewed in the Insurance market
mostly as

Accident benefit
Pension and
and riders.
monthly income.
Sales
transactions

Relationship
transactions
2. Product
Based Selling

A Professiol insurance market


carries..

1. Need Based
Selling

Insurance Market divided into

1. Endowment
and Money Back
Insurance

What is Bancassurance?

1. Giving
insurance
policies to
Banks.

Which of the following do not include


the channel of indirect marketing?

1. individual
agents

The business of Insurance is


connected with................

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23

24

25

27
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29

2.
bancassurance

1. physical
2. economic
values of assets values of assets

Insurance business is classified into 1. Life, Non life, 2. Life, Non Life,
three main types:
Micro Insurance. Miscellaneous

2
34
2

1. Insurance
brokers.

2.
Bancassurance.

3. metaphysical
values of
assets

4. market
values of
assets

3. Individual
agents.
3. Life, Non
life, Reinsurance.

Discuss

Discuss

4. Internet.

4.Life, Health,
Micro
Insurance

lung cancer is
smoking is peril
Is occupatiol
peril and
and lung cancer Death is certain
hazard
smoking is moral
is hazard
hazard
Pure &
The type of risk that can be insured
Non Fincial
Speculative Risk
Pure Risk
Speculative
against is
Risk
risk
The premium
All similar risks
Premium is
Contribution of
collected &
are pooled
pool to make
insurance
deposited in a
together
claims
company
Pooling of risk in insurance means
pool
lung cancer and smoking .

4. through
internet

4. D. An
2. B.A legal
3. C.A legal
1. A legal person
authorized
person to act on person to act
to act on behalf
agent to act on
behalf of the on behalf of the
of the re-insurer
behalf of the
insurer
contract
legal company

E-sales refers to sales of insurance


products through

3. insurance
brokers

2. death is
uncertain

33

35

1. death is
certain

3. Commission 4. Company
Based Selling Based Selling.

3. Government 4. Health and


and Private
Saving
Insurance
Insurance
Markets
Markets
2. Selling
3. Giving
insurance
guarantee to 4. None of the
above.
policies through
policies by
Banks.
Banks.

Agent who is a licensed intermediary


is actually is ?

32

Assured
transactions

3. the timing of
4. Death is the
death is
solution.
uncertain
4. At the time
The timing of death is uncertain, so 1. At the time of
2. At an early
3. Anytime in when Advisor
when one should take life insurance?
uncertainty
age
life
takes the
decision
1. The life of the
2. The risk
3. The fincial
Insurance Protects which of the
4. The life of
person paying retained person
goal of the
following?
the nominee
compensation
's family
insured
Human beings need life insurance
because..................

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31

Monetary
transactions

2. Life and
General (nonlife) Insurance

26
1

Death cover
and maturity
benefit.

to obtain loan
as when
required to
meet fincial
obligations
Interest yield
and variable
income

to develop the to obtain Income for protection of


habit of savings
Tax benefits
fincial security

Peril refers to a specific event which


might cause a Loss /Damage .A hazard is
a condition that may Increase the chance
of perils to happen
The types of risk that could be insured
Types of Risk
against are , fincial risk , pure Risk &
Particular risk

Peril & Hazard

Pg:41

Pg :42

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

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2

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2
2

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2
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42
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45

2
2

2
46
2
47

Pure risk is classified under


The consequences of these risks
which will affect specific individuals or
local communities in ture is called as
Law of Large number helps the
insures to
A person with a crimil background due
to Fincial fraud would come under
which hazard

Speculative risk

Fincial risk

Insurable risk

Pure risk

Fincial risk

Particular risk

Physical
hazard

Calculate the
premium

Increase the
profitability

Ascertain the
death ratio

Declare the
bonus

Physical

Moral

Occupation

Perils are
Perils are risks
Perils are
Perils are
factors which
that
medical factors
factors which could influence
policyholders will
which influence
affect the risk
an insured
die before a
the risk of dying
being insured event occurring
specified date
and hazards are
and hazards
and hazards
and hazards are
lifestyle activities
are the size of are the actual
factors which
How are perils and hazards normally which influence could influence the risk being events which
insured.
will trigger a
distinguished under term insurance the risk of dying.
that risk.
payout
policies?
Law of large numbers is worked out
by which of the 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?
In life insurance industry which
mechanism operates so as to eble the
individuals to reduce the impact of
risks
Law of large numbers help in
calculating the
Which is the best option to mage risk?
Viy 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
______
Insurance is a mechanism through
which risk of an individual can
normally be

48

Economic risk

In the context of Insurance


terminology, how the meaning of
Peril, Risk and Hazard is best
described?

With utmost
good faith

Pooling of risk

Maintaining
insurable interest

Under no
circumstances

Under conditions As directed by


As per
of the reinsurer
actuary
company policy

Randomness

Pooling of risk

Transfer of risk

Prevention of
risk

Sharing of risk

severity of risk

physical hazard

moral hazard

Probability of
risk

Retain

Transfer

Avoid

None

Transfer

Control

Retaining

Avoidance

transferred

prevented

avoided

reduced

Peril is the
event, Risk is
Peril is the
the likely
Peril is the
event, Risk is
Peril, Risk and
occurrence of
event, Risk is the the cause of
Hazard are of
loss of event and event and the the event and
the same
the Hazard
Hazard is the
Hazard is an
meaning
increases the
wrongful even
event of
chances of
dangerous ture
happening of
the event.

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

Pooling of risks is one of the


fundamental principles of insurance
where the Insurers pool the premium
collected from

all types of
fincial risks

the
homogeneous
risks

Pooling of insurance applies to

1. all types
insurance

2. All types of
insurance except
Motor insurance

3. Only life
insurance

The Risk contains.

2. Level

3. Uncertainty

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53

2
2

2
54

Grouping the similar risks by


2. Risk Grading
Insurance Company is called as.
The function of Insurance works
1. Risk Transfer
2. Risk avoid
on..
Mr. Mahesh is a software engineer.
He has taken a term insurance for Rs.
1. Risk retention 2. Risk transfer
30,000,00/- for 30 years. This is an
example for-----------------

3. Risk
Assessment
3. Risk
retention.

4. All of the
above.
4. Pooling of
Risk
4. All of the
above.

3. Risk
avoidance

4. Risk
tolerance

4
4
1

Which of the following can be an


example of moral hazard?

1. a family
history of heart
disease

2. a person
working in a
chemical factory

3. a person
consuming
alcohol

4. A teacher
working in a
primary school.

Life insurance the risk is determined


on the basis of ..........

1. future data

2. past data

3. statistical
data

4.
mathematical
data

Which one of the following is


possible in retaining the risk?

56

57

2
58
2

2
60

2
61
2
62

3.Is possible by
1. Retaining the 2. Not possible
4.Is possible by
transferring risk
ownership in the as life has many
Re-insuring
to the policy
policy
risks.
oneself
holder

On 6th August there was a typhoon.


1. Under the
2. Under the
Mr.Augustin who had insurance died
category of Pure category of peril
in typhoon. Now how will the
risk
risk
insurance company will categories
this particular risk ?
Life insurance company determine
1. Future
2. Claim
the level of risk based on
expenses.
experiences.
Ram works in a Fire cracker factory.
He stocks the cracker in his house.
He runs which type of risk.

1. Speculative.

2. Particular.

3. Under the
category of
particular risk

4. Under the
category of
Risk Transfer

3. Present
expenses.

4. Targeted
bonus rates.

3. Fincial.

4.
Fundamental.

4. Using the
same pool for
paying claims
of life
insurance.

4. Sharing of
Risk

1. Using the
3. Using the
2. Using different
same pool for
same pool for
pool for paying
In Insurance terms, pooling of risk is paying claims of
paying claims
claims of life
car & life
of life & house
insurance.
insurance.
insurance.
An Insurance company pools the
2. Pooling of
3. Insuraable
premium collected from several
1. Pure Risk
Risk
Risk
Individual to insure them against
similar risk is called:

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:

1. Pure Risk.

2. Particular
Risk.

3. Fincial Risk.

4. Insurable
Risk

which of the following refres to


specific event which might cause a
loss ...

1. Peril

2. Hazard

3. Physical
hazards

4. Uncertinity

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4. Only Non-life
insurance

2
55

59

1. Peril and
Hazard
1. Grouping of
Risk

the
the speculative
heterogeneous
risks
risks

Harish takes a life insurance policy for


Ramesh
Ramesh. Which of the following
declares all his
statement best describes the principle
liabilities
of Insurable Interest.

Ramesh is elder
than Harish

Harish suffers
Ramesh owes
fincial loss
money form
incase of death
Harish
of Ramesh

Insurable
Interest

Creditor has Insurable Interest on the Life


of Debtor to the extend of the MONEY
lent to the debtor

Pg :56

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

3:1

what is the min age to enter into the


contract of insurance

16

18

3:1

In a whole life plan - The


policyholider's responsibility to give
disclosure

at the beginning
of the contract

through out the


contract

20

21

Revival stage

beginning of
renewal

Insurance
Contracts

Person entering contract should be


competent enough . A person is
competent when he is a Major ( above 18
years ) , sound mind ,not disqualified

Pg :53

Utmost Good
Faith

The proposer knows all the material facts


about himself and has to disclose all
information voluntarily at the time of
completing the proposal form and
submitting the documents

Pg :57

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67

3:1
Principle of utmost good faith will
operate in existing policy

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71

3:1

What amount of insurable interest


does an individual have in his own life

3:1

With reference to the principle of


indemnity a life insurance policy is a.
If Insurable interest does not exists at
the time of inception of the life
insurance policy then, life insurance
contract is
If a contract is signed by a 15 years
old boy, this contract will be
1.Iftheemployerhasinsurable
interest in the life of an employee,
what kind of policy is this?

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Consideration

Legality of an
object

At inception of
policy

Not needed

employeeemployer

Husband-wife

20,000

50,000

Insurance
contract.

Indemnity
contract.

Voidable

Null and void


A.Surety
insurance

The concept of indemnity is based on Insuring existing


the key principle that policyholders
losses.
should be prevented from
Employee has insurable interest in the
life of their employer to the extent of
Mr Rohan takes an insurance policy
due to heavy Debt on his business
with an intention of committing
suicide. This is an example of the
following Feature of a valid contract

3:1

An insurer can invoke indisputability


clause in case of death only in

3:1

A proposer shows his age lesser than


his actual age. This will be termed as

80

81

In case of life insurance, Insurable


interest must exist
Group Insurance can be taken in
following relationship

3:1
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75

Both the parties to a contract must


agree and understand the same thing
and in the same sense which is called

If the policy has


Every time
lapsed and it has
premium is paid
to be revived

If the insured
If the insured
person falls
person changes
sick and is
his job
admitted to
hospital

Consensus ad
idem

Acceptance

At the time of Any time during


claim
the contract
society
members

Unlimited

Value contract.

Major life
contract

Invalid

Valid

Null & voidable

Invalid

Voidable

Valid

D.Debtor
Insurance

Profiting from
insurance.

B.Keyman
Insurance
Making false
insurance
claims.

family
members
Up to the sum
assured taken
in the plan

C.
Partnership
Insurance
Paying
excessively for
insurance
cover.

Yearly Salary

Monthly Salary

Probation
Period

Till Gratuity

Capacity to
Contract

Legality of object

Capability of
performance

Offer and
acceptance

Non payment of
due premium

Breach of duty of
disclosure of
material facts

Breach of utmost
good faith

Breach of trust

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

3:1
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3:1

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3:1

Mr.Mehrawantstoinsurehiswife.
Previously his proposal was rejected
Fraudulent
Innocent
by another company, but this time he Non-disclosure Concealment of misrepresentati misrepresentati
submits the proposal form without
of material facts material facts
on of material on of material
showing this to a new company. This
facts
facts
is
In which type of insurance Insurable
Liability
Motor
Travel
Marine Insurance
Interest exists at the time of claim?
Insurance
Insurance
Insurance
Fincial
Emotiol
Proximity of
blood relation
relationship
relationship
relationship
between the
between the
between the
between the
A proposal of life insurance is not
Proposer and the
Proposer and Proposer and
Proposal
and
the
accepted in the absence of Insurable
Life assured
the Life
the Life
Life assured
interest which mainly depends on the
assured
assured
Before the
Principle of utmost good faith is
contract is
expected for max up to which stage
concluded

A contract comes into existence


when

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Mr. Kumars wife is suffering from


blood cancer. Doctors lost their hope
on her live. Mr. Kumar would like to
1. Anti Money
take Life Insurance policy on wifes
Laundry
me in order to get monitory benefit.
Insurance company rejects this
proposal on the grounds of.
Under this situation may leads to
1. Non disclosure
breach of the duty of utmost good
of material facts.
faith.
1. Facts of
The principle of utmost good faith is
common
not applicable to
knowledge

2. One party
3. One party
4. One party
makes an offer makes an offer makes an offer
which the other
where other which the other
party put extra
party gives
party receives
conditions.
counter offer.
the offer.

3. Capacity of
2. Legality of
paying future
object or purpose
premiums.

3. Fraudulent
2. Concealment
misrepresentati
of a material fact
on of facts.
3. Facts those
2. Facts of law
are not
material.

4. All of the
above

4. All of the
above.

4. All of the
above.

Where do you not find insurable


interest in the following options.........

1. surety-co
surety

2. employeeemployer

3:1

The principle of utmost good faith


applies to...........

1. only insurers

2. only proposer

3. both insurers
and proposer

4. neither
insures nor
proposer

2. Capacity to
contract

3. Consensus
ad idem

4. Offer and
Acceptance in
the contract

4. The
insurable
interest
between the
car and Jim is
valid until
Karans return

4. He had done
an innocent
misrepresentati
on

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3:1

Mr.Akash filled the proposal form but


before submitting to the company he
discussed with the agent that he is not 1. Consideration
sure whether he can pay for 15 years in the contract
. This attitude affects which part of the
contract?

3. husband-wife 4. brother-sister

3. The
Mr.Karan who has to go to abroad for 1. The insurable 2. The insurable
insurable
6 months on an official work decides interest between interest between
interest
to leave his car with his friend Mr. the car and jim is
the car and
between the
Jim. What will be the validity of the
valid for 6
karan is valid for car and karan
insurable interest in this case ?
months
6 months
is valid until he
owns it
Mr. Josh was filling the proposal form
2. He has
3. He has
1. He has
but as his mother was sitting beside
breached the
breached the
breached the
him, even though he drinks and
company by
company by
smokes he ticked NO in smoking & non-disclosure of
concealing the
fraudulent
the fact
drinking column of proposal form.
facts
information
This indicates ?

Discuss

3:1
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94

1. One party
makes an offer
which the other
party accepts
unconditiolly.

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

3:1

A contract exists between insurer and


proposer when

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98

3:1

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99

all types
insurance
Pooling of insurance applies to

100

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3:2

3:2

3. A policy
2. A policy
document has
document has
been received
been stamped by
by the
insurer.
policyholder.

4. An insurer
has made
another
proposal.

Rakesh purchased a life insurance


policy. While writing a proposal form
he hide that he practices
1. Innocent
2. Fraudulent
3.
4. Nonmountaineering. Sadly he died in an
misrepresentatio misrepresentatio
Concealment.
Disclosure.
accident while climbing Mount
n.
n.
Everest. The insurers rejected the
claim.What is the reason for
rejection?
Shamsher has a health insurance
policy of ` 1, 00,000 individually and
from his company for ` 2, 00,000. He
falls sick and got hospitalized. His
1. Indemnity
2. Value
3. Deemed
4. Rolling
hospital bill ran to ` 50,000. He
contract.
contract.
contract.
contract.
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.
1. Value
3. Commercial
Life Insurance also known as:
2. Indemnity
4. Speculative
Contract.
Contract
4. A joint life
1. Plan offer
policy may
insurance
2. This plan is 3. Each life will
Which option is not correct with
cover a partner
coverage for two ideal for brother be underwritten
regard to joint life insurance plan?
in business
person in one
& sister.
separately.
under one
policy
policy.

3:1

102

1. A proposal
has been
accepted by
insurer.

All types of
insurance except
Motor insurance

15 days from the 20 days from the


The proposer can withdraw from the
date of receipt of date of receipt of
contract, if they disagree with the
the policy
the policy
terms and conditions of the Policy,
document
document
within a free look-in period of
Term
Types of assignment
Absolute
assignment
why does an insurer insist on age
proof document . To assess

Only life
insurance

Only Non-life
insurance

25 days from
the date of
receipt of the
policy
document

30 days from
the date of
receipt of the
policy
document
Absolute &
Conditiol

Conditiol

Assignment

104
105

3:2

3:2
106

Mr A submitted the proposal form .


When will the risk begins for the
company?
The obligation of the insurer for the
whole life policy is mentioned in
Asvath is illiterate. He wants to take
policy and surya is a friend of his help
him is answering questions and
answers and also fills proposal . In
addition to this requirement is

Pg:79

SA

Risk assessment

Identity
verification

Fincial
assessment

Insurance
Documents

Submission of
proposal form

FPR issued

Policy issued

Agent accepts
money

Insurance
Documents

FPR is an Important document which is


also an evidence that Risk has begun

Pg :70

Operative
Clause

Preamble

Proviso

Endorsement

Insurance
Documents

The operative clause lays down the


Mutual obligation of the parties .

Pg :71

Left thumb
Impressionof
policy
asvath thump
Asvath along
document need
impression Only
with a
to be registered
declaration of
his friend

Key
Documents

The proposal form and the proposer's


Sigture is the basis of the contract .

Pg :68

103
3:2

Sec 38 of Insurance Act 1938 Defines


Assignment and its types
AGE is a factor for determining the Risk
Profile of the Proposer , thus allowing the
underwriters to calculate the premium
required for the plan

Asvath
photograph

Pg :69

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

Both are
Standard Age
Proof

Both are Non


standard Age
Proof

Baptism
Certificate is
Standard &
Ration Card is
Non Standard
Age Proof

Baptism
Certificate is
Non Standard
& Ration card
is Standard
Age Proof

3:2

For Logging a Policy , a person gives


Baptism CERTIFICATE & Ration
Card . What is this ?

3:2

To be a valid contract ,the declaration


Policy Document
is necessary in which document

proposal form

FPR

RPR

3:2

Mr. ABC buying Term insurance


policy, insurer should mention
operative clause
Ombudsman address in which part of
policy document?

Preamble

Information
statement

schedule

107

108

109

113

A grace period normaly is of One month ,


not more than 30 days for YEARLY ,
HALF , Qtrly mode of premium payment .

Pg :74

Proposer

Nominee

Appointee

Trust

3:2

Mr.Suresh dies one day before the


grace period without paying the
premium, what is th claim payable

No claims
payable

All premiums
paid

Sum assured

Sum Assured
less the latest
premium

Lapse

3:2

Loan is available for a policy in which


there is a feature of

Fund switch

Savings Element

3:2

Appointee's role

Sigture on the
proposal

Medical exams

3:2

how many nominees can be attached


to a term insurance policy

one

two

3:2

if a policy has two nominee


mentioned what should be the Min
allocation

3:2

a Policy holder takes a insurance


contract for 30 years and the SA
reduces after 25 years what could be
the likely reason

No bonus
accumulated

3:2

A life insurance policy can only be


made paid up if what particular policy
feature exists?

Indexing
contribution.

115

116

Age proof was


substantially
wrong

Loans &
Foreclosure

when Nominee
is Minor

Nomition

three

many

Nomition

Any number of nomitions can be attested


on the policy . However No % age of
share can be mentioned per nominee

Pg :78

the first
nominee
should have
more than
second

No such
conditions

Nomition &
Assignments

No specific Shares in Multiple Nomitions


however can be done for successive
nomitions

Pg:78

Policy has
become paid
up

Its a Ulip Plan

Paid Up &
Lapse

Lapsed policy will be made Paid Up and


the SA reduced to an amount based on
Premiums Paid

Pg :75

Paid Up
policies

Policy which have A value , ie


endowment and having saving
component can be made paid up in case
it lapses during the term after completion
of 3 policy years

Pg :75

Surrender
value

Also known as Cash Value . The Option


for the policy holder to close the Plan
during the Term .due to either Persol
Fincial problems or policy being mis sold
and benefits not up to the clients needs

Pg :76

Nomition facility. Rider benefits.

advisor induced no commission

Has Fincial
Problems

117

3:2

Reasons for surrender of the policy

SA

3:2

If a life insurance policy is issued with


a lien, it will be mention in

Proviso

Schedule

Terms &
conditions

Endorsement

Total paid
premium

Sum Assured

Surrender
value

Paid up value

Provisio

Endorsements

Operative
clause

Terms and
Conditions

118
119

3:2
120

3:2
121

Available Loan amount under a life


Insurance policy is generally based on
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?

Pg 66

Surrender

Savings
element.

loan is given as a certain %age of


Surrender value
An appointee has to be appointed in
case the Nominee is a Minor

Pg 68

Partial
withdrawal
insurable
interest

114
Each nominee to Each Nominee to
get Min 10%
get Min 25%

Pg :69

Pg :72

Zaib takes insurance in the life of


Jasmeet. Zaib will be called as

111

Age proof are standard and non standard

The proposal form and the sigture of the


Key Insurance
proposer will form the basis of Insurance
Documents
contract .
Policy Information statement includes
:facility available for frequency and
Key Insurance
method of premium payment ,contact for
Documents
service and inquiry related to policy
,Ombudsman location and contact
The person seeking insurance is a
Key
Proposer . Proposer & Life assured could
terminologies
be the same or different

3:2
110

112

Key
Documents

Pg :79
Pg :74

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

3:2

122
3:2
123
124

3:2
3:2

125

3:2
126

3:2
127

3:2
128
3:2
129

3:2

130
3:2
131
3:2
132

3:2
133

3:2

134

Mr. shailsh has an endowment policy


with 30 years policy term, he has paid
for eight years. The sum assured
Rs.8,00,000/- and accumulated bonus
Rs.60,000/-. What is the paid up
value if bonus accumulated and if not
bonus accumulated?

213333 &
273333

213333 &
229333

229333 &
273333

Authorized
Whose sigture is required on
Agent
Policy holder
officials of
attestation of the policy?
insurer
The mutual obligation of the parties is
Operative
Heading
Proviso
laid down in?
Clause
The Insurance companies allow
modification/alteration of the origil
Surrender
Paid Up
Endorsement
policy documents through...
In case the customer has stopped
Reinstatement
making payment for the premium of
Premium cheque
Fee and Proof of
Only health
the policy. What are the two most
and health
continuing good
certificate
important things required in order to
declaration
health
reinstate the policy?
A and B start their policies on the
nd
same date and surrender on 22
As health was
As term was
Bs term was
anniversary of the policy. But As
better than B
longer than B
longer than A
surrender value is higher than B. the
reason was ;
Which from the following would help
best the underwriter to know whether
the proposer had applied previously
and his application was rejected

Medical reports

Proposal form

229333 &
293333

Proposer

Attestation

Assignment

Premium
cheque with
arrears

Policy
document

Can be done
A simple
through an
application
affidavit sworn
would do.
in
He cant take
He cant take
He regularly
He can surrender
loan from
loan from
Mr. Anil has a money back policy and pays premium so whole life policy money back
whole life
a whole life policy. He is planning to he can take loan
and can take
but can avail policy but can
take some loan from both the policies from both the loan from Money
loan from
avail loan from
as he was regularly paying the
policies
back policy
Whole life
Money back
premium. What is your suggestion?
policy
policy
If more than one
When does nomination get
On assignment
person is
invalidated
nomited
If 5% bonus is given every year then
for a SA of 1 lakh, what will be the
60000
75000
100000
5000
payout
after 15 years in a simple
revisiory bonus system?
Vijay received his policy bond on 11th
June, 2011. Due to some persol
No, as 15 days
Yes, as it is
No, as 20 days Yes, as it is
problems he has decided to cancel
period is over
within 1 year
period is over within 3 months
the policy on 8th July, 2011. Can he
cancel or return the policy?
Rohit, 17 years old, submitted a
proposal for Endowment plan of Rs.1
lac to AB Insurance Co. In the
absence of an essential ingredient of
Capability of
Capacity to
Legality of object
Offer
a valid contract, the proposal was not
performance
contract
accepted. Which factor caused the
insurer for non-acceptance of the
proposal?
A policyholder wants to change the
nomition after 5 years of the policy.
What would happen

Change not
allowed

Can be done
through
endorsement

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

Policy is taken
under joint life
basis

3:2
135
3:2
136
3:2
137

3:2

Mr. Kumar is taken one life insurance 1. He can not do


policy with ABC Company. But he is
any thing,
not satisfied with the policy benefits.
because be
What Mr. Kumar can do under this
received the
situation?
policy bond.

138

3:2

140

4. All of the
above.

3. He can send
2. He can file a back the policy
complaint
document to 4. Serve notice
against
insurance
to insurance
insurance
company with
company on
company in
in 15 days from policy benefits.
court.
policy receiving
date.

Mr.Shanth has taken an endowment


policy of 15 years with ABC insurance
1. The policy will
3. the policy
4. Mr. Shanth
company. He has paid premium for 4
be renewed on
2. Mr. Shanth
may be
can renew the
years and he could not pay premium
the existing
cannot renew the renewed on
policy only on
for 5th and 6th year. In the 7th year
terms and
policy
different terms the approval of
he approaches the company to renew
conditions.
and conditions
the insurer
the policy. Now which of the following
options will apply to him?

3:2

Which of the following statement is


not true in connection with nomition?

3:2

Which of the following statements in


correct in connection with
assignment?

3:2

Mr. Shanth has taken an endowment


policy of 20 years. He has paid
premium for 10 years and now the
policy is in force. At this point of time
can Shanth take loan?

3:2

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?

142

143

3. an
1. an impression 2. an impression
impression of
of the left thumb of the left thumb
the left thumb
is taken and third is taken and the
is sufficient and
party has to
advisor has to
need not be
attest it
attest it
attested

When an illiterate person wants to


have a policy.....

141

144

4. Telephonic
conversations.

4. A relative of
the illiterate
person has to
sign on behalf
of that illiterate
person.

139

3:2

A nomition is not required if


What is the main source for insurance
1.
3. Conducting
2. Proposal form.
company to get information of
Advertisements.
interviews.
proposer?
What are the factors involved in
1. Number of
2. Number of
3. Sum
calculating Surrender Value of the
years premium
premiums
Assured
Policy?
paid.
payable.

1. The life
insured can
nomite one or
more than one
person as
nominees.

3. A person
4. The section
2. Nomition can
having a policy
39 of the
be done either at
on the life of
Insurance Act
the time the
another should 1938 speaks
policy is bought
make a
about the
or later.
nomition.
nomition.
4. Conditiol
3. Section 45 of
1. Assignee
2. The assignor
assignment and
the insurance
cannot make
need not be
absolute
act speaks
fresh nomition in major at the time
assignment are
about
the policy
of assignment.
one and the
assignment.
same.
2. Mr. Shanth
can take loan
which should be 3. There is no
1. Mr. Shanth will
4. loans are
concept of loan
certain
not be granted
allowed only in
in insurance
percentage of
any loan
term plans
policy
the surrender
value of the
policy.
1. Policy will be
surrendered by
the insurer

2. Policy will be 3. Policy will be 4. Policy will be


surrendered by surrendered by surrendered by
the nominee
the company
the heir

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

Which of the following information


does not appear in the First Premium
Receipt?

3:2

Mr. Raj has taken a policy of 15 year


term. He has paid the premium for 9
1. Converting the
3. Converting
2. Converting the
years. But now unfortutely he has lost
policy to Term
the policy to
policy to Paid up
his job. He is uble to pay the
policy
money back
premium. What can be the best
solution from the following ?

145

146
3:2

Payment of premium and sum


assured are laid down in

3:2

An insurance contract commences


when

3:2

When is premium considered /


deemed to be paid?

147

148

149

3:2
150

3:2
151

3:2

152

3:2

153

2. Date of
4. Date the last
3. Date the
commencement
premium will be
policy matures
of last premium
paid

4. Converting
the policy to
whole Life

4. Schedule of
policy
document.
4. Policy
1. Quotation is 2. First Premium
3. Proposal
Document is
signed by
Receipt is
Form is signed. received by
proposer.
issued.
policyholder.
4. When
1. When insured 2. When cheque 3. When the
cheque is
writes a cheque
amount is
cheque is
posted/couriere
in favor of
deposited in
deposited with
d by the
insurer.
insurer account. insurer office.
insure4.

1. Heading of
policy document.

2. Proviso of
policy.

3. Operative
clause.

Ram Lal is an insurance policyholder.


He has recently shifted his home from
1. Terms &
3.
New Delhi to Noida. He wants the
2. Preamble.
4. Schedule.
Condition.
Endorsement.
address to be changed. This change
in policy document will be effective
through?
Lalu Yadav is having a saving plan
with 20 years tenure. He has paid 5
1. Acquires
2. Contract
3. Moneys will
4. Acquires
annual premiums but due to fincial
surrender value. comes to an end. be forfeited.
paid up value.
crisis is uble to make future premium.
His policy
3. Nomition is
4. Nomition
1. Nomition does
made after
2. Nomition
need not be
not transfer the
policy is issued
How assignment distinguishes itself
transfers the title
informed but
title while
while
from nomition?
while assignment
assignment
assignment
assignment is
does not.
needs to be
does.
done before it
informe4.
is issued.
Manish took a loan from Pankaj of
Rs.10 lac, Pankaj transferred his
Insurance policy to Manish of Rs.10
1. Loan
2. Conditiol
3. Loan
4. Absoulte
lac as a security with the agreement
assignment
Assignment
Agreement
Assignment
Of when Loan is fully paid, policy title
will be revert back to me of Manish is
called:

3:2

Which clause lays down the mutual


obligation of the parties regarding,
Payment of Premium by Life assured
& payment of Sum Assured by

1. Lien Clause

2. Opertaive
Clause

3:2

Prab is not able to pay premium for


continue his policy due to some
Fincial problem, so he rather than
surrendering the policy, what Option
he has to convert .?

1. In to paid up
and reduced
Sum Assured
would be
payable on
maturity.

2.Return of
Premium on
maturity

154

155

1. method and
frequency of
premium
payment

3:2

3. Proviso
Clause

4. Schedule of
Policy

3. Deduct the
underpaid
premium from 4. Policy was
Sum assured subject to lien.
and payable on
Maturity

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

3:2

156
4
157
4
158

Ajay has bought an endowment with


profit plan for 20 year .if he took a
Loan after 5th of commencement of
policy and died before 2 year of
Maturity .what would be payable on
maturity?
While calculating Human life value
(HLV) two components need to be
kept in mind , the one is take home
salary and other is
Annual premium of insurance product
is Rs. 32,000, 4% loading on
Quarterly mode of payment What is
the quarterly premium?

why ACR

1. only Sum
assured

3. Sum assured
plus vested
2.Sum Assured + bonus minus
Bonus
any outstanding
loan/premium
& Interest.

4. Paid up
value only.

Bank Fixed
deposit rate

discount rate

Estimated life
expectancy

Estimated
amount at
retirement

Human Life
Value

HLV assumes if the event happens Today


how much money one should have in the
BANK to get the monthly expenses of the
family to continue .

Pg 95

7680

8000

8320

8500

Premium
Calculations

Adjustment to take into account of


Expenses & profits of the insurer is called
loading

Pg :100

To calculate
Premium

To Calculate the
To help the
To verify the
commission due
underwriter to
Plan proposed
for the agent
asses the Risk

159
160

4
161

In a 20 year with profit policy,persist


ency Bonus is paid at the end of
While Underwriting Mr X proposal , its
found that there has been CRIMIL
case against him in Fraudulent act
.What type of Risk this will be
categorized Into ?

Agent Confidentiality Report is mandatory


as It helps the Underwriters to have
additiol Information about the Proposer
as the agent is in better position having
met / known the client
Persist ency or termil bonus is given at
Types of Bonus
maturity of the policy
Primary
Underwriter

1st Year

10th Year

15th Year

20th Year

Fraudulent
Hazard

Occupatiol
Hazard

Physical
Hazard

Moral Hazard

Types of
Hazards

Moral Hazard relates to attitude or


Intentions & conduct

Pg :91

Pg :101

Mr A wants insurance cover . But he


is drinks alcohol frequently . What
kind of hazard you may categorize?

Physical hazard

Moral Hazard

fincial risk

Pure risk

Underwiting

Physical Hazard refers to the physical


characteristic of the risk associated with
the proposer

Pg :91

Who IS the primary underwriter of


the customer?

Underwriter

Insuranc eCo

Agent

Actuary

Underwiting

Agents are in direct contact with the


Customer and have an important role to
play in assessing the risk

Pg :102

Claim was settled however full Sum


assured not paid though the policy
was in force due to

Lien

Bonus

Surrender

Accidental
death

Underwiting

Lien is a clause where the underwriter


feels the risk will wear out in time

Pg :95

Lien can be considered an altertive of


which of the following

Clause

Rejection

Acceptance

Time barred

Underwriting

what is the special report that is asked


by the underwriter from the officer of
the insurer

HLV report

Client
confidentiality
report

moral hazard
report

medical report

Underwriting

As per the norms of risk assessment


by U/W both the parents of a policy
holder died in their early 30s due to
Heart disease, what is the risk
assessed

Moral Hazard

Medical Hazard

Occupatiol
Hazard

Physical
Hazard

Premium plus
interest earning

Risk premium
plus interest
earning

2.50%

3.00%

162

163

164

165

166

167
4
168
4
169

Pg :102

Net premium is equal to


Where annually increasing flexible
premiums operate under a life
insurance policy, what rate of
increase will generally apply

Risk premium
Premium minus
minus interest
interest earning
earning
5.00%

7.50%

Underwriting

LIENS are clauses which Underwriters


apply to the proposal where they feel the
RISK will wear off after certain time
duration l
Special reports from senior officials or
agents are taken by underwriters
sometimes if the risk on the policy
solicited is high . Informations on
Occupation, habits , lifestyle , income
would be asked through this
Under Physical hazard , the Underwriter
looks into medical history of the family of
the proposer to asses the risk due to
heredity

Pg :95

Pg :90

Pg :91

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

4
170
171

The regulations issued by the IRDA,


require that the decision on the
proposal must be conveyed to the
proposer within
If bonus is given under a plan the
additiol premium added is known as

4
172
173

4
4

174

4
175

Certificate from the village panchayat


rd
What will be lien amount in 3 year
th
as compared to the 4 year of lien.
When an individual gets older,
chances of obtaining life and health
protection will be
What key event is most likely to
prevent insurer from ensuring that
each insured person brings a fair
premium to the pool for the risk
presented?

4
177

4
178

4
179

20 days of
receiving the
proposal

25 days of
receiving the
proposal

Loading

Investment

Frequency

Will be
considered as
standard age
proof

Will be
considered as
non standard age
proof

Will not be
accepted

It is higher

Decrease

Slightly higher

Slightly lower

Increases

Reduces

Remains same

Depends on
insurer

A policy
Assignment

A Fradulent
Claim

A steep rise in
inflation

A sudden
illness

HLV is used as a Yardstick to


determine
While calculating HLV along with
future income, no of years of work,
Inflation.
increments in salary what is also to be
taken in to account?
Vishal and sandeep applied for a
Sandeep has
health plan in XYZ Life Insurance
taken another
Company. Vishal is asked to undergo
policy from XYZ
a medical checkup but Sandeep is not
Life Insurance
asked to do so. What will be most
Company
possible reason?
Mr. Kul used to participate in Car
race. While taking up the Insurance
policy he disclosed this information.
What kind of hazard does it refers to

Physical hazard

181

If the sum assured remains the same,


It rises
what will be impact of net premium if
the age of the policyholder increases
For which of the following reasons,
the underwriter should ask beyond Physical Hazard
agents confidential report.

182

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?

4
180
4

4
183

30 days of
receiving the
proposal

The correct
cover needed to A lump sum
amount that the
compensate
Emotion Loss
economical loss person will get
can be
from the
to their family in
compensated for
insurance
case of death of
company
the earning
member

176

15 days of
receiving the
proposal

Compound reversiory bonus of 4 %


will be calculated on

Risk profile of
both the
policyholder are
different

Sum assured

Interest.

Discount rate

Compounding.

Vishal is older
than Sandeep

Sandeep is
earning more
then Vishal

Vishal is
working in a
MNC

Fraudulent
representation

Moral hazard

Peril

It falls

It remains
constant

Gross
premiums
increases

Moral Hazard

SA is too high

Pure Risk

One has
chosen Single
Both have
Age of both the
premium policy
chosen
candidate are
and other has different kind of
different
chosen regular
policies.
premium policy
Sum assured
plus bonus till
date

Sum assured
Premiums paid
minus bonuses
till date
paid till date

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

184

4
185

4
186
4
187
188

189

190

4
191
4
192

A lien is generally used as a


a high premium
substitute to charging
for a high risk
In a process of completion of an
insurance proposal, an agent finds
Contact the
that the intention of the proposer was
Regulators
not genuine. In this case what should
the agent do?
The documents likely to provide the
underwriter of an insurance company,
the details relating to the previous
subject application, which have been
accepted as non-standard..
In a case, the underwriter felt that the
risk associated with the person would
decrease with time, then he would
accept the case with
Maximum Life cover

Out of all the factors that affect the


needs of different life stages of an
individual, which is the most common
factor that is likely to exist throughout
the life span of an individual?
While calculating HLV along with
future income, no of years of work,
increments in salary what is also to be
taken in to account?

Quotation
Request Form

Proposal Form

Policy
Document

Claim Form

A clause

A Lien

A Loading

Level Premium

20 times annual
salary

500000

1500000

4000000

To see that the


To give truthful
To ensure that
plan as
report to the
his client is not
proposed by
Insurer all
burdened with
the client is not
about the life to
extra premium
changed on
be insured
underwriting

Present value
Difference
of the future
between the
Sum assured is Yearly income is
earnings less
Assets and
the HLV of the the HLV of the
persol
Liabilities is the
proposer
proposer
expenses is the
HLV of the
HLV of the
proposer
proposer

Employment

Age

Marital Status

Liability

1. Inflation.

2. Interest.

3. Discount rate

4.
Compounding.

2. Habits and
Hobbies of
Proposer.

4. Medical and
Persol History
of Proposer.

4. Future value
of previous
earnings.

4. Information
Underwriter.

1. Intentions and
attitude of
Proposer.

Income replacement methods


equates Human Life Value (HLV) to

1. Future value
of Present
earnings.

Agent will be called as..

1. Primary
Underwriter

4
196
197

Inform the
insurer

Moral Hazard reflects the .

194
195

Refuse to
proceed

4
193

Issue a wrong
note

To see that the


proposal is
accepted by the
underwriter at
What role an agent is likely to play in
OR
the process of underwriting?

In insurance, HLV is a known


abbreviated term. How the meaning
of HLV can best be described in
relation to a income earning
proposer?

for reduction in
sum assured

Mr. Rajesh has taken policy from


ABC insurance company for Rs.
500000 Sum Assured by paying Rs.
1. Rs. 2500/50,000 premium per year. Company
declared 5% Simple Reversiory
bonus, what is bonus amount?
The underwriter can get the required
1. Proposal form.
information about the proposer in.....

3. Occupation
and Residence
of Proposer.
3. Present
2. Present value
value of
of future
previous
earnings.
earnings.
2. Main
3. Chief
Underwriter
Underwriter.

2. Rs. 25000/-

3. Rs. 250000/-

4. Rs. 5000/-

2. renewal
receipt

3. brochure

4. annual report

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

Mr. Ramesh works in a mining


company. So he is exposed
to..............

Lien is imposed on a policy when


underwriter feels that......

What does the mortality tables


contains ?

198

199

200

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201

202

4
203
4
204
4
205

4
206
207
208

4
4
4

209
4
210
4
211
4
212
4
213

1. moral hazard

3. mental
hazard

4. Ethical
hazard.

3. the risk
4. the risk
associated
associated
might not be
might be
harmful
general
3. Tables of
4. Tables of
2. Tables of
details of
details of
details of various
underwriters
actuarial
probabilities of
calculation on calculation on
death
death
death
3. He can take
2. Only lung is
insurance after 4. Cannot give
affected so
insurance for
submitting
health insurance
health reason
health
can be given.
certificate

1. the risk
2. the risk
associated might associated might
increase
decrease
1. Tables of
death occurring
in various
circumstances

1. Time of death
Mr. Guptha is recently detected with
is uncertain, so
lung cancer. He would like to take an
insurance can be
insurance. What is your suggestion?
given
Mr.Santhosh working as a head
master who is around 52 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:
Mr.Feroz has applied for an
insurance cover of Rs.4 crores. The
Company will accept or reject the
proposal only after confirming from
one of the following agencies.
The responsibility for classification
and alysis of the proposal form lies
with whom?

2. physical
hazard

3. C. Moral
2. B. Moral
4. D. Moral
hazard, as
1. A . Physical hazard, as he is
hazard, as he is
coverage is
hazard, as he is 52 years old and
a head master
high and
old
wife is not the
and 52 years
brothers son is
nominee
old
the nominee

1. Fincial
Inspection
agencies

2. Specialized
inspection
agencies

3. Credit worth
inspection
agencies

4. Insurance
Investigation
Agencies

2. Classification
4. Actuary who
3. Underwriter
of Risk
alysis the risk
Department
1. The
2. The fincial
In underwriting the economic value of
3. The income 4. Human Life
occupation of the history of his
the person is determined by what?
that he earns
Value
person
family
4. A medical
1. An individual 2. Insurance is
3. A nominee is
checkup is
When an underwriter may consider is proposing SA taken out by an
not a
carried out
Moral Hazard?
15 times his
individual with
dependent. nearby place of
annual income.
dependents.
residence.
Level Premium is calculated based
3. Loading of
4. Gross
1. Risk Premium. 2. Net Premium.
on
Premium.
Premium.
1. Minimum
2. Major Possible
3. Minor
4. Maximum
MPL abbreviates
Possible Loss.
Loss.
Possible Loss. Possible Loss.
What is generally considered as a
4. Level
1. Clause.
2. Assignment.
3. Lien.
substitute to charging a high premium
Premium.
for a high risk?
Jyoti is submitting is copy of
4. Proof of
permanents account number card as 1. Non Standard 2. Standard Age 3. an Address
Income tax
Age Proof
proof
proof
age proof for buying an money back
payer
plan .her age consider as a
Which one of the following bonuses is
1. Simple
2. Compound
3. Persistency
4. Interim
given by insurer as an incentive to the
Revisiory bonus Revisiory bonus
Bonus
bonus
insured to for long term:
Ramesh bought an endowment plan
1. Gross
2. Level
3. Risk
4. Net Premium
for ten year he pays the same Amount
Premium
Premium
Premium
in every year is called:
4. Medical of
Which one of the following is not
2. Insurance
3. neighbor of
1. Proposal Form
examition
source of information about the
agent
proposer
report
1. Risk Alysis
Department

1
4
3

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

4
214
4
215
216

4
217

4
218

4
219
220

4
4

221
5
222
5
223
5
224
5
225
5
226

An underwriter accepts the proposal


with certain modified terms and
coditions,What it denotes
Loading in a term plan is more likely
beacause of

1. Physical
Hazard

2. Moral Hazard

3. Medical

4. No
underwriting

Lien

Counter offer

Decline

Postpontment

Morbidity

Mortality

Admin
expenses

Investment
expenses

better than
better than the
average risk,at average risk ,at
In case of lien,the risk will classified the early stage of the later stage of
as per underwriting standards
life
the life
Sarath is the client and looking for
large SA, and the proposal to be
certified in the context of
confidentiality report with relavent to
moral hazard,who is concerned
person to do!
ACR
Sarath nominee

Higher than the


Higher than the average risk at
average risk,at the later stage
the early stage
of life

Superior of the
Sarth's
insurance
Insurance
agent
company
motoring sport
Moral hazard is motoring sport is
is risk and
motoring sport
Sport and it
risk and
influences
is a physical
influence the risk influences moral
physical
hazard and it
of life
hazard
hazard
influences risk

If a person have motoring sport as


hobby before taking insurance
policy,then what it implicates
If a policy of term 30yrs is imposed
with lien, what will be the lien period
5
A gave an offer to B and B made
modified
changes to the same and returned it
acceptance
to A. It will be called
Hari wants a constant life cover till his
31st birthday. But he cant afford to
Pure Endowment
pay high premiums. The best suited
products for him would be
At the time of maturity , quarter of the
SA is paid though the policy was in
force

Endowment

10

15

20

Counter offer

Rectified offer

Rectified
Acceptance

Anticipated
endowment

term plan

ULIP

Insurance
products

Term product is the simplest and the


cheapest Insurance plan which gives Life
cover

Pg :112

Lien

Money back

Surrender

Insurance
Products

In money back plan , payouts are given


at fixed intervals called survival benefits .
Usually 25% of SA is paid in equal
interval of the term

Pg :117

Micro
Insurance

Term Insurance

Micro
Insurance

Micro Insurance is for Low Income Group


. Product ranges from 5K to 50 K

Pg:113

Ulip Plan

Term Insurance

Protection
Needs

Term Insurance will help in protecting the


future loss of Income

Pg :109

20%

30%

Tax & Inflation

The Proceeds of Life Insurance are


exempted under Sec 10 (10D)

Pg :118

Weekly premiums are generally


Banca assurance Health plans
collected for which type/range of
palns
Mr A is planning to invest and his
needs are :1 Protection for is Income ,
Children Plan Retirement Plan
during his absence 2.children
education
What tax rate,if any,will be applicable
to a life insurance policy holder for the
Nil
10%
maturity proceeds of a Rs 5000 life
insurance policy

A policy holder can pay the premium


of Rs 5,00,000 and what could be the
max tax efficiency he is entitles to

500000

50000

100000

300000

Tax & Inflation

Under Sec 80 C , the max Amount under


Tax deduction through Life Insurance
premium will be Rs 1 Lk

Pg 118

Ram has Invested Rs 5000 in PPF &


Rs 1 Lakh in Life insurance premium .
In which he will get maximum Tax
Benefit

Life Insurance
Premium

PPF

50% on each

95% on Life
Insurance
Premium & 5%
on PPF

Tax
Implications

Under Sec 80 C , the maximum


deductible Income from tax in a given
year is Rs 1 Lk .

Pg :118

227

228

Manish being a sole earning member


of his family not insured himself But
looking for insurance for his son who
is student .there is possibility of

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

5
229
5
230
5
231
5
232
5
233

5
234

5
235
5
236

5
237

5
238
239

5
240

5
241
242

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
without submitting any form of claim,a
life insurance policy holder received
payments of survival then what type
of policy he is holding
what is the special feature of ulip that
ensures customer risk profile for long
time insurance policies
Kamal is willing to pay 60000/- per
annum for his ULIP policy. What
should be the SA in case he wants to
avail the tax benefits
Suresh is suffering from Asthma and
the policy in been done on joint life
basis and the need for nomition under
the plan is less as
After maturity In a Unit Linked Life
Insurance Policy, customer does not
get received Maturity in a lump sum.
What is the possibility of receiving it
in installments if it is not a annuity
plan
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 ?
For assessing the risk of a group
health insurance policy, which of the
following information is the most
critical
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
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
What is the ceiling of tax exemption
under 80 c.
The agent can use the benefit
illustration document to show the
client the projected growth of
investment at the rate of
Suresh has adequate reserve capital
with him and he wishes to protect his
income, moreover he feels that if he
does not die then he would need the
amount. What type of plan should he
opt for?
Frequent switching is not advisable in
ULIP plan because it increase

Fully taxable

10%

20%

Tax fully
exempted

Tax
Implications

The premium should be 20% or less than


20% of the SA to avail the tax benefit of
Sec 10 10 d

Pg :118

ULIP

Term

Money Back

Health

Types of Plans

Partial Survival Benefits are paid at fixed


intervals without any formalities to be
completed by the Policyholders

Pg :117

fund switching

partial with drawl

premium
holiday

riders

Ulip

Ulip offers protection with Investment and


flexibilities to mage the Investment to the
customers

Pg :116

1 lac

3 lacs

2 lacs

1.50 lacs

Joint life policy

Has physical
ailment

He has switched
his fund

He has opted for


He has
Policy was
Settlement
redirected his lapsed on the
option
past premium time of maturity

Endowment

Term

Money Back

Whole of Life

Group lifestyle

Employees

Age of the
group

Medical history
of group

Endowment plan

ROP plan

Whole life plan

Ulip

Less than
20000

More than
20000

Less than 10000 More than 10000

1 lakh

1.5 lakhs

2 lakhs

3 lakhs

6% and 10%

5% and 10%

6% and 12%

5% and 12%

Term Insurance
Return of
Endowment plan
Plan
premium plan

Pension plan

Chances of
lapse

Investment Risk

Risk of death

Uncertainty of
return

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

5
243
244

Mr. Kartik got a job recently, he cant


afford to pay to pay the higher
premium as of now but in future once
Convertible
he settles down with his job he can Endowment plan
pay higher premium. Which one will
be the best plan?
What is the minimum Sum Assured
5000
allowed for Micro Insurance?

5
Pick the wrong answer. In a child
plan:

245
5
246
5
247
248
249

Convertible
money back
plan

10000

15000

20000

After vesting
On vesting date
Deferred date
the contract is
policy has to be
is date on
between the
assigned to the
which the risk
insurer and the
life assured.
commences.
life assured.
2. 10%

4. 30%

3. Age of the
group

4. Medical
history of group

3. Only Bonus
Benefit.
3. Moderate
Returns
3. an
endowment
policy

4. Only Tax
Benefit.
4. Good
Returns
4. a money
back policy

2. when he
3. when he is
survives the term hospitalized

4. when he
loses his job

4. Endowment
plans

2. He can take 3. He can take 4. He Can take


1. He can take
Business Partner
Key man
company
Surety insurance
insurance
Insurance
insurance

1. Salary saving 2. Not a specific


3. Salary
Life plan
plan
insurance plan

4. Salary
Specific plan

For assessing the risk of a group


health insurance policy, which of the
1. Group lifestyle 2. Employees
following information is the most
critical
1. Only Death 2. Only Maturity
Term Insurance Plan will give.
Benefit.
Benefit.
1. High Returns

2. Low Returns

The income of an individual can be


protected with the help of.........

1. a unit linked
policy

2. a term life
policy

251
5
252
5
253
5
254
5
255
5
256
5
257
5
6
259
6

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......
Flexibility like partial withdrawal and
taking premium holidays is possible
with....
Mr. Varun who own a multi chain
company would like to take an
insurance. What will be the best
option for him from the following ?
Mr. Kumar decides that his
employees should have SSS scheme.
What type of plan is SSS?
Manmohan has recently purchased a
house worth ` 50, 00,000 on loan.
Which insurance product you as an
adviser will suggest?
To avail the income tax benefit at
investment stage, premium should be
maximum
Rakesh has bought an Endowment,
Money back, Term & Annuity Plan he
would like to avail Loan from:
In Group insurance plans contract of
insurance between ?
The best way to overcome the
problem of investment decision
depends mainly on peer influence is
A person who has a temporary job
Loss , where should he look for
Investing other than FD

3. 20%

Low risk products give..

260

1. Nil

Convertible
pure
Endowment

250

258

Which tax rate is applicable, in case


of Client pays the premium of 5000/and suffers illness before maturity?

Deferred date is
a policy
anniversary.

Convertible
Term plan

1. when he dies

1. Fixed deposits

2. Unit linked
Insurance plans

3. Term
Insurance

1
2

1. Endowment
Plan.

2. Money Back
Plan.

3. Whole Life
Plan.

4. Term Plan.

1. 10% of S1.

2. 20% of SA.

3. 30% of SA.

4. 40% of SA.

1. Endowment
Plan

2. Term Plan

3. Money Back
4. Annuity Plan
Plan

1. Master Policy
holder & insurer

2. Employer &
Employee

3. Employee & 4. Creditors &


Insurer
Debtors
Go for a low Postponement
By Canvassing
Seeking
investment
of investment
wide peer group professiol advise
tranchee
decision
Debt Funds of
MF

Govt Securities

Equities

Gold

1
1
2

Benefits of
Professiol
Advise

A agent is a Professiol and gives Need


based Solutions

Pg :128

Emergency
funds

Investment for emergency funds should


be invested in saving products that offer
easy liquidity and can be converted to
Cash without much loss in value

Pg: 138

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

RBI increased interest rates 2 times


then the stock prices

increase

decrease

volatile

same

Implication of
Interest on
saving products

Increase in Interest rates will bring the


stock price down

Pg :137

5 year

4 year

3 Year

2 Year

Income Tax
1961

To avail Sec 80 C of IT 1961 , the FD


duration has to be 5 or 10 Years

Pg 136

20000

24000

28000

32000

Increase
gradually

Decrease
gradually

Remain
Constant

Change as per
market
fluctuation

Saving
Products

Investment is made in Lump Sum and


the Interest rate is Fixed at the time of
Inception

Pg 135

10- 20 gms

20- 50 gms

50-100 gms

10 gms

Saving
Products

1 unit in ETF represents One Gram or


Half Gram of Gold

Pg :135

Taxation

frequency of
payment

interest rates

tenure

Saving
Products

Three types of deposits :cumulative ,


recurring & traditiol . Rate of interest
varies .

Pg :133

Post Office

Internet

Mutual Fund
Office

Saving
Products

NSC . Kisan Vikas Patra , PPF etc can be


brought from Post office

Pg 135

Tax

Interest tax

Tenure

Saving
Products

In cumulative Deposits , Interest is


calculated quarterly

Pg :113

in ULIP policy

in EPF

same efficiency
for both

Both do not
give tax
benefits

Tax & Inflation

Life Insurance gives 80C Tax Benefit on


Premium and 10 10 D on Claims

Pg 136

50000

75000

100000

200000

Tax
Implications

Under Sec 80 C , the maximum


deductible Income from tax in a given
year is Rs 1 Lk .

Pg :136

Types of
Saving
Products

Good returns , Portfolio diversification


,hedging against Inflation are the other
reasons for ETF

Pg :135

Types of
Saving
Products

Debt instruments caters to Saving and


secure income

Pg :138

261
6
262
6
263

6
264
6
265
6
266
267

6
6

268
6
269
6
270

Ramesh has invested in Post office


Monthly Income Scheme. The interest
rate was set at 6%. What will be the
effect of rate in going years.
A person is holding 100 GOLD ETF
certificates . How many grams of
GOLD does he Have ?
A customer while investing in to
Recurring deposit or Cumulative
deposit what are the key factors which
will matter
A person planning to invest in Kisan
Vikas Patra will go to
If a person chooses Cumulative
deposit than Recurring deposit
,difference will be in
A policy holder pays identical
premium amount for ULIP and EPF
where he gets max tax efficiency
Investing in ULIP plans exempts a
maximum up to what limit for Income
Tax

Insurance
Branch
frequency of
interest
calculation

Suresh wants to transfer his physical


gold to gold exchange traded fund,in
relation to access,this change will

not hedge
against Inflation

Decrease his
liquidity

An Investor has invested in Debt


mutual fund,he is ideally looking for

Equity return

Fixed Income

Stable income

Savings
income

Recurring
deposits

Cumulative
deposits

Term Deposits

Quarterly

Half Yearly

Annually

Discounted
Value

Principle amount

Discounted
Value with
persistency
bonus

Principle with
persistency
bonus

Administrative
charge

Inflation

Interest rate

Market Risk

He will get tax


benefit up to
5000

He will get tax


benefit up to
25%

271

272
6
273
6
274

6
275
6
276

6
277

A person Wants to invest in a FD for


Tax benefit , How many years he has
to take the term of the FD ?
aditya wants to take home loan and
his monthly take home is 80,000 what
as a best practice should be the
maximum EMI

With this type of deposit the bank


pays the principal and the total
Traditiol deposits
interest at the end of the term
In Cumulative bank deposit the
interest that in normally compounded
Monthly
on what basis
Amit has taken a G-Sec and has
parted with it mid way as he required
the money with the intention of not
getting the interest. What will he get?
And received post taxation 5% return
on his fixed deposit in a bank. If his
net return is 3%, what can be the
reason
An elderly person wants to use tax
efficient investment and invests in
senior citizen saving scheme. Its the
impact in his taxation

Reduce his
Insurance
encasement for
against
next six months Uncertainties

His investment
He will get a
would be
reduction in tax
deducted from
slab
taxable income

Prioritizing
Care should taken that the EMI do not
Saving Needs exceed 40% of monthly take home salary

Pg :139

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

6
278
6
279
6
280
6
281
6
282
6
283

Mrs. Sheela received some amount


out of her husbands death. In such a
situation what will be her prime focus?
If a person want to maintain
emergency funds the best place is a
bank or

What is the advantage of converting


physical gold assets to gold ETFs.

Suresh wants to transfer his physical


gold to gold exchange traded fund,in
relation to access, this change will
A client has his investment in equity
shares. Agent advises him to keep it
in equity based mutual fund. This will
make the risk

284

285
6
286
287

If a policy with premium of Rs 5000


has matured, how much will be
deducted when the maturity claim
arises
When a person is investing in Debt
Mutual Fund, what is the primary
objective
Payment/Investments in Kishan
Vikash Patra under post office
schemes
What is the similarity between
Recurring Deposits & cumulative
deposits in a bank

6
6

288
6
289
6
290

Bank interest is accumulated

Nil

1%

5%

10%

Good Returns

Regular Income

Safety

Liquidity

Lump Sum for


fixed period of
time

Regularly for
fixed period of
time

Regularly with no Lump Sum with


fixed term
no fixed term
Guarantees

Taxation

Tenure

Lock in periods

Savings

Insurance

Investment
magement

Planning for
pension

Equity market

ULIP

Debt mutual
fund

FD

Liquidity

More gold in
value

Purity

More
conversion
value

Increase his
liquidity

Decrease his
liquidity

Diversified

Lessened

Increased

Monthly

Yearly

Quarterly

Bank savings account earn


Monthly
cumulative interest at what frequency
If I invest in a G sec partway(ignore
periodic interest payments).I will get Prinipal amount
on Maturity
And received post taxation 5% return
on his fixed deposit in a bank. If his 1. Administrative
charge
net return is 3%, what can be the
reason

Reduce his
ability to
Create a future
encash for next exit liability
six months

1
Once in 6
months

4
1

Discuss

2. Inflation

3. Interest rate 4. Market Risk

Who will maintain Mutual Fund


Schemes?

1. Mutual Fund
Magement
Societies

2. Mutual Fund
Magement
Systems.

3. Asset
Magement
Companies.

4. Asset
Maintence
Company
Limite4.

Which is the primary saving need


among all saving needs?

1. Insurance

2. Purchasing
House

3. Investment.

4. Contingency/
Emergency
Fund.

Mr. Rao has Rs. 10, 00,000 cash with


him. He would like to 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?

1. Insurance

2. Shares

3. Fixed
Deposit in Bank

4. Mutual
Funds.

291

292

293

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

The disposable income means......

294

2. through
internet

3. corporate
agents

4. call centers

Mr. Rajgopal has invested some


money. He has been informed clearly
about the tenure, interest rate and
1. Life Insurance
method of payment of interest at the
inception of the investment itself. His
investment may be in.....

2. Mutual fund

3. Shares

4. Bank
deposits

2. Risk
Diversified
Insurance

3. Shares

4. Risk Sharing
insurance

2. Capital Profit

3. Capital
Benefit

4. Capital
Variation

6
297
6
298
6
299
6
300
6
301
6
302
6
303

The concept of Risk diversification is


1. Mutual Fund
applicable in which of the following
instrument ?
Ajay bought a share for Rs.110 and
1. Capital
he sold when it was Rs.630.What had
Appreciation
happened to his share?
Which of the following cant be
1. Pension
ducted under section 80 c from
Funds
taxable income?
Who act as an intermediary by
1. Bombay
offering a trading platform for buying
Share exchange
and selling of shares?
1. Amount of
The savings needs of a particular
disposable
individual is majorly determined by
income.
For his investment need, Ravi has
parked funds in equity. The returns
1. High Risk.
from this form of investment can be
categorized as
While calculating the expected
returns from investments and savings,
1. Taxation only.
an individual should make provisions
for

2. Public
Provident Fund

3. Employee 4. Infrastructure
Gratuity Fund
Bonds

2. Bombay Stock
exchange

3. Stock
brokers

4. Share
brokers

2. Current
assets.

3. Current
liabilities.

4. Duration of
investment.

2. Low Risk.

3. Moderate
Risk.

4. No Risk.

2. Inflation only.

3. Taxation &
inflation both.

4. No provision
is require4.

Time deposit account is issued by:

1. Post office

2.Bank

3.Mutual Fund

4. Life
Insurance co.

Pankaj want to save tax over and


above the deduction allowed under
section 80C of the income tax act
1961, which allow deduction from
taxable income

1. Corporate
Bond

2. Infrastructure
Bond

3. Health
Insurance

4. Interest paid
on education
loan

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:

1. Saving
Deposit

2.Cumlative
deposit

3. Traditiol
Deposit

4. Fixed
Deposit

Bonds

Fixed Deposit

Mutual Fund

KVP

Investment
Frequency

Interest Rate

Look in period

Taxation

Commutation
Option

Differed Annuity
Option

Guaranteed
period option

Open Market
option

305

306
6
6
308

7
309

4. the sum of
one's all
investment

Which of the following ways is easier


1. through
for a person to take a saving product? individual agents

296

307

3. the annual
bonus amount

6
295

304

2. the amount
1. the surplus
that can be paid
amount that can
towards one's
be invested
EMIs

Sanjeev in a lumsum investment is


getting benefit of multiple securities
If the client prefers bank fixed deposit
rather than cumulative deposit ,due to
what implication ?
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

Discuss

Discuss

3
1

Annuities

Open market option allows the Annuitant


to get the best scerio by taking his/ her
annuity from other companies

Pg :155

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

what frequencies can one take


annuity

All ULIP pension plans have to give


how much percentage as Guaranteed
returns

310

fortnightly,quarte fortnightly,mont
monthly,quarterly
rly,monthly,yearl hly ,half yearly,
,half yearly,
y
yearly

4.50%

Yearly Only

10%

Annuities

Most of the people choose Monthly Mode


though

Pg:157

Annuities

As epr IRDA regulation post 1st Sept


2010 , The minimum Guaranteed returns
in a pension plan has to be 4.5% . The
insurer will have to invest very prudently
to get this %age return

Pg :157

Annuities

Open Market Option allows the Annuitant


to look at the best Rates in the market
from other Insurance companies before
taking the pension payouts

Pg :156

6%

9%

Yash wants to take open market


option in Pension plan. What is the
benefit?

To save tax

To switch the
underlying fund

Commutation option allows the


annuity policy holder to with draw

25%

50%

40%

33%

Annuities

joint life policy

pure
endowement
policy

policy of
another person

Annuities

Pre existing
illness

risk

premium

Health plans

cash
encashment

discount in the
next premium

increase in the
cover level

certain policy
exclusions

Health plans

No claim bonus is a feature of health


plans in which if no claims are made in a
policy year , the insurer will give some
discount on the next renewal premium

Pg :151

Only Danny

Danny & his


Wife

Danny , His
wife ,His
children

Danny's family
and his parents

Health Plans

Family members can be covered under


One Umbrella . However some Insurance
Companies will have specified the
number of members one can take under
Family floater

Pg :150

On the
expenses
incurred daily
due to critical
illness

Health products

Fixed amount is paid on hospitalization


on a daily basis

Pg :150

311
For improved To continue life
annuity rate
cover

312
313

7
314

commutation is a feature of which


type of policy

annuity

Waiting period in a health insurance


Age discrepancy
policy is to address

Under a health insurance policy,if a


policy holder needs to avail his no
claim bonus, how can that be done

Danny is married and has two children


aged 6 & 10 , His parents are aged 68
&70 . Who all can be included in
Family floater option of a health plan

Implication of Daily Hospitalisation


benefit paln

Fixed amt daily

SA

Amt for
particular
diseases daily

Rupkumar wants to take


Commutation option. What is the
maximum amount he can withdraw

one sixth

one third

25%

15%

Pension Plans

termited

continues as it
is

New critical
Illness Rider
has to be
added to base
Policy

Riders

315

316

317

318

319

Under Sec 10 10 A , Commutation , you


can withdraw 1/3rd of the Corpus Tax
Free
Lump Sum SA of the rider benefit is paid
on diagnosis of the critical illness as per
the Rider Feature and subsequent claims
under it will not be paid as the rider
termites

Pg :156

Pg :156

Pg:151

Pg :156

Critical illness rider was taken and the


Reduced the the
rider benefit has been claimed , the
base SA
rider benefit now gets

A person has taken a term insurance


of 4 Lac. What is the maximum
Critical Illness Rider he can take

1 Lac

2 Lac

3 Lac

4 Lac

Riders

Benefits arising of the Riders cannot


exceed the Base Plan SA

Pg :155

Mr. Sharma buy term insurance policy


along with Accident and Disability
benefits rider cost restricted upto the
base premium of the policy?

20%

30%

40%

50%

Riders

According to IRDA regulations Premium


of all riders taken together should not
exceed 30% of the base policy premium

Pg :155

33%

Pension plan is
not eligible for
tax exemption

100%

20%

Tax
Implications

Under Commutation , person can take


1/3rd of the corpus amount Tax Free at
vesting date under Sec 10 10 a

Pg 157 :B6

entire life term

till 5 years and


continue till
annuitant lives

Types of
Annuity
Payment

Pension Payout is fixed for certain period


guaranteed like 5,10,15,20 and then till
Life of the annuitant

Pg:156

320

321

322
7
323
7
324

One third of the Corpus can be withdrawn


on vesting date Tax Free
Commutation allows the Annuitant to
withdraw 1/3rd of the corpus amount Tax
Free at vesting date
Most Insurer have waiting Period in the
health Plans for covering any pre existing
illnesses

Mr.Ramesh invested Rs:50000 in


pension policy, what is the percentage
he can avail as exemption in Income
tax.
In a Guaranteed annuity option of 5
years , the policy holder will get
annuity till

annuity only for


premium
5 years
payment term

Pg :154

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

7
325

The Premium on all riders put


together should not exceed

How riders will help the customer in


life insurance

326

327
7
328
329

How the Daily hospitalization cash


benefit will provide benefits to
policyholder who is hospitalized
7

331

The premium for accidental death


benefit rider must not exceed

Under the hospital care rider what is


the payout made

332

7
333

7
334
7
335
336

allows
policyholders to
customize their
insurance cover
with additiol
benefits

20% of the
30% of the
40% of the
premium on the premium on the premium on the
base policy
base policy
base policy

Rider is like a
clause

Operative
clause

One person wants to take term plan


for 20 lakh and wants to take ADB
rider, he is not sure of how much sum
assured he needs to take for ADB
rider. What is your suggestion?

Rider is like
Preamble

Only surgery
expenses are
included in
daily
hospitalization
benefi

No change in
policy

Children Only

Entire charges
are refunded

A fixed amount
on a daily basis
Entire charges
is paid
Only Hospital
less bed charges
irrespective of bill will be paid
will be paid
the actual cost
of treatment

15% of base
policy premium

25% of base
30% of base
40% of base
policy premium policy premium policy premium

The insurance
The insurance
The daily amount company may
company will
pay an additiol
paid is fixed and
pay for doctor
amount on a
In Daily hospitalization cash benefit
will never be
daily basis if the consultation
scheme
more or less than
fees incurred
insured is
the cost of actual
prior to
admitted to the
treatment
Intensive Care hospitalization
Unit (ICU)
CI benefit
In term insurance if Critical illness
CI benefit will
CI benefit
reduced from
rider claim happens then what will
cease
continues
existing sum
happen to existing policy
assured
Family floater health Insurance plan All members of a Husband and
Parents only
covers
Family
Wife only

330

10% of the
premium on the
base policy

Specified
amount
10% of the sum multiplied by the
assured
number of days
the policyholder
is hospitalized
Needs to take
experts
suggestion

Number of days
admitted in
hospital &
surgery
expenses in full

Equal to base
cover

Number of days
Treatment cost
admitted in
of surgery
Lump sum
hospital &
subject to
amount what
surgery
terms &
he has incurred
expenses in
conditions
partial

Need not to
claim

Need to switch
to the another
insurer

Both non life


insurance

Nonlife and life


respectively.

What are the benefits to the


policyholder Under Surgical care
rider?
Health insurance policy holder takes
Need to spend
treatment in a hospital which doesnt
Need to add that
and Get claim
have cashless facility. How the policy
hospital as TPA
from the insurer
holder will get benefited
Health insurance rider and critical
Life and non life
Both life
illness rider in classified under
respectively
insurance

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

7
337

7
338
7
339

7
340
7
341
7
342
7
343
7
344

In a pension plan illustration what are


the parts which shows the benefit for
an annuitant.

346

7
347
7
348

349
7
350

Annuity part

The lump sum


The lump sum
withdrawal
withdrawal
before receiving
before receiving
periodic
installments of maturity benefit
What is commutation of installments
annuity
Cost of
Life is very
healthcare has
uncertain
increased
Health Insurance is needed because
significantly
Rajan and Rajini has taken a Family They would get
Floater health insurance Plan of 4
The claim will
the claim of 6
lacs. They met with an accident and
depend on the
lacs since the
had a hospital bill of 6 lacs. Which is individual cover
surveyor
true for this situation:
is 8 lacs
Open market option under Annuity
Ensure Better
Increase in the
policy would extend which of the
annuity rate
range
following benefit?
Ajit and vijit are 2 friends paying
Ajit is above
same premium for health insurance. 65years of age
Ajit is NRI and
Why ajit has higher tax exemption
vijit is Indian
whereas vijit is
eligibility than vijit
below 65
While calculating retirement fund
required for a self employed person
His standard of
Gratuity amount
which of the following option will
living
automatically be ruled out
In case of pension plans a guaranteed
minimum return of 4.5 % is applicable
Indexed
Guaranteed
when the plan is

345

Insurance
coverage

Which of the following is true


regarding Family Floater Health
Insurance Plan?
In what proportion is the cover in a
Family Floater Plan shared?
The rider which is given by the
Insurance company pays for the
treatment costs in the event of
hospitalization of the insured person
is called
Mr. X is married with wife, 2 children
and aged parents Health premium is
allowed for

Guaranteed
and non
guaranteed part

Vesting age

The lump sum The lump sum


withdrawal
withdrawal
before
before
receiving
receiving Death
Survival benefit
benefit

Premium
increases with
age

Rajan will get a


The maximum
claim of 3 lacs
claim will be of
and Rajini will
4 lacs
get 1 lacs

Increase in
return

Switch of
Funds

Ajits health is
better than vijit

Unit linked

The insurance
cover is shared
Any number of
amongst the
people may be
family
covered in this
members in no
plan.
fixed
Proportion

A Family Floater
Plan is the same
as a Individual
Plan

Only self and


spouse can be
covered in this
plan

25% each

15% each

50% each

No Proportion

Critical Illness
Rider

Hospitalization
Care Rider

Accidental
Benefit Rider

Surgical Care
Rider

X only

X with wife

X with wife and


kids

X with all

Person
receives
Person receives
Person
Person receives
benefit only if
fixed amt daily
receives a
an amount equal
he is
for no of days in
fixed amount of
to the expense.
hospitalized for
hospital
1000
daily.
Hospitalization rider has the following
3 days
benefit:
minimum
In a Health insurance plan what the
particular feature is likely to cause the
Cashless facility
Exclusion
No claim bonus Waiting period
Insurer to decrease the Renewal
premium?

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

7
Daily hospitalisation benefit:

351
352

7
353

7
354
7
355

356
7
357

Which of the following product not


comes under Section 80 ( C ), income
tax act 196
Mr. Suresh purchase one pension
plan and accumulated Rs. 9,00,000
amount in his pension fund. He would
like to utilize commutation benefit
before taking pension. What is
amount Mr. Suresh can withdraw as
commutation?
Customer has to pay the amount in
regular intervals to create purchase
price or Pension Fund. We call this
phase as..

4, 85, 468/-

1. Collection
Phase.

2. Accumulation
Phase

3. Pension
Phase.

4. Primary
Phase.

Mr. Govind, Advisor with ABC life


insurance company find out one client
is seeking solutions for health care
and inheritance planning. Which main
life stage he most likely to fall into?

1. Young
Unmarried.

Mr. Ramakant is 35 years old. He


has bought retirement plan for 20
years. This type of pension plan is
known as..................

90,000/-

1. Taking Life
Insurance plan
with Critical
Illness Rider.

361

4. Surgical
Care Rider

4, 50,000/-

Which of the following is not a


feature of WOP rider?

. 3, 00,000/-

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?

4. not
remembered

2. Equity Linked
Saving
Schemes.

1. Family Health
Insurance Plans

360

1. tiol Saving
Certificates.

Some Health Plans will give


coverage for family members also.
We will call these plans as..

359

ADB rider premium cannot exceed


Customer has opted for a 5 yrs
2. annuity will be
guaranteed annuity option. What will
1. paid up to 75
continued for
3. till he die
happen to annuity, if the customer
Yrs
next 5 Years
survives for 5 years after the end of
guarantee period?
The rider which is given by the
Insurance company pays for the
1. Critical Illness 2. Hospitalization 3. Accidental
treatment costs in the event of
Rider
Care Rider
Benefit Rider
hospitalization of the insured person
is called

7
358

362

No of days spent
in hospital
multiplied by
Daily
hospitalisation
benefit
30% of the base
premium

3. Principle
4. Premium
component of paid for Health
home loan. Insurance Plan.

3. Family
4. Family
Floater Health
Rakshak Health
Insurance
Plans.
Plans.
4. Taking
Hospital
2. Taking Health 3. Taking MediBenefit Plan
Plan, Insurance claim plan with
with
Plan separately. Life Insurance.
Endowment
Plan.
2. Total
Protection
Policies.

2. Young married
3. Retirement.
with children.

4. Children.

2. This rider is
1. The rider
ideal for helping
waives future
3. The main
to prevent a
premiums in the policy lapsing
strength of
4. WOP rider
event of the
WOP is the
can be offered
due to nondisability or
payment of full with all plans
payment of
death of the
premiums due to sum assured.
policy holder.
death or
disability
1. immediate
annuity

2. life annuity

3. deferred
annuity

4. joint life
annuity

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

3. When Mr.
4. When Mr.
Ranga's family Ranga dies due
member will be to severe road
in critical illness
accident.

Mr.Feroz has taken policy for critical


illness worth Rs.1 lakh in health
1. claim of
2. claim of
3. Claim will 4. Claim will be
policy. He also has a term plan worth
critical illness
hospital charge
not be settled settled as per
Rs.10 lakhs. Mr.Feroz was
and 10 lakh from Rs 20,000 and 1
as he died due the instructions
hospitalized after he was detected
term policy will
lakh for death
to cancer
of underwriter
with cancer .Unfortutely he died after
be settled
will be settled
3 days of treatment. How the claim
will be settled?

Which one of the following cannot be


covered under Critical illness rider?

1. Blindness

2. Paraplegia

3. Coma

4. Brain
Surgery

Mr. Yash has taken an annuity on


25th August 201The benefit of the
plan will start from 25th August 201
What type of annuity plan is this?

1. Guaranteed
period annuity

2. Life annuity

3. Deferred
Annuity

4. Immediate
annuity

Rohit is working as sales mager with


an FMCG company. His job requires
him to travel across states. He is
planning of covering his additiol risk
involved while travelling and a
savings plan. What suggestion would
you give him as an agent?

4. To purchase
a medical plan.

7
363

364

365

366

367

7
368

7
369

Mr. Ranga has taken Critical Illness


Rider. In which of the following
scerios the insurance company will
pay him......

1. When Mr.
Ranga dies due
to critical illness

2. When Mr.
Ranga is
diagnosed a
critical illness

1. To purchase
2. To purchase a
3. To save
an accidental
health plan along through fixed
rider with a
with a savings
deposits in
savings
insurance plan.
bank.
insurance plan.

3. The
The general need for purchasing a
2. The premium premium may
4. The
1. The premium
health insurance plan at an early age
remains constant increase or
premium
decreases with
results from which of the following
with increasing decrease with increases with
increasing age.
factors?
age.
the increasing increasing age.
age.
The life expectancy in India is
constantly improving and is well
2. Bank fixed
3. Health
4. Savings
1. Equity.
above 60 years. This also brings
deposits.
insurance plan. insurance plan.
along challenges. These challenges
can be covered through

And has purchased a pension plan


which is nearing completion of
accumulation phase. He is in need of
finces to make down payment of car
he wants to purchase. At the end of
accumulation phase how much he can
make tax free withdrawal?

1. 1/5th of
accumulated
amount.

2. 1/3rd of
accumulated
amount.

Which of the following is not featured


and benefit of rider?

1. Providing
additiol cover

2. Maturity
benefit

Gaurav bought an endowment plan


for 20 year of 10 lac SA with ADB
Rider, died in road accident after 10th
year how much money claimant would
be payable:

1.10 lac

2. 20 lac

3.30 lac

4.5 lac

Under what kind of Rider the


insurance company pays the
treatment cost in the event of
hospitalization of the insured, subject
to term & Condition of the rider.

1. Accidental
death benefit
(ADB)

2. Critical illness
(CI)

3. Hospital
Care (HC)

4. Term Rider.

370

371

372

373

3. 2/5th of
accumulated
amount.

4. 2/3rd of
accumulated
amount.

4.
3. Nomil cost &
Customization
flexibility
and tax benefit.

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

7
374

7
375
7
376
7
377
7
378
7
379
7
380

8
381

8
382
8
383

1
Rider

Continouation

Subsidiary
Will get
lumsum
Per day Hospital Per day Hospital
benefit
Cash Benefit
Cash Benefit
Respective to
irrespective to respective to
surgery have
In Surgical benfit rider what would be
the surgery
the surgery
the payout procedure
made
made
been made
A Critical Illness claim is settled in a
policy. The benefits of the policy can
For Repairing
Only For
be used for
Only for Illness
house
Doctors fees
If a health rider is taken in a policy,
maximum rider premium can be
%age of base premium
25%
50%
75%
In a pension policy if agent says the
cost would be 120% of present value
if he invests for 10 years, this is due
to
Charges
Compounding
Taxation
Under daily hospitalisation cash
Special
benefit scheme the amount payable is
Change in
consultant
Admission to
increased due to what reason
hospital
charges
ICU
Extensive
Insurance addresses the needs of
Extensive
Restricting the
underwriting at
people with risk of living too long by.. documentation max age at entry
inception
Public sector
Why do Self Employed Individual
employees enjoy Self Employed
Public Sectors
have the need to buy Medical
people do not
Medical
do not get Sick
Insurance rather than People working
have Sick
Insurance
often
in public Sectors
Leave
Covers related to
Job
Mohit has two kinds, one of 6 years
and other 8 years.He is the earning
Health policy for Health policy for Life insurance
member and not having life cover.
child
wife
policy for wife
Before advising him to take health
policy, what he should be advised.
Manoj a 26 year old is having 7 years
Margilly
Singnifcantly
less than after
old son. What will happen to his
decrease
increase
15 years
monthly disposable income after 15
years of job

discount

3
Irrespective to
the sugery
4
Not specified
4
100%

Premium
increase

3
Retirement and
pension plans

Loans are
available faster
for Public
sector
EMPLOYEES

factors
affecting Life
stages

Public sector makes provision for PPF ,


health

Pg:172

Life Insurance
policy for
himself

Life stages

Protection of Asset is the most factor

Pg :170

will remain
same

Life stages

The Income earning capacity keeps going


up there by allowing the disposable
income to increase as the time goes.

Pg :164

Samir is married and he has only one


partner,with dependant parents and
no child,which should be his priority

income
protection

inheritance
planning

investment
efficiency

long term
savings

Life stages

Single Income family , Insurance


protection is very important

Pg :168

The sole focus during a clients factfind session was healthcare


requirements and estate planning.
Which main life stage is he most
likely to fall into?

Young married
couple

Young married
with children.

Pre-retirement.

Retirement

Life stages

The clinet needs @ Retirement age is


Investment to get regular income , estate
planning and revisiting the health
insurance plans to see their adequacies

Pg :170

A Couple has 7 years old son, What


solution would they be looking for

Retirement

health care

child education

life cover

Life stages

Along with Life cover , child education


planning is important stage

Pg :168

Childhood

Young Married

Pre Retirement

Retirement

Life stages of
Clients

Children normally do not have their own


Income source

Pg :167

Charges

Interest

Inflation

Taxation

Fact finding

The Electronic benefit Illustration gives


all information of Returns , Charges

Pg:194

Young

Pre- retirement

Retirement

children

384

385

386
8
387
8
388
389

The risk of unemployment is covered


with what benefit in the policy

In which of the recognized life stages


an individual does not required any
protection cover
Benefit Illustration given to a
customer quantifies an amount by
which investment return is reduced.
This reduction reflect the impact of
Life insurance is the most important
for which age group

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

8
390
391

8
392

8
393

8
394

Ashish is looking at different plans of


insurance for protection at the lowest
premium. Which is the best plan for
him?
During Fact finding, rating is
mentioned 3. This Indicates
Shailesh and ankit want to retire in the
age of 65yrs. But shailesh pays more
monthly payment than ankit. Why?
During fincial 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.
Ajay and Vijay both are unmarried.
Ajay has dependant Parent. Which
need Ajay must take care of on
priority, although that will not be a
priority for Vijay?

Term plan
Risk apatite of
client
Shailesh is very
older than ankit.

Endowment plan Whole life plan

Money back
plan.

His future
Commitment to Willingness to
aspiration
need
pay
Shaileshs
income is more
than Ankits
income

Emergency
funds

Income
protection

Retirement plan

Health insurance
for parents

Term
Assurance

Endowment
Plan

397

Manish and Manisha is a married


couple with one child. They want to
plan for savings, child
education/marriage and their
retirement and protection of income.
Which should be their lowest priority?

8
398

8
399
8
400
8
401
8
402

During fact finding, What will be the


next step after Identifying clients need
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?

Marriage

396

395

Childs education

Real needs are


Real needs are
needs which
Real needs are
identified by
Real needs are
satisfy an
actual needs and the insurance
fincial needs and
objective and
perceived needs
agent and
perceived needs
perceived
are based on a
perceived
are non-fincial
needs are
clients thoughts
needs are
In the context of fincial planning, how
needs.
needs which do
and desires.
identified by
is the difference between real needs
not satisfy an
the
client.
and perceived needs best described?
objective.
If a person is concentrating more on
Young married
health plan and retirement plan then Young unmarried Young married
Pre retirement
with Kids
at which stage of life is he in.

Marriage.

Savings.

Education.

Protection.

Quantify clients Priorities Clients Recommending


Fill up the
need
Need
Product
proposal form

Money Back

Term Plan

Endowment
Plan

ULIP

Sumit is having 2 children. He wishes


Individual
Group health
A family floater
Life insurance
to have health cover for himself and
cover
insurance plan
his wife. Which suits him the most?
A client has got some funds and
Depends upon
Depends upon
wants to provide for retirement and
his actual age
Margin money Retirement plan
the amount
margin money. What should be his
and years left
needed
priority
for retirement
While planning for retirement fund to
calculate the required amount needed
The inflation rate The interest rate
His income
at that time we should consider as
priority

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

8
403
404

405

8
406
8
407
408
409

8
8

410

Ajay is 35 years old. He wants good


amount of life insurance cover along
with savings element with no defined
Endowment
term. Which plan should be
suggested
The income of an individual can be
a unit linked
protected with the help of
policy
A married couple having 9 year old
child have to consider life insurance,
health insurance, child investment &
retirement plans for their better future Child Investment
as a family but at present condition
which aspect should be kept at lowest
priority?
After completing a Fact Finding
activity for a client, who is self
It affects the
employed, the main reason why it is
basic cost of
important to record the type of work
cover
that he is involved in is
Mr. Shyam is having 9 year old child.
Which product is not to be given
Health plan
priority?
What is the major reason for self
Save Tax
employed to take insurance.
What is the major reason for
Need alysis
conducting fact finding exercise?
veen, aged 32 years, has taken
money back plan. He is a teacher by
profession. veen referred Prasad to
Ram. Prasad is also teacher. Ram Yes, as veen and
who is an agent advised Prasad to Ram are of same
age.
take money back plan as he is of
same age (33 years). Is it the right
advice? Why?

412

413
8
414
415

Moneyback

a term life policy

an endowment
policy

a money back
policy

Health Insurance Life Insurance

Retirement

Dictate the Rider


Helps to
Benefit should
quantify the
be
clients attitude
recommended
to risk

Influence the
tax status

Retirement
Plan

Life Insurance

Fluctuating
income
Understand
about company

High Returns

Protection

Introduction of
agent

Understanding
the Customer

Yes, as both
are teachers

No, as there is
an age
difference.

Age increases, Age increases,


Risk decreases Risk decreases
and the Risk
and the Risk
appetite
appetite
increases
decreases

Regular savings creates a fund to


meet adverse incidents in future. For
Fund for
Retirement fund Emergency fund
Education Fund
drawing a fincial plan for savings
untimely death
needs of an individual without capital,
what is the Fund which comes first?

By addition of
By addition of By addition of
Accident Benefit
Term
Premium
rider to the
assurance rider waiver rider to
proposed
to the proposed the proposed
Endowment
Endowment
Endowment
assurance plan assurance plan assurance plan

There is a relation between Age, Risk


and Risk appetite. Which relation is
most likely to be acceptable?

Whole life

Child Plan

411

Term

A Proposer asks for double death


benefit in an Endowment assurance
plan for 15 years. How his proposal
will suitably be dealt with?
A provision for superannuation is
normally taken a high need to
A person has 6 months of emergency
funds.This is:

Age increases,
Risk increases
and the Risk
appetite
increases

By offering
another
Endowment
assurance plan

a Public sector
employee
Reasoble

No, customers
needs are
different

Age increases,
Risk increases
and the Risk
appetite
decreases

an unmarried
young

A selfemployed
person

A Government
employee

3
1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

During fincial 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.

1. Childs
education

Perceived needs are those.

1. Short term
needs.

416

417

8
418
8
419
8
420

421

8
422
423

8
424

3. Emergency
funds

2. Imagined to 3. Imagined to
be important by be important by
Advisor.
client.
2. Capacity to
pay the
premiums in
future.

3. Existing
insurance
plans.

4. Income
protection

4. Long term
needs.

4. Family and
Employment
details.

Mr. Shanth is in his early 20s and has


1. high
2. low
3. normal
4. Neutral.
just started earning. His risk appetite
is expected to be.....
The younger the age of an
1. the lower
2. the higher
3. the smarter 4. the superior
individual..............their liabilities will
be.
Mr. Ramachandra's son Mr. Bharat
has just employed as a software
3. Married with
engineer, daughter Anusha has got
1. Pre-retirement
2. Post
4. Employment
older children
married. Now Mr. Ramachandra is
stage
retirement stage
stage
stage
free from his burden. So Mr.
Ramachandra is now in the
...................stage.
Mr. Vinodh has lot of inconvenience
to reach office every day. So he
2. Perceived
4. Important
1. Real need
3. Imagiry need
wants to buy an expensive car when
need
need
he will have sufficient fund. Here Mr.
Vinodh's need is.............
Which are the two primary needs of
1. Investment
2. Investment
3. Investment 4. Investment
any customer in any point of life?
and retirement
and Protection
and savings
and life needs
4. Selling what
1. Selling what
2. Selling what 3. Selling what
The concept of need based selling
IDRA wants
company wish to adviser wish to
customer
involves
company to
sell.
sell.
requirement is.
sell.

Vijay, aged 30 years and married, is


the sole bread winner for his family.
He is saving enough with banks.As an
agent, which need you prioritize first?

1. Retirement
need.

2. Tax planning
need.

3. Fincial
security need.

4. Asset
building nee4.

The Central Bank has recently


announced the decrease in interest
rates. The prices of bonds are

1. Likely to
increase.

2. Likely to
decrease.

3. Will
fluctuate.

4. No change is
likely.

3. Quantify,
Identify &
Prioritize
Needs.

4. Prioritize,
Quantify &
Identify Needs.

3. Health
Insurance

4. Liabilty
Insurance

425

426
8

During the fact finding session as an


1. Prioritize,
2. Identify,
agent you should follow which one of
Identify &
Quantify &
the following process?
Quantify Needs. Prioritize Needs.

Amit is looking for term insurance


plan for protection of his family, he is
advised to approach to:

1. Property
Insurance

What do you mean by Double Income


Family?

1. When a
person of the
family is
involved in
double
businesses or
jobs.

427

428

429

1. Fincial
provision to meet
Need alysis involves identifying predictable and
unpredictable
needs.

2. Marriage

2. Life Insurance

3. When the
2. When both the
income of a
4. When the
life partners are
family is just
members of a
earning
the double of
family do not
members of the
income of
work at all.
family.
another family.

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

In which of the following case there is 1. Public sector


no defined retirement age?
employees

1. Every
individuals
income and
expenditure
pattern is same.

2. Every
individuals
income and
expenditure
pattern is
different.

Adequate

Idequate

430

Which one of the following is true?

2. Private sector 3. Professiols &


employees
Businessmen

4. All of the
above

4. An individual
3. An
should not keep
individuals
in mind his
income and
income while
expenditure
planning his
has no relation.
expenditure.

431
8
432

8
433
8
434
8
435

Ram has set a provision for


contigency which can survive for 6
month .This amount is considered as

Explain him
Explain him
difference
XYZ client wants to buy a car in future
difference
Explain him
between
, however his fincial planning shows
between real
difference
important &
that he cannot afford car as of now
need &
between fincial & unimportant
.As a fincial planner you should
perceived
non fincial need
need
Young Married
Young Married Young Married
with no children with no children with children
Which is suitable life stage to buy Unit
and Single
and Double
and Single
linked insurance plan?
income family
income family
income family
X and Y are married, they are
Young married
planning for estate planning, which
with single
life stage do they belong to
income no kids
Retirement
Childhood
client need alysis Product Pitching

Reference

Fact finding

Zero risk
Taking

Fincial
Planning
objective

Up to 100000

Without any
limit

Both of the
above

None of the
above

Mr A has been approached by the


Moderate Risk
Agent and on fact finding the score is Low Risk Taking High Risk Taking
Taking
3 , this represents

9
439
9
440
9
441
9
442
9
443

9
444
9

To ensure that the premiums are paid


out of a legitimate source of funds
cash is accepted
st
With effect from 1 July 2010 all
insurers have to disclose in the
benefit illustration document the..
If the client accept the
recommendation, then the agent
should ask the client..
What should an agent do in order to
understand the mental state of client
in respect to his investments in saving
products
During product recommendation the
agent should explain the product in
relation to
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?
resh is married and his daughter
Sneha is 3 years old. Which plan can
he take?

Up to Rs 50000

Up to 99990

Commission Pay
Detail of charges
to their agents

4
Pre retirement

Proof

9
438

Fact Finding

Fact finding sheet allows the agent to

Select the
product

Alyze customer
needs

Explain him
difference
between short
term & long
term need
Young Married
with children
and Double
income family

Finding out
Moral hazards

objective of fact finding

437

too high

for completing
ACR

9
436

445

too low

To pay the
premium

To fill in the
proposal form

To ask the
documents

None of the
above

Fact finding

Consulting the
clients parents

Consulting the
family of the
client

Reviewing his
existing
investments

The needs that


came to fore in
fact find process

Benefits of the
products

Commission on
the products

Fact Finding
document

KYC document

Benefit
illustration
document

Client benefit
document

Term & Children


Plan

Annuity Plan

Whole Life
Plan

Health Plan

fact finding process helps in identifying


the clients fincial needs, to quantify them
& to prioritize them ,
Fact finding as a process is to identify the
clients needs , quantify them and
prioritize them
The grading is in 0 -5 rating , O denotes
No risk taking ability and 5 denotes High
risk taking ability of the client

Pg :184

Pg :184

Pg 190

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

9
446
9
447

If the recommendation of the agent


has been rejected by the client, the
agent should:
Fincial planning may not be taken as
complete till inclusion of the
predictable needs of the clients. It is
likely to emerge from the incident of

Unemployment

Sickness

Education

House

House loan

Investment in
shares and
mutual fund

All of them

2. His future
aspiration

During Fact finding, rating is


mentioned 3. This Indicates

1. Risk apatite of
client

Which type of questioning is very


useful to gather information from
clients?

1. Closed Ended
Questions

450
9

9
452
9
453

9
454

2. Open Ended 3. Interrogative 4. Clarification


Questions.
Questions.
Questions.

3. Proof of
4. Lapsed
address.
policy details.
3. recommend
1. recommend
4. Recommend
the new
2. recommend to
During the recommendation stage the products that
to take his own
product the
wait some days
the advisor needs to......
best meet the
company has time to take a
to invest
client's needs
decision.
recently
launched
In which of the following an agent will
2. Advisor
4. Persol and
1. Fact Finding
3. Customer
collect the customers Persol data,
Confidential
fincial data
Sheet
Data sheet
professiol data and fincial data
Sheet
sheet
Mr.Mohith, an agent was explaining
3. C. Benefit
4. D. Client
to his customer the guaranteed
1. Fact Finding
2. B.KYC
illustration
benefit
benefits of the product. Which one of
document
document
document
document
the following documents he would
have used to explain the same?
Which is the not part of KYC norms?

1. Photographs

2. Proof of
identity

3. Individuals
1. Individuals
2. Individuals
4. Individuals
do not
As an adviser why is it essential for understand their
have same
real and
understands
you to carry out the fincial planning
real needs and fincial needs at
perceived
their real needs
exercise with the prospective clients?
can prioritize
different stages
needs are
and cannot
them.
of the life cycle.
same.
prioritize them.

456

2. Clients
Expense
statement

After undertaking fincial planning


exercise, the prospective client said
that he does not have funds for
investments. To resolve this query,
which skill of an agent would be
tested?

1. Objection
handling skills.

2. Listening
skills.

The objective of Fact Finding is to

1. Gather Clients
Information only.

2. Identify only
the clients
needs.

457

3. Commitment 4. Willingness
to need
to pay

Mr.Harsha an agent wants do a


thorough Fact Finding for his client to
1. Clients Profits
Mr.Kishan who is a business man.
and Withdrawals
Which of the following information will
from business
be helpful to know about the earnings
and Expense of Kishan?

455

458

Disability

9
449

451

Find out the


reasons for
refusal

Which one is not an asset

448

Must try to
Must try to
convince the
force the client
client to follow
to follow his
his
recommendatio
recommendatio
n
n

Ask the client to


fill the proposal
form

3. Clients
business
details

4. Clients
business
records

Discuss

3.
4. Client
Communication information
skills.
gathering skills.

3. To provide 4. Both identify


solution of
clients needs &
companys
gather
choice.
information.

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

1. Provide the
To explain the benefits of a product,
product brochure
the insurance adviser should
to the client.

459

460
9
461

9
462

2. Provide
Benefit
illustration
documents to
client.

3. Provide the
terms and
conditions
document to
the client.

4. Provide the
website
address to the
client.

Amit & Rashmi are newly married.


Both are working couple. They want to
1. Ruining the
3. Bad
invest their savings of 100,000
2. Opportunity of
4. Fincial
long term
reputation of
annually to build corpus to make
new business for
burden on the
reputation of
the individual
down payment for their house 5 years
adviser.
couple.
company.
adviser.
from now. An adviser sold than a unit
link product to meet their requirement.
This may result in
To prove ones identity in accordance
2. An Identity
3. An Address 4. Education
with KYC process, the customer
1. An Age Proof
Proof
Proof
Proof
needs to submit following document
excluding .?
3.
4. Discourse
2. Matching the
Vinod being an insurance agent can
Recommendati
saving in a
1. Providing him
product with
offer assistance to his client Ramesh
on of product purposeful and
emergency fund. Rameshs fincial
by:
with highest
need based
need.
return.
manner.

Objectives of fact-finding do not


include-

1. Identify needs

2. Gathering
client data

3. Provide for
anticipated
changes

4.Surrendering
the existing
policies for
selling new one

Which one of the following documents


distinguishes between Guaranteed
and non-guaranteed benefits?

1. KYC
documents

2. Benefit
illustration
documents

3. Fact-finding
sheet

4. Fincial
details

463

464

9
465

9
466

10
467

10
468

Check the
After fact finding , Ram has presented
client's
Should take
the product to the client in te second
commitment to
some more
meeting . If client approves the
Ask the client to
the need &
time to
Should close
recommendation what should be the sign the contract
continue with
conclude the the discussion
next xtep
of relationship
process
sale
then & there
Discuss with
Coming to
proposer about
mutual
future life
agreement with
which of the following is the fil stage
prospects and
Completion of Recommending objective for
of fact finding with the client?
changes
Proposal form
Solutions
Solutions
a policy holder takes two insurance
One of the
policy and the premium amount is
one policy has
ONE POLICY one policy is a
policy has
identical and he gets lesser
more SA
has more term single premium
higher
commission in one of contract the
Premium
reason is likely to be
An agent reveals his commission
X has brought
Y has brought a
received from insurance sales to X&Y
other limited
single premium
X is married
Y is Single
.Both plans are of same duration .
premium
product
Why is commission of X far higher
product
that that of Y

10

Customer asks the agent to disclose


the commission . The agent should

disclose on
demand

10

The best way to prove that customer


of a ULIP policy is given awareness
about the commission paid to the
agent is

Ask the insurer


to give a policy
endorsement
letter

Agent

Agent can receive maximum up to 35%


Commission in first year . Maximum
commission in ten years horizon cannot
be more than 40.%.

Pg :201

Agent

different products have different


commission . Maximum Commission
payable in First Year cannot exceed 35%

Pg :202

Agent role &


responsibility

Sec 42 of Insurance act 1938 defines


licensing procedure for agents .Agents
should disclose their commission to the
customer on demand and yet not give
any rebate

Pg :202

Not disclose

Should call up
the Insurer

Should avoid
the topic

From the fact


details

From signed
copy of benefit
illustration

From ticked
column of
proposal form

469

470

Discuss

As per IRDA regulations , agents are


Agents Upfront
supposed to disclose their COMMISSION
disclosure
when asked by the customer . However
Methods
Rebates are prohibited

Pg:102

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

Policyholders
suffer due to
surrender
charges and
benefits

Insurance
companies get
good branding

10

10

what over riding criteria an insurance


agent consider while proposing a
solution

risk

suitability

Flexibility

Cost

10

Sales Target is reduced . Churning


will

Increase

Decrease

Will not affect

Partially

10

Higher persistency to the insurer


ensures what ?

Higher Profits

Higher S.A

10

Persitency =has increased from 82 %


in previous year to 86 % this year .
That means

471

472

473

474

475
10
476

10
477
10
478
479

Agents earn
Lower
Policyholder gets
Commission on
more benefits
churning

Churning is bad , based on which


aspect

10

10

What key impact will the agent have


in low persistency
A customer surrenders his policy on
Feb 2011. As per Agents code of
conduct, an agent can get a new
policy from this customer from Feb
which year
When should an agent disclose the
commission which he will earn from
the product which he is going to sell
What is the disadvantage to the
insurer in case the persistency falls

More productivity Higher attrition

more lapsation

more attrition

less lapsation

No profits

Increase more
business

Increase in the
agents earning

Will improve
reputation

Will have
impact in his
commission

2011

2012

2013

2014

When the
customer asks
him

After the fact


finding process

Lower profits

Higher profits

The customers
are satisfied with
the products

The company is
acquiring more
business and
new customers

After the
After
product is
quantifying the
recommended
need
to the client

481

10
482

Should ask for


Insist on taking
the reason for Should ask for
the product right not going with
a future date
If the client does not wish to proceed
away
the
from the client
with the recommendations right at the
recommendation
moment the agent should

10

483

During a fact finding process the need


alyzed were income replacement and
Do the fact
childrens education. But the customer finding exercise
insists on only a child plan for the
again
time being and asks the agent to give
him a child plan. The agent should.

10

10
484

After doing the need alysis of the


client, the agent advised the client to Enquire about
opt for TROP product. But the client the refusal from
the client
refused. According to ethical business
practices what will the agent do ?

Repeatedly encouraging clients to switch


policies / Investments from one another is
called churning

Duties &
Agent is an intermediary between Insurer
Responsibilities
and the Client
of agents
Repeatedly encouraging customers to
Persist ency switch policies or investment from one to
another is called Churning
Higher Persistency helps Insurer to get
Persist ency
Higher revenue thereby increasing
profitability
Higher Persistency helps Insurer to get
Persist ency
Higher revenue thereby increasing
profitability

Pg :204

Pg :200

Pg 204 : D4

Pg :206

Pg :206

1
A large
numbers of
policies have
lapsed /
surrendered
resulting in loss
of profit
Ask the
proposers
doctor to send
details to the
insurer

A low persistency ratio for the


insurance company means that:
If a person already suffering from
some disease and had not mentioned
Refuse to act for
Notify the insurer
it in the proposal form then as per
the customer
of this matter
IRDA code of conduct the agent
benefit
should

480

Churning &
Product
switching

The company
will not declare
bonus

Respect this
confidentiality
by not
disclosing it to
anyone

Should review
once again

Insist with the


client to take a
term plan

Give a child
plan and revisit
the client on a
later date

Give the lead


to another
agent

Suggest an
altertive plan

Pass on to the
superior

Pass on to the
other agent

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

10
485

Which of the following act from agent


Explaining
will be specifically useful in case of
charge structure
annual premium policies compared to
monthly mode policies

10
486
10
487

As per the IRDA circular an insurance


agent
If the agent recommends the client to
termite an endowment plan and take
a whole life in order to earn higher
commission its termed as

10
A low persistency ratio for the
insurance company means that:

488

10
489

An agent offered his client that 75%


of the first premium will be paid by
him out of commission. This offer of
rebate on premium will be treated as

10
Persistency can be improved by:

490

Fact Finding

Providing service
to the clients

1
4. Salary and
3. Both of the
Reimbursemen
above.
t.

2. Churning

3. Redirecting.

1. Client and
Insurance
Company

2. Insurance
Company and
IRDA

3. Client and
IRDA

1. Role of Agent

2. Product
Design.

3. Policy
Servicing

4. Insurance
and Reinsurance
company.
4. All of the
above.

3. compulsory

4. appreciable

3. Dispatching
4. Continuous
Discharge
servicing of the
voucher to the
policy
customer

1. Switching

10

An insurance agent is intermediary


between.

1. good

2. bad
2. Flexibility of
Premium
payment to the
customer

2. Surrendering
the policy

10

Which one of the following factor


does not help in the Persistency ?

1. Regular
reminders about
the premium to
the customer

10

Mr. David an agent had helped Mr.


Srinivasan to take an endowment
policy on Feb 200As srinivasan was
finding it difficult to pay the premium,
Mr. David had advised him to
surrender this policy and to apply for a
lower premium policy. This is called
as ?

1. Churning of
the policy

496

10

10

Should not
disclose

a kind of gift for


a breach of a
a rebate on the
a breach of
purchasing
provision of the
price amount like IRDAs code of
insurance
Insurance
other sales
conduct
products
Act,1938

Mr. Gayaram, Advisor who advised


the customer to close the old policy
and take new one. But new policy
does not have any extra benefits but it
will give more commission to Mr.
Gayaram. This is called as

What is the factor which has


influence on persistency?
For an insurance advisor churning
is.............practice

2. Renewal
Commission.

10

Churning

Offering
premium
collection
facility to client

A large
numbers of
policies have The company
will not declare
lapsed /
bonus
surrendered
resulting in loss
of profit

The company is
The customers
acquiring more
are satisfied with
business and
the products
new customers

1. First Year
Commission

493

497

Doing a fincial
planning

Remuneration to Agents includes

492

495

Switching

Offering credit
facility to client

needs to
need to disclose disclose the
the amount of
amount of
commission
commission on
demand

10
491

494

need not
disclose the
amount of
commission

Issuing
reminders

3. Switching
the policy

4. Shifting.

4. Claiming the
policy

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

10
498

10
499
10
500

10
501

10
502
503

10

10
504
10
505

Mrs. Hansa an agent, has planned to


2. Reputation of
1. It will benefit
sell maximum products within a short
the company will
4. Agent will be
both the
3. Agent will be
span of time by giving maximum
be high due to
qualified for the
company and the
termited
rebates to the customer to complete
offers to the
contest
customer
the contest target of the company.
customer
Mr.Raghav is an expert in fact finding
.Mr.Raghav helps his brother in his
1. Raghav will be
3. Raghav
4. Customer
2. Raghav will be
job by sharing the information of his
promoted to the
License will be will complain to
termited
clients after the fact finding he does to
next level
cancelled
Ombudsman
procure insurance. What will be the
outcome ?
2. When the
1. When the
3. When the
4. When the
The agents duties and responsibilities
clients needs
clients policy is
nominee has maturity/claim
ends
have been
issued.
changed.
is settle4.
established.
2. Should ask for
When client declines the
1. Persuade the
3. Should
reference who
recommendation by the insurance
client to
never approach 4. Should do
might be
adviser even after resolving the
purchase the
the client ever
nothing.
interested in
concerns, the adviser should
policy.
again.
fincial planning.
Under what circumstances the
surrender of a policy should be
recommended by the agent?

2. When a client 3. When the


4. When the
1. When a client
is holding a
policy has been
client is
have been sold product having
mis-sold and
enjoying good
the right solution. good value for
do not match
fincial status.
money.
his needs.

What key benefit high persistency


1. High renewal
ratios have on insurance adviser?
income.
Under which one of the following acts
the maximum remuneration that can 1. Income Tax
Act
be given to insurance agents
described?
1. Helps the
Which one of the following is not a
client in
benefit of persistency?
achieving goals

10

1. Satish should
Satish as an insurance advisor while
check the
recommending to his client Ramesh is
Ramesh s
not suitable policies
commitment to
the needs

10

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

506

507

10
508
509

10

10
510

As per agents code of conduct,Agent


Recommends protection Plan,but the
client insist on investment plan for the
fincial planning,what an agent should
Recommend
do!
both the plans
Insurers observe high persistency
policy reserve
ratio,then
increases
After clearly identifying 2 needs from
fact finding, client agrees to go for
one and gives the reason, what
Do a fact finding
should the agent do now
again

2. Less renewal
income.

3. Fewer client
bases.

4. Unsatisfied
clients.

2. Indian
Contract Act

3. Insurance
Act 1938

4. IRDA Act
1999

3. Increased
4. Decreased
client
revenues
satisfaction
3. Satish
4. Should
2. Satish should
should check advised him to
outline the
the acceptance surrender all
reasons for
or rejection of
the polices
recommendation
the
which are not
for a particular
recommendatio
buy from
policy
n.
satish.
4. Introduction
3. Agent has
2. Reviewing
of a new
the option to
fincial needs and
insurance
recommending
plans are
product or a
highest
necessary with
change in a
commission at
changes
clients
any time.
Circumstance
Propose an
investment plan
and discuss with
him regard to
Report to the
discomfort of
Refuse to act senior and seek
term plan
with client
his Guidance
Reserve
Remains
Surplus
decreases
constant
decreases
Proceed with
agreed need
Refuse to
and document
Get second
proceed
the rejection
opinion
2. Reduction in
costs

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

10
511

Nikhil was in the process of closing a


Ask his
Ask the client
unit linked plan sale and the customer Decline to act for Direct him to the
Supervisor and to put the query
put a query which Nikhil does not
the client
product booklet
clarify
in writing
know. What should Nikhil do?
Due to the
category of
customer

Due to the
profile of the
customer

10

While on sales of an Insurance plan


Mr. Had to show his license

11

What is the maximum Time in which


The insurer should settle a claim
when all documents are submitted

3 days

15 days

30 days

10 days

Claims

11

A missing person is considered to be


dead after

5years

8years

12 years

7years

Claims

11

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%

7%

9%

7.20%

8%

Claims

11

A claim was submitted & in how many


days company should ask for additiol
documents if required

15 days

10days

20 days

30 days

Claims

11

Vivek takes insurance policy and dies


after 8 months . If the claim needs to
be excluded basis the exclusion
cause what could be the cause

suicide

murder

Valid Claims

11

According to IRDA guidelines, how


long does an insurance company
have to complete its investigation of a
claim

30 days

90 days

120 days

180 days

First five years


of policy

First Two years


of policy

Claim

Inception of the
policy

512

the customer
demanded

513

514

515

516

517

518
11
519
11
520

11
521
11
522
11
523
11
524

Indisputability clause can be enforced


by the insurance company during the

Not necessary to Necessary to pay


pay premium
premium until
until court decree court decree

Incase of presumption of death


If a valid claim is delayed by the
insurer then the interest for the same
will have to be paid by the insurance
10 days
20days
after how many days from the date of
admission of the claim?
Under the IRDA guidelines for Claim
settlement, any queries or additiol
5 days from the 10 days from the
documents can asked from the
receipt
receipt
claimant within
A claim was paid in a policy and it
It was assigned.
was advertised in the newspaper also.
This indicates that the policy was.
An indemnity bond was signed in a
policy when the claim was paid. This
It was lost.
indicates that the policy was.

Death was due


Body not found
to Accident

Claim not
admissible

According to IRDA Regulation 2002 , a


claim under a life insurance policy will
have to be paid or be disputed with giving
relevant information within 30 days from
the date of receipt of all necessary
documents & clarifications
Sec 107 & 108 of indian evidence act
1872 deals with presumption of death ,
Waiting period of 7 years is seen in case
of person missing
As per IRDA Regulations , when there is
a delay by the insurer for settling of a
claim , then they need to pay 2% more
than the fincial years saving account rate
of interest
IRDA Guidelines on claim settlement
instruct the insurer to complete any
additiol documents /information collection
not in a piece meal basis within 15 days
from the time of receiving the claim
intimation
Suicide clause exclude claim settlements
if it happens within One year of the
policy commencement

Pg :219

Pg :221

Pg :219

Pg :219

Pg :217

30 days

60 days

15 days from
the receipt

20 days from
the receipt

It was paid up.

It was lost.

It was
surrendered.

It was paid up.

It was lapsed.

It was
surrendered.

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

11
525

11
526

11
527

11

528

11
529
11
530

11
531

Which of the following falls under


voidable contract?
As per claims assessment process if a
claim arises within a few days of the
start of the policy which factor should
the insurer check in the first place?
Ajay has bought an endowment
insurance plan with a cover of Rs. 10,
00,000 for a term of 15 years. Ajay
died after 4 years. Insurance
company will not treat this claim as
________ claim.
Ranjan took out a 20 years Money
Back plan on his own life 5 years ago.
Survival benefit was due on 4.5.2011.
Ranjan died on 6.5.2011 without
receiving the survival benefit amount.
What will be the legitimate procedure
to pay out the claim?

Misrepresentatio Lack of insurable


n
interest

Fraud

Age admission

Disclosure of
material fact

Premiums paid
or not

Normal

Fraudulent

Early

None of the
above

General

Survival claim
Survival claim Both the survival
will be paid to
will not be paid
claim and the
Bothe claims
the Legal heirs
and only death death claim will
will be paid to
and the death
claim will be paid be paid to the
the Legal heirs
claim to the
to the Nominee
Nominee
Nominee

Full sum
A regret letter
Paid up value, assured less
will go intimating Full sum assured
A life assured died after 40 days from
if any, will be
deduction of
that nothing is
will be paid as
the payment of his monthly premium.
paid as death
unpaid
payable as death
death claim
If there be any claim, how the claim
claim
premium will be
claim
will normally be dealt with?
paid
1.
Which of the following falls under
2. Lack of
4. None of the
3. Fraud
Misrepresentatio
voidable contract?
insurable interest
above
n
After maturity In a Unit Linked Life
3. He has he
Insurance Policy, customer does not
2. He has opted
4. Policy was
1. He has
has redirected
get received Maturity in a lump sum.
for Settlement
lapsed on the
his past
What is the possibility of receiving it switched his fund
option
time of maturity
premium.
in installments if it is not a annuity
plan
1. Not necessary 2. Necessary to
to pay premium
pay premium
until court decree until court decree

11

Incase of presumption of death

11

What is meant by a claim under


insurance policy?

1. A demand to
fulfill the
policyholders
obligations.

11

Who will take the initiation to settle


the maturity claim process?

1. Client

3. Claim not
admissible

4. Depends on
case to case

4. All of the
above.

4. Insurance
company

532

533
534

11

535

11
536
537

11

2. A demand to 3. Any demand


fulfill the
made by the
insurers
policyholder on
obligations.
the insurer.
2. IRDA

3. Advisor

4. Enquiry will
2. The insurance 3. Enquiry will
1. The insurance
be done if
company makes
be done on
Which is the right statement regarding company makes
death happens
enquire on
both Maturity
claim enquiry?
enquire only on
before one year
maturity claims
and Death
death claims.
from policy
only.
Claims.
inception date.
Mr. Chintamani has taken a policy
from ABC Company on 2nd March
1. Normal death
2010, but unfortutely he died on 18th
claim
August 201 His death claim is
considered as..........
Detailed Investigation will be
1. Maturity
triggered in case of......
claims

2. Early death
claim
2. All death
claims

3. Abnormal
death claim

4. Untural
death claim

3. Early death 4. Rider benefit


claims
claims.

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

11
538

11

In insurance, if a person is not heard


for .......years his is presumed to be
dead.

In the process of settling maturity


claims....

539

11
540
11
541

11

542
11
543

11
544
11
545

11

546
11
547
11
548

1. 5 years

2. 6 years

3. 7 years

4. 8 years

4. If the
1. the company
2. the process is
3. it is the
claimant does
will wait until the
initiated by the responsibility of not come within
claimant comes
company well in the claimant to a month the
to office to
advance of the
approach the entire maturity
demand the
maturity date
company
amount will be
claim
forfeited.

Mr.Baskar had taken a Term plan for


2. Total 4 lakhs
4. Total 7 lakhs
a sum assured of Rs. 7 lakhs. He also 1. Total 7 lakhs
will be paid as
3. Total 11
will be paid as
will be paid
has an ADB rider worth Rs. 4 lakhs.
death had
lakhs will be
death had taken
without any
Unfortutely Baskar died in a car
happened due to
paid
place
deduction.
accident. How much will be the death
car accident
claim settlement?
1. The
2. The nominee 3. The event 4. The insurer
policyholder
Insurer will not pay the claim unless
makes a
insured against completes the
makes a
demand.
happens.
enquiry.
demand.
Aman has taken a term plan for 20
years. In the 3rd year he suffered
2. This condition
fincial crisis due to which he was uble 1. The policy was
3. The claim is 4. The claim is
is excluded in
to pay premium within grace period
not in force.
fraudulent.
an early claim.
the policy.
and died after 1 month. The nominee
files a claim and is rejected because
3. The facts
1. The claim may 2. The policy
4. There is no
were
not be genuine. may be pledged. misrepresented
nomition.
.
2.
4. There is no
What key event is most likely to make
1. The
3. The life
Representation
insurable
an insurance contract not a valid
circumstances
assured is
of facts by the
interest
contract?
are legitimate. policyholders is
major.
attached to the
true.
policy.
On foreclosure, if Death claim arises
2. Legal heir of
4. forfeited the
before the payment of the surrender
1. Nominee
3. Debotrs
life Assured
Premium
value, the payment would be payable
to:
Gaurav is working in MNC at the age
of 32 bought an Endowment Plan. He
4. will be
had nomited his 1 year old daughter
Payable to
2. Legal heir of
3. Appointee
Saanvi, but not able to get the Sigture
1. Nominee only
Saanvi
the life assured
Only
of her appointee due to uvailability of
(Nominee) at
his spouse .after 5 year. He died in
the age of 18th
road accident, now claim money
would be payable to:
Which one of the following report is
1. Policy first
2. Advisor
3. Post Mortem
4.Coroners
not considered in case of Pankaj
information
confidential
Report.
Report
Bought a plan in 2009 & died in road
report.
report
accident in 2011 :
Insurer has deducted Rs 3000 from
the death claim of Ram. What could
be the reason for deduction when all
the due premiums were paid
Paid up option
Lien
Commutation
Loan Facility
When a policy is lost, insurance
company take utmost care while
settling maturity claims because

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

11

549
11
550
11
551
11
552
12
553
554
555
556

12
12
12

12

Two policy Matures at the same time


for an insurance company,what are
the other requirment for maturity with
respect to policy.A is absolute
assignment and B is conditiol
A loan and
assignment.pending requirment in
interest is
relation with B
outstanding
Maturity benefit is equal to Sum
assured plus reversiory bonus minus
Persistency
?
bonus
In a non life policy, the person who is
authorised to process the mediclaim
is known as
Underwriter
Maturity benefit is equal to Sum
assured plus reversiory bonus minus Claim within 1st
?
anniversary
An advisor while explaining the policy
and to sell he accepts to give a part of
10%
his Agents commission, what is th
limits
Consumer Forum at district level will
20L
hear complaints up to
How much is the rebate allowed by
Nil
IRDA to client
the controller of insurance in india is
A insurer advertises through daily
news paper . What type of marketing
is

IRDA

A loan amount
and oustanding
premium is
pending
Outstanding
premium +
interest
Third party
administrator

3
A outstanding
premium is
pending

A sign on
discharge form

Outstandin
premiums

2
Actuary

Claim within 1st Claim befor the Claim after the


calendar year
valuation date valuation date
20%

40L
5%
RBI

He cannot offer
He can offer up
any
to 50%
commission
1Cr

10L

Code of
conduct

12
12

559
12
560

12
561

12

562
563
564

12
12
12

565

Investment by NRI(Non Resident


Indian) will be
MWP- If the policy is endorsed under
MWP - then the beneficiaries are wife
and ?
If the license of an agent has been
disqualified by a desigted authority in
2010 then the person can apply for a
license in which year

When can an insurance company


give more than 35% first year
commission?

Which is the 2nd stage in Money


Laundering?

SEBI

IRDA 1999

Brand building

No risk

Low risk

Medium risk

High risk

parents

ex wife

children

mother

2013

2015

2017

2020

When the
If the agent has If the agent has
If the agent is
insurance
worked with the worked with the
doing more
company is in
company for
company for
than 3 policies
the first 10 years
more than 5
more than 10
in a month.
of operation
years
years

Cannot rebate
at all

IRDA
IRDA regulations on advertisements
Regulations on
include all printed and published
Advertisement
materials from Insurer as well as Agents
and
Disclosures
KYC
MWPA

Pg 231
Pg :233

Pg 237

Pg :235

Beneficiaries under MWPA can be Wife ,


Children , Wife & Children , Adopted
Child

Pg :236

2%

IRDA

SEBI

Constitution

Assignee

Trustee

Policy holder

3. Integration

4.
Amalgamation.

2. Placement

Pg :238

35%

Solicitation of
Policy

1. Layering

District Court upto 20 L


Sec40(1) of Insurance act 1938 prohibits
agents from giving rebates
IRDA 1999 , was passed in parliament
establishing it as a corporate Body

Insurance
ombusdmen

direct selling

Half of the
commission

Grievance cells

10%

cross selling

An agent recommends a term plan in


keeping with the ethical standards
since it was suitable to clients needs. Maximum 10%
In such a case what is the percentage
of commission which he can rebate so
as to beat the competition
_____ controls monetary system in
RBI
India
In MWP Act Policy, claim is paid to
Nominee

Pg :231

Insurance act
1938

557
558

Sec 41 (1) of insurance act 1938 prohibits


all agents to give rebates

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

12
566
12
567

According to IRDA regulations the


maximum percentage of first year
commission to be paid to an
insurance advisor is.............
In the case of agent's death, the
commission payable will be paid
to.........

1. 30 %

2. 35%

1. his legal heirs 2. to his nominee

3. 40%

4. 45%

3. will stop
automatically

4. Paid in lump
sum to the
survivors.

12

Issuance of a license to a person has


been stipulated in................Act

1. Section 43 of
the Insurance
Act 1939

2. Section 42 of 3. Section 12 of 4. Section 34 of


the Insurance
the Insurance the Insurance
Act 1938
Act 1922
Act 1932

12

Which official body decides to


increase the interest rates?

1. Central bank
of India

2. Reserve bank
3. Reserve
4. Central bank
of India
bank of country
of country

568

569
12

3. License
1. Section 42 of 2. Section 42 of
Which one of the section deals with
section of
the insurance act the insurance act
the licensing of an agent?
Insurance act
1938
1936
1938

12

Which regulations take care of the


settlement of claims ?

570

1. Protection of
Policy holder
Interests
regulation 2002

2. IRDA claim
protection
regulation 2002

4. License
section of
insurance
agent act 1938

3. C.IRDA
4. D. Protection
policy
of claim
settlement
settlement
regulation 2004 regulation 2002

571

12
572
12
573
574

12
12

575
12
576
12
577
12
578

4.
1.
2.
Representative
Representatives Representatives
3.
Which of the following team
s from
from all
from all
Representative
represents the members of GBIC ?
Insurance
insurance
government
s from IRDA
institute of
companies
bodies
India
3. IRDA
Rahul is a licensed insurance agent.
4. Insurance
1. Companys
2. IRDA Acts
Regulations
As agent he must carry out his role in
Acts code of
code of conduct. code of conduct.
code of
accordance with
conduct.
conduct.
Under Married Womens Property
1. The Life
2. The
4. The
3. The trustee.
Act, 1874 a policyholder is
Assured.
beneficiaries.
administrator.
Who has the authority in insurance
3. Branch
1. Insurance
2. Desigted
4. Actuary.
company to issue/cancel the agents
Operations
Company.
Person.
license
Team.
Married Womans Property Act 1874
1. Married
4. Married
2. Married Man 3. Married Son
provides that a life insurance Policy
Woman
Daughter
that has been taken out by:
Premium Income earned by an agent
holding a composite license is
600000. What is the max contribution
of one organisation
60000
1.5 lac
1.2 lac
3 lac
atleast 5 yrs
offence had a
hav passed
License criteria,criml offence in the he was less than punishment of
since the
past.given IRDA license.Why?
21 at that time
less that 2000
sentence
exception

13

Mr.Sunil is doing premium calculation


for his company, as per which
authority is his profession related to

Council of
Actuaries

Insurance
council of India

Insurance
institiute of
India

13

basic qualifications of agent

sound mind &


graduate

sound mind &


good income
level

Age and
income level

Life Insurance
Council

Insurance
Broker
Association

IRDA

3
2

Actuaries

Agent
Licensing

Insurance
Regulation
Bodies

579

580
13
581

Which Institution was Constituted by


Insurance
Insurance Act 1938
Institute of India

His contacts in
the market to
solicit
Insurance
General
Insurance
Council

IAI (Institute of actuaries in India ).


Actuary is an expert who applies
statistical & mathematical methods to
asses risk and calculate premium tables
For License , a person should be Major ,
Of sound mind , graduate , no crimil
records ,attended training , passed III
exam
Life Insurance council was constituted
under Sec 64 of Insurance ACT 1938. Its
the face of Life Insurance Industry

Pg :249

Pg :251

Pg :248

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

13

What is the role of tiol Insurance


Academy?

Key regulatory
Body

I , Pune , was set up by Govt in 1980 with


support from LI Council , GI council & 4
psu GI. Main Objective is to design ,
implement & operate on Insurance
Training

Pg :249

Licensing of
Insurance
companies

Power of
Central Govt
over IRDA

Power of Govt to supersede IRDA is uble


to discharge its Function or duties

Pg :246

RBI

SBI

tiol Insurance
Academy

LIC

To regulate

To advise
Government

To undertake
training
activities

To Advertise
globally on
Indian
Insurance

Policy matters

complex
technical issues

Promotiol
activities

IRDA

SEBI

IRDA

Tariff Advisory
Committee

582
13
583
13
584
585

13

According to IRDA act 1999, central


governments involve in insurance
industry over
Who is a regulator, supervisor and
monetary authority of the fincial
system in India
The insurance act of 1938 created
which of these.

13

Rises

586

13

What is the key function of NIA

Provide
suggestion for
Premium
calculation

13

Basing on which criteria the


qualification of Agent is determined?

Address of the
agent

587
588

13
589

13
590
13
591

13
592
13
593
594

13

If IRDA is uble to discharge its


functions or duties, Central
Government
Under the prevailing FDI laws for
insurance, domestic private
companies are allowed to form joint
ventures with foreign partners. What
percent of stake can a foreign partner
hold?
Rahul is appointed as director of life
insurance company, he cannot be an

Pricing element is done by

595
13

13
597

What does MDRT Stand for?


As per AML regulation, it allows cash
premium not over than

To be an active
Design,
link between
implement and
Global market &
operate an
Indian Life
insurance
Insurance
training
Industry
Domicile status

Regulate the
investment of
funds by Life
Insurance
company

Has the power to


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

Can make
changes in
IRDA law

20%

26%

49%

51%

Insurance
Advisor

Nodal officer

Chief actuary

Underwriter

He can design
the
advertisement
without the
concern of
insurer.

Were all his


information
published to
enhance his
business.

Describe the
benefits which
do not match
the policy
provisions

Redressal

Research

Repository

Insurance
Company

Life Insurance
Council

CII

It contains only
statements that
mention the
An agent is not required to obtain the
agents me, logo
prior approval of the insurer before
& phone number.
placing an advertisement when:
The Institute of insurance and risk
magement along with insurance
Regulation
education does what more

13

596

Decreases

De- tarrification is a process by which


pricing of Insurance

Insurance can
Reaches at a
price their
level as per product on their
industry trends
self past
experiences.

IRDA
Million Dollar
Round Table

Major Double
Rupees Tag

Major Dollar
Round Tag

Mean
Disposition
Residence
Time

Rs.20000

Rs.25000

Rs.5000

Rs.50000

IRDA
Regulations,
2000

Insurance
Act,1938

Indian Contract
Act,1872

Which Act or Regulation provides that


the Renewal commission is payable IRDA Act,1999
to the legal heirs of the Insurance
agent in case of his death?

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

598

13

13
599
13
600

13
601

13
602
603

13

13
604
605

13

13
606

13

607
13
608
13
609

If an Insurance agent is found guilty of


breach of trust, he will be disqualified
to act as an insurance agent. The
disqualification stands valid

Central govt has authority of


Direction to IRDA on
It is the bounden duty of the Insurers
to protect the interests of their
policyholders from proposal
acceptance to claim payment
because of the

Rs. 300

for life

Rs500

Rs 1000

for 10 years from for 7 year from


the date of
the date of
disqualification
judgment

Any of them
for 5 years
since
completion of
the sentence
imposed

Policy matter

To present
statement of
IRDA act in
Parliament

May issue
notification

All of them.

Behavioral
requirements of
E-Governce

Market
competition

Requirements
of the Life
Insurance
Council

Regulations of
IRDA

a behavior that
a behavior that a behavior that
a behavior that is
is based upon
is based upon is based upon
based upon the
the positive
the ritual
the moral
legal judgment of
judgment of an
judgment of an judgment of an
an individual
individual
individual
individual
Research

In the context of IRDAs code of


conduct, the term Ethical behavior
can be best described as
IIRM is in areas of education and
Who controls and regulate the rates,
1. Insurance
advantages, terms and conditions that
Regulatory and 2. Reserve Bank
may be offered by insurers in the
Development
of India.
respect of general insurance
Authority.
business.
The Insurance Institute of India (III)
1. 1956
2. 1999
was formed in.....

Which council among the following


focus on creating a positive image of
1. Life insurance
2. Consumer
the insurance industry and would also
council
insurance council
like to enhance the Consumers
confidence on the same ?

3. Tariff
Advisory
Committee.

4. Insurance
Institute of
India.

3. 1955

4. 1947

3. tiol
Insurance
council

4. General
insurance
council

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

4. Insurance
Institute of
India.

4.Insurance
Institute of
India

3. Need to
2. Need to
complete 25
1. Need to
complete 50
hours of
Mr.Varun taken up his agency in July
complete 25
hours of practical
practical
5th 200 His lost his IRDA license
hours of practical
training and
training and
while travelling. His agency has also
training and
paying Rs.100 paying Rs.100
expired. What is the solution for
paying Rs.50 for
for the issuance
for the
Mr.Varun ?
the issuance of
of duplicate
issuance of
duplicate license
license
duplicate
license
Which organization was formed with
1. Institute of
3. Chartered
2. tiol Insurance
purpose to promote insurance
Actuaries of
Insurance
Academy.
education and training in India?
Indi1.
Institute.
3. Insurance
The face of the life Insurance industry 1. Life Insurance 2. Life Insurance
Regulatory
in India is ..?
Council
Corporation
Development
Authority

13

For Insurance industry which


1. Life Insurance 2. Life Insurance
association to take steps to Develop
Council
Corporation
Education and research in insurance?

3. Insurance
institute of
India

4. Insurance
Institute of
India

13

Which is the body who provides grant


to Insurance Regulatory Develompent
Authoruty to carry out activites.

Central
Government

SEBI

610

611

Agent offering rebate may be fined

RBI

LIC

Discuss

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

Ombudsman

Insurance
Association

FERA

Governing
Body of
Insurance
Council

What are the ways by which a policy


holder can make complaints

email

Toll free No.

Newpaper

Email or Toll
free Number

Governing
Body of
Insurance
Council

14

what are the ways in which IRDA can


be contacted . One is thru toll free
number and other is

email

Insurance
ombudsmen

visiting regiol
office

Through
Agents

Grievance
Redress Cell of
IRDA

14

what is the maximum level of


complaint that can be considered and
taken action by ombudsmen

20 lac

25 lac

30 lac

50 lac

Ombudsman

14

What is the period of award passed to


the customer decided by
ombudsman?

2months

3 months

5 months

6 months

Ombudsman

14

Raju is a certified license holder


under what circumstances he needs
to hold his certified license with him
that is issued by irda

under all
circumstances

when he sells
term insurance

when he
represents
himself as
another insurer

when he sells
pension
policies

Ethics & Code


of Conduct

Under IRDA regulations , an agent should


carry is license all the time and on
demand , should show it to the customers

Pg :284

14

A policy has been rejected by the


company under direct intimation to
the customer and copy to the Agent,
what is the next action of the Agent

The role & responsibility of the agent is


Ethics & Code
important to have a good relation with the
of Conduct
customers

Pg :279

14

14

612

613

614

615

616

617

618
619
620

14
14

14
621
14
622
14
623
14
624
14
625

14
626

Integrated Grievance magement system


(IGMS) also makes the complaints to be
regsitered through E mail
complaints@irda.gov.in or Toll free
number 155255
Integrated Grievance magement system
(IGMS) also makes the complaints to be
regsitered through E mail
complaints@irda.gov.in or Toll free
number 155255

Insurance
Institute of India

Complaint council bodies other than


IRDA grievance readdress forum &
COPA

Where one can approach in case of


dispute
The Authority of COPA is limited to
what amount at the district level.

As per Regulation for protection of


Policyholders interest 2002 (IRDA),
Which insurer will have a grievance
redressal System
Which regulatory body has created a
call center for logging a complaints of
insurance Customers
Within how many years a complaint
can be made through consumer
protection act.
Insurance companies are required to
honor the awards passed by the
Insurance Ombudsman within how
may days

he has to inform
He has to
the customer
explain the
He takes up
he plans to
that the co has
reasons for
with the higher
change the plan
broken
rejection to the
authorities
relationship with
customer
the customer
Consumer
IRDA
Forum
20,00,000.

50,00,000

1,00,00,000

Some Specific
Insurer

Those Insurer
who did not
created
Insurance
Ombudsman
System

All insurer

It is optiol

Life Insurance
Council

IRDA

Insurance
Association

Insurance
Institute of
India

One year

Two years

Three years

Five years

10 days

15 days

20 days

25 days

Some life and


By all insurers.
non life

Life Insurance
Council

Sebi

Ombudsman role is to resolve complaints


related to claims , disputes with regard to
premium / policy, non issue policy
documents , all in a cost effective
manner
Ombudsman role is to resolve complaints
related to claims , disputes with regard to
premium / policy, non issue policy
documents , all in a cost effective
manner

Pg :268

Pg:268

Pg :265

Pg:268

10,00,000.

Only by few
As per IRDA regulations IGMS should
Only by non life
selected insurers
be mandatory set up by
For the customer whose claim has
been refused by the company, the
three places where he/she should
Consumer
COPA
follow up are Ombudsman, IRDA
Forum
Customer Grievance Cell and
..

Toll Free Number :155255 & Email

Pg :271

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

14
627
14
628
14
629

14

630

14
631
632

14

14
633

14
634

14
635
636

14

14
637
14
638
14
639
14
640

What is the stipulated time frame


within which an insurer is supposed to
respond after receiving any
communication from its
policyholders?
The functions of the Insurance
Ombudsman include:
If a case is already before the
consumer forum, then the
ombudsman should

24 hours

1 day

10 days

30 days

Conciliation and
making awards

Counseling

Repudiation of
claim

Evaluating
claim
settlement

Dismiss the
case

Give an award.

Indisputability
clause

Redressal
procedure

Pending
decision from
Ombudsman

1 month

2 months

6 months

IRDA

Actuaries

Underwriter

Give a joint
Give a
decision with the
recommendation
consumer forum

Generally insurance companies do


not hold the premium in case of a
fraud or misrepresentation. However, Fraudulent claim
due to which of the following
circumstances the insurer can retain
the premium of the policyholder
A policy holder is not satisfied with the
services of the insurer and complains
to ombudsman. In how many days
6 weeks
from receipt of the complaint the
ombudsman should pass the
recommendation.
The guidelines for annual assumed
Life Insurance
growth rate are given by
Council
AML Program of every insurer to
include _______________, apart from
Procedure, Training and audit.

Inspection by
IRDA

Audit by Fince
Ministry

Appointment of
Inspection by
Principal
Compliance Auditor General
Officer

Ravi was expecting a claim amount


of Rs. 12, 00,000 from insurer. But it
tiol Commission
District Level
State Level
was rejected. He feels that it is
repudiated on wrong reasons. Which
consumer forum can he approach?
For redress of grievances of the
policyholders, a number of Authorities
Consumer
Consumer
have been formed. Which of the
Insurance
Grievance
Affairs
Following authorities has been
Ombudsman
Redress Forum
department
empowered to hear the complaints
and adjudicate?
How many ombudsmen offices
1. 10
2. 12
3. 14
located in India?
1. Customer
2. Customer
3. Consumer
What the me of department that is
Complaint
Grievance
Affairs
established by IRDA to deal with
Department
Department
Department
customer complaints?
(CCD)
(CGD)
(CAD)
The insurance ombudsman has been
1. policyholders 2. shareholders
3. insurers
appointed to protect the interest
of.......
The charges were not fully disclosed
1. IRDA
2. Agents
3. Shareholders
to the customers" is a common
complaint against.....
If any consumer is dissatisfied with
2. Grievance call 3. Compliance
the customer care cell of any
1. Nodal officer
center
cell
insurance company to whom they can
escalate their grievances.

Mandal Level

IRDA

4. 15

4. Consumer
Protection
Department
(CPD)

4. General
insurers.

4. Underwriters

4. Compliance
officer

Discuss

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

14

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.

1. Policyholder
grievance
Regulation

14

A client demands the information on


the current status of a policy
indicating accrued bonus. The insurer
should provide communication within

1. 10 Days.

14

To ensure that the customers


complaints are handled effectively,
IRDA has established

1. Integrated
Grievance
Magement
System.

14

Insured can contact to seek the


resolution of grievances they have
against insurer to IRDA through:

641

642

643

644

14
645
14
646

14
647
15
648
649

15

651

4. 30 Days.

2. Interl
3. Grievance
4. Consumer
Grievance
Redressal
Affairs
Redressal Cell of
Officer.
Department.
the Insurer.
2.insurancecomp
1.Complaint@go
3.irdacomplaint 4.Complaints@
laints@irda.gov.i
v.ird1.in
s@gov.in
irda.gov.in
n

3.Lien Clause

4.Utmost good
faith apply

It might fell short


of actual needed
It will bring a
Tax exemption
and family would smaller premium will be lesser
suffer

Benefit could fall


The main reason why an agents act of
short of the
underselling insurance is treated as a fincial liabilities
unethical behavior is

15

Ethics can be defined as

15

Which is not unethical behavior in


below statements?

652

653

3. 20 Days.

How Many offices of Ombudsmen the


Government body has set up to
1.15
2.12
3.14
4.16
Resolving insured customers
grievances.
If there is no agreement or settlement
if the complaint if the insurer
and the recommendation is also not
If it is acceptable if it is acceptable
decides to
decides to
acceptable to the complaint, in this
to the complaint
to the insurer
proceed legally proceed legally
case the Ombudsman will grant an
award
If the agent recommends the client to
termite an endowment plan and take
Doing a fincial
Switching
Churning
a whole life in order to earn higher
planning
commission its termed as
Unethical behavior can affect the
Insurance Agent
Insurance
Insurance Agent
Insured person
reputation
& company
company

Underselling life insurance comes


under unethical practices because

15

2. 15 days.

Parvesh bought a policy an


1. Indisputability
endowment plan but after one year
2.Principal of
Clause (Section
insurer. Found he had Aorta Surgery
Indemnity apply
45) apply
.now which will apply by insurer:

15
650

2. Policyholders
3. Ombudsman 4. Compliance
Protection
Regulation
Regulatory
regulation

Excessive
Premium

SA ceased too
early

2. Behavior that 3. A study of


1. Those values
is based upon
what makes
we commonly
the moral
ones own
hold to be good
judgments of an actions right or
and right.
individual
wrong.
3. Explaining
1. Over selling of 2. Under selling
all details of the
Insurance
of Insurance
policy to
policies.
policies.
customer.

Discuss

Discuss

Tax concession
opportunity
could be lost
forever

4. All of the
above.

4. Churning.

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in

15

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 is............

1. ethical

2. unethical

3. professiol

4. Perfect.

15

The code of conduct has been


prescribed in India by...........

1. IRDA

2. Insurance
Council

3. Insurance
Institute of
India

4. Government
of India.

15

Shankar, an adviser, sold a term


insurance policy and unit-linked
insurance policy (ULIP) to Amar, the
client, who is unmarried and has no
dependent. Consequently, Shankars
action can be termed as

1. Underselling
of insurance
policies.

2. Churning.

3. Overselling
of insurance
policies.

4. Ethical
practice by an
adviser.

15

Pankaj being a license insurance


advisor has to follow code of Conduct
provided by:

1. Insurance
Regulatory
Development
Authority

2. Life Insurance
Company

3. Reserve
Bank of India

4. SEBI.

25%

50%

more likely

less likely

75%
less
transparent

100%
more
transparetn

654

655

656

657
658
659

15
15

9
660

In case of term plan the premium for


CI rider shall not exceed
Reduced target of agent will have
what impact on churning
An agent does 6 lacs of new business
premium /Income in a year. He is a
composite agent. What is the
maximum Premium/Income he can
earn from 1 insurer?

4
2

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: neeraj.parekh@trng.bajajallianz.co.in