Question Bank

How are perils and hazards normally distinguished under term insurance policies?
2.
3.
4.
A.
Perils are medical factors which influence the risk of dying and hazards are lifestyle
activities which influence the risk of dying.
B.
Perils are risks that policyholders will die before a specified date and hazards are
factors which could influence that risk.
C.
Perils are factors which affect the risk being insured and hazards are the size of the risk
being insured.
D.
Perils are factors which could influence an insured event occurring and hazards are
the actual events which will trigger a payout
In the context of financial planning, how is the difference between real needs and perceived
needs best described?
A.
Real needs are financial needs and perceived needs are non-financial needs.
B.
Real needs are actual needs and perceived needs are based on a clients
thoughts and desires.
C.
Real needs are identified by the insurance agent and perceived needs are identified
by the client.
D.
Real needs are needs which satisfy an objective and perceived needs are needs
which do not satisfy an objective.
If a person is concentrating more on health plan and retirement plan then at which stage of
life is he in.
A.
Young unmarried
B.
Young married
C.
Young married with Kids
D.
Pre retirement
The Institute of insurance and risk management along with insurance education does what
more
A.
Regulation
5.
B.
Redressal
C.
Research
D.
Repository
If the client does not wish to proceed with the recommendations right at the moment the
agent should
A.
Insist on taking the product right away
B.
Should ask for the reason for not going with the recommendation
C.
Should ask for a future date from the client
D.
Should review once again

6.
7.
8.
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?
A.
Term Insurance Plan
B.
Endowment plan
C.
Return of premium plan
D.
Pension plan
A claim was paid in a policy and it was advertised in the newspaper also. This indicates that
the policy was.
A.
It was assigned.
B.
It was paid up.
C.
It was lost.
D.
It was surrendered.
An indemnity bond was signed in a policy when the claim was paid. This indicates that the
policy was.
A.
It was lost.
B.
It was paid up.
9.
10.
11.
12.
C.
It was lapsed.
D.
It was surrendered.
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?
A.
Marriage.
B.
Savings.
C.
Education.
D.
Protection.
While calculating HLV along with future income, no of years of work, increments in salary
what is also to be taken in to account?
A.
Inflation.
B.
Interest.
C.
Discount rate
D.
Compounding.
If RBI increases the interest rates then what will be the effect on share prices.
A.
Shares will be more attractive.
B.
Shares will be less attractive.
C.
Fixed deposits will be more attractive.
D.
Fixed deposits will be less attractive.
Vishal and sandeep applied for a health plan in XYZ Life Insurance Company. Vishal is
asked to undergo a medical checkup but Sandeep is not asked to do so. What will be most
possible reason?
A.
Sandeep has taken another policy from XYZ Life Insurance Company
B.
Vishal is older than Sandeep
C.
Sandeep is earning more then Vishal
D.
13.
14.
15.
16.
Vishal is working in a MNC
During fact finding, What will be the next step after Identifying clients need
A.
Quantify clients need
B.
Priorities Clients Need
C.
Recommending Product
D.
Fill up the proposal form
What is purpose of investing money in debt mutual fund?

A.
Easy access
B.
Fixed income
C.
Tax Benefits
D.
Liquidity
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?
A.
213333
B.
229333
C.
273333
D.
293333
What is the similarity between Recurring Deposits & cumulative deposits in a bank
A.
Guarantees
B.
Taxation
C.
Tenure
D.
Lock in periods
17.
18.
19.
20.
Mrs. Sheela received some amount out of her husbands death. In such a situation what
will be her prime focus?
A.
Savings
B.
Insurance
C.
Investment management
D.
Planning for pension
Mr. Kunal used to participate in Car race. While taking up the Insurance policy he disclosed
this information. What kind of hazard does it refers to
A.
Physical hazard
B.
Fraudulent representation
C.
Moral hazard
D.
Peril
Which of the following falls under voidable contract?

A.
Misrepresentation
B.
Lack of insurable interest
C.
Fraud
D.
None of the above
Law of large numbers is worked out by which of the following?

A.
21.
Pooling of risk
B.
Maintaining insurable interest
C.
With utmost good faith
D.
Randomness
If a client wants to compare between all financial products then the best person he can
approach is
A.
Individual agent
22.
23.
24.
25.
B.
Corporate agent
C.
Bank
D.
Broker
If a person want to maintain emergency funds the best place is a bank or

A.
Equity market
B.
ULIP
C.
Debt mutual fund
D.
FD
During a fact finding process the need analyzed were income replacement and childrens
education. But the customer insists on only a child plan for the time being and asks the agent
to give him a child plan. The agent should.
A.
Do the fact finding exercise again
B.
Insist with the client to take a term plan
C.
Give a child plan and revisit the client on a later date
D.
Give the lead to another agent
If a case is already before the consumer forum, then the ombudsman should
A.
Give a recommendation
B.
Give a joint decision with the consumer forum
C.
Dismiss the case
D.
Give an award.
If the sum assured remains the same, what will be impact of net premium if the age of the
policyholder increases
A.
It rises
B.
It falls
26.
27.
28.
29.
C.
It remains constant
D.
Gross premiums increases
What is the advantage of converting physical gold assets to gold ETFs.

A.
Liquidity
B.
More gold in value
C.
Purity
D.
More conversion value
For which of the following reasons, the underwriter should ask beyond agents confidential
report.
A.
Physical Hazard
B.
Moral Hazard
C.
SA is too high
D.
Pure Risk
After doing the need analysis of the client, the agent advised the client to opt for TROP
product. But the client refused. According to ethical business practices what will the agent
do ?
A.
Enquire about the refusal from the client
B.
Suggest an alternative plan
C.
Pass on to the superior
D.
Pass on to the other agent
Generally insurance companies do not hold the premium in case of a fraud or

misrepresentation. However, due to which of the following circumstances the insurer can
retain the premium of the policyholder
A.
Fraudulent claim
B.
Indisputability clause
C.
Redressal procedure
D.
30.
31.
32.
33.
34.
Pending decision from Ombudsman
According to IRDA agents code of conduct, what is the best method of showing the
amount of commission earned by the advisor
A.
Signed copy of sales illustration
B.
Brochure
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?
A.
Under no circumstances
B.
Under conditions of the reinsurer
C.
As directed by actuary
D.
As per company policy
In case the customer has stopped making payment for the premium of the policy. What are
the two most important things required in order to reinstate the policy?
A.
Reinstatement Fee and Proof of continuing good health
B.
Premium cheque and health declaration
C.
Only health certificate
D.
Premium cheque with arrears
If the customer has invested money in a pension plan from company A and buys an annuity
from company B, what is the nature of transaction?
A.
Life Long Annuity
B.
Open Market
C.
Reinsuring Annuity
If a policy holder buys a policy from the advisor and lodges a complaint, it should be
treated as :
A.
Same for all policies sold by advisor
B.
35.
Same for all policies sold by the advisor except corporate clients
An investor holds a wide range of shares. If the Reserve Bank of India announces a series
of significant interest rate increases, the prices of these shares are most likely to
A.
Become volatile
B.
Decrease
C.
Increase
D.
36.
37.
38.
In life insurance business if a person is working in calculating premium rates of insurance

products, then he is mostly likely a member of
A.
institutes of actuaries of India
B.
insurance institute of India
C.
Charted institute of insurance
D.
Insurance institute of risk management
In a life insurance policy it is later found that the person doesnt have insurable interest
then the contract is
A.
expired
B.
reviewed
C.
Void
D.
Valid
If both parents of proposer died in their thirties due to heart attack what is the kind of peril
or hazard the proposer has?
A.
Insurable hazard
B.
moral hazard
C.
non insurable hazard
D.
Physical hazard
39.
Raunak earns 80,000 per month as salary. He has taken a House loan of Rs. 500000.
What will be the maximum amount of EMI that can be charged by the Bank to recover the
loan amount?
A.
Rs. 32000 per month
B.
Rs. 24000 per month
C.
Rs. 40000 per month
D.
Rs. 48000 per month
[Chapter 6/13 - Care should be taken to ensure that EMIs do not exceed 40% of the monthly take home
salary.]
40.
41.
Frequent switching is not advisable in ULIP plan because it increase

A.
Investment Risk
B.
Risk of death
C.
Uncertainty of return
D.
Chances of lapse
According to insurance terminology which of the following is correct?

A.
Lung cancer is a hazard whereas smoking is a peril
B.
Smoking is a hazard and lung cancer is a peril
C.
Lung cancer is a peril and smoking is a moral hazard
D.
Smoking is a moral hazard whereas lung cancer is a peril.
[Chapter 2/5 - If lung cancer is a peril then smoking can be a hazard that may increase the chance that the
peril (lung cancer) will occur.]
42.
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?
A.
Risk profile of both the policyholder are different
B.
Age of both the candidate are different
C.
One has chosen Single premium policy and other has chosen regular premium
policy
D.
43.
44.
45.
Both have chosen different kind of policies.
Open market option under Annuity policy would extend which of the following benefit?
A.
Ensure Better annuity rate
B.
Increase in the range
C.
Increase in return
D.
Switch of Funds
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?
A.
Money Back
B.
Term Plan
C.
Endowment Plan
D.
ULIP
What should an agent do in order to understand the mental state of client in respect to his
investments in saving products
A.
Fact finding
B.
Consulting the clients parents
C.
Consulting the family of the client
D.
Reviewing his existing investments
Section II
1.
2.
3.
4.
Net premium is equal to

A.
Premium plus interest earning
B.
Risk premium plus interest earning
C.
Premium minus interest earning
D.
Risk premium minus interest earning
Pooling of risk in insurance means

A.
The premium collected & deposited in a pool
B.
All similar risks are pooled together
C.
Premium is pool to make claims
D.
Contribution of insurance company
Principle of utmost good faith will operate in existing policy

A.
Every time premium is paid
B.
If the policy has lapsed and it has to be revived.
C.
If the insured person falls sick and is admitted to hospital.
D.
If the insured person changes his job.
Both the parties to a contract must agree and understand the same thing and in the same
sense which is called
A.
Consideration.
B.
Legality of an object.
C.
Consensus ad idem.
D.
Acceptance.
5.
In case of life insurance, Insurable interest must exist

A.
At inception of policy
B.
Not needed
C.
At the time of claim
D.
Any time during the contract
6.
With this type of deposit the bank pays the principal and the total interest at the end of the term.
A. Traditional deposits
B. Recurring deposits
C. Cumulative deposits
D. Term Deposits
7.
8.
9.
The Premium on all riders put together should not exceed

A.
10% of the premium on the base policy
B.
C.
D.
How riders will help the customer in life insurance?

A.
allows policyholders to customize their insurance cover with additional benefits
B.
rider is like a clause
C.
Operative clause.
D.
Rider is like Preamble.
In Daily hospitalization cash benefit scheme,
A.
The daily amount paid is fixed and will never be more or less than the cost of
actual treatment.
B.
The insurance company may pay an additional amount on a daily basis if the
insured is admitted to the Intensive Care Unit (ICU).
C.
The insurance company will pay for doctor consultation fees incurred prior to
hospitalization
D.
10.
11.
12.
13.
Only surgery expenses are included in daily hospitalization benefit
A lump sum withdrawal allowed as commutation in pension plans is

A.
1/3rd of the accumulation fund
B.
1/4th of the accumulation fund
C.
1/2nd of the accumulation fund
D.
Full withdrawal is allowed
Customer has opted for a 5 yrs guaranteed annuity option. What will happen to annuity, if
the customer survives for 5 years after the end of guarantee period?
A.
paid up to 75 Yrs
B.
annuity will be continued for next 5 Years
C.
till he die
D.
not remembered
In term insurance if Critical illness rider claim happens then what will happen to existing
policy
A.
CI benefit will cease
B.
CI benefit reduced from existing sum assured
C.
CI benefit continues
D.
No change in policy.
What is the main objective of taking the life insurance policy?

A.
Tax benefit
14.
15.
16.
17.
18.
B.
Savings
C.
Investment
D.
Protection
If person consumes alcohol- what is the type of hazard?

A.
Moral
B.
Physical
Group Insurance can be taken in following relationship

A.
employee- employer
B.
husband-wife
C.
family members
D.
society members
Where one can approach in case of dispute?

A.
IRDA
B.
Consumer Forum
Life insurance is the most important for which age group

A.
Young
B.
Pre- retirement
C.
Retirement
D.
children
Where annually increasing flexible premiums operate under a life insurance policy, what
rate of increase will generally apply?
A.
2.5%
19.
20.
21.
22.
B.
3.0%
C.
5.0%
D.
7.5%
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?
A.
1 lacs
B.
3 lacs
C.
2 lacs
D.
1.50 lacs
The regulations issued by the IRDA, require that the decision on the proposal must be
conveyed to the proposer within
A.
15 days of receiving the proposal
B.
C.
D.
Family floater health Insurance plan covers

A.
All members of a Family
B.
Husband and Wife only
C.
Parents only
D.
Children Only
According to IRDA guidelines, how long does an insurance company have to complete its
investigation of a claim?
A.
30 days
B.
90 days
23.
24.
25.
26.
C.
120 days
D.
180 days
How the Daily hospitalization cash benefit will provide benefits to policyholder who is
hospitalized?
A.
Entire charges are refunded.
B.
Entire charges less bed charges will be paid
C.
A fixed amount on a daily basis is paid irrespective of the actual cost of treatment
D.
Only Hospital bill will be paid
Who is a regulator, supervisor and monetary authority of the financial system in India?
A.
IRDA
B.
SEBI
C.
RBI
D.
SBI
Indisputability clause can be enforced by the insurance company during the

A.
First five years of policy
B.
First Two years of policy
C.
Claim
D.
Inception of the policy
To ensure that the premiums are paid out of a legitimate source of funds cash is accepted
A.
Up to 50000
B.
Up to 99990
C.
Up to 100000
D.
Without any limit
27.
28.
29.
30.
31.
If there is no claim in a year than what will be the benefit to the customer as NO CLAIM
BONUS
A.
Discount in next year premium
B.
Increase in Sum Assured next year
C.
Loans facility
D.
No benefit
An individual is said to be competent to enter into a contract if they are

A.
18 year old
B.
21 year old
C.
23 year old
D.
25 year old
Maximum time for investigation in disputed claim?

A.
1 month
B.
2 months
C.
3 months
D.
6 months
The Ombudsmans powers are restricted to insurance contracts of value not exceeding?
A.
50 lakhs
B.
30 lakhs
C.
25 lakhs
D.
20 lakhs
In which section of Policy document, Information about the location of the insurance
Ombudsman had written?
A.
Operative clause
32.
33.
34.
35.
B.
Attestation
C.
Information statement
D.
Endorsements
In Cumulative bank deposit the interest that in normally compounded on what basis.
A.
Monthly
B.
Quarterly
C.
Half Yearly
D.
Annually
The premium for accidental death benefit rider must not exceed
A.
15% of base policy premium
B.
C.
D.
If the annual premium for a plan is 32000 and a frequency loading of 4% is added in a
quarterly premium what is the amount that needs to be paid.
A.
8000
B.
8320
C.
9456
D.
9240
What amount of insurable interest does an individual have in his own life?
A.
20,000
B.
50,000
36.
37.
38.
C.
Up to the sum assured taken in the plan
D.
Unlimited
Ombudsman passes an award within which time

A.
1 month
B.
2 months
C.
3 months
D.
6 months
If the license of an agent has been disqualified by a designated authority in 2010 then the
person can apply for a license in which year.
A.
2013
B.
2015
C.
2017
D.
2020
Under the hospital care rider what is the payout made

A.
B.
39.
10% of the sum assured

Specified amount multiplied by the number of days the policyholder is
hospitalized
If the agent recommends the client to terminate an endowment plan and take a whole life in order to
earn higher commission its termed as
A.
Switching
B.
Doing a financial planning
C.
Churning
40.
Mr. Denny is married and has 2 children and his parents are alive. He has taken a family floater plan.
Under the plan who all will be covered.
A.
Denny
B.
Denny and his wife
41.
42.
43.
44.
45.
C.
Denny, his wife and children
D.
Denny, his wife, his children and his parents
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?
A.
Discounted Value
B.
Principle amount
C.
Discounted Value with persistency bonus
D.
Principle with persistency bonus
If bonus is given under a plan the additional premium added is known as

A.
Loading
B.
Investment
C.
Frequency
Nomination can be in favor of how many people?

A.
One person
B.
Two persons
C.
Three persons
D.
It can be any number
Suresh is suffering from Asthma and the policy in been done on joint life basis and the need for
nomination under the plan is less as
A.
Joint life policy
B.
Has physical ailment
What key impact will the agent have in low persistency

A.
Increase more business
B.
Increase in the agents earning
46.
47.
48.
49.
C.
Will improve reputation
D.
Will have impact in his commission.
Within how many days will the underwriter needs to inform the policyholder regarding the
status of the policy.
A.
10 days
B.
15 days
C.
30 days
D.
45 days
Certificate from the village panchayat

A.
Will be considered as standard age proof
B.
Will be considered as non standard age proof
C.
Will not be accepted
What is the maximum sum assured under a micro insurance

A.
10000
B.
25000
C.
50000
D.
100000
Varun wishes to pursue a career in insurance and wishes to be in a department which

calculates the level of premium. In which department should he join?
A.
Actuary
B.
Underwriter
C.
Claim Department
D.
Accounts
50.
51.
52.
53.
54.
If Naresh wishes to take the tax benefit of the full premium paid which is 60000, what
amount of sum assured should he avail in a ULIP plan.
A.
2 lacs
B.
3 lacs
C.
5 lacs
D.
6 lacs
Ashish is looking at different plans of insurance for protection at the lowest premium.
Which is the best plan for him?
A.
Term plan
B.
Endowment plan
C.
Whole life plan
D.
Money back plan.
The insurance act of 1938 created which of these.

A.
IRDA
B.
Tariff Advisory Committee
C.
National Insurance Academy
D.
LIC
Ashu is an illiterate person and his proposal form was filled by Nishu, then what is the
additional requirement to be taken along with the documents.
A.
The policy needs to be advertised in the newspaper.
B.
Nishu has to sign an indemnity bond.
C.
Thumb impression of Ashu has to be taken.
D.
Ashu needs to be medically examined.
Harshs policy matured, however he was paid only 25% of the sum insured in spite of all
his premiums been paid on time. This indicates that his policy is a
A.
Term plan.
55.
56.
57.
58.
B.
Endowment plan.
C.
Money back plan.
D.
Wholelife plan.
The Authority of COPA is limited to what amount at the district level.

A.
10,00,000.
B.
20,00,000.
C.
50,00,000
D.
1,00,00,000.
In case of a term plan the maximum premium of the accidental rider can be.
A.
100% of basic premium.
B.
C.
D.
With reference to the principle of indemnity a life insurance policy is a.

A.
Insurance contract.
B.
Indemnity contract.
C.
Value contract.
D.
Major life contract.
In the personal statement, Harish declares that he consumes alcohol twice every week.
This is a
A.
Moral hazard.
B.
Moral peril.
C.
Physical hazard.
D.
59.
60.
61.
62.
63.
Physical peril.
Micro insurance is made specifically for people from.

A.
High income.
B.
Middle class.
C.
Low income.
D.
Affluent class.
The reduction in the benefit illustration shows what.

A.
Charges.
B.
Mortality.
C.
Interest.
D.
Inflation.
If Insurable interest does not exists at the time of inception of the life insurance policy then,
life insurance contract is
A.
Voidable
B.
Invalid
C.
Valid
D.
Null & voidable
If a contract is signed by a 15 years old boy, this contract will be

A.
Null and void
B.
Invalid
C.
Voidable
D.
Valid
If a life insurance policy is issued with a lien, it will be mention in

A.
Proviso
64.
65.
66.
67.
B.
Schedule
C.
Terms & conditions
D.
Endorsement
Available Loan amount under a life Insurance policy is generally based on

A.
Total paid premium
B.
Sum Assured
C.
Surrender value
D.
Paid up value
De- tarrification is a process by which pricing of Insurance

A.
Rises
B.
Decreases
C.
Reaches at a level as per industry trends
D.
Insurance can price their product on their self past experiences.
As per Regulation for protection of Policyholders interest 2002 (IRDA), Which insurer will
have a grievance redressal System
A.
Some Specific Insurer
B.
Those Insurer who did not created Insurance Ombudsman System
C.
All insurer
D.
It is optional
Which body has created a call center for logging a complaint

A.
Life Insurance Council
B.
IRDA
C.
Insurance Association
D.
Insurance Institute of India
68.
69.
70.
71.
72.
What is the key function of NIA

A.
Provide suggestion for Premium calculation
B.
To be an active link between Global market & Indian Life Insurance Industry
C.
Design, implement and operate an insurance training
D.
Regulate the investment of funds by Life Insurance company
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.
He has switched his fund
B.
He has opted for Settlement option
C.
He has he has redirected his past premium.
D.
Policy was lapsed on the time of maturity
Gautam wants to purchase a Kisan Vikas Patra. What is the most suitable place to
purchase it
A.
Bank
B.
Insurance Company
C.
Post Office
D.
Share Market
Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is
3%, what can be the reason
A.
Administrative charge
B.
Inflation
C.
Interest rate
D.
Market Risk
During Fact finding, rating is mentioned 3. This Indicates

A.
Risk apatite of client
73.
74.
B.
His future aspiration
C.
Commitment to need
D.
Willingness to pay
Raunak wants to purchase a cheapest plan which can provide financial security to his
dependent. Which plan should be offered
A.
Term Plan
B.
Term Plan with return of premium
C.
Pure Endowment plan
D.
Unit Linked Plan
For tax Saving Someone wants to fixed deposit in bank. What duration is required for it?
A.
3 years
B.
5 years
C.
7 years
D.
2 years
E.
75.
76.
Incase of presumption of death

A.
Not necessary to pay premium until court decree
B.
Necessary to pay premium until court decree
C.
Claim not admissible
If insured gets the two advance payment in the 5yrs and in the maturity he gets rest of sum
assured. What type of policy it is
A.
Money back policy
B.
Convertible plan
C.
Term plan
D.
77.
Endowment policy
Which is correct in relation to Insurance Broker?

A.
Insurance broker is represents insurance buyer and remunerated by the
insurance company
B.
78.
79.
80.
81.
Insurance broker is represents insurance buyer and remunerated by the Client
Shailesh and ankit want to retire in the age of 65yrs. But shailesh pays more monthly
payment than ankit. Why?
A.
Shailesh is very older than ankit.
B.
Shaileshs income is more than Ankits income
What will be lien amount in 3rd year as compared to the 4th year of lien.
A.
It is higher
B.
Decrease
C.
Slightly higher
D.
Slightly lower
Within how many years a complaint can be made through consumer protection act.
A.
One year
B.
Two years
C.
Three years
D.
Five years
In which plan weekly premium payments are accepted.

A.
Health Insurance
B.
Group Insurance
C.
Micro Insurance
82.
83.
84.
85.
86.
87.
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?
A.
Needs to take experts suggestion
B.
Equal to base cover
Basing on which criteria the qualification of Agent is determined?

A.
Address of the agent
B.
Domicile status
Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers
illness before maturity?
A.
Nil
B.
10%
C.
20%
D.
30%
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
A.
2011
B.
2012
C.
2013
D.
2014
If we hold 100 units in gold ETF, It means that how much grams we have in physical
A.
5 or 10 grams
B.
10 or 15 grams
C.
15 or 25 grams
D.
50 or 100 grams
In case of life insurance, the insurable interest should exist
88.
89.
90.
91.
A.
At the time of taking the policy
B.
At the time of claim
C.
At the time policy matures
D.
At the time of taking the policy & claim
Pooling of insurance applies to

A.
all types insurance
B.
All types of insurance except Motor insurance
C.
Only life insurance
D.
Only Non-life insurance
Insurance companies are required to honor the awards passed by the Insurance Ombudsman within how may
days
A.
10 days
B.
15 days
C.
20 days
D.
25 days
If IRDA is unable to discharge its functions or duties, Central Government

A.
Has the power to supersede the IRDA by issuing notification.
B.
Has the power to supersede the IRDA by issuing a bill in parliament
C.
Has the power to supersede the IRDA by issuing draft
D.
Can make changes in IRDA law
An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. Its the impact
in his taxation
A.
He will get tax benefit up to 5000
B.
He will get tax benefit up to 25%
C.
He will get a reduction in tax slab
D.
92.
93.
94.
95.
His investment would be deducted from taxable income
What are the benefits to the policyholder Under Surgical care rider?
A.
Number of days admitted in hospital & surgery expenses in full
B.
Number of days admitted in hospital & surgery expenses in partial
C.
Treatment cost of surgery subject to terms & conditions
D.
Lump sum amount what he has incurred
Health insurance policy holder takes treatment in a hospital which doesnt have cashless facility. How the policy
holder will get benefited
A.
Need to spend and Get claim from the insurer
B.
Need to add that hospital as TPA
C.
Need not to claim
D.
Need to switch to the another insurer
During financial planning session if the agent finds out the following needs, which one
should be given the top priority. Needs: Income protection, Childs education, marriage and
emergency funds.
A.
Childs education
B.
Marriage
C.
Emergency funds
D.
Income protection
National insurance academy has the following main functions

A.
Calculating premium
B.
Interact with the government
C.
Training
D.
Mortality assumptions
96.
97.
98.
99.
Health insurance rider and critical illness rider in classified under

A.
Life and non life respectively
B.
Both life insurance
C.
Both non life insurance
D.
Nonlife and life respectively.
Pure risk is classified under

A.
Economic risk
B.
Speculative risk
C.
Financial risk
D.
Insurable risk
If a valid claim is delayed by the insurer then the interest for the same will have to be paid
by the insurance after how many days from the date of admission of the claim?
A.
10 days
B.
20days
C.
30 days
D.
60 days
As per IRDA regulations IGMS should be mandatory set up by

A.
Only by few selected insurers
B.
Only by non life
C.
Some life and non life
D.
By all insurers.
100.
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?
A.
Provisio
101.
B.
Endorsements
C.
Operative clause
D.
Terms and Conditions
When can an insurance company give more than 35% first year commission?
A.
When the insurance company is in the first 10 years of operation
B.
If the agent has worked with the company for more than 5 years
C.
If the agent has worked with the company for more than 10 years
D.
If the agent is doing more than 3 policies in a month.
102.
When should an agent disclose the commission which he will earn from the product which
he is going to sell
103.
A.
When the customer asks him
B.
After the fact finding process
C.
After quantifying the need
D.
After the product is recommended to the client
In a pension plan illustration what are the parts which shows the benefit for an annuitant.
A.
Insurance coverage
B.
Annuity part
C.
Guaranteed and non guaranteed part
D.
Vesting age
104.
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?
A.
213333 & 273333
B.
213333 & 229333
C.
229333 & 273333
D.
229333 & 293333
105.
The consequences of these risks which will affect specific individuals or local
communities in nature is called as
106.
A.
Pure risk
B.
Financial risk
C.
Particular risk
D.
Physical hazard
What is the disadvantage to the insurer in case the persistency falls

A.
Lower profits
B.
Higher profits
107.
For the customer whose claim has been refused by the company, the three places where
he/she should follow up are Ombudsman, IRDA Customer Grievance Cell and
..
A.
Consumer Forum
B.
COPA
C.
Sebi
D.
Life Insurance Council
108.
If a policy with premium of Rs 5000 has matured, how much will be deducted when the
maturity claim arises
109.
A.
Nil
B.
1%
C.
5%
D.
10%
When a person is investing in Debt Mutual Fund, what is the primary objective
A.
Good Returns
B.
Regular Income
C.
Safety
D.
Liquidity
110.
If the employer has insurable interest in the life of an employee, what kind of policy is
this?
111.
A.
Surety insurance
B.
Keyman Insurance
C.
Partnership Insurance
D.
Debtor Insurance
In the sales illustration, the reduction of the actual benefit amount is mainly due to
deduction of
A.
Commission
B.
Charges
C.
Non guaranteed benefits
D.
Reversionary Bonus
112.
The concept of indemnity is based on the key principle that policyholders should be
prevented from
113.
A.
Insuring existing losses.
B.
Making false insurance claims.
C.
Paying excessively for insurance cover.
D.
Profiting from insurance.
The client of reinsurer are

A.
Insurance companies
B.
Banks
C.
Asset Management Companies
114.
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 ?
A.
Endowment
B.
Term
C.
Money Back
D.
Whole of Life
115.
For assessing the risk of a group health insurance policy, which of the following
information is the most critical
A.
Group lifestyle
B.
Employees
C.
Age of the group
D.
Medical history of group
116.
According to Insurance Brokers Association of India, what is the most appropriate
relationship between Insurer and Broker?
117.
A.
Insurance broker represent the client and the insurer remunerate the broker
B.
The client represent the broker and the insurer remunerate the broker
C.
Insurer represent both client and broker remuneration
D.
Broker only service the client
A low persistency ratio for the insurance company means that:

A.
The customers are satisfied with the products
B.
The company is acquiring more business and new customers
C.
D.
A large numbers of policies have lapsed / surrendered resulting in loss of

profit
The company will not declare bonus
118.
For annuity plans, before receiving regular/periodic annuity payments, the individual can
make a lump sum withdrawal. This is known as commutation. Up to what proportion of the
accumulated fund can be withdrawn?
119.
A.
The entire fund can be withdrawn
B.
Only half of the fund can be withdrawn
C.
Only one third of the fund can be withdrawn
D.
Only one fourth of the fund can be withdrawn
What is the stipulated time frame within which an insurer is supposed to respond after receiving any
communication from its policyholders?
120.
A.
24 hours
B.
1 day
C.
10 days
D.
30 days
For an insurance agent, a low persistency ratio means :

A.
Loss of renewal commission
B.
High client satisfaction
C.
Higher reputation
D.
More earning of First Year Commission
121.
The proposer can withdraw from the contract, if they disagree with the terms and
conditions of the Policy, within a free look-in period of
122.
A.
15 days from the date of receipt of the policy document
B.
C.
D.
In the case of life insurance, insurable interest should exist

A.
At the inception of the policy
123.
B.
At the time of a claim
C.
At the time of every renewal premium payment
D.
All the above occasion
In which of the following plan remaining part of the Sum Assured is paid on maturity?
A.
Endowment Plan
B.
Convertible Plan
C.
Money Back plan
D.
Term Plan
124.
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
125.
A.
Endowment plan
B.
ROP plan
C.
Whole life plan
D.
Ulip
Payment/Investments in Kishan Vikash Patra under post office schemes is done

A.
Regularly with no fixed term
B.
Lump Sum with no fixed term
C.
Lump Sum for fixed period of time
D.
Regularly for fixed period of time
126.
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
A.
Less than 10000
B.
More than 10000
C.
Less than 20000
D.
More than 20000
127.
Under the IRDA guidelines for Claim settlement, any queries or additional documents can
asked from the claimant within
128.
A.
5 days from the receipt
B.
C.
D.
Law of Large number helps the insures to

A.
Calculate the premium
B.
Increase the profitability
C.
Ascertain the death ratio
D.
Declare the bonus
129.
A person with a criminal background due to Financial fraud would come under which
hazard
130.
131.
A.
Physical
B.
Moral
C.
Occupation
Whose signature is required on attestation of the policy?

A.
Agent
B.
Policy holder
C.
Authorized officials of insurer
D.
Proposer
What is the ceiling of tax exemption under 80 c.

A.
1 lakh
B.
1.5 lakhs
C.
2 lakhs
D.
3 lakhs
Section III - Questions and answers

1.
If customer has applied for a policy with 1 Lac SA then what is maximum Premium on which he
can save Taxes
a.
2.
If Ombudsman makes a recommendation and is accepted by Complainant then it would be

a.
3.
15 days
When agents has made a recommendation to a client and clients rejects that recommendation
by giving reasons then agent should
a.
9.
When Geeta in minor
After receiving Death intimation, in how many days insurer has to tell nominees about the
documentation required
a.
8.
Unit Linked Plan
Seema has made Geeta her nominee, in which circumstances she would be asked to make
appointee?
a.
7.
Convertible term plan
Seema & Ajay are young couple with regular monthly income; they want to save for their 5 year
old daughters education. Considering both of them are generally risk averse, Which plan would
be best suited for them
a.
6.
If Harish owes him money
Rahul is 23 year old professional with no dependent & no liabilities, which would be a plan best
suited for him
a.
5.
Binding on the insurer
Harish is a brother of Rakesh, in which circumstances Rakesh can propose a policy on Harishs
name
a.
4.
Maximum 20000
Ask open ended questions to arrive at a conclusion
If agent is not aware of answer to a technical question asked by client while presenting a Unit
Linked product to him them what should be the first thing an agent should do
a.
10.
In which circumstances while discussing a term plan with the client an agent should disclose
his commission scale to the client
a.
11.
All the charges
In which circumstances agent discloses his license to the client

a.
13.
If client asks him to do so
Out of charges mentioned below, which should be disclosed to the client while pitching a unit
linked product
a.
12.
Refer to the Product Brochure
If client asks him to do so
How would the principle of Indemnity effect on Health policies and Term Policies
a. Health policies are contract of indemnity but it does not apply on term policies
14.
NIA is set up to
a. impart training
15.
An offer by an insurer is not accepted unconditionally by the Rakesh rather he puts in a

condition, this offer in return of an offer is known as
a. Counter offer
16.
In which case the appointee in an insurance policy is made

a. When nominee is a minor
17.
Under which circumstances the full SA is not paid on death

a.
18.
Insurance Ombudsman has to pass its award within how many days
a.
19.
3 months
The Ombudsmans powers are restricted to insurance contracts of value not exceeding
a.
20.
Lien
Rs. 20 lakhs
Consumer dispute redressal forums district level will hear complaints up to the value
a.
21.
If a claim is settled by indemnity clause-what does it mean

a.
22.
When it occurs
If the client states that he wishes to purchase an expensive car even though he has limited
resources then on which category the need can be classified.
a.
30.
A void contract is invalid from inception and voidable contract is binding unless
and until one of the parties chooses to set it aside.
For whole life policies, the benefit is paid on death, regardless of

a.
29.
273333
What is the difference between void and voidable contracts?

a.
28.
Decrease in Surrender & lapsation
Calculate Paid Up value Term 30 years. Premium paid for 8 years. SA 8 lacs. Bonus declared
60k.
a.
27.
Self employed are prone to higher risk, public sector get benefits from employer;
self employed are subject to health issues
This year persistency has increased from 82 to 84%. It means

a.
26.
Share market gets volatile, increase in demand of shares, decrease in demand

of shares
Health insurance is needed for self employed other than public sector employee because
a.
25.
Couple, husband only, couples and 2 kids,couples-2kids and parents
If RBI increases interest rates of deposit what impact on share market

a.
24.
Policy bond Is lost
A couple ,has 2 children and his parents are aged in sixties opt for an family floater health plan,
who are all covered
a.
23.
Rs. 20,00,000
Real and perceived need
How you can Customer knows the commission payable to Agent?

a.
Sign taken in the benefit illustration.
31.
Arun has taken two endowment policies and both of the policies are in maturing year. But Arun
has opted for conditional assignment in 1st policy & in second policy absolute assignment. What
should the insurer verify at the maturity claim
a.
32.
For assignment endorsed in the policy document through separate deed, the insurer should
verify
a.
33.
no pending dues in the policy
The deed is properly Stamped
Which one of the following is the most appropriate one?

a.
In case of conditional assignment, the title gets reverted to the assignor on the
happening of the event
Comments: Questions on some topics

1.
Peril & hazard ( based on practical example)
2.
Pooling of risks ( case study)
3.
Utmost good faith. ( case study)
4.
Duty to disclosure
5.
Section 45.( question on 2/3/4/5 years)
6.
Age proof( a certificate from panchayat , standard/non standard/ other 2 option with
case study)
7.
Information of insurance ombudsman details mention on which section-----endorsements/exclusion/policy information/operative clause.( conclusion to be drawn from
a case study)
8.
Question from underwriting---- case study given to find out the adequate designation of
a person.
9.
10.
Benefits of surrender value ( case study given for a sudden unemployed person)
Case study on moral hazard.
11.
On death company has given money to nominee after deduction 10 % but no
pending of premium payment and no lien is there. . Loan/ surrender/paid up..( case
study)
12.
Case study on married single income with dependent parent.find suitable product
13.
Case study on need of protection & if alive maturity . Find the suitable types of
plan.
14.
Micro insurance maximum cover provided
15.
Tax implication , if ULIP policy bought..amount calculating to be found, figure was
given.
16.
Case study on bank cumulative deposit .( monthly, quarterly, yearly, half- yearly)
17.
Question from ( g- sects) ----with case study-find out the maturity value in the form of
----principal/ with bonus/ with terminal bonus/ principal with interest
18.
Case study on family floater health insurance plan.
19.
Case study on Quantifying needs.
20.
Case study on real & perceived need.
21.
After fact finding ( with case study) immediate action of agent
22.
Case study on churning ( but not from e book)
23.
Monetary authority of financial system in India..given option.
24.
Minimum age entry for getting license.
25.
Maximum ombudsmans power to insurance contracts--- 20 lakhs.
26.
What is void contract and voidable contract?
27.
It is necessary that the premiums should be paid until the court decree in presumption
of death?
28.
Insurance broker is represents insurance buyer and remunerated by the insurance
company
29.
One took term plan for 20 lakh he wants ADB rider, he is not sure of how much sum
assured need to take in ADB rider. What is your best
suggestion?
30.
How you can sure your customer knows the commission payable to you.-by sign got in
the benefit illustration
31.
What is the important objective of the fact finding-identify the client needs.
32.
in which plan weekly premium payments are accepted-micro insurance
33.
in the group insurance which one is the criteria to segment.-similar age group
34.
apart from qualification to appointment an agent, which one is the other important
factor to decide to appointment -age
35.
within how many years complaint should be made in consumer protection act-2yrs
Relating to income tax:

1.
If A were purchasing a policy worth 30,000, then how much income tax rebate would he
qualify for?
2.
If A were purchasing policy of 20,000 pr with 3 lacs of insurance cover, then at maturity
what would be the income tax levied?
3.
4.
What is the maximum of premium rebate a person can claim from income tax?
A & B have bought same endowment plan from same insurer, A pays less income tax
than B, why?( in options it was suggested that A is senior citizen)
Relating to Identifying clients needs:

1.
A is young person, just married what kind of insurance plan is recommended?
2.
A is young person with 3 yr kid, what should be the priority-protection cover, investment,
retirement?
3.
A works in private company and B works in PSU. Mediclaim product agent approaches
both but B is not keen on buying, why? ( was suggested that PSUs give medical cover
too)
4.
While giving retirement plan apart from his need, and pocket, what other factors should
be looked upon? ( inflation, cost of living)
5.
A wants to purchase mediclaim for his family consisting wife and 2 kids, what should he
approach for? ( floater was there as option)
6.
When suggesting the final solution to fact finding, what should the agent refer to as his
base for the solution? ( option was clients needs- he derived the solution based on clients
needs)
Relating to chapter 5:
1.
A man wants to buy protection plan for unspecified time period, what should he opt for?
( whole life)
2.
Which plan aims at giving protection? ( term)
Relating to Claims:
1.
A and B have bought same plan from same insurer. Both pay quarterly premium , 22
timesboth surrender their plan post 22nd premiumA pays more surrender charge than
B. why? ( option had that term that A had applied for was greater than B-thats why the
surrender charge was more)
2.
A bought a plan, and dies 2 day before grace period is to expire (premium still not paid).
What would be the claim amount?
3.
An insurer is to pay claim @ 5.2% and delays the claim by 6 months. What should be
the new rate at which it would pay the claimant? ( 2% added to initial- 7.2% was given as
choice)
4.
Question about interim bonus- a mid bonus is given, what would it be calculated upon?
Relating to Indemnity & utmost good faith, Indisputability:

1.
Principle of indemnity what does it work upon?
A.
TROP- Case study
B.
Annuity- Open market option
C.
Ulip- Case study
D.
Money back policy- SA Payment on maturity Tax laws on maturity ( 20% of SA) Income
replacement method Terminal Bonus Moral Hazard Lien Utmost good faith Law of large
numbers Insurable interest Pure risk Fact finding Authentication NIA KVP-Post office

Question Bank

Diunggah oleh

Informasi Dokumen

Deskripsi Asli:

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Question Bank

Diunggah oleh

Hak Cipta:

Format Tersedia

How are perils and hazards normally distinguished under term insurance policies?

Young married with Kids

Insist on taking the product right away

Should ask for a future date from the client

Should review once again

Term Insurance Plan

Return of premium plan

It was paid up.

It was paid up.

Shares will be more attractive.

Shares will be less attractive.

Fixed deposits will be more attractive.

Fixed deposits will be less attractive.

Vishal is older than Sandeep

Sandeep is earning more then Vishal

Vishal is working in a MNC

Quantify clients need

Priorities Clients Need

Fill up the proposal form

What is purpose of investing money in debt mutual fund?

Planning for pension

Which of the following falls under voidable contract?

Lack of insurable interest

None of the above

Law of large numbers is worked out by which of the following?

Maintaining insurable interest

With utmost good faith

If a person want to maintain emergency funds the best place is a bank or

Debt mutual fund

Do the fact finding exercise 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

Give a joint decision with the consumer forum

Dismiss the case

Gross premiums increases

What is the advantage of converting physical gold assets to gold ETFs.

More gold in value

More conversion value

Enquire about the refusal from the client

Suggest an alternative plan

Pass on to the superior

Pass on to the other agent

Generally insurance companies do not hold the premium in case of a fraud or

Pending decision from Ombudsman

Signed copy of sales illustration

Under conditions of the reinsurer

As per company policy

Reinstatement Fee and Proof of continuing good health

Premium cheque and health declaration

Only health certificate

Premium cheque with arrears

Life Long Annuity

Same for all policies sold by advisor

In life insurance business if a person is working in calculating premium rates of insurance

institutes of actuaries of India

insurance institute of India

Charted institute of insurance

Insurance institute of risk management

non insurable hazard

Rs. 32000 per month

Rs. 24000 per month