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S.

No

Question

Ans Option 1

Ans Option 2

Ans Option 3

Ans Option 4

Correct Ans / option

Sanjeev is an insurance expert who has rich experience in determining premium levels for product, what is his profile like

an actuary

loss adjuster

risk manager

underwriter

The Non Government organizations(NGO) helps the insurance industry immensely in

Promotional activities

Drafting new regulations

Linking buyers and sellers

Linking third party administrators

Investment by foreign direct investors in to Insurance co's is restricted to

12%

25%

40%

26%

Which market does the Micro Insurance Concentrate on ?

People with large families

People with Low Income

Government Employees

people living in Metro cities

What facility do the insurer use to cover Risk beyond their Limits ?

Re Insurance

Banca assurance

NGO

RBI

what is the max level under which micro insurance can be done

5000

25000

50000

1 lac

Who is the customer of a Re insurer

High Networth Individual

Insurance Companies

Licenced Insurance Agents

Non Government Organisation

Insurance company transfers the insurance which cannot bear by them to

Bancassurance

Reinsurance

TPAs

Actuaries

a policy holder takes two insurance policy and the premium amount is identical and he gets lesser commission in one of contract the reason is likely to be

one policy has more SA

ONE POLICY has more term

one policy is a single premium

One of the policy has higher Premium

10

An agent reveals his commission received from insurance sales to X&Y .Both plans are of same duration . Why is commission of X far higher that that of Y

X has brought other limited premium product

Y has brought a single premium product

X is married

Y is Single

11

Customer asks the agent to disclose the commission . The agent should

disclose on demand

Not disclose

Should call up the Insurer

Should avoid the topic

12

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

From the fact details

From signed copy of benefit From ticked column illustration of proposal form

13

Churning is bad , based on which aspect

Agents earn Lower Commission on churning

Policyholder gets more benefits

Policyholders suffer due to Insurance surrender charges and companies get good benefits branding

14

what over riding criteria an insurance agent consider while proposing a solution

risk

suitability

Flexibility

Cost

15

Sales Target is reduced . Churning will

Increase

Decrease

Will not affect

Partially

16

Higher persistency to the insurer ensures what ?

More productivity

Higher attrition

Higher Profits

Higher S.A

17

Persitency =has increased from 82 % in previous year to 86 % this year . That means

more lapsation

more attrition

less lapsation

No profits

18

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

19

A missing person is considered to be dead after

5years

8years

12 years

7years

20

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%

21

A claim was submitted & in how many days company should ask for additional documents if required

15 days

10days

20 days

30 days

22

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

Death was due to Accident

Body not found

23

An advisor while explaining the policy and to sell he accepts to give a part of his Agents commission, what is th limits

10%

20%

He cannot offer any commission

He can offer up to 50%

24

Consumer Forum at district level will hear complaints up to

20L

40L

1Cr

10L

25

How much is the rebate allowed by IRDA to client

Nil

5%

10%

35%

26

the controller of insurance in india is

IRDA

RBI

SEBI

Insurance ombusdmen

27

A insurer advertises through daily news paper . What type of marketing is

cross selling

direct selling

Solicitation of Policy

Brand building

28

Investment by NRI(Non Resident Indian) will be

No risk

Low risk

Medium risk

High risk

29

MWP- If the policy is endorsed under MWP - then the beneficiaries are wife and ?

parents

ex wife

children

mother

30

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

IRDA

31

basic qualifications of agent

sound mind & graduate

sound mind & good income level

Age and income level

His contacts in the market to solicit Insurance

32

Which Institution was Constituted by Insurance Act 1938

Insurance Institute of India

Life Insurance Council

Insurance Broker Association

General Insurance Council

33

What is the role of National Insurance Academy?

To regulate

To advise Government

To undertake training activities

To Advertise globally on Indian Insurance

34

According to IRDA act 1999, central governments involve in insurance industry over

Policy matters

complex technical issues

Promotional activities

Licensing of Insurance companies

35

Complaint council bodies other than IRDA grievance readdress forum & COPA

Ombudsman

Insurance Institute of India

Insurance Association

FERA

36

What are the ways by which a policy holder can make complaints

email

Toll free No.

Newpaper

Email or Toll free Number

37

what are the ways in which IRDA can be contacted . One is thru toll free number and other is

email

Insurance ombudsmen

visiting regional office

Through Agents

38

what is the maximum level of complaint that can be considered and taken action by ombudsmen

20 lac

25 lac

30 lac

50 lac

39

What is the period of award passed to the customer decided by ombudsman?

2months

3 months

5 months

6 months

40

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

41

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

he has to inform the customer that the co has broken relationship with the customer

he plans to change the plan

He has to explain the He takes up with the reasons for rejection to the higher authorities customer

42

lung cancer and smoking .

lung cancer is peril and smoking is moral hazard

smoking is peril and lung cancer is hazard

Death is certain

Is occupational hazard

43

The type of risk that can be insured against is

Speculative Risk

Pure Risk

Pure & Speculative risk

Non Financial Risk

44

Harish takes a life insurance policy for Ramesh. Which of the following statement best describes the principle of Insurable Interest.

Ramesh declares all his liabilities

Ramesh is elder than Harish

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

45

what is the min age to enter into the contract of insurance

16

18

20

21

46

In a whole life plan - The policyholider's responsibility to give disclosure

at the beginning of the contract

through out the contract

Revival stage

beginning of renewal

47

Types of assignment

Absolute

Term assignment

Conditional

Absolute & Conditional

48

why does an insurer insist on age proof document . To assess

SA

Risk assessment

Identity verification

Financial assessment

49

Mr A submitted the proposal form . When will the risk begins for the company?

Submission of proposal form

FPR issued

Policy issued

Agent accepts money

50

The obligation of the insurer for the whole life policy is mentioned in

Operative Clause

Preamble

Proviso

Endorsement

51

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

Asvath photograph

asvath thump impression Only

policy document need to be registered

Left thumb Impressionof Asvath along with a declaration of his friend Baptism Certificate is Non Standard & Ration card is Standard Age Proof

52

For Logging a Policy , a person gives Baptism CERTIFICATE & Ration Card . What is this ?

Both are Standard Age Proof

Both are Non standard Age Proof

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

53

To be a valid contract ,the declaration is necessary in which document

Policy Document

proposal form

FPR

RPR

54

Mr. ABC buying Term insurance policy, insurer should mention Ombudsman address in which part of policy document?

operative clause

Preamble

Information statement

schedule

55

Zainab takes insurance in the life of Jasmeet. Zainab will be called as

Proposer

Nominee

Appointee

Trust

56

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

57

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

Fund switch

Savings Element

Partial withdrawal

Surrender

58

Appointee's role

Signature on the proposal

Medical exams

insurable interest

when Nominee is Minor

59

how many nominees can be attached to a term insurance policy

one

two

three

many

60

if a policy has two nominee mentioned what should be the Min allocation

Each nominee to get Min 10%

Each Nominee to get Min 25%

the first nominee should have more than second

No such conditions

61

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

Age proof was substantially wrong

Policy has become paid up

Its a Ulip Plan

62

A life insurance policy can only be made paid up if what particular policy feature exists?

Indexing contribution.

Nomination facility.

Rider benefits.

Savings element.

63

Reasons for surrender of the policy

SA

advisor induced

no commission

Has Financial Problems

64

While calculating Human life value (HLV) two components need to be kept in mind , the one is take home salary and other is

Bank Fixed deposit rate

discount rate

Estimated life expectancy

Estimated amount at retirement

65

Annual premium of insurance product is Rs. 32,000, 4% loading on Quarterly mode of payment What is the quarterly premium?

7680

8000

8320

8500

66

why ACR

To calculate Premium

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

67

In a 20 year with profit policy,persist ency Bonus is paid at the end of

1st Year

10th Year

15th Year

20th Year

68

While Underwriting Mr X proposal , its found that there has been CRIMINAL case against him in Fraudulent act .What type of Risk this will be categorized Into ?

Fraudulent Hazard

Occupational Hazard

Physical Hazard

Moral Hazard

69

Mr A wants insurance cover . But he is drinks alcohol frequently . What kind of hazard you may categorize?

Physical hazard

Moral Hazard

financial risk

Pure risk

70

Who IS the primary underwriter of the customer?

Underwriter

Insuranc eCo

Agent

Actuary

71

Claim was settled however full Sum assured not paid though the policy was in force due to

Lien

Bonus

Surrender

Accidental death

72

Lien can be considered an alternative of which of the following

Clause

Rejection

Acceptance

Time barred

73

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

74

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

Occupational Hazard

Physical Hazard

75

Hari wants a constant life cover till his 31st birthday. But he cant afford to pay high premiums. The best suited products for him would be

Pure Endowment

Anticipated endowment

term plan

ULIP

76

At the time of maturity , quarter of the SA is paid though the policy was in force

Endowment

Lien

Money back

Surrender

77

Weekly premiums are generally collected for which type/range of palns

Banca assurance

Health plans

Micro Insurance

Term Insurance

78

Mr A is planning to invest and his needs are :1 Protection for is Income , during his absence 2.children education

Children Plan

Retirement Plan

Ulip Plan

Term Insurance

79

What tax rate,if any,will be applicable to a life insurance policy holder for the maturity proceeds of a Rs 5000 life insurance policy

Nil

10%

20%

30%

80

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

81

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

82

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

Fully taxable

10%

20%

Tax fully exempted

83

without submitting any form of claim,a life insurance policy holder received payments of survival then what type of policy he is holding

ULIP

Term

Money Back

Health

84

what is the special feature of ulip that ensures customer risk profile for long time insurance policies

fund switching

partial with drawl

premium holiday

riders

85

The best way to overcome the problem of investment decision depends mainly on peer influence is

By Canvassing wide peer group

Seeking professional advise

Go for a low investment tranchee

Postponement of investment decision

86

A person who has a temporary job Loss , where should he look for Investing other than FD

Debt Funds of MF

Govt Securities

Equities

Gold

87

RBI increased interest rates 2 times then the stock prices

increase

decrease

volatile

same

88

A person Wants to invest in a FD for Tax benefit , How many years he has to take the term of the FD ?

5 year

4 year

3 Year

2 Year

89

aditya wants to take home loan and his monthly take home is 80,000 what as a best practice should be the maximum EMI

20000

24000

28000

32000

90

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.

Increase gradually

Decrease gradually

Remain Constant

Change as per market fluctuation

91

A person is holding 100 GOLD ETF certificates . How many grams of GOLD does he Have ?

10- 20 gms

20- 50 gms

50-100 gms

10 gms

92

A customer while investing in to Recurring deposit or Cumulative deposit what are the key factors which will matter

Taxation

frequency of payment

interest rates

tenure

93

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

Insurance Branch

Post Office

Internet

Mutual Fund Office

94

If a person chooses Cumulative deposit than Recurring deposit ,difference will be in

frequency of interest calculation

Tax

Interest tax

Tenure

95

A policy holder pays identical premium amount for ULIP and EPF where he gets max tax efficiency

in ULIP policy

in EPF

same efficiency for both

Both do not give tax benefits

96

Investing in ULIP plans exempts a maximum up to what limit for Income Tax

50000

75000

100000

200000

97

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

Reduce his encasement for next six months

Insurance against Uncertainties

98

An Investor has invested in Debt mutual fund,he is ideally looking for

Equity return

Fixed Income

Stable income

Savings income

99

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

Commutation Option

Differed Annuity Option

Guaranteed period option

Open Market option

100

what frequencies can one take annuity

monthly,quarterly,half yearly,

fortnightly,quarterly,monthly, yearly

fortnightly,monthly ,half yearly, yearly

Yearly Only

101

All ULIP pension plans have to give how much percentage as Guaranteed returns

6%

9%

4.50%

10%

102

Yash wants to take open market option in Pension plan. What is the benefit?

To save tax

To switch the underlying fund

For improved annuity rate

To continue life cover

103

Commutation option allows the annuity policy holder to with draw

25%

50%

40%

33%

104

commutation is a feature of which type of policy

annuity

joint life policy

pure endowement policy

policy of another person

105

Waiting period in a health insurance policy is to address

Age discrepancy

Pre existing illness

risk

premium

106

Under a health insurance policy,if a policy holder needs to avail his no claim bonus, how can that be done

cash encashment

discount in the next premium

increase in the cover level

certain policy exclusions

107

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

Only Danny

Danny & his Wife

Danny , His wife ,His children

Danny's family and his parents

108

Implication of Daily Hospitalisation benefit paln

Fixed amt daily

SA

On the expenses Amt for particular diseases incurred daily due to daily critical illness

109

Rupkumar wants to take Commutation option. What is the maximum amount he can withdraw

one sixth

one third

25%

15%

110

Critical illness rider was taken and the rider benefit has been claimed , the rider benefit now gets

Reduced the the base SA

terminated

continues as it is

New critical Illness Rider has to be added to base Policy

111

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

112

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%

113

Mr.Ramesh invested Rs:50000 in pension policy, what is the percentage he can avail as exemption in Income tax.

33%

Pension plan is not eligible for tax exemption

100%

20%

114

In a Guaranteed annuity option of 5 years , the policy holder will get annuity till

entire life term

till 5 years and continue till annuitant lives

annuity only for 5 years

premium payment term

115

Why do Self Employed Individual have the need to buy Medical Insurance rather than People working in public Sectors

Public Sectors do not get Sick often

Public sector employees enjoy Medical Insurance Covers related to Job

Self Employed people do not have Sick Leave

Loans are available faster for Public sector EMPLOYEES

116

Mohit has two kinds, one of 6 years and other 8 years.He is the earning member and not having life cover. Before advising him to take health policy, what he should be advised.

Health policy for child

Health policy for wife

Life insurance policy for wife

Life Insurance policy for himself

117

Manoj a 26 year old is having 7 years old son. What will happen to his monthly disposable income after 15 years of job

Marginally decrease

Singnifcantly increase

less than after 15 years

will remain same

118

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

119

The sole focus during a clients fact-find 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

120

A Couple has 7 years old son, What solution would they be looking for

Retirement

health care

child education

life cover

121

In which of the recognized life stages an individual does not required any protection cover

Childhood

Young Married

Pre Retirement

Retirement

122

Benefit Illustration given to a customer quantifies an amount by which investment return is reduced. This reduction reflect the impact of

Charges

Interest

Inflation

Taxation

123

objective of fact finding

client need analysis

Product Pitching

for completing ACR

Finding out Moral hazards

124

Fact finding sheet allows the agent to

Analyze customer needs

Select the product

Proof

Reference

125

Mr A has been approached by the Agent and on fact finding the score is 3 , this represents

Low Risk Taking

High Risk Taking

Moderate Risk Taking

Zero risk Taking

126 Net premium is equal to

Premium plus interest earning

Risk premium plus interest earning

Premium minus interest earning

Risk premium minus interest earning

127 Pooling of risk in insurance means

The premium collected & deposited in a pool

All similar risks are pooled together

Premium is pool to make claims

Contribution of insurance company

128 Principle of utmost good faith will operate in existing policy

Every time premium is paid

If the policy has lapsed and it has to be revived

If the insured person falls sick and is admitted to hospital

If the insured person changes his job

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

Consideration

Legality of an object

Consensus ad idem

Acceptance

130 In case of life insurance, Insurable interest must exist

At inception of policy

Not needed

At the time of claim

Any time during the contract

131 With this type of deposit the bank pays the principal and the total interest at the end of the term

Traditional deposits

Recurring deposits

Cumulative deposits

Term Deposits

132 The Premium on all riders put together should not exceed

10% of the premium on the base policy

20% of the premium on the base policy

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

133

How riders will help the customer in life insurance

allows policyholders to customize their insurance cover with additional benefits

Rider is like a clause

Operative clause

Rider is like Preamble

134

In Daily hospitalization cash benefit scheme

The daily amount paid is fixed and will never be more or less than the cost of actual treatment

The insurance company may The insurance company will Only surgery pay an additional amount on pay for doctor consultation expenses are a daily basis if the insured is fees incurred prior to included in daily admitted to the Intensive hospitalization hospitalization benefi Care Unit (ICU) CI benefit reduced from existing sum assured

135 In term insurance if Critical illness rider claim happens then what will happen to existing policy

CI benefit will cease

CI benefit continues

No change in policy

136 What is the main objective of taking the life insurance policy

Tax benefit

Savings

Investment

Protection

137 Group Insurance can be taken in following relationship

employee- employer

Husband-wife

family members

society members

138 Where one can approach in case of dispute

IRDA

Consumer Forum

NA

NA

139 Life insurance is the most important for which age group

Young

Pre- retirement

Retirement

children

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

2.50%

3.00%

5.00%

7.50%

141

1 lac

3 lacs

2 lacs

1.50 lacs

142 The regulations issued by the IRDA, require that the decision on the proposal must be conveyed to the proposer within

15 days of receiving the proposal

20 days of receiving the proposal

25 days of receiving the proposal

30 days of receiving the proposal

143 Family floater health Insurance plan covers

All members of a Family

Husband and Wife only

Parents only

Children Only

144

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

145 How the Daily hospitalization cash benefit will provide benefits to policyholder who is hospitalized

Entire charges are refunded

Entire charges less bed charges will be paid

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

146 Who is a regulator, supervisor and monetary authority of the financial system in India

IRDA

SEBI

RBI

SBI

147 Indisputability clause can be enforced by the insurance company during the To ensure that the premiums are paid out of a legitimate source of funds cash is accepted

First five years of policy

First Two years of policy

Claim

Inception of the policy

148

Up to Rs 50000

Up to 99990

Up to 100000

Without any limit

149 In Cumulative bank deposit the interest that in normally compounded on what basis

Monthly

Quarterly

Half Yearly

Annually

150

The premium for accidental death benefit rider must not exceed

15% of base policy premium

25% of base policy premium

30% of base policy premium

40% of base policy premium

151 What amount of insurable interest does an individual have in his own life

20,000

50,000

Up to the sum assured taken in the plan

Unlimited

152 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

2013

2015

2017

2020

153

Under the hospital care rider what is the payout made

10% of the sum assured

Specified amount multiplied by the number of days the policyholder is hospitalized

NA

NA

154 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

Switching

Doing a financial planning

Churning

NA

155 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?

Discounted Value

Principle amount

Discounted Value with persistency bonus

Principle with persistency bonus

156 If bonus is given under a plan the additional premium added is known as

Loading

Investment

Frequency

NA

157 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

Joint life policy

Has physical ailment

NA

NA

158 What key impact will the agent have in low persistency

Increase more business

Increase in the agents earning

Will improve reputation

Will have impact in his commission

159 Certificate from the village panchayat

Will be considered as standard age proof

Will be considered as non standard age proof

Will not be accepted

NA

160 What is the maximum sum assured under a micro insurance

10000

25000

50000

100000

161 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?

Actuary

Underwriter

Claim Department

Accounts

162 Ashish is looking at different plans of insurance for protection at the lowest premium. Which is the best plan for him?

Term plan

Endowment plan

Whole life plan

Money back plan.

163 The insurance act of 1938 created which of these.

IRDA

Tariff Advisory Committee

National Insurance Academy

LIC

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

10,00,000.

20,00,000.

50,00,000

1,00,00,000

165 With reference to the principle of indemnity a life insurance policy is a.

Insurance contract.

Indemnity contract.

Value contract.

Major life contract

166 If Insurable interest does not exists at the time of inception of the life insurance policy then, life insurance contract is

Voidable

Invalid

Valid

Null & voidable

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

Null and void

Invalid

Voidable

Valid

168 If a life insurance policy is issued with a lien, it will be mention in

Proviso

Schedule

Terms & conditions

Endorsement

169 Available Loan amount under a life Insurance policy is generally based on

Total paid premium

Sum Assured

Surrender value

Paid up value

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

Rises

Decreases

Reaches at a level as per industry trends

Insurance can price their product on their self past experiences.

171

As per Regulation for protection of Policyholders interest 2002 (IRDA), Which insurer will have a grievance redressal System

Some Specific Insurer

Those Insurer who did not created Insurance Ombudsman System

All insurer

It is optional

172 Which regulatory body has created a call center for logging a complaints of insurance Customers

Life Insurance Council

IRDA

Insurance Association

Insurance Institute of India

173

What is the key function of NIA

Provide suggestion for Premium calculation

To be an active link between Global market & Indian Life Insurance Industry

Design, implement and operate an insurance training

Regulate the investment of funds by Life Insurance company Policy was lapsed on the time of maturity

After maturity In a Unit Linked Life Insurance Policy, customer does not get 174 received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity pl

He has switched his fund

He has opted for Settlement option

He has redirected his past premium

175 Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason

Administrative charge

Inflation

Interest rate

Market Risk

176 During Fact finding, rating is mentioned 3. This Indicates

Risk apatite of client

His future aspiration

Commitment to need

Willingness to pay

177 Incase of presumption of death

Not necessary to pay premium until court decree

Necessary to pay premium until court decree

Claim not admissible

NA

178 Shailesh and ankit want to retire in the age of 65yrs. But shailesh pays more monthly payment than ankit. Why?

Shailesh is very older than ankit.

Shaileshs income is more than Ankits income

NA

NA

179 What will be lien amount in 3rd year as compared to the 4th year of lien.

It is higher

Decrease

Slightly higher

Slightly lower

180 Within how many years a complaint can be made through consumer protection act.

One year

Two years

Three years

Five years

181 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?

Needs to take experts suggestion

Equal to base cover

NA

NA

182 Basing on which criteria the qualification of Agent is determined?

Address of the agent

Domicile status

NA

NA

183 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

2011

2012

2013

2014

184 Pooling of insurance applies to

all types insurance

All types of insurance except Motor insurance

Only life insurance

Only Non-life insurance

185 Insurance companies are required to honor the awards passed by the Insurance Ombudsman within how may days

10 days

15 days

20 days

25 days

186 If IRDA is unable to discharge its functions or duties, Central Government

Has the power to supersede the IRDA by issuing notification.

Has the power to supersede Has the power to supersede Can make changes the IRDA by issuing a bill in the IRDA by issuing draft in IRDA law parliament

187 An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. Its the impact in his taxation

He will get tax benefit up to 5000

He will get tax benefit up to 25%

He will get a reduction in tax slab

His investment would be deducted from taxable income

188 What are the benefits to the policyholder Under Surgical care rider?

Number of days admitted in hospital & surgery expenses in full

Number of days admitted in hospital & surgery expenses in partial

Treatment cost of surgery subject to terms & conditions

Lump sum amount what he has incurred

189

Health insurance policy holder takes treatment in a hospital which doesnt have cashless facility. How the policy holder will get benefited

Need to spend and Get claim from the insurer

Need to add that hospital as TPA

Need not to claim

Need to switch to the another insurer

190 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.

Childs education

Marriage

Emergency funds

Income protection

191 Health insurance rider and critical illness rider in classified under

Life and non life respectively

Both life insurance

Both non life insurance

Nonlife and life respectively.

192 Pure risk is classified under

Economic risk

Speculative risk

Financial risk

Insurable risk

193 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?

10 days

20days

30 days

60 days

194 As per IRDA regulations IGMS should be mandatory set up by

Only by few selected insurers

Only by non life

Some life and non life

By all insurers.

195 If a customer has mentioned he is a drinker in the proposal form, the insurance company can exclude this hazard and mention it in which part of the policy document?

Provisio

Endorsements

Operative clause

Terms and Conditions

196 When can an insurance company give more than 35% first year commission?

When the insurance company is in the first 10 years of operation

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

197 When should an agent disclose the commission which he will earn from the product which he is going to sell

When the customer asks him

After the fact finding process

After quantifying the need

After the product is recommended to the client

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

Insurance coverage

Annuity part

Guaranteed and non guaranteed part

Vesting age

199 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

229333 & 293333

200 The consequences of these risks which will affect specific individuals or local communities in nature is called as

Pure risk

Financial risk

Particular risk

Physical hazard

201 What is the disadvantage to the insurer in case the persistency falls

Lower profits

Higher profits

NA

NA

202 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 ..

Consumer Forum

COPA

Sebi

Life Insurance Council

203 If a policy with premium of Rs 5000 has matured, how much will be deducted when the maturity claim arises

Nil

1%

5%

10%

204 When a person is investing in Debt Mutual Fund, what is the primary objective

Good Returns

Regular Income

Safety

Liquidity

205 1. If the employer has insurable interest in the life of an employee, what kind of policy is this?

A.

Surety insurance

B.

Keyman Insurance

C.

Partnership Insurance

D. Debtor Insurance

206 The concept of indemnity is based on the key principle that policyholders should be prevented from

Insuring existing losses.

Making false insurance claims.

Paying excessively for insurance cover.

Profiting from insurance.

207 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 ?

Endowment

Term

Money Back

Whole of Life

208 For assessing the risk of a group health insurance policy, which of the following information is the most critical

Group lifestyle

Employees

Age of the group

Medical history of group

209 According to Insurance Brokers Association of India, what is the most appropriate relationship between Insurer and Broker?

Insurance broker represent the client and the insurer remunerate the broker

The client represent the broker and the insurer remunerate the broker

Insurer represent both client Broker only service and broker remuneration the client

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

The customers are satisfied with the products

The company is acquiring more business and new customers

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

The company will not declare bonus

211 What is the stipulated time frame within which an insurer is supposed to respond after receiving any communication from its policyholders?

24 hours

1 day

10 days

30 days

212 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

15 days from the date of receipt of the policy document

20 days from the date of receipt of the policy document

25 days from the date of receipt of the policy document

30 days from the date of receipt of the policy document

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

Endowment plan

ROP plan

Whole life plan

Ulip

214 Payment/Investments in Kishan Vikash Patra under post office schemes

Regularly with no fixed term

Lump Sum with no fixed term

Lump Sum for fixed period of time

Regularly for fixed period of time

215 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

Less than 10000

More than 10000

Less than 20000

More than 20000

216 Under the IRDA guidelines for Claim settlement, any queries or additional documents can asked from the claimant within

5 days from the receipt

10 days from the receipt

15 days from the receipt

20 days from the receipt

217 Law of Large number helps the insures to

Calculate the premium

Increase the profitability

Ascertain the death ratio

Declare the bonus

218 A person with a criminal background due to Financial fraud would come under which hazard

Physical

Moral

Occupation

NA

219 Whose signature is required on attestation of the policy?

Agent

Policy holder

Authorized officials of insurer

Proposer

220 What is the ceiling of tax exemption under 80 c.

1 lakh

1.5 lakhs

2 lakhs

3 lakhs

221 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?

20%

26%

49%

51%

222 The functions of the Insurance Ombudsman include:

Conciliation and making awards

Counseling

Repudiation of claim

Evaluating claim settlement

223 If a client needs Mediclaim to cover health insurance which insurer he needs to apply.

Non life insurer

Life Insure

Reinsurer

Any Insurer

224 The agent can use the benefit illustration document to show the client the projected growth of investment at the rate of

6% and 10%

5% and 10%

6% and 12%

5% and 12%

225 What is commutation of installments

The lump sum withdrawal before receiving periodic installments of annuity

The lump sum withdrawal before receiving maturity benefit

The lump sum withdrawal before receiving Survival benefit

The lump sum withdrawal before receiving Death benefit

226 Employee has insurable interest in the life of their employer to the extent of

Yearly Salary

Monthly Salary

Probation Period

Till Gratuity

227 Rahul is appointed as director of life insurance company, he cannot be an

Insurance Advisor

Nodal officer

Chief actuary

Underwriter

228 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?

Retirement plan

Health insurance for parents

Term Assurance

Endowment Plan

229 The mutual obligation of the parties is laid down in?

Operative Clause

Heading

Proviso

Attestation

230 Health Insurance is needed because

Life is very uncertain

Cost of healthcare has increased significantly

Premium increases with age

NA

231 Insurance agents are

Who work only for insurance company

Who work for customers

Intermediaries

Who works for their own interest.

232 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

Capacity to Contract

Legality of object

Capability of performance

Offer and acceptance

233 Rajan and Rajini has taken a Family Floater health insurance Plan of 4 lacs. They met with an accident and had a hospital bill of 6 lacs. Which is true for this situation:

They would get the claim of 6 lacs since The claim will depend on the The maximum claim will be the individual cover is 8 lacs surveyor of 4 lacs

Rajan will get a claim of 3 lacs and Rajini will get 1 lacs

234 When an individual gets older, chances of obtaining life and health protection will be

Increases

Reduces

Remains same

Depends on insurer

235 Any assets, which are no longer suitable or are earning fewer returns than expected, should be

Reviewed

Cashed in for investment into other assets

NA

NA

236 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?

A policy Assignment

A Fradulent Claim

A steep rise in inflation

A sudden illness

237 The Insurance companies allow modification/alteration of the original policy documents through...

Surrender

Paid Up

Endorsement

Assignment

238 HLV is used as a Yardstick to determine

Emotion Loss can be compensated for

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

NA

239

With effect from 1st July 2010 all insurers have to disclose in the benefit illustration document the..

Commission Pay to their agents

Detail of charges

Both of the above

None of the above

240 If the client accept the recommendation, then the agent should ask the client..

To pay the premium

To fill in the proposal form

To ask the documents

None of the above

241 Unethical behavior can affect the reputation

Insurance Agent & company

Insurance Agent

Insurance company

Insured person

242

It contains only statements that mention An agent is not required to obtain the prior approval of the insurer before placing the agents name, logo & phone number. an advertisement when:

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

243 If a person already suffering from some disease and had not mentioned it in the proposal form then as per IRDA code of conduct the agent should

Notify the insurer of this matter

Refuse to act for the customer benefit

Respect this Ask the proposers doctor to confidentiality by not send details to the insurer disclosing it to anyone

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

Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying. Real needs are financial needs and perceived needs are non-financial needs.

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

Perils are risks that Perils are factors Perils are factors which policyholders will die before which could affect the risk being insured a specified date and hazards influence an insured and hazards are the size of are factors which could event occurring and the risk being insured. influence that risk. hazards are the Real needs are Real needs are actual needs Real needs are identified by needs which satisfy and perceived needs are the insurance agent and an objective and based on a clients thoughts perceived needs are perceived needs are and desires. identified by the client. needs which do not

246 If a person is concentrating more on health plan and retirement plan then at which stage of life is he in.

Young unmarried

Young married

Young married with Kids

Pre retirement

247 The Institute of insurance and risk management along with insurance education does what more

Regulation

Redressal

Research

Repository

248 If the client does not wish to proceed with the recommendations right at the moment the agent should

Insist on taking the product right away

Should ask for the reason for Should ask for a future date Should review once not going with the from the client again recommendation

249 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?

Term Insurance Plan

Endowment plan

Return of premium plan

Pension plan

250 A claim was paid in a policy and it was advertised in the newspaper also. This indicates that the policy was.

It was assigned.

It was paid up.

It was lost.

It was surrendered.

251 An indemnity bond was signed in a policy when the claim was paid. This indicates that the policy was.

It was lost.

It was paid up.

It was lapsed.

It was surrendered.

252 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?

Marriage.

Savings.

Education.

Protection.

253 While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account?

Inflation.

Interest.

Discount rate

Compounding.

254 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?

Sandeep has taken another policy from Vishal is older than Sandeep XYZ Life Insurance Company

Sandeep is earning more then Vishal

Vishal is working in a MNC

255 During fact finding, What will be the next step after Identifying clients need

Quantify clients need

Priorities Clients Need

Recommending Product

Fill up the proposal form

256 What is the similarity between Recurring Deposits & cumulative deposits in a bank

Guarantees

Taxation

Tenure

Lock in periods

257

Mrs. Sheela received some amount out of her husbands death. In such a situation what will be her prime focus?

Savings

Insurance

Investment management

Planning for pension

258 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

Physical hazard

Fraudulent representation

Moral hazard

Peril

259 Which of the following falls under voidable contract?

Misrepresentation

Lack of insurable interest

Fraud

None of the above

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

Pooling of risk

Maintaining insurable interest

With utmost good faith

Randomness

261 If a client wants to compare between all financial products then the best person he can approach is

Individual agent

Corporate agent

Bank

Broker

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

Equity market

ULIP

Debt mutual fund

FD

263 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.

Do the fact finding exercise again

Insist with the client to take a Give a child plan and revisit term plan the client on a later date

Give the lead to another agent

264 If a case is already before the consumer forum, then the ombudsman should

Give a recommendation

Give a joint decision with the consumer forum

Dismiss the case

Give an award.

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

It rises

It falls

It remains constant

Gross premiums increases

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

Liquidity

More gold in value

Purity

More conversion value

267 Suresh wants to transfer his physical gold to gold exchange traded fund,in relation to access, this change will

Increase his liquidity

Decrease his liquidity

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

268

For which of the following reasons, the underwriter should ask beyond agents confidential report.

Physical Hazard

Moral Hazard

SA is too high

Pure Risk

269 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 ?

Enquire about the refusal from the client

Suggest an alternative plan

Pass on to the superior

Pass on to the other agent

270 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 With pooling of risks an insurance company pools the premium collected from 271 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?

Fraudulent claim

Indisputability clause

Redressal procedure

Pending decision from Ombudsman

Under no circumstances

Under conditions of the reinsurer

As directed by actuary

As per company policy

272 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?

Reinstatement Fee and Proof of continuing good health

Premium cheque and health declaration

Only health certificate

Premium cheque with arrears

273 Frequent switching is not advisable in ULIP plan because it increase An insurance agent sold two policies to two different persons having the same 274 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?

Investment Risk

Risk of death

Uncertainty of return

Chances of lapse

Risk profile of both the policyholder are different

Age of both the candidate are different

One has chosen Single premium policy and other has chosen regular premium policy

Both have chosen different kind of policies.

275 Open market option under Annuity policy would extend which of the following benefit?

Ensure Better annuity rate

Increase in the range

Increase in return

Switch of Funds

276 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?

Money Back

Term Plan

Endowment Plan

ULIP

277 What should an agent do in order to understand the mental state of client in respect to his investments in saving products

Fact finding

Consulting the clients parents

Consulting the family of the Reviewing his client existing investments

278 Ajit and vijit are 2 friends paying same premium for health insurance. Why ajit has higher tax exemption eligibility than vijit

Ajit is above 65years of age whereas vijit is below 65

Ajit is NRI and vijit is Indian

Ajits health is better than vijit

NA

279 Sumit is having 2 children. He wishes to have health cover for himself and his wife. Which suits him the most?

A family floater

Life insurance

Individual cover

Group health insurance plan

280 A policy holder is not satisfied with the services of the insurer and complains to ombudsman. In how many days from receipt of the complaint the ombudsman should pass the recommendation.

6 weeks

1 month

2 months

6 months

281 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?

Age admission

Disclosure of material fact

Premiums paid or not

NA

282

A and B start their policies on the same date and surrender on 22nd anniversary of the policy. But As surrender value is higher than B. the reason was ;

As health was better than B

As term was longer than B

Bs term was longer than A

NA

283 In life insurance industry which mechanism operates so as to enable the individuals to reduce the impact of risks

Pooling of risk

Transfer of risk

Prevention of risk

Sharing of risk

284 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

Policy document

NA

285 A policyholder wants to change the nomination after 5 years of the policy. What would happen

Change not allowed

Can be done through endorsement

Can be done through an affidavit sworn in

A simple application would do.

286 An insurer can invoke indisputability clause in case of death only in

Non payment of due premium

Breach of duty of disclosure of material facts

NA

NA

287 Compound reversionary bonus of 4 % will be calculated on

Sum assured

Sum assured plus bonus till date

Premiums paid till date

Sum assured minus bonuses paid till date

288 A proposer shows his age lesser than his actual age. This will be termed as

Breach of utmost good faith

Breach of trust

NA

NA

289 An agent recommends a term plan in keeping with the ethical standards since it was suitable to clients needs. In such a case what is the percentage of commission which he can rebate so as to beat the competition

Maximum 10%

Half of the commission

Cannot rebate at all

2%

290 A client has got some funds and wants to provide for retirement and margin money. What should be his priority

Margin money

Retirement plan

Depends upon his actual age and years left for retirement

Depends upon the amount needed

291 While planning for retirement fund to calculate the required amount needed at that time we should consider as priority

The inflation rate

The interest rate

His income

NA

292 While calculating retirement fund required for a self employed person which of the following option will automatically be ruled out

Gratuity amount

His standard of living

NA

NA

293 A client has his investment in equity shares. Agent advises him to keep it in equity based mutual fund. This will make the risk

Diversified

Lessened

Increased

NA

294 Ajay is 35 years old. He wants good amount of life insurance cover along with savings element with no defined term. Which plan should be suggested

Endowment

Term

Whole life

Moneyback

295 Which of the following act from agent will be specifically useful in case of annual premium policies compared to monthly mode policies

Explaining charge structure

Issuing reminders

Offering credit facility to client

Offering premium collection facility to client

296 Underselling life insurance comes under unethical practices because

It might fell short of actual needed and family would suffer

It will bring a smaller premium

Tax exemption will be lesser

NA

297 During product recommendation the agent should explain the product in relation to

The needs that came to fore in fact find process

Benefits of the products

Commission on the products

NA

298 The income of an individual can be protected with the help of

a unit linked policy

a term life policy

an endowment policy

a money back policy

299 As per the IRDA circular an insurance agent

need not disclose the amount of commission

need to disclose the amount of commission

needs to disclose the amount of commission on demand

Should not disclose

300 During the recommendation stage the advisor needs to

recommend the products that best meet the client's needs

recommend to wait some days to invest

recommend the new product the company has recently launched

Recommend to take own time to take a decision.

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

He regularly pays premium so he can take loan from both the policies

He cant take loan He can surrender whole life He cant take loan from from whole life policy policy and can take loan from money back but can avail but can avail loan Money back policy loan from Whole life policy from Money back policy Convertible pure Endowment Convertible money back plan

302 Mr. Kartik got a job recently, he cant afford to pay to pay the higher premium as of now but in future once he settles down with his job he can pay higher premium. Which one will be the best plan?

Convertible Endowment plan

Convertible Term plan

303 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?

Fact Finding document

KYC document

Benefit illustration document

Client benefit document

304

Mr. Mehra wants to insure his wife. Previously his proposal was rejected by another company, but this time he submits the proposal form without showing this to a new company. This is

Non-disclosure of material facts

Concealment of material facts

Fraudulent misrepresentation of material facts

Innocent misrepresentation of material facts

305 When does nomination get invalidated

On assignment

If more than one person is nominated

NA

NA

306 Law of large numbers help in calculating the

severity of risk

physical hazard

moral hazard

Probability of risk

307 A lien is generally used as a substitute to charging

a high premium for a high risk

for reduction in sum assured

NA

NA

308 If the customer wants to seek information about all products, then he can avail the services of

Agent

Broker

NGO

Bank

309 In case of pension plans a guaranteed minimum return of 4.5 % is applicable when the plan is

Indexed

Guaranteed

Unit linked

NA

310 A married couple having 9 year old child have to consider life insurance, health insurance, child investment & retirement plans for their better future as a family but at present condition which aspect should be kept at lowest priority?

Child Investment

Health Insurance

Life Insurance

Retirement

311 The main reason why an agents act of underselling insurance is treated as a unethical behavior is

Benefit could fall short of the financial liabilities

Excessive Premium

SA ceased too early

Tax concession opportunity could be lost forever

312 In which type of insurance Insurable Interest exists at the time of claim?

Liability Insurance

Marine Insurance

Motor Insurance

Travel Insurance

313 In a process of completion of an insurance proposal, an agent finds that the intention of the proposer was not genuine. In this case what should the agent do?

Contact the Regulators

Issue a wrong note

Refuse to proceed

Inform the insurer

314 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..

Quotation Request Form

Proposal Form

Policy Document

Claim Form

315 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

Switching

Doing a financial planning

Churning

Fact Finding

316 After completing a Fact Finding activity for a client, who is self employed, the main reason why it is important to record the type of work that he is involved in is

It affects the basic cost of cover

Dictate the Rider Benefit should be recommended

Helps to quantify the clients attitude to risk

Influence the tax status

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

The customers are satisfied with the products

The company is acquiring more business and new customers

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

The company will not declare bonus

318 Mr. Shyam is having 9 year old child. Which product is not to be given priority?

Health plan

Child Plan

Life Insurance

Retirement Plan

319 Which is the best option to manage risk?

Retain

Transfer

Avoid

None

320 What is the major reason for self employed to take insurance.

Save Tax

Fluctuating income

High Returns

Protection

321 What is the major reason for conducting fact finding exercise?

Need analysis

Understand about company

Introduction of agent

Understanding the Customer

322 If 5% bonus is given every year then for a SA of 1 lakh, what will be the payout after 15 years in a simple revisionary bonus system?

60000

75000

100000

5000

323 The guidelines for annual assumed growth rate are given by

Life Insurance Council

IRDA

Actuaries

Underwriter

324 Pricing element is done by

IRDA

Insurance Company

Life Insurance Council

CII

325 AML Program of every insurer to include _______________, apart from Procedure, Training and audit.

Inspection by IRDA

Audit by Finance Ministry

Appointment of Principal Compliance Officer

Inspection by Auditor General

326

Ravi was expecting a claim amount of Rs. 12, 00,000 from insurer. But it was rejected. He feels that it is repudiated on wrong reasons. Which consumer forum can he approach?

National Commission

District Level

State Level

Mandal Level

327 Vijay received his policy bond on 11th June, 2011. Due to some personal problems he has decided to cancel the policy on 8th July, 2011. Can he cancel or return the policy?

No, as 15 days period is over

Yes, as it is within 1 year

No, as 20 days period is over

Yes, as it is within 3 months

328 Naresh is married and his daughter Sneha is 3 years old. Which plan can he take?

Term & Children Plan

Annuity Plan

Whole Life Plan

Health Plan

329 Vinay doesnt want to take insurance on himself. He feels that his family will survive with the funds available in the bank and monthly rentals received from village. This comes under Risk ______ Naveen, aged 32 years, has taken money back plan. He is a teacher by 330 profession. Naveen referred Prasad to Ram. Prasad is also teacher. Ram who is an agent advised Prasad to take money back plan as he is of same age (33 years). Is it the right advice? Why?

Transfer

Control

Retaining

Avoidance

Yes, as Naveen and Ram are of same age.

No, customers needs are different

Yes, as both are teachers

No, as there is an age difference.

331

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.

Normal

Fraudulent

Early

General

332 What is the minimum Sum Assured allowed for Micro Insurance?

5000

10000

15000

20000

333 What does MDRT Stand for?

Million Dollar Round Table

Major Double Rupees Tag

Major Dollar Round Tag

Mean Disposition Residence Time

334 In a case, the underwriter felt that the risk associated with the person would decrease with time, then he would accept the case with

A clause

A Lien

A Loading

Level Premium

335 If the recommendation of the agent has been rejected by the client, the agent should:

Ask the client to fill the proposal form

Find out the reasons for refusal

Must try to convince the client to follow his recommendation

Must try to force the client to follow his recommendation

336 Which of the following is true regarding Family Floater Health Insurance Plan?

A Family Floater Plan is the same as a Individual Plan

Only self and spouse can be Any number of people may covered in this plan be covered in this plan.

The insurance cover is shared amongst the family members in no fixed Proportion

337 In what proportion is the cover in a Family Floater Plan shared?

25% each

15% each

50% each

No Proportion

338 To identify suitable products their main features and their tax treatments is the role of:

Agent

Insured

Policy Holder

Insured person

339 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

Critical Illness Rider

Hospitalization Care Rider

Accidental Benefit Rider

Surgical Care Rider

340 Mr. X is married with wife, 2 children and aged parents Health premium is allowed for

X only

X with wife

X with wife and kids

X with all

341 Maximum Life cover

20 times annual salary

500000

1500000

4000000

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

Rs.20000

Rs.25000

Rs.5000

Rs.50000

343 Bank interest is accumulated

Monthly

Yearly

Quarterly

Once in 6 months

344 _____ controls monetary system in India

RBI

IRDA

SEBI

Constitution

345 Hospitalization rider has the following benefit:

Person receives fixed amt daily for no of Person receives an amount days in hospital equal to the expense.

Person receives a fixed amount of 1000 daily.

Person receives benefit only if he is hospitalized for 3 days minimum to obtain loan as when required to meet financial obligations

346 The main purpose of buying an insurance policy normally is

to develop the habit of savings

to obtain Income Tax benefits

for protection of financial security

347 Insurance is a mechanism through which risk of an individual can normally be

transferred

prevented

avoided

reduced

348

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

Peril, Risk and Hazard are of the same meaning

Peril is the event, Risk is the loss of event and Hazard is the wrongful even

Peril is the event, Risk is the cause of event and the Hazard is an event of dangerous nature

Peril is the event, Risk is the likely occurrence of the event and the Hazard increases

349 Pooling of risks is one of the fundamental principles of insurance where the Insurers pool the premium collected from Rohit, 17 years old, submitted a proposal for Endowment plan of Rs.1 lac to AB 350 Insurance Co. In the absence of an essential ingredient of a valid contract, the proposal was not accepted. Which factor caused the insurer for non-acceptance of the proposal?

all types of financial risks

the homogeneous risks

the heterogeneous risks

the speculative risks

Capability of performance

Legality of object

Capacity to contract

Offer

351 A proposal of life insurance is not accepted in the absence of Insurable interest which mainly depends on the

blood relation between the Proposer and the Life assured

Proximity of relationship between the Proposal and the Life assured

Emotional Financial relationship relationship between between the Proposer and the Proposer and the the Life assured Life assured To see that the plan To give truthful report to the as proposed by the Insurer all about the life to client is not changed be insured on underwriting

352 What role an agent is likely to play in the process of underwriting?

To see that the proposal is accepted by the underwriter at OR

To ensure that his client is not burdened with extra premium

353 In insurance, HLV is a known abbreviated term. How the meaning of HLV can best be described in relation to a income earning proposer?

Present value of the Difference between the future earnings less Yearly income is the HLV of Sum assured is the HLV of the proposer Assets and Liabilities is the personal expenses the proposer HLV of the proposer is the HLV of the proposer Pension and monthly income. Death cover and maturity benefit. Interest yield and variable income

354 The basic elements of life insurance are:

Accident benefit and riders.

355 Pick the wrong answer. In a child plan:

Deferred date is a policy anniversary.

On vesting date policy has to After vesting the contract is Deferred date is date be assigned to the life between the insurer and the on which the risk assured. life assured. commences. Age increases, Risk decreases and the Risk appetite decreases

356 There is a relation between Age, Risk and Risk appetite. Which relation is most likely to be acceptable?

Age increases, Risk increases and the Risk appetite increases

Age increases, Risk increases and the Risk appetite decreases

Age increases, Risk decreases and the Risk appetite increases

357 Regular savings creates a fund to meet adverse incidents in future. For drawing a financial plan for savings needs of an individual without capital, what is the Fund which comes first?

Retirement fund

Emergency fund

Fund for untimely death

Education Fund

358 A Proposer asks for double death benefit in an Endowment assurance plan for 15 years. How his proposal will suitably be dealt with?

By offering another Endowment assurance plan

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

By addition of Term assurance rider to the proposed Endowment assurance plan

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

359 In a Health insurance plan what the particular feature is likely to cause the Insurer to decrease the Renewal premium?

Cashless facility

Exclusion

No claim bonus

Waiting period

360 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?

Employment

Age

Marital Status

Liability

361 A provision for superannuation is normally taken a high need to

a Public sector employee

an unmarried young

A self-employed person

A Government employee

362 Financial 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

Disability

Unemployment

Sickness

Education

363 Which one is not an asset

House

House loan

Investment in shares and mutual fund

All of them

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

Sales transactions

Relationship transactions

Monetary transactions

Assured transactions

365 Which Act or Regulation provides that the Renewal commission is payable to the legal heirs of the Insurance agent in case of his death?

IRDA Act,1999

IRDA Regulations, 2000

Insurance Act,1938

Indian Contract Act,1872

Ranjan took out a 20 years Money Back plan on his own life 5 years ago. Survival claim will not be paid and only 366 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 death claim will be paid to the Nominee claim? A regret letter will go intimating that nothing is payable as death claim

Both the survival claim and the death claim will be paid to the Nominee

Survival claim will be paid Bothe claims will be to the Legal heirs and the paid to the Legal death claim to the Nominee heirs

367 A life assured died after 40 days from the payment of his monthly premium. If there be any claim, how the claim will normally be dealt with?

Full sum assured Full sum assured will be paid Paid up value, if any, will be less deduction of as death claim paid as death claim unpaid premium will be paid

368 Agent offering rebate may be fined

Rs. 300

Rs500

Rs 1000

Any of them

369 In MWP Act Policy, claim is paid to

Nominee

Assignee

Trustee

Policy holder

370 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

for life

for 10 years from the date of disqualification

for 7 year from the date of judgment

for 5 years since completion of the sentence imposed

371 Central govt has authority of Direction to IRDA on

Policy matter

To present statement of IRDA act in Parliament

May issue notification

All of them.

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

Behavioral requirements of EGovernance

Market competition

Requirements of the Life Insurance Council

Regulations of IRDA

373 For redress of grievances of the policyholders, a number of Authorities have been formed. Which of the Following authorities has been empowered to hear the complaints and adjudicate?

Insurance Ombudsman

Consumer Grievance Redress Forum

Consumer Affairs department

IRDA

374

In the context of IRDAs code of conduct, the term Ethical behavior can be best described as

a behavior that is based upon the positive judgment of an individual

a behavior that is based upon the legal judgment of an individual

a behavior that is based upon the ritual judgment of an individual

a behavior that is based upon the moral judgment of an individual a breach of a provision of the Insurance Act,1938

375 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

a kind of gift for purchasing insurance products

a rebate on the price amount a breach of IRDAs code of like other sales conduct

376 Principle of utmost good faith is expected for max up to which stage

Before the contract is concluded

NA

NA

NA

377 A nomination is not required if

Policy is taken under joint life basis

NA

NA

NA

378 Bank savings account earn cumulative interest at what frequency

Monthly

NA

NA

NA

379 A person has 6 months of emergency funds.This is:

Reasonable

NA

NA

NA

380 If I invest in a G sec partway(ignore periodic interest payments).I will get on Maturity

Prinipal amount

NA

NA

NA

381 Daily hospitalisation benefit:

No of days spent in hospital multiplied by Daily hospitalisation benefit

NA

NA

NA

382 ADB rider premium cannot exceed

30% of the base premium

NA

NA

NA

383 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?

NA

NA

NA

384 Persistency can be improved by:

Providing service to the clients

NA

NA

NA

385 IIRM is in areas of education and While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account?

Research

NA

NA

NA

386

1. Inflation.

2. Interest.

3. Discount rate

4. Compounding.

387

Which of the following falls under voidable contract?

1. Misrepresentation

2. Lack of insurable interest

3. Fraud

4. None of the above

388

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?

1. paid up to 75 Yrs

2. annuity will be continued for next 5 Years

3. till he die

4. not remembered

After maturity In a Unit Linked Life Insurance Policy, customer does not get 389 received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity plan

1. He has switched his fund

2. He has opted for Settlement option

3. He has he has redirected his past premium.

4. Policy was lapsed on the time of maturity

390

Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason

1. Administrative charge

2. Inflation

3. Interest rate

4. Market Risk

391

During Fact finding, rating is mentioned 3. This Indicates

1. Risk apatite of client

2. His future aspiration

3. Commitment to need

4. Willingness to pay

392

Incase of presumption of death

1. Not necessary to pay premium until court decree

2. Necessary to pay premium until court decree

3. Claim not admissible

4. Depends on case to case

393

Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness before maturity?

1. Nil

2. 10%

3. 20%

4. 30%

394

Pooling of insurance applies to

1. all types insurance

2. All types of insurance except Motor insurance

3. Only life insurance

4. Only Non-life insurance

During financial planning session if the agent finds out the following needs, 395 which one should be given the top priority. Needs: Income protection, Childs education, marriage and emergency funds.

1. Childs education

2. Marriage

3. Emergency funds

4. Income protection

396

For assessing the risk of a group health insurance policy, which of the following information is the most critical

1. Group lifestyle

2. Employees

3. Age of the group

4. Medical history of group

397

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

1. Critical Illness Rider

2. Hospitalization Care Rider 3. Accidental Benefit Rider

4. Surgical Care Rider

398

A Professional insurance market carries..

1. Need Based Selling

2. Product Based Selling

3. Commission Based Selling

4. Company Based Selling.

399

Insurance Market divided into

1. Endowment and Money Back Insurance

2. Life and General (non-life) 3. Government and Private 4. Health and Saving Insurance Insurance Markets Insurance Markets

400

What is Bancassurance?

1. Giving insurance policies to Banks.

2. Selling insurance policies through Banks.

3. Giving guarantee to policies by Banks.

4. None of the above.

401

The Risk contains.

1. Peril and Hazard

2. Level

3. Uncertainty

4. All of the above.

402

Grouping the similar risks by Insurance Company is called as.

1. Grouping of Risk

2. Risk Grading

3. Risk Assessment

4. Pooling of Risk

403

The function of Insurance works on..

1. Risk Transfer

2. Risk avoid

3. Risk retention.

4. All of the above.

404

A contract comes into existence when

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

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

405

Mr. Kumars wife is suffering from blood cancer. Doctors lost their hope on her live. Mr. Kumar would like to take Life Insurance policy on wifes name in order to get monitory benefit. Insurance company rejects this proposal on the grounds of.

1. Anti Money Laundry

2. Legality of object or purpose

3. Capacity of paying future premiums.

4. All of the above

406

Under this situation may leads to breach of the duty of utmost good faith.

1. Non disclosure of material facts.

2. Concealment of a material 3. Fraudulent fact misrepresentation of facts.

4. All of the above.

407

The principle of utmost good faith is not applicable to

1. Facts of common knowledge

2. Facts of law

3. Facts those are not material.

4. All of the above.

408 What is the main source for insurance company to get information of proposer?

1. Advertisements.

2. Proposal form.

3. Conducting interviews.

4. Telephonic conversations.

409

What are the factors involved in calculating Surrender Value of the Policy?

1. Number of years premium paid.

2. Number of premiums payable.

3. Sum Assured

4. All of the above.

Mr. Kumar is taken one life insurance policy with ABC Company. But he is not 410 satisfied with the policy benefits. What Mr. Kumar can do under this situation?

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

2. He can file a complaint against insurance company in court.

3. He can send back the policy document to insurance company with in 15 days from policy receiving date. 3. Occupation and Residence of Proposer.

4. Serve notice to insurance company on policy benefits.

411 Moral Hazard reflects the .

1. Intentions and attitude of Proposer.

2. Habits and Hobbies of Proposer.

4. Medical and Personal History of Proposer.

412

Income replacement methods equates Human Life Value (HLV) to

1. Future value of Present earnings.

2. Present value of future earnings.

3. Present value of previous earnings.

4. Future value of previous earnings.

413

Agent will be called as..

1. Primary Underwriter

2. Main Underwriter

3. Chief Underwriter.

4. Information Underwriter.

Mr. Rajesh has taken policy from ABC insurance company for Rs. 500000 Sum 414 Assured by paying Rs. 50,000 premium per year. Company declared 5% Simple Reversionary bonus, what is bonus amount?

1. Rs. 2500/-

2. Rs. 25000/-

3. Rs. 250000/-

4. Rs. 5000/-

415

Term Insurance Plan will give.

1. Only Death Benefit.

2. Only Maturity Benefit.

3. Only Bonus Benefit.

4. Only Tax Benefit.

416

Low risk products give..

1. High Returns

2. Low Returns

3. Moderate Returns

4. Good Returns

417

Who will maintain Mutual Fund Schemes?

1. Mutual Fund Management Societies

2. Mutual Fund Management Systems.

3. Asset Management Companies.

4. Asset Maintenance Company Limite4.

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

1. Insurance

2. Purchasing House

3. Investment.

4. Contingency/ Emergency Fun4.

419

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.

420

Which of the following product not comes under Section 80 ( C ), income tax act 196

1. National Saving Certificates.

2. Equity Linked Saving Schemes.

3. Principle component of home loan.

4. Premium paid for Health Insurance Plan.

Mr. Suresh purchase one pension plan and accumulated Rs. 9,00,000 amount 421 in his pension fund. He would like to utilize commutation benefit before taking pension. What is amount Mr. Suresh can withdraw as commutation?

1. Rs. 3, 00,000/-

2. Rs. 4, 50,000/-

3. Rs. 90,000/-

4. Rs, 4, 85, 468/-

422

Customer has to pay the amount in regular intervals to create purchase price or Pension Fund. We call this phase as..

1. Collection Phase.

2. Accumulation Phase

3. Pension Phase.

4. Primary Phase.

423

Some Health Plans will give coverage for family members also. We will call these plans as..

1. Family Health Insurance Plans

2. Total Protection Policies.

3. Family Floater Health Insurance Plans.

4. Family Rakshak Health Plans.

424

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?

1. Taking Life Insurance plan with Critical Illness Rider.

2. Taking Health Plan, Insurance Plan separately.

3. Taking Medi-claim plan with Life Insurance.

4. Taking Hospital Benefit Plan with Endowment Plan.

Mr. Govind, Advisor with ABC life insurance company find out one client is 425 seeking solutions for health care and inheritance planning. Which main life stage he most likely to fall into?

1. Young Unmarried.

2. Young married with children.

3. Retirement.

4. Children.

426

Which type of questioning is very useful to gather information from clients?

1. Closed Ended Questions

2. Open Ended Questions.

3. Interrogative Questions.

4. Clarification Questions.

427

Perceived needs are those.

1. Short term needs.

2. Imagined to be important 3. Imagined to be important 4. Long term needs. by Advisor. by client.

428 Need analysis involves identifying

1. Financial provision to meet predictable and unpredictable needs.

2. Capacity to pay the premiums in future.

3. Existing insurance plans.

4. Family and Employment details.

429

Which is the not part of KYC norms?

1. Photographs

2. Proof of identity

3. Proof of address.

4. Lapsed policy details.

430

Remuneration to Agents includes

1. First Year Commission

2. Renewal Commission.

3. Both of the above.

4. Salary and Reimbursement.

Mr. Gayaram, Advisor who advised the customer to close the old policy and 431 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

1. Switching

2. Churning

3. Redirecting.

4. Shifting.

432

An insurance agent is intermediary between.

1. Client and Insurance Company

2. Insurance Company and IRDA

3. Client and IRDA

4. Insurance and Reinsurance company.

433

What is the factor which has influence on persistency?

1. Role of Agent

2. Product Design.

3. Policy Servicing

4. All of the above.

434

What is meant by a claim under insurance policy?

1. A demand to fulfill the policyholders obligations.

2. A demand to fulfill the insurers obligations.

3. Any demand made by the 4. All of the above. policyholder on the insurer.

435

Who will take the initiation to settle the maturity claim process?

1. Client

2. IRDA

3. Advisor

4. Insurance company 4. Enquiry will be done if death happens before one year from policy inception date.

436 Which is the right statement regarding claim enquiry?

1. The insurance company makes enquire only on death claims.

2. The insurance company makes enquire on maturity claims only.

3. Enquiry will be done on both Maturity and Death Claims.

437

Which is the 2nd stage in Money Laundering?

1. Layering

2. Placement

3. Integration

4. Amalgamation.

438

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

1. Insurance Regulatory and Development Authority.

2. Reserve Bank of India.

3. Tariff Advisory Committee.

4. Insurance Institute of India.

439

How many ombudsmen offices located in India?

1. 10

2. 12

3. 14

4. 15

440

What the name of department that is established by IRDA to deal with customer complaints?

1. Customer Complaint Department (CCD)

2. Customer Grievance Department (CGD)

3. Consumer Affairs Department (CAD)

4. Consumer Protection Department (CPD)

441

Ethics can be defined as

1. Those values we commonly hold to be good and right.

2. Behavior that is based upon the moral judgments of an individual

3. A study of what makes ones own actions right or wrong.

4. All of the above.

442 Which is not unethical behavior in below statements?

1. Over selling of Insurance policies.

2. Under selling of Insurance policies.

3. Explaining all details of the policy to customer.

4. Churning.

443

Mr. Mahesh is a software engineer. He has taken a term insurance for Rs. 30,000,00/- for 30 years. This is an example for-----------------

1. Risk retention

2. Risk transfer

3. Risk avoidance

4. Risk tolerance

444 Which of the following do not include the channel of indirect marketing?

1. individual agents

2. bancassurance

3. insurance brokers

4. through internet

445 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.

446 The business of Insurance is connected with................

1. physical values of assets

2. economic values of assets

3. metaphysical values of assets

4. market values of assets

447

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

1. death is certain

2. death is uncertain

3. the timing of death is uncertain

4. Death is the solution.

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

1. future data

2. past data

3. statistical data

4. mathematical data

449

Where do you not find insurable interest in the following options.........

1. surety-co surety

2. employee-employer

3. husband-wife

4. brother-sister

450 The principle of utmost good faith applies to...........

1. only insurers

2. only proposer

3. both insurers and proposer

4. neither insures nor proposer

451 When an illiterate person wants to have a policy.....

1. an impression of the left thumb is taken and third party has to attest it

2. an impression of the left thumb is taken and the advisor has to attest it

4. A relative of the 3. an impression of the left illiterate person has thumb is sufficient and need to sign on behalf of not be attested that illiterate person. 4. Mr. Shanth can 3. the policy may be renew the policy only renewed on different terms on the approval of and conditions the insurer

452

Mr.Shanth has taken an endowment policy of 15 years with ABC insurance company. He has paid premium for 4 years and he could not pay premium for 5th and 6th year. In the 7th year he approaches the company to renew the policy. Now which of the following options will apply to him?

1. The policy will be renewed on the existing terms and conditions.

2. Mr. Shanth cannot renew the policy

453

Which of the following statement is not true in connection with nomination?

4. The section 39 of 2. Nomination can be done 3. A person having a policy 1. The life insured can nominate one or the Insurance Act either at the time the policy is on the life of another should more than one person as nominees. 1938 speaks about bought or later. make a nomination. the nomination. 4. Conditional 2. The assignor need not be 3. Section 45 of the assignment and major at the time of insurance act speaks about absolute assignment assignment. assignment. are one and the same. 2. Mr. Shanth can take loan which should be certain percentage of the surrender value of the policy. 3. There is no concept of loan in insurance policy 4. loans are allowed only in term plans

454 Which of the following statements in correct in connection with assignment?

1. Assignee cannot make fresh nomination in the policy

Mr. Shanth has taken an endowment policy of 20 years. He has paid premium 455 for 10 years and now the policy is in force. At this point of time can Shanth take loan?

1. Mr. Shanth will not be granted any loan

456 The underwriter can get the required information about the proposer in.....

1. Proposal form.

2. renewal receipt

3. brochure

4. annual report

457

Mr. Ramesh works in a mining company. So he is exposed to..............

1. moral hazard

2. physical hazard

3. mental hazard

4. Ethical hazard.

458

Lien is imposed on a policy when underwriter feels that......

1. the risk associated might increase

2. the risk associated might decrease

4. the risk 3. the risk associated might associated might be not be harmful general

459

The income of an individual can be protected with the help of.........

1. a unit linked policy

2. a term life policy

3. an endowment policy

4. a money back policy

460

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......

1. when he dies

2. when he survives the term

3. when he is hospitalized

4. when he loses his job

461 The disposable income means......

1. the surplus amount that can be invested

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

3. the annual bonus amount

4. the sum of one's all investment

462

Mr. Shanth is in his early 20s and has just started earning. His risk appetite is expected to be.....

1. high

2. low

3. normal

4. Neutral.

463

Which of the following ways is easier for a person to take a saving product?

1. through individual agents

2. through internet

3. corporate agents

4. call centers

464

Flexibility like partial withdrawal and taking premium holidays is possible with....

1. Fixed deposits

2. Unit linked Insurance plans

3. Term Insurance

4. Endowment plans

Mr. Rajgopal has invested some money. He has been informed clearly about 465 the tenure, interest rate and method of payment of interest at the inception of the investment itself. His investment may be in.....

1. Life Insurance

2. Mutual fund

3. Shares

4. Bank deposits

466

Which of the following is not a feature of WOP rider?

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

467

Mr. Ramakant is 35 years old. He has bought retirement plan for 20 years. This type of pension plan is known as..................

1. immediate annuity

2. life annuity

3. deferred annuity

4. joint life annuity

468

Mr. Ranga has taken Critical Illness Rider. In which of the following scenarios the insurance company will pay him......

1. When Mr. Ranga dies due to critical illness

2. When Mr. Ranga is diagnosed a critical illness

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

469 The younger the age of an individual..............their liabilities will be.

1. the lower

2. the higher

3. the smarter

4. the superior

Mr. Ramachandra's son Mr. Bharat has just employed as a software engineer, 470 daughter Anusha has got married. Now Mr. Ramachandra is free from his burden. So Mr. Ramachandra is now in the ...................stage.

1. Pre-retirement stage

2. Post retirement stage

3. Married with older children stage

4. Employment stage

Mr. Vinodh has lot of inconvenience to reach office every day. So he wants to 471 buy an expensive car when he will have sufficient fund. Here Mr. Vinodh's need is.............

1. Real need

2. Perceived need

3. Imaginary need

4. Important need

472

During the recommendation stage the advisor needs to......

1. recommend the products that best meet the client's needs

2. recommend to wait some days to invest

3. recommend the new product the company has recently launched

4. Recommend to take his own time to take a decision.

473

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

1. good

2. bad

3. compulsory

4. appreciable

474

According to IRDA regulations the maximum percentage of first year commission to be paid to an insurance advisor is.............

1. 30 %

2. 35%

3. 40%

4. 45%

475

In the case of agent's death, the commission payable will be paid to.........

1. his legal heirs

2. to his nominee

3. will stop automatically

4. Paid in lump sum to the survivors.

476

Mr. Chintamani has taken a policy from ABC Company on 2nd March 2010, but unfortunately he died on 18th August 201 His death claim is considered as..........

1. Normal death claim

2. Early death claim

3. Abnormal death claim

4. Unnatural death claim

477

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

1. Maturity claims

2. All death claims

3. Early death claims

4. Rider benefit claims.

478

In insurance, if a person is not heard for .......years his is presumed to be dead.

1. 5 years

2. 6 years

3. 7 years

4. 8 years

479

In the process of settling maturity claims....

1. the company will wait until the 2. the process is initiated by claimant comes to office to demand the the company well in advance claim of the maturity date

3. it is the responsibility of the claimant to approach the company

4. If the claimant does not come within a month the entire maturity amount will be

480

Issuance of a license to a person has been stipulated in................Act

1. Section 43 of the Insurance Act 1939

2. Section 42 of the Insurance Act 1938

3. Section 12 of the Insurance Act 1922

4. Section 34 of the Insurance Act 1932

481

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

1. 1956

2. 1999

3. 1955

4. 1947

482 The insurance ombudsman has been appointed to protect the interest of.......

1. policyholders

2. shareholders

3. insurers

4. General insurers.

483

The charges were not fully disclosed to the customers" is a common complaint against.....

1. IRDA

2. Agents

3. Shareholders

4. Underwriters

Mr. Sharma is a newly recruited insurance advisor. To meet his month target he 484 explains only the good points of newly launched plan to his customer. Here Mr. Sharma's behavior is............

1. ethical

2. unethical

3. professional

4. Perfect.

485

The code of conduct has been prescribed in India by...........

1. IRDA

2. Insurance Council

3. Insurance Institute of India

4. Government of India.

486

Which one of the following is possible in retaining the risk?

1. Retaining the ownership in the policy

2. Not possible as life has many risks.

3.Is possible by transferring 4.Is possible by Rerisk to the policy holder insuring oneself

487 The timing of death is uncertain, so when one should take life insurance?

1. At the time of uncertainty

2. At an early age

3. Anytime in life

4. At the time when Advisor takes the decision

488 Insurance Protects which of the following?

1. The life of the person paying compensation

2. The risk retained person 's 3. The financial goal of the family insured

4. The life of the nominee

489

What does the mortality tables contains ?

1. Tables of death occurring in various circumstances

3. Tables of details of 4. Tables of details 2. Tables of details of underwriters calculation on of actuarial various probabilities of death death calculation on death

490

Mr. Guptha is recently detected with lung cancer. He would like to take an insurance. What is your suggestion?

1. Time of death is uncertain, so insurance can be given

2. Only lung is affected so health insurance can be given.

3. He can take insurance after submitting health certificate

4. Cannot give insurance for health reason

On 6th August there was a typhoon. Mr.Augustin who had insurance died in 491 typhoon. Now how will the insurance company will categories this particular risk ?

1. Under the category of Pure risk

2. Under the category of peril risk

3. Under the category of particular risk

4. Under the category of Risk Transfer

Mr.Akash filled the proposal form but before submitting to the company he 492 discussed with the agent that he is not sure whether he can pay for 15 years . This attitude affects which part of the contract?

1. Consideration in the contract

2. Capacity to contract

3. Consensus ad idem

4. Offer and Acceptance in the contract 4. D. An authorized agent to act on behalf of the legal company

493 Agent who is a licensed intermediary is actually is ?

1. A legal person to act on behalf of the 2. B.A legal person to act on re-insurer behalf of the insurer

3. C.A legal person to act on behalf of the contract

Mr.Karan who has to go to abroad for 6 months on an official work decides to 494 leave his car with his friend Mr. Jim. What will be the validity of the insurable interest in this case ?

1. The insurable interest between the car and jim is valid for 6 months

4. The insurable 2. The insurable interest 3. The insurable interest interest between the between the car and karan is between the car and karan car and Jim is valid valid for 6 months is valid until he owns it until Karans return

495

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 ?

1. He can take Surety insurance

2. He can take Business Partner insurance

3. He can take Key man Insurance

4. He Can take company insurance

Mr. Josh was filling the proposal form but as his mother was sitting beside him, 496 even though he drinks and smokes he ticked NO in smoking & drinking column of proposal form. This indicates ? Mr.Feroz has taken policy for critical illness worth Rs.1 lakh in health policy. He also has a term plan worth Rs.10 lakhs. Mr.Feroz was hospitalized after he was detected with cancer .Unfortunately he died after 3 days of treatment. How the claim will be settled?

1. He has breached the non-disclosure of the fact

2. He has breached the company by concealing the facts

3. He has breached the company by fraudulent information

4. He had done an innocent misrepresentation 4. Claim will be settled as per the instructions of underwriter 4. Policy will be surrendered by the heir

497

1. claim of critical illness and 10 lakh from term policy will be settled

2. claim of hospital charge Rs 20,000 and 1 lakh for death will be settled

3. Claim will not be settled as he died due to cancer

Mrs.Shwetha has taken a loan from her policy. Later stage she neither paid back 498 neither the loan nor she paid the premium for a very long time. What will happen to her policy?

1. Policy will be surrendered by the insurer

2. Policy will be surrendered by the nominee

3. Policy will be surrendered by the company

499

Which of the following information does not appear in the First Premium Receipt?

1. method and frequency of premium payment

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

500

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:

1. A . Physical hazard, as he is old

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

3. C. Moral hazard, as coverage is high and brothers son is the nominee

4. D. Moral hazard, as he is a head master and 52 years old 4. Insurance Investigation Agencies

Mr.Feroz has applied for an insurance cover of Rs.4 crores. The Company will 501 accept or reject the proposal only after confirming from one of the following agencies.

1. Financial Inspection agencies

2. Specialized inspection agencies

3. Credit worth inspection agencies

502

The responsibility for classification and analysis of the proposal form lies with whom?

1. Risk Analysis Department

2. Classification of Risk Department

3. Underwriter

4. Actuary who analysis the risk

503 In underwriting the economic value of the person is determined by what?

1. The occupation of the person

2. The financial history of his 3. The income that he earns 4. Human Life Value family

504

Mr. Kumar decides that his employees should have SSS scheme. What type of plan is SSS?

1. Salary saving Life plan

2. Not a specific plan

3. Salary insurance plan

4. Salary Specific plan

505

The concept of Risk diversification is applicable in which of the following instrument ?

1. Mutual Fund

2. Risk Diversified Insurance

3. Shares

4. Risk Sharing insurance

506

Ajay bought a share for Rs.110 and he sold when it was Rs.630.What had happened to his share?

1. Capital Appreciation

2. Capital Profit

3. Capital Benefit

4. Capital Variation

507

Which of the following cant be ducted under section 80 c from taxable income?

1. Pension Funds

2. Public Provident Fund

3. Employee Gratuity Fund

4. Infrastructure Bonds

508

Which official body decides to increase the interest rates?

1. Central bank of India

2. Reserve bank of India

3. Reserve bank of country

4. Central bank of country

509

Who act as an intermediary by offering a trading platform for buying and selling of shares? Chap-6

1. Bombay Share exchange

2. Bombay Stock exchange

3. Stock brokers

4. Share brokers

510

Which one of the following cannot be covered under Critical illness rider?

1. Blindness

2. Paraplegia

3. Coma

4. Brain Surgery

511

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

512 Which are the two primary needs of any customer in any point of life?

1. Investment and retirement

2. Investment and Protection

3. Investment and savings

4. Investment and life needs

Mr. Raj has taken a policy of 15 year term. He has paid the premium for 9 513 years. But now unfortunately he has lost his job. He is unable to pay the premium. What can be the best solution from the following ?

1. Converting the policy to Term policy

2. Converting the policy to Paid up

3. Converting the policy to money back

4. Converting the policy to whole Life

514

In which of the following an agent will collect the customers Personal data, professional data and financial data

1. Fact Finding Sheet

2. Advisor Confidential Sheet

3. Customer Data sheet

4. Personal and financial data sheet

Mr.Mohith, an agent was explaining to his customer the guaranteed benefits of 515 the product. Which one of the following documents he would have used to explain the same?

1. Fact Finding document

2. B.KYC document

3. C. Benefit illustration document

4. D. Client benefit document

Mr.Harsha an agent wants do a thorough Fact Finding for his client to Mr.Kishan 1. Clients Profits and Withdrawals from 516 who is a business man. Which of the following information will be helpful to know business about the earnings and Expense of Kishan?

2. Clients Expense statement

3. Clients business details

4. Clients business records

517

Which one of the section deals with the licensing of an agent?

1. Section 42 of the insurance act 1938

2. Section 42 of the insurance act 1936

3. License section of Insurance act 1938

4. License section of insurance agent act 1938

518

Which one of the following factor does not help in the Persistency ?

1. Regular reminders about the premium to the customer

2. Flexibility of Premium payment to the customer

3. Dispatching Discharge voucher to the customer

4. Continuous servicing of the policy

519

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

2. Surrendering the policy

3. Switching the policy

4. Claiming the policy

520

Which regulations take care of the settlement of claims ?

1. Protection of Policy holder Interests regulation 2002

2. IRDA claim protection regulation 2002

3. C.IRDA policy settlement regulation 2004

4. D. Protection of claim settlement regulation 2002

Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He also has 521 an ADB rider worth Rs. 4 lakhs. Unfortunately Baskar died in a car accident. How much will be the death claim settlement?

1. Total 7 lakhs will be paid as death had taken place

2. Total 4 lakhs will be paid as death had happened due to car accident

3. Total 11 lakhs will be paid

4. Total 7 lakhs will be paid without any deduction.

522

Which of the following team represents the members of GBIC ?

1. Representatives from all insurance companies

2. Representatives from all government bodies

3. Representatives from IRDA

4. Representatives from Insurance institute of India

Which council among the following focus on creating a positive image of the 523 insurance industry and would also like to enhance the Consumers confidence on the same ?

1. Life insurance council

2. Consumer insurance council

3. National Insurance council

4. General insurance council

Mr.Varun taken up his agency in July 5th 200 His lost his IRDA license while 524 travelling. His agency has also expired. What is the solution for Mr.Varun ?

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

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

3. Need to complete 25 4. Need to complete hours of practical training 50 hours of IRDA and paying Rs.100 for the training and paying issuance of duplicate Rs.50 for the license issuance of duplicate 4. Compliance officer

525

If any consumer is dissatisfied with the customer care cell of any insurance company to whom they can escalate their grievances.

1. Nodal officer

2. Grievance call center

3. Compliance cell

Which is the Regulation that insists that all the insurance companies should 526 provide the information about the insurance ombudsman of that region while sending the policy documents.

1. Policyholder grievance Regulation

2. Policyholders Protection regulation

3. Ombudsman Regulation

4. Compliance Regulatory

Mrs. Hansa an agent, has planned to sell maximum products within a short span 527 of time by giving maximum rebates to the customer to complete the contest target of the company.

1. It will benefit both the company and the customer

2. Reputation of the company will be high due to offers to 3. Agent will be terminated the customer

4. Agent will be qualified for the contest

Mr.Raghav is an expert in fact finding .Mr.Raghav helps his brother in his job by 528 sharing the information of his clients after the fact finding he does to procure insurance. What will be the outcome ?

1. Raghav will be promoted to the next level

2. Raghav will be terminated

3. Raghav License will be cancelled

4. Customer will complain to Ombudsman

529 The concept of need based selling involves

1. Selling what company wish to sell.

2. Selling what adviser wish to sell.

3. Selling what customer requirement is.

4. Selling what IDRA wants company to sell.

530

E-sales refers to sales of insurance products through

1. Insurance brokers.

2. Bancassurance.

3. Individual agents.

4. Internet.

531

Rahul is a licensed insurance agent. As agent he must carry out his role in accordance with

1. Companys code of conduct.

2. IRDA Acts code of conduct.

3. IRDA Regulations code of conduct.

4. Insurance Acts code of conduct.

532

Life insurance company determine the level of risk based on

1. Future expenses.

2. Claim experiences.

3. Present expenses.

4. Targeted bonus rates.

533

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. Financial.

4. Fundamental.

534

In Insurance terms, pooling of risk is

1. Using the same pool for paying claims of car & life insurance.

2. Using different pool for paying claims of life insurance.

3. Using the same pool for paying claims of life & house insurance.

4. Using the same pool for paying claims of life insurance. 4. An insurer has made another proposal.

535

A contract exists between insurer and proposer when

1. A proposal has been accepted by insurer.

2. A policy document has been stamped by insurer.

3. A policy document has been received by the policyholder.

Rakesh purchased a life insurance policy. While writing a proposal form he hide 536 that he practices mountaineering. Sadly he died in an accident while climbing Mount Everest. The insurers rejected the claim.What is the reason for rejection? Shamsher has a health insurance policy of ` 1, 00,000 individually and from his company for ` 2, 00,000. He falls sick and got hospitalized. His hospital bill ran 537 to ` 50,000. He claimed this amount from his individual policy. Also, he placed the request with his company for group policy claim, which was rejected. The reason for rejection is.

1. Innocent misrepresentation.

2. Fraudulent misrepresentation.

3. Concealment.

4. Non-Disclosure.

1. Indemnity contract.

2. Value contract.

3. Deemed contract.

4. Rolling contract.

538

Payment of premium and sum assured are laid down in

1. Heading of policy document.

2. Proviso of policy.

3. Operative clause.

4. Schedule of policy document.

539 An insurance contract commences when

1. Quotation is signed by proposer.

2. First Premium Receipt is issued.

3. Proposal Form is signed.

4. Policy Document is received by policyholder.

540

When is premium considered / deemed to be paid?

1. When insured writes a cheque in favor of insurer.

2. When cheque amount is deposited in insurer account.

3. When the cheque is deposited with insurer office.

4. When cheque is posted/couriered by the insure4.

Ram Lal is an insurance policyholder. He has recently shifted his home from 541 New Delhi to Noida. He wants the address to be changed. This change in policy document will be effective through?

1. Terms & Condition.

2. Preamble.

3. Endorsement.

4. Schedule.

542

Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 annual premiums but due to financial crisis is unable to make future premium. His policy

1. Acquires surrender value.

2. Contract comes to an end. 3. Moneys will be forfeited.

4. Acquires paid up value.

543

How assignment distinguishes itself from nomination?

1. Nomination does not transfer the title while assignment does.

2. Nomination transfers the title while assignment does not.

3. Nomination is made after 4. Nomination need policy is issued while not be informed but assignment is done before assignment needs to it is issued. be informe4. 4. A medical checkup is carried out nearby place of residence.

544

When an underwriter may consider Moral Hazard?

1. An individual is proposing SA 15 times his annual income.

2. Insurance is taken out by an individual with dependents.

3. A nominee is not a dependent.

545

Level Premium is calculated based on

1. Risk Premium.

2. Net Premium.

3. Loading of Premium.

4. Gross Premium.

546

MPL abbreviates

1. Minimum Possible Loss.

2. Major Possible Loss.

3. Minor Possible Loss.

4. Maximum Possible Loss.

547

What is generally considered as a substitute to charging a high premium for a high risk?

1. Clause.

2. Assignment.

3. Lien.

4. Level Premium.

548

Manmohan has recently purchased a house worth ` 50, 00,000 on loan. Which insurance product you as an adviser will suggest?

1. Endowment Plan.

2. Money Back Plan.

3. Whole Life Plan.

4. Term Plan.

549

To avail the income tax benefit at investment stage, premium should be maximum

1. 10% of S1.

2. 20% of SA.

3. 30% of SA.

4. 40% of SA.

550

The savings needs of a particular individual is majorly determined by

1. Amount of disposable income.

2. Current assets.

3. Current liabilities.

4. Duration of investment.

551

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

1. High Risk.

2. Low Risk.

3. Moderate Risk.

4. No Risk.

552

While calculating the expected returns from investments and savings, an individual should make provisions for

1. Taxation only.

2. Inflation only.

3. Taxation & inflation both.

4. No provision is require4.

553

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. Financial security need.

4. Asset building nee4.

554

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.

555

Rohit is working as sales manager with an FMCG company. His job requires him to travel across states. He is planning of covering his additional risk involved 1. To purchase an accidental rider with while travelling and a savings plan. What suggestion would you give him as an a savings insurance plan. agent?

2. To purchase a health plan along with a savings insurance plan.

3. To save through fixed deposits in bank.

4. To purchase a medical plan.

556

The general need for purchasing a health insurance plan at an early age results from which of the following factors?

1. The premium decreases with increasing age.

2. The premium remains constant with increasing age.

3. The premium may increase or decrease with the increasing age.

4. The premium increases with increasing age.

557

The life expectancy in India is constantly improving and is well above 60 years. This also brings along challenges. These challenges can be covered through

1. Equity.

2. Bank fixed deposits.

3. Health insurance plan.

4. Savings insurance plan.

558

Anand has purchased a pension plan which is nearing completion of accumulation phase. He is in need of finances 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.

3. 2/5th of accumulated amount.

4. 2/3rd of accumulated amount.

559

During the fact finding session as an agent you should follow which one of the following process?

1. Prioritize, Identify & Quantify Needs.

2. Identify, Quantify & Prioritize Needs.

3. Quantify, Identify & Prioritize Needs.

4. Prioritize, Quantify & Identify Needs.

560

As an adviser why is it essential for you to carry out the financial planning exercise with the prospective clients?

1. Individuals understand their real needs and can prioritize them.

2. Individuals have same financial needs at different stages of the life cycle.

3. Individuals do not 4. Individuals real understands their real and perceived needs needs and cannot prioritize are same. them.

After undertaking financial planning exercise, the prospective client said that he 561 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.

3. Communication skills.

4. Client information gathering skills.

562

The objective of Fact Finding is to

1. Gather Clients Information only.

2. Identify only the clients needs.

3. To provide solution of companys choice.

4. Both identify clients needs & gather information.

563 To explain the benefits of a product, the insurance adviser should

1. Provide the product brochure to the client.

3. Provide the terms and 2. Provide Benefit illustration conditions document to the documents to client. client.

4. Provide the website address to the client.

564 The agents duties and responsibilities ends

1. When the clients policy is issued.

2. When the clients needs have been established.

3. When the nominee has changed.

4. When the maturity/claim is settle4.

565

When client declines the recommendation by the insurance adviser even after resolving the concerns, the adviser should

1. Persuade the client to purchase the policy.

2. Should ask for reference who might be interested in financial planning.

3. Should never approach the client ever again.

4. Should do nothing.

566

Under what circumstances the surrender of a policy should be recommended by the agent?

1. When a client have been sold the right solution.

2. When a client is holding a product having good value for money.

3. When the policy has been mis-sold and do not match his needs.

4. When the client is enjoying good financial status.

567

What key benefit high persistency ratios have on insurance adviser?

1. High renewal income.

2. Less renewal income.

3. Fewer client bases.

4. Unsatisfied clients.

568

Insurer will not pay the claim unless

1. The policyholder makes a demand.

2. The nominee makes a demand.

3. The event insured against happens.

4. The insurer completes the enquiry.

Aman has taken a term plan for 20 years. In the 3rd year he suffered financial 569 crisis due to which he was unable to pay premium within grace period and died after 1 month. The nominee files a claim and is rejected because

1. The policy was not in force.

2. This condition is excluded in the policy.

3. The claim is fraudulent.

4. The claim is an early claim.

570

When a policy is lost, insurance company take utmost care while settling maturity claims because

1. The claim may not be genuine.

2. The policy may be pledged.

3. The facts were misrepresented.

4. There is no nomination.

571

What key event is most likely to make an insurance contract not a valid contract?

1. The circumstances are legitimate.

2. Representation of facts by 3. The life assured is major. the policyholders is true.

4. There is no insurable interest attached to the policy.

572

Under Married Womens Property Act, 1874 a policyholder is

1. The Life Assured.

2. The beneficiaries.

3. The trustee.

4. The administrator.

573 Who has the authority in insurance company to issue/cancel the agents license

1. Insurance Company.

2. Designated Person.

3. Branch Operations Team.

4. Actuary.

574

Which organization was formed with purpose to promote insurance education and training in India?

1. Institute of Actuaries of Indi1.

2. National Insurance Academy.

3. Chartered Insurance Institute.

4. Insurance Institute of India.

575

A client demands the information on the current status of a policy indicating accrued bonus. The insurer should provide communication within

1. 10 Days.

2. 15 days.

3. 20 Days.

4. 30 Days.

576

To ensure that the customers complaints are handled effectively, IRDA has established

1. Integrated Grievance Management System.

2. Internal Grievance Redressal Cell of the Insurer.

3. Grievance Redressal Officer.

4. Consumer Affairs Department.

577

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

1. Ruining the long term reputation of company.

2. Opportunity of new business for adviser.

3. Bad reputation of the individual adviser.

4. Financial burden on the couple.

Shankar, an adviser, sold a term insurance policy and unit-linked insurance 578 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 4. Ethical practice by policies. an adviser.

579 Insurance business is classified into three main types:

1. Life, Non life, Micro Insurance.

2. Life, Non Life, Miscellaneous

3. Life, Non life, Reinsurance.

4.Life, Health, Micro Insurance

580

Amit is looking for term insurance plan for protection of his family, he is advised to approach to:

1. Property Insurance

2. Life Insurance

3. Health Insurance

4. Liabilty Insurance

581

Insured can contact to seek the resolution of grievances they have against insurer to IRDA through:

1.Complaint@gov.ird1.in

2.insurancecomplaints@irda. gov.in

3.irdacomplaints@gov.in

4.Complaints@irda. gov.in

582

An Insurance company pools the premium collected from several Individual to insure them against similar risk is called:

1. Pure Risk

2. Pooling of Risk

3. Insuraable Risk

4. Sharing of Risk

583

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. Financial Risk.

4. Insurable Risk

584 which of the following refres to specific event which might cause a loss ...

1. Peril

2. Hazard

3. Physical hazards

4. Uncertinity

Manish took a loan from Pankaj of Rs.10 lac, Pankaj transferred his Insurance 585 policy to Manish of Rs.10 lac as a security with the agreement Of when Loan is fully paid, policy title will be revert back to name of Manish is called:

1. Loan assignment

2. Conditional Assignment

3. Loan Agreement

4. Absoulte Assignment

586

Rakesh has bought an Endowment, Money back, Term & Annuity Plan he would like to avail Loan from:

1. Endowment Plan

2. Term Plan

3. Money Back Plan

4. Annuity Plan

587

On foreclosure, if Death claim arises before the payment of the surrender value, the payment would be payable to:

1. Nominee

2. Legal heir of life Assured

3. Debotrs

4. forfeited the Premium

588

To prove ones identity in accordance with KYC process, the customer needs to submit following document excluding .?

1. An Age Proof

2. An Identity Proof

3. An Address Proof

4. Education Proof

589 Life Insurance also known as:

1. Value Contract.

2. Indemnity

3. Commercial Contract

4. Speculative

590

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. Proviso Clause

4. Schedule of Policy

591

Gaurav is working in MNC at the age of 32 bought an Endowment Plan. He had nominated his 1 year old daughter Saanvi, but not able to get the Signature of her appointee due to unavailability of his spouse .after 5 year. He died in road accident, now claim money would be payable to:

1. Nominee only

2. Legal heir of the life assured

3. Appointee Only

4. will be Payable to Saanvi (Nominee) at the age of 18th

592

Parvesh bought a policy an endowment plan but after one year insurer. Found he had Aorta Surgery .now which will apply by insurer:

1. Indisputability Clause (Section 45) apply

2.Principal of Indemnity apply

3.Lien Clause

4.Utmost good faith apply

593

Jyoti is submitting is copy of permanents account number card as age proof for buying an money back plan .her age consider as a

1. Non Standard Age Proof

2. Standard Age proof

3. an Address proof

4. Proof of Income tax payer

594

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

1. Simple Revisionary bonus

2. Compound Revisionary bonus

3. Persistency Bonus

4. Interim bonus

595

Ramesh bought an endowment plan for tern year he pays the same Amount in every year is called:

1. Gross Premium

2. Level Premium

3. Risk Premium

4. Net Premium

596 Which one of the following is not source of information about the

1. Proposal Form

2. Insurance agent

3. neighbor of proposer

4. Medical of examination report

597

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

1. Physical Hazard

2. Moral Hazard

3. Medical

4. No underwriting

598

In Group insurance plans contract of insurance between ?

1. Master Policy holder & insurer

2. Employer & Employee

3. Employee & Insurer

4. Creditors & Debtors

599 Which option is not correct with regard to joint life insurance plan?

1. Plan offer insurance coverage for two person in one policy

2. This plan is ideal for brother & sister.

3. Each life will be underwritten separately.

4. A joint life policy may cover a partner in business under one policy.

600 Time deposit account is issued by:

1. Post office

2.Bank

3.Mutual Fund

4. Life Insurance co.

601

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

602

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. Traditional Deposit

4. Fixed Deposit

603 Vinod being an insurance agent can offer assistance to his client Ramesh by:

1. Providing him emergency fund.

2. Matching the product with 3. Recommendation of Rameshs financial need. product with highest return.

4. Discourse saving in a purposeful and need based manner.

604

Which of the following is not featured and benefit of rider?

1. Providing additional cover

2. Maturity benefit

3. Nominal cost & flexibility

4. Customization and tax benefit.

Gaurav bought an endowment plan for 20 year of 10 lac SA with ADB Rider, 605 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

606 What do you mean by Double Income Family?

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

2. When both the life partners are earning members of the family.

3. When the income of a family is just the double of income of another family.

4. When the members of a family do not work at all.

607 In which of the following case there is no defined retirement age?

1. Public sector employees

2. Private sector employees

3. Professionals & Businessmen

4. All of the above

608 Which one of the following is true?

1. Every individuals income and expenditure pattern is same.

2. Every individuals income and expenditure pattern is different.

3. An individuals income and expenditure has no relation.

4. An individual should not keep in mind his income while planning his expenditure. 4.Surrendering the existing policies for selling new one

609 Objectives of fact-finding do not include-

1. Identify needs

2. Gathering client data

3. Provide for anticipated changes

610

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. Financial details

611

Under which one of the following acts the maximum remuneration that can be given to insurance agents described?

1. Income Tax Act

2. Indian Contract Act

3. Insurance Act 1938

4. IRDA Act 1999

612 Which one of the following is not a benefit of persistency?

1. Helps the client in achieving goals

2. Reduction in costs

3. Increased client satisfaction

4. Decreased revenues

613

Satish as an insurance advisor while recommending to his client Ramesh is not suitable policies

1. Satish should check the Ramesh s commitment to the needs

4. Should advised 2. Satish should outline the 3. Satish should check the him to surrender all reasons for recommendation acceptance or rejection of the polices which are for a particular policy the recommendation. not buy from satish. 2. Reviewing financial needs and plans are necessary with changes 3. Agent has the option to recommending highest commission at any time. 4. Introduction of a new insurance product or a change in a clients Circumstance

614 Why a building long term relationship with clients is necessary?

1. A satisfied client may be the source of other potential clients

Pranab is not able to pay premium for continue his policy due to some Financial 615 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

3. Deduct the underpaid 4. Policy was subject premium from Sum assured to lien. and payable on Maturity 3. Sum assured plus vested bonus minus any outstanding loan/premium & Interest.

Ajay has bought an endowment with profit plan for 20 year .if he took a Loan 616 after 5th of commencement of policy and died before 2 year of Maturity .what would be payable on maturity?

1. only Sum assured

2.Sum Assured + Bonus

4. Paid up value only.

617

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.

618

Which one of the following report is not considered in case of Pankaj Bought a plan in 2009 & died in road accident in 2011 :

1. Policy first information report.

2. Advisor confidential report

3. Post Mortem Report.

4.Coroners Report

619

Married Womans Property Act 1874 provides that a life insurance Policy that has been taken out by:

1. Married Woman

2. Married Man

3. Married Son

4. Married Daughter

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

1. Life Insurance Council

2. Life Insurance Corporation

3. Insurance Regulatory Development Authority

4.Insurance Institute of India

621

How Many offices of Ombudsmen the Government body has set up to Resolving insured customers grievances.

1.15

2.12

3.14

4.16

622

For Insurance industry which association to take steps to Develop Education and research in insurance?

1. Life Insurance Council

2. Life Insurance Corporation

3. Insurance institute of India

4. Insurance Institute of India

623

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.

624

Which is the body who provides grant to Insurance Regulatory Develompent Authoruty to carry out activites.

RBI

LIC

Central Government

SEBI

625

While applying for a policy unintentionally Mr.X forgot to disclose that he consumes alcohol,In cotext with Utmost good faith This will be treated as

Non Disclosure

Misrepresentaion

Breach of Trust

Concealment

626

An underwriter accepts the proposal with certain modified terms and coditions,What it denotes

Lien

Counter offer

Decline

Postpontment

627 Ram has set a provision for contigency which can survive for 6 month .This amount is considered as

Adequate

Inadequate

too low

too high

628 XYZ client wants to buy a car in future , however his financial planning shows that he cannot afford car as of now .As a financial planner you should Explain him difference between real need & perceived

Explain him difference between financial & non financial need

Explain him difference between important & unimportant need

Explain him difference between short term & long term need

629 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

NA

630 After fact finding , Ram has presented the product to the client in te second meeting . If client approves the recommendation what should be the next xtep Ask the client to sign the contract of relationship

Check the client's commitment to the need & continue with process

Should take some more time to conclude the sale

Should close the discussion then & there

631 Sanjeev in a lumsum investment is getting benefit of multiple securities Bonds Fixed Deposit Mutual Fund KVP

632 The risk of unemployment is covered with what benefit in the policy Rider Continouation Subsidiary discount

633 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

634 Prospectus of an endowment plan should differentiate in types of benefits Exception & exclusion Maturity & death benefit Gauranteed & Nongauranteed benefits None of theabove

635

In case of term plan the premium for CI rider shall not exceed 25% 50% 75% 100%

636 Loading in a term plan is more likely beacause of Morbidity Mortality Admin expenses Investment expenses

637 The needs of a client were identified,and according to that ,maximum life cover was the first priority,what plan to suggest? Wholelife Endowment Term plan MutualFund

638 License criteria,crimnal offence in the past.given IRDA license.Why? he was less than 21 at that time offence had a punishment of atleast 5 yrs hav passed less that 2000 since the sentence exception 3

639 In Surgical benfit rider what would be the payout procedure

3 Per day Hospital Cash Benefit Respective to the surgery made Benefit Will get lumsum benefit respective to surgery have been made Per day Hospital Cash irrespective to the surgery made Irrespective to the sugery

640 A Critical Illness claim is settled in a policy. The benefits of the policy can be used for Only for Illness For Repairing house Only For Doctors fees Not specified

641 If the client prefers bank fixed deposit rather than cumulative deposit ,due to what implication ? Investment Frequency Interest Rate Look in period Taxation

642 In case of lien,the risk will classified as per underwriting standards better than average risk,at the early stage of life better than the average risk ,at the later stage of the life Higher than the average risk,at the early stage

Higher than the average risk at the later stage of life Coming to mutual agreement with objective for Solutions

643 which of the following is the final stage of fact finding with the client? Discuss with proposer about future life prospects and changes Completion of Proposal form Recommending Solutions

644 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!

3 ACR Sarath nominee Superior of the Sarth's insurance agent Insurance company

645 As per agents code of conduct,Agent Recommends protection Plan,but the client insist on investment plan for the financial planning,what an agent should do! Recommend both the plans

Propose an investment plan and discuss with him regard to discomfort of term plan

Refuse to act with client

Report to the senior and seek his Guidance

646 Which is suitable life stage to buy Unit linked insurance plan? Young Married with no children and Single income family

Young Married with no children and Double income family

Young Married with Young Married with children children and Double and Single income family income family

647 Insurers observe high persistency ratio,then policy reserve increases Reserve decreases Remains constant Surplus decreases

648 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 conditional assignment.pending requirment in relation with B A loan and interest is outstanding

A loan amount and oustanding premium is pending

3 A outstanding premium is pending A sign on discharge form

649 If a person have motoring sport as hobby before taking insurance policy,then what it implicates Moral hazard is Sport and it influence the risk of life motoring sport is risk and influences moral hazard

motoring sport is a motoring sport is risk and physical hazard influences physical hazard and it influences risk

650 Agent has to comply the code of conduct prescibed by Insurance institue of India IRDA National Insurance Academy Insurance Compliance Dept

651 If a health rider is taken in a policy, maximum rider premium can be %age of base premium 25% 50% 75% 100%

652 Change of nomination is not allowed in which situation Nominee is minor Assignment is done to 3rd party Policy assigned to insurer

653 In case of assignment, what key factor indicates the requirement of stamp duty Age of the insured Type of policy Assignment made in a separate deed

654 In case of nomination, how does the appointee gets its appointment validated Registered with the court Puts in the newspaper By signing the proposal form

655 Maturity benefit is equal to Sum assured plus reversionary bonus minus ? Persistency bonus Outstanding premium + interest Outstandin premiums

656 If a policy of term 30yrs is imposed with lien, what will be the lien period 5 10 15 20

657 Reduced target of agent will have what impact on churning more likely less likely less transparent more transparetn

658 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 Premium increase

659 After clearly identifying 2 needs from fact finding, client agrees to go for one and gives the reason, what should the agent do now Do a fact finding again Refuse to proceed Proceed with agreed need and document the rejection Get second opinion

660 In a non life policy, the person who is authorised to process the mediclaim is known as Underwriter Third party administrator Actuary

661 Maturity benefit is equal to Sum assured plus reversionary bonus minus ? Claim within 1st anniversary Claim within 1st calendar year Claim befor the valuation date Claim after the valuation date

662 Under daily hospitalisation cash benefit scheme the amount payable is increased due to what reason Change in hospital Special consultant charges Admission to ICU

663 X and Y are married, they are planning for estate planning, which life stage do they belong to Young married with single income no kids Retirement Childhood Pre retirement

664 Premium amount and term is mentioned in Nikhil was in the process of closing a unit linked plan sale and the customer put a query which Nikhil does not know. What should Nikhil do? Preamble Endorsement Direct him to the product booklet Terms and conditions Ask his Supervisor and clarify Operative clause Ask the client to put the query in writing

665

Decline to act for the client

666

A gave an offer to B and B made changes to the same and returned it to A. It will be called

modified acceptance

Counter offer

Rectified offer

Rectified Acceptance

667

If there is no agreement or settlement and the recommendation is also not acceptable to the complainant, in this case the Ombudsman will grant an award

If it is acceptable to the complainant

if it is acceptable to the insurer

if the complainant decides if the insurer decides to proceed legally to proceed legally

668 Insurance addresses the needs of people with risk of living too long by..

Extensive documentation

Restricting the max age at entry

Extensive underwriting at inception

Retirement and pension plans

669

While on sales of an Insurance plan Mr. Had to show his license

Due to the category of customer

the customer demanded

Due to the profile of the customer

NA

Learning Objective

Explanation for correct answer

Remark

Actuaries

Works on statistical data to arrive on mortality , premium table etc

Pg :27

Constituents of Insurance Market

NGO spread Awareness as well as In rural on deeper Penetration through Micro Insurance

Pg :27

History of Insurance

On recommendation of Mahlotra Committee , Under Joint venture , the foreign player can not have more than 26% stake

Pg :24

Insurance Industry

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

Pg 24

Insurance Organizations and Roles

Reinsurance company is the Insurer for the Insurance Company

Pg :26

Micro Insurance

Micro Insurance guidelines was issued in 2005 by IRDA . Minimum SA is Rs 5000 & Max is Rs 50,000

Pg :25

Types of Insurance Organization

Reinsurance company is the Insurer for the Insurance Company

Pg :26

Types of Insurance Organization

A re insurance company is the Insurer for Insurance company

Pg :26

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

Agents Upfront disclosure Methods

As per IRDA regulations , agents are supposed to disclose their COMMISSION when asked by the customer . However Rebates are prohibited

Pg:102

Churning & Product switching

Repeatedly encouraging clients to switch policies / Investments from one another is called churning

Pg :204

Duties & Responsibilities of agents

Agent is an intermediary between Insurer and the Client

Pg :200

Persist ency

Repeatedly encouraging customers to switch policies or investment from one to another is called Churning

Pg 204 : D4

Persist ency

Higher Persistency helps Insurer to get Higher revenue thereby increasing profitability

Pg :206

Persist ency

Higher Persistency helps Insurer to get Higher revenue thereby increasing profitability

Pg :206

Claims

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

Pg :219

Claims

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

Pg :221

Claims

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 financial years saving account rate of interest

Pg :219

Claims

IRDA Guidelines on claim settlement instruct the insurer to complete any additional documents /information collection not in a piece meal basis within 15 days from the time of receiving the claim intimation

Pg :219

Valid Claims

Suicide clause exclude claim settlements if it happens within One year of the policy commencement

Pg :217

Code of conduct

Sec 41 (1) of insurance act 1938 prohibits all agents to give rebates

Pg :231

Grievance cells

District Court upto 20 L

Pg :238

Insurance act 1938

Sec40(1) of Insurance act 1938 prohibits agents from giving rebates

Pg 231

IRDA 1999

IRDA 1999 , was passed in parliament establishing it as a corporate Body

Pg :233

IRDA Regulations on Advertisement and Disclosures

IRDA regulations on advertisements include all printed and published materials from Insurer as well as Agents

Pg 237

KYC

Pg :235

MWPA

Beneficiaries under MWPA can be Wife , Children , Wife & Children , Adopted Child

Pg :236

Actuaries

IAI (Institute of actuaries in India ). Actuary is an expert who applies statistical & mathematical methods to asses risk and calculate premium tables

Pg :249

Agent Licensing

For License , a person should be Major , Of sound mind , graduate , no criminal records ,attended training , passed III exam

Pg :251

Insurance Regulation Bodies

Life Insurance council was constituted under Sec 64 of Insurance ACT 1938. Its the face of Life Insurance Industry

Pg :248

Key regulatory Body

NAI , 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

Power of Central Govt over IRDA

Power of Govt to supersede IRDA is unable to discharge its Function or duties

Pg :246

Governing Body of Insurance Council

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

Pg :271

Governing Body of Insurance Council

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

Pg :268

Grievance Redress Cell of IRDA

Toll Free Number :155255 & Email

Pg:268

Ombudsman

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 :265

Ombudsman

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

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

Ethics & Code of Conduct

The role & responsibility of the agent is important to have a good relation with the customers

Pg :279

Peril & Hazard

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

Pg:41

Types of Risk

The types of risk that could be insured against are , financial risk , pure Risk & Particular risk

Pg :42

Insurable Interest

Creditor has Insurable Interest on the Life of Debtor to the extend of the MONEY lent to the debtor

Pg :56

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

Assignment

Sec 38 of Insurance Act 1938 Defines Assignment and its types

Pg:79

Insurance Documents

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

Pg :69

Insurance Documents

FPR is an Important document which is also an evidence that Risk has begun

Pg :70

Insurance Documents

The operative clause lays down the Mutual obligation of the parties .

Pg :71

Key Documents

The proposal form and the proposer's Signature is the basis of the contract .

Pg :68

Key Documents

Age proof are standard and non standard

Pg :69

Key Insurance Documents

The proposal form and the signature of the proposer will form the basis of Insurance contract .

Pg 68

Key Insurance Documents

Policy Information statement includes :facility available for frequency and method of premium payment ,contact for service and inquiry related to policy ,Ombudsman location and contact

Pg :72

Key terminologies

The person seeking insurance is a Proposer . Proposer & Life assured could be the same or different

Pg 66

Lapse

A grace period normaly is of One month , not more than 30 days for YEARLY , HALF , Qtrly mode of premium payment .

Pg :74

Loans & Foreclosure

loan is given as a certain %age of Surrender value

Pg :79

Nomination

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

Pg :74

Nomination

Any number of nominations can be attested on the policy . However No % age of share can be mentioned per nominee

Pg :78

Nomination & Assignments

No specific Shares in Multiple Nominations however can be done for successive nominations

Pg:78

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 Personal Financial problems or policy being mis sold and benefits not up to the clients needs

Pg :76

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

Premium Calculations

Adjustment to take into account of Expenses & profits of the insurer is called loading

Pg :100

Primary Underwriter

Agent Confidentiality Report is mandatory as It helps the Underwriters to have additional Information about the Proposer as the agent is in better position having met / known the client

Pg :102

Types of Bonus

Persist ency or terminal bonus is given at maturity of the policy

Pg :101

Types of Hazards

Moral Hazard relates to attitude or Intentions & conduct

Pg :91

Underwiting

Physical Hazard refers to the physical characteristic of the risk associated with the proposer

Pg :91

Underwiting

Agents are in direct contact with the Customer and have an important role to play in assessing the risk

Pg :102

Underwiting

Lien is a clause where the underwriter feels the risk will wear out in time

Pg :95

Underwriting

LIENS are clauses which Underwriters apply to the proposal where they feel the RISK will wear off after certain time duration l

Pg :95

Underwriting

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

Pg :90

Underwriting

Under Physical hazard , the Underwriter looks into medical history of the family of the proposer to asses the risk due to heredity

Pg :91

Insurance products

Term product is the simplest and the cheapest Insurance plan which gives Life cover

Pg :112

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

Micro Insurance is for Low Income Group . Product ranges from 5K to 50 K

Pg:113

Protection Needs

Term Insurance will help in protecting the future loss of Income

Pg :109

Discuss

Tax & Inflation

The Proceeds of Life Insurance are exempted under Sec 10 (10D)

Pg :118

Tax & Inflation

Under Sec 80 C , the max Amount under Tax deduction through Life Insurance premium will be Rs 1 Lk

Pg 118

Tax Implications

Under Sec 80 C , the maximum deductible Income from tax in a given year is Rs 1 Lk .

Pg :118

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

Types of Plans

Partial Survival Benefits are paid at fixed intervals without any formalities to be completed by the Policyholders

Pg :117

Ulip

Ulip offers protection with Investment and flexibilities to manage the Investment to the customers

Pg :116

Benefits of Professional Advise

A agent is a Professional 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

Implication of Interest on saving products

Increase in Interest rates will bring the stock price down

Pg :137

Income Tax 1961

To avail Sec 80 C of IT 1961 , the FD duration has to be 5 or 10 Years

Pg 136

Prioritizing Saving Needs

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

Pg :139

Saving Products

Investment is made in Lump Sum and the Interest rate is Fixed at the time of Inception

Pg 135

Saving Products

1 unit in ETF represents One Gram or Half Gram of Gold

Pg :135

Saving Products

Three types of deposits :cumulative , recurring & traditional . Rate of interest varies .

Pg :133

Saving Products

NSC . Kisan Vikas Patra , PPF etc can be brought from Post office

Pg 135

Saving Products

In cumulative Deposits , Interest is calculated quarterly

Pg :113

Tax & Inflation

Life Insurance gives 80C Tax Benefit on Premium and 10 10 D on Claims

Pg 136

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

Annuities

Open market option allows the Annuitant to get the best scenario by taking his/ her annuity from other companies

Pg :155

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

Annuities

One third of the Corpus can be withdrawn on vesting date Tax Free

Pg :156

Annuities

Commutation allows the Annuitant to withdraw 1/3rd of the corpus amount Tax Free at vesting date

Pg :156

Health plans

Most Insurer have waiting Period in the health Plans for covering any pre existing illnesses

Pg:151

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

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

Health products

Fixed amount is paid on hospitalization on a daily basis

Pg :150

Pension Plans

Under Sec 10 10 A , Commutation , you can withdraw 1/3rd of the Corpus Tax Free

Pg :156

Riders

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 terminates

Pg :154

Riders

Benefits arising of the Riders cannot exceed the Base Plan SA

Pg :155

Riders

According to IRDA regulations Premium of all riders taken together should not exceed 30% of the base policy premium

Pg :155

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

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

factors affecting Life stages

Public sector makes provision for PPF , health

Pg:172

Life stages

Protection of Asset is the most factor

Pg :170

Life stages

The Income earning capacity keeps going up there by allowing the disposable income to increase as the time goes.

Pg :164

Life stages

Single Income family , Insurance protection is very important

Pg :168

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

Life stages

Along with Life cover , child education planning is important stage

Pg :168

Life stages of Clients

Children normally do not have their own Income source

Pg :167

Fact finding

The Electronic benefit Illustration gives all information of Returns , Charges

Pg:194

Fact Finding

fact finding process helps in identifying the clients financial needs, to quantify them & to prioritize them ,

Pg :184

Fact finding

Fact finding as a process is to identify the clients needs , quantify them and prioritize them

Pg :184

Financial Planning objective

The grading is in 0 -5 rating , O denotes No risk taking ability and 5 denotes High risk taking ability of the client

Pg 190

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