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All the questions in the quiz along with their answers are shown below.

Your answers are bolded. The correct answers have a green background while the incorrect ones have a red background. 1 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 A Works on statistical data to arrive on mortality , premium table etc 2 The Non Government organizations(NGO) helps the insurance industry immensely in Promotional activities Drafting new regulations Linking buyers and sellers Linking third party administrators C Question was not answered NGO spread Awareness as well as In rural on deeper Penetration through Micro Insurance 3 Investment by foreign direct investors in to Insurance co's is restricted to 12% 25% 40% 26% D Question was not answered On recommendation of Mahlotra Committee , Under Joint venture , the foreign player can not have more than 26% stake 4 Which market does the Micro Insurance Concentrate on ? People with large families People with Low Income Government Employees people living in Metro cities B Question was not answered 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 5 What facility do the insurer use to cover Risk beyond their Limits ? Re Insurance Banca assurance NGO RBI A Question was not answered Reinsurance company is the Insurer for the Insurance Company 6 What is the max level under which micro insurance can be done 5000 25000 50000 1 lac C

Question was not answered Micro Insurance guidelines was issued in 2005 by IRDA . Minimum SA is Rs 5000 & Max is Rs 50,000 7 Who is the customer of a Re insurer High Networth Individual Insurance Companies Licenced Insurance Agents Non Government Organisation B Question was not answered Reinsurance company is the Insurer for the Insurance Company 8 Insurance company transfers the insurance which cannot bear by them to Bancassurance Reinsurance TPAs Actuaries B Question was not answered A re insurance company is the Insurer for Insurance company 9 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 C Question was not answered Agent can receive maximum up to 35% Commission in first year . Maximum commission in ten years horizon cannot be more than 40.%. 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 B Question was not answered different products have different commission . Maximum Commission payable in First Year cannot exceed 35% 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 A Question was not answered 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 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 illustration From ticked column of proposal form C Question was not answered

As per IRDA regulations , agents are supposed to disclose their COMMISSION when asked by the customer . However Rebates are prohibited 13 Churning is bad , based on which aspect Agents earn Lower Commission on churning Policyholder gets more benefits Policyholders suffer due to surrender charges and benefits Insurance companies get good branding C Question was not answered Repeatedly encouraging clients to switch policies / Investments from one another is called churning 14 What over riding criteria an insurance agent consider while proposing a solution risk suitability Flexibility Cost B Question was not answered Agent is an intermediary between Insurer and the Client 15 Sales Target is reduced . Churning will Increase Decrease Will not affect Partially B Question was not answered Repeatedly encouraging customers to switch policies or investment from one to another is called Churning 16 Higher persistency to the insurer ensures what ? More productivity Higher attrition Higher Profits Higher S.A C Question was not answered Higher Persistency helps Insurer to get Higher revenue thereby increasing profitability 17 Persitency =has increased from 82 % in previous year to 86 % this year . That means more lapsation more attrition less lapsation No profits C Question was not answered Higher Persistency helps Insurer to get Higher revenue thereby increasing profitability 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 C Question was not answered

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 19 A missing person is considered to be dead after 5years 8years 12 years 7years D Question was not answered 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 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% 6% 9% 7% 8% C Question was not answered 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 21 A claim was submitted & in how many days company should ask for additional documents if required 15 days 10days 20 days 30 days A Question was not answered 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 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 A Question was not answered Suicide clause exclude claim settlements if it happens within One year of the policy commencement 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% C Question was not answered

Sec 41 (1) of insurance act 1938 prohibits all agents to give rebates 24 Consumer Forum at district level will hear complaints up to 20L 40L 1Cr 10L A Question was not answered District Court upto 20 L 25 How much is the rebate allowed by IRDA to client Nil 5% 10% 35% A Question was not answered Sec40(1) of Insurance act 1938 prohibits agents from giving rebates 26 The controller of insurance in india is IRDA RBI SEBI Insurance ombudsmen A Question was not answered IRDA 1999 , was passed in parliament establishing it as a corporate Body 27 A insurer advertises through daily news paper . What type of marketing is cross selling direct selling Solicitation of Policy Brand building C Question was not answered IRDA regulations on advertisements include all printed and published materials from Insurer as well as Agents 28 Investment by NRI(Non Resident Indian) will be No risk Low risk Medium risk High risk D Question was not answered 29 MWP- If the policy is endorsed under MWP - then the beneficiaries are wife and ? parents ex wife children

mother C Question was not answered

Beneficiaries under MWPA can be Wife , Children , Wife & Children , Adopted Child 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 A Question was not answered IAI (Institute of actuaries in India ). Actuary is an expert who applies statistical & mathematical methods to asses risk and calculate premium tables 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 A Question was not answered For License , a person should be Major , Of sound mind , graduate , no criminal records ,attended training , passed III exam 32 Which Institution was Constituted by Insurance Act 1938 Insurance Institute of India Life Insurance Council Insurance Broker Association General Insurance Council B Question was not answered Life Insurance council was constituted under Sec 64 of Insurance ACT 1938. Its the face of Life Insurance Industry 33 What is the role of National Insurance Academy? To regulate To advise Government To undertake training activities To Advertise globally on Indian Insurance C Question was not answered 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 34 According to IRDA act 1999, central governments involve in insurance industry over Policy matters complex technical issues Promotional activities Licensing of Insurance companies C Question was not answered Power of Govt to supersede IRDA is unable to discharge its Function or duties 35 Complaint council bodies other than IRDA grievance readdress forum & COPA

Ombudsman Insurance Institute of India Insurance Association FERA A Question was not answered

Integrated Grievance management system (IGMS) also makes the complaints to be regsitered through E mail complaints@irda.gov.in or Toll free number 155255 36 What are the ways by which a policy holder can make complaints email Toll free No. Newpaper Email or Toll free Number D Question was not answered Integrated Grievance management system (IGMS) also makes the complaints to be regsitered through E mail complaints@irda.gov.in or Toll free number 155255 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 A Question was not answered Toll Free Number :155255 & Email 38 A policy holder submits cancellation of his term insurance policy , the insurer accepts the form and fails to give the benefit and the policy holder writes to IRDA post which the settlement should be within 10 days 15 days 20 days 30 days A Question was not answered Complaints related to cancellation of Policy & premium paid in excess for additional cover , Response TAT has to be within 10 Days from the date of complaint 39 What is the maximum level of complaint that can be considered and taken action by ombudsmen 20 lac 25 lac 30 lac 50 lac A Question was not answered 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 40 What is the period of award passed to the customer decided by ombudsman? 2months 3 months 5 months

6 months B Question was not answered

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 41 An Award is passed by Ombudsman .In how many days it should be honored by Insurance Co 15 days 30 days 60 days 90 days D Question was not answered The award is binding on the insurer if acceptable by the Claimant , Ombudsman will have to give the award within 3 months from the receipt of the complain 42 Karthik written to his insurer about non settlement of a maturity calim,as per regulations,the insurer has to reply to this within how many working days 3 5 7 10 D Question was not answered Under Protection of policyholders Regulation of IRDA , the insurer has to respond back within 10 days for any written communication by thepolicyholder 43 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 A Question was not answered Under IRDA regulations , an agent should carry is license all the time and on demand , should show it to the customers 44 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 reasons for rejection to the customer He takes up with the higher authorities C Question was not answered The role & responsibility of the agent is important to have a good relation with the customers 45 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 A Question was not answered

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 46 The type of risk that can be insured against is Speculative Risk Pure Risk Pure & Speculative risk Non Financial Risk B Question was not answered The types of risk that could be insured against are , financial risk , pure Risk & Particular risk 47 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 Ramesh owes money form Harish Harish suffers financial loss incase of death of Ramesh D Question was not answered Creditor has Insurable Interest on the Life of Debtor to the extend of the MONEY lent to the debtor 48 What is the min age to enter into the contract of insurance 16 18 20 21 B Question was not answered Person entering contract should be competent enough . A person is competent when he is a Major ( above 18 years ) , sound mind ,not disqualified 49 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 A Question was not answered 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 50 Types of assignment Absolute Term assignment Conditional Absolute & Conditional D Question was not answered

1. 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 C 2. 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 base policy 40% of the premium on the base policy C 3. 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. A 4. 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 pay an additional amount on a daily basis if the insured is admitted to the Intensive Care Unit (ICU). The insurance company will pay for doctor consultation fees incurred prior to hospitalization B 5. A lump sum withdrawal allowed as commutation in pension plans is 1/3rd of the accumulation fund 1/4th of the accumulation fund 1/2nd of the accumulation fund Full withdrawal is allowed A 6. Customer has opted for a 5 yrs guaranteed annuity option. What will happen to annuity, if the customer survives for 5 years after the end of guarantee period? paid up to 75 Yrs annuity will be continued for next 5 Years till he die not remembered C

7. In term insurance if Critical illness rider claim happens then what will happen to existing policy CI benefit will cease CI benefit reduced from existing sum assured CI benefit continues No change in policy. A 8. What is the main objective of taking the life insurance policy? Tax benefit Savings Investment Protection D 9. If person consumes alcohol- what is the type of hazard? Moral Physical Occupational Professional B 10. Group Insurance can be taken in following relationship employee- employer husband-wife family members society members A 11. Where one can approach in case of dispute? IRDA Consumer Forum B 12. Life insurance is the most important for which age group Young Pre- retirement Retirement children

A 13. Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply? 2. 5% 3. 0% 5. 0% 7. 5% C 14. 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? 1 lacs 3 lacs 2 lacs 1. 50 lacs B 15. 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 A 16. Family floater health Insurance plan covers All members of a Family Husband and Wife only Parents only Children Only A 17. 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 D

18. 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 basis is paid irrespective of the actual cost of treatment Only Hospital bill will be paid C 19. Who is a regulator, supervisor and monetary authority of the financial system in India? IRDA SEBI RBI SBI C 20. Indisputability clause can be enforced by the insurance company during the First five years of policy First Two years of policy Claim Inception of the policy B 21. To ensure that the premiums are paid out of a legitimate source of funds cash is accepted Up to 50000 Up to 99990 Up to 100000 Without any limit A 22. If there is no claim in a year than what will be the benefit to the customer as NO CLAIM BONUS Discount in next year premium Increase in Sum Assured next year Loans facility No benefit A 23. An individual is said to be competent to enter into a contract if they are 18 year old

21 year old 23 year old 25 year old A 24. Maximum time for investigation in disputed claim? 1 month 2 months 3 months 6 months D 25. The Ombudsmans powers are restricted to insurance contracts of value not exceeding? 50 lakhs 30 lakhs 25 lakhs 20 lakhs D 26. In which section of Policy document, Information about the location of the insurance Ombudsman had written? Operative clause Attestation Information statement Endorsements C 27. In Cumulative bank deposit the interest that in normally compounded on what basis. Monthly Quarterly Half Yearly Annually B 28. 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

C 29. If the annual premium for a plan is 32000 and a frequency loading of 4% is added in a quarterly premium what is the amount that needs to be paid. 8000 8320 9456 9240 B 30. 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 D 31. Ombudsman passes an award within which time 1 month 2 months 3 months 6 months C 32. 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 B 33. 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 B 34. 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 C 35. Mr. Denny is married and has 2 children and his parents are alive. He has taken a family floater plan. Under the plan who all will be covered. Denny Denny and his wife Denny, his wife and children Denny, his wife, his children and his parents D 36. 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 A 37. If bonus is given under a plan the additional premium added is known as Loading Investment Frequency A 38. Nomination can be in favor of how many people? One person Two persons Three persons It can be any number D 39. 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 A 40. 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. D 41. Within how many days will the underwriter needs to inform the policyholder regarding the status of the policy. 10 days 15 days 30 days 45 days B 42. Certificate from the village panchayat Will be considered as standard age proof Will be considered as non standard age proof Will not be accepted B 43. What is the maximum sum assured under a micro insurance 10000 25000 50000 100000 C 44. 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 A 45. If Naresh wishes to take the tax benefit of the full premium paid which is 60000, what amount of sum assured should he avail in a ULIP plan. 2 lacs 3 lacs 5 lacs 6 lacs

B 46. 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. A 47. The insurance act of 1938 created which of these. IRDA Tariff Advisory Committee National Insurance Academy LIC B 48. Ashu is an illiterate person and his proposal form was filled by Nishu, then what is the additional requirement to be taken along with the documents. The policy needs to be advertised in the newspaper. Nishu has to sign an indemnity bond. Thumb impression of Ashu has to be taken. Ashu needs to be medically examined. C 49. Harshs policy matured, however he was paid only 25% of the sum insured in spite of all his premiums been paid on time. This indicates that his policy is a Term plan. Endowment plan. Money back plan. Wholelife plan. C 50. 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. B

. In case of a term plan the maximum premium of the accidental rider can be. 100% of basic premium. 50% of basic premium. 30% of basic premium. 35% of basic premium. C 2. With reference to the principle of indemnity a life insurance policy is a. Insurance contract. Indemnity contract. Value contract. Major life contract. C 3. In the personal statement, Ramesh declares that he consumes alcohol twice every week. This is a Moral hazard. Moral peril. Physical hazard. Physical peril. C 4. Micro insurance is made specifically for people from. High income. Middle class. Low income. Affluent class. C 5. The reduction in the benefit illustration shows what. Charges. Mortality. Interest. Inflation. A 6. 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 B 7. If a contract is signed by a 15 years old boy, this contract will be Null and void Invalid Voidable Valid B 8. If a life insurance policy is issued with a lien, it will be mention in Proviso Schedule Terms & conditions Endorsement B 9. Available Loan amount under a life Insurance policy is generally based on Total paid premium Sum Assured Surrender value Paid up value C 10. 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. D 11. 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

C 12. Which body has created a call center for logging a complaint Life Insurance Council IRDA Insurance Association Insurance Institute of India B 13. 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 C 14. After maturity In a Unit Linked Life Insurance Policy, customer does not get received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity plan He has switched his fund He has opted for Settlement option He has he has redirected his past premium. Policy was lapsed on the time of maturity B 15. Gautam wants to purchase a Kisan Vikas Patra. What is the most suitable place to purchase it Bank Insurance Company Post Office Share Market C 16. 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 B

17. During Fact finding, rating is mentioned 3. This Indicates Risk apatite of client His future aspiration Commitment to need Willingness to pay A 18. Raunak wants to purchase a cheapest plan which can provide financial security to his dependent. Which plan should be offered Term Plan Term Plan with return of premium Pure Endowment plan Unit Linked Plan A 19. For tax Saving Someone wants to fixed deposit in bank. What duration is required for it? 3 years 5 years 7 years 2 years B 20. Incase of presumption of death Not necessary to pay premium until court decree Necessary to pay premium until court decree Claim not admissible B 21. If insured gets the two advance payment in the 5yrs and in the maturity he gets rest of sum assured. What type of policy it is Money back policy Convertible plan Term plan Endowment policy A 22. Which is correct in relation to Insurance Broker? Insurance broker is represents insurance buyer and remunerated by the insurance company Insurance broker is represents insurance buyer and remunerated by the Client A

23. 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 A 24. What will be lien amount in 3rd year as compared to the 4th year of lien. It is higher Decrease Slightly higher Slightly lower B 25. Within how many years a complaint can be made through consumer protection act. One year Two years Three years Five years B 26. In which plan weekly premium payments are accepted. Health Insurance Group Insurance Micro Insurance C 27. 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 B 28. Basing on which criteria the qualification of Agent is determined? Address of the agent Domicile status B 29. Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness before maturity? (wrong) A. Nil 10%

20% 30% A 30. A customer surrenders his policy on Feb 2011. As per Agents code of conduct, an agent can get a new policy from this customer from Feb which year 2011 2012 2013 2014 A 31. If we hold 100 units in gold ETF, It means that how much grams we have in physical A. 5 or 10 grams B. 10 or 15 grams C. 15 or 25 grams D. 50 or 100 grams D 32. In case of life insurance, the insurable interest should exist A. At the time of taking the policy B. At the time of claim C. At the time policy matures D. At the time of taking the policy & claim A 33. Pooling of insurance applies to A. all types insurance B. All types of insurance except Motor insurance C. Only life insurance D. Only Non-life insurance A 34. Insurance companies are required to honor the awards passed by the Insurance Ombudsman within how many days 10 days 15 days 20 days 25 days B

35. 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 the IRDA by issuing a bill in parliament Has the power to supersede the IRDA by issuing draft Can make changes in IRDA law A 36. 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 D 37. 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 C 38. 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 A 39. During financial planning session if the agent finds out the following needs, which one should be given the top priority. Needs: Income protection, Childs education, marriage and emergency funds. A. Childs education B. Marriage C. Emergency funds D. Income protection D

40. National insurance academy has the following main functions A. Calculating premium B. Interact with the government C. Training D. Mortality assumptions C 41. Health insurance rider and critical illness rider in classified under A. Life and non life respectively B. Both life insurance C. Both non life insurance D. Nonlife and life respectively. A 42. Pure risk is classified under A. Economic risk B. Speculative risk C. Financial risk D. Insurable risk D 43. If a valid claim is delayed by the insurer then the interest for the same will have to be paid by the insurance after how many days from the date of admission of the claim? A. 10 days B. 20days C. 30 days D. 60 days C 44. As per IRDA regulations IGMS should be mandatory set up by A. Only by few selected insurers B. Only by non life C. Some life and non life D. By all insurers. D 45. If a customer has mentioned he is a drinker in the proposal form, the insurance company can exclude this hazard and mention it in which part of the policy document? A. Provisio

B. Endorsements C. Operative clause D. Terms and Conditions D 46. When can an insurance company give more than 35% first year commission? A. When the insurance company is in the first 10 years of operation B. If the agent has worked with the company for more than 5 years C. If the agent has worked with the company for more than 10 years D. If the agent is doing more than 3 policies in a month. A 47. When should an agent disclose the commission which he will earn from the product which he is going to sell A. When the customer asks him B. After the fact finding process C. After quantifying the need D. After the product is recommended to the client A 48. In a pension plan illustration what are the parts which shows the benefit for an annuitant. A. Insurance coverage B. Annuity part C. Guaranteed and non guaranteed part D. Vesting age C 49. Mr. shailsh has an endowment policy with 30 years policy term, he has paid for eight years. The sum assured Rs. 8,00,000/- and accumulated bonus Rs. 60,000/-. What is the paid up value if bonus accumulated and if not bonus accumulated? A. 213333 & 273333 B. 213333 & 229333 C. 229333 & 273333 D. 229333 & 293333 A 50. The consequences of these risks which will affect specific individuals or local communities in nature is called as A. Pure risk B. Financial risK

C. Particular risk D. Physical hazard C

1. What is the disadvantage to the insurer in case the persistency falls Lower profits Higher profits A 2. 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 A 3. If a policy with premium of Rs 5000 has matured, how much will be deducted when the maturity claim arises Nil 1% 5% 10% A 4. When a person is investing in Debt Mutual Fund, what is the primary objective Good Returns Regular Income Safety Liquidity D 5. If the employer has insurable interest in the life of an employee, what kind of policy is this?

Surety insurance Keyman Insurance Partnership Insurance Debtor Insurance B 6. In the sales illustration, the reduction of the actual benefit amount is mainly due to deduction of Commission Charges Non guaranteed benefits Reversionary Bonus B 7. 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. D 8. The client of reinsurer are Insurance companies Banks Asset Management Companies A 9. 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 C 10. 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 C 11. 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 and broker remuneration Broker only service the client A 12. A low persistency ratio for the insurance company means that: A. The customers are satisfied with the products B. The company is acquiring more business and new customers C. A large numbers of policies have lapsed / surrendered resulting in loss of profit D. The company will not declare bonus C 13. For annuity plans, before receiving regular/periodic annuity payments, the individual can make a lump sum withdrawal. This is known as commutation. Up to what proportion of the accumulated fund can be withdrawn? A. The entire fund can be withdrawn B. Only half of the fund can be withdrawn C. Only one third of the fund can be withdrawn D. Only one fourth of the fund can be withdrawn C 14. What is the stipulated time frame within which an insurer is supposed to respond after receiving any communication from its policyholders? A. 24 hours B. 1 day C. 10 days D. 30 days C 15. For an insurance agent, a low persistency ratio means : A. Loss of renewal commission B. High client satisfaction

C. Higher reputation D. More earning of First Year Commission A 16. 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 A. 15 days from the date of receipt of the policy document B. 20 days from the date of receipt of the policy document C. 25 days from the date of receipt of the policy document D. 30 days from the date of receipt of the policy document A 17. In the case of life insurance, insurable interest should exist A. At the inception of the policy B. At the time of a claim C. At the time of every renewal premium payment D. All the above occasion A 18. In which of the following plan remaining part of the Sum Assured is paid on maturity? Endowment Plan Convertible Plan Money Back plan Term Plan C 19. 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 B 20. Payment/Investments in Kishan Vikash Patra under post office schemes is done Regularly with no fixed term Lump Sum with no fixed term Lump Sum for fixed period of time Regularly for fixed period of time

C 21. 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 C 22. 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 C 23. Law of Large number helps the insures to Calculate the premium Increase the profitability Ascertain the death ratio Declare the bonus C 24. A person with a criminal background due to Financial fraud would come under which hazard Physical Moral Occupation B 25. Whose signature is required on attestation of the policy? Agent Policy holder Authorized officials of insurer Proposer C 26. What is the ceiling of tax exemption under 80 c. 1 lakh

1. 5 lakhs 2 lakhs 3 lakhs A 27. If customer has applied for a policy with 1 Lac SA then what is maximum Premium on which he can save Taxes Maximum 20000 Maximum 100000 Maximum 120000 Maximum 150000 A 28. If Ombudsman makes a recommendation and is accepted by Complainant then it would be Binding on the insurer Binding on Court Of Law Binding on IRDA Binding of Insured A 29. 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. Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk. Perils are factors which affect the risk being insured and hazards are the size of the risk being insured. Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout C 30. In India almost each and every sector is having regulatory agencies for following up the companies and institution operating in the sector. Likely, regulatory agency for insurance sector is known as SEBI ICAR IRDA RBI B 31. Govt. of India has full control on IRDA. Ultimately Govt. of India which of the following matters/issues of IRDA on an ongoing basis

Formation of IRDA Staffing pattern of IRDA Policy matters It is an autonomous body. Govt of India has no control over IRDA C 32. Mr. Rahul is having a life insurance policy. After 8 months he was died. But when the claim is returned by the Insurance Company as the claim cannot be settled because of a specific clause mentioned in the policy document. Which is the most likely clause? Special clause Suicide Clause Lien clause Paid up clause A 33. Mr. Ramesh has taken a life police as recommended by an insurance agent. Now the role of Agents Principal lies The insured Insurance Company only Ramesh only, none else IRDA, since entire insurance is under control of IRDA B 34. From Insurance Companys point of view, most important aspect in a Term Insurance Policy lies with Good ethics Fact findings The proposal Underwriting process C 35. Mr. Purusottam has joined as Director of Insurance Company. Now as per the IRDA act he is not allowed to play the role of which of the following: Agent Comparison website Under writer None of these A 36. Mr. Amar has taken a Term Insurance Policy from Insurance Company. A term insurance is basically what kind of contract?

Indemnity Contract Insurance Contract B 37. There are two most widely used mode of lodging complaints against insurance company by the insured. One is toll free phone call. Name which of following will be 2nd most widely used method among the following alternatives. Insurance ombudsman Direct visit to IRDA office Comparison website Vimal has obtained most of his policies from railway porters D 38. XYZ Insurance Company has started promoting their insurance products mostly through television and news paper advertisements. Hence, the said company is operating through Direct channel Indirect channel Using both the channels Agent channel C 39. ABC Insurance Company has appointed many agents. They are helping in underwriting process to the underwriters. However, Mr. Vimal, an agent has done adverse selections. From insurance companys point of view, which among the following is most likely considered to be the adverse selection? Obtaining a policy from a very poor person Obtaining policy from a rich man Vimal has obtained most of his policies from railway porters In certain cases material facts are changed to obtain higher claims D 40. Vikash a 30 years unmarried young man has invested a pretty good amount in shares. Recently he is shifting his investments Gold ETF. Now state which of the following is the most likely motive of Mr. Vikash by doing so? He is interested in savings only He prefers both regular savings as well as capital appreciation He prefers capital growth only Recently he is going to marry that is why he is more interest in Gold to keep the gold of his would be wife in Gold ETF B

41. It has been observed that, most of the policies issued by M/S XYZ Insurance Company have been forfeited by the insured during the free look period. What may be the most likely reason so far ethics is concerned? The company has no ethics The company has only internal ethics but not external The company has external ethics but not internal The company has both the ethics A 42. An insurance company has issued a policy document to one of its policy holder. In the policy document they have mentioned the payment of premium by the insured, payment of SA by the insurance company on the happening of insured event etc. which part of the policy document is most likely to contain such matter? Preamble Schedule Terms and conditions Operative clause D 43. The lung cancer is aggravated by smoking. In terms of insurance, these are respectively known as Hazard & peril Peril & hazard Effect & cause Either peril or hazard A 44. Sohan and Amit are 30 years old unmarried persons. Sohan is having dependent mother where as Amit has no dependent. Which type of policy most likely to be chosen by Sohan? Health insurance for mother Life insurance policy Liability insurance policy Retirement policy B 45. Ashok is a young married man with beautiful young wife and two kids. He should select which types of insurance projects? Contingency funding Health insurance Housing Loan insurance Retirement benefit insurance

B 46. Underwriting is an important aspect of insurance business. In which of the following situations underwriter must be most cautious? Low age, low sum assured Low age, high sum assured High age, high sum assured High age, low sum assured C 47. A Govt. employee after retirement has chosen to take 10% of his pension benefit in cash. Which of the following options shall be applicable to the person so far income tax payment is concern? It is absolutely tax free He has to pay 10% TDS on the amount taken in cash He has to pay 30% TDS on the amount taken in cash He is not allowed to take in cash. A 48. Amit has decided to invest Rs. 1,00,000/- every year in ULIP where as Ramesh has decided to invest the same amount in PF in order to get IT exemption in 80C. In this view which of the following is correct? Both the investments have same impact. In ULIP IT exemption u/s 80C is not available. PF is also not eligible for IT exemption u/s Sec. 80C. Both are taxable as per Income tax Act 1961 A 49. Ram and Shyam, both have taken life policy from same company through same agent for same period. During the process of disclosure, the agent has revealed that he obtains more commission from Ram. What may be the probable reason for the same? Shyam has taken more number of policy that is why he has been given concession. Rams policy is having rider Ram is older than Shyam Ram is having wife and children, where as Shyam is unmarried. A 50. Ramesh is a brother of Rakesh, in which circumstances Rakesh can propose a policy on Rameshs name If Ramesh owes him money IF Ramesh gives a declaration

If Ramesh proves that he need the money If ramesh want to invest by his brothers name. A

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1. 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. Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk. Perils are factors which affect the risk being insured and hazards are the size of the risk being insured. Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout B 2. In the context of financial planning, how is the difference between real needs and perceived needs best described? Real needs are financial needs and perceived needs are non-financial needs. Real needs are actual needs and perceived needs are based on a clients thoughts and desires. Real needs are identified by the insurance agent and perceived needs are identified by the client. Real needs are needs which satisfy an objective and perceived needs are needs which do not satisfy an objective. B 3. 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 Young married with Kids D 4. The Institute of insurance and risk management along with insurance education does what more

Regulation Redressal Research Repository C 5. 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 not going with the recommendation Should ask for a future date from the client Should review once again B 6. 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 C 7. 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. C 8. 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 paid up. It was surrendered. A 9. 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. A 10. 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. C 11. If RBI increases the interest rates then what will be the effect on share prices. Shares will be more attractive. Shares will be less attractive. Fixed deposits will be more attractive. Fixed deposits will be less attractive. B 12. 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 XYZ Life Insurance Company Vishal is older than Sandeep Sandeep is earning more then Vishal Vishal is working in a MNC B 13. 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 A 14. What is purpose of investing money in debt mutual fund? Easy access

Fixed income Tax Benefits Tax Benefits D 15. Mr. shailsh has an endowment policy with 30 years policy term, he has paid for eight years. The sum assured Rs. 8,00,000/- and accumulated bonus Rs. 60,000/-. What is the paid up value? A. 213333 B. 229333 C. 273333 D. 293333 C 16. What is the similarity between Recurring Deposits & cumulative deposits in a bank A. Guarantees B. Taxation C. Tenure D. Lock in periods A 17. Mrs. Sheela received some amount out of her husbands death. In such a situation what will be her prime focus? A. Savings B. Insurance C. Investment management D. Planning for pension C 18. 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 A 19. Which of the following falls under voidable contract? Misrepresentation Lack of insurable interest

Fraud None of the above A 20. Law of large numbers is worked out by which of the following? A. Pooling of risk B. Maintaining insurable interest C. With utmost good faith D. Randomness A 21. If a client wants to compare between all financial products then the best person he can approach is A. Individual agent B. Corporate agent C. Bank D. Broker D 22. If a person want to maintain emergency funds the best place is a bank or A. Equity market B. ULIP C. Debt mutual fund D. FD C 23. During a fact finding process the need analyzed were income replacement and childrens education. But the customer insists on only a child plan for the time being and asks the agent to give him a child plan. The agent should. A. Do the fact finding exercise again B. Insist with the client to take a term plan C. Give a child plan and revisit the client on a later date D. Give the lead to another agent C 24. If a case is already before the consumer forum, then the ombudsman should A. Give a recommendation B. Give a joint decision with the consumer forum C. Dismiss the case D. Give an award.

C 25. 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 C 26. What is the advantage of converting physical gold assets to gold ETFs. Liquidity More gold in value Purity More conversion value A 27. For which of the following reasons, the underwriter should ask beyond agents confidential report. Physical Hazard Moral Hazard SA is too high Pure Risk C 28. 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 A 29. Generally insurance companies do not hold the premium in case of a fraud or misrepresentation. However, due to which of the following circumstances the insurer can retain the premium of the policyholder Fraudulent claim Indisputability clause Redressal procedure Pending decision from Ombudsman B

30. According to IRDA agents code of conduct, what is the best method of showing the amount of commission earned by the advisor Signed copy of sales illustration Brochure Sales Communication Press releases A 31. With pooling of risks an insurance company pools the premium collected from several individuals to insure them against similar risks. At what circumstances will the insurance companies pool the risk of a life insurance and health insurance together? Under no circumstances Under conditions of the reinsurer As directed by actuary As per company policy A 32. 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 A 33. If the customer has invested money in a pension plan from company A and buys an annuity from company B, what is the nature of transaction? Life Long Annuity Open Market Reinsuring Annuity B 34. If a policy holder buys a policy from the advisor and lodges a complaint, it should be treated as : Same for all policies sold by advisor Same for all policies sold by the advisor except corporate clients A 35. An investor holds a wide range of shares. If the Reserve Bank of India announces a series of significant interest rate increases, the prices of these shares are most likely to A. Become volatile

B. Decrease C. Increase B 36. In life insurance business if a person is working in calculating premium rates of insurance products, then he is mostly likely a member of A. institutes of actuaries of India B. insurance institute of India C. Charted institute of insurance D. Insurance institute of risk management A 37. In a life insurance policy it is later found that the person doesnt have insurable interest then the contract is A. expired B. reviewed C. Void D. Valid D 38. If both parents of proposer died in their thirties due to heart attack what is the kind of peril or hazard the proposer has? Insurable hazard moral hazard non insurable hazard Physical hazard D 39. Raunak earns 80,000 per month as salary. He has taken a House loan of Rs. 500000. What will be the maximum amount of EMI that can be charged by the Bank to recover the loan amount? Rs. 32000 per month Rs. 24000 per month Rs. 40000 per month Rs. 48000 per month A 40. Frequent switching is not advisable in ULIP plan because it increase Investment Risk Risk of death

Uncertainty of return Chances of lapse A 41. According to insurance terminology which of the following is correct? Lung cancer is a hazard whereas smoking is a peril Smoking is a hazard and lung cancer is a peril Lung cancer is a peril and smoking is a moral hazard Smoking is a moral hazard whereas lung cancer is a peril. B 42. An insurance agent sold two policies to two different persons having the same policy term. He declares the commission to each of them. The commission of one of the policy is more than the other. What should be the reasons for this difference? 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. D 43. 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 B 44. 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 D 45. 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 client Reviewing his existing investments A 46. Net premium is equal to Premium plus interest earning Risk premium plus interest earning Premium minus interest earning Risk premium minus interest earning D 47. 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 B 48. 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. B 49. 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. C 50. 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 A