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S.

No Chapter

Question If a client wants to compare between all financial products then the best person he can approach is In life insurance business if a person is working in calculating premium rates of insurance products, then he is mostly likely a member of In term insurance if Critical illness rider claim happens then what will happen to existing policy 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 The concept of indemnity is based on the key principle that policyholders should be prevented from For assessing the risk of a group health insurance policy, which of the following information is the most critical 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? How many days does the Free Look Period last? The Ombudsmans powers are restricted to insurance contracts of what value?

Ans Option 1

21 Ch 1

1. Individual agent

36 Ch 1

1. institutes of actuaries of India

58 ch 1

1. CI benefit will cease

123 ch 1

1. Money back policy

159 Ch 1

1. Insuring existing losses.

162 ch 1

1. Group lifestyle

186 Ch 1 200 Ch 1 201 Ch 1

1. 60000 1. 15 days 1. 1Lakh 1. Endowment and Money Back Insurance 1. Giving insurance policies to Banks. 1. One party makes an offer which the other party accepts unconditionally. 1. Client and Insurance Company 1. individual agents 1. physical values of assets 1. death is certain 1. future data

227 ch 1 228 ch 1

Insurance Market divided into What is Bancassurance?

232 ch 1 263 Ch 1 277 Ch 1 280 Ch 1 281 Ch 1 283 Ch 1

A contract comes into existence when An insurance agent is intermediary between. Which of the following do not include the channel of indirect marketing? The business of Insurance is connected with................ Human beings need life insurance because.................. Life insurance the risk is determined on the basis of ..........

379 ch 1

381 ch 1 426 Ch 1

427 Ch 1

428 Ch 1

Life insurance company determine the level of risk based on 1. Future expenses. 1. Using the same pool for paying claims of car & In Insurance terms, pooling of risk is life insurance. Insurance business is classified into three main 1. Life, Non life, Micro types: Insurance. Amit is looking for term insurance plan for protection of his family, he is advised to approach to: 1. Property Insurance Insured can contact to seek the resolution of grievances they have against insurer to IRDA through: 1.Complaint@gov.ird1.in

Ans Option 2

Ans Option 3

Ans Option 4

2. Corporate agent

3. Bank

4. Broker

3. Charted institute of 2. insurance institute of India insurance 2. CI benefit reduced from existing sum assured

4. Insurance institute of risk management

3. CI benefit continues

4. No change in policy.

2. Convertible plan 2. Making false insurance claims.

3. Term plan 3. Paying excessively for insurance cover.

4. Endowment policy 4. Profiting from insurance. 4. Medical history of group

2. Employees

3. Age of the group

2. 75000 2. 30 Days 2. 10 Lakhs 2. Life and General (non-life) Insurance 2. Selling insurance policies through Banks. 2. One party makes an offer which the other party put extra conditions. 2. Insurance Company and IRDA 2. bancassurance 2. economic values of assets 2. death is uncertain 2. past data

3. 100000 3. 45 days 3. 15Lakhs

4. 5000 4. 60 Days 4. 20 Lakhs

3. Government and Private 4. Health and Saving Insurance Markets Insurance Markets 3. Giving guarantee to policies by Banks. 4. None of the above. 3. One party makes an offer 4. One party makes an where other party gives offer which the other counter offer. party receives the offer. 4. Insurance and Re3. Client and IRDA insurance company. 3. insurance brokers 3. metaphysical values of assets 3. the timing of death is uncertain 3. statistical data 4. through internet 4. market values of assets 4. Death is the solution. 4. mathematical data

2. Claim experiences.

3. Present expenses. 3. Using the same pool for 2. Using different pool for paying claims of life & paying claims of life insurance. house insurance. 2. Life, Non Life, 3. Life, Non life, ReMiscellaneous insurance.

4. Targeted bonus rates. 4. Using the same pool for paying claims of life insurance. 4.Life, Health, Micro Insurance

2. Life Insurance

3. Health Insurance

4. Liabilty Insurance

2.insurancecomplaints@irda.g ov.in 3.irdacomplaints@gov.in

4.Complaints@irda.gov.in

S.No

Chapter

Question

1 Ch 2

How are perils and hazards normally distinguished under term insurance policies? The Institute of insurance and risk management along with insurance education does what more 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 Law of large numbers is worked out by which of the following? With pooling of risks an insurance company pools the premium collected from several individuals to insure them against similar risks. At what circumstances will the insurance companies pool the risk of a life insurance and health insurance together? According to insurance terminology which of the following is correct? What is the main objective of taking the life insurance policy? Suresh is suffering from Asthma and the policy is been done on joint life basis and the need for nomination under the plan will be as What is the maximum sum assured under a micro insurance Available Loan amount under a life Insurance policy is generally based on In case of life insurance, the insurable interest should exist Health insurance rider and critical illness rider in classified under 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?

4 Ch 2

18 Ch 2 20 Ch 2

31 Ch 2 41 Ch 2 47 Ch 2 59 Ch 2

90 Ch 2 94 Ch 2 111 Ch 2 134 Ch 2 143 Ch 2

151 Ch 2

174 Ch 2 181 Ch 2

193 Ch 2 206 Ch 2 229 Ch 2 230 Ch 2 231 Ch 2

Under the IRDA guidelines for Claim settlement, any queries or additional documents can asked from the claimant within Mr. Shyam is having 9 year old child. Which product is not to be given priority? Vijay received his policy bond on 11th June, 201 Due to some personal problems he has decided to cancel the policy on 8th July, 201 Can he cancel or return the policy? Ombudsman has to give his decision within how many days? The Risk contains. Grouping the similar risks by Insurance Company is called as. The function of Insurance works on.. 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----------------Which of the following can be an example of moral hazard? Which one of the following is possible in retaining the risk? On 6th August there was a typhoon. Mr.Augustin who had insurance died in typhoon. Now how will the insurance company will categories this particular risk ? Ram works in a Fire cracker factory. He stocks the cracker in his house. He runs which type of risk. An Insurance company pools the premium collected from several Individual to insure them against similar risk is called: Which of the following Risk is associated with those events which are not in control of an individual and also no possibility of making profit: which of the following refres to specific event which might cause a loss ...

276 Ch 2 279 Ch 2 326 Ch 2

331 Ch 2

380 ch 2

429 Ch 2

430 Ch 2 431 Ch 2

Ans Option 1

Ans Option 2 2. Perils are risks that 1. Perils are medical factors which policyholders will die before a influence the risk of dying and hazards are specified date and hazards are lifestyle activities which influence the risk factors which could influence of dying. that risk.

Ans Option 3 3. Perils are factors which affect the risk being insured and hazards are the size of the risk being insured.

1. Regulation

2. Redressal

3. Research

1. Physical hazard 1. Pooling of risk

2. Fraudulent representation 2. Maintaining insurable interest

3. Moral hazard 3. With utmost good faith

1. Under no circumstances 1. Lung cancer is a hazard whereas smoking is a peril

2. Under conditions of the reinsurer 2. Smoking is a hazard and lung cancer is a peril

3. As directed by actuary 3. Lung cancer is a peril and smoking is a moral hazard

1. Tax benefit

2. Savings

3. Investment

1. Joint life policy 1. 10000 1. Total paid premium 1. At the time of taking the policy 1. Life and non life respectively

2. Not Possible 2. 25000 2. Sum Assured 2. At the time of claim 2. Both life insurance

3.50:50 3. 50000 3. Surrender value 3. At the time policy matures 3. Both non life insurance

1. 213333 & 273333

2. 213333 & 229333

3. 229333 & 273333

1. 5 days from the receipt 1. Health plan

2. 10 days from the receipt 2. Child Plan

3. 15 days from the receipt 3. Life Insurance

1. No, as 15 days period is over 1. 15 Days 1. Peril and Hazard 1. Grouping of Risk 1. Risk Transfer

2. Yes, as it is within 1 year 2. 30 Days 2. Level 2. Risk Grading 2. Risk avoid

3. No, as 20 days period is over 3. 2 Months 3. Uncertainty 3. Risk Assessment 3. Risk retention.

1. Risk retention 1. a family history of heart disease 1. Retaining the ownership in the policy

2. Risk transfer 2. a person working in a chemical factory 2. Not possible as life has many risks.

3. Risk avoidance 3. a person consuming alcohol 3.Is possible by transferring risk to the policy holder

1. Under the category of Pure risk

2. Under the category of peril 3. Under the category of particular risk risk

1. Speculative.

2. Particular.

3. Financial.

1. Pure Risk

2. Pooling of Risk

3. Insuraable Risk

1. Pure Risk. 1. Peril

2. Particular Risk. 2. Hazard

3. Financial Risk. 3. Physical hazards

cocd 01621611

Ans Option 4 4. Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout

4. Repository

4. Peril 4. Randomness

4. As per company policy 4. Smoking is a moral hazard whereas lung cancer is a peril.

4. Protection

4.Not Applicable 4. 100000 4. Paid up value 4. At the time of taking the policy & claim 4. Nonlife and life respectively.

4. 229333 & 293333

4. 20 days from the receipt 4. Retirement Plan

4. Yes, as it is within 3 months 4. 3 Months 4. All of the above. 4. Pooling of Risk 4. All of the above.

4. Risk tolerance 4. A teacher working in a primary school. 4.Is possible by Re-insuring oneself

4. Under the category of Risk Transfer

4. Fundamental.

4. Sharing of Risk

4. Insurable Risk 4. Uncertinity

S.No

Chapter

Question 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 the sum assured remains the same, what will be impact of net premium if the age of the policyholder increases 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? In a life insurance policy it is later found that the person doesnt have insurable interest then the contract is Net premium is equal to 0 Pooling of risk in insurance means Principle of utmost good faith will operate in existing policy Both the parties to a contract must agree and understand the same thing and in the same sense which is called Life insurance is the most important for which age group The premium for accidental death benefit rider must not exceed 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. 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? If bonus is given under a plan the additional premium added is known as In case of a term plan the maximum premium of the accidental rider can be. The reduction in the benefit illustration shows what. If a life insurance policy is issued with a lien, it will be mention in If we hold 100 units in gold ETF, It means that how much grams we have in physical

15 ch 3

25 Ch 3

32 Ch 3

37 Ch 3 46 Ch 3 48 49 ch 3

50 ch 3 63 Ch 3 79 Ch 3

80 ch 3

87 Ch 3 88 Ch 3 103 Ch 3 107 ch 3 110 Ch 3 133 Ch 3

150 Ch 3 157 Ch 3

In a pension plan illustration what are the parts which shows the benefit for an annuitant. If the employer has insurable interest in the life of an employee, what kind of policy is this? In the sales illustration, the reduction of the actual benefit amount is mainly due to deduction of 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 What is the major reason for self employed to take insurance. 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? Rajesh is 34 years old and having 2 sons, Vineeth and Sumith. The level of risk appetite, Rajesh belongs is _______. Total annual premium Rs 32000 quarterly loading 0 done 4 %. Hence actual quarterly premium will be Under this situation may leads to breach of the duty 0 of utmost good faith. Principle of Indemnity denotes.. The principle of utmost good faith is not applicable to What are the factors involved in calculating Surrender Value of the Policy? What are the different types of Assignments? Mr. Rajesh has taken policy from ABC insurance company for Rs. 500000 Sum Assured by paying Rs. 50,000 premium per year. Company declared 5% Simple Reversionary bonus, what is bonus amount? In an insurance contract the insurable interest needs to be at the time of .... In an insurance contract 'consideraton' means........ Where do you not find insurable interest in the following options......... The principle of utmost good faith applies to...........

158 Ch 3

168 ch 3 184 Ch 3

191 Ch 3

198 Ch 3

224 234 235 Ch 3 236 Ch 3 238 Ch 3 239 Ch 3

244 Ch 3 278 Ch 3 282 ch 3 284 ch 3 285 ch 3

287 Ch 3 Which of the following statement is not true in connection with nomination? Which of the following statements in correct in connection with assignment? Mr. Shanth has taken an endowment policy of 20 years. He has paid premium for 10 years and now the policy is in force. At this point of time can Shanth take loan? Mr.Akash filled the proposal form but before submitting to the company he discussed with the agent that he is not sure whether he can pay for 15 years . This attitude affects which part of the contract? Mr.Karan who has to go to abroad for 6 months on an official work decides to leave his car with his friend Mr. Jim. What will be the validity of the insurable interest in this case ? Mr. Josh was filling the proposal form but as his mother was sitting beside him, even though he drinks and smokes he ticked NO in smoking & drinking column of proposal form. This indicates ? Mrs.Shwetha has taken a loan from her policy. Later stage she neither paid back neither the loan nor she paid the premium for a very long time. What will happen to her policy? Mr. Manish has a money back policy and a whole life policy. He is planning to take some loan from both the policies as he was regularly paying the premium. What is your suggestion? Mr. Raj has taken a policy of 15 year term. He has paid the premium for 9 years. But now unfortunately he has lost his job. He is unable to pay the premium. What can be the best solution from the following ? A contract exists between insurer and proposer when Payment of premium and sum assured are laid down in

288 Ch 3

0 Ch 3

290 Ch 3

332 ch 3

334 ch 3

336 ch 3

338 Ch 3

339 Ch 3

357 Ch 3 382 ch 3 384 ch 3 385 ch 3

386 ch 3

An insurance contract commences when

387

389 ch 3

0 When is premium considered / deemed to be paid? 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

390 ch 3

How assignment distinguishes itself from nomination? Under what circumstances the surrender of a policy should be recommended by the agent? What key event is most likely to make an insurance contract not a valid contract? Manish took a loan from Pankaj of Rs.10 lac, Pankaj transferred his Insurance policy to Manish of Rs.10 lac as a security with the agreement Of when Loan is fully paid, policy title will be revert back to name of Manish is called: Rakesh has bought an Endowment, Money back, Term & Annuity Plan he would like to avail Loan from: On foreclosure, if Death claim arises before the payment of the surrender value, the payment would be payable to: To prove ones identity in accordance with KYC process, the customer needs to submit following document excluding .? Life Insurance also known as: Which clause lays down the mutual obligation of the parties regarding, Payment of Premium by Life assured & payment of Sum Assured by

413 ch 3 418 ch 3

432 Ch 3

433 Ch 3

434 Ch 3

435 Ch 3 436 Ch 3

437 Ch 3 438 Ch 3

439 Ch 3

440 Ch 3

Parvesh bought a policy an endowment plan but after one year insurer. Found he had Aorta Surgery .now which will apply by insurer: Jyoti is submitting is copy of permanents account number card as age proof for buying an money back plan .her age consider as a

Ans Option 1

Ans Option 2

1. 213333

2. 229333

1. It rises

2. It falls

1. Reinstatement Fee and Proof of continuing good health

2. Premium cheque and health declaration

1. expired

2. reviewed 2. Risk premium plus interest 1. Premium plus interest earning earning 1. The premium collected & deposited in 2. All similar risks are pooled a pool together 2. If the policy has lapsed and it 1. Every time premium is paid has to be revived.

1. Consideration. 1. Young 1. 15% of base policy premium

2. Legality of an object. 2. Pre- retirement 2. 25% of base policy premium

1. 8000

2. 8320

1. Discounted Value 1. Loading 1. 100% of basic premium. 1. Charges. 1. Proviso 1. 5 or 10 grams

2. Principle amount 2. Investment 2. 50% of basic premium. 2. Mortality. 2. Schedule 2. 10 or 15 grams

1. Insurance coverage 1. Surety insurance

2. Annuity part 2. Keyman Insurance

1. Commission

2. Charges

1. 15 days from the date of receipt of the 2. 20 days from the date of policy document receipt of the policy document 1. Save Tax 2. Fluctuating income

1. National Commission

2. District Level

1. Middle Level

2. Top Level

1. 7680 1. Non disclosure of material facts. 1. Insurance can not be used to make a profit 1. Facts of common knowledge 1. Number of years premium paid. 1. Full Assignment and Partial Assignment

2. 9320 2. Concealment of a material fact 2. Insurance should not taken by high risk people. 2. Facts of law 2. Number of premiums payable. 2. Conditional and Absolute Assignment.

1. Rs. 2500/1. claim 1. proposal form 1. surety-co surety 1. only insurers

2. Rs. 25000/2. revival 2. Advisors confidential report 2. employee-employer 2. only proposer

1. The policy will be renewed on the existing terms and conditions. 1. The life insured can nominate one or more than one person as nominees. 1. Assignee cannot make fresh nomination in the policy

2. Mr. Shanth cannot renew the policy 2. Nomination can be done either at the time the policy is bought or later. 2. The assignor need not be major at the time of assignment.

1. Mr. Shanth will not be granted any loan

2. Mr. Shanth can take loan which should be certain percentage of the surrender value of the policy.

1. Consideration in the contract

2. Capacity to contract

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

1. He has breached the non-disclosure of 2. He has breached the company the fact by concealing the facts

1. Policy will be surrendered by the insurer

2. Policy will be surrendered by the nominee 2. He can surrender whole life policy and can take loan from Money back policy

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

1. Converting the policy to Term policy 1. A proposal has been accepted by insurer. 1. Indemnity contract. 1. Heading of policy document.

2. Converting the policy to Paid up 2. A policy document has been stamped by insurer. 2. Value contract. 2. Proviso of policy.

1. Quotation is signed by proposer.

2. First Premium Receipt is issued.

1. When insured writes a cheque in favor 2. When cheque amount is of insurer. deposited in insurer account.

1. Acquires surrender value.

2. Contract comes to an end.

1. Nomination does not transfer the title 2. Nomination transfers the title while assignment does. while assignment does not. 2. When a client is holding a 1. When a client have been sold the right product having good value for solution. money. 2. Representation of facts by the 1. The circumstances are legitimate. policyholders is true.

1. Loan assignment

2. Conditional Assignment

1. Endowment Plan

2. Term Plan

1. Nominee

2. Legal heir of life Assured

1. An Age Proof 1. Value Contract.

2. An Identity Proof 2. Indemnity

1. Lien Clause 1. Nominee only

2. Opertaive Clause 2. Legal heir of the life assured

1. Indisputability Clause (Section 45) apply

2.Principal of Indemnity apply

1. Non Standard Age Proof

2. Standard Age proof

Ans Option 3

Ans Option 4

3. 273333

4. 293333

3. It remains constant

4. Gross premiums increases

3. Only health certificate

4. Premium cheque with arrears

3. Void

4. Valid 4. Risk premium minus interest 3. Premium minus interest earning earning 4. Contribution of insurance 3. Premium is pool to make claims company 3. If the insured person falls sick and 4. If the insured person changes his is admitted to hospital. job.

3. Consensus ad idem. 3. Retirement 3. 30% of base policy premium

4. Acceptance. 4. children 4. 40% of base policy premium

3. 9456

4. 9240

3. Discounted Value with persistency bonus 4. Principle with persistency bonus 3. Frequency 3. 30% of basic premium. 3. Interest. 3. Terms & conditions 3. 15 or 25 grams 4. Interest 4. 35% of basic premium. 4. Inflation. 4. Endorsement 4. 50 or 100 grams

3. Guaranteed and non guaranteed part 3. Partnership Insurance

4. Vesting age 4. Debtor Insurance

3. Non guaranteed benefits

4. Reversionary Bonus

3. 25 days from the date of receipt of 4. 30 days from the date of receipt the policy document of the policy document 3. High Returns 4. Protection

3. State Level

4. Mandal Level

3. Low Level

4. High Level

3. 8320 3. Fraudulent misrepresentation of facts. 3. Insurance can not taken by politicians. 3. Facts those are not material. 3. Sum Assured 3. Life Assignment and General Assignment.

4. 6600 4. All of the above. 4. All of the above. 4. All of the above. 4. All of the above. 4. Standard Assignment and NonStandard Assignment.

3. Rs. 250000/3. inception 3. premium 3. husband-wife 3. both insurers and proposer

4. Rs. 5000/4. surrender 4. claim 4. brother-sister 4. neither insures nor proposer

3. the policy may be renewed on different terms and conditions 3. A person having a policy on the life of another should make a nomination. 3. Section 45 of the insurance act speaks about assignment.

4. Mr. Shanth can renew the policy only on the approval of the insurer 4. The section 39 of the Insurance Act 1938 speaks about the nomination. 4. Conditional assignment and absolute assignment are one and the same.

3. There is no concept of loan in insurance policy

4. loans are allowed only in term plans

3. Consensus ad idem 3. The insurable interest between the car and karan is valid until he owns it

4. Offer and Acceptance in the contract 4. The insurable interest between the car and Jim is valid until Karans return

3. He has breached the company by fraudulent information

4. He had done an innocent misrepresentation

3. Policy will be surrendered by the company 3. He cant take loan from money back but can avail loan from Whole life policy

4. Policy will be surrendered by the heir 4. He cant take loan from whole life policy but can avail loan from Money back policy

3. Converting the policy to money back 3. A policy document has been received by the policyholder. 3. Deemed contract. 3. Operative clause.

4. Converting the policy to whole Life 4. An insurer has made another proposal. 4. Rolling contract. 4. Schedule of policy document.

3. Proposal Form is signed. 3. When the cheque is deposited with insurer office.

4. Policy Document is received by policyholder. 4. When cheque is posted/couriered by the insure4.

3. Moneys will be forfeited.

4. Acquires paid up value.

3. Nomination is made after policy is 4. Nomination need not be issued while assignment is done informed but assignment needs to before it is issued. be informe4. 3. When the policy has been mis-sold 4. When the client is enjoying good and do not match his needs. financial status. 4. There is no insurable interest 3. The life assured is major. attached to the policy.

3. Loan Agreement

4. Absoulte Assignment

3. Money Back Plan

4. Annuity Plan

3. Debotrs

4. forfeited the Premium

3. An Address Proof 3. Commercial Contract

4. Education Proof 4. Speculative

3. Proviso Clause 3. Appointee Only

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

3.Lien Clause

4.Utmost good faith apply

3. an Address proof

4. Proof of Income tax payer

S.No

Chapter

10 Ch 4

12 Ch 4

Question While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account? 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? For which of the following reasons, the underwriter should ask beyond agents confidential report. If both parents of proposer died in their thirties due to heart attack what is the kind of peril or hazard the proposer has? 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? What key impact will the agent have in low persistency Within how many days will the underwriter needs to inform the policyholder regarding the status of the policy. The insurance act of 1938 created which of these. With reference to the principle of indemnity a life insurance policy is a. Micro insurance is made specifically for people from. If Insurable interest does not exists at the time of inception of the life insurance policy then, life insurance contract is If a contract is signed by a 15 years old boy, this contract will be Shailesh and ankit want to retire in the age of 65yrs. But shailesh pays more monthly payment than ankit for same amount of policy. Why? As per IRDA regulations IGMS should be mandatory set up by For an insurance agent, a low persistency ratio means : Law of Large number helps the insures to What is the limit of tax benefit that can be availed of under Section 80C? In a case, the underwriter felt that the risk associated with the person would decrease with time, then he would accept the case with

27 Ch 4

38 Ch 4

65 Ch 4 91 Ch 4

92 Ch 4 98 Ch 4 104 Ch 4 106 Ch 4

108 Ch 4 109 Ch 4

125 Ch 4 146 Ch 4 167 Ch 4 176 Ch 4 205 Ch 4

207 Ch 4

215 Ch 4 217 Ch 4 219 Ch 4

In Cumulative Deposits the interest is normally compounded in a Age proof submitted from Village Panchayat is: Maximum Life cover 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. What is the main source for insurance company to get information of proposer?

233 Ch 4 237 Ch 4

241 Ch 4 242 Ch 4 243 Ch 4

Moral Hazard reflects the . Income replacement methods equates Human Life Value (HLV) to Agent will be called as..

286 Ch 4 291 Ch 4 292 Ch 4 293 294 Ch 4

When an illiterate person wants to have a policy..... As per the IRDA regulations the decisions on the proposal must to convey to the proposer within...... The underwriter can get the required information about the proposer in..... Mr. Ramesh works in a mining company. So he is exposed to.............. 0 Lien is imposed on a policy when underwriter feels that......

329 Ch 4

What does the mortality tables contains ?

330 Ch 4 340 Ch 4

Mr. Guptha is recently detected with lung cancer. He would like to take an insurance. What is your suggestion? Which of the following information does not appear in the First Premium Receipt? 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:

341 Ch 4

342 Ch 4 343 Ch 4 344 Ch 4

Mr.Feroz has applied for an insurance cover of Rs.4 crores. The Company will accept or reject the proposal only after confirming from one of the following agencies. The responsibility for classification and analysis of the proposal form lies with whom? In underwriting the economic value of the person is determined by what? In which one of the following statement an agents commission will be disclosed to the customer ? Rakesh purchased a life insurance policy. While writing a proposal form he hide that he practices mountaineering. Sadly he died in an accident while climbing Mount Everest. The insurers rejected the claim.What is the reason for rejection? Ram Lal is an insurance policyholder. He has recently shifted his home from New Delhi to Noida. He wants the address to be changed. This change in policy document will be effective through?

363 Ch 4

383 ch 4

388 ch 4

391 ch 4 392 ch 4 393 ch 4

When an underwriter may consider Moral Hazard? Level Premium is calculated based on MPL abbreviates

410 ch 4

To explain the benefits of a product, the insurance adviser should Which one of the following bonuses is given by insurer as an incentive to the insured to for long term: Ramesh bought an endowment plan for tern year he pays the same Amount in every year is called: Which one of the following is not source of information about the 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

441 Ch 4 442 Ch 4 443 Ch 4

444 Ch 4

Ans Option 1

Ans Option 2

Ans Option 3

1. Inflation.

2. Interest.

3. Discount rate

1. Sandeep has taken another policy from XYZ Life Insurance Company

2. Vishal is older than Sandeep

3. Sandeep is earning more then Vishal

1. Physical Hazard

2. Moral Hazard

3. SA is too high

1. Insurable hazard

2. moral hazard

3. non insurable hazard

1. 1 lacs 1. Increase more business

2. 3 lacs 2. Increase in the agents earning

3. 2 lacs 3. Will improve reputation

1. 10 days 1. IRDA 1. Insurance contract. 1. High income.

2. 15 days 2. Tariff Advisory Committee 2. Indemnity contract. 2. Middle class.

3. 30 days 3. National Insurance Academy 3. Value contract. 3. Low income.

1. Voidable 1. Null and void

2. Invalid 2. Invalid 2. Shaileshs income is more than Ankits income 2. Only by non life 2. High client satisfaction 2. Increase the profitability 2. 15,000/-

3. Valid 3. Voidable 3. Shailesh & Ankit want it that way 3. Some life and non life 3. Higher reputation 3. Ascertain the death ratio 3. 10,000/-

1. Shailesh is older than ankit. 1. Only by few selected insurers 1. Loss of renewal commission 1. Calculate the premium 1. 50,000/-

1. A clause

2. A Lien

3. A Loading

1. Annually 1. Standard and accepted 1. 20 times annual salary

2. Semi Annually 2. Not standard but accept 2. 500000

3. Quarterly 3. Not at all accepted 3. 1500000

1. Anti Money Laundry 1. Advertisements.

2. Legality of object or purpose 2. Proposal form.

3. Capacity of paying future premiums. 3. Conducting interviews.

1. Intentions and attitude of Proposer. 1. Future value of Present earnings. 1. Primary Underwriter

1. an impression of the left thumb is taken and third party has to attest it 1. 10 days 1. Proposal form. 1. moral hazard 1. the risk associated might increase 1. Tables of death occurring in various circumstances

3. Occupation and 2. Habits and Hobbies of Proposer. Residence of Proposer. 3. Present value of 2. Present value of future earnings. previous earnings. 2. Main Underwriter 3. Chief Underwriter. 3. an impression of the 2. an impression of the left thumb left thumb is sufficient is taken and the advisor has to and need not be attest it attested 2. 15 days 2. renewal receipt 2. physical hazard 2. the risk associated might decrease 2. Tables of details of various probabilities of death 3. 20 days 3. brochure 3. mental hazard 3. the risk associated might not be harmful 3. Tables of details of underwriters calculation on death 3. He can take insurance after submitting health certificate 3. Date the policy matures

1. Time of death is uncertain, so insurance can be given 1. method and frequency of premium payment

2. Only lung is affected so health insurance can be given. 2. Date of commencement of last premium

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

1. Financial Inspection agencies 1. Risk Analysis Department 1. The occupation of the person

2. Specialized inspection agencies

3. Credit worth inspection agencies

2. Classification of Risk Department 3. Underwriter 3. The income that he 2. The financial history of his family earns 2. Benefit illustration of unit linked 3. Benefit illustration of product endowment product

1. Customer Statement of the product

1. Innocent misrepresentation.

2. Fraudulent misrepresentation.

3. Concealment.

1. Terms & Condition. 1. An individual is proposing SA 15 times his annual income. 1. Risk Premium. 1. Minimum Possible Loss.

2. Preamble. 2. Insurance is taken out by an individual with dependents. 2. Net Premium. 2. Major Possible Loss.

3. Endorsement. 3. A nominee is not a dependent. 3. Loading of Premium. 3. Minor Possible Loss. 3. Provide the terms and conditions document to the client.

1. Provide the product brochure to the client.

2. Provide Benefit illustration documents to client.

1. Simple Revisionary bonus 1. Gross Premium 1. Proposal Form

2. Compound Revisionary bonus 2. Level Premium 2. Insurance agent

3. Persistency Bonus 3. Risk Premium 3. neighbor of proposer

1. Physical Hazard

2. Moral Hazard

3. Medical

Ans Option 4

Correct option

4. Compounding.

4. Vishal is working in a MNC

4. Pure Risk

4. Physical hazard

4. 1.50 lacs 4. Will have impact in his commission.

4. 45 days 4. LIC 4. Major life contract. 4. Affluent class.

4. Null & voidable 4. Valid

4. Option 1 & 3 are correct 4. By all insurers. 4. More earning of First Year Commission 4. Declare the bonus 4. 100,000/-

4. Level Premium

4. Monthly 4. Accepted with SSLC book/mark list 4. 4000000.

4. All of the above 4. Telephonic conversations. 4. Medical and Personal History of Proposer. 4. Future value of previous earnings. 4. Information Underwriter. 4. A relative of the illiterate person has to sign on behalf of that illiterate person. 4. 25 days 4. annual report 4. Ethical hazard. 4. the risk associated might be general 4. Tables of details of actuarial calculation on death

4. Cannot give insurance for health reason 4. Date the last premium will be paid

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

4. Insurance Investigation Agencies 4. Actuary who analysis the risk 4. Human Life Value 4. Customer data sheet with the product

4. Non-Disclosure.

4. Schedule. 4. A medical checkup is carried out nearby place of residence. 4. Gross Premium. 4. Maximum Possible Loss.

4. Provide the website address to the client.

4. Interim bonus 4. Net Premium 4. Medical of examination report

4. No underwriting

S.No

Chapter 40 Ch 5

Question Frequent switching is not advisable in ULIP plan because it increase 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? If person consumes alcohol- what is the type of hazard? Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply? Nomination can be in favor of how many people? 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. 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. In the personal statement, Harish declares that he consumes alcohol twice every week. This is a

42 Ch 5 60 Ch 5

64 Ch 5 89 Ch 5

96 Ch 5

99 Ch 5 105 Ch 5

115 Ch 5 117 Ch 5 119 Ch 5

What is the key function of NIA Gautam wants to purchase a Kisan Vikas Patra. What is the most suitable place to purchase it During Fact finding, rating is mentioned 3. This Indicates Raunak wants to purchase a cheapest plan which can provide financial security to his dependent. Which plan should be offered Incase of presumption of death Within how many years a complaint can be made through consumer protection act. Basing on which criteria the qualification of Agent is determined? If IRDA is unable to discharge its functions or duties, Central Government 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?

120 Ch 5 122 Ch 5 127 Ch 5 130 Ch 5

137 Ch 5

147 Ch 5

156 Ch 5 160 Ch 5 169 Ch 5 170 Ch 5 172 Ch 5 177 Ch 5 178 Ch 5 190 Ch 5

When a person is investing in Debt Mutual Fund, what is the primary objective The client of reinsurer are In the case of life insurance, insurable interest should exist In which of the following plan remaining part of the Sum Assured is paid on maturity? Payment/Investments in Kishan Vikash Patra under post office schemes is done A person with a criminal background due to Financial fraud would come under which hazard Whose signature is required on attestation of the policy? Payment of premiums by cash cannot exceed ____________ . 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. What does MDRT Stand for? Mr. Kumar is taken one life insurance policy with ABC Company. But he is not satisfied with the policy benefits. What Mr. Kumar can do under this situation? The two basic elements of most life insurance plans are Term Insurance Plan will give. Low risk products give.. Which of the following product not comes under Section 80 ( C ), income tax act 196 The income of an individual can be protected with the help of......... Mr. Shanth has got a pure endowment policy for 30 years for the sum assured of Rs. 75,000,00/-. It can be paid to him...... Flexibility like partial withdrawal and taking premium holidays is possible with.... Mr. Varun who won a multi chain company would like to take an insurance. What will be the best option for him from the following ? Mr. Vinu 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?

197 Ch 5 203 Ch 5

240 Ch 5 245 Ch 5 246 Ch 5 247 Ch 5 251 Ch 5 295 Ch 5

296 Ch 5 300 Ch 5

335 Ch 5

345 Ch 5

346 Ch 5 394 ch 5

395 ch 5 445 Ch 5

Mr. Kumar decides that his employees should have SSS scheme. What type of plan is SSS? What is generally considered as a substitute to charging a high premium for a high risk? Manmohan has recently purchased a house worth ` 50, 00,000 on loan. Which insurance product you as an adviser will suggest? In Group insurance plans contract of insurance between ? Which option is not correct with regard to joint life insurance plan?

446 Ch 5

Ans Option 1 1. Investment Risk

Ans Option 2 2. Risk of death

1. Risk profile of both the policyholder 2. Age of both the candidate are are different different 1. Moral 2. Physical

1. 2.5% 1. One person

2. 3.0% 2. Two persons

1. 2 lacs

2. 3 lacs

1. The policy needs to be advertised in 2. Nishu has to sign an indemnity the newspaper. bond. 1. Moral hazard. 1. Provide suggestion for Premium calculation 1. Bank 1. Risk apatite of client 2. Moral peril. 2. To be an active link between Global market & Indian Life Insurance Industry 2. Insurance Company 2. His future aspiration

2. Term Plan with return of 1. Term Plan premium 1. Not necessary to pay premium until 2. Necessary to pay premium until court decree court decree 1. One year 1. Address of the agent 1. Has the power to supersede the IRDA by issuing notification. 2. Two years 2. Domicile status 2. Has the power to supersede the IRDA by issuing a bill in parliament

1. Provisio

2. Endorsements

1. Good Returns 1. Insurance companies 1. At the inception of the policy 1. Endowment Plan 1. Regularly with no fixed term 1. Physical 1. Agent 1. Rs. 1, 00,000

2. Regular Income 2. Banks 2. At the time of a claim 2. Convertible Plan 2. Lump Sum with no fixed term 2. Moral 2. Policy holder 2. Rs. 50,000

1. Normal 1. Million Dollar Round Table

2. Fraudulent 2. Major Double Rupees Tag

1. He can not do any thing, because be received the policy bond. 1. Guaranteed Benefit and Nonguaranteed Benefit. 1. Only Death Benefit. 1. High Returns 1. National Saving Certificates. 1. a unit linked policy

2. He can file a complaint against insurance company in court. 2. Interest Benefit and Bonus Benefit. 2. Only Maturity Benefit. 2. Low Returns 2. Equity Linked Saving Schemes. 2. a term life policy

1. when he dies 1. Fixed deposits

2. when he survives the term 2. Unit linked Insurance plans 2. He can take Business Partner insurance

1. He can take Surety insurance

1. Convertible Endowment plan

2. Convertible Term plan

1. Salary saving Life plan 1. Clause.

2. Not a specific plan 2. Assignment.

1. Endowment Plan. 1. Master Policy holder & insurer 1. Plan offer insurance coverage for two person in one policy

2. Money Back Plan. 2. Employer & Employee 2. This plan is ideal for brother & sister.

Ans Option 3 3. Uncertainty of return

Ans Option 4 4. Chances of lapse

Correct option

3. One has chosen Single premium policy and other has chosen regular 4. Both have chosen different premium policy kind of policies. 3.Ethical 4.Ethical & Moral both

3. 5.0% 3. Three persons

4. 7.5% 4. It can be any number

3. 5 lacs

4. 6 lacs

3. Thumb impression of Ashu has to 4. Ashu needs to be medically be taken. examined. 3. Physical hazard. 3. Design, implement and operate an insurance training 3. Post Office 3. Commitment to need 4. Physical peril. 4. Regulate the investment of funds by Life Insurance company 4. Share Market 4. Willingness to pay

3. Pure Endowment plan 3. Claim not admissible 3. Three years 3. Qualification of Agent 3. Has the power to supersede the IRDA by issuing draft

4. Unit Linked Plan 4. Depends on case to case 4. Five years 4. DOB of Agent

4. Can make changes in IRDA law

3. Operative clause

4. Terms and Conditions

3. Safety 3. Asset Management Companies 3. At the time of every renewal premium payment 3. Money Back plan 3. Lump Sum for fixed period of time 3. Occupation 3. Authorized officials of insurer 3. Rs. 25,000

4. Liquidity 4. Brokers 4. All the above occasion 4. Term Plan 4. Regularly for fixed period of time 4. Not applicable 4. Proposer 4. Rs. 60,000

3. Early 3. Major Dollar Round Tag 3. He can send back the policy document to insurance company with in 15 days from policy receiving date. 3. Death Benefit and Maturity Benefit. 3. Only Bonus Benefit. 3. Moderate Returns 3. Principle component of home loan. 3. an endowment policy

4. General. 4. Mean Disposition Residence Time

4. Serve notice to insurance company on policy benefits. 4. Bonus Benefit and Tax Benefit. 4. Only Tax Benefit. 4. Good Returns 4. Premium paid for Health Insurance Plan. 4. a money back policy

3. when he is hospitalized 3. Term Insurance

4. when he loses his job 4. Endowment plans 4. He Can take company insurance

3. He can take Key man Insurance

3. Convertible pure Endowment

4. Convertible money back plan

3. Salary insurance plan 3. Lien.

4. Salary Specific plan 4. Level Premium.

3. Whole Life Plan. 3. Employee & Insurer 3. Each life will be underwritten separately.

4. Term Plan. 4. Creditors & Debtors 4. A joint life policy may cover a partner in business under one policy.

S.No

Chapter 11 Ch 6 14 Ch 6 16 Ch 6 22 Ch 6 26 Ch 6

35 Ch 6

Question If RBI increases the interest rates then what will be the effect on share prices. What is purpose of investing money in debt mutual fund? What is the similarity between Recurring Deposits & cumulative deposits in a bank If a person want to maintain emergency funds the best place is a bank or What is the advantage of converting physical gold assets to gold ETFs. 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

Ans Option 1 1. Shares will be more attractive. 1. Easy access 1. Guarantees 1. Equity market 1. Liquidity

1. Become volatile

39 Ch 6 51 Ch 6

77 Ch 6

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? 1. Rs. 32000 per month In case of life insurance, Insurable interest must exist 1. At inception of policy In which section of Policy document, Information about the location of the insurance Ombudsman had written? 1. Operative clause 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. 1. Denny 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? 1. Actuary 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 1. He has switched his fund A customer surrenders his policy on Feb 2010 As per Agents code of conduct, an agent can get a new policy from this customer from Feb which year 1. 2011 If a policy with premium of Rs 5000 has matured, how much will be deducted when the maturity claim arises 1. Nil

86 Ch 6

95 Ch 6

116 Ch 6

132 Ch 6

155 Ch 6

171 Ch 6

202 Ch 6 213 Ch 6 221 Ch 6 248 Ch 6 249 Ch 6 250 Ch 6 299 Ch 6

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 Under current regulations what is the maximum stake that the Foreign Partner in Insurance Company hold? In what proportion is the cover in a Family Floater Plan shared? Bank interest is accumulated Who will maintain Mutual Fund Schemes? Which is the primary saving need among all saving needs?

1. Endowment plan

1. 48% 1. 25% each 1. Monthly 1. Mutual Fund Management Societies 1. Insurance 1. Insurance

Which of the following ways is easier for a person to take a saving product? 1. through individual agents Mr. Rajgopal has invested some money. He has been informed clearly about the tenure, interest rate and method of payment of interest at the inception of the investment itself. His investment may be in..... 1. Life Insurance Which of the following cant be ducted under section 80 c from taxable income? 1. Pension Funds Who act as an intermediary by offering a trading platform for buying and selling of shares? Chap-6 The Central Bank has recently announced the decrease in interest rates. The prices of bonds are Time deposit account is issued by: 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

301 Ch 6 349 Ch 6

351 Ch 6

1. Bombay Share exchange

401 ch 6 447 Ch 6

1. Likely to increase. 1. Post office

448 Ch 6

1. Corporate Bond

449 Ch 6

450 Ch 6 451 Ch 6

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 Mukesh buys shares at lower price and sold at higher price, the Difference between the two prices is known as: 1. Dividend Income Vinod being an insurance agent can offer assistance to his client Ramesh by: 1. Providing him emergency fund.

Ans Option 2 2. Shares will be less attractive. 2. Fixed income 2. Taxation 2. ULIP 2. More gold in value

Ans Option 3 3. Fixed deposits will be more attractive. 3. Tax Benefits 3. Tenure 3. Debt mutual fund 3. Purity

2. Decrease

3. Increase

2. Rs. 24000 per month 2. Not needed

3. Rs. 40000 per month 3. At the time of claim

2. Attestation

3. Information statement

2. Denny and his wife

3. Denny, his wife and children

2. Underwriter

3. Claim Department

3. He has he has redirected his 2. He has opted for Settlement option past premium.

2. 2012

3. 2013

2. 1%

3. 5%

2. ROP plan

3. Whole life plan

2. 50% 2. 15% each 2. Yearly 2. Mutual Fund Management Systems. 2. Purchasing House 2. Shares 2. through internet

3. 60% 3. 50% each 3. Quarterly 3. Asset Management Companies. 3. Investment. 3. Fixed Deposit in Bank 3. corporate agents

2. Mutual fund 2. Public Provident Fund

3. Shares 3. Employee Gratuity Fund

2. Bombay Stock exchange

3. Stock brokers

2. Likely to decrease. 2.Bank

3. Will fluctuate. 3.Mutual Fund

2. Infrastructure Bond

3. Health Insurance

2.Cumlative deposit

3. Traditional Deposit

2. Captial Appreciation 2. Matching the product with Rameshs financial need.

3. Bonus Share 3. Recommendation of product with highest return.

Ans Option 4 4. Fixed deposits will be less attractive. 4. Liquidity 4. Lock in periods 4. FD 4. More conversion value

Correct option

4. Remain unchanged

4. Rs. 48000 per month 4. Any time during the contract

4. Endorsements

4. Denny, his wife, his children and his parents

4. Accounts

4. Policy was lapsed on the time of maturity

4. 2014

4. 10%

4. Ulip

4. 26% 4. No Proportion 4. Once in 6 months 4. Asset Maintenance Company Limite4. 4. Contingency/ Emergency Fun4. 4. Mutual Funds. 4. call centers

4. Bank deposits 4. Infrastructure Bonds

4. Share brokers

4. No change is likely. 4. Life Insurance co.

4. Interest paid on education loan

4. Fixed Deposit

4. Interest on share 4. Discourse saving in a purposeful and need based manner.

S.No

Chapter

Question 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? Open market option under Annuity policy would extend which of the following benefit? With this type of deposit the bank pays the principal and the total interest at the end of the term. The Premium on all riders put together should not exceed

33 Ch 7 43 Ch 7

52 Ch 7 53 Ch 7

54 Ch 7

How riders will help the customer in life insurance?

55 Ch 7 56 Ch 7

57 Ch 7

66 Ch 7

68 Ch 7 72 Ch 7 78 Ch 7

In Daily hospitalization cash benefit scheme, A lump sum withdrawal allowed as commutation in pension plans is 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? The regulations issued by the IRDA, require that the decision on the proposal must be conveyed to the proposer within According to IRDA guidelines, how long does an insurance company have to complete its investigation of a claim? To ensure that the premiums are paid out of a legitimate source of funds cash is accepted In Cumulative bank deposit the interest that in normally compounded on what basis. 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. 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 Certificate from the village panchayat

83 Ch 7

85 Ch 7 93 Ch 7

101 Ch 7 102 Ch 7

The Authority of COPA is limited to what amount at the district level. In case of a term plan the maximum premium of the accidental rider can be.

124 Ch 7 128 Ch 7

138 Ch 7

Which is correct in relation to Insurance Broker? In which plan weekly premium payments are accepted. An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. Its the impact in his taxation What are the benefits to the policyholder Under Surgical care rider? National insurance academy has the following main functions When should an agent disclose the commission which he will earn from the product which he is going to sell 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 ?

139 Ch 7 142 Ch 7

149 Ch 7

161 Ch 7

164 Ch 7 210 Ch 7

A low persistency ratio for the insurance company means that:

211 Ch 7

If the recommendation of the agent has been rejected by the client, the agent should: To identify suitable products their main features and their tax treatments is the role of: The rider which is given by the Insurance company pays for the treatment costs in the event of hospitalization of the insured person is called Mr. X is married with wife, 2 children and aged parents Health premium is allowed for

214 Ch 7

216 Ch 7 218 Ch 7

223 Ch 7

Hospitalization rider has the following benefit:

252 Ch 7

253 Ch 7

Mr. Suresh purchase one pension plan and accumulated Rs. 9,00,000 amount in his pension fund. He would like to utilize commutation benefit before taking pension. What is amount Mr. Suresh can withdraw as commutation? Customer has to pay the amount in regular intervals to create purchase price or Pension Fund. We call this phase as.. Some Health Plans will give coverage for family members also. We will call these plans as.. 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?

254 Ch 7

255 Ch 7

302 Ch 7

In 'Daily hospitalization cash benefit plan'......

303 Ch 7

304 Ch 7

305 Ch 7

Which of the following is not a feature of WOP rider? Mr. Ramakant is 35 years old. He has bought retirement plan for 20 years. This type of pension plan is known as.................. Mr. Ranga has taken Critical Illness Rider. In which of the following scenarios the insurance company will pay him...... The concept of Risk diversification is applicable in which of the following instrument ? Ajay bought a share for Rs.110 and he sold when it was Rs.630.What had happened to his share? Which one of the following cannot be covered under Critical illness rider? 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? Mr.Rohith wants to have a health insurance plan for his family and for his aged parents. which will be the best plan for him ? In what situation Waiting Period is applicable in a health insurance?

347 Ch 7

348 Ch 7 352 Ch 7

353 Ch 7

354 Ch 7 355 Ch 7

377 ch 7 396 ch 7 397 ch 7

399 ch 7

E-sales refers to sales of insurance products through To avail the income tax benefit at investment stage, premium should be maximum The savings needs of a particular individual is majorly determined by While calculating the expected returns from investments and savings, an individual should make provisions for Rohit is working as sales manager with an FMCG company. His job requires him to travel across states. He is planning of covering his additional risk involved while travelling and a savings plan. What suggestion would you give him as an agent? The general need for purchasing a health insurance plan at an early age results from which of the following factors? 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 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? Due to some medical problem Neeraj got hospitalized and insurance Company paid him a fixed amount on daily basis, what kind of health Policy he bought it? Which of the following is not featured and benefit of rider? Gaurav bought an endowment plan for 20 year of 10 lac SA with ADB Rider, died in road accident after 10th year how much money claimant would be payable: Kajal is investing for the purpose of retirement at the time of vesting Age before receiving the regular annuity she has option to withdraw/commute Upto:

402 ch 7

403 ch 7

404 ch 7

405 ch 7

452 Ch 7 453 Ch 7

454 Ch 7

455 Ch 7

Ans Option 1

Ans Option 2

1. Life Long Annuity 1. Ensure Better annuity rate

2. Open Market 2. Increase in the range

1. Traditional deposits

2. Recurring deposits 2. 20% of the premium on the base 1. 10% of the premium on the base policy policy 1. allows policyholders to customize their insurance cover with additional benefits 2. rider is like a clause 2. The insurance company may pay an 1. The daily amount paid is fixed and will additional amount on a daily basis if never be more or less than the cost of the insured is admitted to the actual treatment. Intensive Care Unit (ICU). 1. 1/3rd of the accumulation fund 2. 1/4th of the accumulation fund

1. paid up to 75 Yrs

2. annuity will be continued for next 5 Years

1. 15 days of receiving the proposal

2. 20 days of receiving the proposal

1. 30 days 1. Up to 50000 1. Monthly

2. 90 days 2. Up to 99990 2. Quarterly

1. 2013

2. 2015

1. Switching 1. Will be considered as standard age proof

2. Doing a financial planning 2. Will be considered as non standard age proof

1. 10,00,000. 1. 100% of basic premium.

2. 20,00,000. 2. 50% of basic premium.

1. Insurance broker is represents 2. Insurance broker is represents insurance buyer and remunerated by the insurance buyer and remunerated by insurance company the Client 1. Health Insurance 2. Group Insurance

1. He will get tax benefit up to 5000

2. He will get tax benefit up to 25%

1. Number of days admitted in hospital & 2. Number of days admitted in surgery expenses in full hospital & surgery expenses in partial 1. Calculating premium 2. Interact with the government

1. When the customer asks him

2. After the fact finding process

1. Endowment

2. Term

1. The customers are satisfied with the products 1. Churning

2. The company is acquiring more business and new customers 2. Proposing

1. Ask the client to fill the proposal form

2. Find out the reasons for refusal

1. Agent

2. Insured

1. Critical Illness Rider 1. X only 1. Person receives fixed amt daily for no of days in hospital

2. Hospitalization Care Rider 2. X with wife 2. Person receives an amount equal to the expense.

1. Rs. 3, 00,000/-

2. Rs. 4, 50,000/-

1. Collection Phase.

2. Accumulation Phase

1. Family Health Insurance Plans

2. Total Protection Policies.

1. Taking Life Insurance plan with Critical 2. Taking Health Plan, Insurance Plan Illness Rider. separately. 2. Some percentage of the expense will be reimbursed by the insurance company 2. This rider is ideal for helping to 1. The rider waives future premiums in prevent a policy lapsing due to nonthe event of the disability or death of the payment of premiums due to death or policy holder. disability 1. all the expense incurred will be reimbursed by the insurance company

1. immediate annuity 1. When Mr. Ranga dies due to critical illness

2. life annuity 2. When Mr. Ranga is diagnosed a critical illness

1. Mutual Fund

2. Risk Diversified Insurance

1. Capital Appreciation 1. Blindness

2. Capital Profit 2. Paraplegia

1. Guaranteed period annuity

2. Life annuity

1. Group Family health insurance plan 1. Immediate care

2. Family health insurance plan 2. Medical examinations

1. Insurance brokers. 1. 10% of S1. 1. Amount of disposable income.

2. Bancassurance. 2. 20% of SA. 2. Current assets.

1. Taxation only.

2. Inflation only.

1. To purchase an accidental rider with a savings insurance plan.

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

1. The premium decreases with increasing 2. The premium remains constant age. with increasing age.

1. Equity.

2. Bank fixed deposits.

1. 1/5th of accumulated amount.

2. 1/3rd of accumulated amount.

1. Group health insurance 1. Providing additional cover

2.Family floater Insurance Plan 2. Maturity benefit

1.10 lac

2. 20 lac

1. 2/3rd of Accumulated Fund

2.1/2th of Accumulated Fund

Ans Option 3

Ans Option 4

Correct option

3. Reinsuring Annuity 3. Increase in return

4. deferred Annuity 4. Switch of Funds

3. Cumulative deposits 3. 30% of the premium on the base policy

4. Term Deposits 4. 40% of the premium on the base policy

3. Operative clause.

4. Rider is like Preamble.

3. The insurance company will pay for doctor consultation fees incurred prior to hospitalization 3. 1/2nd of the accumulation fund

4. Only surgery expenses are included in daily hospitalization benefit 4. Full withdrawal is allowed

3. till he die 3. 25 days of receiving the proposal

4. not remembered 4. 30 days of receiving the proposal

3. 120 days 3. Up to 100000 3. Half Yearly

4. 180 days 4. Without any limit 4. Annually

3. 2017

4. 2020

3. Churning 3. Will not be accepted

4. Fact Finding 4. Will be verified first

3. 50,00,000

4. 1,00,00,000.

3. 30% of basic premium. 4. 35% of basic premium. 3.Insurance Broker gets money from both Insurance company as well as from Client fo selling Insurance 4. None are correct 3. Micro Insurance 4. Macro Insurance

3. He will get a reduction in tax 4. His investment would be slab deducted from taxable income 3. Treatment cost of surgery subject to terms & conditions 3. Training 4. Lump sum amount what he has incurred 4. Mortality assumptions 4. After the product is recommended to the client

3. After quantifying the need

3. Money Back 3. A large numbers of policies have lapsed / surrendered resulting in loss of profit 3. Underwriting 3. Must try to convince the client to follow his recommendation

4. Whole of Life

4. The company will not declare bonus 4. Switching 4. Must try to force the client to follow his recommendation

3. Policy Holder

4. Insured person

3. Accidental Benefit Rider 3. X with wife and kids 3. Person receives a fixed amount of 1000 daily.

4. Surgical Care Rider 4. X with all 4. Person receives benefit only if he is hospitalized for 3 days minimum.

3. Rs. 90,000/-

4. Rs, 4, 85, 468/-

3. Pension Phase. 3. Family Floater Health Insurance Plans.

4. Primary Phase.

4. Family Rakshak Health Plans.

3. Taking Medi-claim plan with 4. Taking Hospital Benefit Plan Life Insurance. with Endowment Plan. 3. a fixed amount on daily basis 4. The insurance company will is paid by the insurance pay all the expense only after company consulting hospital authority. 3. The main strength of WOP is the payment of full sum 4. WOP rider can be offered assured. with all plans

3. deferred annuity

4. joint life annuity

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

3. Shares

4. Risk Sharing insurance

3. Capital Benefit 3. Coma

4. Capital Variation 4. Brain Surgery

3. Deferred Annuity 3. Family floater health insurance plan 3. Pre-existing illness

4. Immediate annuity

4. Family Health benefit plan 4. Permanent exclusions

3. Individual agents. 3. 30% of SA. 3. Current liabilities.

4. Internet. 4. 40% of SA. 4. Duration of investment.

3. Taxation & inflation both.

4. No provision is require4.

3. To save through fixed deposits in bank. 4. To purchase a medical plan. 3. The premium may increase or decrease with the increasing 4. The premium increases with age. increasing age.

3. Health insurance plan.

4. Savings insurance plan.

3. 2/5th of accumulated amount.

4. 2/3rd of accumulated amount.

3. Individual health insurance plan 3. Nominal cost & flexibility

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

3.30 lac

4.5 lac

3.1/3rd of Accumulated Fund

4.1/4th of Accumulated Fund

S.No

Chapter

Question In the context of financial planning, how is the difference between real needs and perceived needs best described? If a person is concentrating more on health plan and retirement plan then at which stage of life is he in. 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? 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? Mrs. Sheela received some amount out of her husbands death. In such a situation what will be her prime focus? Where one can approach in case of dispute? Health insurance policy holder takes treatment in a hospital which doesnt have cashless facility. How the policy holder will get benefited What is the ceiling of tax exemption under 80 c. What is the limit of tax benefit that can be availed of under Section 80C.? Mr. Raj is married and having 2 children. Which plan can he take that can cover his whole family? Under section 80C the maximum tax deduction that can be gained for premium paid is _______ in a financial year. A Professional insurance market carries.. Perceived needs are those. Need analysis involves identifying The disposable income means...... Mr. Shanth is in his early 20s and has just started earning. His risk appetite is expected to be.....

2 Ch 8

3 Ch 8

6 Ch 8

9 Ch 8

17 Ch 8 62 Ch 8

140 Ch 8 179 Ch 8 180 Ch 8

182 Ch 8

192 Ch 8 226 Ch 8 258 Ch 8 259 Ch 8 297 Ch 8

298 Ch 8

306 Ch 8

307 Ch 8

308 Ch 8 309 Ch 8 327 Ch 8 356 Ch 8 376 Ch 8

The younger the age of an individual..............their liabilities will be. Mr. Ramachandra's son Mr. Bharat has just employed as a software engineer, daughter Anusha has got married. Now Mr. Ramachandra is free from his burden. So Mr. Ramachandra is now in the ...................stage. Mr. Vinodh has lot of inconvenience to reach office every day. So he wants to buy an expensive car when he will have sufficient fund. Here Mr. Vinodh's need is............. Fact finding enables the insurance advisor to identify the............. The timing of death is uncertain, so when one should take life insurance? Which are the two primary needs of any customer in any point of life? The concept of need based selling involves For his investment need, Ravi has parked funds in equity. The returns from this form of investment can be categorized as 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? As an adviser why is it essential for you to carry out the financial planning exercise with the prospective clients?

398 Ch 8

400 Ch 8

407 Ch 8

456 Ch 8 457 Ch 8

What do you mean by Double Income Family? In which of the following case there is no defined retirement age?

458 Ch 8

Which one of the following is true?

Ans Option 1

1. Real needs are financial needs and perceived needs are non-financial needs.

Ans Option 2 2. Real needs are actual needs and perceived needs are based on a clients thoughts and desires.

1. Young unmarried

2. Young married

1. Term Insurance Plan

2. Endowment plan

1. Marriage.

2. Savings.

1. Savings 1. IRDA

2. Insurance 2. Consumer Forum

1. Need to spend and Get claim from the insurer 1. 1 lakh 1. 75K

2. Need to add that hospital as TPA 2. 1.5 lakhs 2. 1L

1. Health Insurance

2. Family floater

1. Rs. 75,000 1. Need Based Selling

2. Rs. 1, 10,000 2. Product Based Selling 2. Imagined to be important by 1. Short term needs. Advisor. 1. Financial provision to meet predictable 2. Capacity to pay the premiums and unpredictable needs. in future. 2. the amount that can be paid 1. the surplus amount that can be invested towards one's EMIs

1. high

2. low

1. the lower

2. the higher

1. Pre-retirement stage

2. Post retirement stage

1. Real need 1. clients financial need 1. At the time of uncertainty 1. Investment and retirement 1. Selling what company wish to sell.

2. Perceived need 2. clients personal problems 2. At an early age 2. Investment and Protection 2. Selling what adviser wish to sell.

1. High Risk.

2. Low Risk.

1. Retirement need.

2. Tax planning need. 2. Individuals have same financial 1. Individuals understand their real needs needs at different stages of the and can prioritize them. life cycle. 2. When both the life partners 1. When a person of the family is involved in are earning members of the double businesses or jobs. family. 1. Public sector employees 1. Every individuals income and expenditure pattern is same. 2. Private sector employees 2. Every individuals income and expenditure pattern is different.

Ans Option 3

Ans Option 4

Correct option

3. Real needs are identified by the 4. Real needs are needs which satisfy an insurance agent and perceived objective and perceived needs are needs needs are identified by the client. which do not satisfy an objective.

3. Young married with Kids

4. Pre retirement

3. Return of premium plan

4. Pension plan

3. Education.

4. Protection.

3. Investment management 3. Distric Forum

4. Planning for pension 4. National Forum

3. Need not to claim 3. 2 lakhs 3. 1.5 L

4. Need to switch to the another insurer 4. 3 lakhs 4. 50K

3. Life Insurance

4. Retirement

3. Rs. 1, 20,000 3. Commission Based Selling 3. Imagined to be important by client. 3. Existing insurance plans. 3. the annual bonus amount

4. Rs. 1, 00,000 4. Company Based Selling. 4. Long term needs. 4. Family and Employment details. 4. the sum of one's all investment

3. normal

4. Neutral.

3. the smarter

4. the superior

3. Married with older children stage

4. Employment stage

3. Imaginary need 3. clients hereditary diseases 3. Anytime in life 3. Investment and savings 3. Selling what customer requirement is.

4. Important need 4. Clients social background. 4. At the time when Advisor takes the decision 4. Investment and life needs 4. Selling what IDRA wants company to sell.

3. Moderate Risk.

4. No Risk.

3. Financial security need. 3. Individuals do not understands their real needs and cannot prioritize them. 3. When the income of a family is just the double of income of another family. 3. Professionals & Businessmen 3. An individuals income and expenditure has no relation.

4. Asset building nee4. 4. Individuals real and perceived needs are same. 4. When the members of a family do not work at all. 4. All of the above 4. An individual should not keep in mind his income while planning his expenditure.

S.No

Chapter 13 Ch 9

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

Ans Option 1 1. Quantify clients need

23 Ch 9

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 1. Do the fact finding exercise agent should. again 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? What should an agent do in order to understand the mental state of client in respect to his investments in saving products Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason Which is the best option to manage risk?

44 Ch 9

1. Money Back

45 Ch 9

1. Fact finding

118 Ch 9 183 Ch 9 196 Ch 9

1. Administrative charge 1. Retain 1. Yes, as Naveen and Ram are of same age. 1. A Family Floater Plan is the same as a Individual Plan

212 Ch 9

256 Ch 9 257 Ch 9

Which of the following is true regarding Family Floater Health Insurance Plan? Mr. Govind, Advisor with ABC life insurance company find out one client is seeking solutions for health care and inheritance planning. Which main life stage he most likely to fall into? Which type of questioning is very useful to gather information from clients?

1. Young Unmarried. 1. Closed Ended Questions

310 Ch 9 328 Ch 9

358 Ch 9

During the recommendation stage the advisor needs 1. recommend the products that to...... best meet the client's needs 1. The life of the person paying Insurance Protects which of the following? compensation In which of the following an agent will collect the customers Personal data, professional data and financial data 1. Fact Finding Sheet Mr.Mohith, an agent was explaining to his customer the guaranteed benefits of the product. Which one of the following documents he would have used to explain the same? 1. Fact Finding document

359 Ch 9

360 Ch 9

Mr.Harsha an agent wants do a thorough Fact Finding for his client to Mr.Kishan who is a business man. Which of the following information will be helpful to 1. Clients Profits and Withdrawals know about the earnings and Expense of Kishan? from business During the fact finding session as an agent you should 1. Prioritize, Identify & Quantify follow which one of the following process? Needs. 1. Gather Clients Information The objective of Fact Finding is to only. Objectives of fact-finding do not includeWhich one of the following documents distinguishes between Guaranteed and non-guaranteed benefits? 1. Identify needs

406 ch 9 409 ch 9 459 Ch 9

460 Ch 9

1. KYC documents

Ans Option 2 2. Priorities Clients Need

Ans Option 3 3. Recommending Product

Ans Option 4 4. Fill up the proposal form

2. Insist with the client to take a term plan

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

4. Give the lead to another agent

2. Term Plan 2. Consulting the clients parents

3. Endowment Plan

4. ULIP

3. Consulting the family of the client 4. Reviewing his existing investments

2. Inflation 2. Transfer 2. No, customers needs are different 2. Only self and spouse can be covered in this plan

3. Interest rate 3. Avoid 3. Yes, as both are teachers 3. Any number of people may be covered in this plan.

4. Market Risk 4. None 4. No, as there is an age difference. 4. The insurance cover is shared amongst the family members in no fixed Proportion.

2. Young married with children. 2. Open Ended Questions.

3. Retirement. 3. Interrogative Questions.

4. Children. 4. Clarification Questions.

2. recommend to wait some 3. recommend the new product the 4. Recommend to take his own time days to invest company has recently launched to take a decision. 2. The risk retained person 's family 3. The financial goal of the insured 4. The life of the nominee

2. Advisor Confidential Sheet 3. Customer Data sheet

4. Personal and financial data sheet

2. B.KYC document

3. C. Benefit illustration document

4. D. Client benefit document

2. Clients Expense statement 3. Clients business details 2. Identify, Quantify & Prioritize Needs. 2. Identify only the clients needs. 2. Gathering client data 2. Benefit illustration documents 3. Quantify, Identify & Prioritize Needs. 3. To provide solution of companys choice. 3. Provide for anticipated changes

4. Clients business records 4. Prioritize, Quantify & Identify Needs. 4. Both identify clients needs & gather information. 4.Surrendering the existing policies for selling new one

3. Fact-finding sheet

4. Financial details

Correct option

S.No

Chapter

5 Ch 10

152 Ch 10

Question If the client does not wish to proceed with the recommendations right at the moment the agent should The consequences of these risks which will affect specific individuals or local communities in nature is called as According to Insurance Brokers Association of India, what is the most appropriate relationship between Insurer and Broker? What is the stipulated time frame within which an insurer is supposed to respond after receiving any communication from its policyholders? Naresh is married and his daughter Sneha is 3 years old. Which plan can he take? What is the factor which has influence on persistency? Agent who is a licensed intermediary is actually is ? Which one of the following factor does not help in the Persistency ?

Ans Option 1 1. Insist on taking the product right away

1. Pure risk 1. Insurance broker represent the client and the insurer remunerate the broker

163 Ch 10

166 Ch 10

1. 24 hours

194 Ch 10 264 Ch 10 333 Ch 10 362 Ch 10

1. Term & Children Plan 1. Role of Agent 1. A legal person to act on behalf of the re-insurer 1. Regular reminders about the premium to the customer

408 ch 10

After undertaking financial planning exercise, the prospective client said that he does not have funds for investments. To resolve this query, which skill of an agent would be tested? 1. Objection handling skills. When client declines the recommendation by the insurance adviser even after resolving the concerns, the adviser should What key benefit high persistency ratios have on insurance adviser?

412 ch 10 414 ch 10 424 ch 10

1. Persuade the client to purchase the policy. 1. High renewal income. 1. Ruining the long term reputation of company.

461 Ch 10 462 Ch 10

463 Ch 10

Under which one of the following acts the maximum remuneration that can be given to insurance agents described? Which one of the following is not a benefit of persistency? Satish as an insurance advisor while recommending to his client Ramesh is not suitable policies

1. Income Tax Act 1. Helps the client in achieving goals 1. Satish should check the Ramesh s commitment to the needs

464 Ch 10

Why a building long term relationship with clients is necessary?

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

Ans Option 2

Ans Option 3

2. Should ask for the reason for not 3. Should ask for a future date from the going with the recommendation client

2. Financial risk 2. The client represent the broker and the insurer remunerate the broker

3. Particular risk

3. Insurer represent both client and broker remuneration

2. 1 day

3. 10 days

2. Annuity Plan 2. Product Design. 2. B.A legal person to act on behalf of the insurer 2. Flexibility of Premium payment to the customer

3. Whole Life Plan 3. Policy Servicing 3. C.A legal person to act on behalf of the contract 3. Dispatching Discharge voucher to the customer

2. Listening skills. 2. Should ask for reference who might be interested in financial planning. 2. Less renewal income. 2. Opportunity of new business for adviser.

3. Communication skills.

3. Should never approach the client ever again. 3. Fewer client bases. 3. Bad reputation of the individual adviser.

2. Indian Contract Act

3. Insurance Act 1938

2. Reduction in costs 3. Increased client satisfaction 2. Satish should outline the reasons for recommendation for a particular 3. Satish should check the acceptance policy or rejection of the recommendation.

2. Reviewing financial needs and plans are necessary with changes

3. Agent has the option to recommending highest commission at any time.

Ans Option 4

Correct option

4. Should review once again

4. Physical hazard

4. Broker only service the client

4. 30 days

4. Health Plan 4. All of the above. 4. D. An authorized agent to act on behalf of the legal company 4. Continuous servicing of the policy

1 4

4. Client information gathering skills.

4. Should do nothing. 4. Unsatisfied clients. 4. Financial burden on the couple.

1 1

4. IRDA Act 1999 4. Decreased revenues 4. Should advised him to surrender all the polices which are not buy from satish.

3 4

4. Introduction of a new insurance product or a change in a clients Circumstance

S.No

Chapter

7 Ch 11

8 Ch 11 19 Ch 11

Question A claim was paid in a policy and it was advertised in the newspaper also. This indicates that the policy was. An indemnity bond was signed in a policy when the claim was paid. This indicates that the policy was. Which of the following falls under voidable contract?

Ans Option 1

1. It was assigned.

1. It was lost. 1. Misrepresentation

29 Ch 11 67 Ch 11

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 1. Fraudulent claim Family floater health Insurance plan covers Who is a regulator, supervisor and monetary authority of the financial system in India? An individual is said to be competent to enter into a contract if they are For tax Saving Someone wants to fixed deposit in bank. What duration is required for it? Pure risk is classified under 1. All members of a Family

70 Ch 11 74 Ch 11

1. IRDA 1. 18 year old

121 Ch 11 144 Ch 11

1. 3 years 1. Economic risk

154 Ch 11

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 .. 1. Consumer Forum 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 1. Less than 10000 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 ______ 1. Transfer What is meant by a claim under insurance 1. A demand to fulfill the policy? policyholders obligations.

173 Ch 11

195 Ch 11 265 Ch 11

266 Ch 11

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

1. Client

267 Ch 11 268 Ch 11

Which is the right statement regarding claim 1. The insurance company makes enquiry? enquire only on death claims. A missing person will be presumed to be dead only after. 1. Three years 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 Detailed Investigation will be triggered in case of...... 1. Maturity claims In insurance, if a person is not heard for .......years his is presumed to be dead.

315 Ch 11 316 Ch 11

317 Ch 11

1. 5 years

318 Ch 11

1. the company will wait until the claimant comes to office to demand In the process of settling maturity claims.... the claim 1. claim of critical illness and 10 lakh from term policy will be settled Mr. sham had taken a term plan in 2008 . He died of cancer in 20 Investigation about his death revealed that he was deducted cancer in 200What will happen to his death claim? 1. Claim will be rejected Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He also has an ADB rider worth Rs. 4 lakhs. Unfortunately Baskar died in a car accident. How much will be the death claim settlement? Mr.Sampath has taken a policy on January 10th 2006 for a term of 12 years. Due to financial instability he discontinued to pay the premium from 201 He died on August 13th 201 What will happen to his death claim ? The agents duties and responsibilities ends Insurer will not pay the claim unless

337 Ch 11

365 Ch 11

367 Ch 11

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

368 Ch 11 411 ch 11 415 ch 11

1. Eligible for claim as the premium was paid from 2006 to Dec 2010. 1. When the clients policy is issued. 1. The policyholder makes a demand.

416 ch 11

417 ch 11

465 Ch 11

Aman has taken a term plan for 20 years. In the 3rd year he suffered financial crisis due to which he was unable to pay premium within grace period and died after 1 month. The nominee files a claim and is rejected because When a policy is lost, insurance company take utmost care while settling maturity claims because Pranab is not able to pay premium for continue his policy due to some Financial problem, so he rather than surrendering the policy, what Option he has to convert .?

1. The policy was not in force.

1. The claim may not be genuine.

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

466 Ch 11

Ajay has bought an endowment with profit plan for 20 year .if he took a Loan after 5th of commencement of policy and died before 2 year of Maturity .what would be payable on maturity? 1. only Sum assured 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. Which one of the following report is not considered in case of Pankaj Bought a plan in 2009 & died in road accident in 2011 :

467 Ch 11

1. Accidental death benefit (ADB)

468 Ch 11

1. Policy first information report.

Ans Option 2

Ans Option 3

2. It was paid up.

3. It was lost.

2. It was paid up. 2. Lack of insurable interest

3. It was lapsed. 3. Fraud

2. Indisputability clause 2. Husband and Wife only

3. Redressal procedure 3. Parents only

2. SEBI 2. 21 year old

3. RBI 3. 23 year old

2. 5 years 2. Speculative risk

3. 7 years 3. Financial risk

2. COPA

3. Sebi

2. More than 10000

3. Less than 20000

2. Control 3. Retaining 2. A demand to fulfill the insurers 3. Any demand made by the obligations. policyholder on the insurer.

2. IRDA

3. Advisor

2. The insurance company makes 3. Enquiry will be done on both enquire on maturity claims only. Maturity and Death Claims. 2. Five years. 3. Seven years.

2. Early death claim 2. All death claims

3. Abnormal death claim 3. Early death claims

2. 6 years 2. the process is initiated by the company well in advance of the maturity date 2. claim of hospital charge Rs 20,000 and 1 lakh for death will be settled

3. 7 years

3. it is the responsibility of the claimant to approach the company 3. Claim will not be settled as he died due to cancer

2. Claim will be settled as Cancer was not deducted in 2008

3. Claim will be settled as he died in 2010

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

3. Total 11 lakhs will be paid

2. Not eligible for Claim settlement 2. When the clients needs have been established.

3. Claim will be settled after deducting the unpaid premium 3. When the nominee has changed.

2. The nominee makes a demand. 3. The event insured against happens.

2. This condition is excluded in the policy. 3. The claim is fraudulent.

2. The policy may be pledged.

3. The facts were misrepresented.

3. Deduct the underpaid premium from 2.Return of Premium on maturity Sum assured and payable on Maturity

2.Sum Assured + Bonus

3. Sum assured plus vested bonus minus any outstanding loan/premium & Interest.

2. Critical illness (CI)

3. Hospital Care (HC)

2. Advisor confidential report

3. Post Mortem Report.

Ans Option 4

Correct option

4. It was surrendered.

4. It was surrendered. 4. None of the above

4. Pending decision from Ombudsman 4. Children Only

4. SBI 4. 25 year old

4. 2 years 4. Insurable risk

4. Life Insurance Council

4. More than 20000

4. Avoidance 4. All of the above.

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

4. Unnatural death claim 4. Rider benefit claims.

4. 8 years 4. If the claimant does not come within a month the entire maturity amount will be forfeited. 4. Claim will be settled as per the instructions of underwriter

4. Claim will be delayed

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

4. Claim will be settled after the deduction of unpaid loan amount 4. When the maturity/claim is settle4. 4. The insurer completes the enquiry.

4. The claim is an early claim.

4. There is no nomination.

4. Policy was subject to lien.

4. Paid up value only.

4. Term Rider.

4.Coroners Report

S.No

Chapter 71 Ch 12

97 Ch 12 185 Ch 12 187 Ch 12 188 Ch 12 220 Ch 12 260 Ch 12 261 Ch 12 269 Ch 12

Question Indisputability clause can be enforced by the insurance company during the Ashish is looking at different plans of insurance for protection at the lowest premium. Which is the best plan for him? What is the major reason for conducting fact finding exercise? The guidelines for annual assumed growth rate are given by Pricing element is done by As per AML regulation, it allows cash premium not over than Which is the not part of KYC norms? Remuneration to Agents includes Which is the 2nd stage in Money Laundering?

Ans Option 1 1. First five years of policy

1. Term plan 1. Need analysis 1. Life Insurance Council 1. IRDA 1. Rs.20000 1. Photographs 1. First Year Commission 1. Layering

311 Ch 12 314 Ch 12 361 Ch 12

1. need not disclose the amount of As per the IRDA circular an insurance agent....... commission In the case of agent's death, the commission payable will be paid to......... 1. his legal heirs Which one of the section deals with the licensing of an agent? 1. Section 42 of the insurance act 1938 Mr.Varun taken up his agency in July 5th 200 His lost his IRDA license while travelling. His agency has also expired. What is the solution for Mr.Varun ? Under Married Womens Property Act, 1874 a policyholder is

371 Ch 12 419 ch 12

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

420 ch 12

469 Ch 12

Who has the authority in insurance company to issue/cancel the agents license 1. Insurance Company. Married Womans Property Act 1874 provides that a life insurance Policy that has been taken out by: 1. Married Woman

Ans Option 2 2. First Two years of policy

Ans Option 3 3. Claim

Ans Option 4 4. Inception of the policy

Correct option 2

2. Endowment plan 2. Understand about company 2. IRDA 2. Insurance Company 2. Rs.25000 2. Proof of identity 2. Renewal Commission. 2. Placement 2. need to disclose the amount of commission 2. to his nominee 2. Section 42 of the insurance act 1936 2. Need to complete 50 hours of practical training and paying Rs.100 for the issuance of duplicate license 2. The beneficiaries.

3. Whole life plan 3. Introduction of agent 3. Actuaries 3. Life Insurance Council 3. Rs.5000 3. Proof of address. 3. Both of the above. 3. Integration

4. Money back plan. 4. Understanding the Customer 4. Underwriter 4. CII 4. Rs.50000 4. Lapsed policy details. 4. Salary and Reimbursement. 4. Amalgamation.

1 1 2 2 4 4 3

3. need to disclose the amount of commission on demand 4. Should not disclose. 4. Paid in lump sum to the 3. will stop automatically survivors. 3. License section of Insurance 4. License section of act 1938 insurance agent act 1938 3. Need to complete 25 hours of practical training and paying Rs.100 for the issuance of duplicate license 3. The trustee. 4. Need to complete 50 hours of IRDA training and paying Rs.50 for the issuance of duplicate license 4. The administrator.

3 2 4

2. Designated Person.

3. Branch Operations Team.

4. Actuary.

2. Married Man

3. Married Son

4. Married Daughter

Correct option

S.No

Chapter

69 Ch 13

73 Ch 13 82 Ch 13 114 Ch 13

Question How the Daily hospitalization cash benefit will provide benefits to policyholder who is hospitalized? If there is no claim in a year than what will be the benefit to the customer as NO CLAIM BONUS Ombudsman passes an award within which time Which body has created a call center for logging a complaint

Ans Option 1

1. Entire charges are refunded.

1. Discount in next year premium 1. 1 month 1. Life Insurance Council

129 Ch 13

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 1. Needs to take experts ADB rider. What is your suggestion? suggestion Insurance companies are required to honor the awards passed by the Insurance Ombudsman within how may days

136 Ch 13

1. 10 days

141 Ch 13

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. 1. Childs education 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? _____ controls monetary system in India What is the maximum stake can foreign company has in one insurance company in India? Who controls and regulate the rates, advantages, terms and conditions that may be offered by insurers in the respect of general insurance business.

145 Ch 13 222 Ch 13

1. 10 days 1. RBI

270 Ch 13

1. 74%

271 Ch 13

1. Insurance Regulatory and Development Authority.

313 Ch 13 319 Ch 13

According to IRDA regulations the maximum percentage of first year commission to be paid to an insurance advisor is............. 1. 30 % Issuance of a license to a person has been 1. Section 43 of the Insurance Act stipulated in................Act 1939

320 Ch 13 321 Ch 13 350 Ch 13 369 Ch 13

The foreign direct Investment (FDI) in Indian Insurance Industry is allowed up to..... The Insurance Institute of India (III) was formed in..... Which official body decides to increase the interest rates? Which of the following team represents the members of GBIC ? Which council among the following focus on creating a positive image of the insurance industry and would also like to enhance the Consumers confidence on the same ? Mrs. Hansa an agent, has planned to sell maximum products within a short span of time by giving maximum rebates to the customer to complete the contest target of the company. Mr.Raghav is an expert in fact finding .Mr.Raghav helps his brother in his job by sharing the information of his clients after the fact finding he does to procure insurance. What will be the outcome ? Which organization was formed with purpose to promote insurance education and training in India? The face of the life Insurance industry in India is ..? At what percentage FDI allowed in life Insurance sector by Govt.

1. 50% 1. 1956 1. Central bank of India 1. Representatives from all insurance companies

370 Ch 13

1. Life insurance council

374 Ch 13

1. It will benefit both the company and the customer

375 Ch 13

1. Raghav will be promoted to the next level

421 ch 13 470 Ch 13 471 Ch 13

1. Institute of Actuaries of Indi1. 1. Life Insurance Council 0.0126

Ans Option 2

Ans Option 3 Ans Option 4 3. A fixed amount on a daily basis 2. Entire charges less bed charges is paid irrespective of the actual will be paid cost of treatment 4. Only Hospital bill will be paid 2. Increase in Sum Assured next year 2. 2 months 2. IRDA

3. Loans facility 3. 3 months 3. Insurance Association

4. No benefit 4. 6 months 4. Insurance Institute of India

2. Equal to base cover

3. Any Amount he can take if he is ready to pay premium 4. 50% of SA max.

2. 15 days

3. 20 days

4. 25 days

2. Marriage

3. Emergency funds

4. Income protection

2. 20days 2. IRDA

3. 30 days 3. SEBI

4. 60 days 4. Constitution

2. 26%

3. 24%

4. 76%

2. Reserve Bank of India.

3. Tariff Advisory Committee.

4. Insurance Institute of India.

2. 35% 3. 40% 4. 45% 2. Section 42 of the Insurance Act 3. Section 12 of the Insurance Act 1938 1922 4. Section 34 of the Insurance Act 1932

2. 25% 2. 1999 2. Reserve bank of India 2. Representatives from all government bodies

3. 26% 3. 1955 3. Reserve bank of country 3. Representatives from IRDA

4. 27% 4. 1947 4. Central bank of country 4. Representatives from Insurance institute of India

2. Consumer insurance council

3. National Insurance council

4. General insurance council

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

4. Agent will be qualified for the contest

2. Raghav will be terminated

3. Raghav License will be cancelled

4. Customer will complain to Ombudsman

2. National Insurance Academy. 2. Life Insurance Corporation 0.0224

3. Chartered Insurance Institute. 3. Insurance Regulatory Development Authority 0.0374

4. Insurance Institute of India. 4.Insurance Institute of India 0.0449

Correct option

1 1 2

3 1

2 4

S.No

Chapter

Question If a policy holder buys a policy from the advisor and lodges a complaint, it should be treated as : Group Insurance can be taken in following relationship Maximum time for investigation in disputed claim? The Ombudsmans powers are restricted to insurance contracts of value not exceeding? What amount of insurable interest does an individual have in his own life? 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 De- tarrification is a process by which pricing of Insurance As per Regulation for protection of Policyholders interest 2002 (IRDA), Which insurer will have a grievance redressal System What will be lien amount in 3rd year as compared to the 4th year of lien. Pooling of insurance applies to What is the disadvantage to the insurer in case the persistency falls 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? AML Program of every insurer to include _______________, apart from Procedure, Training and audit. What is the minimum Sum Assured allowed for Micro Insurance? Where would you have to go if you wanted to buy a Kisan Vikas Patra? How many ombudsmen offices located in India? What the name of department that is established by IRDA to deal with customer complaints?

34 Ch 14 61 Ch 14 75 Ch 14 76 Ch 14 81 Ch 14

100 Ch 14

112 Ch 14

113 Ch 14 126 Ch 14 135 Ch 14 153 Ch 14

165 Ch 14

189 Ch 14 199 Ch 14 204 Ch 14 272 Ch 14

273 Ch 14

322 Ch 14

The insurance ombudsman has been appointed to protect the interest of....... The charges were not fully disclosed to the customers" is a common complaint against..... Which regulations take care of the settlement of claims ? If any consumer is dissatisfied with the customer care cell of any insurance company to whom they can escalate their grievances. Which is the Regulation that insists that all the insurance companies should provide the information about the insurance ombudsman of that region while sending the policy documents. A client demands the information on the current status of a policy indicating accrued bonus. The insurer should provide communication within To ensure that the customers complaints are handled effectively, IRDA has established If policy holder is not satisfy with term and condition the policy which She/he has received, then has option to return policy with in..? How Many offices of Ombudsmen the Government body has set up to Resolving insured customers grievances.

323 Ch 14 366 Ch 14

372 Ch 14

373 Ch 14

422 Ch 14

423 Ch 14

472 Ch 14

473 Ch 14

Ans Option 1 1. Same for all policies sold by advisor 1. employee- employer 1. 1 month 1. 50 lakhs 1. 20,000

Ans Option 2 2. Same for all policies sold by the advisor except corporate clients 2. husband-wife 2. 2 months 2. 30 lakhs 2. 50,000

Ans Option 3 3.Only for policy for which complaint has been given 3. family members 3. 3 months 3. 25 lakhs 3. Up to the sum assured taken in the plan

1. Term plan.

2. Endowment plan.

3. Money back plan. 3. Reaches at a level as per industry trends

1. Rises

2. Decreases

1. Some Specific Insurer 1. It is higher 1. all types insurance 1. Lower profits

2. Those Insurer who did not created Insurance Ombudsman System 3. All insurer 2. Decrease 2. All types of insurance except Motor insurance 2. Higher profits 3. Slightly higher 3. Only life insurance 3. Increased Liability

1. The entire fund can be withdrawn

2. Only half of the fund can be withdrawn

3. Only one third of the fund can be withdrawn 3. Appointment of Principal Compliance Officer 3. 15000 3. Post Office 3. 14 3. Consumer Affairs Department (CAD)

1. Inspection by IRDA 1. 5000 1. Any Nationalized Bank 1. 10 1. Customer Complaint Department (CCD)

2. Audit by Finance Ministry 2. 10000 2. Insurance Company 2. 12 2. Customer Grievance Department (CGD)

1. policyholders

2. shareholders

3. insurers

1. IRDA 1. Protection of Policy holder Interests regulation 2002

2. Agents 2. IRDA claim protection regulation 2002

3. Shareholders 3. C.IRDA policy settlement regulation 2004

1. Nodal officer

2. Grievance call center

3. Compliance cell

1. Policyholder grievance Regulation

2. Policyholders Protection regulation

3. Ombudsman Regulation

1. 10 Days. 1. Integrated Grievance Management System.

2. 15 days. 2. Internal Grievance Redressal Cell of the Insurer.

3. 20 Days.

3. Grievance Redressal Officer.

1.15 Days

2.20 Days

3.25 Days

1.15

2.12

3.14

Ans Option 4

Correct option

4.None applicable 4. society members 4. 6 months 4. 20 lakhs 4. Unlimited

3 4 1 4 3

4. Wholelife plan. 4. Insurance can price their product on their self past experiences.

4. It is optional 4. Slightly lower 4. Only Non-life insurance 4. Decreased Life fund

3 3 1 1

4. Only one fourth of the fund can be withdrawn

4. Inspection by Auditor General 4. 20000 4. Mutual Fund Company 4. 15 4. Consumer Protection Department (CPD) 1

4. General insurers.

4. Underwriters 4. D. Protection of claim settlement regulation 2002

2 2

4. Compliance officer

4. Compliance Regulatory

4. 30 Days.

4. Consumer Affairs Department.

4.10 Days

4.16

S.No

Chapter

28 Ch 15

Question 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 According to IRDA agents code of conduct, what is the best method of showing the amount of commission earned by the advisor

30 Ch 15

84 Ch 15

Under the hospital care rider what is the payout made Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness before maturity? When can an insurance company give more than 35% first year commission? A person suffering from lung cancer is a smoker. Here smoking can be termed as Which of the following is a Non Standard Age Proof License of an agent was withdrawn in June 2010 due to malpractice. He can reapply for his license in Mr. Gayaram, Advisor who advised the customer to close the old policy and take new one. But new policy does not have any extra benefits but it will give more commission to Mr. Gayaram. This is called as Ethics can be defined as Which is not unethical behavior in below statements? For an insurance advisor churning is.............practice Mr. Sharma is a newly recruited insurance advisor. To meet his month target he explains only the good points of newly launched plan to his customer. Here Mr. Sharma's behavior is............ The code of conduct has been prescribed in India by...........

131 Ch 15

148 Ch 15 208 Ch 15 209 Ch 15

225 Ch 15

262 Ch 15 274 Ch 15 275 Ch 15 312 Ch 15

324 Ch 15 325 Ch 15

364 Ch 15 378 ch 15

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 ? Rahul is a licensed insurance agent. As agent he must carry out his role in accordance with Shankar, an adviser, sold a term insurance policy and unit-linked insurance policy (ULIP) to Amar, the client, who is unmarried and has no dependent. Consequently, Shankars action can be termed as For Insurance industry which association to take steps to Develop Education and research in insurance? Pankaj being a license insurance advisor has to follow code of Conduct provided by:

425 ch 15

474 Ch 15 475 Ch 15

Ans Option 1

Ans Option 2

1. Enquire about the refusal from the client

2. Suggest an alternative plan

1. Signed copy of sales illustration

2. Brochure 2. Specified amount multiplied by the number of days the policyholder is hospitalized

1. 10% of the sum assured

1. Nil

2. 10%

1. When the insurance company is in the first 2. If the agent has worked with the 10 years of operation company for more than 5 years 1. Peril 1. PAN Card 2. Hazard 2. Certificate of Baptism

1. 2015

2. 2014

1. Switching 1. Those values we commonly hold to be good and right. 1. Over selling of Insurance policies. 1. good

2. Churning 2. Behavior that is based upon the moral judgments of an individual 2. Under selling of Insurance policies. 2. bad

1. ethical 1. IRDA

2. unethical 2. Insurance Council

1. Churning of the policy 1. Companys code of conduct.

2. Surrendering the policy 2. IRDA Acts code of conduct.

1. Underselling of insurance policies.

2. Churning.

1. Life Insurance Council 1. Insurance Regulatory Development Authority

2. Life Insurance Corporation 2. Life Insurance Company

Ans Option 3

Ans Option 4

Correct option

3. Pass on to the superior 3.Hand written declaration by agent

4. Pass on to the other agent 4.Verbal communication to customer

3. expenses incurred per day multiplied by no. of days stay in the hospital 4. 100% of Sum Assured

3. 20%

4. 30%

3. If the agent has worked with the 4. If the agent is doing more than 3 company for more than 10 years policies in a month. 3. Risk 3. Certificate from Village Panchayat 4. Uncertainty 4. Certificate from School or College

3. 2013

4. 2017

3. Redirecting. 4. Shifting. 3. A study of what makes ones own actions right or wrong. 4. All of the above. 3. Explaining all details of the policy to customer. 4. Churning. 3. compulsory 4. appreciable

3. professional 3. Insurance Institute of India

4. Perfect. 4. Government of India.

3. Switching the policy 3. IRDA Regulations code of conduct.

4. Claiming the policy 4. Insurance Acts code of conduct.

3. Overselling of insurance policies. 4. Ethical practice by an adviser.

3. Insurance institute of India 3. Reserve Bank of India

4. Insurance Institute of India 4. SEBI.

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