200qst With Ans

7/28/2019 200qst With Ans

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IC 33 Exam Questions

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

A. Perils are medical factors which influence the risk of dying and hazards are lifestyle activitieswhich influence the risk of dying.

B. Perils are risks that policyholders will die before a specified date and hazards are factors whichcould influence that risk.

C. Perils are factors which affect the risk being insured and hazards are the size of the risk being

insured.

D. Perils are factors which could influence an insured event occurring and hazards are the actual

events which will trigger a payout

A.

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

C. Real needs are actual needs and perceived needs are based on a clients thoughts and desires.

D. Real needs are identified by the insurance agent and perceived needs are identified by the client.

E. Real needs are needs which satisfy an objective and perceived needs are needs which do not

satisfy an objective.

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

B. Young married

C. Young married with Kids

D. Pre retirement

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

A. Regulation

B. Redressal

C. Research

D. Repository

4. If the client does not wish to proceed with the recommendations right at the moment the agent shouldA. Insist on taking the product right away

B. Should ask for the reason for not going with the recommendation

C. Should ask for a future date from the client

D. Should review once again

5. Suresh has adequate reserve capital with him and he wishes to protect his income, moreover he feels that if

he does not die then he would need the amount. What type of plan should he opt for?

A. Term Insurance Plan

B. Endowment plan

C. Return of premium plan


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D. Pension plan

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

was.

A. It was assigned.B. It was paid up.

C. It was lost.

D. It was surrendered.

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

A. It was lost.

B. It was paid up.

C. It was lapsed.

D. It was surrendered.

8. Manish and Manisha is a married couple with one child. They want to plan for savings, childeducation/marriage and their retirement and protection of income. Which should be their lowest priority?

A. Marriage.

B. Savings.

C. Education.

D. Protection.

9. While calculating HLV along with future income, no of years of work, increments in salary what is also to

be taken in to account?A. Inflation.

B. Interest.

C. Discount rate

D. Compounding.

10. If RBI increases the interest rates then what will be the effect on share prices.

A. Shares will be more attractive.

B. Shares will be less attractive.C. Fixed deposits will be more attractive.

D. Fixed deposits will be less attractive.

11. Vishal and sandeep applied for a health plan in XYZ Life Insurance Company. Vishal is asked to undergo

a medical checkup but Sandeep is not asked to do so. What will be most possible reason?

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

B. Vishal is older than Sandeep

C. Sandeep is earning more then Vishal

D. Vishal is working in a MNC

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

A. Quantify clients need

B. Priorities Clients Need

C. Recommending Product

D. Fill up the proposal form

13. What is purpose of investing money in debt mutual fund?

A. Easy access


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B. Fixed income

C. Tax Benefits

D. Liquidity

14. Mr. shailsh has an endowment policy with 30 years policy term, he has paid for eight years. The sumassured Rs.8,00,000/- and accumulated bonus Rs.60,000/-. What is the paid up value?

A. 213333B. 229333

C. 273333

D. 293333

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

A. GuaranteesB. Taxation

C. Tenure

D. Lock in periods

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

focus?

A. Savings

B. InsuranceC. Investment management

D. Planning for pension

17. Mr. Kunal used to participate in Car race. While taking up the Insurance policy he disclosed this

information. What kind of hazard does it refers to

A. Physical hazard

B. Fraudulent representationC. Moral hazard

D. Peril

18. Which of the following falls under voidable contract?

A. Misrepresentation

B. Lack of insurable interest

C. Fraud

D. None of the above

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

A. Pooling of risk

B. Maintaining insurable interest

C. With utmost good faith

D. Randomness

20. If a client wants to compare between all financial products then the best person he can approach isA. Individual agent

B. Corporate agentC. Bank

D. Broker

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

A. Equity market

B. ULIP


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C. Debt mutual fund

D. FD

22. 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. Theagent should.

A. Do the fact finding exercise againB. Insist with the client to take a term plan

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

D. Give the lead to another agent

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

A. Give a recommendationB. Give a joint decision with the consumer forum

C. Dismiss the case

D. Give an award.

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

increases

A. It rises

B. It fallsC. It remains constant

D. Gross premiums increases

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

A. Liquidity

B. More gold in value

C. Purity

D. More conversion value

26. For which of the following reasons, the underwriter should ask beyond agents confidential report.A. Physical Hazard

B. Moral Hazard

C. SA is too highD. Pure Risk

27. After doing the need analysis of the client, the agent advised the client to opt for TROP product. But the

client refused. According to ethical business practices what will the agent do ?

A. Enquire about the refusal from the clientB. Suggest an alternative plan

C. Pass on to the superior

D. Pass on to the other agent

28. Generally insurance companies do not hold the premium in case of a fraud or misrepresentation. However,

due to which of the following circumstances the insurer can retain the premium of the policyholder

A. Fraudulent claim

B. Indisputability clauseC. Redressal procedure

D. Pending decision from Ombudsman

29. According to IRDA agents code of conduct, what is the best method of showing the amount of

commission earned by the advisor

A. Signed copy of sales illustration

B. Brochure

C. Sales Communication


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D. Press releases

30. With pooling of risks an insurance company pools the premium collected from several individuals to

insure them against similar risks. At what circumstances will the insurance companies pool the risk of a

life insurance and health insurance together?A. Under no circumstances

B. Under conditions of the reinsurerC. As directed by actuary

D. As per company policy

31. In case the customer has stopped making payment for the premium of the policy. What are the two most

important things required in order to reinstate the policy?

A. Reinstatement Fee and Proof of continuing good healthB. Premium cheque and health declaration

C. Only health certificate

D. Premium cheque with arrears

32. If the customer has invested money in a pension plan from company A and buys an annuity from company

B, what is the nature of transaction?

A. Life Long Annuity

B. Open MarketC. Reinsuring Annuity

33. If a policy holder buys a policy from the advisor and lodges a complaint, it should be treated as :

A. Same for all policies sold by advisor

B. Same for all policies sold by the advisor except corporate clients

34. An investor holds a wide range of shares. If the Reserve Bank of India announces a series of significant

interest rate increases, the prices of these shares are most likely to

A. Become volatile

B. DecreaseC. Increase

35. In life insurance business if a person is working in calculating premium rates of insurance products, thenhe is mostly likely a member of

A. institutes of actuaries of India

B. insurance institute of India

C. Charted institute of insurance

D. Insurance institute of risk management

36. In a life insurance policy it is later found that the person doesnt have insurable interest then the contract

is

A. expired

B. reviewedC. Void

D. Valid

37. If both parents of proposer died in their thirties due to heart attack what is the kind of peril or hazard the

proposer has?

A. Insurable hazard

B. moral hazard

C. non insurable hazard


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D. Physical hazard

38. Raunak earns 80,000 per month as salary. He has taken a House loan of Rs. 500000. What will be the

maximum amount of EMI that can be charged by the Bank to recover the loan amount?

A. Rs. 32000 per monthB. Rs. 24000 per month

C. Rs. 40000 per monthD. Rs. 48000 per month

[Chapter 6/13 - Care should be taken to ensure that EMIs do not exceed 40% of the monthly take home

salary.]

39. Frequent switching is not advisable in ULIP plan because it increase

A. Investment RiskB. Risk of death

C. Uncertainty of return

D. Chances of lapse

40. According to insurance terminology which of the following is correct?

A. Lung cancer is a hazard whereas smoking is a peril

B. Smoking is a hazard and lung cancer is a peril

C. Lung cancer is a peril and smoking is a moral hazardD. Smoking is a moral hazard whereas lung cancer is a peril.

[Chapter 2/5 - If lung cancer is a peril then smoking can be a hazard that may increase the chance that theperil (lung cancer) will occur.]

41. An insurance agent sold two policies to two different persons having the same policy term. He declares the

commission to each of them. The commission of one of the policy is more than the other. What should be

the reasons for this difference?

A. Risk profile of both the policyholder are different

B. Age of both the candidate are different

C. One has chosen Single premium policy and other has chosen regular premium policyD. Both have chosen different kind of policies.

42. Open market option under Annuity policy would extend which of the following benefit?A. Ensure Better annuity rate

B. Increase in the range

C. Increase in return

D. Switch of Funds

43. Akash is an Unmarried person and employed with company ABC and drawing a handsome salary. He has

no liabilities. What kind of plan can be suggested to him?

A. Money Back

B. Term Plan

C. Endowment Plan

D. ULIP

44. What should an agent do in order to understand the mental state of client in respect to his investments insaving products

A. Fact findingB. Consulting the clients parents

C. Consulting the family of the client

D. Reviewing his existing investments


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45.

46. Net premium is equal toA. Premium plus interest earning

B. Risk premium plus interest earning

C. Premium minus interest earningD. Risk premium minus interest earning

47. Pooling of risk in insurance means

A. The premium collected & deposited in a pool

B. All similar risks are pooled togetherC. Premium is pool to make claims

D. Contribution of insurance company

48. Principle of utmost good faith will operate in existing policy

A. Every time premium is paid

B. If the policy has lapsed and it has to be revived.

C. If the insured person falls sick and is admitted to hospital.

D. If the insured person changes his job.

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

called

A. Consideration.

B. Legality of an object.

C. Consensus ad idem.D. Acceptance.

50. In case of life insurance, Insurable interest must exist

A. At inception of policy

B. Not needed

C. At the time of claim

D. Any time during the contract

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

A. Traditional deposits

B. Recurring deposits

C. Cumulative deposits

D. Term Deposits

52. The Premium on all riders put together should not exceed

A. 10% of the premium on the base policyB. 20% of the premium on the base policy

C. 30% of the premium on the base policy

D. 40% of the premium on the base policy

53. How riders will help the customer in life insurance?A. allows policyholders to customize their insurance cover with additional benefits

B. rider is like a clause

C. Operative clause.

D. Rider is like Preamble.

54. In Daily hospitalization cash benefit scheme,

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


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B. The insurance company may pay an additional amount on a daily basis if the insured is admitted

to the Intensive Care Unit (ICU).

C. The insurance company will pay for doctor consultation fees incurred prior to hospitalization

D. Only surgery expenses are included in daily hospitalization benefit

55. A lump sum withdrawal allowed as commutation in pension plans is

A. 1/3

rd

of the accumulation fundB. 1/4th of the accumulation fund

C. 1/2nd of the accumulation fund

D. Full withdrawal is allowed

56. Customer has opted for a 5 yrs guaranteed annuity option. What will happen to annuity, if the customer

survives for 5 years after the end of guarantee period?A. paid up to 75 Yrs

B. annuity will be continued for next 5 Years

C. till he die

D. not remembered

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

A. CI benefit will cease

B. CI benefit reduced from existing sum assuredC. CI benefit continues

D. No change in policy.

58. What is the main objective of taking the life insurance policy?

A. Tax benefit

B. Savings

C. Investment

D. Protection

59. If person consumes alcohol- what is the type of hazard?A. Moral

B. Physical

C. OccupationalD. Professional

60. Group Insurance can be taken in following relationship

A. employee- employer

B. husband-wifeC. family members

D. society members

61. Where one can approach in case of dispute?

A. IRDA

B. Consumer Forum

62. Life insurance is the most important for which age groupA. Young

B. Pre- retirementC. Retirement

D. children

63. Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase

will generally apply?

A. 2.5%


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B. 3.0%

C. 5.0%

D. 7.5%

64. Kamal is willing to pay 60000/- per annum for his ULIP policy. What should be the SA in case he wants toavail the tax benefits?

A. 1 lacsB. 3 lacs

C. 2 lacs

D. 1.50 lacs

65. The regulations issued by the IRDA, require that the decision on the proposal must be conveyed to the

proposer withinA. 15 days of receiving the proposal

B. 20 days of receiving the proposal

C. 25 days of receiving the proposal

D. 30 days of receiving the proposal

66. Family floater health Insurance plan covers

A. All members of a FamilyB. Husband and Wife only

C. Parents only

D. Children Only

67. According to IRDA guidelines, how long does an insurance company have to complete its investigation ofa claim?

A. 30 days

B. 90 days

C. 120 days

D. 180 days

68. How the Daily hospitalization cash benefit will provide benefits to policyholder who is hospitalized?

A. Entire charges are refunded.B. Entire charges less bed charges will be paid

C. A fixed amount on a daily basis is paid irrespective of the actual cost of treatment

D. Only Hospital bill will be paid

69. Who is a regulator, supervisor and monetary authority of the financial system in India?

A. IRDA

B. SEBI

C. RBI

D. SBI

70. Indisputability clause can be enforced by the insurance company during the

A. First five years of policy

B. First Two years of policyC. Claim

D. Inception of the policy

71. To ensure that the premiums are paid out of a legitimate source of funds cash is accepted

A. Up to 50000B. Up to 99990

C. Up to 100000

D. Without any limit


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72. If there is no claim in a year than what will be the benefit to the customer as NO CLAIM BONUS

A. Discount in next year premium

B. Increase in Sum Assured next year

C. Loans facility

D. No benefit

73. An individual is said to be competent to enter into a contract if they areA. 18 year old

B. 21 year old

C. 23 year old

D. 25 year old

74. Maximum time for investigation in disputed claim?A. 1 month

B. 2 months

C. 3 months

D. 6 months

75. The Ombudsmans powers are restricted to insurance contracts of value not exceeding?

A. 50 lakhs

B. 30 lakhsC. 25 lakhs

D. 20 lakhs

76. In which section of Policy document, Information about the location of the insurance Ombudsman had

written?

A. Operative clause

B. Attestation

C. Information statementD. Endorsements

77. In Cumulative bank deposit the interest that in normally compounded on what basis.A. Monthly

B. Quarterly

C. Half Yearly

D. Annually

78. The premium for accidental death benefit rider must not exceed

A. 15% of base policy premium

B. 25% of base policy premium

C. 30% of base policy premium

D. 40% of base policy premium


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79. If the annual premium for a plan is 32000 and a frequency loading of 4% is added in a quarterly premium

what is the amount that needs to be paid.

A. 8000

B. 8320

C. 9456

D. 9240

80. What amount of insurable interest does an individual have in his own life?

A. 20,000

B. 50,000

C. Up to the sum assured taken in the plan

D. Unlimited

81. Ombudsman passes an award within which time

A. 1 month

B. 2 months

C. 3 months

D. 6 months

82. If the license of an agent has been disqualified by a designated authority in 2010 then the person can apply

for a license in which year.

A. 2013

B. 2015

C. 2017

D. 2020

83. Under the hospital care rider what is the payout made

A. 10% of the sum assured

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

84. If the agent recommends the client to terminate an endowment plan and take a whole life in order to earn

higher commission its termed as

A. Switching

B. Doing a financial planning


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C. Churning

85. Mr. Denny is married and has 2 children and his parents are alive. He has taken a family floater plan.Under the plan who all will be covered.

A. Denny

B. Denny and his wife

C. Denny, his wife and children

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

86. Amit has taken a G-Sec and has parted with it mid way as he required the money with the intention of notgetting the interest. What will he get?

A. Discounted Value

B. Principle amount

C. Discounted Value with persistency bonus

D. Principle with persistency bonus

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

A. Loading

B. Investment

C. Frequency

88. Nomination can be in favor of how many people?

A. One person

B. Two persons

C. Three persons

D. It can be any number

89. Suresh is suffering from Asthma and the policy in been done on joint life basis and the need for

nomination under the plan is less asA. Joint life policy


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B. Has physical ailment

90. What key impact will the agent have in low persistencyA. Increase more business

B. Increase in the agents earning

C. Will improve reputation

D. Will have impact in his commission.

91. Within how many days will the underwriter needs to inform the policyholder regarding the status of the

policy.

A. 10 days

B. 15 days

C. 30 days

D. 45 days

92. Certificate from the village panchayat

A. Will be considered as standard age proof

B. Will be considered as non standard age proof

C. Will not be accepted

93. What is the maximum sum assured under a micro insurance

A. 10000

B. 25000

C. 50000

D. 100000

94. Varun wishes to pursue a career in insurance and wishes to be in a department which calculates the level

of premium. In which department should he join?

A. Actuary

B. Underwriter


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C. Claim Department

D. Accounts

95. If Naresh wishes to take the tax benefit of the full premium paid which is 60000, what amount of sumassured should he avail in a ULIP plan.

A. 2 lacs

B. 3 lacs

C. 5 lacs

D. 6 lacs

96. Ashish is looking at different plans of insurance for protection at the lowest premium. Which is the best

plan for him?A. Term plan

B. Endowment plan

C. Whole life planD. Money back plan.

97. The insurance act of 1938 created which of these.

A. IRDA

B. Tariff Advisory Committee

C. National Insurance Academy

D. LIC

98. Ashu is an illiterate person and his proposal form was filled by Nishu, then what is the additional

requirement to be taken along with the documents.

A. The policy needs to be advertised in the newspaper.B. Nishu has to sign an indemnity bond.

C. Thumb impression of Ashu has to be taken.

D. Ashu needs to be medically examined.

99. Harshs policy matured, however he was paid only 25% of the sum insured in spite of all his premiums

been paid on time. This indicates that his policy is a

A. Term plan.B. Endowment plan.

C. Money back plan.

D. Wholelife plan.

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

A. 10,00,000.B. 20,00,000.

C. 50,00,000D. 1,00,00,000.

101.In case of a term plan the maximum premium of the accidental rider can be.

A. 100% of basic premium.

B. 50% of basic premium.

C. 30% of basic premium.


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D. 35% of basic premium.

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

A. Insurance contract.

B. Indemnity contract.C. Value contract.

D. Major life contract.

103.In the personal statement, Ramesh declares that he consumes alcohol twice every week. This is a

A. Moral hazard.B. Moral peril.

C. Physical hazard.

D. Physical peril.

104.Micro insurance is made specifically for people from.

A. High income.

B. Middle class.

C. Low income.D. Affluent class.

105.The reduction in the benefit illustration shows what.

A. Charges.

B. Mortality.

C. Interest.

D. Inflation.

106.If Insurable interest does not exists at the time of inception of the life insurance policy then, life insurance

contract isA. Voidable

B. Invalid

C. ValidD. Null & voidable

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

A. Null and void

B. InvalidC. Voidable

D. Valid

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

A. Proviso

B. Schedule

C. Terms & conditions

D. Endorsement

109.Available Loan amount under a life Insurance policy is generally based onA. Total paid premium

B. Sum Assured

C. Surrender value

D. Paid up value

110.De- tarrification is a process by which pricing of Insurance


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A. Rises

B. Decreases

C. Reaches at a level as per industry trends

D. Insurance can price their product on their self past experiences.

111.As per Regulation for protection of Policyholders interest 2002 (IRDA), Which insurer will have a

grievance redressal SystemA. Some Specific Insurer

B. Those Insurer who did not created Insurance Ombudsman System

C. All insurer

D. It is optional

112.Which body has created a call center for logging a complaintA. Life Insurance Council

B. IRDA

C. Insurance Association

D. Insurance Institute of India

113.What is the key function of NIA

A. Provide suggestion for Premium calculationB. To be an active link between Global market & Indian Life Insurance Industry

C. Design, implement and operate an insurance trainingD. Regulate the investment of funds by Life Insurance company

114.After maturity In a Unit Linked Life Insurance Policy, customer does not get received Maturity in a lump

sum. What is the possibility of receiving it in installments if it is not a annuity plan

A. He has switched his fund

B. He has opted for Settlement option

C. He has he has redirected his past premium.

D. Policy was lapsed on the time of maturity

115.Gautam wants to purchase a Kisan Vikas Patra. What is the most suitable place to purchase it

A. Bank B. Insurance Company

C. Post Office

D. Share Market

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

A. Administrative charge

B. Inflation

C. Interest rate

D. Market Risk

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

A. Risk apatite of clientB. His future aspiration

C. Commitment to needD. Willingness to pay

118.Raunak wants to purchase a cheapest plan which can provide financial security to his dependent. Which

plan should be offered

A. Term Plan

B. Term Plan with return of premium


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C. Pure Endowment plan

D. Unit Linked Plan

119.For tax Saving Someone wants to fixed deposit in bank. What duration is required for it?

A. 3 yearsB. 5 years

C. 7 yearsD. 2 years

120. Incase of presumption of death

A. Not necessary to pay premium until court decree

B. Necessary to pay premium until court decree

C. Claim not admissible

121.If insured gets the two advance payment in the 5yrs and in the maturity he gets rest of sum assured. What

type of policy it is

A. Money back policy

B. Convertible plan

C. Term plan

D. Endowment policy

122.Which is correct in relation to Insurance Broker?

A. Insurance broker is represents insurance buyer and remunerated by the insurance companyB. Insurance broker is represents insurance buyer and remunerated by the Client

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

Why?

A. Shailesh is very older than ankit.B. Shaileshs income is more than Ankits income

124.What will be lien amount in 3rd year as compared to the 4th year of lien.A. It is higher

B. Decrease

C. Slightly higher

D. Slightly lower

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

A. One year

B. Two years

C. Three years

D. Five years

126.In which plan weekly premium payments are accepted.

A. Health InsuranceB. Group Insurance

C. Micro Insurance

127.One person wants to take term plan for 20 lakh and wants to take ADB rider, he is not sure of how much

sum assured he needs to take for ADB rider. What is your suggestion?

A. Needs to take experts suggestion

B. Equal to base cover


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128.Basing on which criteria the qualification of Agent is determined?

A. Address of the agent

B. Domicile status

129.Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness beforematurity? (wrong)

A. NilB. 10%

C. 20%

D. 30%

130.A customer surrenders his policy on Feb 2011. As per Agents code of conduct, an agent can get a new

policy from this customer from Feb which yearA. 2011

B. 2012

C. 2013

D. 2014

131.If we hold 100 units in gold ETF, It means that how much grams we have in physical

A. 5 or 10 grams

B. 10 or 15 gramsC. 15 or 25 grams

D. 50 or 100 grams

132.In case of life insurance, the insurable interest should exist

A. At the time of taking the policy

B. At the time of claim

C. At the time policy matures

D. At the time of taking the policy & claim

133.Pooling of insurance applies toA. all types insurance

B. All types of insurance except Motor insurance

C. Only life insuranceD. Only Non-life insurance

134.Insurance companies are required to honor the awards passed by the Insurance Ombudsman within how

many days

A. 10 daysB. 15 days

C. 20 days

D. 25 days

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

A. Has the power to supersede the IRDA by issuing notification.

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

C. Has the power to supersede the IRDA by issuing draftD. Can make changes in IRDA law

136.An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. Its the

impact in his taxation

A. He will get tax benefit up to 5000

B. He will get tax benefit up to 25%

C. He will get a reduction in tax slab

D. His investment would be deducted from taxable income


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137.What are the benefits to the policyholder Under Surgical care rider?

A. Number of days admitted in hospital & surgery expenses in full

B. Number of days admitted in hospital & surgery expenses in partial

C. Treatment cost of surgery subject to terms & conditionsD. Lump sum amount what he has incurred

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

policy holder will get benefited

A. Need to spend and Get claim from the insurer

B. Need to add that hospital as TPA

C. Need not to claim

D. Need to switch to the another insurer

139.During financial planning session if the agent finds out the following needs, which one should be given the

top priority. Needs: Income protection, Childs education, marriage and emergency funds.

A. Childs education

B. Marriage

C. Emergency funds

D. Income protection

140.National insurance academy has the following main functions

A. Calculating premiumB. Interact with the government

C. Training

D. Mortality assumptions

141.Health insurance rider and critical illness rider in classified under

A. Life and non life respectively

A. Both life insurance

B. Both non life insuranceC. Nonlife and life respectively.

142.Pure risk is classified underA. Economic risk

B. Speculative risk

C. Financial risk

D. Insurable risk

143.If a valid claim is delayed by the insurer then the interest for the same will have to be paid by the insurance

after how many days from the date of admission of the claim?

A. 10 days

B. 20daysC. 30 days

D. 60 days

144.As per IRDA regulations IGMS should be mandatory set up by

A. Only by few selected insurers

B. Only by non life

C. Some life and non life

D. By all insurers.


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145.If a customer has mentioned he is a drinker in the proposal form, the insurance company can exclude this

hazard and mention it in which part of the policy document?

A. Provisio

B. EndorsementsC. Operative clause

D. Terms and Conditions

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

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

B. If the agent has worked with the company for more than 5 years

C. If the agent has worked with the company for more than 10 years

D. If the agent is doing more than 3 policies in a month.

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

sell

A. When the customer asks him

B. After the fact finding process

C. After quantifying the need

D. After the product is recommended to the client

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

A. Insurance coverageB. Annuity part

C. Guaranteed and non guaranteed part

D. Vesting age

149.Mr. shailsh has an endowment policy with 30 years policy term, he has paid for eight years. The sum

assured Rs.8,00,000/- and accumulated bonus Rs.60,000/-. What is the paid up value if bonus accumulated

and if not bonus accumulated?

A. 213333 & 273333B. 213333 & 229333

C. 229333 & 273333

D. 229333 & 293333

150.The consequences of these risks which will affect specific individuals or local communities in nature is

called as

A. Pure risk

B. Financial riskC. Particular risk

D. Physical hazard

151.What is the disadvantage to the insurer in case the persistency falls

A. Lower profits

B. Higher profits

152.For the customer whose claim has been refused by the company, the three places where he/she shouldfollow up are Ombudsman, IRDA Customer Grievance Cell and ..

A. Consumer ForumB. COPA

C. Sebi

D. Life Insurance Council

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

arises


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A. Nil

B. 1%

C. 5%

D. 10%

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

A. Good ReturnsB. Regular Income

C. Safety

D. Liquidity

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

A. Surety insuranceB. Keyman Insurance

C. Partnership Insurance

D. Debtor Insurance

156.In the sales illustration, the reduction of the actual benefit amount is mainly due to deduction of

A. Commission

B. Charges

C. Non guaranteed benefitsD. Reversionary Bonus

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

A. Insuring existing losses.

B. Making false insurance claims.

C. Paying excessively for insurance cover.

D. Profiting from insurance.

158.The client of reinsurer are

A. Insurance companiesB. Banks

C. Asset Management Companies

159.A customer gets periodic benefits without any claim and then when he dies during the term of the policy,

his nominees gets the sum insured. What type of policy is this ?

A. Endowment

B. Term

C. Money BackD. Whole of Life

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

critical

A. Group lifestyle

B. Employees

C. Age of the group

D. Medical history of group

161.According to Insurance Brokers Association of India, what is the most appropriate relationship betweenInsurer and Broker?

A. Insurance broker represent the client and the insurer remunerate the broker

B. The client represent the broker and the insurer remunerate the broker

C. Insurer represent both client and broker remuneration

D. Broker only service the client


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162.A low persistency ratio for the insurance company means that:

A. The customers are satisfied with the products

B. The company is acquiring more business and new customers

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

D. The company will not declare bonus

163.For annuity plans, before receiving regular/periodic annuity payments, the individual can make a lump

sum withdrawal. This is known as commutation. Up to what proportion of the accumulated fund can be

withdrawn?

A. The entire fund can be withdrawn

B. Only half of the fund can be withdrawn

C. Only one third of the fund can be withdrawn

D. Only one fourth of the fund can be withdrawn

164.What is the stipulated time frame within which an insurer is supposed to respond after receiving any

communication from its policyholders?

A. 24 hoursB. 1 day

C. 10 days

D. 30 days

165.For an insurance agent, a low persistency ratio means :

A. Loss of renewal commission

B. High client satisfaction

C. Higher reputation

D. More earning of First Year Commission

166.The proposer can withdraw from the contract, if they disagree with the terms and conditions of the Policy,

within a free look-in period ofA. 15 days from the date of receipt of the policy document

B. 20 days from the date of receipt of the policy document

C. 25 days from the date of receipt of the policy document

D. 30 days from the date of receipt of the policy document

167.In the case of life insurance, insurable interest should exist

A. At the inception of the policy

B. At the time of a claimC. At the time of every renewal premium payment

D. All the above occasion

168.In which of the following plan remaining part of the Sum Assured is paid on maturity?

A. Endowment PlanB. Convertible Plan

C. Money Back plan

D. Term Plan

169.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

A. Endowment plan

B. ROP plan

C. Whole life plan


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D. Ulip

170.Payment/Investments in Kishan Vikash Patra under post office schemes is done

A. Regularly with no fixed term

B. Lump Sum with no fixed termC. Lump Sum for fixed period of time

D. Regularly for fixed period of time

171.Prashant buys an Endowment Plan with a sum assured of Re. 100000 and wants to make use of tax benefit

under the policy for whole SA. How much premium would help him avail this benefit

A. Less than 10000

B. More than 10000

C. Less than 20000D. More than 20000

172.Under the IRDA guidelines for Claim settlement, any queries or additional documents can asked from the

claimant within

A. 5 days from the receipt

B. 10 days from the receipt

C. 15 days from the receipt

D. 20 days from the receipt

173.Law of Large number helps the insures toA. Calculate the premium

B. Increase the profitability

C. Ascertain the death ratio

D. Declare the bonus

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

A. Physical

B. MoralC. Occupation

175.Whose signature is required on attestation of the policy?A. Agent

B. Policy holder

C. Authorized officials of insurer

D. Proposer

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

A. 1 lakh

B. 1.5 lakhs

C. 2 lakhs

D. 3 lakhs

177.If customer has applied for a policy with 1 Lac SA then what is maximum Premium on which he can save

TaxesA. Maximum 20000

B. Maximum 100000C. Maximum 120000

D. Maximum 150000

178.If Ombudsman makes a recommendation and is accepted by Complainant then it would be

A. Binding on the insurer

B. Binding on Court Of Law


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C. Binding on IRDA

D. Binding of Insured

180.In India almost each and every sector is having regulatory agencies for following up the companies and

institution operating in the sector. Likely, regulatory agency for insurance sector is known as -

A. SEBI

B. ICAR

C. IRDA

D. RBI

181.Govt. of India has full control on IRDA. Ultimately Govt. of India which of the following matters/issues of

IRDA on an ongoing basis

A. Formation of IRDA

B. Staffing pattern of IRDA

C. Policy matters

D. It is an autonomous body. Govt of India has no control over IRDA

182. Mr. Rahul is having a life insurance policy. After 8 months he was died. But when the claim is returned

by the Insurance Company as the claim cannot be settled because of a specific clause mentioned in the

policy document. Which is the most likely clause?

A. Special clause

B. Suicide Clause

C. Lien clause

D. Paid up clause

183.Mr. Ramesh has taken a life police as recommended by an insurance agent. Now the role of Agents

Principal lies

with

A. The insured

B. Insurance Company only

C. Ramesh only, none else

D. IRDA, since entire insurance is under control of IRDA

184.From Insurance Companys point of view, most important aspect in a Term Insurance Policy lies with

A. Good ethics


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B. Fact findings

C. The proposal

D. Underwriting process

185.Mr. Purusottam has joined as Director of Insurance Company. Now as per the IRDA act he is not allowed

to play the role of which of the following:

A. Agent

B. Chief Actuary

C. Under writer

D. None of these

186.Mr. Amar has taken a Term Insurance Policy from Insurance Company. A term insurance is basicallywhat kind of contract?

A. Indemnity Contract

B. Insurance Contract

187.There are two most widely used mode of lodging complaints against insurance company by the insured.

One is toll free phone call. Name which of following will be 2 nd most widely used method among the

following alternatives.

A. Insurance ombudsman

B. Direct visit to IRDA office

C. Comparison website

D. E mail

188.XYZ Insurance Company has started promoting their insurance products mostly through television and

news paper advertisements. Hence, the said company is operating through

A. Direct channel

B. Indirect channel

C. Using both the channels

D. Agent channel


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189.ABC Insurance Company has appointed many agents. They are helping in underwriting process to the

underwriters. However, Mr. Vimal, an agent has done adverse selections. From insurance companys point

of view, which among the following is most likely considered to be the adverse selection?

A. Obtaining a policy from a very poor person

B. Obtaining policy from a rich man

C. Vimal has obtained most of his policies from railway porters

D. In certain cases material facts are changed to obtain higher claims

190.Vikash a 30 years unmarried young man has invested a pretty good amount in shares. Recently he is

shifting his investments Gold ETF. Now state which of the following is the most likely motive of Mr.

Vikash by doing so?

A. He is interested in savings only

B. He prefers both regular savings as well as capital appreciation

C. He prefers capital growth only

D. Recently he is going to marry that is why he is more interest in Gold to keep the gold of his

would be wife in Gold ETF

191.It has been observed that, most of the policies issued by M/S XYZ Insurance Company have been forfeited

by the insured during the free look period. What may be the most likely reason so far ethics is concerned?

A. The company has no ethics

B. The company has only internal ethics but not external

C. The company has external ethics but not internal

D. The company has both the ethics

192.An insurance company has issued a policy document to one of its policy holder. In the policy document

they have mentioned the payment of premium by the insured, payment of SA by the insurance company on

the happening of insured event etc. which part of the policy document is most likely to contain such

matter?

A. Preamble

B. Schedule

C. Terms and conditions

D. Operative clause


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193.The lung cancer is aggravated by smoking. In terms of insurance, these are respectively known as

A. Hazard & peril

B. Peril & hazard

C. Effect & cause

D. Either peril or hazard

194.Sohan and Amit are 30 years old unmarried persons. Sohan is having dependent mother where as Amit has

no dependent. Which type of policy most likely to be chosen by Sohan?

A. Health insurance for mother

B. Life insurance policy

C. Liability insurance policy

D. Retirement policy

195.Ashok is a young married man with beautiful young wife and two kids. He should select which types of

insurance projects?

A. Contingency funding

B. Health insurance

C. Housing Loan insurance

D. Retirement benefit insurance

196.Underwriting is an important aspect of insurance business. In which of the following situations

underwriter must be most cautious?

A. Low age, low sum assured

B. Low age, high sum assured

C. High age, high sum assured

D. High age, low sum assured

197.A Govt. employee after retirement has chosen to take 10% of his pension benefit in cash. Which of the

following options shall be applicable to the person so far income tax payment is concern?


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A. It is absolutely tax free

B. He has to pay 10% TDS on the amount taken in cash

C. He has to pay 30% TDS on the amount taken in cash

D. He is not allowed to take in cash.

198.Amit has decided to invest Rs. 1,00,000/- every year in ULIP where as Ramesh has decided to invest the

same amount in PF in order to get IT exemption in 80C. In this view which of the following is correct?

A. Both the investments have same impact.

B. In ULIP IT exemption u/s 80C is not available.

C. PF is also not eligible for IT exemption u/s Sec. 80C.

D. Both are taxable as per Income tax Act 1961

199.Ram and Shyam, both have taken life policy from same company through same agent for same period.

During the process of disclosure, the agent has revealed that he obtains more commission from Ram. What

may be the probable reason for the same?

A. Shyam has taken more number of policy that is why he has been given concession.

B. Rams policy is having rider

C. Ram is older than Shyam

D. Ram is having wife and children, where as Shyam is unmarried.

200.Ramesh is a brother of Rakesh, in which circumstances Rakesh can propose a policy on Rameshs name

A. If Ramesh owes him money

B. IF Ramesh gives a declaration

C. If Ramesh proves that he need the money

D. If ramesh want to invest by his brothers name.

Date post:	03-Apr-2018
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