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Sr.
No.
Chap
ter
No
Question Ans Option 1
11
Sanjeev is an insurance expert who has rich experience in
determining premium levels for product, what is his profile likean actuary
21
The Non Government organizations(NGO) helps the insurance
industry immensely inPromotional activities Draft
31
Investment by foreign direct investors in to Insurance co's is
restricted to12%
41 Which market does the Micro Insurance Concentrate on ? People with large families Peop
51 What facility do the insurer use to cover Risk beyond their Limits ? Re Insurance B
6 1 what is the max level under which micro insurance can be done 5000
71 Who is the customer of a Re insurer High Networth Individual Insu
81
Insurance company transfers the insurance which cannot bear by
them toBancassurance
9 1 What is the main objective of taking the life insurance policy Tax benefit
10 1 What is the maximum sum assured under a micro insurance 10000
11
1
Varun wishes to pursue a career in insurance and wishes to be in a
department which calculates the level of premium. In which
department should he join?
Actuary
12
1 According to Insurance Brokers Association of India, what is the most
appropriate relationship between Insurer and Broker?
Insurance broker represent the client
and the insurer remunerate the broker
The client repre
rem
131
If a client needs Mediclaim to cover health insurance which insurer he
needs to apply.Non life insurer
141
Insurance agents areWho work only for insurance company Who
151
Any assets, which are no longer suitable or are earning fewer returns
than expected, should beReviewed Cashed in for
161
If a client wants to compare between all financial products then the
best person he can approach isIndividual agent C
171
If the customer wants to seek information about all products, then he
can avail the services ofAgent
18
1To identify suitable products their main features and their tax
treatments is the role of:
Agent
19
1
The main purpose of buying an insurance policy normally is
to develop the habit of savings to obtai
201
The basic elements of life insurance are:Accident benefit and riders. Pension
211
Transactions of sale of life insurance products to the insurable
clients are viewed in the Insurance market mostly asSales transactions Relat
221 A Professional insurance market carries.. 1. Need Based Selling 2. Pro
23
1 Insurance Market divided into1. Endowment and Money Back
Insurance2. Life and G
24 1 What is Bancassurance? 1. Giving insurance policies to Banks. 2. Selling insur
251
Which of the following do not include the channel of indirect
marketing?1. individual agents 2
261 The business of Insurance is connected with................ 1. physical values of assets 2. econ
271 Human beings need life insurance because.................. 1. death is certain 2. d
28
1The timing of death is uncertain, so when one should take life
insurance?1. At the time of uncertainty 2
291 Insurance Protects which of the following?
1. The life of the person paying
compensation2. The risk
30
1 Agent who is a licensed intermediary is actually is ?1. A legal person to act on behalf of the
re-insurer
2. B.A legal p
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31 1 E-sales refers to sales of insurance products through 1. Insurance brokers. 2.
321 Insurance business is classified into three main types: 1. Life, Non life, Micro Insurance. 2. Life, N
332 lung cancer and smoking .
lung cancer is peril and smoking is
moral hazardsmoking is pe
342 The type of risk that can be insured against is Speculative Risk
35
2
Pooling of risk in insurance means
The premium collected & deposited in
a poolAll similar
36 2 Pure risk is classified under Economic risk S
372
The consequences of these risks which will affect specific individuals
or local communities in nature is called asPure risk
382
Law of Large number helps the insures toCalculate the premium Incre
392
A person with a criminal background due to Financial fraud would
come under which hazardPhysical
40
2
How are perils and hazards normally distinguished under term
insurance policies?
Perils are medical factors which
influence the risk of dying and hazards
are lifestyle activities which influence
the risk of dying.
Perils are risk
before a specifie
which co
41 2 Law of large numbers is worked out by which of the following? Pooling of risk Maintai
42
2
With pooling of risks an insurance company pools the premium
collected from several individuals to insure them against similar
risks. At what circumstances will the insurance companies pool the
risk of a life insurance and health insurance together?
Under no circumstances Under co
432
In life insurance industry which mechanism operates so as to enable
the individuals to reduce the impact of risksPooling of risk T
44 2 Law of large numbers help in calculating the severity of risk p
45 2 Which is the best option to manage risk? Retain
46
2 Vinay doesnt want to take insurance on himself. He feels that hisfamily will survive with the funds available in the bank and monthly
rentals received from village. This comes under Risk ______
Transfer
472
Insurance is a mechanism through which risk of an individual can
normally betransferred
48
2
In the context of Insurance terminology, how the meaning of Peril,
Risk and Hazard is best described?
Peril, Risk and Hazard are of the same
meaning
Peril is the even
Hazard
492
Pooling of risks is one of the fundamental principles of insurance
where the Insurers pool the premium collected fromall types of financial risks the h
502 Pooling of insurance applies to 1. all types insurance 2. All types of ins
512 The Risk contains. 1. Peril and Hazard
522 Grouping the similar risks by Insurance Company is called as. 1. Grouping of Risk 2
532 The function of Insurance works on.. 1. Risk Transfer
54
2Mr. Mahesh is a software engineer. He has taken a term insurance for
Rs. 30,000,00/- for 30 years. This is an example for-----------------1. Risk retention
55
2 Which of the following can be an example of moral hazard? 1. a family history of heart disease 2. a person w
562 Life insurance the risk is determined on the basis of .......... 1. future data
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57
2 Which one of the following is possible in retaining the risk?1. Retaining the ownership in the
policy2. Not poss
58
2
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 ?
1. Under the category of Pure risk 2. Under t
592 Life insurance company determine the level of risk based on 1. Future expenses. 2. C
602
Ram works in a Fire cracker factory. He stocks the cracker in his
house. He runs which type of risk.1. Speculative.
61
2 In Insurance terms, pooling of risk is1. Using the same pool for paying
claims of car & life insurance.
2. Using differen
622
An Insurance company pools the premium collected from several
Individual to insure them against similar risk is called:1. Pure Risk 2
63
2
Which of the following Risk is associated with those events which
are not in control of an individual and also no possibility of making
profit:
1. Pure Risk. 2
642
which of the following refres to specific event which might cause a
loss ...1. Peril
65
3:1Harish takes a life insurance policy for Ramesh. Which of the
following statement best describes the principle of Insurable Interest.
Ramesh declares all his liabilities Rames
66 3:1 what is the min age to enter into the contract of insurance 16
673:1
In a whole life plan - The policyholider's responsibility to give
disclosureat the beginning of the contract throu
68
3:1
Principle of utmost good faith will operate in existing policy
Every time premium is paid If the policy has
693:1
Both the parties to a contract must agree and understand the same
thing and in the same sense which is calledConsideration Leg
703:1
In case of life insurance, Insurable interest must existAt inception of policy
71 3:1 Group Insurance can be taken in following relationship employee- employer
72
3:1What amount of insurable interest does an individual have in his own
life
20,000
733:1
With reference to the principle of indemnity a life insurance policy is
a.Insurance contract. Ind
743:1
If Insurable interest does not exists at the time of inception of the life
insurance policy then, life insurance contract isVoidable
75 3:1 If a contract is signed by a 15 years old boy, this contract will be Null and void
763:1
1. If the employer has insurable interest in the life of an employee,
what kind of policy is this?A. Surety insurance B.
773:1
The concept of indemnity is based on the key principle that
policyholders should be prevented fromInsuring existing losses. Making
783:1
Employee has insurable interest in the life of their employer to the
extent ofYearly Salary
79
3:1
Mr Rohan takes an insurance policy due to heavy Debt on his
business with an intention of committing suicide. This is an example
of the following Feature of a valid contract
Capacity to Contract L
803:1
An insurer can invoke indisputability clause in case of death only inNon payment of due premium Breach of duty
813:1
A proposer shows his age lesser than his actual age. This will be
termed asBreach of utmost good faith
82
3:1
Mr. Mehra wants to insure his wife. Previously his proposal was
rejected by another company, butthis time he submits the proposal
form without showing this to a new company. This is
Non-disclosure of material facts Concea
833:1
In which type of insurance Insurable Interest exists at the time of
claim?Liability Insurance M
84
3:1
A proposal of life insurance is not accepted in the absence of
Insurable interest which mainly depends on the
blood relation between the Proposer
and the Life assured
Proximity of rela
and
853:1
Principle of utmost good faith is expected for max up to which stageBefore the contract is concluded
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86
3:1 A contract comes into existence when1. One party makes an offer which the
other party accepts unconditionally.
2. One party m
party
87
3:1
Mr. Kumars wife is suffering from blood cancer. Doctors lost their
hope on her live. Mr. Kumar would like to take Life Insurance policy
on wifes name in order to get monitory benefit. Insurance company
rejects this proposal on the grounds of.
1. Anti Money Laundry 2. Legali
883:1
Under this situation may leads to breach of the duty of utmost good
faith.1. Non disclosure of material facts. 2. Concea
893:1 The principle of utmost good faith is not applicable to 1. Facts of common knowledge
903:1
Where do you not find insurable interest in the following
options.........1. surety-co surety 2. e
913:1 The principle of utmost good faith applies to........... 1. only insurers 2
92
3:1
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?
1. Consideration in the contract 2. C
93
3:1Mr.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 ?
1. The insurable interest between the
car and jim is valid for 6 months
2. The insurable
karan
94
3:1
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 ?
1. He has breached the non-disclosure
of the fact
2. He has breach
95
3:1 A contract exists between insurer and proposer when1. A proposal has been accepted by
insurer.
2. A policy doc
96
3:1
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?
1. Innocent misrepresentation. 2. Fraudu
97
3:1
Shamsher has a health insurance policy of ` 1, 00,000 individually and
from his company for ` 2, 00,000. He falls sick and got hospitalized.
His hospital bill ran to ` 50,000. He claimed this amount from his
individual policy. Also, he placed the request with his company for
group policy claim, which was rejected. The reason for rejection is.
1. Indemnity contract. 2
98 3:1 Life Insurance also known as: 1. Value Contract.
99
3:1 Which option is not correct with regard to joint life insurance plan?1. Plan offer insurance coverage for
two person in one policy2. This plan
1003:1
Pooling of insurance applies toall types insurance All types of insu
101
3:1The proposer can withdraw from the contract, if they disagree with
the terms and conditions of the Policy, within a free look-in period of
15 days from the date of receipt of the
policy document
20 days from th
1023:2 Types of assignment Absolute T
1033:2 why does an insurer insist on age proof document . To assess SA R
1043:2
Mr A submitted the proposal form . When will the risk begins for the
company?Submission of proposal form
1053:2 The obligation of the insurer for the whole life policy is mentioned in Operative Clause
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106
3:2
Asvath is illiterate. He wants to take policy and surya is a friend of his
help him is answering questions and answers and also fills proposal .
In addition to this requirement is
Asvath photograph asvath t
107
3:2For Logging a Policy , a person gives Baptism CERTIFICATE & Ration
Card . What is this ?Both are Standard Age Proof Both are
1083:2
To be a valid contract ,the declaration is necessary in which
documentPolicy Document
1093:2
Mr. ABC buying Term insurance policy, insurer should mention
Ombudsman address in which part of policy document?operative clause
1103:2 Zainab takes insurance in the life of Jasmeet. Zainab will be called as Proposer
111
3:2Mr.Suresh dies one day before the grace period without paying the
premium, what is th claim payableNo claims payable A
112 3:2 Loan is available for a policy in which there is a feature of Fund switch S
1133:2 Appointee's role Signature on the proposal
114 3:2 how many nominees can be attached to a term insurance policy one
1153:2 if a policy has two nominee mentioned what should be the Min
allocationEach nominee to get Min 10% Each No
1163:2
a Policy holder takes a insurance contract for 30 years and the SA
reduces after 25 years what could be the likely reasonNo bonus accumulated Age proof
1173:2
A life insurance policy can only be made paid up if what particular
policy feature exists?Indexing contribution. No
1183:2 Reasons for surrender of the policy SA a
1193:2
If a life insurance policy is issued with a lien, it will be mention inProviso
1203:2
Available Loan amount under a life Insurance policy is generally
based onTotal paid premium
121
3:2
If a customer has mentioned he is a drinker in the proposal form, the
insurance company can exclude this hazard and mention it in which
part of the policy document?
Provisio
122
3:2
Mr. shailsh has an endowment policy with 30 years policy term, he
has paid for eight years. The sum assured Rs.8,00,000/- and
accumulated bonus Rs.60,000/-. What is the paid up value if bonus
accumulated and if not bonus accumulated?
213333 & 273333 2
123 3:2 Whose signature is required on attestation of the policy? Agent
124 3:2 The mutual obligation of the parties is laid down in? Operative Clause
1253:2
The Insurance companies allow modification/alteration of the original
policy documents through...Surrender
126
3:2
In case the customer has stopped making payment for the premium
of the policy. What are the two most important things required in
order to reinstate the policy?
Reinstatement Fee and Proof of
continuing good healthPremium che
127
3:2
A and B start their policies on the same date and surrender on 22nd
anniversary of the policy. But As surrender value is higher than B. the
reason was ;
As health was better than B As ter
128
3:2
Which from the following would help best the underwriter to know
whether the proposer had applied previously and his application was
rejected
Medical reports
129
3:2 A policyholder wants to change the nomination after 5 years of the
policy. What would happen
Change not allowed Can be do
130
3:2 Mr. Anil has a money back policy and a whole life policy. He is
planning to take some loan from both the policies as he was regularly
paying the premium. What is your suggestion?
He regularly pays premium so he can
take loan from both the policies
He can surrende
loan fro
131 3:2 When does nomination get invalidated On assignment If more than
1323:2 If 5% bonus is given every year then for a SA of 1 lakh, what will be
the payout after 15 years in a simple revisionary bonus system?60000
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133
3:2
Vijay received his policy bond on 11th June, 2011. Due to some
personal problems he has decided to cancel the policy on 8th July,
2011. Can he cancel or return the policy?
No, as 15 days period is over Yes,
134
3:2
Rohit, 17 years old, submitted a proposal for Endowment plan of Rs.1
lac to AB Insurance Co. In the absence of an essential ingredient of a
valid contract, the proposal was not accepted. Which factor caused
the insurer for non-acceptance of the proposal?
Capability of performance L
135 3:2 A nomination is not required if Policy is taken under joint life basis
1363:2 What is the main source for insurance company to get information of
proposer?1. Advertisements. 2
1373:2
What are the factors involved in calculating Surrender Value of the
Policy?1. Number of years premium paid. 2. Numbe
138
3:2
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?
1. He can not do any thing, because be
received the policy bond.
2. He can file a
co
139
3:2 When an illiterate person wants to have a policy.....1. an impression of the left thumb is
taken and third party has to attest it
2. an impression
the ad
140
3:2
Mr.Shanth has taken an endowment policy of 15 years with ABC
insurance company. He has paid premium for 4 years and he couldnot pay premium for 5th and 6th year. In the 7th year he approaches
the company to renew the policy. Now which of the following options
will apply to him?
1. The policy will be renewed on the
existing terms and conditions.2. Mr. Shant
141
3:2Which of the following statement is not true in connection with
nomination?
1. The life insured can nominate one or
more than one person as nominees.
2. Nomination ca
polic
142
3:2Which of the following statements in correct in connection with
assignment?
1. Assignee cannot make fresh
nomination in the policy
2. The assignor n
143
3:2Mr. Shanth has taken an endowment policy of 20 years. He has paidpremium for 10 years and now the policy is in force. At this point of
time can Shanth take loan?
1. Mr. Shanth will not be granted anyloan
2. Mr. Shanth ccertain percenta
144
3:2
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?
1. Policy will be surrendered by the
insurer2. Policy will be
145
3:2Which of the following information does not appear in the First
Premium Receipt?
1. method and frequency of premium
payment2. Date of com
146
3:2
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 ?
1. Converting the policy to Term policy 2. Convert
1473:2 Payment of premium and sum assured are laid down in 1. Heading of policy document. 2.
148
3:2 An insurance contract commences when 1. Quotation is signed by proposer. 2. First Pre
149
3:2 When is premium considered / deemed to be paid?1. When insured writes a cheque in
favor of insurer.
2. When cheque
150
3:2
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?
1. Terms & Condition.
151
3:2
Lalu Yadav is having a saving plan with 20 years tenure. He has paid
5 annual premiums but due to f inancial crisis is unable to make future
premium. His policy
1. Acquires surrender value. 2. Cont
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152
3:2 How assignment distinguishes itself from nomination?1. Nomination does not transfer the
title while assignment does.
2. Nominati
ass
153
3:2
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:
1. Loan assignment 2. Con
154
3:2Which clause lays down the mutual obligation of the parties
regarding, Payment of Premium by Life assured & payment of Sum
Assured by
1. Lien Clause 2.
155
3:2
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. In to paid up and reduced Sum
Assured would be payable on maturity.2.Return
156
3:2
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 2.Su
1574
While calculating Human life value (HLV) two components need to be
kept in mind , the one is take home salary and other isBank Fixed deposit rate
1584
Annual premium of insurance product is Rs. 32,000, 4% loading on
Quarterly mode of payment What is the quarterly premium?7680
1594 why ACR To calculate Premium To Calculate the
1604 In a 20 year with profit policy,persist ency Bonus is paid at the end of 1st Year
161
4
While Underwriting Mr X proposal , its found that there has been
CRIMINAL case against him in Fraudulent act .What type of Risk this
will be categorized Into ?
Fraudulent Hazard Oc
1624
Mr A wants insurance cover . But he is drinks alcohol frequently .
What kind of hazard you may categorize?Physical hazard
163 4 Who IS the primary underwriter of the customer? Underwriter
1644
Claim was settled however full Sum assured not paid though the
policy was in force due toLien
165 4 Lien can be considered an alternative of which of the following Clause
166
4what is the special report that is asked by the underwriter from the
officer of the insurer
HLV report Client
167
4
As per the norms of risk assessment by U/W both the parents of a
policy holder died in their early 30s due to Heart disease, what is the
risk assessed
Moral Hazard
168
4
Net premium is equal to
Premium plus interest earning Risk prem
1694
Where annually increasing flexible premiums operate under a life
insurance policy, what rate of increase will generally apply2.50%
170
4 The regulations issued by the IRDA, require that the decision on the
proposal must be conveyed to the proposer within
15 days of receiving the proposal 20 days o
1714
If bonus is given under a plan the additional premium added is known
asLoading
172 4 Certificate from the village panchayat Will be considered as standard ageproof Will be conside
1734
What will be lien amount in 3rd
year as compared to the 4th
year of
lien.It is higher
1744
When an individual gets older, chances of obtaining life and health
protection will beIncreases
175
4
What key event is most likely to prevent insurer from ensuring that
each insured person brings a fair premium to the pool for the risk
presented?
A policy Assignment A
176
4
HLV is used as a Yardstick to determine
Emotion Loss can be compensated for
The correct c
economical loss
of th
177
4 While calculating HLV along with future income, no of years of work,
increments in salary what is also to be taken in to account?
Inflation.
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178
4Vishal and sandeep applied for a health plan in XYZ Life Insurance
Company. Vishal is asked to undergo a medical checkup but Sandeep
is not asked to do so. What will be most possible reason?
Sandeep has taken another policy from
XYZ Life Insurance CompanyVishal
179
4
Mr. Kunal used to participate in Car race. While taking up the
Insurance policy he disclosed this information. What kind of hazard
does it refers to
Physical hazard Fraud
1804
If the sum assured remains the same, what will be impact of net
premium if the age of the policyholder increasesIt rises
1814 For which of the following reasons, the underwriter should ask
beyond agents confidential report.Physical Hazard
182
4
An insurance agent sold two policies to two different persons having
the same policy term. He declares the commission to each of them.
The commission of one of the policy is more than the other. What
should be the reasons for this difference?
Risk profile of both the policyholder
are differentAge of both
183
4
Compound reversionary bonus of 4 % will be calculated on
Sum assured Sum assu
184 4 A lien is generally used as a substitute to charging a high premium for a high risk for redu
185
4
In a process of completion of an insurance proposal, an agent finds
that the intention of the proposer was not genuine. In this case what
should the agent do?
Contact the Regulators Iss
1864
The documents likely to provide the underwriter of an insurance
company, the details relating to the previous subject application,which have been accepted as non-standard..
Quotation Request Form
187
4 In a case, the underwriter felt that the risk associated with the person
would decrease with time, then he would accept the case with
A clause
188 4 Maximum Life cover 20 times annual salary
189
4
What role an agent is likely to play in the process of underwriting?
To see that the proposal is accepted
by the underwriter at OR
To ensure that
190
4
In insurance, HLV is a known abbreviated term. How the meaning of
HLV can best be described in relation to a income earning proposer?
Sum assured is the HLV of the
proposer Yearly income
191
4
Out of all the factors that affect the needs of different life stages of
an individual, which is the most common factor that is likely to exist
throughout the life span of an individual?
Employment
192
4While calculating HLV along with future income, no of years of work,
increments in salary what is also to be taken in to account?1. Inflation.
193
4 Moral Hazard reflects the . 1. Intentions and attitude of Proposer. 2. Habits a
194 4 Income replacement methods equates Human Life Value (HLV) to 1. Future value of Present earnings. 2. Present
1954 Agent will be called as.. 1. Primary Underwriter 2.
196
4
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?
1. Rs. 2500/-
1974
The underwriter can get the required information about the proposer
in.....1. Proposal form. 2
1984 Mr. Ramesh works in a mining company. So he is exposed to.............. 1. moral hazard 2.
199
4 Lien is imposed on a policy when underwriter feels that...... 1. the risk associated might increase 2. the risk a
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200
4 What does the mortality tables contains ?1. Tables of death occurring in various
circumstances
2. Tables of det
201
4Mr. Guptha is recently detected with lung cancer. He would like to
take an insurance. What is your suggestion?
1. Time of death is uncertain, so
insurance can be given
2. Only lung is af
202
4
Mr.Santhosh working as a head master who is around 52 years had
requested for an Insurance cover for Rs.1 crore. He insisted that his
brothers son should be the nominee not his wife. Underwriter will
verify this case for which one of the following:
1. A . Physical hazard, as he is old
2. B. Moral haz
wife
203
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.
1. Financial Inspection agencies 2. Special
2044
The responsibility for classification and analysis of the proposal
form lies with whom?1. Risk Analysis Department 2. Classific
2054
In underwriting the economic value of the person is determined by
what?1. The occupation of the person 2. The fina
206
4 When an underwriter may consider Moral Hazard?1. An individual is proposing SA 15
times his annual income.
2. Insurance is t
207 4 Level Premium is calculated based on 1. Risk Premium. 2
2084 MPL abbreviates 1. Minimum Possible Loss. 2. M
2094
What is generally considered as a substitute to charging a high
premium for a high risk?1. Clause.
210
4Jyoti is submitting is copy of permanents account number card as
age proof for buying an money back plan .her age consider as a1. Non Standard Age Proof 2. S
2114
Which one of the following bonuses is given by insurer as an
incentive to the insured to for long term:1. Simple Revisionary bonus 2. Compo
2124
Ramesh bought an endowment plan for ten year he pays the same
Amount in every year is called:1. Gross Premium 2
213 4 Which one of the following is not source of information about the 1. Proposal Form 2.
214
4
Manish being a sole earning member of his family not insured himself
But looking for insurance for his son who is student .there is
possibility of
1. Physical Hazard 2
2154
An underwriter accepts the proposal with certain modified terms and
coditions,What it denotesLien
2164
Loading in a term plan is more likely beacause of Morbidity Mortality
217
4
In case of lien,the risk will classified as per underwriting standards
better than average risk,at the early
stage of life
better than the av
the life
218
4
Sarath is the client and looking for large SA, and the proposal to be
certified in the context of confidentiality report with relavent to moral
hazard,who is concerned person to do! ACR Sarath nominee
219
4If a person have motoring sport as hobby before taking insurance
policy,then what it implicates
Moral hazard is Sport and it influence
the risk of life
motoring sport is
hazard
2204
If a policy of term 30yrs is imposed with lien, what will be the lien
period 5 10
2214
A gave an offer to B and B made changes to the same and returned it
to A. It will be calledmodified acceptance
222
5
Hari wants a constant life cover till his 31st birthday. But he cant
afford to pay high premiums. The best suited products for him would
be
Pure Endowment Antic
2235
At the time of maturity , quarter of the SA is paid though the policy
was in forceEndowment
2245
Weekly premiums are generally collected for which type/range of
palnsBanca assurance
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2255
Mr A is planning to invest and his needs are :1 Protection for is
Income , during his absence 2.children educationChildren Plan R
226
5What tax rate,if any,will be applicable to a life insurance policy holder
for the maturity proceeds of a Rs 5000 life insurance policyNil
2275
A policy holder can pay the premium of Rs 5,00,000 and what could
be the max tax efficiency he is entitles to500000
228
5Ram has Invested Rs 5000 in PPF & Rs 1 Lakh in Life insurance
premium . In which he will get maximum Tax Benefit
Life Insurance Premium
229
5
Mr.Sumesh takes a policy and pays premium of 20000 with a sum
assured of 300000, what will be the tax implication on his maturity
amount
Fully taxable
230
5without submitting any form of claim,a life insurance policy holder
received payments of survival then what type of policy he is holdingULIP
2315
what is the special feature of ulip that ensures customer risk profile
for long time insurance policiesfund switching p
232
5Kamal is willing to pay 60000/- per annum for his ULIP policy. What
should be the SA in case he wants to avail the tax benefits1 lac
2335 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 asJoint life policy Has
234
5
After maturity In a Unit Linked Life Insurance Policy, customer does
not get received Maturity in a lump sum. What is the possibility of
receiving it in installments if it is not a annuity plan
He has switched his fund He has op
235
5
A customer gets periodic benefits without any claim and then when
he dies during the term of the policy, his nominees gets the sum
insured. What type of policy is this ?
Endowment
2365
For assessing the risk of a group health insurance policy, which of
the following information is the most criticalGroup lifestyle
237
5
Rakesh wants to buy a policy primarily for Risk Cover but at the end
of the term he wants to get at least some return. Under which policy
he will get these benefits
Endowment plan
238
5Prashant buys an Endowment Plan with a sum assured of Re. 100000
and wants to make use of tax benefit under the policy for whole SA.
How much premium would help him avail this benefit
Less than 10000 M
239 5 What is the ceiling of tax exemption under 80 c. 1 lakh
2405
The agent can use the benefit illustration document to show the client
the projected growth of investment at the rate of 6% and 10%
241
5Suresh has adequate reserve capital with him and he wishes to
protect his income, moreover he feels that if he does not die then he
would need the amount. What type of plan should he opt for?
Term Insurance Plan E
2425
Frequent switching is not advisable in ULIP plan because it increaseInvestment Risk
243
5Mr. Kartik got a job recently, he cant afford to pay to pay the higher
premium as of now but in future once he settles down with his job he
can pay higher premium. Which one will be the best plan?
Convertible Endowment plan Con
2445
What is the minimum Sum Assured allowed for Micro Insurance?5000
245
5
Pick the wrong answer. In a child plan:
Deferred date is a policy anniversary.On vesting date
t
2465
Which tax rate is applicable, in case of Client pays the premium of
5000/- and suffers illness before maturity?1. Nil
2475
For assessing the risk of a group health insurance policy, which of
the following information is the most critical1. Group lifestyle
2485 Term Insurance Plan will give. 1. Only Death Benefit. 2. On
249 5 Low risk products give.. 1. High Returns
2505 The income of an individual can be protected with the help of......... 1. a unit linked policy 2.
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2515
Mr. Shanth has got a pure endowment policy for 30 years for the sum
assured of Rs. 75,000,00/-. It can be paid to him......1. when he dies 2. when
2525
Flexibility like partial withdrawal and taking premium holidays is
possible with....1. Fixed deposits 2. Unit l
253
5Mr. Varun who own a multi chain company would like to take an
insurance. What will be the best option for him from the following ?1. He can take Surety insurance 2. He can take
2545
Mr. Kumar decides that his employees should have SSS scheme.
What type of plan is SSS?1. Salary saving Life plan 2. N
255
5Manmohan has recently purchased a house worth ` 50, 00,000 on
loan. Which insurance product you as an adviser will suggest?1. Endowment Plan. 2.
2565
To avail the income tax benefit at investment stage, premium should
be maximum1. 10% of S1.
2575
Rakesh has bought an Endowment, Money back, Term & Annuity Plan
he would like to avail Loan from:1. Endowment Plan
2585 In Group insurance plans contract of insurance between ? 1. Master Policy holder & insurer 2. Em
259
6The best way to overcome the problem of investment decision
depends mainly on peer influence isBy Canvassing wide peer group Seekin
2606
A person who has a temporary job Loss , where should he look for
Investing other than FDDebt Funds of MF G
261 6 RBI increased interest rates 2 times then the stock prices increase
2626
A person Wants to invest in a FD for Tax benefit , How many years he
has to take the term of the FD ?5 year
2636
aditya wants to take home loan and his monthly take home is 80,000
what as a best practice should be the maximum EMI20000
264
6
Ramesh has invested in Post office Monthly Income Scheme. The
interest rate was set at 6%. What will be the effect of rate in going
years.
Increase gradually De
2656
A person is holding 100 GOLD ETF certificates . How many grams of
GOLD does he Have ?10- 20 gms
2666
A customer while investing in to Recurring deposit or Cumulative
deposit what are the key factors which will matterTaxation freq
2676 A person planning to invest in Kisan Vikas Patra will go to Insurance Branch
268 6 If a person chooses Cumulative deposit than Recurring deposit,difference will be in frequency of interest calculation
2696
A policy holder pays identical premium amount for ULIP and EPF
where he gets max tax efficiencyin ULIP policy
2706
Investing in ULIP plans exempts a maximum up to what limit for
Income Tax50000
2716
Suresh wants to transfer his physical gold to gold exchange traded
fund,in relation to access,this change willnot hedge against Inflation Dec
2726 An Investor has invested in Debt mutual fund,he is ideally looking for Equity return
2736
With this type of deposit the bank pays the principal and the total
interest at the end of the termTraditional deposits Re
2746
In Cumulative bank deposit the interest that in normally compounded
on what basisMonthly
275
6
Amit has taken a G-Sec and has parted with it mid way as he required
the money with the intention of not getting the interest. What will he
get?
Discounted Value P
2766
Anand received post taxation 5% return on his fixed deposit in a
bank. If his net return is 3%, what can be the reasonAdministrative charge
277
6An elderly person wants to use tax efficient investment and invests in
senior citizen saving scheme. Its the impact in his taxation
He will get tax benefit up to 5000 He will g
2786
If a policy with premium of Rs 5000 has matured, how much will be
deducted when the maturity claim arisesNil
2796
When a person is investing in Debt Mutual Fund, what is the primary
objectiveGood Returns R
280
6 Payment/Investments in Kishan Vikash Patra under post office
schemes
Regularly with no fixed term Lump S
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2816
What is the similarity between Recurring Deposits & cumulative
deposits in a bankGuarantees
2826
Mrs. Sheela received some amount out of her husbands death. In
such a situation what will be her prime focus?Savings
2836
If a person want to maintain emergency funds the best place is a bank
orEquity market
2846
What is the advantage of converting physical gold assets to gold
ETFs.Liquidity M
285
6Suresh wants to transfer his physical gold to gold exchange traded
fund,in relation to access, this change will
Increase his liquidity Dec
2866
A client has his investment in equity shares. Agent advises him to
keep it in equity based mutual fund. This will make the riskDiversified
287 6 Bank interest is accumulated Monthly
2886
Bank savings account earn cumulative interest at what frequencyMonthly
2896
If I invest in a G sec partway(ignore periodic interest payments).I will
get on MaturityPrinipal amount
2906
Anand received post taxation 5% return on his fixed deposit in a
bank. If his net return is 3%, what can be the reason1. Administrative charge
291
6 Who will maintain Mutual Fund Schemes? 1. Mutual Fund Management Societies 2. Mutual Fu
292
6 Which is the primary saving need among all saving needs? 1. Insurance 2. P
293
6
Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this
amount for his daughters marriage which is going to happen with in
Nine months. He would like to get some returns from this money in
these 9 months period. What is the best option to park his money?
1. Insurance
294
6 The disposable income means......1. the surplus amount that can be
invested
2. the amount t
2956
Which of the following ways is easier for a person to take a saving
product?1. through individual agents 2.
296
6
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
2976
The concept of Risk diversification is applicable in which of the
following instrument ?1. Mutual Fund 2. Risk
2986
Ajay bought a share for Rs.110 and he sold when it was Rs.630.What
had happened to his share?1. Capital Appreciation 2
2996
Which of the following cant be ducted under section 80 c from
taxable income?1. Pension Funds 2. Pu
3006
Who act as an intermediary by offering a trading platform for buying
and selling of shares?1. Bombay Share exchange 2. Bom
3016 The savings needs of a particular individual is majorly determined by 1. Amount of disposable income. 2
3026
For his investment need, Ravi has parked funds in equity. The returns
from this form of investment can be categorized as1. High Risk.
3036
While calculating the expected returns from investments and savings,
an individual should make provisions for1. Taxation only. 2
3046 Time deposit account is issued by: 1. Post office
305
6
Pankaj want to save tax over and above the deduction allowed under
section 80C of the income tax act 1961, which allow deduction from
taxable income
1. Corporate Bond 2. In
306
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 2.C
3076
Sanjeev in a lumsum investment is getting benefit of multiple
securities Bonds
3086
If the client prefers bank fixed deposit rather than cumulative deposit
,due to what implication ? Investment Frequency Interest Rate
309
7
Omkar Started a pension policy with provider A but ended up in
taking the annuity payment from provider B.The result directly reflect
the which feature available with this policy
Commutation Option Diffe
310 7 what frequencies can one take annuity monthly,quarterly,half yearly, fortnightly
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3117
All ULIP pension plans have to give how much percentage as
Guaranteed returns6%
3127
Yash wants to take open market option in Pension plan. What is the
benefit?To save tax To swit
3137 Commutation option allows the annuity policy holder to with draw 25%
3147 commutation is a feature of which type of policy annuity
315 7 Waiting period in a health insurance policy is to address Age discrepancy Pr
3167 Under a health insurance policy,if a policy holder needs to avail his
no claim bonus, how can that be donecash encashment discoun
317
7
Danny is married and has two children aged 6 & 10 , His parents are
aged 68 &70 . Who all can be included in Family floater option of a
health plan
Only Danny D
318
7 Implication of Daily Hospitalisation benefit paln Fixed amt daily
3197
Rupkumar wants to take Commutation option. What is the maximum
amount he can withdrawone sixth
320
7Critical illness rider was taken and the rider benefit has been claimed
, the rider benefit now getsReduced the the base SA
3217 A person has taken a term insurance of 4 Lac. What is the maximum
Critical Illness Rider he can take1 Lac
322
7
Mr. Sharma buy term insurance policy along with Accident and
Disability benefits rider cost restricted upto the base premium of the
policy?
20%
3237
Mr.Ramesh invested Rs:50000 in pension policy, what is the
percentage he can avail as exemption in Income tax.33% Pension plan is
3247
In a Guaranteed annuity option of 5 years , the policy holder will get
annuity tillentire life term till 5 years and
325
7
The Premium on all riders put together should not exceed
10% of the premium on the base policy 20% of the p
326
7 How riders will help the customer in life insurance
allows policyholders to customize their
insurance cover with additional
benefits
Rid
327
7 In Daily hospitalization cash benefit scheme
The daily amount paid is fixed and will
never be more or less than the cost of
actual treatment
The insurance c
amount on a
admitted to t
3287
In term insurance if Critical illness rider claim happens then what will
happen to existing policyCI benefit will cease CI benefit reduc
329 7 Family floater health Insurance plan covers All members of a Family Hus
3307
How the Daily hospitalization cash benefit will provide benefits to
policyholder who is hospitalizedEntire charges are refunded Entire charges
3317 The premium for accidental death benefit rider must not exceed 15% of base policy premium 25% of
3327 Under the hospital care rider what is the payout made 10% of the sum assured
Specified amou
days the po
333
7
One person wants to take term plan for 20 lakh and wants to take
ADB rider, he is not sure of how much sum assured he needs to take
for ADB rider. What is your suggestion?
Needs to take experts suggestion Eq
334
7
What are the benefits to the policyholder Under Surgical care rider?
Number of days admitted in hospital &
surgery expenses in full
Number of days
ex
335
7
Health insurance policy holder takes treatment in a hospital which
doesnt have cashless facility. How the policy holder will get
benefited
Need to spend and Get claim from the
insurerNeed to a
3367
Health insurance rider and critical illness rider in classified underLife and non life respectively Bo
3377
In a pension plan illustration what are the parts which shows the
benefit for an annuitant.Insurance coverage
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338
7
What is commutation of installments
The lump sum withdrawal before
receiving periodic installments of
annuity
The lump sum
m
3397
Health Insurance is needed becauseLife is very uncertain Cost of healthca
340
7Rajan and Rajini has taken a Family Floater health insurance Plan of 4
lacs. They met with an accident and had a hospital bill of 6 lacs.
Which is true for this situation:
They would get the claim of 6 lacs
since the individual cover is 8 lacsThe claim w
3417
Open market option under Annuity policy would extend which of the
following benefit?Ensure Better annuity rate Inc
3427
Ajit and vijitare 2 friends paying same premium for health insurance.
Why ajit has higher tax exemption eligibility than vijit
Ajit is above 65years of age whereas
vijit is below 65Ajit is
343
7 While calculating retirement fund required for a self employed person
which of the following option will automatically be ruled out
Gratuity amount His
3447
In case of pension plans a guaranteed minimum return of 4.5 % is
applicable when the plan isIndexed
345
7
Which of the following is true regarding Family Floater HealthInsurance Plan?
A Family Floater Plan is the same as a
Individual Plan
Only self and s
3467
In what proportion is the cover in a Family Floater Plan shared?25% each
347
7
The rider which is given by the Insurance company pays for the
treatment costs in the event of hospitalization of the insured person
is called
Critical Illness Rider Hospi
3487
Mr. X is married with wife, 2 children and aged parents Health
premium is allowed forX only
349
7
Hospitalization rider has the following benefit:
Person receives fixed amt daily for no
of days in hospital
Person recei
350
7In a Health insurance plan what the particular feature is likely to cause
the Insurer to decrease the Renewal premium?Cashless facility
351
7
Daily hospitalisation benefit:
No of days spent in hospital multiplied
by Daily hospitalisation benefit
352 7 ADB rider premium cannot exceed 30% of the base premium
353
7
Customer has opted for a 5 yrs guaranteed annuity option. What will
happen to annuity, if the customer survives for 5 years after the end
of guarantee period?
1. paid up to 75 Yrs 2. annuity will
354
7
The rider which is given by the Insurance company pays for the
treatment costs in the event of hospitalization of the insured person
is called
1. Critical Illness Rider 2. Hosp
355
7Which of the following product not comes under Section 80 ( C ),
income tax act 1961. National Saving Certificates. 2. Equity
356
7Mr. Suresh purchase one pension plan and accumulated Rs. 9,00,000amount in his pension fund. He would like to utilize commutation
benefit before taking pension. What is amount Mr. Suresh can
withdraw as commutation?
1. Rs. 3, 00,000/- 2
3577
Customer has to pay the amount in regular intervals to create
purchase price or Pension Fund. We call this phase as..1. Collection Phase. 2. A
3587
Some Health Plans will give coverage for family members also. We
will call these plans as..1. Family Health Insurance Plans 2. Tota
359
7
Mr. Hitesh would like to get health coverage along with Life
Insurance. What are the options available to Mr. Hitesh to fulfill his
need with a little cost?
1. Taking Life Insurance plan with
Critical Illness Rider.
2. Taking H
360
7
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?
1. Young Unmarried. 2. Young
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361
7 Which of the following is not a feature of WOP rider?
1. The rider waives future premiums in
the event of the disability or death of
the policy holder.
2. This rider is
policy lapsing du
due t
3627
Mr. Ramakant is 35 years old. He has bought retirement plan for 20
years. This type of pension plan is known as..................1. immediate annuity
363
7Mr. Ranga has taken Critical Illness Rider. In which of the following
scenarios the insurance company will pay him......
1. When Mr. Ranga dies due to critical
illness
2. When Mr. R
364
7
Mr.Feroz has taken policy for critical illness worth Rs.1 lakh in health
policy. He also has a term plan worth Rs.10 lakhs. Mr.Feroz was
hospitalized after he was detected with cancer .Unfortunately he died
after 3 days of treatment. How the claim will be settled?
1. claim of critical illness and 10 lakh
from term policy will be settled
2. claim of hospi
for d
3657
Which one of the following cannot be covered under Critical illness
rider?1. Blindness
366
7Mr. Yash has taken an annuity on 25th August 201The benefit of the
plan will start from 25th August 201 What type of annuity plan is this?1. Guaranteed period annuity
367
7
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?
1. To purchase an accidental rider with
a savings insurance plan.
2. To purchas
savin
368
7The general need for purchasing a health insurance plan at an early
age results from which of the following factors?
1. The premium decreases with
increasing age.
2. The prem
369
7
The life expectancy in India is constantly improving and is well above
60 years. This also brings along challenges. These challenges can be
covered through
1. Equity. 2. B
370
7
Anand has purchased a pension plan which is nearing completion of
accumulation phase. He is in need of finances to make down payment
of car he wants to purchase. At the end of accumulation phase how
much he can make tax free withdrawal?
1. 1/5th of accumulated amount. 2. 1/3rd o
3717 Which of the following is not featured and benefit of rider? 1. Providing additional cover 2.
372
7 Gaurav bought an endowment plan for 20 year of 10 lac SA with ADBRider, died in road accident after 10th year how much money claimant
would be payable:
1.10 lac
373
7
Under what kind of Rider the insurance company pays the treatment
cost in the event of hospitalization of the insured, subject to term &
Condition of the rider.
1. Accidental death benefit (ADB) 2. C
3747
The risk of unemployment is covered with what benefit in the policy Rider
375 7 In Surgical benfit rider what would be the payout procedure Per day Hospital Cash Benefit Respecti Per day Hospital
3767
A Critical Illness claim is settled in a policy. The benefits of the policy
can be used for Only for Illness For Repairing ho
3777
If a health rider is taken in a policy, maximum rider premium can be
%age of base premium 25% 50%
3787
In a pension policy if agent says the cost would be 120% of present
value if he invests for 10 years, this is due to Charges Compounding
3797
Under daily hospitalisation cash benefit scheme the amount payable
is increased due to what reason Change in hospital Special consulta
3807
Insurance addresses the needs of people with risk of living too long
by..Extensive documentation Restricti
381
8Why do Self Employed Individual have the need to buy Medical
Insurance rather than People working in public SectorsPublic Sectors do not get Sick often
Public secto
Insuranc
382
8
Mohit has two kinds, one of 6 years and other 8 years.He is the
earning member and not having life cover. Before advising him to
take health policy, what he should be advised.
Health policy for child Hea
3838
Manoj a 26 year old is having 7 years old son. What will happen to his
monthly disposable income after 15 years of jobMarginally decrease Sing
384 8Samir is married and he has only one partner,with dependant parents
and no child,which should be his priority income protection inh
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385
8
The sole focus during a clients fact-find session was healthcare
requirements and estate planning. Which main life stage is he most
likely to fall into?
Young married couple Young
3868
A Couple has 7 years old son, What solution would they be looking
forRetirement
3878
In which of the recognized life stages an individual does not required
any protection coverChildhood
388
8Benefit Illustration given to a customer quantifies an amount by which
investment return is reduced. This reduction reflect the impact ofCharges
389 8 Life insurance is the most important for which age group Young
3908
Ashish is looking at different plans of insurance for protection at the
lowest premium. Which is the best plan for him?Term plan E
391 8 During Fact finding, rating is mentioned 3. This Indicates Risk apatite of client His
3928
Shailesh and ankit want to retire in the age of 65yrs. But shailesh
pays more monthly payment than ankit. Why?Shailesh is very older than ankit. Shaileshs incom
393
8During financial planning session if the agent finds out the following
needs, which one should be given the top priority. Needs: Income
protection, Childs education, marriage and emergency funds.
Childs education
394
8
Ajay and Vijay both are unmarried. Ajay has dependant Parent. Which
need Ajay must take care of on priority, although that will not be a
priority for Vijay?
Retirement plan Health
395
8
In the context of financial planning, how is the difference between real
needs and perceived needs best described?
Real needs are financial needs and
perceived needs are non-financial
needs.
Real needs are
needs are bas
3968
If a person is concentrating more on health plan and retirement plan
then at which stage of life is he in.Young unmarried
397
8Manish and Manisha is a married couple with one child. They want to
plan for savings, child education/marriage and their retirement and
protection of income. Which should be their lowest priority?
Marriage.
398 8 During fact finding, What will be the next step after Identifying clientsneed Quantify clients need Prio
399
8
Akash is an Unmarried person and employed with company ABC and
drawing a handsome salary. He has no liabilities. What kind of plan
can be suggested to him?
Money Back
4008
Sumit is having 2 children. He wishes to have health cover for himself
and his wife. Which suits him the most?A family floater
401
8 A client has got some funds and wants to provide for retirement and
margin money. What should be his priority
Margin money R
4028
While planning for retirement fund to calculate the required amount
needed at that time we should consider as priorityThe inflation rate T
403
8
Ajay is 35 years old. He wants good amount of life insurance cover
along with savings element with no defined term. Which plan should
be suggested
Endowment
4048
The income of an individual can be protected with the help ofa unit linked policy a
405
8
A married couple having 9 year old child have to consider life
insurance, health insurance, child investment & retirement plans for
their better future as a family but at present condition which aspect
should be kept at lowest priority?
Child Investment H
406
8
After completing a Fact Finding activity for a client, who is self
employed, the main reason why it is important to record the type of
work that he is involved in is
It affects the basic cost of coverDictate the
4078
Mr. Shyam is having 9 year old child. Which product is not to be given
priority?Health plan
408 8 What is the major reason for self employed to take insurance. Save Tax Fl
4098
What is the major reason for conducting fact finding exercise?Need analysis Unders
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410
8
Naveen, aged 32 years, has taken money back plan. He is a teacher
by profession. Naveen referred Prasad to Ram. Prasad is also
teacher. Ram who is an agent advised Prasad to take money back
plan as he is of same age (33 years). Is it the right advice? Why?
Yes, as Naveen and Ram are of same
age.No, custo
411
8
There is a relation between Age, Risk and Risk appetite. Which
relation is most likely to be acceptable?
Age increases, Risk increases and the
Risk appetite increases
Age increases
ap
412
8
Regular savings creates a fund to meet adverse incidents in future.
For drawing a financial plan for savings needs of an individual
without capital, what is the Fund which comes first?
Retirement fund E
413
8
A Proposer asks for double death benefit in an Endowment assurance
plan for 15 years. How his proposal will suitably be dealt with?
By offering another Endowment
assurance plan
By addition of
proposed E
4148
A provision for superannuation is normally taken a high need toa Public sector employee an
415 8 A person has 6 months of emergency funds.This is: Reasonable
416
8
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
4178 Perceived needs are those. 1. Short term needs. 2. Imagined t
418
8 Need analysis involves identifying1. Financial provision to meet
predictable and unpredictable needs.2. Capacity to
4198
Mr. Shanth is in his early 20s and has just started earning. His risk
appetite is expected to be.....1. high
4208 The younger the age of an individual..............their liabilities will be. 1. the lower
421
8
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.
1. Pre-retirement stage 2. Po
422
8
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.............
1. Real need 2
4238 Which are the two primary needs of any customer in any point of life? 1. Investment and retirement 2. Inves
424
8 The concept of need based selling involves 1. Selling what company wish to sell. 2. Selling w
425
8
Vijay, aged 30 years and married, is the sole bread winner for his
family. He is saving enough with banks.As an agent, which need you
prioritize first?
1. Retirement need. 2. T
4268
The Central Bank has recently announced the decrease in interest
rates. The prices of bonds are1. Likely to increase. 2. L
427
8During the fact finding session as an agent you should follow which
one of the following process?1. Prioritize, Identify & Quantify Needs. 2. Identify, Q
4288
Amit is looking for term insurance plan for protection of his family, he
is advised to approach to:1. Property Insurance 2
429
8 What do you mean by Double Income Family?1. When a person of the family is
involved in double businesses or jobs.
2. When both
mem
4308 In which of the following case there is no defined retirement age? 1. Public sector employees 2. Priv
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431
8 Which one of the following is true?1. Every individuals income and
expenditure pattern is same.
2. Every individ
pa
4328
Ram has set a provision for contigency which can survive for 6 month
.This amount is considered asAdequate
433
8 XYZ client wants to buy a car in future , however his financial
planning shows that he cannot afford car as of now .As a financial
planner you should
Explain him difference between real
need & perceived
Explain him diffe
434
8
Which is suitable life stage to buy Unit linked insurance plan?
Young Married with no children and
Single income family
Young Married w
income family
4358
X and Y are married, they are planning for estate planning, which life
stage do they belong to
Young married with single income no
kids Retirement
4369 objective of fact finding client need analysis P
437 9 Fact finding sheet allows the agent to Analyze customer needs Se
438
9Mr A has been approached by the Agent and on fact finding the score
is 3 , this represents
Low Risk Taking H
4399
To ensure that the premiums are paid out of a legitimate source of
funds cash is acceptedUp to Rs 50000
4409
With effect from 1st
July 2010 all insurers have to disclose in the
benefit illustration document the..Commission Pay to their agents D
4419
If the client accept the recommendation, then the agent should ask
the client..To pay the premium To fill
442
9 What should an agent do in order to understand the mental state of
client in respect to his investments in saving products
Fact finding Consult
4439
During product recommendation the agent should explain the product
in relation to
The needs that came to fore in fact find
processBene
444
9
An agent was explaining to his customer the guaranteed benefits of
the product. Which one of the following documents he would have
used to explain the same?
Fact Finding document
4459
Naresh is married and his daughter Sneha is 3 years old. Which plan
can he take?Term & Children Plan
446
9If the recommendation of the agent has been rejected by the client,
the agent should:
Ask the client to fill the proposal form Find out
447
9
Financial planning may not be taken as complete till inclusion of the
predictable needs of the clients. It is likely to emerge from the
incident of
Disability
448 9 Which one is not an asset House
4499 During Fact finding, rating is mentioned 3. This Indicates 1. Risk apatite of client 2. H
450
9Which type of questioning is very useful to gather information from
clients?
1. Closed Ended Questions 2. Ope
4519 Which is the not part of KYC norms? 1. Photographs 2.
452
9 During the recommendation stage the advisor needs to......1. recommend the products that best
meet the client's needs2. recommend
453
9In which of the following an agent will collect the customers
Personal data, professional data and financial data1. Fact Finding Sheet 2. Advis
454
9
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 2.
455
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 know about the earnings and Expense of Kishan?
1. Clients Profits and Withdrawals
from business
2. Clien
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456
9As an adviser why is it essential for you to carry out the financial
planning exercise with the prospective clients?
1. Individuals understand their real
needs and can prioritize them.
2. Individuals
different
457
9
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. 2.
458
9 The objective of Fact Finding is to 1. Gather Clients Information only. 2. Identify
459
9 To explain the benefits of a product, the insurance adviser should1. Provide the product brochure to the
client.
2. Provide Ben
460
9
Amit & Rashmi are newly married. Both are working couple. They
want to invest their savings of 100,000 annually to build corpus to
make down payment for their house 5 years from now. An adviser
sold than a unit link product to meet their requirement. This may
result in
1. Ruining the long term reputation of
company.2. Opportunity
461
9To prove ones identity in accordance with KYC process, the
customer needs to submit following document excluding .?1. An Age Proof 2.
462
9
Vinod being an insurance agent can offer assistance to his client
Ramesh by: 1. Providing him emergency fund.
2. Matching the p
463
9 Objectives of fact-finding do not include- 1. Identify needs 2. G
4649
Which one of the following documents distinguishes between
Guaranteed and non-guaranteed benefits?1. KYC documents 2. Benefi
465
9
After fact finding , Ram has presented the product to the client in te
second meeting . If client approves the recommendation what should
be the next xtep
Ask the client to sign the contract of
relationship
Check the clien
con
466
9
which of the following is the final stage of fact finding with the client? Discuss with proposer about future lifeprospects and changes Completion of Pr
467
10
a policy holder takes two insurance policy and the premium amount
is identical and he gets lesser commission in one of contract the
reason is likely to be
one policy has more SA ONE P
468
10
An agent reveals his commission received from insurance sales to
X&Y .Both plans are of same duration . Why is commission of X far
higher that that of Y
X has brought other limited premium
productY has brough
46910
Customer asks the agent to disclose the commission . The agent
shoulddisclose on demand
470
10The best way to prove that customer of a ULIP policy is given
awareness about the commission paid to the agent is
Ask the insurer to give a policy
endorsement letterFro
471
10 Churning is bad , based on which aspectAgents earn Lower Commission on
churningPolicyho
47210
what over riding criteria an insurance agent consider while proposing
a solutionrisk
473 10 Sales Target is reduced . Churning will Increase
474 10 Higher persistency to the insurer ensures what ? More productivity
47510
Persitency =has increased from 82 % in previous year to 86 % this
year . That meansmore lapsation
47610
What key impact will the agent have in low persistencyIncrease more business Increase
477
10
A customer surrenders his policy on Feb 2011. As per Agents code of
conduct, an agent can get a new policy from this customer from Feb
which year
2011
478
10 When should an agent disclose the commission which he will earn
from the product which he is going to sell
When the customer asks him After th
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47910
What is the disadvantage to the insurer in case the persistency fallsLower profits
48010
A low persistency ratio for the insurance company means that:
The customers are satisfied with the
products
The company is
481
10If a person already suffering from some disease and had not
mentioned it in the proposal form then as per IRDA code of conduct
the agent should
Notify the insurer of this matter Refuse to a
482
10If the client does not wish to proceed with the recommendations right
at the moment the agent should
Insist on taking the product right awayShould ask for th
r
483
10
During a fact finding process the need analyzed were income
replacement and childrens education. But the customer insists on
only a child plan for the time being and asks the agent to give him a
child plan. The agent should.
Do the fact finding exercise again Insist with th
484
10
After doing the need analysis of the client, the agent advised the
client to opt for TROP product. But the client refused. According to
ethical business practices what will the agent do ?
Enquire about the refusal from the
clientSugge
485
10 Which of the following act from agent will be specifically useful in
case of annual premium policies compared to monthly mode policies
Explaining charge structure Is
48610
As per the IRDA circular an insurance agent
need not disclose the amount of
commissionneed to disclos
48710 If the agent recommends the client to terminate an endowment plan
and take a whole life in order to earn higher commission its termed asSwitching Doing
48810
A low persistency ratio for the insurance company means that:
The customers are satisfied with the
products
The company is
489
10An agent offered his client that 75% of the first premium will be paid
by him out of commission. This offer of rebate on premium will be
treated as
a kind of gift for purchasing insurance
productsa rebate on the
490 10 Persistency can be improved by: Providing service to the clients
49110 Remuneration to Agents includes 1. First Year Commission 2. Re
492
10
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
1. Switching
493
10 An insurance agent is intermediary between. 1. Client and Insurance Company 2. Insura
49410 What is the factor which has influence on persistency? 1. Role of Agent 2.
495 10 For an insurance advisor churning is.............practice 1. good
496
10 Which one of the following factor does not help in the Persistency ?1. Regular reminders about the
premium to the customer
2. Flexibility
497
10
Mr. David an agent had helped Mr. Srinivasan to take an endowment
policy on Feb 200As srinivasan was finding it diff icult to pay the
premium, Mr. David had advised him to surrender this policy and to
apply for a lower premium policy. This is called as ?
1. Churning of the policy 2. Sur
498
10
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.
1. It will benefit both the company and
the customer
2. Reputation of
to off
499
10
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 ?
1. Raghav will be promoted to the next
level2. Ragh
500
10 The agents duties and responsibilities ends 1. When the clients policy is issued.2. When the
50110
When client declines the recommendation by the insurance adviser
even after resolving the concerns, the adviser should
1. Persuade the client to purchase the
policy.
2. Should ask
intereste
502
10Under what circumstances the surrender of a policy should be
recommended by the agent?
1. When a client have been sold the
right solution.
2. When a clien
goo
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50310 What key benefit high persistency ratios have on insurance adviser? 1. High renewal income. 2. Le
504
10Under which one of the following acts the maximum remuneration
that can be given to insurance agents described?1. Income Tax Act 2. In
50510 Which one of the following is not a benefit of persistency? 1. Helps the client in achieving goals 2. R
506
10
Satish as an insurance advisor while recommending to his client
Ramesh is not suitable policies
1. Satish should check the Ramesh s
commitment to the needs
2. Satish sho
recommend
507
10 Why a building long term relationship with clients is necessary?1. A satisfied client may be the source
of other potential clients
2. Reviewing f
nece
508
10
As per agents code of conduct,Agent Recommends protection
Plan,but the client insist on investment plan for the financial
planning,what an agent should do! Recommend both the plans
Propose an inves
him regard to dis
50910
Insurers observe high persistency ratio,then policy reserve increases Reserve decreas
510
10 After clearly identifying 2 needs from fact finding, client agrees to go
for one and gives the reason, what should the agent do now Do a fact finding again Refuse to procee
511
10
Nikhil was in the process of closing a unit linked plan sale and the
customer put a query which Nikhil does not know. What should Nikhil
do?
Decline to act for the client Direct him
51210 While on sales of an Insurance plan Mr. Had to show his license Due to the category of customer the c
51311
What is the maximum Time in which The insurer should settle a claim
when all documents are submitted3 days
514 11 A missing person is considered to be dead after 5years
51511
The delay in settling claim by any insurance co, as per IRDA norms
has to pay....% if the present bank interest rate is 5.2%7%
516
11A claim was submitted & in how many days company should ask for
additional documents if required
15 days
517
11
Vivek takes insurance policy and dies after 8 months . If the claim
needs to be excluded basis the exclusion cause what could be the
cause
suicide
51811
According to IRDA guidelines, how long does an insurance company
have to complete its investigation of a claim30 days
51911
Indisputability clause can be enforced by the insurance company
during theFirst five years of policy First
52011
Incase of presumption of death
Not necessary to pay premium until
court decreeNecessary to p
521
11
If a valid claim is delayed by the insurer then the interest for the same
will have to be paid by the insurance after how many days from the
date of admission of the claim?
10 days
52211
Under the IRDA guidelines for Claim settlement, any queries or
additional documents can asked from the claimant within5 days from the receipt 10 da
52311
A claim was paid in a policy and it was advertised in the newspaper
also. This indicates that the policy was.It was assigned.
52411
An indemnity bond was signed in a policy when the claim was paid.
This indicates that the policy was.It was lost.
52511
Which of the following falls under voidable contract?Misrepresentation Lack
526
11
As per claims assessment process if a claim arises within a few days
of the start of the policy which factor should the insurer check in the
first place?
Age admission Disclo
527
11
Ajay has bought an endowment insurance plan with a cover of Rs.
10, 00,000 for a term of 15 years. Ajay died after 4 years. Insurance
company will not treat this claim as ________ claim.
Normal
528
11
Ranjan took out a 20 years Money Back plan on his own life 5 years
ago. Survival benefit was due on 4.5.2011. Ranjan died on 6.5.2011
without receiving the survival benefit amount. What will be the
legitimate procedure to pay out the claim?
Survival claim will not be paid and only
death claim will be paid to the Nominee
Both the surviva
be p
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529
11A life assured died after 40 days from the payment of his monthly
premium. If there be any claim, how the claim will normally be dealt
with?
A regret letter will go intimating that
nothing is payable as death claimFull sum assur
53011 Which of the following falls under voidable contract? 1. Misrepresentation 2. Lack
531
11
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 2. He has o
53211 Incase of presumption of death
1. Not necessary to pay premium until
court decree2. Necessary to
53311 What is meant by a claim under insurance policy?
1. A demand to fulfill the policyholders
obligations.2. A demand to
53411 Who will take the initiation to settle the maturity claim process? 1. Client
535
11 Which is the right statement regarding claim enquiry?1. The insurance company makes
enquire only on death claims.
2. The insuranc
ma
53611
Mr. Chintamani has taken a policy from ABC Company on 2nd March
2010, but unfortunately he died on 18th August 201 His death claim isconsidered as..........
1. Normal death claim 2.
53711 Detailed Investigation will be triggered in case of...... 1. Maturity claims 2.
53811
In insurance, if a