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RAP INSURANCE
EXAMINATION
10

100% PASS 100% MARKS

Er. KAMAL RAJWADE (MCA, NIT KURUKSHETRA)

Q1. What is the maximum cover that can be provided in micro-
insurance?

Ans. 50,000

Q2. The Non-Government Organisations (NGOs) help the insurance

industry immensely in:

Ans. Promotional activities

Q3. While recommending a solution to the client the advisor should

establish the link between client needs and

Ans. product features

Q4. ........ means before loss what was his financial status and for the
same financial status to bring him is called:

Ans. An indemnity

Q5. The constituents who participate in deeper penetration of micro

insurance and awareness of insurance in rural areas are

Ans. he Regulator � IRDA

Q6. In life insurance industry which mechanism operates so as to

enable the individuals to reduce the impact of risks

Ans. Transfer of risk

Q7. Reinsurance means

Ans. To do financial planning according to the needs of the client

Q8. In fact finding why client's income analysis is necessary

Ans. Purchase of additional insurance by an insured person

Q9. 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?

Ans. Life insurance

Q10. Which of the following is not a benefit of online insurance sales?

Ans. Benefit of low cost are passed on to Agents

Q11. Bancassurance as envisaged in India means

Ans. Designing and marketing of insurance products by commercial

banks

Q12. With profit policies can be given to

Ans. Individual

Q13. The fund governed by the rules and regulations of the Employees
Provident fund and Miscellaneous provisions Act 1952 When will it be
paid to the employees

Ans. any of the above

Q14. The Non Government Organisations (NGO) help the Insurance

Industry immensely in

Ans. Linking buyers and sellers

Q15. Which of the following statement does not characterize the

Professional Insurance market

Ans. Will have profit making as its only motive.

Q16. The person seeking insurance policy is called as

Ans. Policyholder

Q17. How long a quotation will be valid

Ans. 15 days

Q18. When does cooling off period begin in an insurance policy?

Ans. When premium is paid

Q19. Samir is married with dependant parents and no child which

should be his priority
Ans. inheritance planning

Q20. The object of a contract should be to create

Ans. A legal relationship

Q21. Mrs. Sheela received some amount out of her husband�s death.
In such a situation what will be her prime focus?

Ans. Insurance

Q22. Insurance Agents are

Ans. Intermediaries

Q23. [Link] who owns a multi-chain company would like to take an

insurance. What will be the best option for him from the
following?

Ans. He can take company insurance

Q24. Ajay and Vijay both are unmarrie Ajay has dependant Parent.
Which need Ajay must take care of a priority although that will not be
a priority for Vijay?

Ans. Health insurance for parents

Q25. [Link] has taken an endowment policy of 15 years with ABC

insurance company. He has paidpremium for 4 years and he could not
pay premium for 5th and 6th year. In the 7th year he approaches the
company to renew the policy. Now which of the following options is
applicable?

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

Q26. Insurance c option because:

Ans. Insurance products offer flexibility to the policyholders

Q27. The principle of utmost good faith puts a duty of disclosure on

insurers also�. With respect to this statement identify the most
appropriate statement:
Ans. The agent should disclose the commission also if asked by the
customer

Q28. An Insurer advertises through daily news paper. What type of

marketing is this ?

Ans. Direct Selling

Q29. Amit is looking for term insurance plan for protection of his
family he is advised to approach for:

Ans. Life Insurance

Q30. In which of the recognized life stages an individual does not

required any protection cover

Ans. A. childhood

Q31. Mohit has two kinds one of 6 years and other 8 years. He is the
earning member and not having life cover. Beofre advising him to take
health policy what he should be advised?

Ans. Health policy for child

Q32. Mr. X fact find shows he need a term insurance for his future
income protection A family health plan to cover medical needs a
children�s plan to cover his son�s education and a endowment
policy for his daughter�s marriage. Which of these is the first
priority?

Ans. Medical Insurance

Q33. What is the maximum level of complaint that can be considered

and taken action by ombudsmen

Ans. 20 Lac

34Q. Which of the following is not a type of insurance organization?

Ans. Ombudsman

35Q. The constituents who participate in deeper penetration of micro-

insurance and awareness of insurance in rural areas are:
Ans. Non- Governmental Organizations

36Q. In life insurance business if a person is working in calculating

premium rates of insurance products then he is mostly likely a
member of:

Ans. Insurance institute of risk management

37Q. A Risk transfer provides a sense of:

Ans. Financial security

38Q. _________ is an insurer for the insurance company:

Ans. Reinsurance company

Q39. A policy holer submits cancellation of his term insurance policy

the insurer accepts the form and fails to give the benefits and the
policy holder writes to IRDA post which the settlement should be
within

Ans. 30 days

Q40. The regulations issued by the IRDA require that the decision on
the proposal must be conveyed to the proposer within

Ans. 15 days of receiving the proposal

Q41. Mr. Mahesh is a software engineer. He has taken a term

insurance for Rs. 30,00,000/- for 30years. This is an example for:

Ans. Risk transfer

Q42. Currently, major percentage of insurance sales in India takes

place through

Ans. Individual insurance agents

Q43. Karthik written to his insurer about non settlement of a maturity

claim as per regulations the insurer has to reply to this within how
many working days

Ans. 10
Q44. I.R.D.A was incorporated as a Statutory body in:

Ans. Dec-1999

Q45. What facility do insurers use to cover risks beyond their

exposure limits:

Ans. Both a & b

Q46. One of the most sought after advantage of Insurance is:

Ans. Tax benefits on payment of premium and all the pay-outs

Q47. Vinay doesn’t want to take insurance on himself. He feels that

his family will survive with the funds available in the bank and
monthly rentals received from village. This comes under Risk
______:

Ans. Retaining

Q48. Why is Insurance required?

Ans. All of the above

Q49. The main role of an underwriter in a non-life insurance company

is normally to:

Ans. assess the acceptability of particular risks

Q50. The concept of insurance involves a transfer of:

Ans. Risk

Q51. How are perils and hazards normally distinguished under term
insurance policies?

Ans. Perils are risks that policyholders will die before a specified date
and hazards are factors which could influence that risk.

Q52. In insurance terms, the risk of suffering a disability is best

described as what type of risk?

Ans. Financial.
Q54. For a household insurance policy, insurable interest need only
exist at outset and at what other point?

Ans. The date a claim occurs.

Q55. Rahul is employed by Sunny. In respect of this employment,

Rahul automatically has insurable interest in Sunny’s life up to what
limit, if any?

Ans. Rahul’s monthly salary.

Q56. Akshat is a relatively cautious person. In insurance terms, this

will normally increase the likelihood that he will:

Ans. require insurance cover

Q57. Arun started a 20-year term insurance policy. Once established,

when, if at all, is the insurer next entitled to ask him for proof of
continuing good health?

Ans. When a lapsed policy is revived.

Q58. Once an absolute assignment is effected under a life insurance

policy, who will be the titleholder(s) of this policy?

Ans. The assignee in all cases.

Q59. How long is the free look-in period under a term insurance policy
from the date of receipt of the policy document?

Ans. 15 days.

Q60. A life insurer issued a quotation on 10 February, guaranteed for

14 days, which was accepted by the customeron day 10.
Consequently, the insurer can only decline this risk if the:

Ans. material facts change.

Q61. A policy document for a money-back policy includes the

statement ‘the proposal and declaration signed by the proposer form
the basis of the contract’. In which main section of the policy
document will this normallyappear?
Ans. Preamble.

Q62. The consequences of these risks which will affect specific

individuals or local communities in nature are called as?

Ans. particular risk

Q63. Pooling of insurance applies to?

Ans. All Type insurance (Only life insurance, only non-life insurance)

Q64. Both the parties to a contract must agree and understand the
same thing and in the same sense which is called

Ans. Consensus ad idem.

Q65. A contract exists between insurer and proposes when

Ans. A proposal has been accepted by insurer.

Q66. A life insurance policy can only be made paid up if what policy
feature exists?

Ans. Savings element.

Q67. The main reason why a life insurance proposal form often asks
for the proposer’s height is to enable a reasonable comparison with
the proposer’s:

Ans. weight.

Q68. The concept of indemnity is based on the key principle that

policyholders should be prevented from:

Ans. profiting from insurance.

Q69. Where annually increasing flexible premiums operate under a

life insurance policy, what rate of increase will generally apply?

Ans. 5.0%

Q70. The amount paid out by the insurer under a 30-year life
insurance policy exceeded the sum insured plus revisionary bonuses.
The excess is likely to result from?
Ans. terminal bonus.

Q71. What normally happens to the sum insured under a life insurance
policy once the period of the lien expires?

Ans. It increases.

Q72. The main protection need of a 19-year-old is most likely to be:

Ans. self-protection.

Q73. The need for investment advice from an insurance agent

normally results from what overriding key factor?

Ans. Lack of market knowledge.

Q74. When undertaking financial planning for individuals without

capital, what savings need is likely to beaddressed in every single
case?

Ans. Emergency funds.

Q75. Naveen is addressing his income needs by investing directly in

corporate bonds. In what form will he receivethis income?

Ans. Interest payments.

Q75. Raunak recently arranged a life insurance policy under which he

is classed as the master policyholder. This addresses his role as:

Ans. an employer.

Q76. Nikhil is looking for tax-efficient savings methods for his

disposable income. He is considering an equity-linked savings
scheme, national savings certificates and an endowment insurance
policy. Premiums for which of these investments are allowed to be
deducted from his taxable income?

Ans. The equity-linked savings scheme, the national savings

certificates and the endowment insurance policy.
Q77. An investor holds a wide range of shares. If the Reserve Bank of
India announces a series of significantinterest rate increases, the
prices of these shares are most likely to

Ans. decrease.

Q78. The changes in healthcare costs over recent years has had what
general impact on healthcare insurance?

Ans. A rise in the need for cover.

Q79. What is the main objective of taking the life insurance policy?

Ans. Protection

Q80. Any assets, which are no longer suitable or are earning fewer
returns than expected, should be?

[Link] in for investment into other assets.

Q81. The business of insurance is connected with?

Ans. Economic value of assets.

Q82. Appointer’s Role

Ans. When nominee is minor

Q83. Payment of premium and sum assured are laid down in

Ans. Operative clause

Q84. Which clause lays down the mutual obligation the parties
regarding, payment of premium by life assured & payment sum
assured by?

Ans. Operative clause

Q85. The general need for a pension policy results from the existence
of what key problem?

Ans. Anticipated fall in income.

Q86. The sole focus during a client’s fact-find session was healthcare
requirements and estate planning. Which main life stage is he most
likely to fall into?

Ans. Retirement.

Q87. Apart from the salary level, what other key feature of Alok’s job
is likely to have a major impact on the level ofhis pension, life
insurance and health insurance needs?

Ans. Whether the job is in the public or private sector.

Q88. In the context of financial planning, how is the difference

between real needs and perceived needs bestdescribed?

Ans. Real needs are actual needs and perceived needs are based on
a client’s thoughts and desires.

Q89. To fulfil the ‘know your customer’ procedures, at what stage in

the financial planning process is theinsurance agent most likely to
request a copy of the customer’s photograph?

Ans. At the end of the presentation meeting.

Q90. An agent has recommended an investment product with non-

guaranteed benefits. The benefit illustration passed to his client will
therefore use assumed annual growth rates of:

Ans. 6% and 10%

Q91. The main purpose of including commission details in the

documentation to clients is to increase:

Ans. transparency.

Q92. Yash pays health insurance premiums for himself, his wife and
his two children aged 13 and 8. Premiums for which of these
individuals will qualify as deductible from Yash’s taxable income?

Ans. Yash, his wife and both his children.

Q93. A client has been recommended a low-risk investment product

by his insurance agent, but the client insiststhe agent arranges for
the money to be invested in a higher risk product. What action should
the agent take?

Ans. Carry out these instructions, but document that this contradicts
the recommendation.

Q94. An insurance agent has advised a client to surrender an existing

investment product and start a newinvestment product. What key
indicator should be used to determine whether this advice was
ethical?

Ans. The best interests of the client.

Q95. What key impact will low persistency levels have on insurance
policyholders?

Ans. A reduction in benefits.

Q96. A claim under a term insurance policy is submitted by an

individual who has substantially understated his [Link] an
alternative to paying out the full claim the insurer is most likely to
take what action?

Ans. Reject the claim on the grounds of misrepresentation.

Q97. On the maturity of an endowment policy, a reduced sum insured

is paid out. What is the most likely reasonfor this?

Ans. The policy was made paid up during the policy term.

Q98. What key event is most likely to prevent insurers from ensuring
that each insured person brings a fairpremium to the pool for the risk
presented?

Ans. A fraudulent claim.

Q99. An insurance agent served an insurer continually and

exclusively for 20 years, after which he retired fromwork. In
accordance with Section 44 of the Insurance Act 1938, renewal
commission due to him after the termination of his agency can only
be withheld if:

Ans. there is fraud involved.

Q100. Legislation gives which body the power to specify a code of
conduct for surveyors and loss assessors?

Ans. Insurance Regulatory and Development Authority.

Q101. What key legacy has been left by the activities of the Tariff
Advisory Committee?

Ans. Standard policy wordings.

Q102. Raju died 5 years before the end of his 30-year endowment
insurance policy. What factor most likely causedthe insurer to
investigate the claim using the early death claim procedures?

Ans. The policy had lapsed and was revived shortly before he died.

Q103. Apart from conducting a comprehensive fact-find, the other

main action that an insurance agent can take atoutset to minimise
the risk of subsequently receiving a customer complaint is to:

Ans. provide detailed disclosures.

Q104. An award made by the Insurance Ombudsman will only be

binding on the insurer if the:

Ans. complainant accepts this decision.

Q105. A policyholder asked his insurance agent for guidance on

submitting a claim for the maturity benefit under hislife insurance
policy. Due to pressure of work, the agent declined to assist.
Consequently, this action is deemed to be a breach of the:

Ans. Insurance Regulatory and Development Authority’s Code of

Conduct.

Q106. During the process of applying for life insurance, the customer
discloses confidentially to the insurance agentthat he had a mild
stroke four months ago, however this was NOT mentioned on the
application form. In accordance with the Insurance Regulatory and
Development Authority’s Code of Conduct, how should the insurance
agent deal with this information?

Ans. Notify the insurer of this matter.

Q107. The plan which provides only maturity benefit and no death
cover is called

Ans. Endowment

Q108. Which feature of an insurance policy will address the problem

of Inflation?

Ans. Increase in Bonus

Q109. 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

Ans. Term plan

Q110. What are the variants of Endowment Plans?

Ans. Money back & Term insurance

Q111. The section of the Income Tax providing exemption for

maturity benefits received under a life insurance policies is

Ans. 80C

Q112. Which types of needs assume top priority?

Ans. Low priority needs

Q113. A group of people insured in a policy . They belong to which

category

Ans. Employees

Q114. During a fact finding process the need analyzed were income
replacement and children�s 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

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

Q115. State which of the following statements are correct?

Ans. both statements are correct

Q116. Rahul has taken a joint life policy with his wife. Who is
responsible for premium payment ?

Ans. Both a & b

Q117. If the client does not wish to proceed with the

recommendations right at the moment the agent should

Ans. Should ask for a future date from the client

Q118. If the client accepts the recommendation then the agent

should ask the client

Ans. All of the above

Q119. An agent should disclose the commission if

Ans. the commission is low

Q120. Checking Clients' commitment to needs means

Ans. Reminding Clients of needs that were agreed during Fact find
process

Q121. What are the key aspects of advisors do for better persistency?

Ans. Selling product as per need & policy servicing

Q122. Churning is bad based on which aspect

Ans. Insurance companies get good branding

Q123. Micro insurance is transacted by

Ans. Life Insurers only

Q124. What key impact will the agent have in low persistency?

Ans. Will have impact in his commission

Q125. Which of the following cannot be insured?

Ans. Speculative risk

Q126. 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:

Ans. Occupational Hazard

Q127. On 6thAugust, there was a typhoon. [Link] who had

insurance died in typhoon. Now how willthe insurance company
categorise this risk?

Ans. Under the category of Pure risk

Q128. Law of large numbers is worked out by which of the following?

Ans. Pooling of risk

Q129. Pure risks are those risks where there is:

Ans. Loss or no loss

Q130. The type of risk that can be insured against is:

Ans. Pure Risk

Q131. [Link] used to participate in Car race. While taking up the

Insurance policy he disclosed this information. What kind of hazard
does it refers to:

Ans. Physical hazardorOccupational HazardQ. Which statement is

correct?

Ans. lung cancer is peril and smoking is a hazard

Q132. There are two different groups of 100 people. The first group
isbetween 30-39 years of age. Of these one person dies before the
age26 Probability of death in this case is 1%. The second group is
aged 60-69 years of these 15 die before the age of the probability of
death in this case is 15%.

Ans. This shows that frequency of death is high in higher age

Q133. Insurance contract is valid because?

Ans. Contract enforceable by law

Q134. Which of the following types of insurances is not a contract of

indemnity:

Ans. Life Insurance

Q135. Ajay does not consume alcohol for a month to not detect during
medical test is:

Ans. Concealment of a material fact

Q136. Amit is illiterate. He wants to take policy his friend Surya help
him in knowing the question and filling the proposal form. What extra
requirement is required in this case:

Ans. Left thumb Impression of Amit along with a declaration of his

friend

Q137. Insurance companies apply law of _________ to determine the

cost of total annual claims:

Ans. Large numbers

Q138. Mr. Josh was filling the proposal form but as his mother was
sitting beside him even though hedrinks and smokes he ticked “NO”
in smoking & drinking column of proposal form. This indicates?

Ans. He has breached the duty of disclosure by concealing the facts

Q139. Which of the following is not a type of bonus?

Ans. Inception bonus

Q140. The most important features of a Valid contract are:

Ans. Consideration and legality of object

Q141. 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 traveling and a saving plan. What
suggestion would you give him as an agent?
Ans. To purchase an accidental rider with a saving insurance plan.

Q142. To sale focus during a client’s fact find session was healthcare
requirements and estate planning.

Ans. Retirement

Q143. In which at the recognized life stages an individual does not

require any protection cover

Ans. Childhood

Q144. 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.

Ans. Health insurance for parents

Q145. Mr. Nikhil makes an offer of Rs 20 lacs SA to Insurance Co.

XYZ. Inresponse to this Insurance co. XYZ offers a SA to the tune of
max. Rs10 lacs (counter offer). At this stage Nikhil and Company X
can enterinto a valid contract?

Ans. Nikhil and Insurance Co. can enter into a valid contract if Nikhil
unconditionally accepts the offer.

146Q. Policy taken by husband and wife jointly is called as…..:

Ans. Joint life policy

147Q. [Link] filled the proposal form but before submitting to the
company he discussed with theagent that he is not sure whether he
can pay for 15 years. This attitude affects which part of
thecontract?

Ans. Capacity to contract

148Q. Human life is exposed to different type of risks. Which of these

risks is not currently covered by Indian insurers?

Ans. Unemployment not caused by disability

 149Q. Rishabh Agarwal is a 40 years businessman. He leads a
healthylifestyle. Every morning he practices yoga and abstains from
smoking tobacco and alcohol. There is a family history of diabetes
and both hisparents suffer from it. But Rishabh himself is not
diagnosed withdiabetes. Based on this case which of the following
statement is true?

Ans. He can be given insurance as he maintains a healthy lifestyle

150Q. Which of the following cannot be insured?

Ans. Speculative risk

Q151. If a person consumes alcohol regularly and does not disclose

the same in proposal form - what is the type of hazard?

Ans. Moral

Q152. In insurance terms the risk of suffering a disability is best

described as what type of risk?

Ans. Financial.

Q153. Akshat is a relatively cautious person. In insurance terms this

will normally increase the likelihood that he will:

Ans. require insurance cover

Q154. Level of risk is determined by:

[Link] probability of the occurrence of a certain event and the

extent of losses likely to Ans. be suffered due to the occurrence of
the event.

Q155. Which of the following risks are insurable?

Ans. Financial Risk

Q156. Insurance Companies provide cover only for:

Ans. Specified Risks

Q157. Insurance relates to:

Ans. Pooling of risk

Q158. Loss of Life needs:

Ans. To provide a steady source of income to dependants after death

Q159. A hazard can be defined as:

Ans. A condition that either increases the chance of a peril happening

or cause its effect to be worse

Q160. Which of the following is individual’s assets?

Ans. His properties

Q161. The type of risk that can be insured against is:

Ans. Pure Risk

Q162. Which category of insurance has nature of low frequency but

high severity?

Ans. Airline Insurance

Q163. Law of large numbers is worked out by which of the following?

Ans. Pooling of risk

Q164. Policy document is:

Ans. Legal contract

Q165. In life insurance which principle does not apply?

Ans. Insurable interest

Q166. Kailash is working with an MNC and has a co-worker Ramesh

who helps him in his work. In the absence of Ramesh Kailash’s work
would suffer significantly and he has to work on his own to complete
his assignments. Which of the statement is true with regard to

Ans. Insurable Interest exists between Kailash and Ramesh

Q167. What amount of insurable interest does an individual have in
his own life?

Ans. Up to the sum assured taken in the plan

Q168. The insurance company issues ________________ after accepting

proposal

Ans. First Premium Receipt

Q169. The __________ of the policy states that the proposal declaration
signed by the proposer forms the basis of contract:

Ans. Preamble

Q170. Certificate from the village panchayat:

Ans. Will be considered as non-standard age proof

Q171. What are the 2 types of Age proof documents?

Ans. Standard & Non-Standard

Q172. Who fills up proposal form?

Ans. Proposer

Q173. When the life assured and the policyholder are one and the
same how the policy will be known?

Ans. Policy on own life

Q174.____________ refers to the transfer of the title rights interest of

the insurance policy

Ans. Assignment

Q175. Appointee's role

Ans. when Nominee is Minor

Q176. Even though the insurer may avoid the contract entirely “ab
initio” for the reason of misrepresentation or non-disclosure the
Insurance Act 1938 gives a protection to the policy holder making the
policy in disputable after 2 years (excepting for fraud)

Ans. Sec. 45 of the Insurance Act 1938

Q177. 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
amountfrom his individual policy. Also, he placed the request with his
company. His company has rejected the claim. What type of contract
is this?

Ans. Deemed contract

Q178. Nomination can be in favor of how many people?

Ans. It can be any number

Q179. Insurable Interest is deemed to exist in which of the following

relationship?(i) Husband and wife (ii) Parent and children (iii)
Employer and employees(iv) Brother and Sister.

Ans. (i), (ii) and (iii)

Q180. If a policy holder is not satisfied with terms and conditions of

the policy which she/he has received, then there is an option to return
policy for cancellation within...days from the date of receipt for policy
by policyholder.

Ans. 15Days

Q181. Types of assignment:

Ans. Absolute & Conditional

Q182. Material facts are those:

Ans. That would influence the decision of the underwriter in

accepting the risk

Q183. The main supplier of the material facts is:

Ans. The proposer as he is alone in the possession of full information
about himself

Q184. Duty of disclosure of material information rests

with:

Ans. Insured and Insurer both

Q185. In case of life insurance, the insurable interest should

exist:

Ans. At the time of taking the policy

Q186. A & B in enters into a Contract & B accepts the Contract with
a condition. Will this be considered as a Contract Between A& B?

Ans. Contract is created only when the acceptance is unconditional.

Q187. Proposal form & the Declaration signed by the proposer are
called of the contract:

Ans. Basis

Q188. In which kind of policy the insurable interest should exist at

the time of claim:

Ans. Marine insurance

Q189. When does insurable interest exist in a life insurance

contract?

Ans. inception of the contract

Q190. ______________ comes into existence when one party makes an

offer which the other party accepts unconditionally:

Ans. A Contract

Q191.. If a contract is signed by a 15 years old boy this contract will

be:

Ans. Invalid
Q192. Mr. ABC buying Term insurance policy insurer should mention
Ombudsman address in which part of policy document?

Ans. Information statement

Q193. If a contract is signed by a 15 years old boy this contract will

be:

Ans. Invalid

Q194. The condition that the policy holder should pay the premiums
regularly is mentioned in:

Ans. All of the above

Q195. For Quarterly mode of payment days of grace is:

Ans. 30 days

Q196. Both the parties to a contract must agree and understand the
same thing and in the same sense which is called:

Ans. Consensusadidem

Q197. Who should attest the thumb impression on the proposal form?

Ans. Proposer himself

Q198. The process of making changes in the terms and conditions of

the policy once it is issued is called:

Ans. Amendments

Q199. Utmost good faith envisages a positive duty to disclose

accurately all information that are:

Ans. Facts which are material to the risk being proposed

Q200. The process of making changes in the terms and conditions of

the policy once it is issued is called:

Ans. Endorsements
Q. When an interim bonus is paid under with profit policy This
normally represents a bonus covering what period:

Ans. Previous valuation date to claim date

Q. The insurance contract is mainly an

Ans. Agreement enforceable by law

Q. Which of the following falls under voidable contract?

Ans. Fraud

Q. A policy has two nominations. What amount should be given to the

two nominees?

Ans. There is no specified limit like that

Q. Till what period is interim bonus valid:

Ans. Till the next declaration of bonus

Q. Insurable interest on one's own life limited upto:

20 times of Gross Annual income

Ans. Unlimited

Q. Except Surrender how one policy holder can transfer money to a

third party barring Nominee?

Ans. By doing Assignment

Q. Two people with same term one person had more premium than
other because:

Ans. Health detioration

Q. Moral Hazard reflects the:

Ans. Habits and hobbies of proposer

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

Ans. All of the above

Q. Annual premium of an insurance product is Rs. 32,000 with 4%

loading on Quarterly mode of payment. What is the quarterly
premium?

Ans. 8,320

Q. Proposal decision to be communicated to the client within

Ans. 30 days

Q.

Annual premium of an insurance product is Rs. 32 000 4%

loading on Quarterly mode of payment what is the quarterly
premium

Ans. 8320

Q. Insurer appoints a candidate of this professional qualification who

decides the amount of premium in inusrance products

Ans. Advisor

Q. 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

Ans. increasing annuity

Q. Income replacement methods equates Human Life Value (HLV)

to:

Present value of future earnings

Q. If the annual premium for a plan is 32000 and a frequency loading
of 4% is added in a quarterly premium what is the instalment premium
that needs to be paid.

Ans. 8,320

Q. A human being is:

Ans. All of the above

Q. What is the special report that is asked by the underwriter from

the officer of the insurer?

Ans. Client confidential report

Q. Mr Ramesh invested Rs 50000 in pension policy. What is the percentage

he can avail as exemption in income tax

Ans. pension plan is eligible for tax exemption u/s 80C

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

Ans. 15 days

Q. What role an agent is likely to play in the process of

underwriting?

Ans. To give truthful report to the insurer all about the life to be
insured

Q. Who is the primary Underwriter?

Ans. Agent

Q. If the annual premium for a plan is 32000 and a frequency loading of 4%

is added in a quarterly premium what is the instalment premium that needs
to be paid

Ans-

Q. Mr Sunil is doing premium calculation for his company as per which

authority is his profession related to:
Ans. Council of Actuaries

Q. In a 20 year with profit policy persistency Bonus is paid at the end

of:

Ans. 20th year

Q. Two friends have taken same policy but their premiums are
different. Why?

Ans. All the above

Q. Compound reversionary bonus of 4% will be calculated on:

Ans. Sum assured plus bonus till date

Q. As per the norms of risk assessment U/W both the parents of a

policy holder died in their early 30s due to Heart disease. What is the
risk assessed?

Ans. Physical Hazard

Q. While calculating Human life value (HLV) two components need to

be kept in mind the one is take home salary and other is:

Ans. Estimated life expectancy

Q. Claim was settled. However full Sum assured not paid though the
policy was in force due to:

Lein

Ans.

Q. HLV is used as a Yardstick to determine:

The correct cover needed to compensate economical loss to their

family in case of Ans. death of the earning member

Q. In insurance HLV is a known abbreviated term. How the meaning

of HLV can best be described in relation to an income earning
proposer?
Present value of the future earnings less personal expenses is the
HLV of the proposer

Q. Mr A wants insurance cover. But he is drinks alcohol frequently.

What kind of hazard you may categorize?

Ans. moral hazard

Q. Insurer appoints a candidate of this professional qualification who

decides the amount of premium in insurance products:

Ans. Actuary

Q. While calculating HLV along with future income no of years of work

increments in salary what is also to be taken in to account?

Ans. Discount rate

Q. Mr. A has a son who is 5 yrs and he wants to save funds for his
education. Both the parents are risk adverse. Which plan is suitable
for them?

Ans. Endowment Plan

Q. Most plans offered by Indian insurance companies are a

combination of:

Ans. Term insurance and whole life

Q. Why Annuities are reverse of Life Insurance?

Ans. Annuities cover contingency of Survival whereas Life insurance

covers the contingency of death

Q. Main Protection need of a client...:

Ans. Protection of Income

Q. Basic elements of an insurance plan are:

Ans. Maturity benefit and Death cover

Q. When maturity benefit is payable under a joint life Plan?

Ans. On survival of both or either of the life insured.

Q. Which plan covers the risk of living too long?

Ans. Retirement plan

Q. Income Tax Act 1961 provides for tax relief for various
investments under Section?

Ans. 80C

Q. Group insurance is a contract between…:

Ans. Employer & Insurance Company

Q. Who deducts premium in Salary Savings Scheme?

Ans. Employer

Q. The date on which the Title/rights under a policy passes on to the

child on age 18 is called….:

Ans. Vesting date

Q. Which plan is suitable for those who cannot afford higher premium
now but can afford to pay higher premium later?

Ans. Convertible Term insurance

Q. Which is the most basic simplest & cheapest form of insurance?

Ans. Term insurance

Q. Why insurance needs require to be prioritized?

Ans. Resources are limited.

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

Ans. On receipt of payment by agent

Q. Two People of the same policy Term one person pays more
premium because:
Ans. Higher Age

Q. What is maximum level of Insurance premium for which Income

Tax benefit is available:

Ans. 1,00,000

Q. Client has taken Joint Life Policy. Who are responsible in the
contract?

Ans. Proposer & Wife

Q. Term insurance if best suited for the following need

Ans. education needs

Q. A Couple has 7 year kid & wants to Buy some Policy. Which is the
best suitable policy for his Son?

Ans. Child insurance plans can be taken out in the form of endowment
plans money-back plans or ULIPs

Q. Children policies come in 3 forms. What are they?

Ans. Endowment Money back & ULIP

Q. At the time of maturity quarter of the SA is paid though the policy

was in force:

Ans. Money back

Q. Mr. X wants a life cover for the term of 20 Yrs. Also, he wants a
modest amount if he survives through the term. Which plan should he
buy?

Ans. Endowment plan

Q. Hari wants a constant life cover till his 31st birthday. But he can’t
afford to pay high premiums. The best suited products for him would
be:

Ans. Term plan

Q. The option to receive maturity benefit in instalments under a ULIP
is called..:

Ans. Settlement Option

Q. The period which does not provide risk cover in a Child plan is
called…:

Ans. Commencement period

Q. To avail income tax exemption for premium paid sum insured

under a policy should be...:

Ans. 10 times

Q. Which life insurance plan offers both the benefits of Risk cover and
Investment?

Endowment policy

Ans. ULIP

Q. In endowment policy, we give SA + Bonus- :

Ans. Outstanding premium

Q. What is Inflation?

Ans. Increase in cost of living

Q. Samir is married and he has only one partner with dependant

parents and no child. Which should be his priority?

Ans. income protection

Q. With-profit policies can be given to:

Ans. Individual

Q. An Insurance agent suggests estate planning as a top priority for the

customer. what stage of life cycle the customer is in

Ans. A. Young married=

Q. 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?

Ans. Liability

Q. An elderly person wants to use tax efficient investment and invests in

senior citizen saving scheme. Its the impact in his taxation

Ans. His investment would be deducted from taxable income

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

Tax

Ans. 200000

Q. There is a family of four people both the husband and the wife are
working. They have two kinds aged 6 and 11 years. There is a tragedy
in the family and the husband passes away due to an accident. Which
of the following saving options should the wife go for post the death
of her husband?

Ans. Children education planning

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

Ans. 32000

Q. Janvi borrows Rs 10 lacs from Geeta. She returns Rs 2 lacs in the next
month. Geeta now plans to take an insurance policy on life ofJanvi. Which
of the statement is true?

Ans. Geeta can take the policy up to the extent of unpaid loan amount

Q. When an insurance company is not bound by the terms of the quotation

during the set period?

Ans. When policy received

Q. 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?

Ans. Principle with persistency bonus

Q. Is the payment of interim bonus made mandatory under section 112 of
the insurance Act 1938

Ans. Yes

Q. A proposal of life insurance is not accepted in the absence of insurable

interest which mainly depends on the

Ans. blood relation between the proposer and the life insured

Q. Which of the following statement is not true?

Ans. Indemnity clause in insurance means insurance cannot be used to

make profit

Q. A family consisting of husband wife and two children aged 6 and

10 what kind of insurance plan can be suggested?

Ans. All of the above

Q. The main protection need of a 19-year-old is most likely to be:

Ans. self-protection.

Q. A Couple has 7 years old son what solution they would be looking
for:

Ans. child education

Q. Naresh is married and his daughter Sneha is 3 years old. Which

plan can he take?

Ans. Term & Children plan

Q. What is the reason for which a self-employed should take an

insurance plan?

Ans. Control unstable income

Q. What to be considered while taking first policy?

Ans. All of the above

Q. Which one is not an asset?

Ans. House loan

Q. Mr. X fact find shows he need a term insurance for his future
income protection, a family health plan to cover medical needs, a
children’s plan to cover his son’s education and a endowment policy
for his daughter’s marriage. Which of these is the first priority?

Ans. Term Insurance

Q. The sole focus during a client’s fact-find session was healthcare

requirements and estate planning which main life stage is he most
likely to fall into?

Ans. retirement

Q. Rajiv is married & has 4-year old son. Which insurance plan is
suitable for him?

Ans. Child plan

Q. 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?

Ans. ULIP

Q. Danny is married and has two children aged 6 and 10. His parents
are aged 68 and 70. who all can be included in Family floater option
of a health plan

Ans. Danny his wife and his children

Q. Rupkumar wants to take commutation option. What is the

maximum amount he can withdraw?

Ans. One third

Q. Implication of Daily Hospitalisation benefit plan

Ans. On the expenses incurred daily due to critical illness

Q. If there is no claim in a year, then what will be the benefit to the

customer as No Claim Bonus:
Ans. Discount in next year premium

Q. While calculating the pension figures required at the time of

retirement, two factors should be considered while planning. One is
taxation and other is:

Ans. inflation

Q. How riders will help the customer in life insurance?

Ans. Allows policyholders to customize their insurance cover with

additional benefits

Q. Yash wants to take open market option in pension plan. What is

the benefit?

Ans. To switch the underlying fund

Q. Critical illness rider was taken and the rider benefit has been
claimed. The rider benefit now gets:

Ans. Terminated

Q. Health insurance is needed because:

Ans. cost of healthcare has increased significantly

Q. The premium on all riders put together should not exceed:

Ans. 30% of the premium on the base policy

Q. In a health insurance plan, what feature is likely to cause the

insurer to decrease the renewal premium:

Ans. No claim bonus

Q. The premium for accidental death benefit rider must not exceed:

Ans. 30% of base policy premium

Q. Rajan and Rani has taken a family floater health insurance plan of
4 lacs. They met with an accident and had a hospital bell of 6 lacs.
Which is true for this situation?
Ans. the maximum cover will be of 4 lacs

Q. Ramesh wants to buy 15 years pension plan for retirement. While

calculating, gaps required at the end the gratuity amount was
completely ignored because he is:

Ans. self employed

Q. Customer has opted for a 5 years guaranteed annuity option what

will happen to annuity if the customer survives for 5 years after the
end of guaranteed period:

Ans. Till he dies

Q. What frequencies can one take annuity?

Ans. Monthly, quarterly, Half-yearly, Yearly

Q. All ULIP pension plans have to give how much percentage as

Guaranteed returns:

Ans. 0.045

Q. In what proportion is the cover in a family floater plan shared:

Ans. no proportion

In term insurance, if critical illness rider claim happens then what

will happen to existing policy:

Ans. CI benefit will cease

Q. A person retiring within 3 months need return as pension. What

kind of investment plan he need to choose?

Ans. Immediate annuity

Q. Vishal and Sandeep applied for a health plan in XYZ Life Insurance
company. Vishal is asked to undergo medical check-up. But Sandeep
is not asked to do so. What will be most possible reason?

Ans. Sandeep has taken another policy from XYZ life insurance
company
Q. Family floater health insurance plan covers:

Ans. all members of a family

Q. An individual need a lump sum at the age of retirement. The

amount he need to

invest annuity for the goal will depend on:

Ans. all the above

Q. Which factor needs to be kept in mind before deciding a child

policy ?

Ans. Maturity Value

Q. What tax rate if any will be applicable to a life insurance policy

holder for the maturity proceeds of a Rs 50 000 life insurance policy

Ans. 0.2

Q. If 50000 is invested in Single Premium ULIP than what will be the

minimum SA applicable?

Ans. 75000

Q. In Group Insurance who is the Master Policyholder?

Ans. Employer & Employee

Q. Waiting period in a health insurance policy is to address:

Ans. Pre-existing illness

Q. Commutation is a feature of which type of policy:

Ans. Annuity

Q. The consensus ad idem mainly ensures that

Ans. It is the duty of the proposer to enquire about the terms and
conditions of the policy
Q. Husband and wife jointly taking insurance policy what is the
reason that they need not mention nominee under this insurance
policy

Ans. Joint Life Policy

Q. A person has taken a term insurance of 4 lacs. What is the

maximum critical illness rider he can take?

Ans. 4 lac

Q. The rider which is given by the insurance company and which pays
for the treatment cost in the event of hospitalization of the insured
person is called?

Ans. hospitalization care rider

Q. What are the benefits to the policyholder under surgical care

rider?

Ans. Treatment cost of surgery subject to terms and conditions

Q. A person Wants to invest in a FD for Tax benefit. How many years

he has to take the term of the FD?

Ans. 5 year

Q. What is the limit of tax benefit that can be availed of under Section
80C?

Ans. 1,00,000/-

Q. What is the advantage of converting physical gold assets to gold

ETFs?

Ans. Liquidity

Q. From which investment, a person will have Capital Growth and

Dividend?

Ans. Equity

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

Ans. fixed Income

Q. Under which section of the Income Tax Act can an individual get
a deduction from taxable income for Health Insurance?

Ans. 80D

Q. Ajit and Vijit are 2 friends paying same premium for health
insurance. Why Ajit has higher tax exemption eligibility than Vijit?

Ans. Ajit is above 65 years of age whereas Vijit is below 65

Q. Which is NOT the duty of Life Insurance Council?

Ans. Fixing price of insurance products

Q. __________ has laid down the Code of Conduct for all agents:

Ans. Insurance Regulatory & Development Authority

Q. In underwriting the economic value of the person is determined by

what

Ans. Human life value

Q. Mr. Kumar decides that is employees should have SSS scheme

what type of plan is SSS

Ans. Not a specific plan

Q. In cumulative bank deposit the interest that in normally

compounded on what basis.

Ans. Quarterly

Q. Anand received post taxation 5% return on his fixed deposit in

bank if his net return is 3%, what can be the reason

Ans. Inflation

Q. Which is the primary saving need among all saving needs?

Ans. Contingency/Emergency fund.

Q. An Investor has invested in Debt mutual fund he is ideally looking
for:

Ans. Savings Income

Q. 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?

Ans. Retirement fund

Q. Why IRDA allows free look in period cancellation?

Ans. To save clients from unethical agents

Q. Embedding Ethics means that:

Ans. Ensuring practice of ethics at all levels consistently and

coherently

Q. Raju is a certified license holder under what circumstances he

needs to hold his certified license with him that is issued by
IRDA:

Ans. under all circumstances

Q. Who monitors and evaluates the ethical practices of insurers?

Ans. Both the above

Q. A policy has been rejected by the company under direct intimation

to the customer and copy to the Agent. What is the next action of the
Agent?

Ans. He has to explain the reasons for rejection to the customer

Q. More surrenders, lapses and cancellations during free look in

period raises doubts that the Company is doing _______sales:

Ans. Unethical

Q. To redress the Grievances of the Policy Holders, a number of

authorities have been formed. Which of the following authorities has
been empowered to hear the complaints and adjudicate?
Ans. Consumer Grievance Redressal Forum

Q. Agent offering rebate may be fined with:

Ans. Rs. 500

Q. AML program of every insurer to include ___________ apart from

procedure, training and audit:

Ans. Appointment of Principal Compliance Officer

Q. To ensure that the premiums are paid out of a legitimate source of

funds, cash is accepted:

Ans. Upto 1,00,000

Q. Ethical practices lead to…...:

Ans. Positive image for the company

Q. An Insurer advertises through daily newspaper. What type of

marketing is this?

Ans. Direct Selling

Q. Investments by NRI (Non-Resident Indian) will be:

Ans. High Risk

Q. Health ID cards are provided to all their policy holders in order to

validate their identity at the time of admission by

Ans. TPA

Q. The controler of insurance in India is

Ans. IRDA

Q. Rahul is appointed as Director of Life Insurance Company He

cannot be an

Ans. Chief Actuary

Q. An advisor while explaining the policy and to sell he accepts to
give a part of his Agent's Commission. What is the limit?

Ans. He cannot offer any commission

Q. The authority of COPA is limited to what amount at the District

Level?

Ans. 20,00,000 /-

Q. It is the bounden duty of the Insurers to protect the interest of their

policyholders from proposal acceptance to claim payment because
of the:

Ans. Regulations of IRDA

Q. Who can cancel the licence of an Agent if Agent violates code of

conduct?

Ans. Life Insurance Council

Q. In MWP Act policy claim is paid to:

Ans. Trustee

Q. Consumer Forum at District level will hear complaints upto:

Ans. 20 lakhs

Q. For renewal of licence an Agent has to complete practical training

for �. Hours

Ans. 25 hours

Q. How much is the rebate allowed by IRDA to client?

Ans. Nil

Q. For renewal of licence an Agent has to complete practical training

for �. Hours

Ans. 25 Hour

Q. An Actuary is a Fellow of
Ans. IAI

Q. Tariff Advisory Committee has been formed under

Ans. Insurance Act 1938

Q. A person operating without licence can be fined upto

Ans. 2000

Q. If a policy is endorsed under MWP Act the beneficiaries are wife

and

Ans. Children

Q. IRDA decides on

Ans. All the above

Q. Board of Insurance is related to

Ans. IRDA

Q. What is the fee for a duplicate licence

Ans. 200

Q. What is Detariffication

Ans. Pricing of insurance products by the Agent

Q. Ravi was expecting a claim amount of Rs. 12,00,000 from insurer.

But it was rejected. He feels that the claim has been repudiated on
wrong reasons. Which consumer forum can he approach?

Ans. District Level

Q. An Agent offered his client that 75% of the first premium will be
paid by him out of commission. This offer of rebate on premium will
be treated as: :

Ans. a breach of IRDA's code of conduct

Q. [Link] dies one day before the grace period without paying the
premium. What is the claim payable?

Ans. Sum Assured less the undue premium

Q. What is the maturity claim payable under a ROP?

Ans. Return of Premium

Q. What is the main requirement for settlement of a death claim?

Ans. Proof of death

Q. What is a Claim?

Ans. A demand of the Insured to the Insurer

Q. What is recovery made from final claim settlement?

Ans. All the above

Q. An Insurer advertises through daily newspaper. What type of

marketing is this?

Ans. Direct Selling

Q. Payment of premiums by cash cannot exceed ____________:

Ans. Rs. 1,00,000

Q. The controller of insurance in India is:

Ans. IRDA

Q. Which is a claim?

Ans. All the above

Q. If there is no insurable interest, then the contract is:

Ans. Invalid contract

Q. Client died in 89th day from DOC. In which category he is not

eligible for claim?
Ans. Suicide

Q. When an insurance claim is valid?

Ans. All the above

Q. In which claim most frauds occur?

Ans. Death claim

Q. What is maturity claim payable under a ROP?

Ans. Maturity claim

Q. If there is no insurable interest then the contract is

Ans. All the above

Q. Mr. Customer has taken a policy and died before receiving the
document which was dispatched by the insurer? He is:

Ans. Entitled for full claim

Q. When annuity payments start under a deferred annuity plan?

Ans. Vesting date

Q. What is the death claim payable in case of ULIP?

Ans. Sum insured or Fund Value whichever is higher

Q. In a claim the customer got much more than theSumAssured.

Why?

Ans. Nature of payment

Q. If a person is absconding, then after how many years will he be

considered as dead & SA paid to the nominee:

Ans. 7 years

Q. The fee for renewal of Agent licence is

Ans. 250
Q. Who regulates the Agent's code of conduct?

Ans. IRDA

Q. In which type of claim investigation is necessary

Ans. Both early and Non-claim claims

Q. What is the maturity benefit payable if a ULIP matures?

Ans. Sum insured + Fund value

Q. A contract entered into a drunken person is ….:

Ans. Invalid contract

Q. A contract which has no effect on either of the contracting parties

is:

Ans. Void contract

Q. What is the maximum time in which the insurer should settle a

claim when all documents are submitted?

Ans. 30 days

Q. When insurance contract is voidable?

Ans. Both the above

Q. Without submitting any form of claim a life insurance policy holder

received payments of maturity then what type of policy he is
holding?

Ans. Money Back

Q. If notification of death is received 3 years after death then the

claim can be declared:

Ans. Death claim

Q. What is the death benefit if the person has multiple sums assured
under different policies?
Ans. Sum of all SA in different policies

Q. In case of confirmed accidental death, the benefit is paid in the

form of:

Ans. Lump sum assured plus accidental sum assured

Q. If the policyholder dies before receipt of Survival Benefit claim

then to whom the Survival Benefit claim monies are payable?

Ans. Nominee

Q. 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%:

Ans. 0.07%

Q. The policy under death claim is paid regardless of when death

occurs is:

Ans. Endowment plan

Q. The latin term 'void ab initio' means:

Ans. null& void from the beginning

Q. No of days in which the death claim has to be paid after the

necessary documents have been received:

Ans. 30 days

Q. How much proportion of accumulated fund can be commuted in

case of annuity policies?

Ans. Upto 1/3rd

Q. If a person is missing, then after how many years will he be

considered as dead & SA paid to the nominee?

Ans. 7

Q. In case of Conditional Assignment, the claim monies can be paid

to:
Ans. Assignee

Q. In case of a Paid up policy, what is the claim payable?

Ans. Fund value

Q. Third party insurance is compulsory under:

Ans. Motor vehicle Act 1988

Q. The Ombudsman can:

Ans. All the above

Q. In case of no fault liability the minimum compensation that will be

paid to the person injured due to motor vehicle without proving the
fault of the driver is

Ans. Rs. 50,000/- for death and Rs 25,000/-for grievous hurt.

Q. A customer can approach an Ombudsman if:

Ans. The value of the claim is not above Rs 20 lakh

Q. The Consumer Protection Act was passed in:

Ans. 1986

Q. Protection of Policyholder's Interest guidelines is published by:

Ans. IRDA

Q. LokAdalats were set up in June, 1985 with a view to:

Ans. All the above

Q. HIT and run cases means:

Ans. Vehicle and driver disappear after the accident and the liability
is not known

Q. Consumer Court is a:

Ans. Quasi-judicial machinery

Q. A defect or deficiency is a:

Ans. All the above

Q. A Life Insurance Policy should contain:

Ans. All the above

Q. Free look option should be exercised within:

Ans. 15 days of purchase of the policy

Q. A survey or should submit his report generally within:

Ans. Within 30 days of appointment

Q. A General Insurance policy should contain:

Ans. All the above

Ans. Q. A Policy holder can register the following in his Policy:

All the above

Q. The Consumer protectection Act was passed in

Ans- 1986

Q. In case of delay of Claim settlement under Life Insurance Policy

the company shall

Ans. Pay interest on the claim amount at a rate which is 2% above

the bank rate

Q. In case of General Insurance Policy Claims, the company will

appoint:

Ans. Surveyor for assessing the loss

Q. When a customer cancels a policy under Free Look condition, the

insurer will refund:

Ans. The risk premium;

Q. Medical underwriting is necessary to prevent people from
purchasing health insurance coverage only when they are:

Ans. All the above

Q. Policy Bond is a very important document for the customer

because:

Ans. It is a legal document containing the terms and conditions of the

contract.

Q. Free look of an Insurance Policy means:

Ans. Policy holder can cancel the policy after purchasing it.

Q. RAP should NOT:

Ans. All the above

Q. An underwriter is a professional who has the ability to

Ans.

Q. RAP should conduct ethical business with:

Ans. All the above

Q. An underwriter is a professional who has the ability to:

Ans. Understand the risks to which the underwritten object is

exposed

Q. After sales service in insurance includes the following:

Ans. All the above

Q. Cold canvassing in Insurance refers to:

Ans. Meeting a person not known and with whom he does not have
any introduction or any meeting in past

Q. Agents act as an intermediary between the:

Ans. Insurer and the Policyholder.

Q. Who amongst the following is a prospect for insurance

Ans. All the above

Q. An Insurance company should be a:

Ans. All the above

Q. Corporate agent Is a corporate body which acts as:

Ans. Agent for all Life and General Insurers

Q. A VLE can sell policies of:

Ans. All Life, Non-Life and health Insurance companies

Q. A public-sector company specialized for Risk Related to Crop

insurance is:

Ans. Agriculture Insurance Company of India Limited

Q. A public-sector companythatspecializesin risks related to export

credit is:

Ans. Export Credit and Guarantee Corporation of India

Q. Who manages the employees provident fund?

Ans. EPFO

Q. When a customer cancels a policy under Free Look condition the insurer
will refund

Ans. Alltheabove

Q. Unethical selling includes:

Ans. All the above

Q. In case of General Insurance Policy Claims the company will appoint

Ans. Survey or for assessing the loss

Q. RAP can do the following:

Ans. All the above

Q. Fact finding sheet allows the agent to:

Ans. Analyse customer needs

Q. The rates of assumed annual growth to be shared in the benefit

illustration has been decided by which of the authority:

Ans. Life Insurance Council

Q. In order to fulfil the Know Your Customer Procedures, at what

stage in the financial planning process is the insurance agent most
likely to request a copy of the Customer's photograph?

Ans. At the end of the presentation meeting

Q. A fact find is not intended to:

Ans. Reveal client's personal secrets

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

Ans. 6% and 10%

Q. The client's job profile and workplace play an important role in:

Ans. Fact find

Q. During fact finding what will be the next step after identifying
clients need:

Ans. prioritize client needs

Q. What should an agent do in order to understand the mental state

of client in respect to his investment in savings products

Ans. Reviewing his existing Investments

Q. Assessment of needs does not include:

Ans. priorities of the agent

Q. Which plan should an agent suggest?

Ans. A plan based on needs of the client

Q. What is the period of award passed to the customer decided by

ombudsman?

Ans. 3 months

Q. For Logging a policy which document is more preferable - Baptism

Certificate or

Ans. Baptism Certificate

Q. What is the min age to enter into the contract of insurance?

Ans. 18

Q. Why does an insurer insist on age proof document? To assess:

Ans. Risk assessment

Q. In a joint life plan for a husband & wife, where should the agent'
principal loyalty lay?

Ans. Insurance company, husband & wife

Q. Term insurance if best suited for the following need:

Ans. home loan

Q. What is to be considered while taking first policy?

Ans. All the above

Q. In fact-finding, why client's income analysis is necessary?

To do financial planning according to the needs of the client

Q. What does the liabilities section list contain?

Ans. List the amounts of all the client's debts

Q. The advantage/disadvantages within cumulative and fixed
traditional deposits pertain to-

Ans. Returns

Q. [Link] invested Rs:50000 in pension policy, what is the

percentage he can avail as:

Ans. will depend on his income slab

Q. A satisfied client will lead to:

Ans. All the above

Q. Insurance Contract without any Insurable Interest will result?

Ans. Wagering Contract

Q. Benefit illustration is used to:

Ans. Show the client the nature of the product and its benefits

Q. Suresh wants to transfer his physical gold to gold exchange traded

fund in relation to access this change will:

Ans. Insure against uncertainties

Q. Suresh wants to transfer his physical gold to gold exchange traded

fund in relation to access this change will:

Ans. Increase his liquidity

Q. 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?

Ans. Pension plan

Q. A person wants to invest in a FD for Tax benefit. How many years

he has to take the term of the FD?

Ans. 5 Years

Q. KishanVikas’s payment gets cleared at:

Ans. Post office

Q. Where would you have to go if you wanted to buy a

KisanVikasPatra?

Ans. Post Office

Q. Bank interest is accumulated:

Ans. Monthly

Q. What is the frequency of the crediting the interest which is given

to the customer in a cumulative deposit?

Ans. quarterly

Q. In the Life Insurance segment, there is:

Ans. One Life Insurance Company in the public sector

Q. Corporate agent Is a corporate body which acts as:

Ans. Agent for all Life and General Insurers

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

should:

Ans. disclose on demand

Q. Which is the training institute for providing training to insurance

agents?

Ans. Insurance Institute of India

Q. Who licenses the insurance Broker?

Ans. IRDA

Q. In a cashless Medi-claim policy the claim amount is paid by the

Insurance company to the:

Ans. TPA

Q. TPA's are authorized by the Insurer to:

Ans. all the above

Q. TPA should provide:

Ans. All the above

Q. Third Party Administrators operating in Health insurance sector

are licensed by IRDA under:

Ans. IRDA(Third Party-Health Services) Regulations of 2001

Q. Third Party Administrators are intermediaries providing:

Ans. Health insurance services on behalf of Insurance Companies

Q. Network Hospital in Health Insurance refers to:

Ans. Hospitals with which TPAs tie-up for cash less treatment

Q. If an Insurance company appoints a TPA under health

Insurance:

Ans. The liability to settle the claim remains with the insurers

Q. A newspaper advertisement was issued regarding a insurance policy.

This indicates that the policy is

Ans. Transferred

Q. After which time limit insurance company is liable to interest to claims?

Ans. 30 days

Q. If a person is missing then after how many years will he be considered

as dead & SA paid to the nominee.

Ans. 7

Q. The Ombudsman's powers are restricted to insurance contracts of

what value?

Ans. 20 Lakhs

Q. When a contract is voidable?

Ans. Good faith

Q. License of an agent was withdrawn in June 2010 due to

malpractice. He can reapply for his license in:

Ans. 2015

Q. Publicity and Advertisements material published by Insures should

conform to

Ans. IRDA Meetings regulations

Q. What is the stipulated time frame within which an insurer is

supposed to respond after receiving any communication from its
policyholder?

Ans. 10 days

Q. In the Life Insurance segment there is

Ans. Forty insurance companies in total

Q. A public sector company specialized for Risk Related to Crop insurance

is

Ans. Agriculture Insurance Company of India Limited

Q. In the General Insurance segment there is

Ans. Four General Insurance companies in the public sector

Q. A public sector company, specialized for risks related to export credit is

Ans. Export Credit and Guarantee Corporation of India

Q. For the customer whose claim has been refused by the company
the three places where he/she should follow up are - Ombudsman
IRDA Customer Grievance Cell and :

Ans. Consumer Forum

Q. Karthik written to his insurer about non-settlement of a maturity

claim. As per regulations the insurer should reply to this within how
many working days?
Ans. 10

Q. A policy holder submits cancellation of his term insurance policy.

The insurer accepts the form and fails to give the benefits. Policy
holder writes to IRDA post which the settlement should be made
within?

Ans. 15 days

Q. Health ID cards are provided to all their policy holders to validate

their identity at the time of admission by:

Ans. Hospital

Q. The major duty of the TPA is

Ans. Claim Management

Q. Third Party Administrators operating in Health insurance sector

are licensed by:

Ans. IRDA

Q. Agents to do

Ans. Need based selling

Q. Underselling means

Ans. More bonuses

Q. An advisor while explaining the policy and to sell he accepts to give a

part of his Agents commission what is the limits

Ans. He can offer up to 50%

Q. More surrenders lapses and cancellations during free look in period

raises more doubts that the Company is doing Sales

Ans. Value

Q. Higher the number of lapses surrenders and cancellations will be doubts

about Ethical practices of insurers.

Ans. Either Higher or Lower

Q. Agent to make sure that he does not disclose any information about his
client. How is this described

Ans. Responsible

Q. Insurance companies are required to honor the awards passed by the

Insurance Ombudsman within how may days

Ans. 15 days

Q. As per Regulation for protection of Policyholder's interest 2002 (IRDA)

Which insurer will have a grievance redressal System

Ans. It is optional

Q. A policy has been rejected by the company under direct intimation to the
customer and copy to the Agent what is the next action of the Agent

Ans. He has to explain the reasons for rejection to the customer

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

Ans. By all insurers

Q. Ombudsman has to give his decision within how many days?

Ans. 3 Months

Q. An Award is passed by Ombudsman. In how many days it should

be honored by Insurance Co

Ans. 15 days

Q. The functions of the Insurance Ombudsman include

Ans. Conciliation and making awards

Q. If a case is already before the consumer forum then the ombudsman

should

Ans. Give a joing decision with the consumer forum

Q. IGMS is a platform for registering complaints & mandatorily to be

used by
Ans. all insurers

Q. What are the ways by which a policy holder can make

complaints

Ans. E mail or Toll free Number

Q. Ombudsman has to pass an award within how much time

Ans. 3 months

Q. If a person chooses cumulative deposit than Recurring deposit

difference will be in:

Ans. Frequency of interest calculation

Q. If a person want to maintain emergency funds the best place is a

bank or:

Ans. ULIP

Q. What period of time a client has to be invested to get tax benefit

under postal scheme?

Ans. 5 years

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

Liquidity

Q. Anand received post taxation 5% return on his fixed deposit in a

bank. If his net return is 3% what can be the reason?

Ans. Inflation

Q. If an Agent focusses on Commission, then it is:

Ans. Unethical

Q. Which body has created a call centre for logging a complaint?

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

Ans. Depends upon his actual age and years left for retirement

Q. A customer while investing in to Recurring deposit or Cumulative

deposit. What are the key factors which will matter?

Ans. interest rates

Q. 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 of Y?

Ans. Y has brought a single premium product

Q. To redress the Grievances of the Poliocy Holders a number of Authorities

have been formed. Which of the following authorities has been empowered
to hear the complaints and adjudicate ?

Ans. IRDA

Q. 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?

Ans. 2011

Q. Persistency has increased from 82% in previous year to 86% this

year. That means:

Ans. Less Lapsation

Q. After doing the need analysis of the client the agent advised the
client to opt for ROP product. But the client refuse. According to
ethical business practices, what will the agent do?

Ans. Enquire about the refusal from the client

Q. What key impact will the agent have in low persistency?

Ans. Will have impact in his commission

Q. Complaint council bodies other than IRDA grievance readdress
forum & COPA

Ans. Ombudsman

Q. As per the IRDA circular an insurance agent:

Ans. needs to disclose the amount of commission on demand

Q. Transactions of sale of life insurance products to the insurable

clients are viewed in the insurance market mostly as:

Ans. Relationship transactions

Q. What is meant by Higher persistency to the insurers?

Ans. Higher Profits

Q. If Sales Target get reduced, then Churning will:

Ans. Decrease

Q. An advisor will do a churn to:

Ans. To earn extra commission

Q. Churning is bad, based on which aspect:

Ans. Policyholders suffer due to surrender charges and benefits

Q. If the agent recommends the client to terminate an endowment

plan and take a whole life in order to earn higher commission, it is
termed as:

Ans. Churning

Q. According to IRDA agent’s code of conduct, what is the best

method of showing the amount of commission earned by the
advisor?

Ans. Signed copy of sales illustration

Q. What are the key aspects that advisors do for better

persistency?
Ans. Selling product as per need & policy servicing

Q. If the client does not wish to proceed with the recommendations

right at the moment, the agent should:

Ans. Should ask for a future date from the client

Q. During the recommendation stage the advisor needs to:

Ans. recommend the products that best meet the client’s needs

Q. Insurer has rejected an insurance proposal with intimation along

with reasons to client and with copy to agent. What should agent do?

Ans. Explain to client the reasons of rejection

Q. The best way to prove that customer of a ULIP policy is given

awareness about the commission paid to the Agent is:

Ans. From signed copy of benefit illustration

Q. During product recommendation, the agent should explain the

product in relation to:

Ans. The needs that came to fore in fact find process

Q. What is the reason that an advisor is getting more than 35%

Commission in the 1st Year?

Ans. Alternate channel

Q. An Agent can receive maximum of ________ %of the premium as

commission in the first year

Ans. Thirty Five Percent

Q. Lien can be considered an alternative of which of the following

Ans. Clause.

Q. What is the special report that is asked by the underwriter from

the officer of the insurer?

Ans. Moral hazard report

Q. The responsibility for classification and analysis of proposal form
lies with whom

Ans. Underwriter

Q. Time deposit account is issued by

Ans. Post Office

Q. All ULIP pension plans have to give how much percentage as

guaranteed returns

Ans. 4.50%

Q. How the Daily Hospitalization cash benefit will provide benefits to

policyholder who is hospitalized

Ans. A fixed amount on a daily basis is paid irrespective of the actual

cost of treatment.

Q. What are the benefits to the policyholder under surgical car rider?

Ans. Treatment cost of surgery subject to term & Condition

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

Ans. Guaranteed and non guaranteed part

Q. Open market option under annuity policy would extend which of

the following benefit

Ans. Increase in the range

Q. Some health plans will give coverage for family member also we
will call these plans as

Ans. Family floater health insurance plans

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

Ans. Marriage
Q. A provision for superannuation is a normally taken a high need to

Ans. a Self employed person

Q. During the recommendation stage the advisor needs to

Ans. Recommend the products that best meet the client’s need

Q. Mr. Harsh an agent wants do a through fact finding for his client to
[Link] who is a business man. Which of the following information
will be helpful to know about the earnings and expense at kishan?

Ans. Client’s profit and withdrawal’s from business

Q. Higher persistency to the insurer ensure what

Ans. Higher profits

Q. Persistency has increased from 82% in previous year to 86% this

year that means

Ans. Less Lapsation

Q. When should an agent disclose the commission which he will earn

from the product which he is going to sell?

Ans. When the customer asks him

Q. Which one of the following factors does not help in the persistency

Ans. Dispatching discharge voucher to the customer

Q. Under married women’s property act, 1874 a policyholder is

Ans. the trustee

Q. Married women’s property act 19874 provides that a life insurance

policy that has been taken out by

Ans. Married man

Q. What is the role of National insurance Academy?

Ans. To undertake training activities

Q. De-tarrification is a process by which pricing of insurance

Ans. insurers can price their product on their self past experience

Q. As per IRDA regulations IGMS Should be mandatory setup by

Ans. By all insurers

Q. Generally insurance companies do not hold the premium in case of

a fraud or misrepresentation. However, due to which of the following
circumstances by insurer can retain the premium the policyholder

Ans. Indisputability clause

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

Ans. 1 month

Q. The premium on all riders put together should not exceed.

Ans. 30% of the premium on the base policy.

Q. How riders will help the customer in life insurance

Ans. Allow policyholder to customize their insurance cover with

accidental benefits

Q. In daily hospitalization cash benefit scheme

Ans. The insurance company may pay an additional amount on a daily

basis if the insured is admitted to the intensive care unit (ICU).

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

Ans. Protection

Q. Group insurance can be taken in following relationship

Ans. Employee- Employer

Q. If a person consuming alcohol- what is the type of Hazard

Ans. Moral

Q. Life Insurance is the most important for which age group

Ans. Pre- retirement

Q. While on sales of an insurance plan Mr…. Had to show his license

Ans. The customer demanded

Q. Which one of the following reports in not considered in case of

pankaj bought a plan in 2009 & died in road accident in 2011.

Ans. advisor confidential report

Q. In the case of agent’s death, the commission payable will be paid

to

Ans. His legal heirs

Q. Which one of the section deals with the licensing of an agent

Ans. Section 42 of the insurance act 1938

Q. How are perils and hazards normally distinguished under therm

insurance policies?

Ans. Perils are risk that policyholders will die before a specified date
and hazards are factors which could influence that risk.

Q. Where one can approach in case of dispute

Ans. Consumer forum

Q. The regulations issued by the IRDA, require that the decision on

the proposer must be conveyed to the proposer within

Ans. 15 days of receiving the proposal

Q. According to IRDA guidelines, how long does an insurance

company have to complete its investigation of claim?

Ans. 180 days

Q. Who is the regulator supervisor and monetary authority of the
financial system in India?

Ans. RBI

Q. Indisputability clause can be enforced by the insurance company

during the

Ans. First two years of policy

Q. To ensure that the premiums are paid out of a legitimate source at

funds cash is accepted

Ans. Up to 50,000

Q. If there is no claim in a year then what will be the benefit to the

customer as no clam BOUNS

Ans. Discount in next year premium

Q. Maximum time for investigation in disputed claim

Ans. 3 months

Q. A lump sum withdrawal allowed as commutation in pension plan

is.

Ans. 1/3 of the accumulation fund

Q. Customer has opted for a 5 year guaranteed annuity option. What

will happen to annuity, if the customer survives for 5 years after the
end of guarantee period?

Ans. Till he die

Q. In term insurance if critical illness rider claim happens then what

will happen to existing policy.

Ans. CI benefits will case

Q. The Ombudsman’s powers are restricted to insurance contracts of

value not exceeding

Ans. 20Lakhs
Q. In which section of policy document, information about the
location at insurance Ombudsman had written

Ans. Information statement

Q. Ombudsman passes an award within which time

Ans. 3 months

Q. 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

Ans. 2015

Q. Under the hospital care rider what is the payout mode.

Ans. Specified amount multiplied by the number at days the

policyholder is hospitalized.

Q. [Link] has taken a G-Sec and has parted with it mid way as he
required the money with the intention at not getting the interest what
will he get

Ans. Discounted value

Q. If bonus is given under a plan the additional premium added is

known as

Ans. Loading

Q. Nomination can be in favor of how may people

Ans. It can be any number

Q. [Link] is suffering from Asthma and the policy in been done on

joint life basis and the need for nomination under the plan is less as

Ans. Joint life policy

Q. What key impact will the agent have in low persistency?

Ans. Will have impact in his commission

Q. Within how many days will the underwriter needs to inform the
policyholder regarding the status at the policy.

Ans. 15 days

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

Ans. District level

Q. If any consumer is dissatisfied with the customer care cell of any

insurance company to whom they can escalate their grievances

Ans. Nodal Officer

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

Ans. Cumulative deposits

Q. Certificate from the village panchayat

Ans. Will be considered as non standard age proof

Q. 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.

Ans. Actuary

Q. Aswin is looking at different plans of insurance for protection at

the lowest premium. Which is the best plan for him?

Ans. Term plan

Q. The insurance act of 1938 created which of these

Ans. Traiff Advisory Committee

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

Ans. 30% of base policy premium

Q. If the annual premium for a plan is 32000 and a frequency loading
at 4% is added in a quarterly premium what is the amount that needs
to be paid

Ans. 8320

Q. What amount of insurable interest does an individual have in his

own life

Ans. Unlimited

Q. Kalyan is an illiterate person and his proposal form was filled by

simaran, then what is the additional requirement to be taken along
with the documents

Ans. Thumb impression of kalian has to be taken

Q. Harsh’s policy matured, however he was paid only 25% of the sum
insured in spite at all his premiums been paid on time . This indicates
that his policy is a

Ans. Money back plan

Q. The Authority at COPA is limited to what amount at the district

level

Ans. 20, 00,000

Q. If a person is concentrating more on health plan and retirement

plan then at which stage at life is he in

Ans. Pre Retirement

Q. The Institute of Insurance and Risk Management along with

insurance education does what more

Ans. Research

Q. A claim was paid in a policy and it was advertised in the newspaper

also. This indicates that the policy was

Ans. It was lost

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

Ans. It was lost

Q. Payment of premium and sum assured are laid down in

Ans. Operative clause

Q. What is the role of National Insurance Academy?

Ans. To undertake training activities

Q. Which is the primary saving need among all saving needs?

Ans. Contingency/Emergency fund

Q. Sanjeev is an insurance expert who has rich experience in

determining premium levels for product, what is his profile like

Ans. Any actuary

Q. The Non Government Organizations (NGO) helps the insurance

industry immensely in

Ans. Linking Buyers & Sellers

Q. Investment by foreign direct investors in to insurance co’s is

restricted to

Ans. 26%

Q. Which market does the Micro Insurance Concentrate on?

Ans. People with low income

Q. Brokers represent the client before insurance companies.

Ans. true

Q. Stand Alone Health Insurance companied market

Ans. All the above

Q. Who is affected by Underselling

Ans. Agents

Q. If an Agent focusses on Commission then it is

Ans. Both ethical & unethical

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

Ans. The company is acquiring more business and new customers

Q. What over riding criteria an insurance agent consider while

proposing a solution

Ans. risk

Q. During product recommendation the agent should explain the

product in relation to

Ans. Benefits of the products

Q. I.I.R.M. Hyderabad is concerned with

Ans. Advisory

Q. Who is the face of Life Insurance industry

Ans. Life Insurance Council

Q. Role of NIA is

Ans. To regulate insuirance industry

Q. What is the similarity between Recurring Deposits & Cumulative

deposits in a bank?

Ans. Guarantees

Q. What facility do the insurers use to cover Risk beyond their Limits?

Ans. Re Insurance

Q. Lung cancer and smoking.

Ans. Lung cancer is peril and smoking is moral hazard

Q. The type of risk that can be insured against is

Ans. Pure Risk

Q. Pooling of risk in insurance means

Ans. All similar risk are pooled together

Q. Pure risk is classified under

Ans. Insurable risk

Q. The consequences of these risks which will affect specific

individuals or local communities in nature is called as

Ans. Particular risk

Q. Harish takes a life insurance policy for Rames. Which of the

following statement best describes the principle of insurable
interest.

Ans. Harish suffers financial loss incese of death of Ramensh

Q. What is the min age to enter into the contract of insurance?

Ans. 18

Q. In a whole life plan- The policyholder’s responsibility to give

disclosure

Ans. At the beginning of the contract

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

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

Q. Why does an insurer insist on age proof document? To assess

Ans. Risk Assessment

Q. Mr. A Submitted the proposal form. When will the risk begins for
the company?.
Ans. FPR issued

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

Ans. Operative Clause

Q. All Ulip Pension Plans have to give how much percentage as

guaranteed returns

Ans. 4.50%

Q. Yash wants to take open market option in pension plan. What is

the benefit?.

Ans. For improved annuity rate

Q. Asvath is illiterate. He wants to take policy anssurya is a friend of

his help him is answering questions and answers and also fills
proposal. In addition to this requirement is

Ans. Left thumb impression of asvath along with a declaration of his

friend

Q. While calculating Human Life Value (HLV) two components need

to be kept in mind, the one is take home salary and other is

Ans. Bank fixed deposit rate

Q. Annual premium of insurance product is Rs.32, 000, 4% loading on

Quarterly mode of payment what is the quarterly premium?

Ans. 8320

Q. Why ACR

Ans. To help the underwriter to assess the Risk

Q. In a 20 year with profit policy, persist ency Bonus is paid at the

end of

Ans. 20th year

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

Ans. Term Plan

Q. At the time of maturity, quarter of the SA is paid though the policy

was in force

Ans. Money back

Q. Weekly premiums are generally collected for which type/range of

plans

Ans. Micro Insurance

Q. What tax rate, if any, will be applicable to a life insurance policy

holder for the maturity proceeds of a Rs 5000 life insurance policy

Ans. Nil

Q. The best way to overcome the problem of investment decision

depends mainly on peer influence is

Ans. Seeking Professional Advice

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

Ans. Debt Funds of MF

Q. RBI increased interest rates 2 times then the stock prices

Ans. decrease

Q. A person wants to invest in a FD for Tax benefit, how many years

he has to take the term of the FD?

Ans. 5 year

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

Ans. Consensus ad idem

Q. Types of assignment

Ans. Absolute & Conditional

Q. Aditya wants to take home loan and his monthly take home is
80,000 what as a best practices should be the maximum EMI

Ans. 32,000

Q. 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

Ans. Open Market Option

Q. 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

Ans. Income protection

Q. What frequencies can one take annuity?

Ans. Monthly, Quarterly, Half Yearly

Q. Commutation option allows the annuity policy holder to with draw

Ans. 33%

Q. Why do self employed individual have the need to buy Medical

Insurance rather than People working in public Sectors.

Ans. Public sector employees enjoy Medical Insurance Covers

Related to job

Q. Mohit has two kids, 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?

Ans. Life Insurance Policy for himself

Q. Manoj a 26 year old is having 7 years old son, what will happen to
his monthly disposable income after 15 years of job
Ans. significantly increase

Q. Samir is married and he has only one partner, with dependant

parents and no child, which should be his priority

Ans. Income protection

Q. For composite licence an Agent has to complete training for hours

Ans. 25 hour

Q. The sole focus during a client’s fact-find session was healthcare

requirements and estate planning. Which main life stage is he most
likely to fall into?

Ans. Retirement

Q. Objective of fact finding

Ans. Client needs analysis Q. Fact finding sheet allows the agent to
Ans. Analyze customer needs

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

Ans. Moderate Risk Taking

Q. To ensure that the premiums are paid out of a legitimate source of

funds cash is accepted

Ans. Up to Rs 50000

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

Ans. Commission Pay to their agents.

510.Q. Which Act or Regulation provides that the Renewal

Commission is payable to the legal heirs of the insurance Agent ?

Ans. Insurance Act 1938