ic33 print out _660_english

7/27/2019 Ic33 Print Out _660_english

1/54

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


2/54

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


3/54

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


4/54

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


5/54

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


6/54

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


7/54

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.


8/54

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


9/54

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


10/54

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.


11/54

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


12/54

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


13/54

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


14/54

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


15/54

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


16/54

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


17/54

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


18/54

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


19/54

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


20/54

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


21/54

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


22/54

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

ic33 print out _660_english

Documents