question answer final
DESCRIPTION
Communicate with CustomerTRANSCRIPT
Sr. No. Chapter No Question Ans Option 1 Ans Option 2 Ans Option 3 Ans Option 4
Correct Ans /
option
Learning Objective Explation for correct answer Page No. Remarks
1
1
Sanjeev is an insurance expert who has rich experience in determining premium levels for product, what is
his profile like
an actuary loss adjuster risk mager underwriter 1 Actuaries Works on statistical data to arrive on mortality , premium table etc
Pg :27
21
The Non Government organizations(NGO) helps the
insurance industry immensely in
Promotiol activities
Drafting new regulations
Linking buyers and sellers
Linking third party
administrators 3 NGO
NGO spread Awareness as well as In rural on deeper Penetration through Micro
Insurance Pg :27
3
1 Investment by foreign direct investors in to Insurance co's is restricted to 12% 25% 40% 26% 4 FDI
On recommendation of Mahlotra Committee , Under Joint venture , the foreign player can not have more than
26% stake
Pg :24
4
1 Which market does the Micro Insurance Concentrate on ?
People with large families
People with Low Income
Government Employees
people living in Metro cities 2 Micro
Insurance
Micro Insurance is for Low Income Group . Product ranges from 5K to 50 K
.Premium is as low as Rs 15 and can be collected weekly
Pg 24
5 1 What facility do the insurer use to cover Risk beyond their Limits ? Re Insurance Banca assurance NGO RBI 1 Reinsurance Reinsurance company is the Insurer for
the Insurance Company Pg :26
61 what is the max level under which
micro insurance can be done 5000 25000 50000 1 lac 3 Micro Insurance
Micro Insurance guidelines was issued in 2005 by IRDA . Minimum SA is Rs 5000
& Max is Rs 50,000Pg :25
71 Who is the customer of a Re insurer High Networth
IndividualInsurance
Companies
Licenced Insurance
Agents
Non Government Organisation
2 Reinsurance Reinsurance company is the Insurer for the Insurance Company
Pg :26
81
Insurance company transfers the insurance which cannot bear by them
toBancassurance Reinsurance TPAs Actuaries 2 Reinsurance A re insurance company is the Insurer for
Insurance company Pg :26
9 1What is the main objective of taking
the life insurance policy Tax benefit Savings Investment Protection 4
10 1What is the maximum sum assured
under a micro insurance 10000 25000 50000 100000 3
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 Underwriter Claim Department Accounts 1
12
1According 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 represent the
broker and the insurer
remunerate the broker
Insurer represent both
client and broker
remuneration
Broker only service the
client1
131
If a client needs Mediclaim to cover health insurance which insurer he
needs to apply.Non life insurer Life Insurance Reinsurer Any Insurer 1
141
Insurance agents are
Who work only for insurance
company
Who work for customers Intermediaries
Who works for their own interest.
3
151
Any assets, which are no longer suitable or are earning fewer returns
than expected, should beReviewed
Cashed in for investment into
other assets2
161
If a client wants to compare between all fincial products then the best
person he can approach isIndividual agent Corporate agent Bank Broker 4
171
If the customer wants to seek information about all products, then
he can avail the services ofAgent Broker NGO Bank 1
181
To identify suitable products their main features and their tax treatments
is the role of:Agent Proposer Policy Holder Insured person 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
19
1The main purpose of buying an
insurance policy normally is
to develop the habit of savings
to obtain Income Tax benefits
for protection of fincial security
to obtain loan as when
required to meet fincial obligations
3
201 The basic elements of life insurance
are:
Accident benefit and riders.
Pension and monthly income.
Death cover and maturity
benefit.
Interest yield and variable
income3
21
1
Transactions of sale of life insurance products to the insurable clients are
viewed in the Insurance market mostly as
Sales transactions
Relationship transactions
Monetary transactions
Assured transactions 2 Discuss
221 A Professiol insurance market
carries…..1. Need – Based
Selling2. Product –
Based Selling3. Commission – Based Selling
4. Company – Based Selling. 1
23
1 Insurance Market divided into1. Endowment
and Money Back Insurance
2. Life and General (non-life) Insurance
3. Government and Private Insurance Markets
4. Health and Saving
Insurance Markets
2
24
1 What is Bancassurance?
1. Giving insurance policies to
Banks.
2. Selling insurance
policies through Banks.
3. Giving guarantee to policies by
Banks.
4. None of the above. 2
251 Which of the following do not include
the channel of indirect marketing?1. individual
agents2.
bancassurance3. insurance
brokers4. through
internet 3 Discuss
26
1 The business of Insurance is connected with................
1. physical values of assets
2. economic values of assets
3. metaphysical values of
assets
4. market values of
assets2
271 Human beings need life insurance
because..................1. death is
certain2. death is uncertain
3. the timing of death is
uncertain
4. Death is the solution. 3
28
1 The timing of death is uncertain, so when one should take life insurance?
1. At the time of uncertainty
2. At an early age
3. Anytime in life
4. At the time when Advisor
takes the decision
2
291 Insurance Protects which of the
following?
1. The life of the person paying compensation
2. The risk retained person
's family
3. The fincial goal of the
insured
4. The life of the nominee 3
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 person to act on
behalf of the insurer
3. C.A legal person to act
on behalf of the contract
4. D. An authorized
agent to act on behalf of the
legal company
2
31 1 E-sales refers to sales of insurance products through
1. Insurance brokers.
2. Bancassurance.
3. Individual agents. 4. Internet. 4
321 Insurance business is classified into
three main types:1. Life, Non –life, Micro Insurance.
2. Life, Non Life, Miscellaneous
3. Life, Non life, Re-
insurance.
4.Life, Health, Micro
Insurance3
33
2 lung cancer and smoking .
lung cancer is peril and
smoking is moral hazard
smoking is peril and lung cancer
is hazard Death is certain Is occupatiol
hazard 1 Peril & Hazard
Peril refers to a specific event which might cause a Loss /Damage .A hazard is a condition that may Increase the chance
of perils to happen
Pg:41
342 The type of risk that can be insured
against is Speculative Risk Pure RiskPure &
Speculative risk
Non Fincial Risk 2 Types of Risk
The types of risk that could be insured against are , fincial risk , pure Risk &
Particular risk Pg :42
35
2
Pooling of risk in insurance means
The premium collected &
deposited in a pool
All similar risks are pooled together
Premium is pool to make
claims
Contribution of insurance company
2
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
36 2 Pure risk is classified under Economic risk Speculative risk Fincial risk Insurable risk 4
37
2The consequences of these risks
which will affect specific individuals or local communities in ture is called as
Pure risk Fincial risk Particular risk Physical hazard 3
38 2Law of Large number helps the
insures toCalculate the
premiumIncrease the profitability
Ascertain the death ratio
Declare the bonus 3
392
A person with a crimil background due to Fincial fraud would come under
which hazardPhysical Moral Occupation 2
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 risks that
policyholders will die before a
specified date and hazards are
factors which could influence
that risk.
Perils are factors which affect the risk being insured and hazards
are the size of the risk being
insured.
Perils are factors which
could influence an insured
event occurring and hazards
are the actual events which will trigger a
payout
2
412 Law of large numbers is worked out
by which of the following? Pooling of risk Maintaining
insurable interestWith utmost good faith Randomness 1
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 conditions of the reinsurer
As directed by actuary
As per company policy 1
43
2
In life insurance industry which mechanism operates so as to eble the
individuals to reduce the impact of risks
Pooling of risk Transfer of risk Prevention of risk Sharing of risk 2
44 2Law of large numbers help in
calculating the severity of risk physical hazard moral hazard Probability of risk 1
45 2 Which is the best option to mage risk? Retain Transfer Avoid None 2
46
2
Viy 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 ______
Transfer Control Retaining Avoidance 3
472
Insurance is a mechanism through which risk of an individual can
normally betransferred prevented avoided reduced 1
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 event, Risk is the loss of event and
Hazard is the wrongful even
Peril is the event, Risk is the cause of
event and the Hazard is an
event of dangerous ture
Peril is the event, Risk is
the likely occurrence of the event and
the Hazard increases the chances of
happening of the event.
4
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
49
2
Pooling of risks is one of the fundamental principles of insurance where the Insurers pool the premium
collected from
all types of fincial risks
the homogeneous
risks
the heterogeneous
risks
the speculative risks 2
50
2 Pooling of insurance applies to 1. all types insurance
2. All types of insurance except Motor insurance
3. Only life insurance
4. Only Non-life insurance 1
51 2 The “Risk” contains…. 1. Peril and Hazard 2. Level 3. Uncertainty 4. All of the
above. 4
52 2 Grouping the similar risks by Insurance Company is called as….
1. Grouping of Risk 2. Risk Grading 3. Risk
Assessment4. Pooling of
Risk 4
53 2 The function of Insurance works on….. 1. Risk Transfer 2. Risk avoid 3. Risk
retention.4. All of the
above. 1
54
2
Mr. Mahesh is a software engineer. He has taken a term insurance for Rs.
30,000,00/- for 30 years. This is an example for-----------------
1. Risk retention 2. Risk transfer 3. Risk avoidance
4. Risk tolerance 2
55
2 Which of the following can be an example of moral hazard?
1. a family history of heart
disease
2. a person working in a
chemical factory
3. a person consuming
alcohol
4. A teacher working in a
primary school.3
562 Life insurance the risk is determined
on the basis of .......... 1. future data 2. past data 3. statistical data
4. mathematical
data2
57
2 Which one of the following is possible in retaining the risk?
1. Retaining the ownership in the
policy
2. Not possible as life has many
risks.
3.Is possible by transferring risk
to the policy holder
4.Is possible by Re-insuring
oneself 2
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 the category of peril
risk
3. Under the category of
particular risk
4. Under the category of
Risk Transfer1
59 2 Life insurance company determine the level of risk based on
1. Future expenses.
2. Claim experiences.
3. Present expenses.
4. Targeted bonus rates. 2
60
2 Ram works in a Fire cracker factory. He stocks the cracker in his house.
He runs which type of risk.1. Speculative. 2. Particular. 3. Fincial. 4.
Fundamental. 3
61
2 In Insurance terms, pooling of risk is
1. Using the same pool for
paying claims of car & life
insurance.
2. Using different pool for paying claims of life insurance.
3. Using the same pool for paying claims of life & house
insurance.
4. Using the same pool for paying claims
of life insurance.
4
62
2
An Insurance company pools the premium collected from several Individual to insure them against
similar risk is called:
1. Pure Risk 2. Pooling of Risk
3. Insuraable Risk
4. Sharing of 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. Particular Risk. 3. Fincial Risk. 4. Insurable
Risk 1
642
which of the following refres to specific event which might cause a
loss ...1. Peril 2. Hazard 3. Physical
hazards 4. Uncertinity 2
65
3:1
Harish takes a life insurance policy for Ramesh. Which of the following
statement best describes the principle of Insurable Interest.
Ramesh declares all his
liabilities
Ramesh is elder than Harish
Ramesh owes money form
Harish
Harish suffers fincial loss
incase of death of Ramesh
4 Insurable Interest
Creditor has Insurable Interest on the Life of Debtor to the extend of the MONEY
lent to the debtor Pg :56
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
66
3:1 what is the min age to enter into the contract of insurance 16 18 20 21 2 Insurance
Contracts
Person entering contract should be competent enough . A person is
competent when he is a Major ( above 18 years ) , sound mind ,not disqualified
Pg :53
67
3:1In a whole life plan - The
policyholider's responsibility to give disclosure
at the beginning of the contract
through out the contract Revival stage beginning of
renewal 1 Utmost Good Faith
The proposer knows all the material facts about himself and has to disclose all information voluntarily at the time of
completing the proposal form and submitting the documents
Pg :57
68
3:1Principle of utmost good faith will
operate in existing policy
Every time premium is paid
If the policy has lapsed and it has
to be revived
If the insured person falls sick and is admitted to
hospital
If the insured person changes
his job2
69
3:1Both the parties to a contract must
agree and understand the same thing and in the same sense which is called
Consideration Legality of an object
Consensus ad idem Acceptance 3
703:1 In case of life insurance, Insurable
interest must exist
At inception of policy Not needed At the time of
claimAny time during
the contract 1
71 3:1Group Insurance can be taken in
following relationshipemployee- employer Husband-wife family
memberssociety
members 1
723:1 What amount of insurable interest
does an individual have in his own life20,000 50,000
Up to the sum assured taken
in the planUnlimited 4
733:1 With reference to the principle of
indemnity a life insurance policy is a.
Insurance contract.
Indemnity contract. Value contract. Major life
contract 3
74
3:1
If Insurable interest does not exists at the time of inception of the life
insurance policy then, life insurance contract is
Voidable Invalid Valid Null & voidable 2
75 3:1If a contract is signed by a 15 years
old boy, this contract will be Null and void Invalid Voidable Valid 2
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. Keyman Insurance
C. Partnership Insurance
D. Debtor Insurance 2
77
3:1The concept of indemnity is based on
the key principle that policyholders should be prevented from
Insuring existing losses.
Making false insurance
claims.
Paying excessively for
insurance cover.
Profiting from insurance. 4
783:1 Employee has insurable interest in the
life of their employer to the extent ofYearly Salary Monthly Salary Probation
Period Till Gratuity 2 Discuss
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 Legality of object Capability of
performanceOffer and
acceptance 2
803:1 An insurer can invoke indisputability
clause in case of death only in
Non payment of due premium
Breach of duty of disclosure of material facts
2
813:1 A proposer shows his age lesser than
his actual age. This will be termed as
Breach of utmost good faith Breach of trust 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
82
3:1
Mr. Mehra wants to insure his wife. Previously his proposal was rejected by another company, but this time he
submits the proposal form without showing this to a new company. This
is
Non-disclosure of material facts
Concealment of material facts
Fraudulent misrepresentation of material
facts
Innocent misrepresentation of material
facts
2
83 3:1In which type of insurance Insurable Interest exists at the time of claim?
Liability Insurance Marine Insurance Motor
InsuranceTravel
Insurance 2
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 relationship between the
Proposal and the Life assured
Fincial relationship between the
Proposer and the Life assured
Emotiol relationship between the
Proposer and the Life assured
3
853:1 Principle of utmost good faith is
expected for max up to which stage
Before the contract is concluded
1 Discuss
86
3:1 A contract comes into existence when………
1. One party makes an offer which the other party accepts unconditiolly.
2. One party makes an offer which the other party put extra
conditions.
3. One party makes an offer
where other party gives
counter offer.
4. One party makes an offer which the other party receives
the offer.
1
87
3:1
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 me in order to get monitory benefit.
Insurance company rejects this proposal on the grounds of…….
1. Anti Money Laundry
2. Legality of object or purpose
3. Capacity of paying future premiums.
4. All of the above 2
883:1
Under this situation may leads to breach of the duty of utmost good
faith.
1. Non disclosure of material facts.
2. Concealment of a material fact
3. Fraudulent misrepresentati
on of facts.
4. All of the above. 4
893:1 The principle of utmost good faith is
not applicable to
1. Facts of common
knowledge2. Facts of law
3. Facts those are not
material.
4. All of the above. 4
903:1 Where do you not find insurable
interest in the following options.........1. surety-co
surety2. employee-
employer 3. husband-wife 4. brother-sister 4
913:1 The principle of utmost good faith
applies to........... 1. only insurers 2. only proposer 3. both insurers and proposer
4. neither insures nor proposer
3
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. Capacity to contract
3. Consensus ad idem
4. Offer and Acceptance in the contract
4
93
3:1
Mr.Karan who has to go to abroad for 6 months on an official work decides
to leave his car with his friend Mr. Jim. What will be the validity of the
insurable interest in this case ?
1. The insurable interest between the car and jim is
valid for 6 months
2. The insurable interest between
the car and karan is valid for
6 months
3. The insurable interest
between the car and karan
is valid until he owns it
4. The insurable interest
between the car and Jim is
valid until Karan’s return
3
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 breached the company by
concealing the facts
3. He has breached the company by fraudulent information
4. He had done an innocent
misrepresentation
2
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
95
3:1 A contract exists between insurer and proposer when
1. A proposal has been
accepted by insurer.
2. A policy document has
been stamped by insurer.
3. A policy document has been received
by the policyholder.
4. An insurer has made another
proposal.
1
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 misrepresentatio
n.
2. Fraudulent misrepresentatio
n.
3. Concealment.
4. Non-Disclosure. 4
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. Value contract.
3. Deemed contract.
4. Rolling contract. 1
98 3:1 Life Insurance also known as: 1. Value Contract. 2. Indemnity 3. Commercial
Contract 4. Speculative 1
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
policy
2. This plan is ideal for brother
& sister.
3. Each life will be underwritten
separately.
4. A joint life policy may
cover a partner in business under one
policy.
2
100
3:1
Pooling of insurance applies to
all types insurance
All types of insurance except Motor insurance
Only life insurance
Only Non-life insurance 1
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 the date of receipt of
the policy document
25 days from the date of
receipt of the policy
document
30 days from the date of
receipt of the policy
document
1
102 3:2 Types of assignment Absolute Term assignment Conditiol Absolute &
Conditiol 4 Assignment Sec 38 of Insurance Act 1938 Defines Assignment and its types
Pg:79
103
3:2 why does an insurer insist on age proof document . To assess SA Risk assessment Identity
verificationFincial
assessment 2 Insurance Documents
AGE is a factor for determining the Risk Profile of the Proposer , thus allowing the
underwriters to calculate the premium required for the plan
Pg :69
1043:2
Mr A submitted the proposal form . When will the risk begins for the
company?
Submission of proposal form FPR issued Policy issued Agent accepts
money 2 Insurance Documents
FPR is an Important document which is also an evidence that Risk has begun
Pg :70
105 3:2 The obligation of the insurer for the whole life policy is mentioned in
Operative Clause Preamble Proviso Endorsement 1 Insurance
Documents The operative clause lays down the
Mutual obligation of the parties . Pg :71
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 thump impression Only
policy document need to be registered
Left thumb Impressionof Asvath along
with a declaration of
his friend
4 Key Documents
The proposal form and the proposer's Sigture is the basis of the contract .
Pg :68
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
107
3:2For Logging a Policy , a person gives
Baptism CERTIFICATE & Ration Card . What is this ?
Both are Standard Age
Proof
Both are Non standard Age
Proof
Baptism Certificate is Standard &
Ration Card is Non Standard
Age Proof
Baptism Certificate is
Non Standard & Ration card is Standard Age Proof
3 Key Documents Age proof are standard and non standard Pg :69
1083:2 To be a valid contract ,the declaration
is necessary in which document Policy Document proposal form FPR RPR 2 Key Insurance Documents
The proposal form and the sigture of the proposer will form the basis of Insurance
contract .Pg 68
109
3:2
Mr. ABC buying Term insurance policy, insurer should mention
Ombudsman address in which part of policy document?
operative clause Preamble Information statement schedule 3 Key Insurance
Documents
Policy Information statement includes :facility available for frequency and
method of premium payment ,contact for service and inquiry related to policy ,Ombudsman location and contact
Pg :72
1103:2 Zaib takes insurance in the life of
Jasmeet. Zaib will be called as Proposer Nominee Appointee Trust 1 Key terminologies
The person seeking insurance is a Proposer . Proposer & Life assured could
be the same or different Pg 66
111
3:2Mr.Suresh dies one day before the
grace period without paying the premium, what is th claim payable
No claims payable
All premiums paid Sum assured
Sum Assured less the latest
premium4 Lapse
A grace period normaly is of One month , not more than 30 days for YEARLY ,
HALF , Qtrly mode of premium payment .Pg :74
112 3:2 Loan is available for a policy in which there is a feature of Fund switch Savings Element Partial
withdrawal Surrender 2 Loans & Foreclosure
loan is given as a certain %age of Surrender value
Pg :79
113 3:2 Appointee's role Sigture on the proposal Medical exams insurable
interestwhen Nominee
is Minor 4 Nomition An appointee has to be appointed in case the Nominee is a Minor
Pg :74
114
3:2 how many nominees can be attached to a term insurance policy one two three many 4 Nomition
Any number of nomitions can be attested on the policy . However No % age of share can be mentioned per nominee
Pg :78
115
3:2if a policy has two nominee
mentioned what should be the Min allocation
Each nominee to get Min 10%
Each Nominee to get Min 25%
the first nominee
should have more than
second
No such conditions 4 Nomition &
Assignments
No specific Shares in Multiple Nomitions however can be done for successive
nomitions Pg:78
116
3:2
a Policy holder takes a insurance contract for 30 years and the SA
reduces after 25 years what could be the likely reason
No bonus accumulated
Age proof was substantially
wrong
Policy has become paid
up Its a Ulip Plan 3 Paid Up &
Lapse
Lapsed policy will be made Paid Up and the SA reduced to an amount based on
Premiums Paid Pg :75
117
3:2A life insurance policy can only be
made paid up if what particular policy feature exists?
Indexing contribution. Nomition facility. Rider benefits. Savings
element. 4 Paid Up policies
Policy which have A value , ie endowment and having saving
component can be made paid up in case it lapses during the term after completion
of 3 policy years
Pg :75
118
3:2 Reasons for surrender of the policy SA advisor induced no commission Has Fincial Problems 4 Surrender
value
Also known as Cash Value . The Option for the policy holder to close the Plan during the Term .due to either Persol
Fincial problems or policy being mis sold and benefits not up to the clients needs
Pg :76
119 3:2If a life insurance policy is issued with
a lien, it will be mention in Proviso Schedule Terms & conditions Endorsement 2
1203:2 Available Loan amount under a life
Insurance policy is generally based on
Total paid premium Sum Assured Surrender
value Paid up value 3
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 Endorsements Operative clause
Terms and Conditions 4
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
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
213333 & 229333
229333 & 273333
229333 & 293333 1
1233:2 Whose sigture is required on
attestation of the policy?Agent Policy holder
Authorized officials of
insurerProposer 3
124 3:2The mutual obligation of the parties is
laid down in?Operative
Clause Heading Proviso Attestation 1
1253:2
The Insurance companies allow modification/alteration of the origil
policy documents through...Surrender Paid Up Endorsement Assignment 3
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
health
Premium cheque and health declaration
Only health certificate
Premium cheque with
arrears1
127
3:2
A and B start their policies on the same date and surrender on 22nd
anniversary of the policy. But A’s surrender value is higher than B. the
reason was ;
A’s health was better than B
A’s term was longer than B
B’s term was longer than A 3 Discuss
128
3:2Which from the following would help best the underwriter to know whether the proposer had applied previously
and his application was rejected
Medical reports Proposal form Policy document 2
129
3:2A policyholder wants to change the nomition after 5 years of the policy.
What would happen
Change not allowed
Can be done through
endorsement
Can be done through an
affidavit sworn in
A simple application would do.
2
130
3:2Mr. 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 surrender whole life policy
and can take loan from Money
back policy
He can’t take loan from
money back but can avail
loan from Whole life
policy
He can’t take loan from whole life
policy but can avail loan from
Money back policy
3
1313:2 When does nomination get
invalidated On assignment
If more than one person is nomited
1
132
3:2
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 revisiory bonus system?
60000 75000 100000 5000 2
133
3:2
Vijay received his policy bond on 11th June, 2011. Due to some persol
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, as it is within 1 year
No, as 20 days period is over
Yes, as it is within 3 months 1
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 Legality of object Capacity to
contract Offer 3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
1353:2
A nomition is not required if
Policy is taken under joint life
basis1
1363:2
What is the main source for insurance company to get information of
proposer?
1. Advertisements. 2. Proposal form. 3. Conducting
interviews.4. Telephonic conversations. 2
1373:2
What are the factors involved in calculating Surrender Value of the
Policy?
1. Number of year’s premium
paid.
2. Number of premiums payable.
3. Sum Assured
4. All of the above. 4
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 complaint against
insurance company in
court.
3. He can send back the policy
document to insurance
company with in 15 days from policy receiving
date.
4. Serve notice to insurance company on
policy benefits.
3
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 of the left thumb is taken and the advisor has to
attest it
3. an impression of the left thumb
is sufficient and need not be
attested
4. A relative of the illiterate
person has to sign on behalf of that illiterate
person.
1
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 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 will apply to him?
1. The policy will be renewed on
the existing terms and conditions.
2. Mr. Shanth cannot renew the
policy
3. the policy may be
renewed on different terms and conditions
4. Mr. Shanth can renew the policy only on
the approval of the insurer
3
141
3:2 Which of the following statement is not true in connection with nomition?
1. The life insured can
nomite one or more than one
person as nominees.
2. Nomition can be done either at
the time the policy is bought
or later.
3. A person having a policy
on the life of another should
make a nomition.
4. The section 39 of the
Insurance Act 1938 speaks
about the nomition.
3
142
3:2Which of the following statements in
correct in connection with assignment?
1. Assignee cannot make
fresh nomition in the policy
2. The assignor need not be
major at the time of assignment.
3. Section 45 of the insurance
act speaks about
assignment.
4. Conditiol assignment and
absolute assignment are
one and the same.
1
143
3:2
Mr. Shanth has taken an endowment policy of 20 years. He has paid
premium for 10 years and now the policy is in force. At this point of time
can Shanth take loan?
1. Mr. Shanth will not be granted
any loan
2. Mr. Shanth can take loan
which should be certain
percentage of the surrender value of the
policy.
3. There is no concept of loan
in insurance policy
4. loans are allowed only in
term plans2
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 insurer
2. Policy will be surrendered by
the nominee
3. Policy will be surrendered by the company
4. Policy will be surrendered by
the heir1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
145
3:2 Which of the following information
does not appear in the First Premium Receipt?
1. method and frequency of
premium payment
2. Date of commencement of last premium
3. Date the policy matures
4. Date the last premium will be
paid2
146
3:2
Mr. Raj has taken a policy of 15 year term. He has paid the premium for 9 years. But now unfortutely he has lost
his job. He is uble to pay the premium. What can be the best
solution from the following ?
1. Converting the policy to Term
policy
2. Converting the policy to Paid up
3. Converting the policy to money back
4. Converting the policy to whole Life
2
1473:2 Payment of premium and sum
assured are laid down in1. Heading of
policy document.2. Proviso of
policy.3. Operative
clause.
4. Schedule of policy
document.3
148
3:2 An insurance contract commences when
1. Quotation is signed by proposer.
2. First Premium Receipt is
issued.
3. Proposal Form is signed.
4. Policy Document is received by policyholder.
2
149
3:2 When is premium considered / deemed to be paid?
1. When insured writes a cheque
in favor of insurer.
2. When cheque amount is
deposited in insurer account.
3. When the cheque is
deposited with insurer office.
4. When cheque is
posted/couriered by the insure4.
2
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. 2. Preamble. 3.
Endorsement. 4. Schedule. 3
151
3:2
Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 annual premiums but due to fincial
crisis is uble to make future premium. His policy
1. Acquires surrender value.
2. Contract comes to an end.
3. Moneys will be forfeited.
4. Acquires paid up value. 4
152
3:2 How assignment distinguishes itself from nomition?
1. Nomition does not transfer the
title while assignment
does.
2. Nomition transfers the title while assignment
does not.
3. Nomition is made after
policy is issued while
assignment is done before it
is issued.
4. Nomition need not be informed but assignment needs to be informe4.
1
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 me of Manish is
called:
1. Loan assignment
2. Conditiol Assignment
3. Loan Agreement
4. Absoulte Assignment 2
154
3:2
Which 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. Opertaive Clause
3. Proviso Clause
4. Schedule of Policy 2
155
3:2
Prab is not able to pay premium for continue his policy due to some
Fincial 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 of Premium on
maturity
3. Deduct the underpaid
premium from Sum assured
and payable on Maturity
4. Policy was subject to lien. 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
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.Sum Assured + Bonus
3. Sum assured plus vested
bonus minus any outstanding loan/premium
& Interest.
4. Paid up value only. 3
157
4
While calculating Human life value (HLV) two components need to be kept in mind , the one is take home
salary and other is
Bank Fixed deposit rate discount rate Estimated life
expectancy
Estimated amount at retirement
1 Human Life Value
HLV assumes if the event happens Today how much money one should have in the BANK to get the monthly expenses of the
family to continue .
Pg 95
158
4
Annual premium of insurance product is Rs. 32,000, 4% loading on
Quarterly mode of payment What is the quarterly premium?
7680 8000 8320 8500 3 Premium Calculations
Adjustment to take into account of Expenses & profits of the insurer is called
loading Pg :100
159
4 why ACR To calculate Premium
To Calculate the commission due
for the agent
To verify the Plan proposed
To help the underwriter to asses the Risk
4 Primary Underwriter
Agent Confidentiality Report is mandatory as It helps the Underwriters to have
additiol Information about the Proposer as the agent is in better position having
met / known the client
Pg :102
160 4 In a 20 year with profit policy,persist ency Bonus is paid at the end of 1st Year 10th Year 15th Year 20th Year 4 Types of Bonus Persist ency or termil bonus is given at
maturity of the policyPg :101
161
4
While Underwriting Mr X proposal , its found that there has been CRIMIL case against him in Fraudulent act
.What type of Risk this will be categorized Into ?
Fraudulent Hazard
Occupatiol Hazard
Physical Hazard Moral Hazard 4 Types of
Hazards Moral Hazard relates to attitude or
Intentions & conduct Pg :91
162
4Mr A wants insurance cover . But he is drinks alcohol frequently . What
kind of hazard you may categorize?Physical hazard Moral Hazard fincial risk Pure risk 1 Underwiting
Physical Hazard refers to the physical characteristic of the risk associated with
the proposer Pg :91
1634 Who IS the primary underwriter of
the customer? Underwriter Insuranc eCo Agent Actuary 3 UnderwitingAgents are in direct contact with the
Customer and have an important role to play in assessing the risk
Pg :102
1644
Claim was settled however full Sum assured not paid though the policy
was in force due toLien Bonus Surrender Accidental
death 1 Underwiting Lien is a clause where the underwriter feels the risk will wear out in time
Pg :95
165
4 Lien can be considered an altertive of which of the following Clause Rejection Acceptance Time barred 1 Underwriting
LIENS are clauses which Underwriters apply to the proposal where they feel the
RISK will wear off after certain time duration l
Pg :95
166
4what is the special report that is asked by the underwriter from the officer of
the insurerHLV report
Client confidentiality
report
moral hazard report medical report 3 Underwriting
Special reports from senior officials or agents are taken by underwriters
sometimes if the risk on the policy solicited is high . Informations on
Occupation, habits , lifestyle , income would be asked through this
Pg :90
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 Medical Hazard Occupatiol Hazard
Physical Hazard 4 Underwriting
Under Physical hazard , the Underwriter looks into medical history of the family of
the proposer to asses the risk due to heredity
Pg :91
1684
Net premium is equal to
Premium plus interest earning
Risk premium plus interest
earning
Premium minus interest earning
Risk premium minus interest
earning3
169
4
Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply
2.50% 3.00% 5.00% 7.50% 3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
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 of receiving the
proposal
25 days of receiving the
proposal
30 days of receiving the
proposal1
171 4If bonus is given under a plan the
additiol premium added is known as Loading Investment Frequency 1
172
4
Certificate from the village panchayat
Will be considered as standard age
proof
Will be considered as
non standard age proof
Will not be accepted 2
1734
What will be lien amount in 3rd year as compared to the 4th year of lien.
It is higher Decrease Slightly higher Slightly lower 2
1744
When an individual gets older, chances of obtaining life and health
protection will beIncreases Reduces Remains same Depends on
insurer 2
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 Fradulent Claim
A steep rise in inflation
A sudden illness 2
176
4
HLV is used as a Yardstick to determine
Emotion Loss can be
compensated for
The correct cover needed to
compensate economical loss to their family in case of death of
the earning member
A lump sum amount that the person will get
from the insurance company
2
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. Interest. Discount rate Compounding. 3
178
4
Vishal and sandeep applied for a health plan in XYZ Life Insurance
Company. Vishal is asked to undergo a medical checkup but Sandeep is not
asked to do so. What will be most possible reason?
Sandeep has taken another
policy from XYZ Life Insurance
Company
Vishal is older than Sandeep
Sandeep is earning more then Vishal
Vishal is working in a
MNC2
179
4Mr. Kul 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 Fraudulent representation Moral hazard Peril 1
180
4If the sum assured remains the same, what will be impact of net premium if the age of the policyholder increases
It rises It falls It remains constant
Gross premiums increases
3
1814
For which of the following reasons, the underwriter should ask beyond
agent’s confidential report.Physical Hazard Moral Hazard SA is too high Pure Risk 3
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 different
Age of both the candidate are
different
One has chosen Single
premium policy and other has chosen regular premium policy
Both have chosen
different kind of policies.
4
183
4 Compound reversiory bonus of 4 % will be calculated on
Sum assuredSum assured plus bonus till
date
Premiums paid till date
Sum assured minus bonuses
paid till date2
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
184 4 A lien is generally used as a
substitute to charginga high premium for a high risk
for reduction in sum assured 1
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
Issue a wrong note
Refuse to proceed
Inform the insurer 3
186
4
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 Proposal Form Policy
Document Claim Form 2
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 A Lien A Loading Level Premium 2
188 4 Maximum Life cover20 times annual
salary 500000 1500000 4000000 1
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 his client is not burdened with extra premium
To give truthful report to the Insurer all
about the life to be insured
To see that the plan as
proposed by the client is not
changed on underwriting
3
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 is the HLV of the
proposer
Difference between the Assets and
Liabilities is the HLV of the proposer
Present value of the future earnings less
persol expenses is the
HLV of the proposer
4
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 Age Marital Status Liability 2
192
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?
1. Inflation. 2. Interest. 3. Discount rate 4. Compounding. 3
1934 Moral Hazard reflects the …….
1. Intentions and attitude of Proposer.
2. Habits and Hobbies of Proposer.
3. Occupation and Residence
of Proposer.
4. Medical and Persol History of Proposer.
1
194
4 Income replacement methods equates Human Life Value (HLV) to
1. Future value of Present earnings.
2. Present value of future earnings.
3. Present value of previous earnings.
4. Future value of previous earnings.
2
195 4 Agent will be called as….. 1. Primary Underwriter
2. Main Underwriter
3. Chief Underwriter.
4. Information Underwriter. 1
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 Reversiory bonus, what is bonus amount?
1. Rs. 2500/- 2. Rs. 25000/- 3. Rs. 250000/- 4. Rs. 5000/- 2
197 4 The underwriter can get the required information about the proposer in..... 1. Proposal form. 2. renewal
receipt 3. brochure 4. annual report 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
1984
Mr. Ramesh works in a mining company. So he is exposed
to..............1. moral hazard 2. physical
hazard3. mental
hazard4. Ethical hazard. 2
199
4 Lien is imposed on a policy when underwriter feels that......
1. the risk associated might
increase
2. the risk associated might
decrease
3. the risk associated
might not be harmful
4. the risk associated might be general
2
200
4 What does the mortality tables contains ?
1. Tables of death occurring
in various circumstances
2. Tables of details of various probabilities of
death
3. Tables of details of
underwriter’s calculation on
death
4. Tables of details of actuarial
calculation on death
4
201
4 Mr. 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 affected so
health insurance can be given.
3. He can take insurance after
submitting health
certificate
4. Cannot give insurance for health reason
4
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
brother’s 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 hazard, as he is 52 years old and
wife is not the nominee
3. C. Moral hazard, as coverage is
high and brother’s son is
the nominee
4. D. Moral hazard, as he is a head master and 52 years
old
3
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. Fincial Inspection agencies
2. Specialized inspection agencies
3. Credit worth inspection agencies
4. Insurance Investigation
Agencies4
2044
The responsibility for classification and alysis of the proposal form lies
with whom?
1. Risk Alysis Department
2. Classification of Risk
Department3. Underwriter 4. Actuary who
alysis the risk 3
2054 In underwriting the economic value of
the person is determined by what?
1. The occupation of the
person
2. The fincial history of his
family
3. The income that he earns
4. Human Life Value 4
206
4 When an underwriter may consider Moral Hazard?
1. An individual is proposing SA
15 times his annual income.
2. Insurance is taken out by an individual with dependents.
3. A nominee is not a
dependent.
4. A medical checkup is carried out
nearby place of residence.
3
207 4 Level Premium is calculated based on 1. Risk Premium. 2. Net Premium. 3. Loading of
Premium.4. Gross
Premium. 1
208 4 MPL abbreviates 1. Minimum Possible Loss.
2. Major Possible Loss.
3. Minor Possible Loss.
4. Maximum Possible Loss. 4
2094
What is generally considered as a substitute to charging a high premium
for a high risk?1. Clause. 2. Assignment. 3. Lien. 4. Level
Premium. 3
210
4
Jyoti is submitting is copy of permanents account number card as age proof for buying an money back
plan .her age consider as a
1. Non Standard Age Proof
2. Standard Age proof
3. an Address proof
4. Proof of Income tax
payer2
2114
Which one of the following bonuses is given by insurer as an incentive to the
insured to for long term:
1. Simple Revisiory bonus
2. Compound Revisiory bonus
3. Persistency Bonus
4. Interim bonus 3 Discuss
2124
Ramesh bought an endowment plan for ten year he pays the same Amount
in every year is called:
1. Gross Premium
2. Level Premium
3. Risk Premium 4. Net Premium 2
2134 Which one of the following is not
source of information about the 1. Proposal Form 2. Insurance agent
3. neighbor of proposer
4. Medical of examition
report3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
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. Moral Hazard 3. Medical 4. No
underwriting 2
2154
An underwriter accepts the proposal with certain modified terms and
coditions,What it denotesLien Counter offer Decline Postpontment 2
216 4Loading in a term plan is more likely
beacause of Morbidity MortalityAdmin
expensesInvestment expenses
217
4In case of lien,the risk will classified
as per underwriting standards
better than average risk,at
the early stage of life
better than the average risk ,at
the later stage of the life
Higher than the average risk,at the early stage
Higher than the average risk at the later stage
of life
3
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
Superior of the Sarth's
insurance agent
Insurance company
3
219
4 If 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 risk and
influences moral hazard
motoring sport is risk and influences physical hazard
motoring sport is a physical
hazard and it influences risk
4
220 4If a policy of term 30yrs is imposed with lien, what will be the lien period 5 10 15 20 1
2214
A gave an offer to B and B made changes to the same and returned it
to A. It will be called
modified acceptance Counter offer Rectified offer Rectified
Acceptance 2
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 Anticipated endowment term plan ULIP 3 Insurance
products
Term product is the simplest and the cheapest Insurance plan which gives Life
cover Pg :112
223
5At the time of maturity , quarter of the
SA is paid though the policy was in force
Endowment Lien Money back Surrender 3 Insurance Products
In money back plan , payouts are given at fixed intervals called survival benefits .
Usually 25% of SA is paid in equal interval of the term
Pg :117
2245
Weekly premiums are generally collected for which type/range of
palnsBanca assurance Health plans Micro
Insurance Term Insurance 3 Micro Insurance
Micro Insurance is for Low Income Group . Product ranges from 5K to 50 K
Pg:113
225
5
Mr A is planning to invest and his needs are :1 Protection for is Income ,
during his absence 2.children education
Children Plan Retirement Plan Ulip Plan Term Insurance 3 Protection Needs
Term Insurance will help in protecting the future loss of Income
Pg :109 Discuss
226
5
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
Nil 10% 20% 30% 1 Tax & Inflation The Proceeds of Life Insurance are exempted under Sec 10 (10D)
Pg :118
227
5A policy holder can pay the premium
of Rs 5,00,000 and what could be the max tax efficiency he is entitles to
500000 50000 100000 300000 3 Tax & InflationUnder Sec 80 C , the max Amount under
Tax deduction through Life Insurance premium will be Rs 1 Lk
Pg 118
228
5
Ram has Invested Rs 5000 in PPF & Rs 1 Lakh in Life insurance premium .
In which he will get maximum Tax Benefit
Life Insurance Premium PPF 50% on each
95% on Life Insurance
Premium & 5% on PPF
1 Tax Implications
Under Sec 80 C , the maximum deductible Income from tax in a given
year is Rs 1 Lk .Pg :118
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
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 10% 20% Tax fully exempted 4 Tax
Implications
The premium should be 20% or less than 20% of the SA to avail the tax benefit of
Sec 10 10 d Pg :118
230
5
without submitting any form of claim,a life insurance policy holder received
payments of survival then what type of policy he is holding
ULIP Term Money Back Health 3 Types of PlansPartial Survival Benefits are paid at fixed
intervals without any formalities to be completed by the Policyholders
Pg :117
2315
what is the special feature of ulip that ensures customer risk profile for long
time insurance policiesfund switching partial with drawl premium
holiday riders 1 UlipUlip offers protection with Investment and flexibilities to mage the Investment to the
customers Pg :116
232
5
Kamal is willing to pay 60000/- per annum for his ULIP policy. What
should be the SA in case he wants to avail the tax benefits
1 lac 3 lacs 2 lacs 1.50 lacs 2
233
5
Suresh is suffering from Asthma and the policy in been done on joint life
basis and the need for nomition under the plan is less as
Joint life policy Has physical ailment 1
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 opted for Settlement
option
He has redirected his past premium
Policy was lapsed on the
time of maturity2
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 Term Money Back Whole of Life 3
236
5
For assessing the risk of a group health insurance policy, which of the
following information is the most critical
Group lifestyle Employees Age of the group
Medical history of group 3
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 ROP plan Whole life plan Ulip 2
238
5
Prashant buys an Endowment Plan with a sum assured of Re. 100000
and wants to make use of tax benefit under the policy for whole SA. How much premium would help him avail
this benefit
Less than 10000 More than 10000 Less than 20000
More than 20000 3
239 5What is the ceiling of tax exemption
under 80 c. 1 lakh 1.5 lakhs 2 lakhs 3 lakhs 1
240
5
The agent can use the benefit illustration document to show the
client the projected growth of investment at the rate of –
6% and 10% 5% and 10% 6% and 12% 5% and 12% 1
241
5
Suresh has adequate reserve capital with him and he wishes to protect his income, moreover he feels that if he does not die then he would need the amount. What type of plan should he
opt for?
Term Insurance Plan Endowment plan Return of
premium plan Pension plan 3
242 5Frequent switching is not advisable in
ULIP plan because it increase Investment Risk Risk of death Uncertainty of return
Chances of lapse 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
243
5
Mr. Kartik got a job recently, he can’t 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
Convertible Term plan
Convertible pure
Endowment
Convertible money back
plan 2
244 5What is the minimum Sum Assured
allowed for Micro Insurance? 5000 10000 15000 20000 1
245
5Pick the wrong answer. In a child
plan:
Deferred date is a policy
anniversary.
On vesting date policy has to be assigned to the
life assured.
After vesting the contract is between the
insurer and the life assured.
Deferred date is date on
which the risk commences.
2
246
5 Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness before maturity?
1. Nil 2. 10% 3. 20% 4. 30% 1
247
5
For assessing the risk of a group health insurance policy, which of the
following information is the most critical
1. Group lifestyle 2. Employees 3. Age of the group
4. Medical history of group 3
248 5 Term Insurance Plan will give…. 1. Only Death Benefit.
2. Only Maturity Benefit.
3. Only Bonus Benefit.
4. Only Tax Benefit. 1
249 5 Low risk products give….. 1. High Returns 2. Low Returns 3. Moderate Returns
4. Good Returns 2
2505 The income of an individual can be
protected with the help of.........1. a unit linked
policy2. a term life
policy
3. an endowment
policy
4. a money back policy 2
251
5
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 he survives the term
3. when he is hospitalized
4. when he loses his job 2
2525
Flexibility like partial withdrawal and taking premium holidays is possible
with....1. Fixed deposits 2. Unit linked
Insurance plans3. Term
Insurance4. Endowment
plans 2
253
5
Mr. 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 Business Partner
insurance
3. He can take Key man Insurance
4. He Can take company insurance
3
2545
Mr. Kumar decides that his employees should have SSS scheme.
What type of plan is SSS?
1. Salary saving Life plan
2. Not a specific plan
3. Salary insurance plan
4. Salary Specific plan 2
255
5
Manmohan has recently purchased a house worth ` 50, 00,000 on loan.
Which insurance product you as an adviser will suggest?
1. Endowment Plan.
2. Money Back Plan.
3. Whole Life Plan. 4. Term Plan. 4
2565
To avail the income tax benefit at investment stage, premium should be
maximum1. 10% of S1. 2. 20% of SA. 3. 30% of SA. 4. 40% of SA. 2
2575
Rakesh has bought an Endowment, Money back, Term & Annuity Plan he
would like to avail Loan from:
1. Endowment Plan 2. Term Plan 3. Money Back
Plan 4. Annuity Plan 1
258 5 In Group insurance plans contract of insurance between …………?
1. Master Policy holder & insurer
2. Employer & Employee
3. Employee & Insurer
4. Creditors & Debtors 1
2596
The best way to overcome the problem of investment decision
depends mainly on peer influence is
By Canvassing wide peer group
Seeking professiol advise
Go for a low investment tranchee
Postponement of investment
decision2
Benefits of Professiol
Advise
A agent is a Professiol and gives Need based Solutions
Pg :128
260
6A person who has a temporary job
Loss , where should he look for Investing other than FD
Debt Funds of MF Govt Securities Equities Gold 1 Emergency
funds
Investment for emergency funds should be invested in saving products that offer easy liquidity and can be converted to
Cash without much loss in value
Pg: 138
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
261
6 RBI increased interest rates 2 times then the stock prices increase decrease volatile same 2
Implication of Interest on
saving products
Increase in Interest rates will bring the stock price down
Pg :137
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 4 year 3 Year 2 Year 1 Income Tax
1961To avail Sec 80 C of IT 1961 , the FD
duration has to be 5 or 10 Years Pg 136
263
6
aditya wants to take home loan and his monthly take home is 80,000 what
as a best practice should be the maximum EMI
20000 24000 28000 32000 4 Prioritizing Saving Needs
Care should taken that the EMI do not exceed 40% of monthly take home salary
Pg :139
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
Decrease gradually
Remain Constant
Change as per market
fluctuation3 Saving
Products
Investment is made in Lump Sum and the Interest rate is Fixed at the time of
Inception Pg 135
2656
A person is holding 100 GOLD ETF certificates . How many grams of
GOLD does he Have ?10- 20 gms 20- 50 gms 50-100 gms 10 gms 3 Saving
Products1 unit in ETF represents One Gram or
Half Gram of Gold Pg :135
266
6
A customer while investing in to Recurring deposit or Cumulative
deposit what are the key factors which will matter
Taxation frequency of payment interest rates tenure 3 Saving
Products
Three types of deposits :cumulative , recurring & traditiol . Rate of interest
varies .Pg :133
267 6 A person planning to invest in Kisan Vikas Patra will go to
Insurance Branch Post Office Internet Mutual Fund
Office 2 Saving Products
NSC . Kisan Vikas Patra , PPF etc can be brought from Post office
Pg 135
2686
If a person chooses Cumulative deposit than Recurring deposit
,difference will be in
frequency of interest
calculationTax Interest tax Tenure 1 Saving
Products In cumulative Deposits , Interest is
calculated quarterly Pg :113
2696
A policy holder pays identical premium amount for ULIP and EPF
where he gets max tax efficiencyin ULIP policy in EPF same efficiency
for both
Both do not give tax benefits
1 Tax & Inflation Life Insurance gives 80C Tax Benefit on Premium and 10 10 D on Claims
Pg 136
2706
Investing in ULIP plans exempts a maximum up to what limit for Income
Tax50000 75000 100000 200000 3 Tax
Implications
Under Sec 80 C , the maximum deductible Income from tax in a given
year is Rs 1 Lk .Pg :136
271
6Suresh wants to transfer his physical gold to gold exchange traded fund,in
relation to access,this change will
not hedge against Inflation
Decrease his liquidity
Reduce his encasement for next six months
Insurance against
Uncertainties 4
Types of Saving
Products
Good returns , Portfolio diversification ,hedging against Inflation are the other
reasons for ETFPg :135
2726 An Investor has invested in Debt
mutual fund,he is ideally looking for Equity return Fixed Income Stable income Savings income 4
Types of Saving
Products
Debt instruments caters to Saving and secure income
Pg :138
2736
With this type of deposit the bank pays the principal and the total interest at the end of the term
Traditiol deposits Recurring deposits
Cumulative deposits Term Deposits 3
2746
In Cumulative bank deposit the interest that in normally compounded
on what basisMonthly Quarterly Half Yearly Annually 2
275
6Amit 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 Principle amount
Discounted Value with persistency
bonus
Principle with persistency
bonus1
276
6
And received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the
reason
Administrative charge Inflation Interest rate Market Risk 2
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 get tax benefit up to
25%
He will get a reduction in tax
slab
His investment would be
deducted from taxable income
4
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
278
6
If a policy with premium of Rs 5000 has matured, how much will be
deducted when the maturity claim arises
Nil 1% 5% 10% 1
2796
When a person is investing in Debt Mutual Fund, what is the primary
objectiveGood Returns Regular Income Safety Liquidity 4
2806
Payment/Investments in Kishan Vikash Patra under post office
schemes
Regularly with no fixed term
Lump Sum with no fixed term
Lump Sum for fixed period of
time
Regularly for fixed period of
time3
2816
What is the similarity between Recurring Deposits & cumulative
deposits in a bank Guarantees Taxation Tenure Lock in periods 1
282
6Mrs. Sheela received some amount
out of her husband’s death. In such a situation what will be her prime focus?
Savings Insurance Investment magement
Planning for pension 3
2836
If a person want to maintain emergency funds the best place is a
bank orEquity market ULIP Debt mutual
fund FD 3
2846 What is the advantage of converting
physical gold assets to gold ETFs.Liquidity More gold in
value PurityMore
conversion value
1
285
6 Suresh wants to transfer his physical gold to gold exchange traded fund,in relation to access, this change will
Increase his liquidity
Decrease his liquidity
Reduce his ability to
encash for next six months
Create a future exit liability 1
286
6
A client has his investment in equity shares. Agent advises him to keep it in equity based mutual fund. This will
make the risk
Diversified Lessened Increased 1
287 6 Bank interest is accumulated Monthly Yearly Quarterly Once in 6 months 4
2886 Bank savings account earn
cumulative interest at what frequencyMonthly 1 Discuss
2896
If I invest in a G sec partway(ignore periodic interest payments).I will get
on MaturityPrinipal amount 1
290
6
And received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the
reason
1. Administrative charge 2. Inflation 3. Interest rate 4. Market Risk 2
291
6 Who will maintain Mutual Fund Schemes?
1. Mutual Fund Magement Societies
2. Mutual Fund Magement Systems.
3. Asset Magement
Companies.
4. Asset Maintence Company Limite4.
3
292
6 Which is the primary saving need among all saving needs? 1. Insurance 2. Purchasing
House 3. Investment.4. Contingency/
Emergency Fund.
4 Discuss
293
6
Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this amount for his daughter’s 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 2. Shares 3. Fixed Deposit in Bank
4. Mutual Funds. 3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
294
6 The disposable income means......1. the surplus
amount that can be invested
2. the amount that can be paid towards one's
EMIs
3. the annual bonus amount
4. the sum of one's all
investment1
2956 Which of the following ways is easier
for a person to take a saving product?1. through
individual agents2. through
internet3. corporate
agents 4. call centers 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 2. Mutual fund 3. Shares 4. Bank deposits 4
2976
The concept of Risk diversification is applicable in which of the following
instrument ? 1. Mutual Fund
2. Risk Diversified Insurance
3. Shares 4. Risk Sharing insurance 1
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. Capital Profit 3. Capital
Benefit4. Capital Variation 1
2996
Which of the following can’t be ducted under section 80 c from
taxable income?
1. Pension Funds
2. Public Provident Fund
3. Employee Gratuity Fund
4. Infrastructure Bonds 3
3006
Who act as an intermediary by offering a trading platform for buying
and selling of shares?
1. Bombay Share exchange
2. Bombay Stock exchange
3. Stock brokers
4. Share brokers 2
3016 The savings needs of a particular
individual is majorly determined by
1. Amount of disposable
income.
2. Current assets.
3. Current liabilities.
4. Duration of investment. 4 Discuss
302
6
For his investment need, Ravi has parked funds in equity. The returns from this form of investment can be
categorized as
1. High Risk. 2. Low Risk. 3. Moderate Risk. 4. No Risk. 1
303
6
While calculating the expected returns from investments and savings, an individual should make provisions
for
1. Taxation only. 2. Inflation only. 3. Taxation & inflation both.
4. No provision is require4. 3
304 6 Time deposit account is issued by: 1. Post office 2.Bank 3.Mutual Fund 4. Life Insurance co. 1
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. Infrastructure Bond
3. Health Insurance
4. Interest paid on education
loan2
306
6
In which of the following Bank pays the Interest on the deposit’s fund on
monthly /quarterly /half yearly/ yearly basis as chosen by depositor fund:
1. Saving Deposit
2.Cumlative deposit
3. Traditiol Deposit
4. Fixed Deposit 3 Discuss
307 6Sanjeev in a lumsum investment is getting benefit of multiple securities Bonds Fixed Deposit Mutual Fund KVP 3
3086
If the client prefers bank fixed deposit rather than cumulative deposit ,due to
what implication ?Investment Frequency Interest Rate Look in period Taxation
1
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
Differed Annuity Option
Guaranteed period option
Open Market option 4 Annuities
Open market option allows the Annuitant to get the best scerio by taking his/ her
annuity from other companies Pg :155
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
3107 what frequencies can one take
annuitymonthly,quarterly
,half yearly,
fortnightly,quarterly,monthly,yearl
y
fortnightly,monthly ,half yearly,
yearlyYearly Only 1 Annuities Most of the people choose Monthly Mode
thoughPg:157
311
7All ULIP pension plans have to give
how much percentage as Guaranteed returns
6% 9% 4.50% 10% 3 Annuities
As epr IRDA regulation post 1st Sept 2010 , The minimum Guaranteed returns
in a pension plan has to be 4.5% . The insurer will have to invest very prudently
to get this %age return
Pg :157
312
7Yash wants to take open market
option in Pension plan. What is the benefit?
To save tax To switch the underlying fund
For improved annuity rate
To continue life cover 3 Annuities
Open Market Option allows the Annuitant to look at the best Rates in the market
from other Insurance companies before taking the pension payouts
Pg :156
313 7 Commutation option allows the annuity policy holder to with draw 25% 50% 40% 33% 4 Annuities One third of the Corpus can be withdrawn
on vesting date Tax Free Pg :156
3147 commutation is a feature of which
type of policy annuity joint life policypure
endowement policy
policy of another person 1 Annuities
Commutation allows the Annuitant to withdraw 1/3rd of the corpus amount Tax
Free at vesting date Pg :156
3157 Waiting period in a health insurance
policy is to address Age discrepancy Pre existing illness risk premium 2 Health plans
Most Insurer have waiting Period in the health Plans for covering any pre existing
illnesses Pg:151
316
7Under a health insurance policy,if a policy holder needs to avail his no claim bonus, how can that be done
cash encashment
discount in the next premium
increase in the cover level
certain policy exclusions 2 Health plans
No claim bonus is a feature of health plans in which if no claims are made in a policy year , the insurer will give some discount on the next renewal premium
Pg :151
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 Danny & his Wife
Danny , His wife ,His children
Danny's family and his parents 4 Health Plans
Family members can be covered under One Umbrella . However some Insurance
Companies will have specified the number of members one can take under
Family floater
Pg :150
318
7 Implication of Daily Hospitalisation benefit paln Fixed amt daily SA
Amt for particular
diseases daily
On the expenses
incurred daily due to critical
illness
1 Health products Fixed amount is paid on hospitalization on a daily basis
Pg :150
3197
Rupkumar wants to take Commutation option. What is the
maximum amount he can withdrawone sixth one third 25% 15% 2 Pension Plans
Under Sec 10 10 A , Commutation , you can withdraw 1/3rd of the Corpus Tax
FreePg :156
320
7Critical illness rider was taken and the rider benefit has been claimed , the
rider benefit now gets
Reduced the the base SA termited continues as it
is
New critical Illness Rider
has to be added to base
Policy
2 Riders
Lump Sum SA of the rider benefit is paid on diagnosis of the critical illness as per the Rider Feature and subsequent claims
under it will not be paid as the rider termites
Pg :154
321
7A person has taken a term insurance
of 4 Lac. What is the maximum Critical Illness Rider he can take
1 Lac 2 Lac 3 Lac 4 Lac 4 Riders Benefits arising of the Riders cannot exceed the Base Plan SA
Pg :155
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% 30% 40% 50% 2 Riders According to IRDA regulations Premium
of all riders taken together should not exceed 30% of the base policy premium
Pg :155
323
7
Mr.Ramesh invested Rs:50000 in pension policy, what is the percentage he can avail as exemption in Income
tax.
33%Pension plan is not eligible for tax exemption
100% 20% 1 Tax Implications
Under Commutation , person can take 1/3rd of the corpus amount Tax Free at
vesting date under Sec 10 10 aPg 157 :B6
3247
In a Guaranteed annuity option of 5 years , the policy holder will get
annuity tillentire life term
till 5 years and continue till
annuitant lives
annuity only for 5 years
premium payment term 2
Types of Annuity
Payment
Pension Payout is fixed for certain period guaranteed like 5,10,15,20 and then till
Life of the annuitant Pg:156
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
325
7 The Premium on all riders put together should not exceed
10% of the premium on the
base policy
20% of the premium on the
base policy
30% of the premium on the
base policy
40% of the premium on the
base policy3
326
7 How riders will help the customer in life insurance
allows policyholders to customize their insurance cover
with additiol benefits
Rider is like a clause
Operative clause
Rider is like Preamble 1
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 company may pay an additiol amount on a
daily basis if the insured is
admitted to the Intensive Care
Unit (ICU)
The insurance company will pay for doctor consultation fees incurred
prior to hospitalization
Only surgery expenses are
included in daily
hospitalization benefi
1
328
7In term insurance if Critical illness rider claim happens then what will
happen to existing policy
CI benefit will cease
CI benefit reduced from existing sum
assured
CI benefit continues
No change in policy 1
329 7Family floater health Insurance plan
coversAll members of a
FamilyHusband and
Wife only Parents only Children Only 1
330
7How the Daily hospitalization cash
benefit will provide benefits to policyholder who is hospitalized
Entire charges are refunded
Entire charges less bed charges
will be paid
A fixed amount on a daily basis
is paid irrespective of the actual cost of treatment
Only Hospital bill will be paid 3
3317 The premium for accidental death
benefit rider must not exceed15% of base
policy premium25% of base
policy premium30% of base
policy premium40% of base
policy premium 3
332
7 Under the hospital care rider what is the payout made
10% of the sum assured
Specified amount
multiplied by the number of days the policyholder is hospitalized
2
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 expert’s
suggestion
Equal to base cover 2
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 admitted in hospital & surgery
expenses in partial
Treatment cost of surgery subject to terms &
conditions
Lump sum amount what
he has incurred 3
335
7
Health insurance policy holder takes treatment in a hospital which doesn’t have cashless facility. How the policy
holder will get benefited
Need to spend and Get claim
from the insurer
Need to add that hospital as TPA
Need not to claim
Need to switch to the another
insurer 1
336 7Health insurance rider and critical
illness rider in classified underLife and non life
respectivelyBoth life
insuranceBoth non life
insuranceNonlife and life respectively. 2
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
337
7In a pension plan illustration what are the parts which shows the benefit for
an annuitant.
Insurance coverage Annuity part
Guaranteed and non
guaranteed partVesting age 3
338
7
What is commutation of installments
The lump sum withdrawal
before receiving periodic
installments of annuity
The lump sum withdrawal
before receiving maturity benefit
The lump sum withdrawal
before receiving
Survival benefit
The lump sum withdrawal
before receiving Death
benefit
1
339
7
Health Insurance is needed because
Life is very uncertain
Cost of healthcare has
increased significantly
Premium increases with
age2
340
7
Rajan 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 lacs
The claim will depend on the
surveyor
The maximum claim will be of
4 lacs
Rajan will get a claim of 3 lacs and Rajini will
get 1 lacs
3
3417
Open market option under Annuity policy would extend which of the
following benefit?
Ensure Better annuity rate
Increase in the range
Increase in return
Switch of Funds 2
342
7
Ajit and vijit are 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 65
Ajit is NRI and vijit is Indian
Ajit’s health is better than vijit 1
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 standard of living 1
3447
In case of pension plans a guaranteed minimum return of 4.5 % is applicable
when the plan is Indexed Guaranteed Unit linked 3
345
7
Which of the following is true regarding Family Floater Health
Insurance Plan?
A Family Floater Plan is the same as a Individual
Plan
Only self and spouse can be covered in this
plan
Any number of people may be covered in this
plan.
The insurance cover is shared
amongst the family
members in no fixed
Proportion
4
346 7 In what proportion is the cover in a
Family Floater Plan shared? 25% each 15% each 50% each No Proportion 4
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
Hospitalization Care Rider
Accidental Benefit Rider
Surgical Care Rider 2
3487
Mr. X is married with wife, 2 children and aged parents Health premium is
allowed forX only X with wife X with wife and
kids X with all 4
349
7
Hospitalization rider has the following benefit:
Person receives fixed amt daily
for no of days in hospital
Person receives an amount equal to the expense.
Person receives a
fixed amount of 1000 daily.
Person receives
benefit only if he is
hospitalized for 3 days
minimum
1
350
7
In a Health insurance plan what the particular feature is likely to cause the
Insurer to decrease the Renewal premium?
Cashless facility Exclusion No claim bonus Waiting period 3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
351
7
Daily hospitalisation benefit:
No of days spent in hospital
multiplied by Daily
hospitalisation benefit
1
352 7 ADB rider premium cannot exceed30% of the base
premium 1
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 be continued for next 5 Years
3. till he die 4. not remembered 2 Discuss
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. Hospitalization Care Rider
3. Accidental Benefit Rider
4. Surgical Care Rider 2
355
7 Which of the following product not
comes under Section 80 ( C ), income tax act 196
1. tiol Saving Certificates.
2. Equity Linked Saving
Schemes.
3. Principle component of
home loan.
4. Premium paid for Health Insurance Plan.
4
356
7
Mr. Suresh purchase one pension plan and accumulated Rs. 9,00,000
amount in his pension fund. He would like to utilize commutation benefit
before taking pension. What is amount Mr. Suresh can withdraw as
commutation?
. 3, 00,000/- 4, 50,000/- 90,000/- 4, 85, 468/- 1
357
7
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. Accumulation Phase
3. Pension Phase.
4. Primary Phase. 2
358
7 Some Health Plans will give
coverage for family members also. We will call these plans as…..
1. Family Health Insurance Plans
2. Total Protection Policies.
3. Family Floater Health
Insurance Plans.
4. Family Rakshak Health
Plans.3
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 Health Plan, Insurance Plan separately.
3. Taking Medi-claim plan with Life Insurance.
4. Taking Hospital
Benefit Plan with
Endowment Plan.
1
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 married with children. 3. Retirement. 4. Children. 3
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 ideal for helping
to prevent a policy lapsing due to non-payment of
premiums due to death or disability
3. The main strength of WOP is the
payment of full sum assured.
4. WOP rider can be offered with all plans
4
362
7
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 2. life annuity 3. deferred
annuity4. joint life
annuity 3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
363
7
Mr. Ranga has taken Critical Illness Rider. In which of the following
scerios the insurance company will pay him......
1. When Mr. Ranga dies due to critical illness
2. When Mr. Ranga is
diagnosed a critical illness
3. When Mr. Ranga's family member will be in critical illness
4. When Mr. Ranga dies due to severe road
accident.
2
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 .Unfortutely 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 hospital charge Rs 20,000 and 1
lakh for death will be settled
3. Claim will not be settled as he died due
to cancer
4. Claim will be settled as per
the instructions of underwriter
1
3657 Which one of the following cannot be
covered under Critical illness rider? 1. Blindness 2. Paraplegia 3. Coma 4. Brain Surgery 4
366
7
Mr. Yash has taken an annuity on 25th August 201The benefit of the
plan will start from 25th August 201 What type of annuity plan is this?
1. Guaranteed period annuity 2. Life annuity 3. Deferred
Annuity4. Immediate
annuity 4
367
7
Rohit is working as sales mager with an FMCG company. His job requires
him to travel across states. He is planning of covering his additiol 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 purchase a health plan along
with a savings insurance plan.
3. To save through fixed deposits in
bank.
4. To purchase a medical plan. 1
368
7
The 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 premium remains constant with increasing
age.
3. The premium may
increase or decrease with the increasing
age.
4. The premium
increases with increasing age.
4
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. Bank fixed deposits.
3. Health insurance plan.
4. Savings insurance plan. 3
370
7
And has purchased a pension plan which is nearing completion of
accumulation phase. He is in need of finces 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 of accumulated
amount.
3. 2/5th of accumulated
amount.
4. 2/3rd of accumulated
amount.2
371
7 Which of the following is not featured and benefit of rider?
1. Providing additiol cover
2. Maturity benefit
3. Nomil cost & flexibility
4. Customization
and tax benefit.2
372
7
Gaurav bought an endowment plan for 20 year of 10 lac SA with ADB
Rider, died in road accident after 10th year how much money claimant would
be payable:
1.10 lac 2. 20 lac 3.30 lac 4.5 lac 2
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. Critical illness (CI)
3. Hospital Care (HC) 4. Term Rider. 3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
3747 The risk of unemployment is covered
with what benefit in the policy Rider Continouation Subsidiary discount1
375
7
In Surgical benfit rider what would be the payout procedure
Per day Hospital Cash Benefit Respective to
the surgery made
Per day Hospital Cash Benefit
irrespective to the surgery
made
Will get lumsum benefit
respective to surgery have been made
Irrespective to the sugery
3
3767
A Critical Illness claim is settled in a policy. The benefits of the policy can
be used for Only for IllnessFor Repairing
houseOnly For
Doctors fees Not specified4
3777
If a health rider is taken in a policy, maximum rider premium can be
%age of base premium 25% 50% 75% 100%4
378
7
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 TaxationPremium increase
2
3797
Under daily hospitalisation cash benefit scheme the amount payable is
increased due to what reasonChange in hospital
Special consultant charges
Admission to ICU
3
3807 Insurance addresses the needs of
people with risk of living too long by..Extensive
documentationRestricting the
max age at entry
Extensive underwriting at
inception
Retirement and pension plans 4
381
8
Why do Self Employed Individual have the need to buy Medical
Insurance rather than People working in public Sectors
Public Sectors do not get Sick
often
Public sector employees enjoy
Medical Insurance
Covers related to Job
Self Employed people do not
have Sick Leave
Loans are available faster
for Public sector
EMPLOYEES
2factors
affecting Life stages
Public sector makes provision for PPF , health
Pg:172
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
Health policy for wife
Life insurance policy for wife
Life Insurance policy for himself
4 Life stages Protection of Asset is the most factor Pg :170
383
8
Manoj a 26 year old is having 7 years old son. What will happen to his
monthly disposable income after 15 years of job
Margilly decrease
Singnifcantly increase
less than after 15 years
will remain same 2 Life stages
The Income earning capacity keeps going up there by allowing the disposable
income to increase as the time goes.Pg :164
384
8Samir is married and he has only one partner,with dependant parents and no child,which should be his priority
income protection
inheritance planning
investment efficiency
long term savings 1 Life stages Single Income family , Insurance
protection is very important Pg :168
385
8
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?
Young married couple
Young married with children. Pre-retirement. Retirement 4 Life stages
The clinet needs @ Retirement age is Investment to get regular income , estate
planning and revisiting the health insurance plans to see their adequacies
Pg :170
3868 A Couple has 7 years old son, What
solution would they be looking for Retirement health care child education life cover 3 Life stages Along with Life cover , child education planning is important stage
Pg :168
3878
In which of the recognized life stages an individual does not required any
protection coverChildhood Young Married Pre Retirement Retirement 1 Life stages of
Clients Children normally do not have their own
Income source Pg :167
388
8
Benefit Illustration given to a customer quantifies an amount by
which investment return is reduced. This reduction reflect the impact of
Charges Interest Inflation Taxation 1 Fact finding The Electronic benefit Illustration gives all information of Returns , Charges
Pg:194
389 8Life insurance is the most important
for which age group Young Pre- retirement Retirement children 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
390
8
Ashish is looking at different plans of insurance for protection at the lowest premium. Which is the best plan for
him?
Term plan Endowment plan Whole life plan Money back plan. 1
391 8During Fact finding, rating is mentioned ‘3’. This Indicates
Risk apatite of client
His future aspiration
Commitment to need
Willingness to pay 1
392
8Shailesh 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.
Shailesh’s income is more
than Ankit’s income
1
393
8
During fincial 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 Marriage Emergency funds
Income protection 4
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 insurance for parents
Term Assurance
Endowment Plan 2
395
8
In the context of fincial planning, how is the difference between real needs and perceived needs best described?
Real needs are fincial needs and perceived needs are non-fincial
needs.
Real needs are actual needs and perceived needs are based on a client’s thoughts
and desires.
Real needs are identified by
the insurance agent and perceived needs are
identified by the client.
Real needs are needs which
satisfy an objective and
perceived needs are
needs which do not satisfy an
objective.
2
3968
If a person is concentrating more on health plan and retirement plan then
at which stage of life is he in.Young unmarried Young married Young married
with Kids Pre retirement 4
397
8
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?
Marriage. Savings. Education. Protection. 1
3988 During fact finding, What will be the
next step after Identifying clients need
Quantify clients need
Priorities Clients Need
Recommending Product
Fill up the proposal form 1
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 Term Plan Endowment Plan ULIP 4
400
8Sumit is having 2 children. He wishes to have health cover for himself and his wife. Which suits him the most?
A family floater Life insurance Individual cover
Group health insurance plan 1
401
8
A client has got some funds and wants to provide for retirement and margin money. What should be his
priority
Margin money Retirement plan
Depends upon his actual age and years left for retirement
Depends upon the amount
needed3
402
8
While planning for retirement fund to calculate the required amount needed
at that time we should consider as priority
The inflation rate The interest rate His income 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
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 Term Whole life Moneyback 3
404 8The income of an individual can be
protected with the help ofa unit linked
policy a term life policy an endowment policy
a money back policy 2
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 Health Insurance Life Insurance Retirement 4
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
cover
Dictate the Rider Benefit should
be recommended
Helps to quantify the
client’s attitude to risk
Influence the tax status 3
4078
Mr. Shyam is having 9 year old child. Which product is not to be given
priority?Health plan Child Plan Life Insurance Retirement
Plan 4
408 8What is the major reason for self
employed to take insurance. Save Tax Fluctuating income High Returns Protection 4
409 8What is the major reason for
conducting fact finding exercise? Need alysis Understand about company
Introduction of agent
Understanding the Customer 1
410
8
veen, aged 32 years, has taken money back plan. He is a teacher by profession. veen 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 veen and Ram are of same
age.
No, customers needs are different
Yes, as both are teachers
No, as there is an age
difference.2
411
8There 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, Risk increases and the Risk
appetite decreases
Age increases, Risk decreases
and the Risk appetite
increases
Age increases, Risk decreases
and the Risk appetite
decreases
2
412
8
Regular savings creates a fund to meet adverse incidents in future. For
drawing a fincial plan for savings needs of an individual without capital, what is the Fund which comes first?
Retirement fund Emergency fund Fund for untimely death Education Fund 2
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 Accident Benefit
rider to the proposed
Endowment assurance plan
By addition of Term
assurance rider to the proposed
Endowment assurance plan
By addition of Premium
waiver rider to the proposed Endowment
assurance plan
3
4148 A provision for superannuation is
normally taken a high need to
a Public sector employee
an unmarried young
A self-employed
person
A Government employee 3
415 8A person has 6 months of emergency
funds.This is: Reasoble 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
416
8
During fincial 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 2. Marriage 3. Emergency
funds4. Income protection 4
4178 Perceived needs are those…. 1. Short term
needs.
2. Imagined to be important by
Advisor.
3. Imagined to be important by
client.
4. Long term needs. 3
418
8 Need alysis involves identifying………
1. Fincial provision to meet predictable and unpredictable
needs.
2. Capacity to pay the
premiums in future.
3. Existing insurance
plans.
4. Family and Employment
details.1
4198
Mr. Shanth is in his early 20s and has just started earning. His risk appetite
is expected to be.....1. high 2. low 3. normal 4. Neutral. 2
4208
The younger the age of an individual..............their liabilities will
be.1. the lower 2. the higher 3. the smarter 4. the superior 1
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. Post retirement stage
3. Married with older children
stage
4. Employment stage 1
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. Perceived need 3. Imagiry need 4. Important
need 2
423 8 Which are the two primary needs of any customer in any point of life?
1. Investment and retirement
2. Investment and Protection
3. Investment and savings
4. Investment and life needs 2
424
8 The concept of need based selling involves
1. Selling what company wish to
sell.
2. Selling what adviser wish to
sell.
3. Selling what customer
requirement is.
4. Selling what IDRA wants company to
sell.
3
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. Tax planning need.
3. Fincial security need.
4. Asset building nee4. 3
4268
The Central Bank has recently announced the decrease in interest
rates. The prices of bonds are
1. Likely to increase.
2. Likely to decrease.
3. Will fluctuate.
4. No change is likely. 2
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, Quantify &
Prioritize Needs.
3. Quantify, Identify & Prioritize Needs.
4. Prioritize, Quantify &
Identify Needs.2
4288
Amit is looking for term insurance plan for protection of his family, he is
advised to approach to:
1. Property Insurance 2. Life Insurance 3. Health
Insurance4. Liabilty 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 the life partners are
earning members of the
family.
3. When the income of a family is just the double of
income of another family.
4. When the members of a family do not work at all.
2
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
4308 In which of the following case there is
no defined retirement age?1. Public sector
employees2. Private sector
employees3. Professiols & Businessmen
4. All of the above 2
431
8 Which one of the following is true?
1. Every individual’s income and expenditure
pattern is same.
2. Every individual’s income and expenditure
pattern is different.
3. An individual’s income and expenditure
has no relation.
4. An individual should not keep
in mind his income while planning his expenditure.
2
432
8Ram has set a provision for
contigency which can survive for 6 month .This amount is considered as
Adequate Idequate too low too high 1
433
8XYZ client wants to buy a car in future , however his fincial planning shows that he cannot afford car as of now
.As a fincial planner you should
Explain him difference
between real need &
perceived
Explain him difference
between fincial & non fincial need
Explain him difference between
important & unimportant
need
Explain him difference
between short term & long term need
1
434
8 Which is suitable life stage to buy Unit linked insurance plan?
Young Married with no children
and Single income family
Young Married with no children
and Double income family
Young Married with children and Single
income family
Young Married with children and Double
income family
2
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 Childhood Pre retirement4
4369 objective of fact finding client need alysis Product Pitching for completing
ACR Finding out
Moral hazards 1 Fact Findingfact finding process helps in identifying
the clients fincial needs, to quantify them & to prioritize them ,
Pg :184
4379 Fact finding sheet allows the agent to Alyze customer
needsSelect the
product Proof Reference 1 Fact findingFact finding as a process is to identify the
clients needs , quantify them and prioritize them
Pg :184
438
9Mr A has been approached by the
Agent and on fact finding the score is 3 , this represents
Low Risk Taking High Risk Taking Moderate Risk Taking
Zero risk Taking 3
Fincial Planning objective
The grading is in 0 -5 rating , O denotes No risk taking ability and 5 denotes High
risk taking ability of the client Pg 190
4399
To ensure that the premiums are paid out of a legitimate source of funds
cash is acceptedUp to Rs 50000 Up to 99990 Up to 100000 Without any
limit 1
4409
With effect from 1st July 2010 all insurers have to disclose in the
benefit illustration document the..
Commission Pay to their agents Detail of charges Both of the
aboveNone of the
above 1
4419
If the client accept the recommendation, then the agent
should ask the client..
To pay the premium
To fill in the proposal form
To ask the documents
None of the above 2
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 Consulting the client’s parents
Consulting the family of the
client
Reviewing his existing
investments1
4439
During product recommendation the agent should explain the product in
relation to
The needs that came to fore in
fact find process
Benefits of the products
Commission on the products 1
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 KYC document
Benefit illustration document
Client benefit document 3
4459
resh is married and his daughter Sneha is 3 years old. Which plan can
he take?
Term & Children Plan Annuity Plan Whole Life
Plan Health Plan 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
446
9 If the recommendation of the agent has been rejected by the client, the
agent should:
Ask the client to fill the proposal
form
Find out the reasons for
refusal
Must try to convince the
client to follow his
recommendation
Must try to force the client
to follow his recommendatio
n
2
447
9
Fincial 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 Unemployment Sickness Education 4 Discuss
4489
Which one is not an assetHouse House loan
Investment in shares and mutual fund
All of them 2
4499 During Fact finding, rating is
mentioned ‘3’. This Indicates1. Risk apatite of
client2. His future aspiration
3. Commitment to need
4. Willingness to pay 1
4509
Which type of questioning is very useful to gather information from
clients?
1. Closed Ended Questions
2. Open Ended Questions.
3. Interrogative Questions.
4. Clarification Questions. 2
451 9 Which is the not part of KYC norms? 1. Photographs 2. Proof of identity
3. Proof of address.
4. Lapsed policy details. 4
452
9 During the recommendation stage the advisor needs to......
1. recommend the products that
best meet the client's needs
2. recommend to wait some days
to invest
3. recommend the new
product the company has
recently launched
4. Recommend to take his own time to take a
decision.
1
4539
In which of the following an agent will collect the customer’s Persol data,
professiol data and fincial data
1. Fact Finding Sheet
2. Advisor Confidential
Sheet
3. Customer Data sheet
4. Persol and fincial data
sheet 1
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. B.KYC document
3. C. Benefit illustration document
4. D. Client benefit
document 3
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. Client’s Profits and Withdrawals
from business
2. Client’s Expense statement
3. Client’s business details
4. Client’s business records
1
456
9 As an adviser why is it essential for you to carry out the fincial planning
exercise with the prospective clients?
1. Individuals understand their real needs and can prioritize
them.
2. Individuals have same
fincial needs at different stages of the life cycle.
3. Individuals do not
understands their real needs
and cannot prioritize them.
4. Individuals’ real and
perceived needs are
same.
3
457
9
After undertaking fincial 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. Listening skills.
3. Communication
skills.
4. Client information
gathering skills.1
458
9 The objective of Fact Finding is to 1. Gather Clients Information only.
2. Identify only the client’s
needs.
3. To provide solution of company’s
choice.
4. Both identify clients’ needs &
gather information.
4
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
459
9 To explain the benefits of a product, the insurance adviser should
1. Provide the product brochure
to the client.
2. Provide Benefit
illustration documents to
client.
3. Provide the terms and conditions
document to the client.
4. Provide the website
address to the client.
2
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 of new business for
adviser.
3. Bad reputation of the individual
adviser.
4. Fincial burden on the
couple.2 Discuss
461
9
To prove one’s identity in accordance with KYC process, the customer
needs to submit following document excluding ……….?
1. An Age Proof 2. An Identity Proof
3. An Address Proof
4. Education Proof 4
462
9Vinod being an insurance agent can offer assistance to his client Ramesh
by:
1. Providing him emergency fund.
2. Matching the product with
Ramesh‘s fincial need.
3. Recommendation of product with highest
return.
4. Discourse saving in a
purposeful and need based
manner.
2
463
9 Objectives of fact-finding do not include- 1. Identify needs 2. Gathering
client data
3. Provide for anticipated
changes
4.Surrendering the existing policies for
selling new one
4
464
9Which one of the following documents
distinguishes between Guaranteed and non-guaranteed benefits?
1. KYC documents
2. Benefit illustration documents
3. Fact-finding sheet
4. Fincial details 2
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 client's
commitment to the need &
continue with process
Should take some more
time to conclude the
sale
Should close the discussion then & there
2
466
9which of the following is the fil stage
of fact finding with the client?
Discuss with proposer about
future life prospects and
changesCompletion of Proposal form
Recommending Solutions
Coming to mutual
agreement with objective for
Solutions
4
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 POLICY has more term
one policy is a single premium
One of the policy has
higher Premium
3 Agent
Agent can receive maximum up to 35% Commission in first year . Maximum
commission in ten years horizon cannot be more than 40.%.
Pg :201
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 product
Y has brought a single premium
product X is married Y is Single 2 Agent
different products have different commission . Maximum Commission
payable in First Year cannot exceed 35% Pg :202
469
10 Customer asks the agent to disclose the commission . The agent should
disclose on demand Not disclose Should call up
the InsurerShould avoid
the topic 1 Agent role & responsibility
Sec 42 of Insurance act 1938 defines licensing procedure for agents .Agents should disclose their commission to the customer on demand and yet not give
any rebate
Pg :202
470
10
The 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
letter
From the fact details
From signed copy of benefit
illustration
From ticked column of
proposal form3
Agents Upfront disclosure Methods
As per IRDA regulations , agents are supposed to disclose their COMMISSION when asked by the customer . However
Rebates are prohibited
Pg:102
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
471
10 Churning is bad , based on which aspect
Agents earn Lower
Commission on churning
Policyholder gets more benefits
Policyholders suffer due to
surrender charges and
benefits
Insurance companies get good branding
3Churning &
Product switching
Repeatedly encouraging clients to switch policies / Investments from one another is
called churning Pg :204
47210
what over riding criteria an insurance agent consider while proposing a
solutionrisk suitability Flexibility Cost 2
Duties & Responsibilities
of agents
Agent is an intermediary between Insurer and the Client
Pg :200
47310 Sales Target is reduced . Churning
will Increase Decrease Will not affect Partially 2 Persist encyRepeatedly encouraging customers to
switch policies or investment from one to another is called Churning
Pg 204 : D4
47410 Higher persistency to the insurer
ensures what ? More productivity Higher attrition Higher Profits Higher S.A 3 Persist ency Higher Persistency helps Insurer to get
Higher revenue thereby increasing profitability
Pg :206
47510
Persitency =has increased from 82 % in previous year to 86 % this year .
That meansmore lapsation more attrition less lapsation No profits 3 Persist ency
Higher Persistency helps Insurer to get Higher revenue thereby increasing
profitability Pg :206
47610 What key impact will the agent have
in low persistency
Increase more business
Increase in the agents earning
Will improve reputation
Will have impact in his commission
4
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 2012 2013 2014 1
478
10When 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 the fact finding process
After quantifying the
need
After the product is
recommended to the client
1
479 10What is the disadvantage to the
insurer in case the persistency falls Lower profits Higher profits 1
480
10
A low persistency ratio for the insurance company means that:
The customers are satisfied with
the products
The company is acquiring more business and
new customers
A large numbers of
policies have lapsed /
surrendered resulting in loss
of profit
The company will not declare
bonus3
481
10
If 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 act for the customer
benefit
Ask the proposer’s
doctor to send details to the
insurer
Respect this confidentiality
by not disclosing it to
anyone
1
482
10 If the client does not wish to proceed with the recommendations right at the
moment the agent should
Insist on taking the product right
away
Should ask for the reason for not going with
the recommendation
Should ask for a future date
from the client
Should review once again 3
483
10
During a fact finding process the need alyzed 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.
Do the fact finding exercise
again
Insist with the client to take a
term plan
Give a child plan and revisit the client on a
later date
Give the lead to another
agent3
484
10
After doing the need alysis 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 client
Suggest an altertive plan
Pass on to the superior
Pass on to the other agent 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
485
10Which of the following act from agent will be specifically useful in case of
annual premium policies compared to monthly mode policies
Explaining charge structure
Issuing reminders
Offering credit facility to client
Offering premium collection
facility to client
2
486
10As per the IRDA circular an insurance
agent
need not disclose the amount of
commission
need to disclose the amount of commission
needs to disclose the amount of
commission on demand
Should not disclose 3
487
10
If the agent recommends the client to termite an endowment plan and take a whole life in order to earn higher
commission its termed as
Switching Doing a fincial planning Churning Fact Finding 3
488
10
A low persistency ratio for the insurance company means that:
The customers are satisfied with
the products
The company is acquiring more business and
new customers
A large numbers of
policies have lapsed /
surrendered resulting in loss
of profit
The company will not declare
bonus1
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 products
a rebate on the price amount like
other sales
a breach of IRDA’s code of
conduct
a breach of a provision of the
Insurance Act,1938
4
49010
Persistency can be improved by:
Providing service to the clients 1
49110 Remuneration to Agents includes 1. First Year
Commission2. Renewal
Commission.3. Both of the
above.
4. Salary and Reimbursemen
t.3
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 2. Churning 3. Redirecting. 4. Shifting. 2
493
10 An insurance agent is intermediary between….
1. Client and Insurance Company
2. Insurance Company and
IRDA
3. Client and IRDA
4. Insurance and Re-
insurance company.
1
494 10 What is the factor which has influence on persistency? 1. Role of Agent 2. Product
Design.3. Policy Servicing
4. All of the above. 4
495 10 For an insurance advisor churning is.............practice 1. good 2. bad 3. compulsory 4. appreciable 2
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 of Premium
payment to the customer
3. Dispatching Discharge
voucher to the customer
4. Continuous servicing of the
policy 3
497
10
Mr. David an agent had helped Mr. Srinivasan to take an endowment
policy on Feb 200As srinivasan was finding it difficult to pay the premium,
Mr. David had advised him to surrender this policy and to apply for a
lower premium policy. This is called as ?
1. Churning of the policy
2. Surrendering the policy
3. Switching the policy
4. Claiming the policy 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
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 the company will be high due to offers to the
customer
3. Agent will be termited
4. Agent will be qualified for the
contest 3
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 level
2. Raghav will be termited
3. Raghav License will be
cancelled
4. Customer will complain to
Ombudsman3
500
10 The agents duties and responsibilities ends
1. When the clients policy is
issued.
2. When the client’s needs
have been established.
3. When the nominee has
changed.
4. When the maturity/claim
is settle4.4
501
10
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 for reference who
might be interested in
fincial planning.
3. Should never approach the client ever
again.
4. Should do nothing. 2
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 client is holding a
product having good value for
money.
3. When the policy has been
mis-sold and do not match
his needs.
4. When the client is
enjoying good fincial status.
3
503 10 What key benefit high persistency ratios have on insurance adviser?
1. High renewal income.
2. Less renewal income.
3. Fewer client bases.
4. Unsatisfied clients. 1
504
10
Under which one of the following acts the maximum remuneration that can
be given to insurance agents described?
1. Income Tax Act
2. Indian Contract Act
3. Insurance Act 1938
4. IRDA Act 1999 3
50510 Which one of the following is not a
benefit of persistency?
1. Helps the client in
achieving goals
2. Reduction in costs
3. Increased client
satisfaction
4. Decreased revenues 4
506
10Satish 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 should outline the reasons for
recommendation for a particular
policy
3. Satish should check
the acceptance or rejection of
the recommendatio
n.
4. Should advised him to surrender all the polices
which are not buy from satish.
4
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 fincial needs and
plans are necessary with
changes
3. Agent has the option to
recommending highest
commission at any time.
4. Introduction of a new insurance
product or a change in a
client’s Circumstance
3
508
10
As per agents code of conduct,Agent Recommends protection Plan,but the client insist on investment plan for the fincial planning,what an agent should
do!Recommend
both the plans
Propose an investment plan and discuss with
him regard to discomfort of
term planRefuse to act
with client
Report to the senior and seek
his Guidance
2
509 10Insurers observe high persistency
ratio,thenpolicy reserve
increasesReserve
decreasesRemains constant
Surplus decreases 1
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 proceed
Proceed with agreed need
and document the rejection
Get second opinion
3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
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 to the product booklet
Ask his Supervisor and
clarify
Ask the client to put the query
in writing3
51210 While on sales of an Insurance plan
Mr…. Had to show his license
Due to the category of customer
the customer demanded
Due to the profile of the
customer2
513
11What is the maximum Time in which
The insurer should settle a claim when all documents are submitted
3 days 15 days 30 days 10 days 3 Claims
According to IRDA Regulation 2002 , a claim under a life insurance policy will
have to be paid or be disputed with giving relevant information within 30 days from
the date of receipt of all necessary documents & clarifications
Pg :219
514
11 A missing person is considered to be dead after 5years 8years 12 years 7years 4 Claims
Sec 107 & 108 of indian evidence act 1872 deals with presumption of death ,
Waiting period of 7 years is seen in case of person missing
Pg :221
515
11
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% 9% 7.20% 8% 3 Claims
As per IRDA Regulations , when there is a delay by the insurer for settling of a
claim , then they need to pay 2% more than the fincial years saving account rate
of interest
Pg :219
516
11A claim was submitted & in how many days company should ask for additiol
documents if required15 days 10days 20 days 30 days 1 Claims
IRDA Guidelines on claim settlement instruct the insurer to complete any
additiol documents /information collection not in a piece meal basis within 15 days
from the time of receiving the claim intimation
Pg :219
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 murder Death was due to Accident Body not found 1 Valid Claims
Suicide clause exclude claim settlements if it happens within One year of the
policy commencement Pg :217
518
11
According to IRDA guidelines, how long does an insurance company
have to complete its investigation of a claim
30 days 90 days 120 days 180 days 4
51911 Indisputability clause can be enforced
by the insurance company during the
First five years of policy
First Two years of policy Claim Inception of the
policy 2
520
11
Incase of presumption of death
Not necessary to pay premium
until court decree
Necessary to pay premium until court decree
Claim not admissible 2
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 20days 30 days 60 days 3
522
11
Under the IRDA guidelines for Claim settlement, any queries or additiol
documents can asked from the claimant within
5 days from the receipt
10 days from the receipt
15 days from the receipt
20 days from the receipt 3
523
11A claim was paid in a policy and it
was advertised in the newspaper also. This indicates that the policy was.
It was assigned. It was paid up. It was lost. It was surrendered. 3
52411
An indemnity bond was signed in a policy when the claim was paid. This
indicates that the policy was.It was lost. It was paid up. It was lapsed. It was
surrendered. 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
52511 Which of the following falls under
voidable contract?
Misrepresentation
Lack of insurable interest Fraud None of the
above 1
526
11As 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 Disclosure of material fact
Premiums paid or not 2
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 Fraudulent Early General 3
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 survival claim and the
death claim will be paid to the
Nominee
Survival claim will be paid to the Legal heirs and the death
claim to the Nominee
Bothe claims will be paid to the Legal heirs
3
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
claim
Full sum assured will be paid as death claim
Paid up value, if any, will be paid as death
claim
Full sum assured less deduction of
unpaid premium will be
paid
4
53011 Which of the following falls under
voidable contract?
1. Misrepresentatio
n
2. Lack of insurable interest 3. Fraud 4. None of the
above 1
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 opted for Settlement
option
3. He has he has redirected
his past premium.
4. Policy was lapsed on the
time of maturity2
532
11 Incase of presumption of death1. Not necessary to pay premium
until court decree
2. Necessary to pay premium
until court decree
3. Claim not admissible
4. Depends on case to case 2
533
11 What is meant by a claim under insurance policy?
1. A demand to fulfill the
policyholder’s obligations.
2. A demand to fulfill the insurer’s
obligations.
3. Any demand made by the
policyholder on the insurer.
4. All of the above. 2
534 11 Who will take the initiation to settle the maturity claim process? 1. Client 2. IRDA 3. Advisor 4. Insurance
company 4
535
11 Which is the right statement regarding claim enquiry?
1. The insurance company makes enquire only on death claims.
2. The insurance company makes
enquire on maturity claims
only.
3. Enquiry will be done on
both Maturity and Death
Claims.
4. Enquiry will be done if
death happens before one year
from policy inception date.
1
536
11
Mr. Chintamani has taken a policy from ABC Company on 2nd March
2010, but unfortutely he died on 18th August 201 His death claim is
considered as..........
1. Normal death claim
2. Early death claim
3. Abnormal death claim
4. Untural death claim 2
537 11 Detailed Investigation will be triggered in case of......
1. Maturity claims
2. All death claims
3. Early death claims
4. Rider benefit claims. 3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
53811
In insurance, if a person is not heard for .......years his is presumed to be
dead.1. 5 years 2. 6 years 3. 7 years 4. 8 years 3
539
11 In the process of settling maturity claims....
1. the company will wait until the claimant comes
to office to demand the
claim
2. the process is initiated by the
company well in advance of the maturity date
3. it is the responsibility of the claimant to approach the
company
4. If the claimant does
not come within a month the
entire maturity amount will be
forfeited.
2
540
11
Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He also has an ADB rider worth Rs. 4 lakhs.
Unfortutely Baskar died in a car accident. How much will be the death
claim settlement?
1. Total 7 lakhs will be paid as
death had taken place
2. Total 4 lakhs will be paid as
death had happened due to
car accident
3. Total 11 lakhs will be
paid
4. Total 7 lakhs will be paid without any deduction.
3
541
11 Insurer will not pay the claim unless
1. The policyholder
makes a demand.
2. The nominee makes a demand.
3. The event insured against
happens.
4. The insurer completes the
enquiry.3
542
11
Aman has taken a term plan for 20 years. In the 3rd year he suffered
fincial crisis due to which he was uble to pay premium within grace period
and died after 1 month. The nominee files a claim and is rejected because
1. The policy was not in force.
2. This condition is excluded in
the policy.
3. The claim is fraudulent.
4. The claim is an early claim. 1
543
11 When a policy is lost, insurance company take utmost care while settling maturity claims because
1. The claim may not be genuine.
2. The policy may be pledged.
3. The facts were
misrepresented.
4. There is no nomition. 2
544
11What key event is most likely to make
an insurance contract not a valid contract?
1. The circumstances are legitimate.
2. Representation of facts by the
policyholders is true.
3. The life assured is
major.
4. There is no insurable interest
attached to the policy.
4
545
11
On foreclosure, if Death claim arises before the payment of the surrender
value, the payment would be payable to:
1. Nominee 2. Legal heir of life Assured 3. Debotrs 4. forfeited the
Premium 2
546
11
Gaurav is working in MNC at the age of 32 bought an Endowment Plan. He had nomited his 1 year old daughter
Saanvi, but not able to get the Sigture of her appointee due to uvailability of his spouse .after 5 year. He died in
road accident, now claim money would be payable to:
1. Nominee only 2. Legal heir of the life assured
3. Appointee Only
4. will be Payable to
Saanvi (Nominee) at
the age of 18th
2 Discuss
547
11
Which one of the following report is not considered in case of Pankaj
Bought a plan in 2009 & died in road accident in 2011 :
1. Policy first information
report.
2. Advisor confidential
report
3. Post Mortem Report.
4.Coroners Report 2
548
11
Insurer has deducted Rs 3000 from the death claim of Ram. What could be the reason for deduction when all
the due premiums were paid Paid up option Lien Commutation Loan Facility
4
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
549
11
Two policy Matures at the same time for an insurance company,what are
the other requirment for maturity with respect to policy.A is absolute assignment and B is conditiol
assignment.pending requirment in relation with B
A loan and interest is
outstanding
A loan amount and oustanding
premium is pending
A outstanding premium is
pendingA sign on
discharge form
3
55011
Maturity benefit is equal to Sum assured plus reversiory bonus minus
? Persistency
bonus
Outstanding premium +
interestOutstandin premiums
2
55111
In a non life policy, the person who is authorised to process the mediclaim
is known as UnderwriterThird party
administrator Actuary2
55211
Maturity benefit is equal to Sum assured plus reversiory bonus minus
? Claim within 1st
anniversaryClaim within 1st calendar year
Claim befor the valuation date
Claim after the valuation date
553
12
An advisor while explaining the policy and to sell he accepts to give a part of
his Agents commission, what is th limits
10% 20%He cannot offer
any commission
He can offer up to 50% 3 Code of
conduct Sec 41 (1) of insurance act 1938 prohibits
all agents to give rebates Pg :231
554 12 Consumer Forum at district level will hear complaints up to 20L 40L 1Cr 10L 1 Grievance cells District Court upto 20 L Pg :238
555 12 How much is the rebate allowed by IRDA to client Nil 5% 10% 35% 1 Insurance act
1938Sec40(1) of Insurance act 1938 prohibits
agents from giving rebates Pg 231
556 12 the controller of insurance in india is IRDA RBI SEBI Insurance ombusdmen 1 IRDA 1999 IRDA 1999 , was passed in parliament
establishing it as a corporate Body Pg :233
557
12A insurer advertises through daily
news paper . What type of marketing is
cross selling direct selling Solicitation of Policy Brand building 3
IRDA Regulations on Advertisement
and Disclosures
IRDA regulations on advertisements include all printed and published
materials from Insurer as well as Agents Pg 237
558 12 Investment by NRI(Non Resident Indian) will be No risk Low risk Medium risk High risk 4 KYC Pg :235
55912
MWP- If the policy is endorsed under MWP - then the beneficiaries are wife
and ?parents ex wife children mother 3 MWPA
Beneficiaries under MWPA can be Wife , Children , Wife & Children , Adopted
Child Pg :236
560
12
If the license of an agent has been disqualified by a desigted authority in 2010 then the person can apply for a
license in which year
2013 2015 2017 2020 2
561
12 When can an insurance company give more than 35% first year
commission?
When the insurance
company is in the first 10 years
of operation
If the agent has worked with the
company for more than 5
years
If the agent has worked with the
company for more than 10
years
If the agent is doing more
than 3 policies in a month.
1
562
12
An agent recommends a term plan in keeping with the ethical standards
since it was suitable to client’s needs. In such a case what is the percentage of commission which he can rebate so
as to beat the competition
Maximum 10% Half of the commission
Cannot rebate at all 2% 3
563 12_____ controls monetary system in
India RBI IRDA SEBI Constitution 1
564 12 In MWP Act Policy, claim is paid to Nominee Assignee Trustee Policy holder 3
56512 Which is the 2nd stage in Money
Laundering?1. Layering 2. Placement 3. Integration 4.
Amalgamation. 1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
566
12
According to IRDA regulations the maximum percentage of first year
commission to be paid to an insurance advisor is.............
1. 30 % 2. 35% 3. 40% 4. 45% 2
56712
In the case of agent's death, the commission payable will be paid
to.........1. his legal heirs 2. to his nominee 3. will stop
automatically
4. Paid in lump sum to the survivors.
1
568
12 Issuance of a license to a person has been stipulated in................Act
1. Section 43 of the Insurance
Act 1939
2. Section 42 of the Insurance
Act 1938
3. Section 12 of the Insurance
Act 1922
4. Section 34 of the Insurance
Act 19322
56912 Which official body decides to
increase the interest rates? 1. Central bank
of India2. Reserve bank
of India3. Reserve
bank of country4. Central bank
of country 2
570
12 Which one of the section deals with the licensing of an agent?
1. Section 42 of the insurance act
1938
2. Section 42 of the insurance act
1936
3. License section of
Insurance act 1938
4. License section of insurance
agent act 1938
1
571
12 Which regulations take care of the settlement of claims ?
1. Protection of Policy holder
Interests regulation 2002
2. IRDA claim protection
regulation 2002
3. C.IRDA policy
settlement regulation 2004
4. D. Protection of claim
settlement regulation 2002
1
572
12 Which of the following team represents the members of GBIC ?
1. Representatives
from all insurance companies
2. Representatives
from all government
bodies
3. Representative
s from IRDA
4. Representative
s from Insurance institute of
India
1
573
12Rahul is a licensed insurance agent. As agent he must carry out his role in
accordance with
1. Company’s code of conduct.
2. IRDA Acts code of conduct.
3. IRDA Regulations
code of conduct.
4. Insurance Acts code of
conduct.3
574 12 Under Married Women’s Property Act, 1874 a policyholder is
1. The Life Assured.
2. The beneficiaries. 3. The trustee. 4. The
administrator. 3
57512
Who has the authority in insurance company to issue/cancel the agents
license
1. Insurance Company.
2. Desigted Person.
3. Branch Operations
Team.4. Actuary. 2
57612
Married Woman’s Property Act 1874 provides that a life insurance Policy
that has been taken out by:
1. Married Woman 2. Married Man 3. Married Son 4. Married
Daughter 2
577
12
Premium Income earned by an agent holding a composite license is
600000. What is the max contribution of one organisation 60000 1.5 lac 1.2 lac 3 lac
578
12 License criteria,criml offence in the past.given IRDA license.Why?
he was less than 21 at that time
offence had a punishment of less that 2000
atleast 5 yrs hav passed since the sentence exception 3
579
13Mr.Sunil is doing premium calculation
for his company, as per which authority is his profession related to
Council of Actuaries
Insurance council of India
Insurance institiute of
IndiaIRDA 1 Actuaries
IAI (Institute of actuaries in India ). Actuary is an expert who applies
statistical & mathematical methods to asses risk and calculate premium tables
Pg :249
580
13 basic qualifications of agent sound mind & graduate
sound mind & good income
level
Age and income level
His contacts in the market to
solicit Insurance
1 Agent Licensing
For License , a person should be Major , Of sound mind , graduate , no crimil records ,attended training , passed III
exam
Pg :251
58113 Which Institution was Constituted by
Insurance Act 1938Insurance
Institute of IndiaLife Insurance
Council
Insurance Broker
Association
General Insurance Council
2Insurance Regulation
Bodies
Life Insurance council was constituted under Sec 64 of Insurance ACT 1938. Its
the face of Life Insurance Industry Pg :248
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
582
13 What is the role of tiol Insurance Academy? To regulate To advise
Government
To undertake training
activities
To Advertise globally on
Indian Insurance
3 Key regulatory Body
I , Pune , was set up by Govt in 1980 with support from LI Council , GI council & 4
psu GI. Main Objective is to design , implement & operate on Insurance
Training
Pg :249
58313
According to IRDA act 1999, central governments involve in insurance
industry over Policy matters complex
technical issuesPromotiol activities
Licensing of Insurance companies
3Power of
Central Govt over IRDA
Power of Govt to supersede IRDA is uble to discharge its Function or duties
Pg :246
58413
Who is a regulator, supervisor and monetary authority of the fincial
system in India IRDA SEBI RBI SBI 3
585 13The insurance act of 1938 created
which of these. IRDA Tariff Advisory Committee
tiol Insurance Academy LIC 2
586
13De- tarrification is a process by which
pricing of Insurance
Rises DecreasesReaches at a level as per
industry trends
Insurance can price their
product on their self past
experiences.
4
587
13 What is the key function of NIA
Provide suggestion for
Premium calculation
To be an active link between
Global market & Indian Life Insurance Industry
Design, implement and
operate an insurance training
Regulate the investment of funds by Life
Insurance company
3
588 13Basing on which criteria the
qualification of Agent is determined? Address of the
agent Domicile status 2
589
13 If IRDA is uble to discharge its functions or duties, Central
Government
Has the power to supersede the
IRDA by issuing notification.
Has the power to supersede the
IRDA by issuing a bill in
parliament
Has the power to supersede the IRDA by issuing draft
Can make changes in IRDA law
1
590
13
Under the prevailing FDI laws for insurance, domestic private
companies are allowed to form joint ventures with foreign partners. What percent of stake can a foreign partner
hold?
20% 26% 49% 51% 2
59113 Rahul is appointed as director of life
insurance company, he cannot be an
Insurance Advisor Nodal officer Chief actuary Underwriter 1
592
13 An agent is not required to obtain the prior approval of the insurer before
placing an advertisement when:
It contains only statements that
mention the agents me, logo
& phone number.
He can design the
advertisement without the concern of
insurer.
Were all his information published to enhance his
business.
Describe the benefits which do not match
the policy provisions
1
59313
The Institute of insurance and risk magement along with insurance
education does what moreRegulation Redressal Research Repository 3
594 13 Pricing element is done by IRDA Insurance Company
Life Insurance Council CII 2
595
13
What does MDRT Stand for?
Million Dollar Round Table
Major Double Rupees Tag
Major Dollar Round Tag
Mean Disposition Residence
Time
1
596 13As per AML regulation, it allows cash
premium not over than Rs.20000 Rs.25000 Rs.5000 Rs.50000 4
597
13Which Act or Regulation provides that the Renewal commission is payable to the legal heirs of the Insurance
agent in case of his death?
IRDA Act,1999IRDA
Regulations, 2000
Insurance Act,1938
Indian Contract Act,1872 3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
598 13 Agent offering rebate may be fined Rs. 300 Rs500 Rs 1000 Any of them 2
599
13If an Insurance agent is found guilty of breach of trust, he will be disqualified
to act as an insurance agent. The disqualification stands valid
for lifefor 10 years from
the date of disqualification
for 7 year from the date of judgment
for 5 years since
completion of the sentence
imposed
4
600
13 Central govt has authority of Direction to IRDA on
Policy matter
To present statement of IRDA act in Parliament
May issue notification All of them. 4
601
13
It is the bounden duty of the Insurers to protect the interests of their policyholders from proposal
acceptance to claim payment because of the
Behavioral requirements of
E-Governce
Market competition
Requirements of the Life Insurance Council
Regulations of IRDA 4
602
13 In the context of IRDA’s code of conduct, the term Ethical behavior
can be best described as
a behavior that is based upon the positive
judgment of an individual
a behavior that is based upon the
legal judgment of an individual
a behavior that is based upon
the ritual judgment of an
individual
a behavior that is based upon
the moral judgment of an
individual
4
603 13 IIRM is in areas of education and Research 1
604
13
Who controls and regulate the rates, advantages, terms and conditions that
may be offered by insurers in the respect of general insurance
business.
1. Insurance Regulatory and Development
Authority.
2. Reserve Bank of India.
3. Tariff Advisory
Committee.
4. Insurance Institute of
India.3
605 13 The Insurance Institute of India (III) was formed in..... 1. 1956 2. 1999 3. 1955 4. 1947 3
606
13
Which council among the following focus on creating a positive image of the insurance industry and would also
like to enhance the Consumer’s confidence on the same ?
1. Life insurance council
2. Consumer insurance council
3. tiol Insurance
council
4. General insurance
council 1
607
13
Mr.Varun taken up his agency in July 5th 200 His lost his IRDA license
while travelling. His agency has also expired. What is the solution for
Mr.Varun ?
1. Need to complete 25
hours of practical training and
paying Rs.50 for the issuance of
duplicate license
2. Need to complete 50
hours of practical training and
paying Rs.100 for the issuance
of duplicate license
3. Need to complete 25
hours of practical
training and paying Rs.100
for the issuance of duplicate license
4. Need to complete 50
hours of IRDA training and
paying Rs.50 for the
issuance of duplicate license
1
60813
Which organization was formed with purpose to promote insurance
education and training in India?
1. Institute of Actuaries of
Indi1.
2. tiol Insurance Academy.
3. Chartered Insurance Institute.
4. Insurance Institute of
India.4 Discuss
609
13 The face of the life Insurance industry in India is ………..?
1. Life Insurance Council
2. Life Insurance Corporation
3. Insurance Regulatory
Development Authority
4.Insurance Institute of
India1
610
13 For Insurance industry which
association to take steps to Develop Education and research in insurance?
1. Life Insurance Council
2. Life Insurance Corporation
3. Insurance institute of
India
4. Insurance Institute of
India1 Discuss
611
13Which is the body who provides grant to Insurance Regulatory Develompent
Authoruty to carry out activites.RBI LIC Central
Government SEBI 3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
612
14Complaint council bodies other than IRDA grievance readdress forum &
COPAOmbudsman Insurance
Institute of IndiaInsurance
Association FERA 1
Governing Body of
Insurance Council
Integrated Grievance magement system (IGMS) also makes the complaints to be
regsitered through E mail – [email protected] or Toll free
number 155255
Pg :271
613
14 What are the ways by which a policy holder can make complaints email Toll free No. Newpaper Email or Toll
free Number 4
Governing Body of
Insurance Council
Integrated Grievance magement system (IGMS) also makes the complaints to be
regsitered through E mail – [email protected] or Toll free
number 155255
Pg :268
61414
what are the ways in which IRDA can be contacted . One is thru toll free
number and other is email Insurance
ombudsmenvisiting regiol
officeThrough Agents 1
Grievance Redress Cell of
IRDA Toll Free Number :155255 & Email Pg:268
615
14what is the maximum level of
complaint that can be considered and taken action by ombudsmen
20 lac 25 lac 30 lac 50 lac 1 Ombudsman
Ombudsman role is to resolve complaints related to claims , disputes with regard to
premium / policy, non issue policy documents , all in a cost effective
manner
Pg :265
616
14What is the period of award passed to
the customer decided by ombudsman?
2months 3 months 5 months 6 months 2 Ombudsman
Ombudsman role is to resolve complaints related to claims , disputes with regard to
premium / policy, non issue policy documents , all in a cost effective
manner
Pg:268
617
14
Raju is a certified license holder under what circumstances he needs to hold his certified license with him
that is issued by irda
under all circumstances
when he sells term insurance
when he represents himself as
another insurer
when he sells pension policies
1 Ethics & Code of Conduct
Under IRDA regulations , an agent should carry is license all the time and on
demand , should show it to the customers Pg :284
618
14
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
he has to inform the customer
that the co has broken
relationship with the customer
he plans to change the plan
He has to explain the reasons for
rejection to the customer
He takes up with the higher
authorities3 Ethics & Code
of Conduct
The role & responsibility of the agent is important to have a good relation with the
customers Pg :279
619 14Where one can approach in case of
dispute IRDA Consumer Forum 2
620 14The Authority of COPA is limited to
what amount at the district level. 10,00,000. 20,00,000. 50,00,000 1,00,00,000 2
621
14As per Regulation for protection of
Policyholder’s interest 2002 (IRDA), Which insurer will have a grievance
redressal System
Some Specific Insurer
Those Insurer who did not
created Insurance
Ombudsman System
All insurer It is optiol 3
62214
Which regulatory body has created a call center for logging a complaints of
insurance Customers
Life Insurance Council IRDA Insurance
Association
Insurance Institute of
India2
62314
Within how many years a complaint can be made through consumer
protection act.One year Two years Three years Five years 2
624
14
Insurance companies are required to honor the awards passed by the
Insurance Ombudsman within how may days
10 days 15 days 20 days 25 days 2
62514 As per IRDA regulations IGMS should
be mandatory set up by
Only by few selected insurers Only by non life Some life and
non life By all insurers. 4
626
14
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
………………………..
Consumer Forum COPA Sebi Life Insurance
Council 1
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627
14
What is the stipulated time frame within which an insurer is supposed to
respond after receiving any communication from its
policyholders?
24 hours 1 day 10 days 30 days 3
62814 The functions of the Insurance
Ombudsman include:
Conciliation and making awards Counseling Repudiation of
claim
Evaluating claim
settlement1
629
14If a case is already before the
consumer forum, then the ombudsman should
Give a recommendation
Give a joint decision with the consumer forum
Dismiss the case Give an award. 3
630
14
Generally insurance companies do not hold the premium in case of a
fraud or misrepresentation. However, due to which of the following
circumstances the insurer can retain the premium of the policyholder
Fraudulent claim Indisputability clause
Redressal procedure
Pending decision from Ombudsman
2
631
14
A policy holder is not satisfied with the services of the insurer and complains
to ombudsman. In how many days from receipt of the complaint the
ombudsman should pass the recommendation.
6 weeks 1 month 2 months 6 months 2
632 14The guidelines for annual assumed
growth rate are given byLife Insurance
Council IRDA Actuaries Underwriter 2
633
14AML Program of every insurer to
include _______________, apart from Procedure, Training and audit.
Inspection by IRDA
Audit by Fince Ministry
Appointment of Principal
Compliance Officer
Inspection by Auditor General 4
634
14
Ravi was expecting a claim amount of Rs. 12, 00,000 from insurer. But it
was rejected. He feels that it is repudiated on wrong reasons. Which consumer forum can he approach?
tiol Commission District Level State Level Mandal Level 2
635
14
For redress of grievances of the policyholders, a number of Authorities
have been formed. Which of the Following authorities has been
empowered to hear the complaints and adjudicate?
Insurance Ombudsman
Consumer Grievance
Redress Forum
Consumer Affairs
departmentIRDA 2 Discuss
636 14 How many ombudsmen offices located in India? 1. 10 2. 12 3. 14 4. 15 2
637
14 What the me of department that is
established by IRDA to deal with customer complaints?
1. Customer Complaint
Department (CCD)
2. Customer Grievance
Department (CGD)
3. Consumer Affairs
Department (CAD)
4. Consumer Protection
Department (CPD)
3
63814
The insurance ombudsman has been appointed to protect the interest
of.......1. policyholders 2. shareholders 3. insurers 4. General
insurers. 1
63914
The charges were not fully disclosed to the customers" is a common
complaint against.....1. IRDA 2. Agents 3. Shareholders 4. Underwriters 2
640
14
If any consumer is dissatisfied with the customer care cell of any
insurance company to whom they can escalate their grievances.
1. Nodal officer 2. Grievance call center
3. Compliance cell
4. Compliance officer 1 Discuss
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
641
14
Which is the Regulation that insists that all the insurance companies
should provide the information about the insurance ombudsman of that
region while sending the policy documents.
1. Policyholder grievance Regulation
2. Policyholder’s Protection regulation
3. Ombudsman Regulation
4. Compliance Regulatory 2
642
14
A client demands the information on the current status of a policy
indicating accrued bonus. The insurer should provide communication within
1. 10 Days. 2. 15 days. 3. 20 Days. 4. 30 Days. 1
643
14To ensure that the customers
complaints are handled effectively, IRDA has established
1. Integrated Grievance Magement System.
2. Interl Grievance
Redressal Cell of the Insurer.
3. Grievance Redressal
Officer.
4. Consumer Affairs
Department.4 Discuss
64414
Insured can contact to seek the resolution of grievances they have against insurer to IRDA through:
n
645
14
Parvesh bought a policy an endowment plan but after one year
insurer. Found he had Aorta Surgery .now which will apply by insurer:
1. Indisputability Clause (Section
45) apply
2.Principal of Indemnity apply 3.Lien Clause 4.Utmost good
faith apply 1 Discuss
646
14
How Many offices of Ombudsmen the Government body has set up to Resolving insured customer’s
grievances.
1.15 2.12 3.14 4.16 2
647
14
If there is no agreement or settlement and the recommendation is also not acceptable to the complaint, in this case the Ombudsman will grant an
award
If it is acceptable to the complaint
if it is acceptable to the insurer
if the complaint decides to
proceed legally
if the insurer decides to
proceed legally1
648
15
If the agent recommends the client to termite an endowment plan and take a whole life in order to earn higher
commission its termed as
Switching Doing a fincial planning Churning 3
649 15Unethical behavior can affect the
reputationInsurance Agent
& company Insurance Agent Insurance company Insured person 1
650
15Underselling life insurance comes under unethical practices because
It might fell short of actual needed and family would
suffer
It will bring a smaller premium
Tax exemption will be lesser 1
651
15 The main reason why an agents act of underselling insurance is treated as a
unethical behavior is
Benefit could fall short of the
fincial liabilities
Excessive Premium
SA ceased too early
Tax concession opportunity
could be lost forever
1
652
15 Ethics can be defined as…
1. Those values we commonly
hold to be “good” and “right”.
2. Behavior that is based upon
the moral judgments of an
individual
3. A study of what makes one’s own
actions right or wrong.
4. All of the above. 4
653
15 Which is not unethical behavior in below statements?
1. Over selling of Insurance policies.
2. Under selling of Insurance
policies.
3. Explaining all details of the
policy to customer.
4. Churning. 3
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]
654
15
Mr. Sharma is a newly recruited insurance advisor. To meet his month
target he explains only the good points of newly launched plan to his
customer. Here Mr. Sharma's behavior is............
1. ethical 2. unethical 3. professiol 4. Perfect. 2
65515 The code of conduct has been
prescribed in India by........... 1. IRDA 2. Insurance Council
3. Insurance Institute of
India
4. Government of India. 1
656
15
Shankar, an adviser, sold a term insurance policy and unit-linked
insurance policy (ULIP) to Amar, the client, who is unmarried and has no
dependent. Consequently, Shankar’s action can be termed as
1. Underselling of insurance
policies.2. Churning.
3. Overselling of insurance
policies.
4. Ethical practice by an
adviser.3
657
15Pankaj being a license insurance
advisor has to follow code of Conduct provided by:
1. Insurance Regulatory
Development Authority
2. Life Insurance Company
3. Reserve Bank of India 4. SEBI. 1
658 15 In case of term plan the premium for CI rider shall not exceed 25% 50% 75% 100% 4
659 15Reduced target of agent will have
what impact on churning more likely less likelyless
transparentmore
transparetn 2
660
9
An agent does 6 lacs of new business premium /Income in a year. He is a
composite agent. What is the maximum Premium/Income he can
earn from 1 insurer?
1
Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]