English IC33 Chapter 6 MockTest

Question 1

What does NAV stands for in an ULIP?

A Net Average Value

B Net Assured Value

C Net Asset Value

D Net Assumed Value

Question 2

tate which of the statement is correct

A Life insurer does not provide guarantee for unit

values in case of ULIP

B Life insurer does provide guarantee for unit values

in case of ULLIP

C Both the statements are correct.

D Both the statements are incorrect.

Question 3

As per the IRDA Circular of November 2010, All

Universal Life products shall be know as

______________

A Unit Variable Plans

B Variable Insurance Plans

C Unit Linked Insurance Plan

D Term Assurance

Question 4

Which among the following is a non-traditional life

insurance product?

A Term assurance

B Universal life insurance

C Endowment insurance

D Whole life insurance

Question 5

What does inter-temporal allocation of resources

refer to?

A Postponing allocation of resources until the time

is right

B Allocation of resources over time

C Temporary allocation of resources

D Diversification of resource allocation

Question 6

Where was the Universal Life Policy introduced

first?

A USA

B Great Britain

C Germany

D France

Question 7

State which of the statement is correct.

A In Ulip the policy holder can surrender the plan

post 5 yrs c[f

B In Ulip the policy holder cannot surrender the

plan post 5 yrs of policy.

C Iln Ulip the policy holder cannot surrender the

plan post 3 yrs of policy

D Policyholder cannot surrender the plan

Question 8

Mr Rahul wants to purchase a Ulip. However he is

skeptical of losing his money in equity and hence

wants a fund which would give him moderate

returns along with security. Which fund will you

suggest to him?

A Balanced Fund

B Debt Fund

C Equity fund

D None of the above

Question 9

Which of the below is correct with regards to

universal life insurance? Statement I: It allows policy

owner to vary payments Statement II: Policy owner

can earn market based rate of return on cash value

A I is true

B II is true

C I and II are true

D I and II are false

Question 10

Mrs Ananya wants to purchase a ULIP and has

shown interest in investing in a fund where major

portion should be invested in equity related

instruments. Which fund would you suggest for

her?

A Balanced Fund

B Debt Fund

C Money Market Fund

D Equity Fund

Question 11

Inter-temporal allocations means

A Allocation on time

B Allocation across time

C Allocation before time

D Allocation after time

Question 12

Which among the following is a limitation of

traditional life insurance products?

A Yields on these policies is high

B Clear and visible method of arriving at surrender

value

C Well defined Gash and savings value component

D Rate of return is not easy to ascertain

Question 13

All of the following are characteristics of variable

life insurance EXCEPT:

A Flexible premium payments

B Cash value is not guaranteed

C Policy owner selects where savings reserve is

invested

D Minimum Death benefit is guaranteed

Question 14

All of the following is true regarding ULIP's EXCEPT:

A Unit holder can choose between different kind of

funds

B Life insurer provides guarantee for unit values

C Units may be purchased by payment of a single

premium or via regular premium payments.

D ULIP policy structure is transparent with regards

to the insurance expenses component

Question 15

Which are the two kinds of non-traditional life

insurance products ?

A Variable insurance plans and Unit Linked

Insurance Plans

B Term Assurance Plan and Variable insurance plans

C Unit Linked Plans and Pure Endowment Plan

D Variable insurance plan and Pure endowment

plan

Question 16

Which of the below statement is incorrect?

A Variable life insurance is a temporary life

insurance policy

B Variable life insurance is a permanent life

insurance policy

C The policy has a cash value account

D The policy provides a minimum death benefit

guarantee

Question 17

Which of the below statement is true regarding

ULIP's?

A Value of the units is determined by a formula

fixed in advance

B Investment risk is borne by the insurer

C ULIP's are opaque with regards to their term,

expenses and savings components

D ULIP's are bundled products

Question 18

Who among the following is most likely to buy

variable life insurance?

A People seeking fixed return

B People who are risk averse and do not dabble in

equity

C Knowledgeable people comfortable with equity

D Young people in general

Question 19

Which is the fund where major portion of the

money is invested in Government Bonds, Corporate

Bonds, Fixed Deposits?

A Debt Fund

B Balanced Fund

C Money Market Fund

D Equity Fund

Question 20

What does unbundling of life insurance products

refers to?

A Correlation of life insurance products with bonds

B Correlation of life insurance products with

equities

C Amalgamation of protection and savings element

D Separation of the protection and savings element

Question 21

Mr Arunesh is paying Rs 'I lac annually in a plan. The

returns of his plan would depend upon the

movements of the capital market. Which product

has he invested in?

A Term Assurance Plan

B Pure Endowment Plan

C Unit Linked Plan

D Annuity Plan

Question 22

The Cash value component in traditional products is

A Pre-planned

B Well defined

C Not well defined

D Not pm-planned

Question 23

When was Variable Life Insurance first introduced in

United States?

A 1970

B 1965

C 1977

D 1980

Question 24

As per IRDA norms, an insurance company can

provide which of the below nontraditional savings

life insurance products are permitted in India?

Choice I: Unit Linked Insurance Plans Choice II:

Variable Insurance Plans

A I only

B II only

C I and IL both

D Neither I nor II

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English IC33 Chapter 7 MockTest

Question 1

Which of the below best describes an ordinary

annuity?

A Equal cash flows at equal time intervals forever

B Equal cash flows at equal time intervals for a

specific time period

C Lumpy cash flows at equal time intervals forever

D Lumpy cash flows at equal time intervals for a

specific time period

Question 2

Plans that are designed and marketed by Life

Insurance and financial institutions towards

providing an old age income is known as

A Public Pension

B Occupational Pension

C Personal Pension

D lmmdiate Pension

Question 3

_______________ is a term used to refer pensions

that have some level of Government administration

A Insurance Pension Fund

B Public Pension Fund

C Private Pension Fund

D Market Pension Fund

Question 4

Which of the below risk cannot be addressed

through pensions?

A Life longevity

B Inflation

C Investment risk

D Early death

Question 5

Mr Rohit has investsa lump sum amount in a

pension plan and immediately starts to receive

annuity on a monthly basis, which kind of Annuity

has he taken?

A Deferred Annuity

B Corn mutation

C Payments

D Immediate Annuity

Question 6

___________ is an annuity with an infinite life and

making continuous annual payments.

A APR

B Amortised loan

C Perpetuity

D Principal

Question 7

Types of pension schemeWhat are the various types

of annuity schemes

A Public Pension

B Occupational Pension

C Personal Pensions

D All of the above

Question 8

Which among the below statements is true?

Statement I: Every pension is an annuity Statement

II: Every annuity is a pension

A I and li are true

B I and II are false

C I is true and fl is false

D I is false and II is true

Question 9

With relation to annuities, explain what does

"Liquidation period" refer to?

A Period between the purchase of annuity and

commencement of payments

B Period during which insurer makes annuity

payments

C Time taken to build up the corpus

D Insolvency period

Question 10

In an ordinary annuity, payments are made or

received _____________ of each period.

A At the beginning

B At the end

C On maturity

D 6 months before expiry

Question 11

Public Pension Schemes are publically managed and

are typically funded on a _______ basis

A Pay as you go

B Pay as you do

C Pay as you Want

D All of the above

Question 12

What is the basic contingency associated with

pensions?

A Mortality

B Morbidity

C Post-retirement income security

D Disability

Question 13

Factor which can reduce post retirement living

standards in real terms is known as

A Investment Risk

B Longevity Risk

C Inflation

D Replacement Risk

Question 14

From the choices mentioned below, select the one

that cannot be categorised as an annuity.

A Rs. 2000 received today, Rs. 2000 received next

year and Rs. 2000 received in 2 years

B Electricity Bill

C Car payments

D Mortgage payments

Question 15

Amount of annuity payable is inversely related to

which of the following: 1. Principal sum of money 2.

Investment period 3. Rate of return 4. Duration of

annuity payments

A 1 only

B 2 only

C 3 only

D 4 only

Question 16

Who bears the investment risk in a fixed benefit

annuity?

A Insurer

B Insured

C State

D Risk pool

Question 17

Mr. Rohit has already opted for Deferred Annuity

however he wants to know how much amount can

he withdraw as lumpsum before the start of annuity

phase

A Accumulated Value

B Fund Value

C 1/3 rd of Fund Value

D He can withdraw the entire amount if need be

Question 18

Mr Amit is nearing retirement, he has a lumpsum

ammount to invest, he requires regular cash flow to

help cover basic living expenses, Which type of

annuity plan Amit should purchase

A Immediate Annuity

B Deferred Annuity

C Money back annuity

D Assured Annuity

Question 19

Amount of annuity payable depends on which of

the following: 1. Principal sum of money 2.

Investment period 3. Rate of return 4. Duration of

annuity p ayments

A 1 and 2

B 1,2 and 3

C 1,3 and 4

D 1,2,3 and 4

Question 20

Mr Raju want a pension plan in which after he dies

the annuity is paid to his spouse for her life time.

Which type of Annuity Mr. Raju should purchase

A Joint Life last surviver with return of purchase of

price

B lmmdiate Annuity

C Joint Life Annuity

D Deferred annuity

Question 21

In which annuity plan the money is invested for a

period of time until the annuitant is ready to

receive annuities

A Immediate Annuity

B Deferred Annuity

C Open market

D Commutation

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English IC33 Chapter 8 MockTest

Question 1

Who provides public pensions?

A State

B Employers

C Insurers

D NGO's

Question 2

Health Insurance policies can be obtained by

___________

A Group

B Individual

C Family

D All of the above

Question 3

Who cannot be covered under a family floater

policy?

A Children

B Spouse

C Parents-in-law

D Maternal uncle

Question 4

RDA stands for ____________

A International Regulatory & Development

Authority

B Indian Regulatory & Development Authority

C Insurance Regulatory & Development Authority

D Income Regulatory & Development Authority

Question 5

Primary care can be described as ___________

A Care provided to patient in an acute setting

B Care provided in hospitals

C First point of contact for people seeking

healthcare

D Care provided by Doctors

Question 6

Which of the below group would not be eligible for

a group health insurance policy?

A Employees of a company

B Credit card holders of an organisation

C Professional association members

D Group of unrelated individuals formed for the

purpose of availing group health insurance

Question 7

What benefits are given by the government to

promote health insurance?

A Cash Benefits

B Premium Discontinuance

C No claims Bonus

D Tax Benefits

Question 8

What is the waiting period for hospitalisation in an

regular health insurances policy?

A 12 hrs

B a months

C 30 days

D 24 hrs

Question 9

According to the regulation passed by RDA in Feb

2013, all health insurance policies are required to

give information related to ______________

A Grace period

B Freelook period

C Features & Benefits

D Processes related to underevrting

Question 10

Health insurance is designed to handle which of the

following risks?

A Mortality

B Morbidity

C Infinity

D Serendipity

Question 11

Identify the form of insurance that is depicted in the

following scenario. Scenario: Patient pays the health

provider and is subsequently reimbursed by the

health insurance company.

A Service Benefit

B Direct contracting

C Indemnity

D Casualty

Question 12

_________________ is an insured who undergoes

treatment after getting admitted in a hospital.

A Inpatient

B Outpatient

C Day patient

D House patient

Question 13

The term TPA refers to _____________ . (Answer

with regards to health insurance)

A The Primary Associate

B To Provide Assistance

C Third Party Administrator

D Third Party Assistance

Question 14

_______________ is the feature in which an health

insurance policy holder can transfer his policy with

gained credit and time bound exclusion from one

insurer to another.

A Network Provider

B Portablity

C TPA

D Mediclaim

Question 15

Any person who has completed 60 or more years of

age as on the date of commencement or renewal in

health insurance policy is called ______________

A Family floater

B Group Health Insurance

C Senior Gitizen

D Mediclaim

Question 16

As per RDA regulations issued in February 2013,

what is the grace period allowed beyond the expiry

date of the policy, for renewal?

A 15 days

B 30 days

C 45 days

D 60 days

Question 17

Moral hazard by health insurance companies can

result in ______________

A Community rating

B Adverse selection

C Abuse of health insurance

D Risk pooling

Question 18

Some common terms in health insurance are

A Inpatient

B Outpatient

C Day care centre

D All the above

Question 19

What is the procedure in which and indvidual can

get the complicated surgical procedures without

getting admitted?

A In patient

B Out patient

C Day care

D Normal Admission

Question 20

A policy holder need to have a _____________ to

avail the benefit of cashless facility under Health

insurance policy.

A Employees ID card

B Identification card

C Policy document

D Smart Gard

Question 21

Mr Ajay is interested in buying a health insurance

plan. However he wants to include his wife as well

as his daughter in the same plan. Which feature

would be applicable to him?

A Individual

B Family Floater

C Senior Citizen

D Group Health Insurance Plan

Question 22

In health insurance policy premium will be based on

A Occupation

B Income

C Age

D Height

Question 23

_____________ refers to a hospital/health care

provider enlisted by an insurer to provide medical

services to an insured on payment by a cashless

facility.

A Day care centre

B Network provider

C Third Party Administrator

D Domiciliary

Question 24

Mr. Rahul has recently undergone a surgery in a

non-network hospital. How can he settle his claim?

A Cashless

B TPA

C Reimbursement

D Direct Payment

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English IC33 Chapter 9 MockTest

Question 1

Mr Suresh has taken a home loan, unfortunately he

dies after 2 years of purchasing the home. He leaves

behind a pending home loan, what planning could

have been dne by him inorder to secure his home?

A Term Insurance

B Life Insurance

C Term & MRI

D MRI

Question 2

Ajay pays insurance premium for his employees.

Which of the below insurance premium will not be

treated deductible as compensation paid to

employee? Choice I: Health insurance with benefits

payable to employee Choice II: Keyman life

insurance with benefits payable to Ajay

A I only

B II only

C Both I and II

D Neither I nor II

Question 3

Which of the below losses are covered under

keyman insurance?

A Property theft

B Losses related to the extended period when a key

person is unable to work

C General liability

D Losses caused due to errors and omission

Question 4

Mahesh ran a business on borrowed capital. After

his sudden demise, all the creditors are doing their

best to go after Mahesh's assets. Which of the

below assets is beyond the reach of the creditors?

A Properly under Mahesh's name

B Mahesh's bank accounts

C Term life insurance policy purchased under

Section 6 of MWP Act

D Mutual funds owned by Mahesh

Question 5

Which of the below option is true with regards to

MWP Act cases? Statement I: Maturity claims

cheques are paid to policyholders Statement II:

Maturity claims cheques are paid to trustees

A I is true

B 11 is true

C Both I and if are true

D Neither I nor II is true

Question 6

Keyman insurance indemnify _______________

incurred but compensates with fixed monetary sum

as specified on the insurance policy

A Actual Losses

B Actual Expenses

C Early Premiums

D Fixed Monetary sum is specify in the policy

Question 7

What is the objective behind Mortgage Redemption

Insurance?

A Facilitate cheaper mortgage rates

B Provide financial protection for home loan

borrowers

C Protect value of the mortgaged property

D Evade eviction in case of default

Question 8

Mahesh has taken as decreasing term life insurance

policy to repay the balance of his mortgage loan if

he dies before its full repayment... what policy has

he opted for

A Term Insurance

B Life Insurance

C Term & M RI

D MRI

Question 9

Pravin is a scientist working with a pharma

company. He holds a key position in the

pharmaceutical company and his untimely loss can

lead to financial strainto the business. To minimise

the loss in his absence which insurance policy must

the company take

A Keyman Insurance policy

B Term Insurance

C Life Insurance policy

D All of the above

Question 10

Which of the below policy can provide protection to

home loan borrowers?

A Life Insurance

B Disability Insurance

C Mortgage Redemption Insurance

D General insurance

Question 11

Miss Julie is an employee of the network 5 and

works as a customers ervice executive there.

Currently she is not associated with any business

risk/ loss, can company take a keyman insurance for

Miss Julie

A Yes the company can take key man insurance

B No they cannot take key man insurance as she is

not the key member

C Some concessions can be mad e

D Her designation does not qualify for the same

Question 12

Mortagae Redemption Insurance facilitate _______

A Higher Mortgage Rate

B Cheaper Mortgage Rate

C Higher interest Rate

D Higher Profits

Question 13

Employer may take out a key person"s insurance

policy on the ___________ and ______________ of

any employee

A Life of a!! employee

B Employer cannot insure a key mars

C Only health of the employees

D Life or Health of Any employees

Question 14

In Keyman insurance in case the key person dies

benefit is paid to ________

A Nominee first

B Legal heir

C Company

D Trustee

Question 15

A policy is effected under the MWP Act. If the

policyholder does not appoint a special trustee to

receive and administer the benefits under the

policy, the sum secured under the policy becomes

payable to the ______________

A Next of kin

B Official Trustee of the State

C Insurer

D Insured

Question 16

MRI is also know as _________

A Loan Protector Policy

B Money recommend insurance

C Loan Profit Policy

D None of the above

Question 17

In the keyman insurance premium is paid by the

__________

A Cornpany

B Employee

C Director

D None of the above

Question 18

Mr Prafull is a director of company his monthly

income is 11,00,000, the company has taken a Key

insurance for Mr. Prafull his sum assured is linked to

_______

A Sum Assured of Policy

B Porifitability of Company

C Income of Prafull

D None of the above

Question 19

Full form of MRI

A Redemption monetary Value

B Mortagage Redemption Insurance

C Money Reducing Value

D Mortgage Reduction Insurance

Question 20

Mortgage redemption insurance (MRI) can be

categorised under ____________

A Increasing term life assurance

B Decreasing term life assurance

C Variable life assurance

D Universal life assurance

Question 21

Which insurance is used for business protection

purpose

A Children education plan

B Keyman Insurance policy

C Re-insuance

D Term insurance

Question 22

XYZ is director of a company, Company has taken

Keyman insurance for him, If something happens to

Mr XYZ then benefit will paid to __________

A his Nominee

B His Legal Heir

C Company

D None of the above

Question 23

The practice of charging interest to borrowers who

pledge their property as collateral but leaving them

in possession of the property is called

________________

A Security

B Mortgage

C Usury

D Hypothecation

Question 24

Mr. Yogesh has taken a life insurance policy under

MWP Act in 2013, he wants to surrender his policy

after 2 yrs . Can he surrender the policy?

A Yes he can surrender the policy

B Surrender option is not available with MWI3A

policy

C He can surrender after 5 years of policy

completion

D He can partially surrender the policy

Question 25

What is the full Form MWP Act?

A Married Wealth Pension Act

B Montage Wealth Property Act

C Money Montage Loan Act

D Married Women Property Act

Question 26

Mr. Dinesh has taken a policy in MWP Act,but he

has not appointed a special trustee to receives

benefits then sum assured will payable to

A Official trustee

B His Legal Heir

C His Wife

D To Company

Question 27

Who are the beneficiaries in MWP Act?

A Wife & children

B Only Policy holder

C Parents

D Friends

Question 28

In which year MWP Act was formed?

A 1999

B 1998

C 1974

D 1940

Question 29

Which of the below option is true with regards to

MWP act cases? Statement I: Death claims are

settled in favour of nominees Statement II: Death

claims are settled in favour of trustees

A I is true

B II is true

C Both I and II are true

D Neither I nor II is true

Question 30

The sum assured under keyman insurance policy is

generally linked to which of the following?

A Keyman income

B Business profitability

C Business history

D Inflation index

Question 31

In the keyman insurance the premium paid by the

company is treated as __________

A Profit of the business

B Business Expense

C Loan of the company

D Sum Assured of the business

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English IC33 Chapter 11 MockTest

Question 1

Prospectus is a __________ Document used by the

company that provides details about the products

A Informal

B Formal legal

C Illegal

D None of the above

Question 2

Mr Yogesh want to buy a life insurance policy, as

per KY C he has to submit Age proof, Income proof

&

A Education certificate

B Property documents

C Photo, Identity Proof & Address Proof

D Tehsil card

Question 3

Which of the below statement is correct with

regards to a policy returned by a policyholder

during the free look period?

A The insurance company will refund 100% of the

premium

B The insurance company will refund 50% of the

premium

C The insurance company will refund the premium

after adjusting for proportionate risk premium for

the period on cover: medical examination expenses

and stamp duty charges

D The insurance company will forfeit the entire

premium

Question 4

Freelook period is also called __________

A Cooling period

B Free period

C Cancellation period

D Free trail period

Question 5

Which of the below is not a valid address proof?

A PAN Card

B Voter ID Card

C Bank passbook

D Driving licence

Question 6

A _______________ is a formal legal document

used by insurance companies that provides details

about the product.

A Proposal form

B Proposal quote

C Information docket

D Prospectus

Question 7

What is the full form of KYC

A Know your customer

B Knowledge your 'Client

C Know your cheque detail

DNone of the above

Question 8

Who is the primary underwriter of the Customers

A Company

B Development Office

C Agent

D Director

Question 9

Mr I has taken policy on 1st Jan 2014 but he is not

satisfied with the policy, he wants to cancel the

policy, so in how many days Mr. I can cancel the

policy

A 60 Days

B 15 Days

C 35 Days

D 40 Days

Question 10

What is the full form of PMLA

A Protection of money Laundering

B Premium of money Laundering

C Prevention of money Laundering

D None of the above

Question 11

Matters of health, habbit, occupation, Income &

family details need to mentioned in __________

Reports

A Agent's Reports

B Medical Reports

C Medical Referee Advice Report

D Company Report

Question 12

Which of the below is an example of standard age

proof?

A Ration card

B Horoscope

C Passport

D Panchayat certificate

Question 13

Money laundering is the process of bringing

____________ money into an economy by hiding its

___________ origin so that it appears to be legally

acquired.

A Illegal, illegal

B Legal, legal

C Illegal, legal

D Legal, illegal

Question 14

Which of the below can be attributed to moral

hazard?

A Increased risky behaviour following the purchase

of insurance

B Increased risky behaviour prior to the purchase of

insurance

C Decreased risky behaviour following the purchase

of insurance

D Engaging in criminal acts post being insured

Question 15

Mr Jay Singh is 50 years of age and wants a life

insurance with high sum assured. Which additional

documents will be required to process the case

A Medical examination Reports

B Pan Card

C Bank Pass Book

D Property Document

Question 16

Money Laundering is an offence which is punishable

by fine upto __________

A 5000000

B 50000

C 500000

D 100000

Question 17

Which of the below features will be checked in a

medical examiner's report?

A Emotional behaviour of the proposer

B Height, weight and blood pressure

C Social status

D Truthfulness

Question 18

The application document used for making the

proposal is commonly known as the __________

A Application form

B Proposal form

C Registration form

D Subscription form

Question 19

Insurance policy is contract between ________

A Company & Partner

B Agency & Company

C Insured & Policy holder

D Insurer & Policy holder

Question 20

An Affidivit by the way of self declaration is the part

of ____________

A Standard Age proof

B Non Standard Age proof

C Address Proof

D None of the above

Question 21

Which of the following is a standard age proof

A School or College Leaving Certificate

B Horoscope

C Ration Card

D Certificate from the P'anchayat

Question 22

From the below given age proof documents,

identify the one which is classified as non-standard

by insurance companies.

A School certificate

B Identity card in case of defence personnel

C Ration card

D Certificate of baptism

Question 23

In case the policyholder is not satisfied with the

policy, he I she can return the policy within the free-

look period i.e. within _____________ of receiving

the policy document

A 6O days

B 45 days

C 30 days

D 15 days

Question 24

During the _______________ period, if the

policyholder has bought a policy and does not want

it, he I she can return it and get a refund.

A Free evaluation

B Free look

C Cancellation

D Free trial

Question 25

The proposal has been defined under IRDA

Regulations on

A 2000

B 2003

C 2002

D None of the above

Question 26

Which of the following documents is an important

part of KYC documents.

A i) Photo ii) Age Proof iii) ID Proof iv) Address Proof

v) Income Proof

B ID Proof & Address Proof

C Address Proof

D None of the above

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