mock test english

7/28/2019 Mock Test English

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All the questions in the quiz along with their answers are shown below. Your answers are bolded.

The correct answers have a green background while the incorrect ones have a red background.

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 manager underwriter

A

Works on statistical data to arrive on mortality , premium table etc

2 The Non Government organizations(NGO) helps the insurance industry immensely in

Promotional activities Drafting new regulations Linking buyers and sellers Linking third party administrators

C

Question was not answered

NGO spread Awareness as well as In rural on deeper Penetration through Micro Insurance3 Investment by foreign direct investors in to Insurance co's is restricted to

12% 25% 40% 26%

D


On recommendation of Mahlotra Committee , Under Joint venture , the foreign player can not have

more than 26% stake

4 Which market does the Micro Insurance Concentrate on ?

People with large families People with Low Income Government Employees people living in Metro cities

B


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

5 What facility do the insurer use to cover Risk beyond their Limits ?

Re Insurance Banca assurance NGO RBI

AQuestion was not answered

Reinsurance company is the Insurer for the Insurance Company

6 What is the max level under which micro insurance can be done

5000 25000 50000 1 lac

C


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Micro Insurance guidelines was issued in 2005 by IRDA . Minimum SA is Rs 5000 & Max is Rs 50,000

7 Who is the customer of a Re insurer

High Networth Individual Insurance Companies Licenced Insurance Agents Non Government Organisation

B


Reinsurance company is the Insurer for the Insurance Company

8 Insurance company transfers the insurance which cannot bear by them to

Bancassurance Reinsurance TPAs Actuaries

B


A re insurance company is the Insurer for Insurance company9 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

C


Agent can receive maximum up to 35% Commission in first year . Maximum commission in ten years

horizon cannot be more than 40.%.

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

B


different products have different commission . Maximum Commission payable in First Year cannot

exceed 35%

11 Customer asks the agent to disclose the commission . The agent should

disclose on demand Not disclose Should call up the Insurer Should avoid the topic

A


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

12 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


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From the fact details From signed copy of benefit illustration From ticked column of proposal form

C


As per IRDA regulations , agents are supposed to disclose their COMMISSION when asked by the

customer . However Rebates are prohibited

13 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

C


Repeatedly encouraging clients to switch policies / Investments from one another is called churning

14 What over riding criteria an insurance agent consider while proposing a solution

risk suitability Flexibility Cost

B


Agent is an intermediary between Insurer and the Client

15 Sales Target is reduced . Churning will

Increase Decrease Will not affect Partially

B


Repeatedly encouraging customers to switch policies or investment from one to another is called

Churning

16 Higher persistency to the insurer ensures what ?

More productivity Higher attrition Higher Profits Higher S.A

C


Higher Persistency helps Insurer to get Higher revenue thereby increasing profitability

17 Persitency =has increased from 82 % in previous year to 86 % this year . That means

more lapsation

more attrition less lapsation No profits

C


Higher Persistency helps Insurer to get Higher revenue thereby increasing profitability

18 What is the maximum Time in which The insurer should settle a claim when all

documents are submitted


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3 days 15 days 30 days 10 days

C


According to IRDA Regulation 2002 , a claim under a life insurance policy will have to be paid or bedisputed with giving relevant information within 30 days from the date of receipt of all necessary

documents & clarifications

19 A missing person is considered to be dead after

5years 8years 12 years 7years

D


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

20 The delay in settling claim by any insurance co, as per IRDA norms has to pay....% if thepresent bank interest rate is 5.2%

6% 9% 7% 8%

C


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 financial years saving account rate of interest

21 A claim was submitted & in how many days company should ask for additional

documents if required

15 days 10days 20 days 30 days

A


IRDA Guidelines on claim settlement instruct the insurer to complete any additional documents

/information collection not in a piece meal basis within 15 days from the time of receiving the claim

intimation

22 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

A


Suicide clause exclude claim settlements if it happens within One year of the policy commencement

23 An advisor while explaining the policy and to sell he accepts to give a part of his Agents

commission, what is th limits

10%


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20% He cannot offer any commission He can offer up to 50%

C


Sec 41 (1) of insurance act 1938 prohibits all agents to give rebates

24 Consumer Forum at district level will hear complaints up to

20L 40L 1Cr 10L

A


District Court upto 20 L

25 How much is the rebate allowed by IRDA to client

Nil 5% 10% 35%

A


Sec40(1) of Insurance act 1938 prohibits agents from giving rebates

26 The controller of insurance in india is

IRDA RBI SEBI Insurance ombudsmen

A


IRDA 1999 , was passed in parliament establishing it as a corporate Body

27 A insurer advertises through daily news paper . What type of marketing is

cross selling direct selling Solicitation of Policy Brand building

C


IRDA regulations on advertisements include all printed and published materials from Insurer as well

as Agents

28 Investment by NRI(Non Resident Indian) will be

No risk

Low risk Medium risk High risk

D


29 MWP- If the policy is endorsed under MWP - then the beneficiaries are wife and ?

parents ex wife children


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motherC


Beneficiaries under MWPA can be Wife , Children , Wife & Children , Adopted Child

30 Mr.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 India IRDA

A


IAI (Institute of actuaries in India ). Actuary is an expert who applies statistical & mathematical

methods to asses risk and calculate premium tables

31 Basic qualifications of agent

sound mind & graduate sound mind & good income level Age and income level His contacts in the market to solicit Insurance

A


For License , a person should be Major , Of sound mind , graduate , no criminal records ,attended

training , passed III exam

32 Which Institution was Constituted by Insurance Act 1938

Insurance Institute of India Life Insurance Council Insurance Broker Association General Insurance Council

B


Life Insurance council was constituted under Sec 64 of Insurance ACT 1938. Its the face of Life

Insurance Industry

33 What is the role of National Insurance Academy?

To regulate To advise Government To undertake training activities To Advertise globally on Indian Insurance

C


NAI , 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

34 According to IRDA act 1999, central governments involve in insurance industry over

Policy matters complex technical issues Promotional activities Licensing of Insurance companies

C


Power of Govt to supersede IRDA is unable to discharge its Function or duties

35 Complaint council bodies other than IRDA grievance readdress forum & COPA


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Ombudsman Insurance Institute of India Insurance Association FERA

A


Integrated Grievance management system (IGMS) also makes the complaints to be regsiteredthrough E mail [email protected] or Toll free number 155255

36 What are the ways by which a policy holder can make complaints

email Toll free No. Newpaper Email or Toll free Number

D


Integrated Grievance management system (IGMS) also makes the complaints to be regsitered

through E mail [email protected] or Toll free number 155255

37 What are the ways in which IRDA can be contacted . One is thru toll free number and

other is email Insurance ombudsmen visiting regional office Through Agents

A


Toll Free Number :155255 & Email

38 A policy holder submits cancellation of his term insurance policy , the insurer accepts the

form and fails to give the benefit and the policy holder writes to IRDA post which the

settlement should be within


A


Complaints related to cancellation of Policy & premium paid in excess for additional cover , Response

TAT has to be within 10 Days from the date of complaint

39 What is the maximum level of complaint that can be considered and taken action by

ombudsmen

20 lac 25 lac 30 lac

50 lacA


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

40 What is the period of award passed to the customer decided by ombudsman?

2months 3 months 5 months


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6 monthsB


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

41 An Award is passed by Ombudsman .In how many days it should be honored by

Insurance Co


D


The award is binding on the insurer if acceptable by the Claimant , Ombudsman will have to give the

award within 3 months from the receipt of the complain

42 Karthik written to his insurer about non settlement of a maturity calim,as per

regulations,the insurer has to reply to this within how many working days

3 5 7 10

D


Under Protection of policyholders Regulation of IRDA , the insurer has to respond back within 10

days for any written communication by thepolicyholder

43 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 policiesA


Under IRDA regulations , an agent should carry is license all the time and on demand , should show

it to the customers

44 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 authorities

C

Question was not answeredThe role & responsibility of the agent is important to have a good relation with the customers

45 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 occupational hazard

A



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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

46 The type of risk that can be insured against is

Speculative Risk Pure Risk Pure & Speculative risk Non Financial Risk

B


The types of risk that could be insured against are , financial risk , pure Risk & Particular risk

47 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 financial loss incase of death of Ramesh

D


Creditor has Insurable Interest on the Life of Debtor to the extend of the MONEY lent to the debtor

48 What is the min age to enter into the contract of insurance

16 18 20 21

B


Person entering contract should be competent enough . A person is competent when he is a Major (

above 18 years ) , sound mind ,not disqualified

49 In 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

A


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

50 Types of assignment

Absolute Term assignment Conditional Absolute & Conditional

DQuestion was not answered

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

the term.

Traditional deposits


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Recurring deposits

Cumulative deposits

Term Deposits

C

2. The Premium on all riders put together should not exceed

10% of the premium on the base policy




C

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

allows policyholders to customize their insurance cover with additional benefits

rider is like a clause

Operative clause.

Rider is like Preamble.

A

4. 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 additional 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 hospitalizationB

5. A lump sum withdrawal allowed as commutation in pension plans is

1/3rd of the accumulation fund

1/4th of the accumulation fund

1/2nd of the accumulation fund

Full withdrawal is allowed

A

6. 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?

paid up to 75 Yrs

annuity will be continued for next 5 Years

till he die

not remembered

C


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7. In 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.

A

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

Tax benefit

Savings

Investment

Protection

D9. If person consumes alcohol- what is the type of hazard?

Moral

Physical

Occupational

Professional

B

10. Group Insurance can be taken in following relationship

employee- employer

husband-wife

family members

society members

A

11. Where one can approach in case of dispute?

IRDA

Consumer Forum

B

12. Life insurance is the most important for which age group

Young

Pre- retirement

Retirement

children


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A

13. Where annually increasing flexible premiums operate under a life insurance policy,

what rate of increase will generally apply?

2. 5%

3. 0%

5. 0%

7. 5%

C

14. 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 lacs

3 lacs

2 lacs

1. 50 lacs

B

15. 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




A

16. Family floater health Insurance plan covers

All members of a Family

Husband and Wife only

Parents only

Children Only

A

17. 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

D


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18. How 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

C

19. Who is a regulator, supervisor and monetary authority of the financial system in India?

IRDA

SEBI

RBI

SBI

C20. 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

B

21. To ensure that the premiums are paid out of a legitimate source of funds cash is

accepted

Up to 50000

Up to 99990

Up to 100000

Without any limit

A

22. If there is no claim in a year than what will be the benefit to the customer as NO CLAIM

BONUS

Discount in next year premium

Increase in Sum Assured next year

Loans facility

No benefit

A

23. An individual is said to be competent to enter into a contract if they are

18 year old


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21 year old

23 year old

25 year old

A

24. Maximum time for investigation in disputed claim?

1 month

2 months

3 months

6 months

D

25. The Ombudsmans powers are restricted to insurance contracts of value not exceeding?

50 lakhs

30 lakhs

25 lakhs

20 lakhs

D

26. In which section of Policy document, Information about the location of the insurance

Ombudsman had written?

Operative clause

Attestation

Information statement

Endorsements

C

27. In Cumulative bank deposit the interest that in normally compounded on what basis.

Monthly

Quarterly

Half Yearly

Annually

B

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

15% of base policy premium





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C

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

quarterly premium what is the amount that needs to be paid.

8000

8320

9456

9240

B

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

20,000

50,000

Up to the sum assured taken in the plan

UnlimitedD

31. Ombudsman passes an award within which time

1 month

2 months

3 months

6 months

C

32. If the license of an agent has been disqualified by a designated authority in 2010 then

the person can apply for a license in which year.

2013

2015

2017

2020

B

33. 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

B

34. If the agent recommends the client to terminate an endowment plan and take a whole

life in order to earn higher commission its termed as

Switching


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Doing a financial planning

Churning

C

35. Mr. Denny is married and has 2 children and his parents are alive. He has taken a

family floater plan. Under the plan who all will be covered.

Denny

Denny and his wife

Denny, his wife and children

Denny, his wife, his children and his parents

D

36. Amit has taken a G-Sec and has parted with it mid way as he required the money with

the intention of not getting the interest. What will he get?

Discounted Value

Principle amount

Discounted Value with persistency bonus

Principle with persistency bonus

A

37. If bonus is given under a plan the additional premium added is known as

Loading

Investment

Frequency

A38. Nomination can be in favor of how many people?

One person

Two persons

Three persons

It can be any number

D

39. Suresh is suffering from Asthma and the policy in been done on joint life basis and the

need for nomination under the plan is less as

Joint life policy

Has physical ailment

A

40. What key impact will the agent have in low persistency

Increase more business


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Increase in the agents earning

Will improve reputation

Will have impact in his commission.

D

41. Within how many days will the underwriter needs to inform the policyholder regardingthe status of the policy.

10 days

15 days

30 days

45 days

B

42. Certificate from the village panchayat

Will be considered as standard age proof

Will be considered as non standard age proof

Will not be accepted

B

43. What is the maximum sum assured under a micro insurance

10000

25000

50000

100000C

44. 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

A

45. If Naresh wishes to take the tax benefit of the full premium paid which is 60000, what

amount of sum assured should he avail in a ULIP plan.

2 lacs

3 lacs

5 lacs

6 lacs


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B

46. 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.

A

47. The insurance act of 1938 created which of these.

IRDA

Tariff Advisory Committee

National Insurance Academy

LICB

48. Ashu is an illiterate person and his proposal form was filled by Nishu, then what is the

additional requirement to be taken along with the documents.

The policy needs to be advertised in the newspaper.

Nishu has to sign an indemnity bond.

Thumb impression of Ashu has to be taken.

Ashu needs to be medically examined.

C

49. Harshs policy matured, however he was paid only 25% of the sum insured in spite of

all his premiums been paid on time. This indicates that his policy is a

Term plan.

Endowment plan.

Money back plan.

Wholelife plan.

C

50. The 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.

B


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. In case of a term plan the maximum premium of the accidental rider can be.

100% of basic premium.




C

2. With reference to the principle of indemnity a life insurance policy is a.

Insurance contract.

Indemnity contract.

Value contract.

Major life contract.

C

3. In the personal statement, Ramesh declares that he consumes alcohol twice every week.This is a

Moral hazard.

Moral peril.

Physical hazard.

Physical peril.

C

4. Micro insurance is made specifically for people from.

High income.

Middle class.

Low income.

Affluent class.

C

5. The reduction in the benefit illustration shows what.

Charges.

Mortality.

Interest.

Inflation.

A

6. If Insurable interest does not exists at the time of inception of the life insurance policy

then, life insurance contract is

Voidable


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Invalid

Valid

Null & voidable

B

7. If a contract is signed by a 15 years old boy, this contract will be

Null and void

Invalid

Voidable

Valid

B

8. If a life insurance policy is issued with a lien, it will be mention in

Proviso

Schedule

Terms & conditions

Endorsement

B

9. Available Loan amount under a life Insurance policy is generally based on

Total paid premium

Sum Assured

Surrender value

Paid up value

C

10. De- tarrification is a process by which pricing of Insurance

Rises

Decreases

Reaches at a level as per industry trends

Insurance can price their product on their self past experiences.

D

11. As per Regulation for protection of Policyholders 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 optional


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C

12. Which body has created a call center for logging a complaint

Life Insurance Council

IRDA

Insurance Association

Insurance Institute of India

B

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

C14. 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 he has redirected his past premium.

Policy was lapsed on the time of maturity

B

15. Gautam wants to purchase a Kisan Vikas Patra. What is the most suitable place to

purchase it

Bank

Insurance Company

Post Office

Share Market

C

16. Anand 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

B


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17. During Fact finding, rating is mentioned 3. This Indicates

Risk apatite of client

His future aspiration

Commitment to need

Willingness to pay

A

18. Raunak wants to purchase a cheapest plan which can provide financial security to his

dependent. Which plan should be offered

Term Plan

Term Plan with return of premium

Pure Endowment plan

Unit Linked Plan

A19. For tax Saving Someone wants to fixed deposit in bank. What duration is required for it?

3 years

5 years

7 years

2 years

B

20. Incase of presumption of death

Not necessary to pay premium until court decree

Necessary to pay premium until court decree

Claim not admissible

B

21. If insured gets the two advance payment in the 5yrs and in the maturity he gets rest of

sum assured. What type of policy it is

Money back policy

Convertible plan

Term plan

Endowment policy

A

22. Which is correct in relation to Insurance Broker?

Insurance broker is represents insurance buyer and remunerated by the insurance company

Insurance broker is represents insurance buyer and remunerated by the Client

A


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23. Shailesh and ankit want to retire in the age of 65yrs. But shailesh pays more monthly

payment than ankit. Why?

Shailesh is very older than ankit.

Shaileshs income is more than Ankits income

A24. What will be lien amount in 3rd year as compared to the 4th year of lien.

It is higher

Decrease

Slightly higher

Slightly lower

B

25. Within how many years a complaint can be made through consumer protection act.

One year

Two years

Three years

Five years

B

26. In which plan weekly premium payments are accepted.

Health Insurance

Group Insurance

Micro InsuranceC

27. One person wants to take term plan for 20 lakh and wants to take ADB rider, he is not

sure of how much sum assured he needs to take for ADB rider. What is your suggestion?

Needs to take experts suggestion

Equal to base cover

B

28. Basing on which criteria the qualification of Agent is determined?

Address of the agent

Domicile status

B

29. Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers

illness before maturity? (wrong)

A. Nil

10%


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20%

30%

A

30. 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

A

31. If we hold 100 units in gold ETF, It means that how much grams we have in physical

A. 5 or 10 grams

B. 10 or 15 grams

C. 15 or 25 grams

D. 50 or 100 grams

D

32. In case of life insurance, the insurable interest should exist

A. At the time of taking the policy

B. At the time of claim

C. At the time policy matures

D. At the time of taking the policy & claimA

33. Pooling of insurance applies to

A. all types insurance

B. All types of insurance except Motor insurance

C. Only life insurance

D. Only Non-life insurance

A

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

Ombudsman within how many days

10 days

15 days

20 days

25 days

B


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35. If IRDA is unable 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

A

36. An 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

D37. 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

C

38. Health insurance policy holder takes treatment in a hospital which doesnt have

cashless facility. How the policy holder will get benefited

Need to spend and Get claim from the insurer

Need to add that hospital as TPA

Need not to claim

Need to switch to the another insurer

A

39. During financial planning session if the agent finds out the following needs, which one

should be given the top priority. Needs: Income protection, Childs education, marriage and

emergency funds.

A. Childs education

B. Marriage

C. Emergency funds

D. Income protection

D


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40. National insurance academy has the following main functions

A. Calculating premium

B. Interact with the government

C. Training

D. Mortality assumptions

C

41. Health insurance rider and critical illness rider in classified under

A. Life and non life respectively

B. Both life insurance

C. Both non life insurance

D. Nonlife and life respectively.

A

42. Pure risk is classified under

A. Economic risk

B. Speculative risk

C. Financial risk

D. Insurable risk

D

43. 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?

A. 10 days

B. 20days

C. 30 days

D. 60 days

C

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

A. Only by few selected insurers

B. Only by non life

C. Some life and non life

D. By all insurers.

D

45. 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?

A. Provisio


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B. Endorsements

C. Operative clause

D. Terms and Conditions

D

46. When can an insurance company give more than 35% first year commission?

A. When the insurance company is in the first 10 years of operation

B. If the agent has worked with the company for more than 5 years

C. If the agent has worked with the company for more than 10 years

D. If the agent is doing more than 3 policies in a month.

A

47. When should an agent disclose the commission which he will earn from the product

which he is going to sell

A. When the customer asks him

B. After the fact finding process

C. After quantifying the need

D. After the product is recommended to the client

A

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

annuitant.

A. Insurance coverage

B. Annuity part

C. Guaranteed and non guaranteed part

D. Vesting age

C

49. 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?

A. 213333 & 273333

B. 213333 & 229333

C. 229333 & 273333

D. 229333 & 293333

A

50. The consequences of these risks which will affect specific individuals or local

communities in nature is called as

A. Pure risk

B. Financial risK


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C. Particular risk

D. Physical hazard

C

1. What is the disadvantage to the insurer in case the persistency falls

Lower profits

Higher profitsA

2. 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

A3. If a policy with premium of Rs 5000 has matured, how much will be deducted when the

maturity claim arises

Nil

1%

5%

10%

A

4. When a person is investing in Debt Mutual Fund, what is the primary objective

Good Returns

Regular Income

Safety

Liquidity

D

5. If the employer has insurable interest in the life of an employee, what kind of policy is

this?


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Surety insurance

Keyman Insurance

Partnership Insurance

Debtor Insurance

B

6. In the sales illustration, the reduction of the actual benefit amount is mainly due to

deduction of

Commission

Charges

Non guaranteed benefits

Reversionary Bonus

B

7. The concept of indemnity is based on the key principle that policyholders should beprevented from

Insuring existing losses.

Making false insurance claims.

Paying excessively for insurance cover.

Profiting from insurance.

D

8. The client of reinsurer are

Insurance companies

Banks

Asset Management Companies

A

9. 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

C

10. For assessing the risk of a group health insurance policy, which of the following

information is the most critical

Group lifestyle

Employees


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Age of the group

Medical history of group

C

11. According to Insurance Brokers Association of India, what is the most appropriate

relationship between Insurer and Broker?

Insurance broker represent the client and the insurer remunerate the broker

The client represent the broker and the insurer remunerate the broker

Insurer represent both client and broker remuneration

Broker only service the client

A

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

A. The customers are satisfied with the products

B. The company is acquiring more business and new customers

C. A large numbers of policies have lapsed / surrendered resulting in loss of profit

D. The company will not declare bonus

C

13. For annuity plans, before receiving regular/periodic annuity payments, the individual

can make a lump sum withdrawal. This is known as commutation. Up to what proportion of

the accumulated fund can be withdrawn?

A. The entire fund can be withdrawn

B. Only half of the fund can be withdrawn

C. Only one third of the fund can be withdrawn

D. Only one fourth of the fund can be withdrawn

C

14. What is the stipulated time frame within which an insurer is supposed to respond after

receiving any communication from its policyholders?

A. 24 hours

B. 1 day

C. 10 days

D. 30 days

C

15. For an insurance agent, a low persistency ratio means :

A. Loss of renewal commission

B. High client satisfaction


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C. Higher reputation

D. More earning of First Year Commission

A

16. The proposer can withdraw from the contract, if they disagree with the terms and

conditions of the Policy, within a free look-in period of

A. 15 days from the date of receipt of the policy document

B. 20 days from the date of receipt of the policy document

C. 25 days from the date of receipt of the policy document

D. 30 days from the date of receipt of the policy document

A

17. In the case of life insurance, insurable interest should exist

A. At the inception of the policy

B. At the time of a claim

C. At the time of every renewal premium payment

D. All the above occasion

A

18. In which of the following plan remaining part of the Sum Assured is paid on maturity?

Endowment Plan

Convertible Plan

Money Back plan

Term Plan

C

19. 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

B

20. Payment/Investments in Kishan Vikash Patra under post office schemes is done

Regularly with no fixed term

Lump Sum with no fixed term

Lump Sum for fixed period of time

Regularly for fixed period of time


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C

21. 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

C

22. Under the IRDA guidelines for Claim settlement, any queries or additional documents

can asked from the claimant within

5 days from the receipt




C

23. Law of Large number helps the insures to

Calculate the premium

Increase the profitability

Ascertain the death ratio

Declare the bonus

C

24. A person with a criminal background due to Financial fraud would come under which

hazard

Physical

Moral

Occupation

B

25. Whose signature is required on attestation of the policy?

Agent

Policy holder

Authorized officials of insurer

Proposer

C

26. What is the ceiling of tax exemption under 80 c.

1 lakh


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1. 5 lakhs

2 lakhs

3 lakhs

A

27. If customer has applied for a policy with 1 Lac SA then what is maximum Premium onwhich he can save Taxes

Maximum 20000

Maximum 100000

Maximum 120000

Maximum 150000

A

28. If Ombudsman makes a recommendation and is accepted by Complainant then it would

be

Binding on the insurer

Binding on Court Of Law

Binding on IRDA

Binding of Insured

A

29. 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 whichcould 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

C

30. In India almost each and every sector is having regulatory agencies for following up the

companies and institution operating in the sector. Likely, regulatory agency for insurance

sector is known as -

SEBI

ICAR

IRDA

RBI

B

31. Govt. of India has full control on IRDA. Ultimately Govt. of India which of the following

matters/issues of IRDA on an ongoing basis


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Formation of IRDA

Staffing pattern of IRDA

Policy matters

It is an autonomous body. Govt of India has no control over IRDA

C

32. Mr. Rahul is having a life insurance policy. After 8 months he was died. But when the

claim is returned by the Insurance Company as the claim cannot be settled because of a

specific clause mentioned in the policy document. Which is the most likely clause?

Special clause

Suicide Clause

Lien clause

Paid up clause

A33. Mr. Ramesh has taken a life police as recommended by an insurance agent. Now the

role of Agents Principal lies

The insured

Insurance Company only

Ramesh only, none else

IRDA, since entire insurance is under control of IRDA

B

34. From Insurance Companys point of view, most important aspect in a Term Insurance

Policy lies with

Good ethics

Fact findings

The proposal

Underwriting process

C

35. Mr. Purusottam has joined as Director of Insurance Company. Now as per the IRDA act

he is not allowed to play the role of which of the following:

Agent

Comparison website

Under writer

None of these

A

36. Mr. Amar has taken a Term Insurance Policy from Insurance Company. A term insurance

is basically what kind of contract?


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Indemnity Contract

Insurance Contract

B

37. There are two most widely used mode of lodging complaints against insurance company

by the insured. One is toll free phone call. Name which of following will be 2nd most widelyused method among the following alternatives.

Insurance ombudsman

Direct visit to IRDA office

Comparison website

Vimal has obtained most of his policies from railway porters

D

38. XYZ Insurance Company has started promoting their insurance products mostly through

television and news paper advertisements. Hence, the said company is operating through

Direct channel

Indirect channel

Using both the channels

Agent channel

C

39. ABC Insurance Company has appointed many agents. They are helping in underwriting

process to the underwriters. However, Mr. Vimal, an agent has done adverse selections.

From insurance companys point of view, which among the following is most likely

considered to be the adverse selection?

Obtaining a policy from a very poor person

Obtaining policy from a rich man

Vimal has obtained most of his policies from railway porters

In certain cases material facts are changed to obtain higher claims

D

40. Vikash a 30 years unmarried young man has invested a pretty good amount in shares.

Recently he is shifting his investments Gold ETF. Now state which of the following is the

most likely motive of Mr. Vikash by doing so?

He is interested in savings only

He prefers both regular savings as well as capital appreciation

He prefers capital growth only

Recently he is going to marry that is why he is more interest in Gold to keep the gold of his would

be wife in Gold ETF

B


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41. It has been observed that, most of the policies issued by M/S XYZ Insurance Company

have been forfeited by the insured during the free look period. What may be the most likely

reason so far ethics is concerned?

The company has no ethics

The company has only internal ethics but not external

The company has external ethics but not internal

The company has both the ethics

A

42. An insurance company has issued a policy document to one of its policy holder. In the

policy document they have mentioned the payment of premium by the insured, payment of

SA by the insurance company on the happening of insured event etc. which part of the

policy document is most likely to contain such matter?

Preamble

Schedule

Terms and conditions

Operative clause

D

43. The lung cancer is aggravated by smoking. In terms of insurance, these are respectively

known as

Hazard & peril

Peril & hazard

Effect & cause

Either peril or hazard

A

44. Sohan and Amit are 30 years old unmarried persons. Sohan is having dependent mother

where as Amit has no dependent. Which type of policy most likely to be chosen by Sohan?

Health insurance for mother

Life insurance policy

Liability insurance policy

Retirement policy

B

45. Ashok is a young married man with beautiful young wife and two kids. He should selectwhich types of insurance projects?

Contingency funding

Health insurance

Housing Loan insurance

Retirement benefit insurance


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B

46. Underwriting is an important aspect of insurance business. In which of the following

situations underwriter must be most cautious?

Low age, low sum assured

Low age, high sum assured

High age, high sum assured

High age, low sum assured

C

47. A Govt. employee after retirement has chosen to take 10% of his pension benefit in

cash. Which of the following options shall be applicable to the person so far income tax

payment is concern?

It is absolutely tax free

He has to pay 10% TDS on the amount taken in cash

He has to pay 30% TDS on the amount taken in cash

He is not allowed to take in cash.

A

48. Amit has decided to invest Rs. 1,00,000/- every year in ULIP where as Ramesh has

decided to invest the same amount in PF in order to get IT exemption in 80C. In this view

which of the following is correct?

Both the investments have same impact.

In ULIP IT exemption u/s 80C is not available.

PF is also not eligible for IT exemption u/s Sec. 80C.

Both are taxable as per Income tax Act 1961

A

49. Ram and Shyam, both have taken life policy from same company through same agent

for same period. During the process of disclosure, the agent has revealed that he obtains

more commission from Ram. What may be the probable reason for the same?

Shyam has taken more number of policy that is why he has been given concession.

Rams policy is having rider

Ram is older than Shyam

Ram is having wife and children, where as Shyam is unmarried.

A50. Ramesh is a brother of Rakesh, in which circumstances Rakesh can propose a policy on

Rameshs name

If Ramesh owes him money

IF Ramesh gives a declaration


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If Ramesh proves that he need the money

If ramesh want to invest by his brothers name.

A

Show Results

1. 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 activitieswhich 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

B

2. In the context of financial planning, how is the difference between real needs and

perceived needs best described?

Real needs are financial needs and perceived needs are non-financial needs.

Real needs are actual needs and perceived needs are based on a clients 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.

B

3. 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

Young married with Kids

D

4. The Institute of insurance and risk management along with insurance education does

what more


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Regulation

Redressal

Research

Repository

C

5. 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

B

6. 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

C

7. A 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.

C

8. 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 paid up.

It was surrendered.

A

9. 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?


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Marriage.

Savings.

Education.

Protection.

A

10. 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.

C

11. If RBI increases the interest rates then what will be the effect on share prices.

Shares will be more attractive.

Shares will be less attractive.

Fixed deposits will be more attractive.

Fixed deposits will be less attractive.

B

12. 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 MNC

B

13. 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

A

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

Easy access


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Fixed income

Tax Benefits

Tax Benefits

D

15. Mr. shailsh has an endowment policy with 30 years policy term, he has paid for eightyears. The sum assured Rs. 8,00,000/- and accumulated bonus Rs. 60,000/-. What is the

paid up value?

A. 213333

B. 229333

C. 273333

D. 293333

C

16. What is the similarity between Recurring Deposits & cumulative deposits in a bank

A. Guarantees

B. Taxation

C. Tenure

D. Lock in periods

A

17. Mrs. Sheela received some amount out of her husbands death. In such a situation

what will be her prime focus?

A. Savings

B. Insurance

C. Investment management

D. Planning for pension

C

18. Mr. Kunal used to participate in Car race. While taking up the Insurance policy he

disclosed this information. What kind of hazard does it refers to

Physical hazard

Fraudulent representation

Moral hazard

Peril

A

19. Which of the following falls under voidable contract?

Misrepresentation

Lack of insurable interest


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Fraud

None of the above

A

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

A. Pooling of risk

B. Maintaining insurable interest

C. With utmost good faith

D. Randomness

A

21. If a client wants to compare between all financial products then the best person he can

approach is

A. Individual agent

B. Corporate agent

C. Bank

D. Broker

D

22. If a person want to maintain emergency funds the best place is a bank or

A. Equity market

B. ULIP

C. Debt mutual fund

D. FDC

23. During a fact finding process the need analyzed were income replacement and

childrens education. But the customer insists on only a child plan for the time being and

asks the agent to give him a child plan. The agent should.

A. Do the fact finding exercise again

B. Insist with the client to take a term plan

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

D. Give the lead to another agent

C

24. If a case is already before the consumer forum, then the ombudsman should

A. Give a recommendation

B. Give a joint decision with the consumer forum

C. Dismiss the case

D. Give an award.


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C

25. If 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

C

26. What is the advantage of converting physical gold assets to gold ETFs.

Liquidity

More gold in value

Purity

More conversion valueA

27. For which of the following reasons, the underwriter should ask beyond agents

confidential report.

Physical Hazard

Moral Hazard

SA is too high

Pure Risk

C

28. After doing the need analysis of the client, the agent advised the client to opt for TROP

product. But the client refused. According to ethical business practices what will the agent

do ?

Enquire about the refusal from the client

Suggest an alternative plan

Pass on to the superior

Pass on to the other agent

A

29. 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

B


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30. According to IRDA agents code of conduct, what is the best method of showing the

amount of commission earned by the advisor

Signed copy of sales illustration

Brochure

Sales Communication

Press releases

A

31. 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

A

32. 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 arrears

A

33. If the customer has invested money in a pension plan from company A and buys an

annuity from company B, what is the nature of transaction?

Life Long Annuity

Open Market

Reinsuring Annuity

B

34. If a policy holder buys a policy from the advisor and lodges a complaint, it should be

treated as :

Same for all policies sold by advisor

Same for all policies sold by the advisor except corporate clients

A

35. An investor holds a wide range of shares. If the Reserve Bank of India announces a

series of significant interest rate increases, the prices of these shares are most likely to

A. Become volatile


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B. Decrease

C. Increase

B

36. In life insurance business if a person is working in calculating premium rates of

insurance products, then he is mostly likely a member of

A. institutes of actuaries of India

B. insurance institute of India

C. Charted institute of insurance

D. Insurance institute of risk management

A

37. In a life insurance policy it is later found that the person doesnt have insurable

interest then the contract is

A. expired

B. reviewed

C. Void

D. Valid

D

38. If both parents of proposer died in their thirties due to heart attack what is the kind of

peril or hazard the proposer has?

Insurable hazard

moral hazard

non insurable hazard

Physical hazard

D

39. Raunak earns 80,000 per month as salary. He has taken a House loan of Rs. 500000.

What will be the maximum amount of EMI that can be charged by the Bank to recover the

loan amount?

Rs. 32000 per month

Rs. 24000 per month

Rs. 40000 per month

Rs. 48000 per month

A

40. Frequent switching is not advisable in ULIP plan because it increase

Investment Risk

Risk of death


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Uncertainty of return

Chances of lapse

A

41. According to insurance terminology which of the following is correct?

Lung cancer is a hazard whereas smoking is a peril

Smoking is a hazard and lung cancer is a peril

Lung cancer is a peril and smoking is a moral hazard

Smoking is a moral hazard whereas lung cancer is a peril.

B

42. 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.

D

43. 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

B

44. 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

D

45. 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 clients parents


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Consulting the family of the client

Reviewing his existing investments

A

46. Net premium is equal to

Premium plus interest earning

Risk premium plus interest earning

Premium minus interest earning

Risk premium minus interest earning

D

47. 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

B

48. Principle 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 job.

B49. Both 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.

C

50. In case of life insurance, Insurable interest must exist

At inception of policy

Not needed

At the time of claim

mock test english

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