IC 33 Test Questions

1. Which of the following is not true with regard to Human Life Value?

a) HLV is used, as a yardstick to determine how much life insurance cover a person should have
b) HLV is a one-time calculation
c) As age increases HLV diminishes
d) Through HLV insurance company tries to measure the economic value of a person

2. In case of lien:

a) If the insured dies within the lien period, insurance company will still pay the full sum insured.
b) The lien should diminish by an equal amount over a specific period of time
c) If the term of the policy is a multiple of three, then the lien operable is two third of the term of the
policy
d) Conditions under which a lien can be applied remain same for all insurance companies.

3. Rajan takes a family floater health insurance of Rs 3 lacs from Insurance Company X and has a
health cover of Rs 2 lacs from another company Y from his employers side. He suffers from
heart attack and has a total bill of Rs 4 lacs. He can take claim from:

a) Company X only
b) Company Y only
c) Both the companies to the extent of Rs 4 Lacs
d) Both the companies to the extent of Rs 5 lacs

4. Ajay has taken a term insurance policy with a Sum Assured of Rs. 4 Lacs. As per the IRDA
Regulations on Riders how much maximum Sum Assured he can take for Critical Illness rider

a) 2 Lac
b) 1 Lac
c) 4 Lac
d) 6 Lac

5. Attestation on the policy requires signature of

a) Agent
b) Insurance companys authorized official
c) Nominee
d) Appointee
6. Ramesh proposes a life insurance policy for his son. What is the status of Ramesh in this policy?

a) Proposer
b) Life Insured
c) Nominee
d) Appointee

7. Mr. Sudhakar wants to invest in Post office time deposit for tax benefits. What is the minimum
duration for which he needs to invest this money?

a) 1 year
b) 2 years
c) 5 years
d) 10 years

8. The client doesnt like the product recommended by the agent & explains the reasons for the
same. What should the agent do in this situation?

a) Refer the matter to arbitration

b) Review alternative products
c) Review the needs of the client and take the decisions accordingly
d) Refer product brochure

9. An investment like Kisan Vikas Patra(KVP) will be preferred by a person who is looking for

a) Lump sum investment & fixed maturity

b) Lump sum investment & open ended maturity
c) Monthly investment & open ended maturity
d) Monthly investment & fixed maturity

10. As per Prevention of Money Laundering Act (PMLA) 2002, what is the risk profile of a client
who is a Non Resident Indian

a) Low risk
b) Moderate risk
c) No risk
d) High risk

11. An offer made by A which is accepted by B unconditionally is an example of

a) Conditional acceptance
b) Rejection
c) Counter offer
d) Acceptance

12. Nikhil is taking a policy with a sum assured of Rs. 1, 00,000. What premium amount he can pay
to get the income tax benefit on full premium amount as per the Income Tax Act 1961

a) A minimum of Rs.10,000
b) A maximum of Rs.10,000
c) A minimum of Rs.20,000
d) A maximum of Rs.20,000

13. A person wants to lead peaceful golden years, which plan he should opt for:

a) Term
b) Endowment
c) Annuity
d) Money Back

14. A offers the plan & B accepts it unconditionally. It is:

a) Counter Offer
b) Acceptance
c) Modified acceptance
d) Lien

15. If there is advertisement in Newspaper regarding policy, it could be due to:

a) Counter Offer
b) Lost Policy
c) Lien
d) I do not want to attempt this question

16. In a policy, details of two persons are required in a Non Medical Section of Proposal form
because:

a) It is a Joint Life Policy

b) It is taken on another Life
c) It is a Whole Life Plan
d) I do not want to attempt this question
17. As per the Indian Evidence Act 1872, if a person is NOT heard for a long time, after how many
years, the presumption of death can be established:

a) 2 Years
b) 5 Years
c) 7 Years
d) 10 Years

18. While displaying the assumed growth in the future years, the rates of returns need to be as per the
guidelines of:

a) Insurance Regulatory and Development Authority

b) Life Insurance Council
c) Insurance Institute of India
d) Royal Bank of India

19. If a person is responsible to determine and finalize the rates of various Insurance Products for an
Insurer, he is a member of which body/society:

a) Actuarial Society of India

b) Insurance Institute of India
c) IRDA
d) Life Insurance Council

20. If a person aged 25 years, wants to take a plan, wherein, he can have some savings element and
also the protection should be for indefinite time, which plan would you suggest as an agent?

a) Endowment Plan
b) Unit Linked Insurance Plan
c) Term Plan
d) Whole Life

21. In a fact find process, the product recommended by an agent should depend on:

a) The need
b) The earning potential
c) Premium paying capacity
d) None of the above

22. The insurer rejects a proposal and sends a direct letter to the proposer, a copy of the letter is also
sent to the agent. What appropriate action would the agent take?

a) Contact the proposer and discuss the reasons for rejection

b) Fill a new proposal form
c) Advise the proposer to contact the Ombudsman
d) Advise the proposer to take insurance from another company

23. If someone wants to alter the nomination in the existing policy, what document would be
required:

a) A new proposal form needs to be filled

b) An endorsement on the policy stating the alteration
c) Nomination can not be altered
d) Assignment needs to be done

24. Akshat & Nitin both have invested in the same pension plan, with same Premium but at the end,
the Corpus of Akshat is more than Nitin. The reason is:

a) Akshat is younger than Nitin.

b) Akshat has no health problem
c) Akshat had started investing earlier
d) Nitin had started investing earlier

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

a) Moral hazard.
b) Moral peril.
c) Physical hazard.
d) Physical peril.

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

a) Commission
b) Charges
c) Non guaranteed benefits
d) Reversionary Bonus

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

a) Easy access
b) Fixed income
c) Tax Benefits
d) Liquidity
28. If the sum assured remains the same, what will be impact of net premium if the age of the
policyholder increases:

a) It rises
b) It falls
c) It remains constant
d) Gross premiums increases

29. 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?

a) Enquire about the refusal from the client

b) Suggest an alternative plan
c) Pass on to the superior
d) Pass on to the other agent

30. 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?

a) Reinstatement Fee and Proof of continuing good health

b) Premium cheque and health declaration
c) Only health certificate
d) Premium cheque with arrears

31. 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?

a) Life Long Annuity

b) Open Market
c) Reinsuring Annuity
d) Different market option

32. According to Insurance Brokers Association of India, what is the most appropriate relationship
between Insurer and Broker?

a) Insurance broker represents the client and the insurer remunerate the broker
b) The client represent the broker and the insurer remunerate the broker
c) Insurer represents both client and broker
d) Broker provides only service to the client
33. Customer gets automatic payments twice in gap of 5 years in his policy and after 1 year on his
death gets the entire amount again, which policy do you think he has

a) Endowment
b) Money Back
c) Term Plan
d) Annuity.

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

a) Lost.
b) Paid Up.
c) Lapsed.
d) Surrendered.

35. While calculating HLV- future income, no. of years of work, increments in salary is taken into
account. What else is important to be taken in to account?

a) Inflation.
b) Interest.
c) Discount rate
d) Compounding.

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

a) 10% of the premium on the base policy

b) 20% of the premium on the base policy
c) 30% of the premium on the base policy
d) 40% of the premium on the base policy

37. If there is no claim in a year then what will be the benefit to the customer as NO CLAIM BONUS

a) Discount in next year premium

b) Increase in Sum Assured next year
c) Loans facility
d) No benefit

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

a) 50 lakhs
b) 30 lakhs
c) 25 lakhs
d) 20 lakhs

39. Mr. Denny is married and has 2 children. Dennys parents are alive and living with him. He has
taken a family floater plan. Under the plan who all can be covered.

a) Denny
b) Denny and his wife
c) Denny, his wife and children
d) Denny, his wife, his children and his parents

40. What is the ceiling of tax exemption under 80 C.

a) 1 lakh
b) 1.5 lakhs
c) 2 lakhs
d) 3 lakhs

41. Vijay had taken a policy on annual mode and on his death in the 3rd year, the company paid claim
partially. This was because of
a. Premiums unpaid.

b. Claim documents not submitted.

c. Operation of Lien.
d. None of the above.

42. The Institute of insurance and risk management is engaged in providing insurance education and

a) Regulation
b) Redressal
c) Research
d) Repository

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

a) Every time premium is paid

b) If the policy has lapsed and it has to be revived.
 c) If the insured person falls sick and is admitted to hospital.
d) If the insured person changes his job.

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

a) At inception of policy
b) At the time of maturity
c) At the time of claim
d) At any time during the contract

45. 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?

a) 1 lacs
b) 3 lacs
c) 2 lacs
d) 1.50 lacs

46. Indisputability clause can be enforced by the insurance company during the

a) First five years of policy

b) First Two years of policy
c) Claim
d) Inception of the policy

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

a) 18 year old
b) 21 year old
c) 23 year old
d) 25 year old

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

a) Monthly
b) Quarterly
c) Half Yearly
d) Annually

49. 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.
a) 8000
b) 8320
c) 9456
d) 9240

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

a) 20,000
b) 50,000
c) Up to the sum assured taken in the plan
d) Unlimited

51. 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.

a) 2013
b) 2015
c) 2017
d) 2020

52. 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:

a) Switching
b) Doing a financial planning
c) Churning
d) I do not want to attempt this question

53. Certificate from the village panchayat is an age proof

a) Will be considered as standard age proof

b) Will be considered as non standard age proof
c) Will not be accepted
d) Depends on the insurer

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

a) 10000
b) 25000
c) 50000
d) 100000

55. Insurance Act 1938 does not deals with

a) Amalgamation and transfer of insurance business

b) Appointment of staff
c) Mutual funds
d) Power of investigation and inspection by the regulatory authority

56. In case of absolute assignment the payment is made to

a) Insured
b) Assignee
c) Nominee
d) Appointee

57. .which of the following are some of the financial goals of an individual

Childrens education and marriage

Probability of loss in share market
Planning a car
Giving gifts to relatives

58. The chances of adverse selection may be greater with the following method of underwriting:

a) financial
b) medical
c) non medical
d) accepting proposal with lien

59. A life Insured had died one day before the expiry of grace period without paying the due
premium? If insurance company has to pay claim at all, what should be the claim amount?

a) Sum Assured
b) Sum Assured + Bonuses (if any)
c) Refund all the premiums paid till date.
d) Sum Assured + Bonuses less premium due

60. While planning for the retirement of the client the agent must consider their expenses and:

a) Health
b) Saving Habits
c) Dependents
d) Inflation

61. In normal claim settlement process, if the death claim arises within few days of issuing the policy.
On priority company should check the following -
a) Age Proof
b) Material Facts
c) FIR
d) FPR

62. Agents should be very careful while filling the proposal and if has a doubt about the client
intentions. He should -

a) Issue the written warning to the proposer

b) Bring this to the notice of IRDA
c) Report to Ombudsman
d) Report to insurer

63. While presenting the recommendations to the client after the fact find interview. Agent should
link the recommendation with the

a) Needs of the client

b) Desires of the client
c) Product Benefits
d) Clients Income

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

a) Guarantees
b) Taxation
c) Tenure
d) Lock in periods

65. Mrs. Sheela received some amount from her husbands insurance policy after his death. In such a
situation what will be her prime focus?

a) Savings
b) Insurance
c) Investment management
d) Planning for pension

66. Waiting period provision is given in which of the following?

a) Permanent exclusions
b) No claim Bonus
c) Pre existing illness
d) Immediate Care
67. In a MWP policy the beneficiaries under the plan, other than wife can be

a) Ex- wife
b) Siblings
c) Parents
d) Children

68. In cashless facility the insured is issued a photo identity card which he can show it to hospital and
get the treatment done. If the person is admitted to a non network hospital

a) Claim will be denied

b) Full claim will be given as cashless
c) Insured will get the refund later on and will have to pay initially form his pocket.
d) Insured will not be admitted to non network hospital

69. In a policy document of endowment contract what should be the key contents

a) Distinction between Guaranteed and Non Guaranteed benefits

b) Details of premium paying term
c) Expected returns from funds
d) Amount of Insurance cover

70. In an endowment policy, bonus becomes payable because of:

a) Indexation
b) Inflation
c) Loading
d) Increase in Premium

71. After the agent has made the product presentation, client wants to take time in deciding, what
should be an ethical agent practice

a) He should ask for references

b) He should make him realize the importance of insurance
c) He should redo the fact finding process
d) He should ask when can he next contact the prospect

72. How is claim quantified in Hospital Care?

As stated in the policy document
Amount of bill raised by the hospital
No of days in hospital multiplied by per day charged by hospital
No of days in hospital multiplied by specified amount per day in policy

73. In an endowment policy how many nominees can be made

a) 1
b) 2
c) 3
d) as many nominees

74. If Anil makes commutation in his policy, he has purchased

a) Annuity plan
b) Term plan
c) Endowment plan
d) ULIP plan

75. Dev has surplus funds but is worried for his familys future in case he is not there but he is also
concerned for his own savings if he lives for another 20 years, he should buy:

a) ROP
b) Endowment
c) Annuity
d) Term plan

76. If a person is concentrating more on health plan and retirement plan he is at which stage

a) Old married
b) Young married
c) Young married with kids
d) Pre Retirement

77. If a person has taken license from IRDA he can:

a) Work for more than 1 insurance company

b) Sell Term plans
c) Sell Annuity plan
d) Sell endowment plan

78. In a G.Sec if no interest is to be paid, what is guaranteed on maturity?

a) Principal amount + Bonus
b) Principal amount
c) Principal amount + appreciation
d) I do not want to attempt this question

79. If an insurance company asks higher official to submit their report this is to check

a) Physical hazard
b) Moral hazard
c) Ensure persistency
d) Client interest to buy

80. Shyam and his wife are being advised to have an estate planning after their fact finding. In what
stage of life cycle stage they may be

a) Young Married
b) Young Married with children
c) Married with older children
d) Retired

81. Mohan want to invest a big amount but does not want to have insurance cover in it. Which plan
should he choose?

a) Whole life Plan

b) Unit link Insurance
c) Term Insurance
d) Pure Endowment Plan

82. Kabir wants to save money in shares and Gold .Which type of benefits he will get

a) Capital Appreciation
b) Interest Earning
c) Dividend Earning
d) Income and capital Appreciation both

83. Mohan has a bought a Term Plan for 30 Lacs. After 25 years his SA reduced to 25 lacs .What
could be the probable reason?

a) His son has become of 18 years

b) Rider has expired
c) His liabilities has come down
d) His wife has started earning
84. Sohan wants to buy a 20 year term insurance policy but wants to add accident benefit rider in it.
Which is the best possible step he should be taking?

a) Take the minimum level

b) Match base SA
c) Seek professional advice
d) Take a WLP

85. The most common connection between members of the same group health insurance policy is:

a) neighbors
b) close relatives
c) employees
d) none

86. Mohan receives an automatic payment against his 15 year life insurance policy, though the
maturity is years later. What type of policy is it?

a) Endowment
b) Level term policy
c) Money back
d) ULIP

87. Onkar starts a life insurance policy with A company and ends up taking annuity payments from
B. Which feature has he exercised?

a) Deferred annuity
b) Commutation
c) Open Market
d) Immediate annuity

88. What will be the rate of tax deduction at maturity for a policy with a premium of Rs. 15000, term
15 years?

a) 10%
b) 15%
c) 13%
d) NIL
89. An insurance broker has been introduced by the IRDA

a) Represents the buyer and remunerated by the company

b) Represents the company and remunerated by the buyer
c) Represents the company and the buyer
d) Remunerated by the company and the buyer

90. Weekly premium option can be taken in which kind of policy

a) Term
b) Whole Life Policy
c) Micro Insurance
d) ULIP

91. If a lien has been levied on a policy for the 1st 5 years, then its impact in the 3rd year as compared
to 4th year will be

a) lesser
b) higher
c) equal
d) none

92. Ajay withdraws 10 % in cash from the retirement fund and uses it for personal reasons. As per
IRDA norms, how will this withdrawal be treated under tax?

a) 10% is Taxable as per the current tax slabs

b) 10% of the withdrawn money is taxable and rest is tax free
c) Entire money is tax free
d) Tax rates prevailing at that time will be applicable

93. In case of any unethical practices in sales followed by an insurance company the clear cut impact
will be shown in

a) Claims ratio
b) TAT on complaints
c) Persistency ratio
d) Market share

94. Non Government Organizations are very instrumental in promoting

a) Link between clients and agents

b) Acts in favor of Insurer
c) Awareness about insurance
d) Link between customer and company
95. Mr. Gaurav 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:

a) Agent
b) Chief Actuary
c) Under writer
d) None of these

96. Direct Marketing channel is done through-

a) Newspaper
b) Banc assurance
c) Composite Broker
d) At customers convenience

97. A customer complains regarding change of address for his policy which was received by the
officer after 2 days of his complaint. What is the stipulated time frame within which an insurer is
supposed to respond after receiving any communication from its policyholders?

a) 24 hours of sending a complain

b) 1 day after the complain date
c) 10 days from the date of receiving the complaint
d) 30 days from the date of customer letter

98. Saurabh is 25 years old young man and has invested a pretty good amount in shares. Recently he
is shifting his investments to Gold ETF. Now state which of the following is the most likely
motive of doing so?

a) He is interested in savings only

b) He prefers both regular savings as well as capital appreciation
c) He prefers capital growth only
d) 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

99. Smitha has decided to invest Rs. 10000/- every year in ULIP and have 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?

a) Both the investments have same impact.

b) In ULIP IT exemption u/s 80C is not available.
c) PF is also not eligible for IT exemption u/s Sec. 80C.
d) Both are taxable as per Income tax Act 1961

100. In term insurance policy if there is loading , it clearly depicts-

a) Morbidity risk
b) Mortality risk
c) High Age
d) High Sum assured
101. Whole life policy Document is a-

a) Contract of Insurance
b) Evidence of Contract
c) Indemnity contract
d) Insurance

102. Margin Money is build up by investing in schemes to buy-

a) Car Insurance
b) Property
c) Insurance
d) Marriage venue

103. The advantage of buying from an insurance brokers is

a) More regulated market

b) Policyholder interest is taken care
c) More types of plans to choose
d) They offer plan that best suits the customer

104. Mortality rate helps to identify

a) Peril
b) Level of Risk
c) Uncertainty
d) Hazard

105. A person of age 15 has entered an insurance contract. Which is valid with
regards to the contract?

a) Valid in the eyes of law

b) Null and void
c) Voidable
d) Consideration.

106. In loan granted against the policies, what is true

a) It is on premiums paid
b) It is on Sum assured
c) Its a percentage of surrender value
d) Its on paid up value
107. The policy is of term 30 years. For how many years maximum lien can be
applied

a) 5
b) 10
c) 15
d) 20

108. A proposal is accepted with lien. What is lien a substitute for:

a. Decline Claim
b. Increase premium
c. Increased SA
d. Postponement

109. Rajiv has been identified with income replacement and health insurance need.
Due to his current financial arrangements, he wants the cover which can be cheapest. What
should he consider?

a) Pure Term
b) Pure endowment
c) Endowment assurance
d) Health insurance

110. After receiving the particular claim the policyholder keep the policy document.
What is the possible reason

a) Its a term policy

b) Its a term policy with returns of premiums
c) Its a survival claim
d) Its required for future records.

111. In one of the policy Appointee is required for the nominee. The reasons could
be:

a) The nominee is mentally challenged

b) The nominee is a minor
c) Its a children plan
d) The nominee is physically handicapped
112. If Rajesh earns actual rate of return as 5% and fixed deposit earns an interest of
8%.What could be the reason for this reduction of 3%?

a) Decrease in Interest rates

b) Lock ins
c) Penalties
d) Inflation

113. If job loss is a risk, one should invest in Debt Instruments like Bank deposits
and

a) Government securities
b) Debt Mutual Funds
c) National saving certificates
d) Corporate bonds.

114. In case of claim paid on critical illness rider,

a) The money can be used only to settle medical bills

b) The money can be used for construction of house
c) There is no restriction on the usage of money
d) The money can be used only to replace income loss

115. Ankur wants to plan for his daughters education. As a financial advisor what
rate should you consider to plan for her education in a later date?

a) Bonus
b) Inflation
c) Interest
d) Investment.

116. Rajan wants to make a monthly investment for his retirement but then decided
to postpone for 10 years, he is suggested that the contribution then will be 120%.What is the
possible reason?

a) Interest
b) Compounding
c) Taxation
d) Lock in
117. Rajiv has a pension plan which his employer has bought for him under
employer employee. The return on the investment is shown in an illustration. This depicts

a) Employer employee benefits

b) Guaranteed and non guaranteed
c) Returns on one investments
d) Bonus and pension.

118. After submission of all documents and papers in case of Death claim; the
proper identification of the payee cannot be done due to some reason. After how many days the
bank interest is payable to the payee.

a) 15
b) 10
c) 30
d) 6 months

119. De-tariffication of TAC will help

a) Pricing can be decided by risk assessment by insurer

b) Reduce the Pricing
c) Increase Pricing
d) Pricing as per the market .

120. The main training institute in India is

a) Life Insurance Council

b) Tariff Advisory Committee
c) National Insurance Academy
d) IRDA

121. The Rider premium for Health policies can be_____ of the premium of main
policy

a) 30%
b) 50%
c) 100%
d) 15%

122. The IRDA regulation requires having effective internal grievance Mechanism
in place. This is mandatory

a) For some Insurers

b) For all Insurers
c) Depending on the insurer
d) Depending on the tenure of insurer.

123. If the complaint is before the consumer forum, then

a) The ombudsman can make a recommendation

b) Complaint is not accepted by ombudsman
c) The ombudsman will overpower the consumer forum
d) The ombudsman will ask for reports.

124. At what time of the proposal the agent should declare his commissions as per
the code of conduct?

a) At the time of filing the proposal

b) Recommending the product
c) When asked by the client
d) When the client has accepted the recommendation.

125. Ravi wants to invest in a debt instrument for returns and tax benefits. For Tax
benefits what tenure should he consider?

a) 5
b) 10
c) 15
d) 20

126. Rajan has two needs being identified and quantified one is child education and other is
retirement. Rajan

wants to take care of child education first and then retirement. As an advisor what will
you do?

a) Accept the proposal and keep the uncovered need in records

b) Pass the contact to another advisor
c) Inform the registrar to maintain the records.
d) Redo the recommendations.
 127. Ravi applies a health insurance policy and has submitted the proposal form along with the
documents. In how much time should he receive the copy of the form submitted

a) 15 days
b) 10 days
c) 30 days
d) 6 months

128. Ram wants to buy a plan of insurance from XYZ insurance company. He was
asked to furnish the name of appointee in the proposal form. Which reason would have lead to
the same?

a) He is buying the plan on his own life.

b) He is buying the plan for his wife.
c) The nominee must be a minor in this case.
d) Insurers discretion

131. The reason for very less penetration of life insurance in India is:

a) Many people do not appreciate the importance of having insurance cover

and prefer to live with risk rather than transferring the risk to an insurance company
b) Agents are not professional enough to provide need based solutions to
customers
c) Insurance companies want to have more profits and they do not focus on
customers
d) Insurance companies do not have good products to offer.

132. The main function of IRDAs Grievance Redressal Call Centre is to educate the policyholders
regarding

a) Consumer Forum
b) Insurance Ombudsman
c) GIC
d) III

133. Ajay wants to take a life insurance policy for his child, out of Certificate of Baptism and
Ration card, which will be accepted as standard age proof?

a. Certificate of Baptism and Ration card both are standard age proof.
b. Certificate of Baptism is non-standard age proof and Ration card is a standard
age proof.
c. Certificate of Baptism is standard age proof and Ration card is a non-
standard age proof.
d. Both are non-standard age proof.
 134. An advisor has identified need of the client now should he communicate the details of the
product to the customer or what is the next step after identifying client needs.

a. Identifying new need

b. Prioritizing the needs
c. Assess the need in monetary-terms
d. Ask for details of the client

135. When the sales target of the agent is less what will be its effect on churning.

a. Less churning.
b. High Churning
c. No Churning.
d. Less sales

136. For the agents to carry out their role in a professional manner they must adhere to the Code
of Conduct specified by which authority?

a. Life Insurance Council

b. Ombudsman
c. National Insurance Academy
d. IRDA

137. Ramesh has taken a policy, which is not a pension plan but he continues to receive the
maturity amount even after years of maturity, in installments. How?

a. Death claim.
b. Settlement option
c. Money Back plans
d. He has asked for installments

138. Loan can be taken against life insurance policies. The loan can be a specific amount of
which value?

a. Paid-up value
b. Surrender value
c. Total premiums paid
d. Sum assured

139. The process of de-tariffication is referred as

a. Free hand for risk assessment

b. No mortality tables
c. Freeing the pricing of insurance
d. Imposing price of insurance

140. What are the financial planning need for a 38 year old lady with 2 year young daughter,
whose husband has passed away leaving enough insurance cover

a. Estate planning
b. Investment management
c. Loan protection
d. Pension planning

141. In money back plan the nomination can be done:

a. Outset stage only

b. Policy anniversary only
c. Outset and policy anniversary only
d. Any time

142. If Rahul buys a joint life plan along with his wife then according to the IRDAs code of
conduct for agents, the agent has to act in the interest of:

a. Rahul only
b. Rahul and his wife
c. Rahul and insurer
d. Rahul, his wife and insurer

143. How Insurance companies take additional risk beyond their capacity?

a. By re-insuring
b. By retaining
c. By charging extra premium
d. By not paying claims

144. The primary object of Fact Finding is

a. Giving comparison to customer

b. Need Identification of customer
c. To provide regulation information
d. To do the audit of customer

145. Which body prescribes the codes of conduct of Agents?

a. Insurance Institute of India
b. Insurance Regulatory and Development Authority
c. Indian Institute of Research & Management
d. National Insurance Academy

146. Main reason for premium discount for a annual premium payment under a life insurance
policy is because of issues relation to

a. Administration cost
b. Bonus calculation
c. Medical expenses
d. Mortality risk

147. In term of risk, mortality tables are used by Life Insurance companies in order to help them
quantify the

a. Moral Hazard of an individual risk

b. Physical Hazard of an individual risk
c. Probability component of risk
d. Severity component of risk

148. When a person set aside money to cover the possibility of the job loss, the best in this
situation is to invest in bank deposit or in:

a. Corporate bond
b. Debt M.F.
c. Government security
d. National saving certificate

149. What will happen to the complaint which is made both to Ombudsman and COPA

a. Ombudsman will diminish or dismissed the complaints

b. Ombudsman will hear the complaint
c. COPA will not hear the complaint
d. COPA will hear the complaint

150. Muthu has taken G-Securities by paying lump sum investment; apart from getting
periodically interest what he will get at the end of the term?

a. Discounted Value with interest

b. Principle amount
c. Discounted Value with persistency bonus
d. Principle with persistency bonus
 151. What is the special feature of ULIP that ensures customer risk profile for long time
insurance policies?

a. Fund Switching
b. Partial Withdraw
c. Premium Holiday
d. Riders

152. In which circumstances, an agent should carry his license:

a. While selling life insurance policy

b. While selling non life insurance policy
c. While selling medical insurance policy
d. In all circumstances

153. The basic reason of doing a income and expenditure analysis is to find out:

a. Fund on Retirement
b. Net Income
c. Affordability
d. Assets and Liabilities

154. Who gives the grant to IRDA?

a. Life insurance India

b. Central government
c. Insurance institute of India
d. None of above

155. Which area of Life Insurance does Micro Insurance cater to:

a. Employees of Large organizations

b. Parents of small to medium size families
c. People with lower income
d. Employees of Govt organizations

156. The need for the Health Insurance plans is of more relevance to the self employed than to the
person of Public Sector because

a. The Public sector employee can get the funds anytime

b. The Public sector employee get many benefits from their organization
c. The self employed is more prone to the medical problems
d. The dependency on the self employed of the whole family is more

157. Mr. Y has taken a ULIP plan. When will the nomination ceases?

a. Assignment
b. Switching
c. Redirection
d. Withdrawal

158. What is ensured by higher persistency to the insurer?

a. More productivity
b. Higher attrition
c. Higher Profits
d. Higher S.A

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

a. Perils are medical factors which influence the risk of dying and hazards are
lifestyle activities which influence the risk of dying.
b. Perils are risks that policyholders will die before a specified date and
hazards are factors which could influence that risk.
c. Perils are factors which affect the risk being insured and hazards are the size of
the risk being insured.
d. Perils are factors which could influence an insured event occurring and hazards
are the actual events which will trigger a payout

160. If the client does not wish to proceed with the recommendations right at the moment the
agent

a. Insist on taking the product right away

b. Should ask for the reason for not going with the recommendation
c. Should ask for a future date from the client
d. Should review once again

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

a. IRDA
b. SEBI
c. RBI
d. SBI
 162. Nishith is an insurance agent , He was in process of selling Unit Linked Insurance Plan to
his customer The Customer has asked one technical question to him for which he did NOT know
the answer, According to the best practices What Nishith should do:

a. Declines act to customer

b. Ask Customer to refer product booklet
c. Refer matter to Supervisor
d. Ask question to give in writing

163. Harish wants to buy an insurance plan for his brother Rakesh, the factor which shows the
principle of Insurable interest, makes it possible, if:

a. Harish owes money to Rakesh

b. Harish will adversely affected financially due to death of Rakesh
c. Rakesh is older than Harish
d. Rakesh signed financial disclaimer about his liabilities

164. A customer who has taken a whole life policy has to renew the insurable interest in the
policy at the following times

A. Once he attains the age of 70

B. Once the policy has been in force for a term of 30 years
C. At the time of revival of the policy
D. When there is a change in the nominee

165. Sahil has submitted a proposal for insurance. Assuming that there was NO special agency
engaged, apart from the Agents confidential Report, what would be needed?

A. Medical Report
B. A moral hazard report from senior employee of sahils insurer
C. Statement of good health
D. Declaration by Sahil

166. In respect of the calculation of interim bonus, which period would be considered?

A. Next bonus date

B. Previous valuation date to claim date
C. Next valuation date to claim date
D. Date of claim

167. A Life insurance agent can work for how may life insurance companies at a given time

A. One
B. Two
C. Four
D. All insurers
 168. There are 2 policies assigned by the policyholder policy A and policy B. Policy A has been
assigned absolutely. Policy B has been assigned conditionally. At the time payment of maturity,
what should the insurer do in the case of policy B?

A. Pay the maturity to the assignee

B. With-held the claim
C. Check at the pre-payment stage, if the conditions of assignment are fulfilled
D. Pay the maturity to assignor

169. The existence of insurable interest should be there in a life insurance policy

A. At the outset of the policy only

B. At the time of renewal of the policy
C. At the outset of the policy and at the time of claim
D. All times when the policy is in force

170. An indemnity bond was signed when the claim was paid. This indicates that the policy

A. Was lost.
B. Was paid up.
C. Was lapsed.
D. Was surrendered.

171. Who are the clients for Re-insurance companies

A. HNIs
B. Insurance companies
C. NRIs
D. All Agents

172. How can any Agent prove that he has shared with prospect, information on commission he
earns?

A. Prospect Signing proposal form

B. Prospect giving age proof
C. Prospects signature on Benefit illustration
D. Confirmation through telephone

173. What kind of policy does the employer who has insurable interest in the life of an employee
take?

A. Surety insurance
B. Key-man Insurance
C. Partnership Insurance
D. Debtor Insurance
 174. What should an agent do to understand the state of mind of the client with respect to his
investments in saving products

A. Fact finding
B. Consulting the clients parents
C. Consulting the family of the client
D. Reviewing his existing investments

175. If a person receives 10000 less as death claim after paying all premiums and there is no lien.
It could be due to

A. Increase in premium rates

B. loadings
C. loan
D. Inflation

176. If there is no claim bonus, it will result in:

A. Reduction in premiums next year

B. In crease in premium
C. Tax benefit
D. No claim

177. As per AML guidelines the max cash accepted is:

A. 25K
B. 50K
C. 75K
D. 1L

178. An instrument which involves investment in different companies

A. Kisan Vikaspatra
ii. Mutual fund
C. Bank FD
D. Corporate bonds

179. Unique facility in ULIP which allows changing the investment option as per market situation

A. Switching
B. Redirection
C. Top up
D. Surrender

180. 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.
A. The policy needs to be advertised in the newspaper.
B. Nishu has to sign an indemnity bond.
C. Thumb impression of Ashu has to be taken.
D. Ashu needs to be medically examined.

181. An elderly person wants to use tax efficient investment and invests in senior citizen saving
scheme. Impact on taxation because of this decision will be that

A. He will get tax benefit up to 5000

B. He will get tax benefit up to 25%
C. He will get a reduction in tax slab
D. His investment would be deducted from taxable income

182. What is the key, which shows that the insurance contract has begun?

A. Receipt of Policy Document

2. Receipt of First Premium
C. Proposal Form Submission
D. Cheque submitted date

183. If the agent is not made sales target oriented, the results in churning will be
A. Less likely
B. More likely
C. Increase
D. Decrease

184. What will insurance companies do in case heavy loss incurred to them beyond their limit?

A. Re Insurance
B. Bancassurance
C. Pay less Sum Assured
D. Reject the claim

185. Sahil has taken insurance policy of 1 crore SA. Underwriter will asks for moral hazard
report from:

A. Sahil`s employer
B. Sahil`s employee
c. Sahil`s insurer employee
D. Sahil`s agent

186. In the process of calculation of net premium, which will be deducted:

A. Bonus
B. Rate of return
C. Income from investments
D. expenses
 187. Benefit received on death of a person has increased in which type of policy:

A) Reason for death

B) Joint life policy
C) Term policy
D) ULIP

188. Amar was hospitalized and submitted his photo identity card to network hospital. He has
availed cash less facility. Who will pay bills?

A. Amar has to pay whole bills

B. Hospital will get bills settled from insured and insurer in equal
proportion
C. Hospital will get bill settled from insurer
D. Insured will have to pay first and claim from insurer

189. In case of widowed woman financial planning should ensure:

A. Estate planning
B. Retirement
C. Investment Management
D. ULIPS

190. A life insurance company selling product through newspaper advertisement is an example
of:

A. Need based selling

B. Cross selling
C. Direct selling
D. Indirect selling

191. Professional insurance market will affect the job market in the way of:

A. Increasing job opportunity

B. Decreasing job opportunity
C. More salary
D. Less salary

192. In term policy loading is added for:

A. Administrative expense
B. Mortality
C. For bonus
D. For morbidity
 193. Adeesh wants to take a joint life term plan for which he is the premium payor. According to
his insurance agent who is the principal?

A. Adeesh only
B. His wife only
C. Adeesh and his wife
D. Insurer only

194. Non governmental role in insurance industry is:

A. A regulatory requirement
B. For research and training
C. To create awareness
D. To provide actuarial data

195. The ombudsman should make an award with the time limit of.

A. One month
B. 6 months
C. 1 year
D. 3 months

196. The condition that sum assured is payable on regular premium payment is reflected on
which part of the policy document?

A. Preamble
B. Terms and conditions
C. Operative clause
D. Policy information statement

197. During fact finding, what will be the next step after Identifying clients need:

A. Quantify clients need

B. Priorities Clients Need
C. Recommending Product
D. Fill up the proposal form

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

A. 50 lakhs
B. 30 lakhs
C. 25 lakhs
D. 20 lakhs

199. During Fact-finding, 3 rating indicates:

A. Risk appetite of client
B. His future aspiration
C. Commitment to need
D. Willingness to pay

200. In which of the following bank deposits does the bank pay the principal and interest to the
individual at the end of the term?
A. Saving deposits
B. Traditional deposits
C. Cumulative deposits
D. In none of the above