Q. No.

Multiple Choice Question Option 1 Option 2 Option 3 Option 4 Correct Option

Chapter No.
1 How many days are given for Grace Period 31 days 15days 60 days 10days 1 13
2 How many nominee's can be made in one Policy Contract 0ne ane or more Two None 2 13
3 Nomination is alloweded under which section Sec 10 Sec 38 Sec 39 Sec 45 3 13

if premium are not paid on if premium are not paid if premium are not paid
4 when is policy deemed to be lapsed if policy is surrendered 3 13
due date before due date even during days of grace

5 Assignment is governed by section Sec 10 Sec 38 Sec 39 Sec 45 2 13

6 Assignment can be done in type- conditional absolute conditional and absolute None 3 13
policy holder is not
7 When is appointee is needed insured is minor nominee is minor policy holder is not well 2 13
married
8 to acquire a surrender value how many much long premiums is to be paid 2 years 3 years 4 years 5 years 2 13
9 can a policy holder can change the nominee yes no after 2 years it depends 1 13
revival of policy increase
10 During revival of the lapse policy , which is most significant option evidence of insurability payment of premium revival application 1 13
therisk
11 Can a duplicate policy can be issued yes no after 2 years it depends 1 13
12 who devised concept of HLV Martin luther Prof Hubner geeorge None 2 6
13 which is not asset Car Human life Air House 3 6
14 Which is not categrised under risk dying too young dying too early natural wear and tear living with disability 3 6
return subject to effect of low accumulation in early
15 advantage of cash value contracts lower yield secure investment 2 6
inflation years
16 method to determine the insurance needed Human Economical value term proposion human life value future life value 3 6
safe and secure
17 What is not a advantage of cash value contract saning disciplne lower yields tax advantage 3 6
investment
18 life insurance are contracts of assurance while gen insurance policies are contracts of indemnity TRUE FALSE it depends it depends 1 6
Young are mostly
19 why Young people are charged lesser life insurance premium as compared to old age old can afford to pay more mortality is related to age None 3 6
dependent
collecting funds from
investing funds across time diffence between
20 how does diversifiaction reduce risk in financial markets multiple source and investing in safe assets 2 6
various assets investment
investing in one
21 which plan has the least or no amount of savings element Term plan endowment plan whole life money back 1 6
22 Corporate Agent Regulations were amended in 42217 42248 42583 42614 1 4
23 Corporate Agent Regulations Shall come into effect from 1st April 2015 1St September 2016 1st April 2016 1st September 2015 3 4
24 A Company formed under the companies Act 2014 2015 2013 2012 3 4

25 A Limited Liability Partnership formed and registered under the limited liability partnership Act 2006 2008 2007 2009 2 4

26 Co-operative Society Act came in to effect 1938 1912 1927 1956 2 4

27 A person employed by a telemarketer for the purpose of solicitation or sale is known Approved Person Appointed person Authoried Verifier Employee 3 4

28 A Corporate Agent (Life) can work with maximum of 4 Company 3 Company 2 Company 1 Company 2 4
After How many days It shall be deemed that the Said corporate agent has no objection to his
29 30 days 45 days 60 days 90 days 1 4
switching over
30 A corporate agent is permitted to submit the application for renewal of registration 30 days 45 days 60 days 90 days 4 4
Principal officer and specified persons before seeking a renewal of registration shall have
31 75 hrs 50 hrs 25hrs 10hrs 3 4
completed the training of
Corporate agent shall at the time of application of registration and renewal pay non refundable
32 Rs. 50000 Rs. 25000 Rs. 15000 Rs. 10000 4 4
application fee
33 Payment of Premium required under section 64CV 64BV 64VC 64VB 4 4

34 address proof, PAN card and photographs etc. need to be collected as a part of the Document Requirement KCY Procedure Policy Requirement KYC procedure 4 10
The AML program should include internal policies, procedures and controls and appointment of principal compliance
35 underwriter survayor TPA 2 10
a _____________________ officer
 __________ is the likelihood that a client's behaviour might change as a result of purchasing a
36 Moral hazard Habbies Job Residence 1 10
life insurance policy and such a change would increase the chance of a loss.

Details pertaining to physical features like height, weight, blood pressure, cardiac status etc. are
37 medical refree report doctor report hospital report medical examiner’s report 4 10
recorded and mentioned by the doctor in his/ her report called the…. .
Matters of health, habits and occupation, income and family details need to be mentioned by
38 Proposal form Endorcement Agent's Report Agent's Declaration 3 10
the agent in the
During the _________ period, if the policyholder has bought a policy and does not want it, he/
39 Free evaluation Free look Cancellation Free Trial 2 10
she can return it and get a refund.
40 Which of the below is not a valid address proof? PAN Card Voter ID Card Bank passbook Driving licence 1 10

The insurance company

will refund the premium
after adjusting for
The insurance company The insurance company The insurance company
Which of the below statement is correct with regards to a policy returned by a policyholder proportionate risk
41 will refund 100% of the will refund 50% of the will forfeit the entire 3 10
during the free look period? premium for the period on
premium premium premium
cover, medical
examination expenses and
stamp duty charges

In case the policyholder is not satisfied with the policy, he / she can return the policy within
42 60 days 45 days 30 days 15 days 4 10
the free-look period i.e. within ________of receiving the policy document.
Money laundering is the process of bringing _______ money into an economy by hiding its
43 Illegal, illegal Legal, legal Illegal, legal Legal, illegal 1 10
_______ origin so that it appears to be legally acquired.
From the below given age proof documents, identify the one which is classified as non-standard Identity card in case of
44 School certificate Ration card Certificate of baptism 3 10
by insurance companies. defence personnel
The application document used for making the proposal is commonly known as the
45 Application form Proposal form Registration form Subscription form 2 10
__________.
A __________ is a formal legal document used by insurance companies that provides details
46 Proposal form Proposal quote Information docket Prospectus 4 10
about the product.
Emotional behaviour of the Height, weight and blood
47 Which of the below features will be checked in a medical examiner’s report? Social status Truthfulness 2 10
proposer pressure
Increased risky behaviour Increased risky behaviour Decreased risky behaviour
Engaging in criminal acts
48 Which of the below can be attributed to moral hazard? following the purchase of prior to the purchase of following the purchase of 1 10
post being insured
insurance insurance insurance
Village Panchayat
49 Which of the below is an example of standard age proof? Ration card Horoscope Passport 3 10
certificate
50 The Risk is not assessed properly and there is a claim, it will result in a Loss Profit No Loss/No Profit Non of the above 1 20

51 ____&_____information from a proposer for the risk selection is know as underwriting Collecting and Disclosing Collecting and submitting Analyzing and disclosing Collecting and analyzing 4 20

52 Health insurance is based on the concept of Motality Morbidity Both A and B None of the above 4 20
Marketing insurance collecting premiums from Risk Selection and Risk Selling various Insurance
53 Underwriting is a process of 3 20
products customers Pricing products
54 In Health insurance there is a higher focus on Financial or Income Medical or health income and medical Financial and health 2 20
55 Morbidity premiums for infants and children are _________Than young adults Higher Lower remain constant None of the above 1 20
anti selection and
56 Purpose of underwrinting ignore the risk anti selection classification risks 4 20
classification
57 Underwriter Classify the risk in how many classes 6 5 4 3 3 20
58 who is the primary underwriter Company underwriter insurance Company company employee Insurance Company Agent 4 20
Raj is opting Most Raj is taking health Raj is opting budgeted Raj is disclosing that he will
59 as per Morale hazard please select the correct option 1 20
Expensive Treatment insurance knowing that he treatment under go a surgery
60 Who can stop the fraud underwriter Agent Insurer Insured 2 20
61 Every new product needs approvals of underwriter Insurer IRDA RBI 3 20
Underprocessed by
62 File and use procedure for health insurance is Clearnace of the Authority Hold by Authority Rejected by Authority 1 20
Authority
63 The file and use application for the prior approval of the authority shall be certified by Actuary CEO Both A and B None of the above 3 20
 Both the insurer and the
64 The Principle of utmost good faith in underwriting is required to be followed by __________. The Insurer The Insured The medical examiner 3 20
insured
Each insurer's share of loss
Financial interest of the The amount of the loss
the asset which is already when more than one
65 Insurable interest refers to ________________ person in the asset to be that can be recovered 1 20
insured company covers the same
insured from the insurer
loss

current health status and Proposers have to undergo

It involves high cost in percentage assessment is
age are the key factors in medical and pathological
66 Which of the following statements about medical underwriting is incorrect? collecting and assessing made on each component 4 20
medical underwrinting for investigations to assess
medical reports. of the risk.
health insurance. their health risk profile

1) In a group health insurance, any of the individual constituting the group could anti - select
Satement 1 is true and statement 2 is true and statement 1 and Statement 1 and
67 against the insurer. 2) Group health 4 20
statement 2 is false statement 1 is false statement 2 are true statement 2 are false
insurance provides coverage only to empoloyer - employee groups.

68 Which of the following factor does not affect the morbidity of an individaul? Gender Spouce Job Habits Residence Location 2 20

The sum insured the actual losses

The actual losses to the A fixed amount agreed
69 According to the principle of indemnity, the insured is paid for ___________ irrespective of the amount irrespective of the sum 1 20
extent of the sum insured between both the parties
actually spent assured
The first and the Primary source of information about an applicant, for the underwriter is his
70 Age Proof documents Financial documents Previous medical records Proposal form 4 20
________________.

All the critical information

All the medical The received information
related to the health and The policy is issued to the
examinations and tests of is carefully assessed and
71 The underwriting process is completed when _______________. personal details of the proposer after risk 3 20
the proposer are classified into appropriate
proposer are collected selection and pricing.
completed risk categories
through the proposal form

Analysis of difficult or
Numerical rating method
doubtful cases is not This method can be used
provides greater speed in It ensures consistency
possible on the basis of by persons without any
72 Which of the following statements about the numerical rating method is incorrect? the handling of a large between the decisions of 2 20
numerical points without specific knowledge of
business with the help of different underwriters.
medical referees or medical science.
trained personnel.
experts.

Insurance Authority of Insurance Regulatory and Life Insurance Corporation General Insurance
73 Which among the following is the regulator for the insurance industry in India? 2 1
India Development Authority of India Corporation of India
Setting aside reserves as a
provision for meeting Hospitalisation costs as a
74 Which among the following is a secondary burden of risk? Business interruption cost Goods damaged cost 3 1
potential losses in the result of heart attack
future
Which of the below insurance scheme is run by an insurer and not sponsored by the Employees State Insurance
75 Crop Insurance Scheme Jan Arogya All of the above 3 1
Government? Corporation
76 Risk transfer through risk pooling is called ________. Savings Investments Insurance Risk mitigation 3 1
77 The measures to reduce chances of occurrence of risk are known as _____. Risk retention Loss prevention Risk transfer Risk avoidance 2 1

Out of 400 houses, each valued at Rs. 20,000, on an average 4 houses get burnt
78 every year resulting in a combined loss of Rs. 80,000. What should be the annual Rs.100/- Rs.200/- Rs.80/- Rs.400/- 2 1
contribution of each house owner to make good this loss?

Insurance is a method of
Insurance is a method of Insurance is a method of Insurance is a method of
transferring the risk of an
79 Which of the following statements is true? sharing the losses of a sharing the losses of a transferring the gains of a 1 1
individual to another
‘few’ by ‘many’ ‘many’ by a few few to the many
individual
80 Which among the following is a non-traditional life insurance product? Term assurance Universal life insurance Endowment insurance Whole life insurance 3 9

Variable life insurance is a Variable life insurance is a The policy provides a

The policy has a cash value
81 Which of the below statement is incorrect? temporary life insurance permanent life insurance minimum death benefit 1 9
account
policy policy guarantee
Postponing allocation of
Allocation of resources Temporary allocation of Diversification of resource
82 What does inter-temporal allocation of resources refer to? resources until the time is 2 9
over time resources allocation
right
Clear and visible method
Yields on these policies is Well defined cash and Rate of return is not easy
83 Which among the following is a limitation of traditional life insurance products? of arriving at surrender 4 9
high savings value component to ascertain
value
84 Where was the Universal Life Policy introduced first? USA Great Britain Germany France 1 9
85 What are the determinants of Health? Lifestyle factors Environmental factors Genetic factors All of the above 4 17
86 What are the types of level Healthcare? Primary Healthcare Secondary Healthcare Tertiary Healthcare All of the above 4 17
Do not have first contact
87 Primary healthcare refers to services which are contacted First contact by the patient Option 1 is correct None of the above 3 17
by the patient
88 ESIS was introduced in INDIA? 1947 1948 1946 1949 2 17
89 CGHS was introduced in INDIA? 1954 1950 1960 1958 1 17
Central Government Central Government
90 What is the full form of CGHS? Option 1 is correct None of the above 3 17
health Scheme Hospital Scheme
Rs15/ per month - to 150/- Rs 20 per month to Rs.150
91 IN CGHS scheme contribution from employees is Rs 15/- per month Rs150/- per month 3 17
per month per month
National Rural health National Pharmaceuticals
92 Who is the regulator of Pharmaceutical industry? Option 1 Option 2 4 17
mission Pricing Authority
Insurance Web
93 Who all are providing services as intermediaries among the health insurance market? Insurance Agent Third Party Administrators All of the above 4 17
Aggregators
Whose wages up to Whose wages up to
94 People who covered under ESIS scheme? Whose wages up to 5,000/- None of the above 1 17
15,000/- 10,000/-
95 When was the first standardised health insurance product was launched in India? 1986 1987 1988 1989 1 17
96 Drinking water,Sanitation and nutrition are covered under factors? Genetic factors Environmental factors Lifestyle factors None of the above 3 17

97 Primary healthcare centres are set up by Only Government players Only Private Players Both of the above None of the above 3 17

98 IGMS has been created by IRDAI SEBI ICICI SBI 1 3

99 COPA act was passed in year 1985 1986 1987 1982 2 3
100 For registering complaint in consumer court fee required is Rs 500 Rs 600 Rs 800 No fees 4 3
101 Limit of district consumer court 20 lac 30 lac 25 lac 60 lac 1 3
102 Limit of state consumer court 30 lac 50 lac 1 cr 2cr 3 3
103 for complaint amont of rs116 lac one can approach district consumer court state consumer court national commission none of these 3 3
104 Complaint should be made writing verbal via phone none of these 1 3
105 Which of the following resolves dispute by acting as mediator between Customer and Insurer district consumer court state consumer court national commission ombudsman 4 3
106 Recommendation should be made by the Ombudsman within how many days. 1 month 2 month 1 year 15 days 1 3
Time limit allotted for customer and insure to repond the recommendation of Ombudsman
107 20 days 21 day 13 days 15 days 4 3
from receiving date
108 Time limit for Award 1 mth 2 mth 3 mth 6 mth 3 3
109 The premium printed on policy document is office premium risk premium new premium net premium 1 11
110 Life insurance company gives rebates on premium that is payable on high sum assured Mode of premium both of these none of these 3 11
BONUS LOADING AND
111 Which of the following elements gives net preimum MORTALITY AND INTEREST MORTALITY AND EXPENSE none of these 1 11
INTEREST
Surplus is net of Asset and Surplus is net of liability Surplus is net of asset and
112 Which of the following is correct none of these 1 11
Liability and bonus MORTALITY CHARGE

113 Which of the following is not a way to calculate value of asset Book Value Market value Discounted Present Value Metric Method 4 11

114 Which of the following is not a feature of UILP PRICING UNITISING INVESTMENT LINKAGE OPAQUE 4 11
115 Which of the following is not a method for surplus distribution bonus contribution method book value method all are correct 3 11
116 To arrive at Gross premium what is added to Net Premium mortality interest Loading none of these 3 11
117 What is the price paid by a policy holder to purchase an insurance policy rebate premium expense loading 2 11
118 As per IRDA Micro insurance regulations , 2005 maximum SA of Micro insurance policy can be 30000 40000 20000 56000 1 19
119 what is maximum age of limit in Jan Arogya Bima Policy 70 73 80 65 1 19
120 Is Serivice Tax payable on Premium of Jan Arogya Policy no yes I don’t know none of these 1 19
Premium of Jan Arogya Policy , Universal Health Insurance qualifies for tax benefit under
121
section
Section 80 D section 80 DE section 80 CC Section 80Y 1 19 age limit
122 Minimum number of families that has to be covered in UHIS 100 120 23 65 1 19

123 Benefits available in UHIS secheme Medical Reimbursement Personal Accident Cover Disability cover All the three 4 19
Rashtriya Swasthya Bima Rashtriya Swasthya
124 RSBY Rashtriya Swasthya Yojna Rashtriya Bima Yojna 1 19
Yojna Benami Yojna
125 Premium is paid in RSBY by Central Govrt State Govt both of these none of these 3 19
126 Cost of Smart Card of RSBY is borne By benefeciary and it is equal to 55 Rs 60 rs 61 Rs 24 Rs 2 19
127 Entry age of Pradhan Mantri Suraksha Bima Yojna is 18 to 50 yrs 0yrs to 50 yrs 18yrs to 70 yrs no age limit 3 19
128 Beginning and policy end date of Pradhan Mantri Suraksha Bima Yojna is 1st june to 31 st may 2 19
129 What is primary KYC in Pradhan Mantri Suraksha Bima Yojna Pan card Voter id aadhaar card Ration card 3 19
130 what is premium per annum per member Rs 12 Rs13 Rs11 Rs10 1 19
Pradhan Mantri Jan Dhan
131 Which of the following scheme has world record in bank account opening during one week Saving Acount Post office MIS ICICI Bond 2 19
Yojna
Permanent partial
132 Types of disability covered in Personal Accident and Disability cover is Permanent total Disability Temporary total disability All of these 4 19
disability
133 Personal and Accident Disability Plan is which type of plan Benefit Plan contribution plan both of these none of these 1 19

134 Broken Bone Policy and compensation for loss of daily activites provide covers against listed fractures listed illness illness none of these 1 19

135 Types of Overseas plan available are Business and holiday plans Study plans Employment plans All of these 4 19
Executives who fly
People who go on forign Players who travel once in
136 Corporate Frequent Travellers plan is suitable for overseas many times any one 1 19
tourism once in 5 years a year
during the year.
137 Mediclaim was intoduced in year 1986 1984 1985 1999 1 19
138 Health Insurance Classification includes Indemnity Cover Fixed Benefit Cover Critical illness cover All of these 4 19
139 Excess clause in Domiciliary Hospitalization is of 3 to 5 days 1 day 6 day 2 day 1 19
140 Sum assured of Senior Citizen policy vary from Rs 50000 to 500000 Rs 50000 to 1,50000 Rs 30000- 400000 Rs 50000 - Rs 250000 1 19
Within 15 days from Within 6 months from Within 1month from Within 3 months from
141 What is maximum time to pass an award by Ombudsman? customer complaint customer complaint customer complaint customer complaint
4 2

The insurer shall comply insured should

with the award and send a acknowledge the receipt
The award should be made Insurance Ombudsman will
written intimation to the of the award in full as a
142 Which of the following is not true with regards to Ombudsan within a period of 3 not accept cases less than 4 2
Ombudsman within 15 final settlement within one
months 50 Lakhs
days of the receipt of such month of the receipt of
acceptance letter such award

Making the Customer

143 Which of the following Element help in reinforcing and Promoting Trust with Clients. Over Confidence Communication Good First Impression 2 2
Realize his mistake
One of the most important set of skills that an agent or service employee needs to posses, for
144 Soft Skills Trust Service None of the above 2 1
effective performance in the work place
145 Which refers to the ability to perform the promised service dependably and accurately Reliability Responsiveness Assurance Empathy 1 2

146 If the dispute amount is 18 Lacs than in Grievance Redressal should Approach National Commission State Commission District Forum None of the above 3 2
Which Redressal Agencies would handle consumer disputes amounting between Rs. 20 Lakhs to
147 District Forum State Commission National Commission Ombudsman 2 2
100 Lakhs
 Which of the following consumer disputes redressal agencies has juridiction to entertain
148 District Forum State Commission National Commission All of the above 3 2
complaints, where claim amount is exceed 150 Lacs
Paying attention to the
speaker; giving an Simultaneously doing
149 Active Listening involves Debating on every point None of the above 1 2
occasional nod and smile other work
and providing feedback
being extremely
150 Which among the following is not an element of active listening Paying good attention empathetic listening Responding Appropriately 2 2
judgemental
Which of the below will be the most appropriate option for a customer to lodge an insurance
151 Insurance Ombudsman State Commission National Commission None of the above 1 2
policy related complaint
152 Which is not an indicator of service quality Reliability Cleverness empathy None of the above 2 2

153 Which is reflected in the caring attitude and individualised attention provided to customers Empathy Responsiveness Service None of the above 1 2

154 Which of the below elements promote trust Attraction Communication Being Present All of the above 4 2
by being on time, showing
155 In Customer Relationship the first impression is created By being confident by being on time by showing interest interest and being 4 2
confident
Presenting yourself Being open, confident and
156 Which of the below tips are useful for making a good first impression Being on time always All of the above 2 2
appropriately positive
Making adequate
Maintaining confidentiality
disclosures to enable the Placing self-interest ahead Placing client's interest
157 Which among the following is not a characteristic of ethical behaviour of client's business and 3 2
clients to make an of client's interests ahead of self interest
personal information
informed decision
Ethical behaviour helps in
Unethical behaviour helps
158 Select the correct Statement: developing trust between Both of the Above None of the above 1 2
in closing the sale.
the agent and the insurer
The Practice of charging interest to borrowers who pledge their property as collateral but
159 Mortgage On Loan Both of the Above None of the above 1 10
leaving them in possession of the property is called
To Provide Financial
It helps during Loan
160 What is the objective behind Mortgage Redemption Insurance Protection for Home Loan Both of the Above None of the above 1 10
Sanction
Borrowers
Mortgage Redemption Mortgage Redemption Mortality Redemption
161 What is the full form of MRI None of the above 1 10
Insurance Investment Insurance
162 Which Life Insurance pays off a Policyholders mortgage in the event of the persons death General Insurance Policy Health Insurance Policy MRI Policy All of the above 3 10

163 Key Man Insurance is used for the: Business Protection Loss Protection Both of the Above None of the above 1 10

164 Key Mam Insurance is Linked to: Business Profitability Key Person's own Income Both of the Above None of the above 1 10

Who is directly associated

with the business whose Any Employee of the
165 Who can be a Key Man? Company's Customer None of the above 1 10
loss can cause financial Company
strain to the business

166 Who can be a Key Man? Director of the Company Company Partner Key Sales Person All of the above 4 10
Married Women Property Married Women Married Women Property
167 What is the full form of MWPA None of the above 1 10
Act Proprietery Act Association
168 Who are the beneficiaries in MWPA Wife Children Wife and Children both None of the above 3 10

169 Which Section of MWPA'1874 provides the benefits under a life Insurance Policy Section 5 Section 6 Both of the Above None of the above 2 10

170 Which types of policies are beyond the control of Court attachments and Creditors Policies under MWPA All types of Policies Both of the Above None of the above 1 10
Proposer's Address and
171 Which are the Elements of a Proposal Proposer's Name in Full The entitlements Assignment Forms 4 18
Contact Details
172 Proposer Form is to be filled by whom Proposer/Life Insured Nominee Agent None of the above 1 18
173 Who acts as an intermediary An Agent Proposer Employee None of the above 1 18
 As per guidelines, an insurance company has to process an insurance proposal within how many
174 7 days 15 days 30 days 45 days 2 18
days.
Sec 64 VB of Insurance Act Sec 64 VA of Insurance Act Sec 64 VA of Insurance Act Sec 64 VB of Insurance Act
175 Which section of Insurance Act 1938 describes the Payment of Premium in Advance 1 18
1938 1938 1939 1939
The Risk may be assumed
The Risk may be assumed
In case the premium payment is made by cheque, then which of the below statement will hold on the date on Which the
176 on the date on which the Both of the Above None of the above 1 18
true? cheque is deposited by the
cheque is posted
insurance co.

A warranty is a condition
expressly stated in the
A Warranty is a condition A Warranty is a condition If a Warranty is breached,
policy and communicated
177 Which of the below statement is correct with regards to a warranty which is implied without expressly stated in the the claim can still be paid if 2 18
to the insured separately
being stated in the policy policy it is not material to the risk
and not as part of the
policy document

178 How can a customer make the changes in his policy at the time of issuance Through Endorsement By giving a letter by email None of the above 1 18
If certain terms and conditions of the policy need to be modified at the time of issuance, it is
179 Warranty Condition Endorsement Alteration 3 18
done by setting out the amendments through……….
Purpose of Insurance
180 What are the KYC Requirements Photo & Address Financial Status All of the above 4 18
Contarct
Probability of loss and Probability and impact of Impact of loss and object
181 What is the cost of risk directly proportional to? Impact of the loss alone 3 1
object of insurance the loss of insurance

182 Origin of Modern Insurance Business can be Traced Lloyds Bottomary Malhotra Committeee Hubner 1 1
183 Which among the following is a method of risk transfer? Bank FD Insurance Equity shares Real estate 2 1
Ramesh is working a professional and has taken life insurance for 50 Lakhs. This is an example of
184 Risk Retention Risk Avoidance Risk Financing Risk Trasfer 4 1
______
Out of 400 houses, each valued at Rs. 20,000, on an average 4 houses get burnt every year
185 resulting in a combined loss of Rs. 80,000. What should be the annual contribution of each Rs.100/- Rs.200/- Rs.80/- Rs.400/- 2 1
house owner to make good this loss?
186 The measures to reduce chances of occurrence of risk are known as _____. Risk retention Loss prevention Risk transfer Risk avoidance 2 1
sharing the losses of many sharing the losses of few one sharing the lossess of sharing the lossess through
187 which of the below option best described the process of insurance 2 1
by few by many few subsidy
Ram paid Rs. 5000 to LIC through an Agent and LIC promised to pay Rs. 10 Lac to Ramesh Family
188 Ram's Family LIC Agent Ram 4 1
on Ramesh's death. Who is the Insured?
189 Which of the below is a negative way to handle the risk Risk Avoidance Risk retention Risk reduction Risk Transfer 1 1
190 Self Financing is also a way to handle the risk , this is also known as Risk Avoidance Risk retention Risk reduction Risk Transfer 2 1
191 Which among the following cannot be termed as an assets Car Human Life Air House 3 1
192 Why insurance maintains reserve fund Protection Meet Eventuality Liabilities None of the above 2 1
Chinese Traders in ancient days would keep their goods in different boats or ships sailing over
193 Mandotory by Govt Loss Reduction Risk Classification Risk Diversification 2 1
the treacherous rivers because
The origins of modern commercial insurance business as practiced today can be traced to Amicable Society for a
194 Lloyd’s Coffee House Babylonian Traders Malhotra Committee 2 1
___________? Perpetual Assurance
Bombay mutual assurance Oriental life insurance
195 Which is the first indian insurance company Triton insurance comp National insurance comp 1 1
comp comp
196 In quality of service,speed,accuracy and attitude are indicators of which measures Reliabilty Responsiveness Assurance Empathy 2 2

197 ___________ relate to one’s ability to interact effectively with other workers Hard skills Soft skills Questioning skills Negotiating skills 2 2
Putting yourself in the
shoes of the customer and Analyzing the customers to sympathize with the
To agree to everything the
198 Empathetic Listening means ____ understanding the experience in detail and customer's 2 2
customer says
experience from his point making notes currensituationt
of view
199 In quality of service,speed,accuracy and attitude are indicators of which measures Reliabilty Responsiveness Assurance Empathy 2 2
 Which of the below consumer grievance redressal agencies would handle consumer disputes
200 District Forum State Commission National Commission Zilla Parishad 2 3
amounting between Rs. 20 lakhs and Rs. 100 lakhs?
201 If a policyholder wants a compensation of Rs 50 lacs in grievance where shall he approach National commission State commission District commission IRDA 2 3

Insurer has to respond to Insured does not accept

Insurance Ombudsman
The limit for insurance the award given by the award and does not
202 Among the following ,which is not true regarding Insurance Ombudsman takes 3 months of time for 4 3
ombusdsman is 20 lacs Insurance Ombudsman in initimate the Insurance
declaring award
15 day Ombudsman.

203 Minimum qualification required for insurance agent is _______ pass. Graduate 10th Post-graduate 7th 2 4
An insurer wants to apply for a license of an Insurance agent to the designated person. Which
204 Form VA Form VB Form VC Form VD 1 4
form should be used in this regard?
If an agent is found guilty of criminal misappropriation the designated person Take some fees from the
205 Cancel the licence Issue a duplicate licence Renew the existing licence 1 4
will ____________. agent
If an Applicant is applying for life insurance agency forfirst time how many complete hours
206 50 100 30 25 1 4
training required to become an insurance agent?
207 Moral hazard by health insurance companies can result in _________. Community rating Adverse selection Abuse of health insurance Risk pooling 2 4
If a person wishes to apply Life insurance to the designated person, application form should be A. FORM IRDA – Agent -
208 FORM IRDA – Agent - VB FORM IRDA – Agent - VA FORM IRDA – Agent – VZ 2 4
in form VC
209 For an insurance policy nomination is allowed under _________ of the Insurance Act, 1938. Section 10 Section 38 Section 39 Section 45 3 4

210 who controls and regulates the insurance business india IRDA SEBI RBI insurance act 1938 1 4
211 For Getting Life Insurance agency how many hours of Practical training is required 50 75 35 25 1 4

212 Which of the below party is not eligible to enter into a life insurance contract? Business owner Minor House wife Government employee 2 5
When is it essential for insurable interest to be present in case of life insurance I) At the time of
213 I is correct II is correct I and II are correct I and II are incorrect 1 5
taking out insurance II) At the time of claim
Shymal falls off a horse and breaks his back. He lies there in a pool of water and contracts
214 Pneumonia Broken back Falling off a horse Surgery 3 5
pneumonia. He is admitted to the hospital and dies because of pneumonia.

At the time of taking out At the time of taking policy insurable insurance not
215 For a Property insurance policy, insurable interest need only exist at what time? The date a claim occurs. 3 5
insurance and at the time of claim required

216 Which feature of life insurance contract does not allow a minor to enter into the contract Offer and Acceptance Consensus ad Idem Free Consent Capacity of the parties 4 5

When is the duty to disclose a material facts in an insurance contract:i) At the time of Taking the
217 i correct i&ii correct ii&iii correct I,ii&iii correct 2 5
policy ii) At the time of revival iii)At the time of Renewal premium

218 Ramesh Shows his age less than actual to lower his premium , this is an example of Coercion Influence Misrepresentaion Mistake 3 5
Insured can void the Insurer may void the
219 Hiding any material fact to insurer may result in no affect on policy None of Above 2 5
contract contract
220 Which of the below party is not eligible to enter into a life insurance contract? Business owner Minor House wife Government employee 2 5

Disclose all material facts

Lying about known
like age, occupation, family Not to disclose material
221 What do you understand by principle of “Uberrima Fides”? Paying premium on time medical conditions on an 1 5
history etc. on an facts.
insurance proposal form
insurance proposal form

Find out the proximate cause for death in the following scenario?Ajay falls off a horse and
222 breaks his back. He lies there in a pool of water and contracts pneumonia. He is admitted to the Pneumonia Broken back Falling off a horse Surgery 3 5
hospital and dies because of pneumonia.
 Facts which are important
in deciding whether to
Facts which are not Facts which are influencing Facts which are harmless
223 MATERIAL FACTS means ________. accept the risk & if so , the 1 5
influencing the health the Occupation for a person
rate of premium and the
terms and conditions
Ramesh uses his
Ramesh signs a contract Ramesh threatens to kill Ramesh provides false
professional standing to
224 Which among the following is an example of coercion? without having knowledge Mahesh if he does not sign information to get Mahesh 2 5
get Mahesh to sign a
of the fine print the contract to sign a contract
contract
225 Which among the following cannot be insured by Ramesh? Ramesh's House Ramesh's Spouse Ramesh's Friend Ramesh's parents 3 5

Insurance contracts have Gambling contractshave

In insurance the insured There is loss in Insurance
insurable interest but insurance interest while
226 What is the difference between Gambling and Insurance? gets profit and in Gambling Contracts and Profits in 2 5
gambling contracts do not insurance contracts have
the person gets loss Gambling Contracts
have insurance interest insurable interest

Home Insurance claim is

Yes he can as he has
Ramesh purschases a house and takes House insurance, after 2 months he sells the house. After No he cannot as he has Though House he sold he given to person who claims
227 pursched the home 2 5
six months the house burns, can Mahesh claim for this house through home insurance? lost ownership of house still has Home Insurance first irrespective of the
insurance policy
ownership
Ramesh prepares a duplicate age proof with lower age to get the benefit of lower premium,This
228 Fraud Coercion Misrepresentation Mis Interpretation 1 5
can be treated as
229 Which of the below mentioned insurance plans has the least or no amount of saving element? Term Insurance Plan Endowment plan whole life plan Money back plan 1 6
Safe and Secure
230 Which of the below is not an advantage of cash value insurance contracts? Inculcates saving discipline Lower yields Income tax advamtages 3 6
Investment
Returns subject to
Low accumulation in
231 Which of the below is an advantage of cash value insurance contracts? corroding effect of Lower yields Secure investment 4 6
earlier years
inflation
232 which of the following is used in the Priciple of Risk pooling? Uncertainity Mutuality Probability Indemnity 2 6

233 Which of the below cannot be categorised under risks typically faced by Human Beings? Dying too early natural wear and tear Living with disability Dying too young 2 6

Life Insurance Policies are Life Insurance Policies are

contracts of indemnity contracts of assurance In case of general Certanity of risk event in
234 Which of the below statements are true? while general insurance while general insurance insurance the risk event case of general insurance 2 6
policies are contracts of policies are contracts of protected against is certain increases with time
assurance indemnity

235 Who devised the concept of HLV? Dr. Martin Luther King Warren Buffet Prof. Hubener George Soros 3 6
Economic loss of a family
Kind of property or asset Value of human life based Value of human life based
236 Which statement is incorrect about HLV? would suffer if the person 2 6
that earns an income on current earnings on net future earnings
dies
237 Which of the below cannot be categorised under Risks Dying too Young Dying too Early Natural Wear and Tear Living with Diaability 3 6

For investment of fund and For protection of

238 What is the purpose of "Reserve" for insurance company For Bonus Calculation To meet future obligation 2 6
earn interest Policyholders
Mr. Kailash earns Rs. 3,20,000 a year and spends Rs. 60,000 on himself. The net earnings for his
239 family would lose if he die prematurely, would be 32,50,000 38,00,000 28,00,000 32,00,000 1 6
Rs. 2,60,000 per year. If the rate of interest is 8% ,what is the HLV for Kailash
240 Which among the following cannot be termed as an asset? Car Aeroplane Home Air 4 6
241 Who proposed the concept of HLV Dr. Luther King Warren Buffet prof Hubener R N Malhotra 3 6
low accumulation in early
242 which of the following is the advantage of cash value insurance contract lower yield secure investment 2 6
year
243 Which of the below is not an element of the life insurance business? Asset Risk Principle of mutuality Subsidy 4 6
244 Life insurers are required to maintain ___________as a condition for writing the business Goodwill Marketshare Statutory Reserve Credit Note 3 6

245 Which among the following can be categorised under transactional products? Bank deposits Life insurance Shares Bonds 1 7

Greater the investment Greater the investment Greater the investment

246 What is the relation between investment horizon and returns? Both are not related at all horizon the larger the horizon the smaller the horizon more tax on the 2 7
returns returns returns
Giving an aparment for Buying Shares for
247 Which of the following is considered as long term financial goal Buying House family Vacation 3 7
rent retirement purpose
As soon as one gets his
248 When is the best time to start financial planning? Post retirement After marriage only after one gets rich 2 7
first salary
__________ is a rise in the general level of prices of goods and services in an economy over a
249 Deflation Inflation Stagflation Hyperinflation 2 7
period of time.
250 Which of the below is not a strategy to maximise discretionary income? Debt restructuring Loan transfer Investment restructuring Insurance purchase 4 7

251 An individual with an aggressive risk profile is likely to follow wealth _______investment style. Consolidation Gifting Accumulation Spending 3 7
There is a 3 years old baby name is Madhuri her father is earning good income what types of
252 Short Tearm Goals Long Term Goals Medium Term Goals None of these 2 7
goal will be suitable for his daughter?
253 Which of the following decisions is related to "Interms of Savings for Future Needs" Investment in GOLD Parting With Liquidity Purchase of Shares None of the Above. 2 7
Giving an aparment for Buying Shares for
254 Which of the following is considered as long term financial goal Buying House family Vacation 3 7
rent retirement purpose
As soon as one gets his
255 When is the best time to start financial planning? Post retirement After marriage only after one gets rich 2 7
first salary
__________ is a rise in the general level of prices of goods and services in an economy over a
256 Deflation Inflation Stagflation Hyperinflation 2 7
period of time.
257 Which of the below is not a strategy to maximise discretionary income? Debt restructuring Loan transfer Investment restructuring Insurance purchase 4 7

258 Which is a wealth accumulation product Shares FD Govt Bond Life Insurance 1 7
tax reduction through
259 What is the purpose of tax planning tax evasion pay tax on time Not filling ITR 3 7
approved investment
Suppose you have a 2 year old daughter Madhuri. You wish to have enough money to pay her Intermediate financial
260 Long term financial goal Short term financial goal Personal financial goal 1 7
college education. You need to achieve which of the following? goal
As soon as you get your
261 When is the best time to start financial planning? After marriage Retirement After one get rich 3 7
first salary
Postponement of
Risk retention and reduced Spending and
262 Savings can be considered as a composite of two decisions. Choose them from the list below. Gifting and accumulation consumption and parting 4 7
consumption accumulation
with liquidity
263 which among the following can be categorised under contigency product bank deposits life insurance shares bonds 1 7
The accumulated value from where annuity payments for meeting the income needs after
264 Consolidation Deposits Savings Corpus 4 7
retirement will come to annuitant is known as _______.
Reduced tax burden as a
Full advantage of tax
265 Which among the following is not an objective of tax planning? Maximum tax benefit result of prudent Tax evasion 3 7
breaks
investments
266 During which stage of life will an individual appreciate past savings the most Post retirement Childhood Teenage Just married 1 7
As soon as one gets his frst
267 When is the right time to start financial planning? Post retirement After marriage Only after one gets rich 2 7
salary
268 One of the following is Considered as Contingency Bonus Received Compensation Insurance Profit from Business 3 7

current worth of present current worth of future

sum of money or stream of sum of money or stream of Accurate present value of
269 Present value of money means- Present value of an asset 2 7
cash flows given in a cash flows given in a an asset
specified rate of return specified rate of return

270 Which of the following decisions is related to "Interms of Savings for Future Needs" Investment in GOLD Parting With Liquidity Purchase of Shares None of the Above. 2 7
 There is a 3 years old baby name is Madhuri her father is earning good income what types of
271 Short Tearm Goals Long Term Goals Medium Term Goals None of these 2 7
goal will be suitable for his daughter?
272 _________ life insurance pays off a policyholder's mortgage in the event of the person's death. Term Mortgage Whole Endowment 2 8
Mortgage Redemption
273 Which of the below is an example of an endowment assurance plan? Credit Life Insurance Plan Money Back Plan Whole life Plan 3 8
Plan
274 The Name for Participating policy Bonus Policy Dividend Policy High Profit policy With profit policy 4 8
Mortage Redemption
275 Which of the following is a Credit return policy Health Insurance Term Insurance Variable life insurance 3 8
Insurance
In decreasing term In decreasing term Mortage redemption
Credit Life Insurance is an
insurance the premium insurance the premium insurance is an application
276 Which among the following is not true regarding Decreasing Term Insurance? application of Decreasing 2 8
remains the same through decreases through the of Decreasing Term
Term Insurance
out the term of the policy term of the policy Insurance

____ policies are examples of policies which have both term insurance and savings component
277 Term Insurance ULIP Policy Whole Life Insurance Money Back Policy 3 8
and maturity amount is paid out after certain period of time
In ______ policies the maturity amount given after deducting the periodic benefits already
278 Term Insurance ULIP Policy Whole Life Insurance Money Back Policy 4 8
given to the insured
279 Which among the following is an intangible product? Car House Goodwill Soap 3 8
Term with return of
280 Credit life insurance is a type of __________. Endowment plan Decreasing term plan Whole life plan 2 8
premium
281 ……… is not a tangible good house insurance mobile pair of jeans 2 8
Provide financial
Facilitate cheaper Protect value of the Evade eviction in case of
282 What is the objective behind Mortgage Redemption Insurance? protection for home loan 2 8
mortgage rates mortgaged property default
borrowers
_____________life insurance pays off a policyholder's mortgage in the event of the person's
283 Term Mortgage Whole Endowment 2 8
death.
Ramesh takes 50L SA with 25yrs term Company pays rest SA & bonus at maturity what type of
284 Death Claim Survival benefit Loan Amount Maturity claim 2 8
payment he got during the term
285 Using the conversion option present in a term policy you can convert the same to __________. Whole life policy Mortgage policy Bank FD Decreasing term policy 1 8

Financial planning is taking

Financial planning is a Financial planning is a
action to turn one’s goals
286 What is financial planning smart way to achieve life process of identifying one’s All of the above Option4 7
and desires into
goal in future life’s goals
Reality

287 Type of Goal in financial planning Medium Term Goal Long Term Goal All of the above None of the above Option4 7
288 Buying a LCD TV or Family vacation is ____________________ Term goal Medium Term Goal Short Term Goal Long Term Goal Option2 7
289 Buying a House or vacation aboard is _____________________ Term goal Medium Term Goal Short Term Goal Long Term Goal Option1 7
290 Child education & marriage is _________________________ Term goal Medium Term Goal Short Term Goal Long Term Goal Option3 7
291 Age from 20 – 25year is ____________________ Earner Partner Learner Provider Option3 7
292 What are the phases of an individual life Working Student Option a & B All of the above Option4 7
Its linked to specific life
293 What do you understand by specific transaction need? Its linked to no one Its linked to other need None of the above Option2 7
events
294 An individual would typically have a mix of Need to save Need to insure Need to invest All of the above Option4 7
Contingencies
295 Savings & Investments indeed lead to creation of some wealth is ________________________. Individual need Wealth accumulation All of the above Option3 7
arrangement
296 What are the individual risk profiles Secured & Progressiv Aggressive & Conservative Option a & B None of the above Option3 7

Which among the following would you recommend in order to seek protection against Transactional products like
297 Insurance Shares Debentures Option1 7
unforeseen events? bank FD’s
Risk management & Retirement planning &
298 What are the elements of financial planning Option a & b All of the above Option3 7
Gifting Profiling
As soon as one gets his
299 When is the best time to start financial planning? Post retirement After marriage Only after one gets rich Option2 7
first salary
 In CASH PLANNING, the first step here is to __________________________ and performs an
300 Analyze income Prepare a budget Inflow of account None of the above Option2 7
analysis of current Income and expenditure flows
301 Insurance planning is basically consist of Health Insurance Life Insurance Insurance for one’s assets All of the above Option4 7
Risk tolerance & Time
302 What are the investment parameters Marketability & Liquidity Diversification All of the above Option4 7
horizon
Debentures or other
303 In India investment vehicle can be ULIP, MF & FD Option a & b only None of the above Option3 7
securities
304 What are the different phases of Retirement? Accumulation Conservation Distribution Option a, b & c Option4 7
Reduced tax burden as a
Full advantage of tax
305 Which among the following is not an objective of tax planning? Maximum tax benefit result of prudent Tax evasion Option3 7
breaks
investments
To prevent anti-selection
To classify risks and ensure
306 What is the purpose of underwriting? or selection against the None of the above Option a & b Option4 15
equity among risks
insurer
Anti-selection is the tendency of people, who suspect or know that their chance of experiencing
307 TRUE FALSE Option2 15
a loss is low
The term _____________ refers to the process of evaluating each proposal for life insurance in
308 terms of the degree of risk it represents and then deciding whether or not to grant insurance Risk classification Selection of risks None of the above Option2 15
and on what terms
309 Risk classification in life insurance Declined lives Standard lives None of the above Option a & b Option4 15
Underwriting department
310 Selection process may be said to take place at 2 levels Field level/Primary level Both of the above None of the above Option3 15
level
311 What are the methods of underwriting? Judgement Method Assumption Method Numerical Method Option a & c Option4 15
Acceptance at ordinary
312 Underwriting decisions can be any of following Acceptance with an extra Decline or postpone Option a , b & c Option4 15
rates
A person suffering from Housewife with no income
313 Which of the following cases is likely to be declined or postponed by a life insurer? Healthy 18 year old An obese person Option3 15
AIDS of her own
Medical examination Medical examination not
314 What do you understand by NON MEDICAL underwriting? None of the above Option2 15
conducted conducted
315 Age proof can be of Standard or Non Standard Medium standard Option a & b None of the above Option1 15

316 Types of occupational hazards Moral Health Accident All of the above Option4 15

A person drinking copious

Stunt artist dies while Insured defaulting on Proposer lying on policy
317 Which of the following is an example of moral hazard? amounts of alcohol Option2 15
performing a stunt premium payments document
because he is inured

318 Medical factors that influence an Underwriter s decision Family History Past History Personal History Option a & c Option4 15
Certain diseases can be
Rich parents have healthy Poor parents have Family environment is a
319 Why is heredity history of importance in medical underwriting? passed on from parents to Option2 15
kids malnourished kids critical factor
children
Decide acceptability of Customer relations
320 Which of the following denotes the underwriter’s role in an insurance company? Process claims Product design architect Option2 15
risks manager
Risk acceptance at
321 Which of the following is not an underwriting decision? Declinature of risk Postponement of risk Claim rejection Option4 15
standard rates
322 Which of the following is not a standard age proof? Passport School leaving certificate Horoscope Birth certificate Option3 15

323 Which of the following condition will affect a person’s insurability negatively? Daily jogs Banned substance abuse Lazy nature Procrastination Option2 15

Under what method of underwriting does an underwriter assign positive rating points for all
324 Judgment Arbitrary Numerical rating Single step Option3 15
negative or adverse factors (negative points for any positive or favourable factors)?
Under risk classification, ___________ consist of those whose anticipated mortality corresponds
325 Standard lives Preferred risks Sub-standard lives Declined lives Option1 15
to the standard lives represented by the mortality table.
Life Insurance
326 Which among the following is an intangible product? Car House Life Insurance Soap 8
3
Protection
327 What does "Insurance" signifies in Life Insurance? Protection Indemnity Reimburstment Cashless 8
1
 Non
328 What does "Participating in Profit means in traditional plans? Guaranteed Benefits Non Guaranteed Bonus Guaranteed Bonus Maturity benefit Guaranteed 8
Bonus 2
through an
329 How Rider can be opted? written application verbally through an endorsement Non of the above endorsement 8
3
Both Maturity & Death Only Death
330 what is Term Insurance? Only Death Benefit Only Maturity Benefit Maturity benefit + Bonuses 8
Benefit Benefit 1
Maturity
Both the
331 What is Pure Endowment? Maturity Benefit Death Benefit No Benfits Benefits 8
Benefits(Maturity/Death)
1
332 When MWP Act was Incorprated? 1816 1857 18741 1956 1874 3 8
The premium paid for whole life insurance is _____________ than the premium Higher
333 Higher Lower Equal Substantially higher 8
paid for term assurance. 1
___________ life insurance pays off a policyholder's mortgage in the event of Mortgage
334 Term Mortgage Whole Endowment 8
the person's death. 2
The ________ the premium paid by you towards your life insurance, the
Higher,
335 ________ will be the compensation paid to the beneficiary in the event of your Higher, Higher Lower, Higher Higher, Lower Faster, Slower 8
Higher 1
death.

Term
insurance can
be bought as
Term insurance plans Term insurance can be There is no provision in a
All term insurance plans a stand-alone
come bought as a stand-alone term insurance plans to
336 Which of the below option is correct with regards to a term insurance plan? come with a built-in policy as well 8
with life-long renewability policy as well as a rider convert it into a whole life
disability rider as a rider with
option with another policy insurance plan
another
policy
3

Remain
337 In decreasing-term insurance, the premiums paid ____________ over time. Increase Decrease Remain constant Are returned constant 8
3
Using the conversion option present in a term policy you can convert the same Whole life
338 Whole life policy Mortgage policy Bank FD Decreasing term policy 8
to __________. policy 1
Protection
against the
loss of
Protection against the loss
economic
of economic value of an
339 What is the primary purpose of a life insurance product? Tax rebates Safe investment avenue Wealth accumulation value of an 8
individual’s productive
individual’s
abilities
productive
abilities
3

An individual
who needs
An individual who needs An individual who needs An individual who needs An individual who needs
insurance but
340 Who among the following is best advised to purchase a term plan? money at the end of insurance and has a high insurance but has a low an insurance product that 8
has a low
insurance term budget budget gives high returns
budget
3
 Premium
Mortgage redemption amount
Death benefit amount Premium amount
Which of the below statement is incorrect with regards to decreasing term Premium remains level plans are an example of decreases
341 decreases with the term of decreases with the term of 8
assurance? throughout the term decreasing term assurance with the term
coverage coverage
plans of coverage
2

It has both a
death benefit
It has both a death benefit
Which of the below statement is correct with regards to endowment assurance It has a death benefit It has a survival benefit as well as a
342 as well as a survival It is similar to a term plan 8
plan? component only component only survival
component
component
3

Mortgage Redemption Money Back

343 Which of the below is an example of an endowment assurance plan? Credit Life Insurance Plan Money Back Plan Whole Life Plan 8
Plan Plan 3
bonus once
344 TRUE FALSE True 1 8
announced becomes a guarantee.