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A fresh set of 50 random questions is generated every time you open this page and every time you refresh it. The form will be autosubmitted at end of 60 minutes after page open/refresh. For each of the following multiple choice questions, choose the most appropriate answer : 1. Nitin is ready to submit his proposal for insurance after the need analysis. When his agent asks him to fill in the proposal form, seeing so many questions bothers him. What should bc the agent's most appropriate approach in this case? A. The agent should note down all personal information regarding Nitin on paper and let him only sign the proposal form B. The agent should explain that it is important for the underwriting purpose to provide all necessary information mentioned in the proposal forin and educate the proposer to fill in the correct details C. The agent should fill in the form in presence of the proposer after explaining all the questions and then make the proposer sign on the form D. The agent can ask somebody from his family to fill in the correct details and sign on behalf of Nitin 2. Health insurance policyholder takes treatment in a hospital which doesn't have cashless facility. How will the policy holder get benefited? A. A Need to spend and get claim frorn the insurer B. Need to add that hospital as TPA C. Cannot claim D. Need to switch to the another insurer 3. In case of Widowed woman financial planning should ensure : A. Estate planning B. Retirement C. Investment Management D. ULIP 4. A person receives Discounted Claim in context to : A. profit in policy B. Duration of policy C. Timing of maturity D. Interest 5. Rishi is about to take money back policy. At what stage he is allowed to make nomination under the nomination facility of the policy? A. At the outset of the policy B. At the time of policy anniversary C. At the time of outset and last policy anniversary D. At any time 6. A claim under a term insurance policy is submitted by an individual who has substantially understated his age. As an alternative to paying out the full claim the insurer is most likely to take what action? A. Deduct the underpaid premiums from the sum insured B. Make the policy paid up C. Pay out the surrender value D. Reject the claim on the grounds of misrepresentation 7. In life insurance policy it is later found that the person doesn't have insurable interest then the'contract is A. Expired B. Reviewed C. Void D. Valid 8. Based on which criteria the qualification of agent is determined? A. Address of the agent B. Domicile status C. City/town of appointment D. Caste 9. Main reason for premium discount for an annual premium payment under life insurance policy is because of issues related to A. Administrative cost B. Bonus calculation C. Medical expenses D. Mortality risk 10. Ramesh proposes life insurance policy for his son. What is the status of Ramesh in this policy? A. Proposer B. Life Insured C. Nominee D. Appointee 11. Generally insurance companies do not hold the premium in case of fraud or misrepresentation. However, due to which of the following circumstanceses the insurer can retain the premium of the policy holder? A. Fraudulent claim B. Indisputability clause C. Redressal procedure D. Pending decision from Ombudsman 12. An investor holds a wide range of shares. If the Reserve Bank of India announces a series of significant interest rate increases, the prices of these shares are most likely to A. become volatile B. decrease C. increase D. stagnate 13. Sahil & Vijay buy an insurance plan for same sum assured, but only Vijay was called for medical examination.Why? A. Vijay is younger than Sahil B. Vijay is older than Sahil C. Sahil has Kids & Vijay has no kids D. Sahil is self employed 14. Rakesh wants to buy a policy primarily for Risk Cover but at the end of the term, he wants to get at least some return. Under which policy he will get these benefits? A. Endowment plan B. ROP plan C. Whole life plan D. ULIP 15. customer who has taken 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 term of 30 years C. At the time of revival of the policy D. When there is change in the nomince 16. Law of large numbers is worked out by which of the following A. Pooling of risk B. Maintaining insurable interest C. With utmost good faith D. Randomness 17. 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. Prospect's signature on Benefit illustration D. Confirmation through telephone 18. In an MWP policy, the beneficiary under the plan, other than wife can be : A. Ex wife B. Siblings C. Parents D. Children 19. After maturity In a Unit Linked Life Insurance Policy, customer does not receive maturity value in a lump sum. What is the possibility of receiving it in installments, if it is not a annuity plan : A. He has switched his fund B. He has opted for Settlement option C. He has redirected his past premiums D. Policy was lapsed at the time of maturity 20. Which is regulator, supervisor, and monitory authority of financial system in India? A. IRDA B. SEBI C. RBI D. SBI 21. Which of the following falls under voidable contract? A. Misrepresentation B. Lack of insurable interest C. Fraud D. None of the above 22. 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 23. Principle of utmost good faith will operate in existing policy A. Every time premium is paid B. If the policy has lapsed and if has to be revive C. If the insured person falls sick and is admitted to hospital D. If the insured person changes his job 24. Apart from conducting a comprehensive fact-find, the other main action that an insurance agent can take at outset to minimise the risk of subsequently receiving a customer complaint is to A. ask for referrals B. offer commission rebates C. provide detailed disclosures D. register with the Insurance Ombudsman 25. While filling proposal form of Term insurance plan, details of two persons were mentioned in in non-medical underwriting form. What could be the reason? A. Joint insurance Plan B. Securing two lives under one plan C. Proposer is different than Life insured D. Extrdetails were required 26. Nishit 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 should Nishit do : A. Decline to answer B. Ask customer to refer product booklet C. Refer matter to Supervisor D. Ask customer to give question in writing 27. ABC Insurance Company has appointed many agents. They are helping in underwriting process to the underwriters. However, Mr. Vimal, an agent has done adverse selections. From insurance company's point of view, which among the following is most likely considered to be the adverse selection? A. Obtaining policy from very poor person B. Obtaining policy from rich man C. Vimal has obtained most of his policies from railway porters D. In certain cases material facts are changed to obtain higher claims 28. Ashok is a young married man with beautiful young wife and two kids. which types of insurance projects should he select? A. Contingency funding B. Health insurance C. Housing Loan insurance D. Retirement benefit insurance 29. The lung cancer is aggravated by smoking. In terms of insurance, these are respectively known as A. Hazard & peril B. Peril & hazard C. Effect & cause D. Either peril or hazard 30. For the agents to carry out their role in a professional manner, they must adhere to tile Code of Conduct specified by which authority? A. Life Insurance Council B. Ornbudsman C. National Insurance Academy D. IRDA 31. While Underwriting Mr X proposal, it is found that there has been CRIMINAL case against him in a fraudulent act. What type of risk will this be categorized lnto? A. Fraudulcnt Hazard B. Occupational Ilazard C. Physical Hazard D. Moral Hazard 32. The changes in healthcare costs over recent years has had what general impact on healthcare insurance? A. A fall in average premium levels B. A reduction in underwriting requirements C. A rise in the need for cover D. A strengthening of the insurable interest rules 33. Net premium is equal to A. Premium plus interest earning B. Risk premium plus interest earning C. Prerniurn minus intercst'caming D. Risk premium minus interest earning 34. The time period within which as per the IRDA Guidelines the Insurer has to intimate the Insured and compete the extra documentation formalities as required for passing the decision of proposal acceptance is: A. 10 Days B. 12 Days C. 15 Days D. 20 Days 35. If life insurance policy is issued with alien, it will be mentioned in A. Proviso B. Schedule C. Terms & conditions D. Endorsement 36. In a G-Security, if no interest is to be paid, what is guaraanted on maturity? A. Principal amount plus bonus B. Principal amount C. Principal amount plus appreciation D. Discounted principal amount 37. Ramesh is brother of Rakesh. In which circumstances can Rakesh propose policy on Ramesh's life A. If Ramesh owes him money B. If Ramesh gives declaration C. If Ramesh proves that he needs the money D. If ramesh wants to invest in his brother's name 38. The advanitage of buying policy from an insurance brokers is : A. More regulated market B. Policyholder interest is taken care C. More types ofplans to choose from D. They offer plan that best suits the customer 39. What are the benefits to the policyholder under Surgical. care rider? A. Number of days admitted in hospital & surgery expenses in full B. Number of days admitted in hospital & surgery expenses in partial C. Treatment cost of surgery subject to terms & conditions D. Lump sum amount what he has incurred 40. If in an endowment participating policy, 4% compounding bonus is declared after some years, what will be the amount of bonus declared? A. 4% of basic sum assured amount B. 4% of (basic sum assured + bonus for last year) C. 4% of (accrued bonus + bonus for previous years) D. 4% of (basic sum assured + accrued bonus) 41. What is the similarity between recurrent deposit and cumulative deposit in a bank? A. Guarantee B. Taxation C. Tenure D. Lockin Period 42. Which tax rate is applicable, in case a client pays the premium of 5000/- and suffers illness before maturity? A. Nil B. 10% C. 20% D. 30% 43. Job of a nodal officer of insurance company involves : A. Addressing customer grievances B. Deciding, the premium to be charged C. Imparting training D. Looking after sales 44. If ombudsman makes a recommendation which is accepted by complainant then it would be : A. binding on the Insurer B. Sent to the insurer for review and acceptance C. Sent to IRDA for approval D. Not binding on any party 45. How long is the free look-in period under a term insurance policy from the date of receipt of the policy document? A. 5 days B. 10 days C. 15 days D. 20 days 46. In case of any unethical practices in sales followed by an insurance company the clea-cut impact will be shown in : A. Claims ratio B. TAT on complaints C. Persistency ratio D. Market share 47. Why does any insurance company require an age proof from the customer? A. It is a mandatory requirement B. To evaluate the risk C. To Improve persistency D. To avoid adverse selection 48. If IRDA is unable to discharge its functions or duties, Central Government : A. has the power to supersede the IRDA by issuing notification B. has the power to supersede the IRDA by passing a bill in parliament C. has the power to supersede the IRDA through ordinance D. Can amend IRDA Act 49. While calculating the retirement fund needed by a client, the agent does not consider the gratuity element. That is because the client is a : A. Public sector employee B. Private sector employee C. Self employed D. Salaried employee 50. Direct Marketing channel includes A. Advertisement in newspaper B. Bancassurance C. Composite Broker D. At customer's place | |