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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. If the persistency of an Insurer increases from 83% to 86% then the key feature behind it would be: A. Policy is sold to wealthy customers B. The number of surrender and lapse of policies is less C. Agent is earning higher commission D. Company is earning higher profits 2. When a person is investing in Debt Mutual Fund, what is the primary objective? A. Good returns B. Regalar Income C. Safety D. Liquidity 3. Nikhil is a young professional working in an organization at good position. He is independent and has no dependants. Which plan will you suggest him? A. Term Plan B. Convertible Plan C. Return of Premium Plan D. Unit Linked insurance plan 4. The clients of re-insurers are A. Insurance companies B. Banks C. Asset Management Companies D. Individuals 5. The policy is of term 30 years. For how many years maximum lien can be applied? A. 5 B. 10 C. 15 D. 20 6. Attestation on the policy requires signature of A. Agent B. Insurance company's authorized official C. Nominee D. Appointee 7. Suresh recommends a child plan to Mitali after a need analysis. Mitali disagrees with the offered plan. What will be the next step? A. Enquire about the reason for disagreement B. Suggest another plan C. Ask for future date D. Explain that this is the best plan 8. During financial planning session if the agent finds out the following needs, which one should be given the top priority? Needs: Income protection, Childs education, marriage and emergency funds A. Childs education B. Marriage C. Emergency fund D. Income protection 9. Whose signature is required on attestation of the policy? A. Agent B. Policy holder C. Authorized officials of insurer D. Proposer 10. For an insurance agent, a low persistency ratio means A. Loss of renewal commission B. High client satisfaction C. Higher reputation D. More earning of First Year Commission 11. 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. Surn Assured + Bonuses (if any) C. Refund all the premiums paid till date D. Sum Assured + Bonuses - premium due 12. If a policyholder complains to the ombudsman that the insurer is not doing justice to him, in how many days ombudsman would give his recommendation? A. 15 days B. month C. 3 months D. 6 months 13. 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 14. Raju died 5 years before the end of his 30-year endowment insurance policy. What factor most likely caused the insurer to investigate the claim using the early death claim procedures? A. He paid the most recent premium during the period of grace B. His cover was originally accepted with a premium loading on medical grounds C. His death resulted from a recently acquired sudden illness D. The policy had lapsed and was revived shortly before he died 15. Akshat is a relatively cautious person. In insurance terms, this will normally increase the likelihood that he will A. be considered an above average insurance risk B. be considered a below average insurance risk C. require insurance cover D. require reinsurance cover 16. 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 minor C. It is children plan D. The nominee is physically handicapped 17. Legislation gives which body the power to specify a code of conduct for surveyors and loss assessors? A. Institute of Insurance and Risk Management B. Insurance Regulatory and Development Authority C. Life Insurance Council D. Securities and Exchange Board of India 18. Ajay wants to take 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 proofs B. Certificate of Baptism is non-standard age proof and Ration card is standard age proof C. Certificate of Baptism is standard age proof and Ration card is non:standard age proof D. Both are non-standard age proofs 19. 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 20. Whole life policy document is : A. Contract of Insurance B. Evidence of Contract C. Indemnity contract D. Insurance 21. A customer gets periodic benefits without any claim and then when he dies during the term of the policy. His nominee gets the sum insured. What type of policy is this ? A. Endowment B. Term C. Money back D. Whole life 22. Who is the primary underwriter of the customer? A. Underwriter B. Insurance company C. Agent D. Actuary 23. A valid claim is delayed bv the insurer. The interest for the same will have to be paid by the Insurance company after how many days from the date of admission of the claim? A. 10 days B. 20 days C. 30 days D. 60 days 24. Insurance companies are required to honour the awards passed by the insurance ombudsman within : A. 15 days B. 1 month C. 2 months D. 3 months 25. If both mother and father of the proposer have died before the age of 30 due to heart diseases, it can be a case of: A. Moral hazard B. Physical hazard C. Financial hazard D. Occupational hazard 26. Suresh is suffering from asthma and the policy is being done on joint life basis. The need for nomination under the plan is less as : A. Joint life policy B. Has physical ailment C. Both these D. Neither of these 27. During fact finding, what would be the next step after identifying clients needs : A. Quantify clients needs B. Prioritize Clients Needs C. Recommending Product D. Fill up the proposal form 28. Mr Sudhakar wants to invest in post office term 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 29. Manoj & Rakesh both buy an endowment plan for the same quarterly premium and same SBoth surrender the plan after the same number of years, but Manoj gets higher Surrender Value as compared to Rakesh. This is because A. Rakesh bought the policy for longer term B. Manoj bought the policy for longer term C. Manoj disrlosed all material facts D. It is calculation error 30. In India, regulatory agencies for insurance sector is known as : A. SEBI B. ICAR C. IRDA D. RBI 31. 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 32. 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 33. In loan granted against the policies, what is true A. It is on premiums paid B. It is on Sum assured C. It is percentage of surrender value D. Its on paid up value 34. An award made by the Insurance Ombudsman will only be binding on the insurer if the A. complainant accepts this decision B. Consumer Forum is involved in the case C. insurer signs a disclaimer D. value of the award is less than 2 lakhs 35. 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 36. Raunak wants to purchase the cheapest plan which can provide financial security to his dependents. Which plan would you offer? A. Term Plan B. Term Plan with return of premium C. Pure Endowment plan D. Unit Linked Plan 37. While calculating HLV along with future income, no of years of work, increments in salary, what Is also to be taken in to account? A. Inflation B. Interest C. Discount rate D. Compounding 38. Payment in Kisan Vikas Patra under post office schemes is done : A. Regularly, with no fixed term B. Lump sum, with no fixed term C. Lump sum for fixed period of time D. Regularly for fixed period of time 39. A life insurance policy can only be made paid up if what particular policy feature exists? A. Indexing contribution B. Nomination facility C. Rider benefits D. Savings element 40. The concept of indemnity is based on the key principle that policyholders should be prevented from A. insuring existing losses B. making false insurance claims C. paying excessively for insurance cover D. profiting from insurance 41. Whuch institute is concerned with insurance training, education, research and publication, and risk management : A. IRDA B. National Insurance Academy (NIA) C. Insurance Institute of India D. Life Insurance Corporation 42. Kabir wants to invest in shares and golWhat benefits would he get? A. Capital appreciation B. Interest earning C. Dividend earning D. ncome and appreciation both 43. If the annual premium for a plan is 32000 and a frequency loading of 4% is added in a premium, what is the amount that needs to be paid? A. 8000 B. 8320 C. 9456 D. 9240 44. An agent does fact finding for a married couple with 9 year old chilThe agent identifies that they need Life insurance Protection, Child Insurance, Pension plan and health Insurance. Which of them should be given least preference? A. Child Plan B. Pension Plan C. Health plan D. Life insurance 45. The concept of insurance involves a transfer of A. liability B. needs C. ownership D. risk 46. What is the purpose of investing money in debt mutual fund? A. Easv access B. Fixed income C. Tax benefits D. Liquidity 47. When can an insurance agent suggest a Young Married Couple to purchase a ULIP policy? A. Young Married Couple with single income no children B. Young Married Couple with double income no children C. Young Married Couple with children and double income D. Young Married Couple with children and single income 48. Thc chanccs of adverse selection may be greater with the following method of underwriting : A. financial B. medical C. Non medical D. Accepting proposal with lien 49. Which of the following is not true with regard to Human Life Value? A. HLV is used as yardstick to determine how much life insurance cover person slould have B. HLV is one-time calculation C. As age increases HLV diminishes D. Through HLV, insurance company tries to measure the economic value of person 50. 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 | |