Test Your Knowledge - Free MCQ PRACTICE
by Saksham Chaudhry : Paschim Vihar, New Delhi 110063 T: 1142316457, 9810570740
A fresh set of 20 random questions is generated every time you open this page and every time you refresh it.
For each of the following multiple choice questions, choose the most appropriate answer :

1. The guaranteed and nonguaranteed values to be depicted in the Benefit illustration are in accordance with regulation issued by :
A. Insurance Regulatory Devetopment Authority 
B. Life Insurance Council 
D. Insurance Institute of India 

2. 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 

3. Six nnonths after issue of policy, if it is found that the insurable interest did not exist then the contcact is :
A. Void 
B. Voidable 
C. Rejected 
D. Invalid 

4. When can an insurance agent suggest a Young Married Couple to purchase a ULIP policy?
A. Young Married Couple with children and double income 
B. Young Married Couple with double income no children 
C. Young Married Couple with single income no children 
D. Young Married Couple with children and single income 

5. For the customer whose claim has been refused by the company, the three places where the customer may follow up are - Ornbudsman, IRDA Customer Grievance Cell, and :
B. Consumer forum 
C. District Congress Committee 
D. Life Insurance Council 

6. In the sales illustration, the reduction of the actual benefit amount is mainly due to deduction of :
A. Non guaranteed benefits 
B. Charges 
C. Reversionary Bonus 
D. Commission 

7. Sumesh is married and has two kids of age 5 & 7. He has medical insurance for him but has no protection on his life. What will you suggest him?
A. Health Insurance for children 
B. Health insurance for spouse 
C. Unit Linked insurance plan 
D. Term plan 

8. In a pension plan illustration what is the part which shows the benefit for an annuitant
A. Insurance coverage 
B. Annuity part 
C. Guaianteed and non guaranteed part 
D. Vesting age 

9. An insurance agent served an insurer continually and exclusively for 20 years, after which he retired from work. In accordance with Section 44 of the Insurance Act 1938, renewal commission due to him after the termination of his agency can only be withheld if
A. There has been a change in regulator 
B. He survives beyond the age of 75 
C. He ceases to remain a resident of India for tax purposes 
D. There is fraud involved 

10. Ashu is an illiterate person and his proposal form was filled by NishThen what is the addional requirement taken in addition to the documents?
A. Nishu has to sign an indemnity bond 
B. Thumimpression of Ashu has to be taken 
C. Ashu needs to be to be medically examined 
D. The policy needs to be advertised in newspaper 

11. What is the stipulated time frame within which an insurer is supposed to respond after receiving any communuication from its policyholders?
A. 1 day 
B. 5 days 
C. 10 days 
D. 30 days 

12. What is the need of doing the Fact Finding Analysis of a Customer?
A. Correct Need Analysis 
B. To ensure and increase Sale 
C. To follow IRDA Guidelines 
D. To relate the Monetary benefits 

13. 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. It is calculation error 
D. Manoj disrlosed all material facts 

14. The authority of COPA is limited to what amount at the district level?
A. 10 lac 
B. 20 lac 
C. 50 lac 
D. 100 lac 

15. Which is the valid reason for an underwriter to impose a lien?
A. To charge higher premium from Insured 
B. An average risk because of occupation risk 
C. Lower than average risk because of occupational risk 
D. Higher than average risk due to physical characteristics 

16. 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 

17. In term plan, with permission from insurer, how much rebate can be offered by agent to the customer?
A. No rebate can be offered 
B. 25% of the commission 
C. 10% of the commission 
D. 50% of the commission 

18. 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 

19. What normally happens to the sum insured under a life insurance policy once the period of the lien expires?
A. It reduces 
B. It is temporarily suspended 
C. It increases 
D. It is replaced by a newly-underwritten sum insured 

20. Kabir wants to invest in shares and golWhat benefits would he get?
A. Capital appreciation 
B. Dividend earning 
C. Ncome and appreciation both 
D. Interest earning 

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