Test Your Knowledge - Free MCQ PRACTICE
by Saksham Chaudhry : 23-B Model Town, Fatehabad 125050 M: 9810570740, 9810571993
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. Who gives grant to IRDA?
A. Life Insurance of India
B. Central government
C. Insurance Institute of India
D. All of these

2. 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

3. In the case of life insurance, insurable interest should exist
A. At the inception of the policy
B. At thc time of claim
C. At the time of every renewal premium payment
D. All the above occasions

4. 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

5. An insurance agent sold two policies to two different persons having the same policy term. He declares the commission to each of them. The commission of one of the policy is more than the other. What should be the reasons for this difference?
A. Risk profile of both the policyholders is different
B. Age of both the policyholders is different
C. One has chosen lump sum premium policy and other has chosen regular premium policy
D. Both have chosen different kind of policies

6. Agent should be very careful while filling the proposal and if has doubt about the client's 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

7. Ankur wants to plan for his daughter's education. As a financial advisor what rate would you consider to plan for her education in a later date?
A. Bonus
B. Inflation
C. Interest
D. Investment

8. What is the key, that indicates that the insurance contract has begun?
A. Receipt of Policy Document
B. Receipt of First Premium receipt
C. Proposal Form Submission
D. Checlue submitted date

9. Ravi has submitted a health insurance policy proposal form along with the documents In how much time should he receive the copy of the form submitted :
A. 10 days
B. 15 days
C. 30 days
D. 180 days

10. 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

11. An elderly person wants to use tax efficient investment and invests in senior citizen saving schemWhat is its impact in his taxation?
A. Tax benefit up to 5,000
B. Tax benefit up to 25%
C. Reduction in tax slab
D. Entire investment deducted from taxable income

12. In an endowment policy how many nominees can be made
A. 1
B. 2
C. 3
D. Any number

13. In order to ensure that premiums are paid out of a legitimate source of funds cash is accepted :
A. Upto 50,000
B. Upto 25,000
C. Upto 10,000
D. Upto 5,000

14. As per Insurance Act 1938 which of below bodies was formed?
A. Tariff Advisory Committee
B. National Insurance Academy
D. Insurance Institute of India

15. A low persistency ratio for the insurance company means that:
A. The customers are satisfied with the products
B. The company is acquiring more business and new customers
C. A large numbers of policies have lapsed / surrendered resulting in loss of profit
D. The company will not declare bonus

16. Anju is married with Akhilesh, they want to secure their unearned income, which plan should be suggested to protect income :
A. Endowment Plan
B. Term Plan
C. Children Plan
D. Limited Pay Plan

17. What key impact will low persistency levels have on insurance policyholders?
A. An enhancement in product choice
B. An improvement in investment performance
C. An increase in insurance cover
D. A reduction in benefits

18. What is the ceiling of tax exemption under section 80C of Income Tax Act?
A. 1 lakh
B. 1.5 lakhs
C. 2 lakhs
D. 3 lakhs

19. 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

20. Nikhil is taking a policy with a sum assured of Rs1,00,000. What premium amount he pay to gei the incotne tax benefit on full premium aniount as per the Incorne Tax Act ?
A. Minimum Rs15,000
B. Maximum Rs15,000
C. Minimum Rs20,000
D. Maximum Rs20,000

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