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. A Govt. employee after retirement has chosen to take 10% of his pension benefit in cash. Which of the following options shall be applicable to the person so far as income tax payment is concerned?
A. It is absolutely tax free
B. He has to pay 10% TDS on the amount taken in cash
C. He has to pay 30% TDS on the amount taken in cash
D. Pension benefit not allowed in cash
2. An investor has taken G-securities by paying lump sum investment. Apart from periodical interest, what would he get at the end of the term?
A. Discounted value with interest
B. Principal amount
C. Discounted value with persistency bonus
D. None of these
3. 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
4. What key event is most likely to prevent insurers from ensuring that each insured person brings a fair premium to the pool for the risk presented?
A. A fraudulent claim
B. A policy assignment
C. A steep rise in inflation
D. A sudden illness
5. In the process of calculation of net premium, which will be deducted:
A. Bonus
B. Rate of return
C. Incorne from investments
D. Expenses
6. 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)
7. 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
8. 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
9. Detarification is a proccss by which pricing of insurance :
A. Rises
B. Falls
C. Reaches a level as per industry trends
D. Insurers can price their products on their self past experience
10. On the maturity of an endowment policy, a reduced sum insured is paid out. What is the most likely reason for this?
A. The instalments were commuted by the policyholder
B. The policyholder's health seriously deteriorated during the policy term
C. The policy was made paid up during the policy term
D. The policy was subject to a lien
11. 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
12. What is the need of doing the Fact Finding Analysis of a Customer?
A. To ensure and increase Sale
B. Correct Need Analysis
C. To follow IRDA Guidelines
D. To relate the Monetary benefits
13. Underwriting is an important aspect of insurance business. In which of the following situations uncle-writer must be most cautious?
A. Low age, low sum assured
B. Low age, high sum assured
C. High Low age, high sum assured
D. High Low age, low sum assured
14. Ashu is an illiterate person and his proposal form was filled by Nishu, then what is the additional requirement to be taken along with the documents?
A. The policy needs to be advertised in the newspaper
B. Nishu has to sign an indemnity bon
C. Thumimpression of Ashu has to be taken
D. Ashu needs to be medically examined
15. Gautam wants to purchase a Kisan Vikas PatrWhat is the most suitable place to purchase it from :
A. Bank
B. Insurance company
C. Post office
D. Share market
16. The consequences of these risks which will affect specific individuals or local communities in nature is cJled as
A. Pure risk
B. Financial risk
C. Particular risk
D. Physical hazard
17. In normal claim settlement process, if death claim arises within few days of issuing the policy, on priority, the company would check the following :
A. Age proof
B. Material facts
C. FIR
D. FPR
18. Where annually increasing flexible premiums operate under a life insurance policy, what rate of increasc will generally apply?
A. 2.5%
B. 3.0%
C. 5.0 %
D. 7.5%
19. 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
20. 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
Dr K Chaudhry 5 Alpha Inmternational City, Fatehabad 125050 M: 9810570740, 9810571993facebook.com/doctorkc