Test Your Knowledge - Free MCQ PRACTICE
by Saksham Chaudhry : Paschim Vihar, New Delhi 110063 T: 1142316457, 9810570740
Insurance IC-33
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. 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 

2. 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. Require reinsurance cover 
C. Be considered a below average insurance risk 
D. Require insurance cover 

3. 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 

4. Mr Anwar has taken a Term Insurance Policy from Insurance Company. A term insurance is basically what kind of contract?
A. Indemnity Contract 
B. Insurance Contract 
C. Both these 
D. Neither of these 

5. The advanitage of buying policy from an insurance brokers is :
A. More types ofplans to choose from 
B. More regulated market 
C. Policyholder interest is taken care 
D. They offer plan that best suits the customer 

6. An investor has endowment policy with 30 years policy term. He has paid for eight years. The sum assured is 8,00,000/- and accumulated bonus 60,000/- What is the paid up value?
A. 2,13,333 
B. 2,29,333 
C. 2,73,333 
D. 2,93,333 

7. 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 :
A. Consumer forum 
B. District Congress Committee 
D. Life Insurance Council 

8. 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 

9. The basic reason of doing an income and expenditure analysis is to find out:
A. Fund on Retirement 
B. Net Income 
C. Affordability 
D. Assets and Liabilities 

10. Sahil & Vijay buy an insurance plan for same sum assured, but only Vijay was called for medical examination.Why?
A. Vijay is older than Sahil 
B. Vijay is younger than Sahil 
C. Sahil is self employed 
D. Sahil has Kids & Vijay has no kids 

11. 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 

12. What are the financial planning need for a 38 year old lady with 2 year young daughter, whose husband has passed away leaving enough insurance cover?
A. Estate planning 
B. Investment management 
C. Loan protection 
D. Pension planning 

13. In which section of Policy document, Information about the location of the insurance Ombudsman had written?
A. Operative clause 
B. Attestation 
C. Information statement 
D. Endorsements 

14. Whose signature is required on attestation of the policy?
A. Agent 
B. Policy holder 
C. Authorized officials of insurer 
D. Proposer 

15. If insured gets the two advance payments in the 5 yrs and on maturity, he gets rest of sum assured, what type of policy it is?
A. Moriey back policy 
B. Convertible plan 
C. Term plan 
D. Endowment policy 

16. If a person aged 25 vears, wants to take a plan, wherein, he can have sorne savings element and also the protection should be for indefinite tinie, which plan would you suggest, as an agent :
A. Endowrnent Plan 
B. Unit Linked Insurance Plan 
C. Term Plan 
D. Whole Life Plan 

17. Person comes back to previous comfortable financial position after suffering with loss. This is because of the following insurance Principle
A. Insurable Interest, 
B. Principle of Indemnity 
C. Utmost good faith 
D. Proximity 

18. At what time of the proposal should the agent declare his commissions as per the Code of Conduct?
A. While recommending the product 
B. When the client has accepted the recommendation 
C. Whenever asked by the client 
D. At the time of filing the proposal 

19. If a person gets involved in a dangerous sport activity, before the issuance of policy, which statement is true in terms of Pcril & Hazard?
A. Peril will reduce the risk of Physical Hazard 
B. Peril will increase the risk of Physical Hazard 
C. Physical Hazard will reduce the risk of Peril 
D. Physical hazard will increase the risk of Peril 

20. NIA's main work is :
A. Calculating premium 
B. Conducting Exanis 
C. Training 
D. Certification 

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