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. Nishit is an insurance agent. He was in process of selling Unit Linked Insurance Plan to his customer. The Customer has asked one technical question to him for which he did NOT know the answer, According to the best practices, what should Nishit do :
A. Decline to answer
B. Ask customer to refer product booklet
C. Refer matter to Supervisor
D. Ask customer to give question in writing
2. If bonus is given under a plan, the additional premium added is known as
A. Loading
B. Investment
C. Frequcricy
D. None of these
3. 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
4. Attestation on the policy requires signature of
A. Agent
B. Insurance company's authorized official
C. Nominee
D. Appointee
5. In cumulative bank deposit the interest is normally compounded :
A. Monthly
B. Quarterly
C. Half yearly
D. Annually
6. Life insurance is most important for which stage of human life
A. Young
B. Pre- retirement
C. Retirement
D. Children
7. According to the Insurer, the Authenticity of an Assignment depends upon:
A. The type of policy
B. separate deed
C. The type of Loan
D. the receiving of notice
8. In the process of calculation of net premium, which will be deducted:
A. Bonus
B. Rate of return
C. Incorne from investments
D. Expenses
9. How are perils and hazards normally distinguished under term insurance policies?
A. Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying
B. Perils are risks that policy holders will die before specified date and hazards are factors which could influence that risk
C. Plerils are factors which affect the risk being insured and hazards are the size of the risk being insured
D. Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger payout
10. In case of presumption of death :
A. Not necessary to pay premium until court decree
B. Necessary to pay premium until court decree
C. Claim not admissible
D. None of these
11. If custonier has applied for a policy with 1 Lac SA then what is maximum Premium on which he can saave taxes?
A. Maximum 20,000
B. Maximum 100,000
C. Maximum 120,000
D. Maximum 150,000
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. Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply?
A. 2.5%
B. 3.0%
C. 5.0%
D. 7.5%
14. General Insurance is contract of indemnity that's why life insurance is described as a:
A. Valid Contract
B. Specific Contract
C. Value Contract
D. Void Contract
15. An insurance agent has advised a client to surrender an existing investment product and start a new investment product. What key indicator should be used to determine whether this advice was ethical?
A. The best interests of the client
B. The difference in potential income and capital growth between the two products
C. The flexibility of the new product compared to the old one
D. The views expressed by the client
16. The regulations issued by the IRDA, require that the decision on the proposal must be conveyed to the propcser within
A. 15 days of receiving the proposal
B. 20 days of receiving the proposal
C. 25 days of receiving the proposal
D. 30 days of receiving the proposal
17. The underselling of insurance is considered detrimental because :
A. Financial benefits will not be compensated fully
B. Insurance will have no effect
C. More policies cannot be sold at a later stage
D. The proposer has to pay a lower premium
18. 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
19. 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
20. Ramesh is brother of Rakesh. In which circumstances can Rakesh propose policy on Ramesh's life
A. If Ramesh owes him money
B. If Ramesh gives declaration
C. If Ramesh proves that he needs the money
D. If ramesh wants to invest in his brother's name
Dr K Chaudhry 5 Alpha Inmternational City, Fatehabad 125050 M: 9810570740, 9810571993facebook.com/doctorkc