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. If ombudsman makes a recommendation which is accepted by complainant then it would be :
A. binding on the Insurer
B. Sent to the insurer for review and acceptance
C. Sent to IRDA for approval
D. Not binding on any party
2. 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
3. For annuity plans. before receiving regular/periodic annuity payments, the individual can make a lump sum withdrawal. This is known as commutation. Up to what proportion of the accumulated fund can be withdrawn?
A. The entire fund can be withdrawn
B. Only half of the fund can be withdrawn
C. Only one third of the fund can be withdrawn
D. Only one fourth of the fund can be withdrawn
4. The concept of indemnity is based on the key principle that policyholders should be prevented from
A. insuring existing losses
B. making false insurance claims
C. paying excessively for insurance cover
D. profiting from insurance
5. If the employer has insurable interest in the life of an employee, what kind of policy is this?
A. Surety insurance
B. Keyman insurance
C. Partnership insurance
D. Debtor insurance
6. In insurance terms, the risk of suffering a disability is best described as what type of risk?
A. Financial
B. Fundamental
C. Homogenous
D. Speculative
7. 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
8. A valid claim is delayed bv the insurer. The interest for the same will have to be paid by the Insurance company after how many days from the date of admission of the claim?
A. 10 days
B. 20 days
C. 30 days
D. 60 days
9. Kanial is willing to pay 60,000/- per annum for his ULIP policy. What should be the SA if he wants to avail the tax benefits?
A. 1 lacs
B. 3 lacs
C. 2 lacs
D. 1.5 lacs
10. If life insurance policy is issued with alien, it will be mentioned in
A. Proviso
B. Schedule
C. Terms & conditions
D. Endorsement
11. 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
12. Which of the following is one of the financial goals of an individual?
A. Children's education and marriage
B. Investment in share market
C. Planning car
D. Giving gifts to relatives
13. Peter Rodriguez completes the proposal form and hands it to the agent - Guneesh. Guneesh asks Peter for his College Records as proof to certify his age. Peter somehow was unable to find them. But Peter brought something that Guncesh accepted as standard age proof document. What could this be?
A. His Horoscope prepared at the time of birth
B. ration card
C. certificate of name given at ceremony in church
D. certificate from the village panchayat
14. In case of lien:
A. If the insured dies within the lien period, insurance company will still pay the full sum insured
B. The lien should diminish by an equal amount over specific period of time
C. If the term of the policy is multiple of three, then the lien operable is two third of the term of the policy
D. Conditions under which lien can be applied remain same for all insurance companies
15. Insurance Act 1938 does not deal with :
A. Amalgamation and transfer of Insurance business
B. Appointment of staff
C. Mutual funds
D. Power of investigation and inspection by the regulatory authority
16. If person receives 10,000 less as death claim after paying all premiums and there is no lien. It could be due to
A. Increase in premium rates
B. loadings
C. loan
D. Inflation
17. In term insurance policy if there is loading (due to increase in premium by the underwriter), it clearly depicts
A. Morbidity risk
B. Mortality risk
C. High Age
D. High sum assured
18. When a person is investing in Debt Mutual Fund, what is the primary objective?
A. Good returns
B. Regalar Income
C. Safety
D. Liquidity
19. If lien has bcen levied on policy for the 1st 5 years, then it's impact in the 3rd year as compared to 4th year will be
A. lesser
B. higher
C. equal
D. none
20. 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
Dr K Chaudhry 5 Alpha Inmternational City, Fatehabad 125050 M: 9810570740, 9810571993facebook.com/doctorkc