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. Raju died 5 years before the end of his 30-year endowment insurance policy. What factor most likely caused the insurer to investigate the claim using the early death claim procedures?
A. He paid the most recent premium during the period of grace
B. His cover was originally accepted with a premium loading on medical grounds
C. His death resulted from a recently acquired sudden illness
D. The policy had lapsed and was revived shortly before he died
2. If job loss is a risk, one should invest in debt instruments like bank deposits and :
A. Government securities
B. Debt mutual funds
C. National Saving Certificates
D. Corporate bonds
3. Rakesh wants to buy a policy primarily for Risk Cover but at the end of the term, he wants to get at least some return. Under which policy he will get these benefits?
A. Endowment plan
B. ROP plan
C. Whole life plan
D. ULIP
4. 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
5. In an endowment policy, bonus becomes payable because of
A. Indexation
B. Inflation
C. Loading
D. Increase in Premium
6. During fact-finding, two needs were identified as margin money and planning for retirement. Which of the two should be given preference?
A. Margin Money
B. Retirement
C. Current Age and Priority will decide about aiven preference
D. Customer wants will decide the preference
7. 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
8. For assessing the risk of a group health insurance policy, which of the following information is the most critical :
A. Group lifestyle
B. Employees
C. Age of the group members
D. Medical history of group members
9. In case of any unethical practices in sales followed by an insurance company the clea-cut impact will be shown in :
A. Claims ratio
B. TAT on complaints
C. Persistency ratio
D. Market share
10. 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
11. The main function of the IRDA's Grievance Redressal Call Center is to educate the policyholders regarding :
A. Consumer forum
B. Insurance ombudsman
C. General Insurance Council
D. Insurance Institute of India
12. 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
13. What is the maximum sum assured under micro insurance?
A. 10,000
B. 25,000
C. 50,000
D. 100,000
14. Sahil has taken insurance policy of 1 crore SUnderwriter will ask for moral hazard report frorn:
A. Sahil's employer
B. Sahil's employee
C. Sahil's Insurer employee
D. Sahil's agent
15. 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
16. The advanitage of buying policy from an insurance brokers is :
A. More regulated market
B. Policyholder interest is taken care
C. More types ofplans to choose from
D. They offer plan that best suits the customer
17. For an insurance agent, a low persistency ratio means
A. Loss of renewal commission
B. High client satisfaction
C. Higher reputation
D. More earning of First Year Commission
18. Which is correct in relation to Insurance Broker?
A. Insurance brokerr represents insurance buyer and is remunerated by the insurance company
B. Insurance broker represents insurance buyer and is remunerated by the Client
C. Both of these
D. Neither of these
19. Rajan wants to make monthly investment for his retirement but then decided to postpone for 10 years, He is advised that contribution would then be 120%. What is the probable reason?
A. Interest
B. Compounding
C. Taxation
D. Lockin
20. The concept of indemnity is based upon the key principle that policy holders shoul be prevented from :
A. Insuring existing losses
B. Making false insurance claims
C. Paying excessively for insurance cover
D. Profiting from insurance
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