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. 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 policyholders will die before a specified date and hazards are factors which could influence that risk
C. Perils 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 a payout
3. In case of life insurance, the insurable interest should exist
A. At the time of taking the policy
B. At the time of claim
C. At the time policy matures
D. At the time of taking the policy & claim
4. What will be the effect on lien amount in 3rd year as compared to the 4th year of lien
A. Higher
B. Lower
C. Slightly higher
D. Slightly lower
5. 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
6. What is the key, that indicates that the insurance contract has begun?
A. Receipt of Policy Document
B. Receipt of First Premium receipt
C. Proposal Form Submission
D. Checlue submitted date
7. 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
8. Mr Kunal used to participate in car race. While taking up the Insurance policy he disclosed this information. What kind of hazard does it refers to?
A. Physical hazard
B. Fraudulent representation
C. Moral hazard
D. Peril
9. 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
10. 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
11. An eldcrly person wants to use tax efficient investment and invests in senior citizen saving scheme. Impact on taxation because of this decision will be that :
A. he will get tax benefit up to 5000
B. he will get tax benefit up to 25%
C. he will get a reduction in tax slab
D. his entire investment would be deducted front taxable income
12. When should an agent disclose the commission which he will earn from the product which he is going to sell :
A. On demand from customer
B. After the fact finding process
C. After quantifying the need
D. After the product is recommended to the client
13. Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason?
A. Administrative charge
B. Inflation
C. Interest rate
D. Market risk
14. Non Government Organizations (NGOs) are very instrumental in promoting
A. Link between clients and agents
B. Acts in favour of Insurer
C. Awareness about Insurance
D. Link between customer and company
15. Whuch institute is concerned with insurance training, education, research and publication, and risk management :
A. IRDA
B. National Insurance Academy (NIA)
C. Insurance Institute of India
D. Life Insurance Corporation
16. For the agents to carry out their role in a professional manner, they must adhere to tile Code of Conduct specified by which authority?
A. Life Insurance Council
B. Ornbudsman
C. National Insurance Academy
D. IRDA
17. A policyholder asked his insurance agent for guidance on submitting a claim for the maturity benefit under his life insurance policy. Due to pressure of work, the agent declined to assist. Consequently, this action is deemed to be a breach of the
A. General Insurance Council's guidelines
B. Insurance Regulatory and Development Authority's Code of Conduct
C. Insurance Ombudsman's protocols
D. Insurance Brokers Association of India's membership rules
18. Insurance companies are required to honour the awards passed by the Insurance ombudsman within how many days?
A. 10 days
B. 15 days
C. 20 days
D. 25 days
19. According to Insurance Brokers Association of India, what is the most appropriate relationship between insurer and broker?
A. Insurance broker represents the client and the insurer remunerates the broker
B. The client reprsents the broker and the insurer remunerates the broker
C. Insurer represents both client and broker remuneration
D. Broker only services the client
20. Suresh Sharmhas paid 8 yearly premiums for 30 year endowment plan having sum assured of 800000. The bonus accrued in the policy is 60000. Calculate the paid value of the policy
A. 17235
B. 272153
C. 273435
D. 273333
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