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. What key legacy has been left by the activities of the Tariff Advisory Committee?
A. A central compensation fund
B. Customer classification status
C. Illustrative projection rates
D. Standard policy wordings
2. In order to fulfil the ˜know your customer' procedures, at what stage in the financial planning process is the insurance agent most likely to request a copy of the customer's photograph?
A. At the end of the fact-find meeting
B. At the end of the presentation meeting
C. As soon as the application is accepted by the insurer
D. As soon as the insurer is ready to issue the policy document
3. In the personal statement, Harish declares that he consumes alcohol twice every week. This is
A. Moral hazar
B. Moral peril
C. Physical hazar
D. Physical peril
4. During the process of applying for life insurance, the customer discloses confidentially to the insurance agent that he had a mild stroke four months ago, however this was NOT mentioned on the application form. In accordance with the Insurance Regulatory and Development Authority's Code of Conduct, how should the insurance agent deal with this information?
A. Ask the policyholder's doctor to send details to the insurer
B. Notify the insurer of this matter
C. Refuse to act for the customer in this case
D. Respect this confidentiality by not discussing it with anyone else
5. 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
6. If Insurable interest does not exists at the time of inception of the life insurance policy then, life insurance contract is
A. Voidable
B. Invalid
C. Valid
D. Null & voidable
7. A low persistency ratio for the insurance company means that:
A. The customers are satisfied with the products
B. The company is acquiring more business and new customers
C. A large numbers of policies have lapsed / surrendered resulting in loss of profit
D. The company will not declare bonus
8. Ration Card and Baptism certificate are considered as:
A. Standard Age Proof
B. Non Standard Age proof
C. Standard and non standard age proof respectively
D. Nonstandard and standard age proof respectively
9. What amount of insurable interest does an individual have in his own life?
A. 20,000
B. 50,000
C. Up to the sum assured taken in the plan
D. Unlimited
10. 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
11. In case the customer has stopped making payment for the premium of the policy, what are the two most important things required in order to reinstate the policy?
A. Payment of oustanding premiums with interest and Proof of continuing good health
B. Payment of oustanding premiums and health declaration
C. Only medical report
D. Current premium and arrears
12. The insurer rejects proposal and sends direct letter to the proposer, copy of the letter is also sent to the agent. What appropriate action would the agent take?
A. Contact the proposer and discuss the reasons for rejection
B. Fill new proposal form
C. Advise the proposer to contact the ombudsman
D. Advise the proposer to take insurance from another company
13. Mr Ramesh has taken a life police as recommended by an insurance agent. Now the role of Agent's Principal lies with :
A. Insured
B. Insurance Company
C. Proposer
D. IRDA
14. 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
15. customer who has taken whole life policy has to renew the insurable interest in the policy at the following times
A. Once he attains the age of 70
B. Once the policy has been in force for term of 30 years
C. At the time of revival of the policy
D. When there is change in the nomince
16. What key impact will the agent have in low persistency
A. Increase more business
B. Increase in the agents earning
C. Will improve reputation
D. Will reduce his commission
17. In India, regulatory agencies for insurance sector is known as :
A. SEBI
B. ICAR
C. IRDA
D. RBI
18. In the process of calculation of net premium, which will be deducted:
A. Bonus
B. Rate of return
C. Incorne from investments
D. Expenses
19. Which is the valid reason for an underwriter to impose a lien?
A. An average risk because of occupation risk
B. Lower than average risk because of occupational risk
C. Higher than average risk due to physical characteristics
D. To charge higher premium from Insured
20. Underwriting is an important aspect of insurance business. In which of the following situations uncle-writer must be most cautious?
A. Low age, low sum assured
B. Low age, high sum assured
C. High Low age, high sum assured
D. High Low age, low sum assured
Dr K Chaudhry 5 Alpha Inmternational City, Fatehabad 125050 M: 9810570740, 9810571993facebook.com/doctorkc