insurance basic question

8/18/2019 insurance basic question

1/152

Manish Suryawanshi

Paper 11

Question 1

How are perils and hazards normally

distinguished under term insurance policies?

(Chapter 14)

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.


2/152

Manish Suryawanshi

D Perils are factors which could influence an

insured event occurring and hazards are the

actual events which will trigger a payout

Question 2

In the context of financial planning, how is the

difference between real needs and perceived

needs best described? - (Chapter 4)

A Real needs are financial needs and perceived

needs are non-financial needs.

B Real needs are actual needs and perceived

needs are based on a client’s thoughts and

desires.

C Real needs are identified by the insurance

agent and perceived needs are identified by the

client.


3/152

Manish Suryawanshi

D Real needs are needs which satisfy an

objective and perceived needs are needs which

do not satisfy an objective.

Question 3

If a person is concentrating more on health

plan and retirement plan then at which stage of

life is he in. (Chapter 8)

A Young unmarried

B Young married

C Young married with Kids

D Pre retirement

Question 4


4/152

Manish Suryawanshi

The Institute of insurance and risk management

along with insurance education does what

more - (Chapter 1)

A Regulation

B Redressal

C Research

D Repository

Question 5

If the client does not wish to proceed with the

recommendations right at the moment theagent should - (Chapter 18)

A Insist on taking the product right away

B Should ask for the reason for not going with

the recommendation

C Should ask for a future date from the client


5/152

Manish Suryawanshi

D Should review once again

Question 6

Suresh has adequate reserve capital with him

and he wishes to protect his income, moreover

he feels that if he does not die then he would

need the amount. What type of plan should he

opt for? - (Chapter 5)

A Term Insurance Plan

B Endowment plan

C Return of premium plan

D Pension plan

Question 7

A claim was paid in a policy and it was

advertised in the newspaper also. This indicates

that the policy was. - (Chapter 11)


6/152

Manish Suryawanshi

A It was assigned.

B It was paid up.

C It was lost.

D It was surrendered.

Question 8

An indemnity bond was signed in a policy when

the claim was paid. This indicates that the

policy was. - (Chapter 13)

A It was lost.

B It was paid up.

C It was lapsed.

D It was lapsed.

Question 9


7/152

Manish Suryawanshi

Manish and Manisha is a married couple with

one child. They want to plan for savings, child

education/marriage and their retirement andprotection of income. Which should be their

lowest priority? - (Chapter 5)

A Marriage.

B Savings.

C Education.

D Protection.

Question 10

While calculating HLV along with future

income, no of years of work, increments in

salary what is also to be taken in to account?

(Chapter 9)

A Inflation .

B Interest.


8/152

Manish Suryawanshi

C Discount rate

D Compounding.

Question 11

If RBI increases the interest rates then what will

be the effect on share prices. (Chapter 16)A Shares will be more attractive.

B Shares will be less attractive.

C Fixed deposits will be more attractive.

D Fixed deposits will be less attractive.

Question 12

Vishal and sandeep applied for a health plan in

XYZ Life Insurance Company. Vishal is asked to

undergo a medical checkup but Sandeep is not


9/152

Manish Suryawanshi

asked to do so. What will be most possible

reason? - (Chapter 8)

A Sandeep has taken another policy from XYZ

Life Insurance Company

B Vishal is older than Sandeep

C Sandeep is earning more then Vishal

D Vishal is working in a MNC

Question 13

During fact finding, What will be the next stepafter Identifying clients need - (Chapter 18)

A Quantify clients need

B Priorities Clients Need

C Recommending Product

D Fill up the proposal form


10/152

Manish Suryawanshi

Question 14

What is purpose of investing money in debt

mutual fund? -(Chapter 4)

A Easy access

B Fixed incomeC Tax Benefits

D Liquidity

Question 15

Mr. shailsh has an endowment policy with 30

years policy term, he has paid for eight years.

The sum assured Rs.8,00,000/- and

accumulated bonus Rs.60,000/-. What is the

paid up value? -(Chapter 5)


11/152

Manish Suryawanshi

A 213333

B 229333

C 273333

D 293333

Question 16

What is the similarity between Recurring

Deposits & cumulative deposits in a bank -

(Chapter 6)

A Guarantees

B Taxation

C Tenure

D Lock in periods

Question 17


12/152

Manish Suryawanshi

Mrs. Sheela received some amount out of her

husband’s death. In such a situation what will

be her prime focus?-(Chapter 4)

A Savings

B Insurance

C Investment management

D Planning for pension

Question 18

Mr. Kunal used to participate in Car race. Whiletaking up the Insurance policy he disclosed this

information. What kind of hazard does it refers

to -(Chapter 14)

A Physical hazard

B Fraudulent representation


13/152

Manish Suryawanshi

C Moral hazard

D Moral hazard

Question 19

Which of the following falls under voidable

contract?-(Chapter 3)A Misrepresentation

B Lack of insurable interest

C Fraud

D None of the above

Question 20

Law of large numbers is worked out by which ofthe following?-(Chapter 10)

A Pooling of risk


14/152

Manish Suryawanshi

B Maintaining insurable interest

C With utmost good faith

D Randomness

Question 21

If a client wants to compare between all

financial products then the best person he canapproach is-(Chapter 12)

A Individual agent

B Corporate agent

C Bank

D Broker

Question 22

If a person want to maintain emergency funds

the best place is a bank or -(Chapter 5)


15/152

Manish Suryawanshi

A Equity market

B ULIP

C Debt mutual fund

D FD

Question 23

During a fact finding process the need analyzed

were income replacement and children’s

education. But the customer insists on only a

child plan for the time being and asks the agentto give him a child plan. The agent should.-

(Chapter 18)

A Do the fact finding exercise again

B Insist with the client to take a term plan

C Give a child plan and revisit the client on a

later date


16/152

Manish Suryawanshi

D Give the lead to another agent

Question 24

If a case is already before the consumer forum,

then the ombudsman should-(Chapter 20)

A Give a recommendationB Give a joint decision with the consumer

forum

C Dismiss the case

D Give an award.

Question 25

If the sum assured remains the same, what will

be impact of net premium if the age of the

policyholder increases-(Chapter 10)


17/152

Manish Suryawanshi

A It rises

B It falls

C It remains constant

D Gross premiums increases

Question 26

What is the advantage of converting physical

gold assets to gold ETFs.-(Chapter 5)

A Liquidity

B More gold in value

C Purity

D More conversion value

Question 27


18/152

Manish Suryawanshi

For which of the following reasons, the

underwriter should ask beyond agent’s

confidential report.-(Chapter 14)

A Physical Hazard

B Moral Hazard

C SA is too high

D Pure Risk

Question 28

After doing the need analysis of the client, theagent advised the client to opt for ROP product.

But the client refused. According to ethical

business practices what will the agent do ?-

(Chapter 18)

A Enquire about the refusal from the client

B Suggest an alternative plan


19/152

Manish Suryawanshi

C Pass on to the superior

D Pass on to the other agent

Question 29

Generally insurance companies do not hold the

premium in case of a fraud ormisrepresentation. However, due to which of

the following circumstances the insurer can

retain the premium of the policyholder-

(Chapter 11)

A Fraudulent claim

B Indisputability clause

C Redressal procedure

D Pending decision from Ombudsman


20/152

Manish Suryawanshi

Question 30

According to IRDA agent’s code of conduct,

what is the best method of showing the

amount of commission earned by the advisor -

(Chapter 16)

A Signed copy of sales illustration

B Brochure

C Hand written declaration by agent

D Verbal communication to customer

Question 31

With pooling of risks an insurance company

pools the premium collected from several

individuals to insure them against similar risks.At what circumstances will the insurance


21/152

Manish Suryawanshi

companies pool the risk of a life insurance and

health insurance together? -(Chapter 5)

A Under no circumstances

B Under conditions of the reinsurer

C Under conditions of the reinsurer

D As per company policy

Question 32

In case the customer has stopped making

payment for the premium of the policy. Whatare the two most important things required in

order to reinstate the policy? -(Chapter 10)

A Reinstatement Fee and Proof of continuing

good health

B Premium cheque and health declaration


22/152

Manish Suryawanshi

C Only health certificate

D Premium cheque with arrears

Question 33

If the customer has invested money in a

pension plan from company A and buys anannuity from company B, what is the nature of

transaction?-(Chapter 7)

A Life Long Annuity

B Life Long AnnuityC Reinsuring Annuity

D deferred Annuity

Question 34


23/152

Manish Suryawanshi

If a policy holder buys a policy from the advisor

and lodges a complaint, it should be treated as :

-(Chapter 18)

A Same for all policies sold by advisor

B Same for all policies sold by the advisor

except corporate clients

C Only for policy for which complaint has been

given

D None applicable

Question 35

An investor holds a wide range of shares. If the

Reserve Bank of India announces a series of

significant interest rate increases, the prices of

these shares are most likely to -(Chapter 10)

A Become volatile


24/152

Manish Suryawanshi

B Decrease

C Increase

D Remain unchanged

Question 36

In life insurance business if a person is workingin calculating premium rates of insurance

products, then he is mostly likely a member of -

(Chapter 10)

A institutes of actuaries of IndiaB insurance institute of India

C Charted institute of insurance

D Insurance institute of risk management

Question 37


25/152

Manish Suryawanshi

In a life insurance policy it is later found that

the person doesn’t have insurable interest then

the contract is -(Chapter 14)

A expired

B reviewed

C reviewed

D Valid

Question 38

If both parents of proposer died in their thirtiesdue to heart attack what is the kind of peril or

hazard the proposer has? -(Chapter 14)

A Insurable hazard

B moral hazard

C non insurable hazard


26/152

Manish Suryawanshi

D Physical hazard

Question 39

Raunak earns 80,000 per month as salary. He

has taken a House loan of Rs. 500000. What will

be the maximum amount of EMI that can be

charged by the Bank to recover the loan

amount?-(Chapter 5)

A Rs. 32000 per month

B Rs. 24000 per month

C Rs. 40000 per month

D Rs. 48000 per month

Question 40


27/152

Manish Suryawanshi

Frequent switching is not advisable in ULIP plan

because it increase -(Chapter 15)

A Investment Risk

B Risk of death

C Uncertainty of return

D Chances of lapse

Question 41

According to insurance terminology which of

the following is correct?-(Chapter 14)

A Lung cancer is a hazard whereas smoking is a

peril

B Smoking is a hazard and lung cancer is a peril

C Lung cancer is a peril and smoking is a moral

hazard


28/152

Manish Suryawanshi

D Smoking is a moral hazard whereas lung

cancer is a peril.

Question 42

An insurance agent sold two policies to two

different persons having the same policy term.

He declares the commission to each of them.

The commission of one of the policy is more

than the other. What should be the reasons for

this difference?-(Chapter 14)

A Risk profile of both the policyholder are

different

B Age of both the candidate are different

C Both have chosen different kind of policies.


29/152

Manish Suryawanshi

Question 43

Open market option under Annuity policy

would extend which of the following benefit?-

(Chapter 4)

A Ensure Better annuity rate

B Increase in the range

C Increase in return

D Switch of Funds

Question 44

Akash is an Unmarried person and employed

with company ABC and drawing a handsome

salary. He has no liabilities. What kind of plan

can be suggested to him?-(Chapter 15)

A Money Back


30/152

Manish Suryawanshi

B Term Plan

C Endowment Plan

D ULIP

Question 45

What should an agent do in order tounderstand the mental state of client in respect

to his investments in saving products-(Chapter

18)

A Fact findingB Consulting the client’s parents

C Consulting the family of the client

D Reviewing his existing investments

Question 46


31/152

Manish Suryawanshi

Net premium is equal to-(Chapter 10)

A Premium plus interest earning

B Risk premium plus interest earning

C Premium minus interest earning

D Risk premium minus interest earning

Question 47

Pooling of risk in insurance means-(Chapter 5)

A The premium collected & deposited in a pool

B All similar risks are pooled together

C Premium is pool to make claims

D Contribution of insurance company

Question 48


32/152

Manish Suryawanshi

Principle of utmost good faith will operate in

existing policy-(Chapter 3)

A Every time premium is paid

B If the policy has lapsed and it has to be

revived.

C If the insured person falls sick and is admitted

to hospital.

D If the insured person changes his job.

Question 49Both the parties to a contract must agree and

understand the same thing and in the same

sense which is called-(Chapter 3)

A Consideration.

B Legality of an object.


33/152

Manish Suryawanshi

C Consensus ad idem.

D Acceptance.

Question 50

In case of life insurance, Insurable interest must

exist-(Chapter 3)A At inception of policy

B Not needed

C At the time of claim

D Any time during the contract

Paper 12

Question 2

How riders will help the customer in lifeinsurance?


34/152

Manish Suryawanshi

A allows policyholders to customize their

insurance cover with additional benefits

B rider is like a clause

C Operative clause.

D Rider is like Preamble.

Question 3

In Daily hospitalization cash benefit scheme,

A The daily amount paid is fixed and will never

be more or less than the cost of actualtreatment.

B The insurance company may pay an

additional amount on a daily basis if the insured

is admitted to the Intensive Care Unit (ICU).


35/152

Manish Suryawanshi

C The insurance company will pay for doctor

consultation fees incurred prior to

hospitalization

D Only surgery expenses are included in daily

hospitalization benefit

Question 4

A lump sum withdrawal allowed as

commutation in pension plans is

A 1/3rd of the accumulation fund

B 1/4th of the accumulation fund

C 1/2nd of the accumulation fund

D Full withdrawal is allowed

Question 5


36/152

Manish Suryawanshi

Customer has opted for a 5 yrs guaranteed

annuity option. What will happen to annuity, if

the customer survives for 5 years after the endof guarantee period?

A paid up to 75 Yrs

B annuity will be continued for next 5 Years

C till he die

D not remembered

Question 6In term insurance if Critical illness rider claim

happens then what will happen to existing

policy

A CI benefit will cease

B CI benefit reduced from existing sum assured


37/152

Manish Suryawanshi

C CI benefit continues

D No change in policy.

Question 7

What is the main objective of taking the life

insurance policy?A Tax benefit

B Savings

C Investment

D Protection

Question 8

If person consumes alcohol- what is the type ofhazard?

A Moral


38/152

Manish Suryawanshi

B Physical

C Ethical

D Ethical & Moral both

Question 9

Group Insurance can be taken in followingrelationship

A employee- employer

B husband-wife

C family members

D society members

Question 10Where one can approach in case of dispute?

A IRDA


39/152

Manish Suryawanshi

B Consumer Forum

C District Forum

D National Forum

Question 11

Life insurance is the most important for whichage group

A Young

B Pre- retirement

C Retirement

D children

Question 12


40/152

Manish Suryawanshi

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%

Question 13

Kamal is willing to pay 60000/- per annum forhis ULIP policy. What should be the SA in case

he wants to avail the tax benefits?

A 1 lacs

B 3 lacs

C 2 lacs


41/152

Manish Suryawanshi

D 60 Thousand

Question 14

The regulations issued by the IRDA, require that

the decision on the proposal must be conveyed

to the proposer 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

Question 15

Family floater health Insurance plan covers

A All members of a Family

B Husband and Wife only


42/152

Manish Suryawanshi

C Parents only

D Children Only

Question 16

According to IRDA guidelines, how long does an

insurance company have to complete itsinvestigation of a claim?

A 30 days

B 90 days

C 120 days

D 180 days

Question 17


43/152

Manish Suryawanshi

How the Daily hospitalization cash benefit will

provide benefits to policyholder who is

hospitalized?

A Entire charges are refunded.

B Entire charges less bed charges will be paid

C A fixed amount on a daily basis is paid

irrespective of the actual cost of treatment

D Only Hospital bill will be paid

Question 18Who is a regulator, supervisor and monetary

authority of the financial system in India?

A IRDA

B SEBI

C RBI


44/152

Manish Suryawanshi

D SBI

Question 19

Indisputability clause can be enforced by the

insurance company during the

A First five years of policyB First Two years of policy

C Claim

D Inception of the policy

Question 20

To ensure that the premiums are paid out of a

legitimate source of funds cash is accepted

A Up to 50000

B Up to 99990


45/152

Manish Suryawanshi

C Up to 100000

D Without any limit

Question 21

If there is no claim in a year than what will be

the benefit to the customer as NO CLAIMBONUS

A Discount in next year premium

B Increase in Sum Assured next year

C Loans facility

D No benefit

Question 22

An individual is said to be competent to enter

into a contract if they are


46/152

Manish Suryawanshi

A 18 year old

B 21 year old

C 23 year old

D 25 year old

Question 23

Maximum time for investigation in disputed

claim?

A 1 month

B 2 months

C 3 months

D 6 months

Question 24


47/152

Manish Suryawanshi

The Ombudsman’s powers are restricted to

insurance contracts of value not exceeding?

A 50 lakhs

B 30 lakhs

C 25 lakhs

Question 25

In which section of Policy document,

Information about the location of the insurance

Ombudsman had written?A Operative clause

B Attestation

C Information statement

D Endorsements


48/152

Manish Suryawanshi

Question 26

In Cumulative bank deposit the interest that in

normally compounded on what basis.

A Monthly

B Quarterly

C Half YearlyD Annually

Question 27

The premium for accidental death benefit rider

must not exceed

A 15% of base policy premium

B 25% of base policy premium

C 30% of base policy premium

D 40% of base policy premium


49/152

Manish Suryawanshi

Question 28

If the annual premium for a plan is 32000 and a

frequency loading of 4% is added in a quarterly

premium what is the amount that needs to be

paid.

A 8000

B 8320

C 9456

D 9240

Question 29

What amount of insurable interest does an

individual have in his own life?

A 20,000


50/152

Manish Suryawanshi

B 50,000

C Up to the sum assured taken in the plan

D Unlimited

Question 30

Ombudsman passes an award within whichtime

A 1 month

B 2 months

C 3 months

D 6 months

Question 31


51/152

Manish Suryawanshi

If the license of an agent has been disqualified

by a designated authority in 2010 then the

person can apply for a license in which year.

A 2013

B 2015

C 2017

D 2020

Question 32

Under the hospital care rider what is thepayout made

A 10% of the sum assured

B Specified amount multiplied by the number

of days the policyholder is hospitalized


52/152

Manish Suryawanshi

C expenses incurred per day multiplied by no.

of days stay in the hospital

D 100% of Sum Assured

Question 33

If the agent recommends the client toterminate an endowment plan and take a

whole life in order to earn higher commission

its termed as

A Switching

B Doing a financial planning

C Churning

D Fact Finding


53/152

Manish Suryawanshi

Question 34

Mr. Denny is married and has 2 children and his

parents are alive. He has taken a family floater

plan. Under the plan who all will be covered.

A Denny

B Denny and his wife

C Denny, his wife and children

D Denny, his wife, his children and his parents

Question 35

Amit has taken a G-Sec and has parted with it

mid way as he required the money with the

intention of not getting the interest. What will

he get?

A Discounted Value


54/152

Manish Suryawanshi

B Principle amount

C Discounted Value with persistency bonus

D Principle with persistency bonus

Question 36

If bonus is given under a plan the additionalpremium added is known as

A Loading

B Investment

C Frequency

D Interest

Question 37Nomination can be in favor of how many

people?


55/152

Manish Suryawanshi

A One person

B Two persons

C Three persons

D It can be any number

Question 38

Suresh is suffering from Asthma and the policyis been done on joint life basis and the need for

nomination under the plan will be as

A Joint life policy

B Not Possible

C 50:50

D Not Applicable

Question 39


56/152

Manish Suryawanshi

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 have impact in his commission.

Question 40

Within how many days will the underwriter

needs to inform the policyholder regarding thestatus of the policy.

A 10 days

B 15 days

C 30 days

D 45 days


57/152

Manish Suryawanshi

Question 41

Certificate from the village panchayat

A Will be considered as standard age proof

B Will be considered as non standard age proof

C Will not be accepted

D Will be verified first

Question 42

What is the maximum sum assured under a

micro insurance

A 10000

B 25000C 50000

D 100000


58/152

Manish Suryawanshi

Question 43

Varun wishes to pursue a career in insurance

and wishes to be in a department which

calculates the level of premium. In which

department should he join?

A Actuary

B Underwriter

C Claim Department

D Accounts

Question 44

If Naresh wishes to take the tax benefit of the

full premium paid which is 60000, what amount

of sum assured should he avail in a ULIP plan.


59/152

Manish Suryawanshi

A 2 lacs

B 3 lacs

C 5 lacs

D 6 lacs

Question 45

Ashish is looking at different plans of insurance

for protection at the lowest premium. Which is

the best plan for him?

A Term plan

B Endowment plan

C Whole life plan

D Money back plan.

Question 46


60/152

Manish Suryawanshi

The insurance act of 1938 created which of

these.

A IRDA

B Tariff Advisory Committee

C Tariff Advisory Committee

D LIC

Question 47

Ashu is an illiterate person and his proposal

form was filled by Nishu, then what is theadditional 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 bond.


61/152

Manish Suryawanshi

C Thumb impression of Ashu has to be taken.

D Ashu needs to be medically examined.

Question 48

Harsh’s policy matured, however he was paid

only 25% of the sum insured in spite of all hispremiums been paid on time. This indicates

that his policy is a

A Term plan.

B Endowment plan.C Money back plan.

D Wholelife plan.

Question 49


62/152

Manish Suryawanshi

The Authority of COPA is limited to what

amount at the district level.

A 10,00,000.

B 20,00,000.

C 50,00,000

D 1,00,00,000.

Question 50

In case of a term plan the maximum premium

of the accidental rider can be.

A 100% of basic premium.

B 50% of basic premium.

C 30% of basic premium.

D 35% of basic premium.


63/152

Manish Suryawanshi

=======================================

===================

English IC 33 Paper 13 (2014-New Syllabus )

Question 1

In case of a term plan the maximum premiumof the accidental rider can be.

A 100% of basic premium.

B 50% of basic premium.

C 30% of basic premium.

D 35% of basic premium.

Question 2

With reference to the principle of indemnity a

life insurance policy is a.


64/152

Manish Suryawanshi

A Insurance contract.

B Indemnity contract.

C Value contract.

D Major life contract.

Question 3

In the personal statement, Harish declares that

he consumes alcohol twice every week. This is a

A Moral hazard.

B Moral peril.

C Physical hazard.

D Physical peril.

Question 4


65/152

Manish Suryawanshi

Micro insurance is made specifically for people

from.

A High income.

B Middle class.

C Low income.

D Affluent class.

Question 5

The reduction in the benefit illustration shows

what.

A Charges.

B Mortality.

C Interest.

D Inflation.


66/152

Manish Suryawanshi

Question 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

Question 7

If a contract is signed by a 15 years old boy, this

contract will be

A Null and void

B Invalid

C Voidable


67/152

Manish Suryawanshi

D Valid

Question 8

If a life insurance policy is issued with a lien, it

will be mention in

A ProvisoB Schedule

C Terms & conditions

D Endorsement

Question 9

Available Loan amount under a life Insurance

policy is generally based ona

A Total paid premium

B Sum Assured


68/152

Manish Suryawanshi

C Surrender value

D Paid up value

Question 10

De- tarrification is a process by which pricing of

InsuranceA Rises

B Decreases

C Reaches at a level as per industry trends

D Insurance can price their product on their self

past experiences.

Question 11


69/152

Manish Suryawanshi

As per Regulation for protection of

Policyholder’s interest 2002 (IRDA), Which

insurer will have a grievance redressal System

A Some Specific Insurer

B Those Insurer who did not created Insurance

Ombudsman System

C All insurer

D It is optional

Question 12Which body has created a call center for

logging a complaint

A Life Insurance Council

B IRDA

C Insurance Association


70/152

Manish Suryawanshi

D Insurance Institute of India

Question 13

What is the key function of NIA

A Provide suggestion for Premium calculation

B To be an active link between Global market &Indian Life Insurance Industry

C Design, implement and operate an insurance

training

D Regulate the investment of funds by LifeInsurance company

Question 14

After maturity In a Unit Linked Life Insurance

Policy, customer does not get received Maturity


71/152

Manish Suryawanshi

in a lump sum. What is the possibility of

receiving it in installments if it is not a annuity

plan

A He has switched his fund

B He has opted for Settlement option

C He has he has redirected his past premium.

D Policy was lapsed on the time of maturity

Question 15

Gautam wants to purchase a Kisan Vikas Patra.What is the most suitable place to purchase it

A Bank

B Insurance Company

C Post Office

D Share Market


72/152

Manish Suryawanshi

Question 16

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

Question 17

During Fact finding, rating is mentioned ‘3’. This

Indicates

A Risk apatite of client

B His future aspiration


73/152

Manish Suryawanshi

C Commitment to need

D Willingness to pay

Question 18

Raunak wants to purchase a cheapest plan

which can provide financial security to hisdependent. Which plan should be offered

A Term Plan

B Term Plan with return of premium

C Pure Endowment plan

D Unit Linked Plan

Question 19

For tax Saving Someone wants to fixed deposit

in bank. What duration is required for it?


74/152

Manish Suryawanshi

A 3 years

B 5 years

C 7 years

D 2 years

Question 20

Incase 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 Depends on case to case

Question 21


75/152

Manish Suryawanshi

If insured gets the two advance payment in the

5yrs and in the maturity he gets rest of sum

assured. What type of policy it is

A Money back policy

B Convertible plan

C Term plan

D Endowment policy

Question 22

Which is correct in relation to InsuranceBroker?

A Insurance broker is represents insurance

buyer and remunerated by the insurance

company

B Insurance broker is represents insurance

buyer and remunerated by the Client


76/152

Manish Suryawanshi

C Insurance Broker gets money from both

Insurance company as well as from Client fo

selling Insurance

D None are correct

Question 23

Shailesh and ankit want to retire in the age of

65yrs. But shailesh pays more monthly

payment than ankit for same amount of policy.

Why?

A Shailesh is older than ankit.

B Shailesh’s income is more than Ankit’s

income

C Shailesh & Ankit want it that way

D Option 1 & 3 are correct


77/152

Manish Suryawanshi

Question 24

What will be lien amount in 3rd year as

compared to the 4th year of lien.

A It is higher

B Decrease

C Slightly higherD Slightly lower

Question 25

Within how many years a complaint can be

made through consumer protection act.

A One year

B Two years

C Three years

D Five years


78/152

Manish Suryawanshi

Question 26

In which plan weekly premium payments are

accepted.

A Health Insurance

B Group InsuranceC Micro Insurance

D Macro Insurance

Question 27

One person wants to take term plan for 20 lakh

and wants to take ADB rider, he is not sure of

how much sum assured he needs to take for

ADB rider. What is your suggestion?

A Needs to take expert’s suggestion


79/152

Manish Suryawanshi

B Equal to base cover

C Any Amount he can take if he is ready to pay

premium

D 50% of SA max.

Question 28Basing on which criteria the qualification of

Agent is determined?

A Address of the agent

B Domicile status

C Qualification of Agent

D DOB of Agent

Question 29


80/152

Manish Suryawanshi

Which tax rate is applicable, in case of Client

pays the premium of 5000/- and suffers illness

before maturity?

A Nil

B 10%

C 20%

D 30%

Question 30

A customer surrenders his policy on Feb 2010As per Agents code of conduct, an agent can

get a new policy from this customer from Feb

which year

A 2011

B 2012


81/152

Manish Suryawanshi

C 2013

D 2014

Question 31

If we hold 100 units in gold ETF, It means that

how much grams we have in physicalA 5 or 10 grams

B 10 or 15 grams

C 15 or 25 grams

D 50 or 100 grams

Question 32

In case of life insurance, the insurable interestshould exist

A At the time of taking the policy


82/152

Manish Suryawanshi

B At the time of claim

C At the time policy matures

D At the time of taking the policy & claim

Question 33

Pooling of insurance applies to

A all types insurance

B All types of insurance except Motor insurance

C Only life insurance

D Only Non-life insurance

Question 34

Insurance companies are required to honor theawards passed by the Insurance Ombudsman

within how may days


83/152

Manish Suryawanshi

A 10 days

B 15 days

C 20 days

D 25 days

Question 35

If IRDA is unable to discharge its functions or

duties, Central Government

A Has the power to supersede the IRDA by

issuing notification.

B Has the power to supersede the IRDA by

issuing a bill in parliament

C Has the power to supersede the IRDA by

issuing draft

D Can make changes in IRDA law


84/152

Manish Suryawanshi

Question 36

An elderly person wants to use tax efficient

investment and invests in senior citizen saving

scheme. Its the impact in his taxation

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 investment would be deducted from

taxable income

Question 37

What are the benefits to the policyholder

Under Surgical care rider?


85/152

Manish Suryawanshi

A Number of days admitted in hospital &

surgery expenses in full

B Number of days admitted in hospital &

surgery expenses in partial

C Treatment cost of surgery subject to terms &

conditions

D Lump sum amount what he has incurred

Question 38

Health insurance policy holder takes treatmentin a hospital which doesn’t have cashless

facility. How the policy holder will get benefited

A Need to spend and Get claim from the insurer

B Need to add that hospital as TPA

C Need not to claim


86/152

Manish Suryawanshi

D Need to switch to the another insurer

Question 39

During financial planning session if the agent

finds out the following needs, which one should

be given the top priority. Needs: Income

protection, Childs education, marriage and

emergency funds.

A Childs education

B Marriage

C Emergency funds

D Income protection

Question 40


87/152

Manish Suryawanshi

National insurance academy has the following

main functions

A Calculating premium

B Interact with the government

C Training

D Mortality assumptions

Question 41

Health insurance rider and critical illness rider

in classified under

A Life and non life respectively

B Both life insurance

C Both non life insurance

D Nonlife and life respectively.


88/152

Manish Suryawanshi

Question 42

Pure risk is classified under

A Economic risk

B Speculative risk

C Financial risk

D Insurable risk

Question 43

If a valid claim is delayed by the insurer then

the interest for the same will have to be paid by

the insurance after how many days from the

date of admission of the claim?

A 10 days

B 20days

C 30 days


89/152

Manish Suryawanshi

D 60 days

Question 44

As per IRDA regulations IGMS should be

mandatory set up by

A Only by few selected insurersB Only by non life

C Some life and non life

D By all insurers.

Question 45

If a customer has mentioned he is a drinker in

the proposal form, the insurance company can

exclude this hazard and mention it in which

part of the policy document?


90/152

Manish Suryawanshi

A Provisio

B Endorsements

C Operative clause

D Terms and Conditions

Question 46

When can an insurance company give more

than 35% first year commission?

A When the insurance company is in the first 10

years of operation

B If the agent has worked with the company for

more than 5 years

C If the agent has worked with the company for

more than 10 years


91/152

Manish Suryawanshi

D If the agent is doing more than 3 policies in a

month.

Question 47

When should an agent disclose the commission

which he will earn from the product which he is

going to sell

A When the customer asks him

B After the fact finding process

C After quantifying the needD After the product is recommended to the

client

Question 48


92/152

Manish Suryawanshi

In a pension plan illustration what are the parts

which shows the benefit for an annuitant.

A Insurance coverage

B Annuity part

C Guaranteed and non guaranteed part

D Vesting age

Question 49

Mr. shailsh has an endowment policy with 30

years policy term, he has paid for eight years.The sum assured Rs.8,00,000/- and

accumulated bonus Rs.60,000/-. What is the

paid up value if bonus accumulated and if not

bonus accumulated?

A 213333 & 273333

B 213333 & 229333


93/152

Manish Suryawanshi

C 229333 & 273333

D 229333 & 293333

Question 50

The consequences of these risks which will

affect specific individuals or local communitiesin nature is called as

A Pure risk

B Financial risk

C Particular risk

D Physical hazard

=======================================

===================


Question 1


94/152

Manish Suryawanshi

What is the disadvantage to the insurer in case

the persistency falls

A Lower profits

B Higher profits

C Increased Liability

D Decreased Life fund

Question 2

For the customer whose claim has been refused

by the company, the three places where he/sheshould follow up are – Ombudsman, IRDA

Customer Grievance Cell and ………………………..

A Consumer Forum

B COPA

C Sebi


95/152

Manish Suryawanshi

D Life Insurance Council

Question 3

If a policy with premium of Rs 5000 has

matured, how much will be deducted when the

maturity claim arises

A Nil

B 1%

C 5%

D 5%

Question 4

When a person is investing in Debt Mutual

Fund, what is the primary objective

A Good Returns


96/152

Manish Suryawanshi

B Regular Income

C Safety

D Liquidity

Question 5

If the employer has insurable interest in the lifeof an employee, what kind of policy is this?

A Surety insurance

B Keyman Insurance

C Partnership Insurance

D Debtor Insurance

Question 6


97/152

Manish Suryawanshi

In the sales illustration, the reduction of the

actual benefit amount is mainly due to

deduction of

A Commission

B Charges

C Non guaranteed benefits

D Reversionary Bonus

Question 7

The concept of indemnity is based on the keyprinciple that policyholders should be

prevented from

A Insuring existing losses.

B Making false insurance claims.

C Paying excessively for insurance cover.


98/152

Manish Suryawanshi

D Profiting from insurance.

Question 8

The client of reinsurer are

A Insurance companies

B Banks

C Asset Management Companies

D Brokers

Question 9

A customer gets periodic benefits without any

claim and then when he dies during the term of

the policy, his nominees gets the sum insured.

What type of policy is this ?

A Endowment


99/152

Manish Suryawanshi

B Term

C Money Back

D Whole of Life

Question 10

For assessing the risk of a group healthinsurance policy, which of the following

information is the most critical

A Group lifestyle

B Employees

C Age of the group

D Medical history of group

Question 11


100/152

Manish Suryawanshi

According to Insurance Brokers Association of

India, what is the most appropriate relationship

between Insurer and Broker?

A Insurance broker represent the client and the

insurer remunerate the broker

B The client represent the broker and the

insurer remunerate the broker

C Insurer represent both client and broker

remuneration

D Broker only service the client

Question 12

A low persistency ratio for the insurance

company means that:

A The customers are satisfied with the products


101/152

Manish Suryawanshi

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

Question 13

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


102/152

Manish Suryawanshi

D Only one fourth of the fund can be

withdrawn

Question 14

What is the stipulated time frame within which

an insurer is supposed to respond after

receiving any communication from its

policyholders?

A 24 hours

B 1 day

C 10 days

D 30 days

Question 15


103/152

Manish Suryawanshi

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

Question 16

The proposer can withdraw from the contract,

if they disagree with the terms and conditionsof the Policy, within a ‘free look-in period’ of

A 15 days from the date of receipt of the policy

document

B 20 days from the date of receipt of the policy

document


104/152

Manish Suryawanshi

C 25 days from the date of receipt of the policy

document

D 30 days from the date of receipt of the policy

document

Question 17

In the case of life insurance, insurable interest

should exist

A At the inception of the policy

B At the time of a claimC At the time of every renewal premium

payment

D All the above occasion

Question 18


105/152

Manish Suryawanshi

In which of the following plan remaining part of

the Sum Assured is paid on maturity?

A Endowment Plan

B Convertible Plan

C Money Back plan

D Term Plan

Question 19

Rakesh wants to buy a policy primarily for Risk

Cover but at the end of the term he wants toget at least some return. Under which policy he

will get these benefits

A Endowment plan

B ROP plan

C Whole life plan


106/152

Manish Suryawanshi

D Ulip

Question 20

Payment/Investments in Kishan Vikash Patra

under post office schemes is done

A Regularly with no fixed termB Lump Sum with no fixed term

C Lump Sum for fixed period of time

D Regularly for fixed period of time

Question 21

Prashant buys an Endowment Plan with a sum

assured of Re. 100000 and wants to make use

of tax benefit under the policy for whole SA.


107/152

Manish Suryawanshi

How much premium would help him avail this

benefit

A Less than 10000

B More than 10000

C Less than 20000

D More than 20000

Question 22

Under the IRDA guidelines for Claim

settlement, any queries or additionaldocuments can asked from the claimant within

A 5 days from the receipt

B 10 days from the receipt

C 15 days from the receipt

D 20 days from the receipt


108/152

Manish Suryawanshi

Question 23

Law of Large number helps the insures to

A Calculate the premium

B Increase the profitability

C Increase the profitability

D Declare the bonus

Question 24

A person with a criminal background due to

Financial fraud would come under which hazard

A Physical

B MoralC Occupation

D Not applicable


109/152

Manish Suryawanshi

Question 25

Whose signature is required on attestation of

the policy?

A Agent

B Policy holderC Authorized officials of insurer

D Proposer

Question 26

What is the ceiling of tax exemption under 80 c.

A 1 lakh

B 1.5 lakhsC 2 lakhs

D 3 lakhs


110/152

Manish Suryawanshi

Question 27

What is the limit of tax benefit that can be

availed of under Section 80C.?

A 75K

B 1LC 1.5 L

D 50K

Question 28

Mr. Shyam is having 9 year old child. Which

product is not to be given priority?

A Health plan

B Child Plan

C Life Insurance


111/152

Manish Suryawanshi

D Retirement Plan

Question 29

Mr. Raj is married and having 2 children. Which

plan can he take that can cover his whole

family?

A Health Insurance

B Family floater

C Life Insurance

D Retirement

Question 30

Which is the best option to manage risk?

A Retain

B Transfer


112/152

Manish Suryawanshi

C Avoid

D None

Question 31

What is the major reason for self employed to

take insurance.A Save Tax

B Fluctuating income

C High Returns

D Protection

Question 32

What is the major reason for conducting factfinding exercise?

A Need analysis


113/152

Manish Suryawanshi

B Understand about company

C Introduction of agent

D Understanding the Customer

Question 33

If 5% bonus is given every year then for a SA of1 lakh, what will be the payout after 15 years in

a simple revisionary bonus system?

A 60000

B 75000

C 100000

D 5000

Question 34


114/152

Manish Suryawanshi

The guidelines for annual assumed growth rate

are given by

A Life Insurance Council

B IRDA

C Actuaries

D Underwriter

Question 35

Pricing element is done by

A IRDA

B Insurance Company

C Life Insurance Council

D CII

Question 36


115/152

Manish Suryawanshi

AML Program of every insurer to include

_______________, apart from Procedure,

Training and audit.

A Inspection by IRDA

B Audit by Finance Ministry

C Appointment of Principal Compliance Officer

D Inspection by Auditor General

Question 37

Payment of premiums by cash cannot exceed ____________ .

A Rs. 1, 00,000

B Rs. 50,000

C Rs. 25,000

D Rs. 60,000


116/152

Manish Suryawanshi

Question 38

Ravi was expecting a claim amount of Rs. 12,

00,000 from insurer. But it was rejected. He

feels that it is repudiated on wrong reasons.

Which consumer forum can he approach?

A National Commission

B District Level

C State Level

D Mandal Level

Question 39

Under section 80C the maximum tax deduction

that can be gained for premium paid is _______

in a financial year.


117/152

Manish Suryawanshi

A Rs. 75,000

B Rs. 1, 10,000

C Rs. 1, 20,000

D Rs. 1, 50,000

Question 40

Vijay received his policy bond on 11th June, 201

Due to some personal problems he has decided

to cancel the policy on 8th July, 201 Can he

cancel or return the policy?A No, as 15 days period is over

B Yes, as it is within 1 year

C No, as 20 days period is over

D Yes, as it is within 3 months


118/152

Manish Suryawanshi

Question 41

Naresh is married and his daughter Sneha is 3

years old. Which plan can he take?

A Term & Children Plan

B Annuity Plan

C Whole Life PlanD Health Plan

Question 42

Vinay doesn’t want to take insurance on

himself. He feels that his family will survive with

the funds available in the bank and monthly

rentals received from village. This comes under

Risk ______

A Transfer


119/152

Manish Suryawanshi

B Control

C Retaining

D Avoidance

Question 43

Naveen, aged 32 years, has taken money backplan. He is a teacher by profession. Naveen

referred Prasad to Ram. Prasad is also teacher.

Ram who is an agent advised Prasad to take

money back plan as he is of same age (33

years). Is it the right advice? Why?

A Yes, as Naveen and Ram are of same age.

B No, customers needs are different

C Yes, as both are teachers

D No, as there is an age difference.


120/152

Manish Suryawanshi

Question 44

Ajay has bought an endowment insurance plan

with a cover of Rs. 10, 00,000 for a term of 15

years. Ajay died after 4 years. Insurance

company will not treat this claim as ________

claim.

A Normal

B Fraudulent

C Early

D General.

Question 45

Rajesh is 34 years old and having 2 sons,

Vineeth and Sumith. The level of risk appetite,

Rajesh belongs is _______.


121/152

Manish Suryawanshi

A Middle Level

B Top Level

C Low Level

D High Level

Question 46

What is the minimum Sum Assured allowed for

Micro Insurance?

A 5000

B 10000

C 15000

D 20000

Question 47

How many days does the Free Look Period last?


122/152

Manish Suryawanshi

A 15 days

B 30 Days

C 45 days

D 60 Days

Question 48

The Ombudsman’s powers are restricted to

insurance contracts of what value?

A 1Lakh

B 10 Lakhs

C 15Lakhs

D 20 Lakhs

Question 49


123/152

Manish Suryawanshi

Under current regulations what is the

maximum stake that the Foreign Partner in

Insurance Company hold?

A 49%

B 50%

C 60%

D 26%

Question 50

What does MDRT Stand for?

A Million Dollar Round Table

B Major Double Rupees Tag

C Major Dollar Round Tag

D Mean Disposition Residence Time


124/152

Manish Suryawanshi

=======================================

===================


Question 1

Where would you have to go if you wanted tobuy a Kisan Vikas Patra?

A Any Nationalized Bank

B Insurance Company

C Post Office

D Mutual Fund Company

Question 2

What is the limit of tax benefit that can be

availed of under Section 80C?


125/152

Manish Suryawanshi

A 50,000/-

B 15,000/-

C 10,000/-

D 150,000/-

Question 3

Ombudsman has to give his decision within

how many days?

A 15 Days

B 30 Days

C 2 Months

D 3 Months

Question 4


126/152

Manish Suryawanshi

In a case, the underwriter felt that the risk

associated with the person would decrease

with time, then he would accept the case with

A A clause

B A Lien

C A Loading

D A Loading

Question 5

A person suffering from lung cancer is asmoker. Here smoking can be termed as

A Peril

B Hazard

C Risk

D Uncertainty


127/152

Manish Suryawanshi

Question 6

Which of the following is a Non Standard Age

Proof

A PAN Card

B Certificate of BaptismC Certificate from Village Panchayat

D Certificate from School or College

Question 7

Venu, aged, 32, had a Insurance cover of 10,

00,000/- . He was approached by an advisor

who made some analysis and told him that his

Insurance need is higher than 10, 00,000 and

suggested that he surrenders the existing policy

and buys a new one. This is an example of


128/152

Manish Suryawanshi

A Churning

B Proposing

C Underwriting

D Switching

Question 8

If the recommendation of the agent has been

rejected by the client, the agent should:

A Ask the client to fill the proposal form

B Find out the reasons for refusal

C Must try to convince the client to follow his

recommendation

D Must try to force the client to follow his

recommendation


129/152

Manish Suryawanshi

Question 9

Which of the following is true regarding Family

Floater Health Insurance Plan?

A A Family Floater Plan is the same as a

Individual Plan

B Only self and spouse can be covered in this

plan

C Any number of people may be covered in this

plan.

D The insurance cover is shared amongst the

family members in no fixed Proportion.

Question 10

In what proportion is the cover in a FamilyFloater Plan shared?

A 25% each


130/152

Manish Suryawanshi

B 15% each

C 50% each

D No Proportion

Question 11

To identify suitable products their mainfeatures and their tax treatments is the role of:

A Agent

B Insured

C Policy Holder

D Insured person

Question 12In Cumulative Deposits the interest is normally

compounded in a


131/152

Manish Suryawanshi

A Annually

B Semi Annually

C Quarterly

D Monthly

Question 13

The rider which is given by the Insurance

company pays for the treatment costs in the

event of hospitalization of the insured person is

calledA Critical Illness Rider

B Hospitalization Care Rider

C Accidental Benefit Rider

D Surgical Care Rider


132/152

Manish Suryawanshi

Question 14

Age proof submitted from Village Panchayat is:

A Standard and accepted

B Not standard but accept

C Not at all accepted

D Accepted with SSLC book/mark list

Question 15

Mr. X is married with wife, 2 children and aged

parents Health premium is allowed for

A X only

B X with wife

C X with wife and kidsD X with all


133/152

Manish Suryawanshi

Question 16

Maximum Life cover

A 20 times annual salary

B 500000

C 1500000

D 4000000.

Question 17

As per AML regulation, it allows cash premium

not over than

A Rs.20000

B Rs.25000

C Rs.5000D Rs.50000


134/152

Manish Suryawanshi

Question 18

Bank interest is accumulated

A Monthly

B Yearly

C Quarterly

D Once in 6 months

Question 19

_____ controls monetary system in India

A RBI

B IRDA

C SEBI

D Constitution


135/152

Manish Suryawanshi

Question 20

Hospitalization rider has the following benefit:

A Person receives fixed amt daily for no of days

in hospital

B Person receives an amount equal to the

expense.

C Person receives a fixed amount of 1000 daily.

D Person receives benefit only if he is

hospitalized for 3 days minimum.

Question 21

Total annual premium Rs 32000 quarterly

loading done 4 %. Hence actual quarterly

premium will be

A 7680


136/152

Manish Suryawanshi

B 9320

C 8320

D 6600

Question 22

License of an agent was withdrawn in June2010 due to malpractice. He can reapply for his

license in

A 2015

B 2014

C 2013

D 2017

Question 23

A Professional insurance market carries…..


137/152

Manish Suryawanshi

A Need – Based Selling

B Product – Based Selling

C Commission – Based Selling

D Company – Based Selling.

Question 24

Insurance Market divided into

A Endowment and Money Back Insurance

B Life and General (non-life) Insurance

C Government and Private Insurance Markets

D Health and Saving Insurance Markets

Question 25

What is Bancassurance?


138/152

Manish Suryawanshi

A Giving insurance policies to Banks.

B Selling insurance policies through Banks.

C Giving guarantee to policies by Banks.

D None of the above.

Question 26

The “Risk” contains….

A Peril and Hazard

B Level

C Uncertainty

D All of the above.

Question 27

Grouping the similar risks by InsuranceCompany is called as….

A Grouping of Risk


139/152

Manish Suryawanshi

B Risk Grading

C Risk Assessment

D Pooling of Risk

Question 28

The function of Insurance works on…..

A Risk Transfer

B Risk avoid

C Risk retention.

D All of the above.

Question 29

A contract comes into existence when………

A One party makes an offer which the other

party accepts unconditionally.


140/152

Manish Suryawanshi

B One party makes an offer which the other

party put extra conditions.

C One party makes an offer where other party

gives counter offer.

D One party makes an offer which the other

party receives the offer.

Question 30

Mr. Kumar’s wife is suffering from blood

cancer. Doctors lost their hope on her live. Mr.

Kumar would like to take Life Insurance policy

on wife’s name in order to get monitory

benefit. Insurance company rejects this

proposal on the grounds of…….

A Anti Money Laundry

B Legality of object or purpose


141/152

Manish Suryawanshi

C Capacity of paying future premiums.

D All of the above

Question 31

Under this situation may leads to breach of the

duty of utmost good faith.A Non disclosure of material facts.

B Concealment of a material fact

C Fraudulent misrepresentation of facts.

D All of the above.

Question 32

Principle of Indemnity denotes….. A Insurance can not be used to make a profit


142/152

Manish Suryawanshi

B Insurance should not taken by high risk

people.

C Insurance can not taken by politicians.

D All of the above.

Question 33The principle of utmost good faith is not

applicable to

A Facts of common knowledge

B Facts of law

C Facts those are not material.

D All of the above.

Question 34


143/152

Manish Suryawanshi

What is the main source for insurance company

to get information of proposer?

A Advertisements.

B Proposal form.

C Conducting interviews.

D Telephonic conversations.

Question 35

What are the factors involved in calculating

Surrender Value of the Policy?

A Number of year’s premium paid.

B Number of premiums payable.

C Sum Assured

D All of the above.


144/152

Manish Suryawanshi

Question 36

What are the different types of Assignments?

A Full Assignment and Partial Assignment

B Conditional and Absolute Assignment.

C Life Assignment and General Assignment.

D Standard Assignment and Non-StandardAssignment.

Question 37

Mr. Kumar is taken one life insurance policy

with ABC Company. But he is not satisfied with

the policy benefits. What Mr. Kumar can do

under this situation?

A He can not do any thing, because be received

the policy bond.


145/152

Manish Suryawanshi

B He can file a complaint against insurance

company in court.

C He can send back the policy document to

insurance company with in 15 days from policy

receiving date.

D Serve notice to insurance company on policy

benefits.

Question 38

Moral Hazard reflects the …….

A Intentions and attitude of Proposer.

B Habits and Hobbies of Proposer.

C Occupation and Residence of Proposer.

D Medical and Personal History of Proposer.


146/152

Manish Suryawanshi

Question 39

Income replacement methods equates Human

Life Value (HLV) to

A Future value of Present earnings.

B Present value of future earnings.

C Present value of previous earnings.D Future value of previous earnings.

Question 40

Agent will be called as…..

A Primary Underwriter

B Main Underwriter

C Chief Underwriter.D Information Underwriter.


147/152

Manish Suryawanshi

Question 41

Mr. Rajesh has taken policy from ABC insurance

company for Rs. 500000 Sum Assured by paying

Rs. 50,000 premium per year. Company

declared 5% Simple Reversionary bonus, what

is bonus amount?

A Rs. 2500/-

B Rs. 25000/-

C Rs. 250000/-

D Rs. 5000/-

Question 42

The two basic elements of most life insurance

plans are

A Guaranteed Benefit and Non-guaranteed

Benefit.


148/152

Manish Suryawanshi

B Interest Benefit and Bonus Benefit.

C Death Benefit and Maturity Benefit.

D Bonus Benefit and Tax Benefit.

Question 43

Term Insurance Plan will give….

A Only Death Benefit.

B Only Maturity Benefit.

C Only Bonus Benefit.

D Only Tax Benefit.

Question 44

Low risk products give…..

A High Returns


149/152

Manish Suryawanshi

B Low Returns

C Moderate Returns

D Good Returns

Question 45

Who will maintain Mutual Fund Schemes?

A Mutual Fund Management Societies

B Mutual Fund Management Systems.

C Asset Management Companies.

D Asset Maintenance Company Limite4.

Question 46

Which is the primary saving need among allsaving needs?

A Insurance


150/152

Manish Suryawanshi

B Purchasing House

C Investment.

D Contingency/ Emergency Fun4.

Question 47

Mr. Rao has Rs. 10, 00,000 cash with him. Hewould like to use this amount for his daughter’s

marriage which is going to happen with in Nine

months. He would like to get some returns

from this money in these 9 months period.

What is the best option to park his money?

A Insurance

B Shares

C Fixed Deposit in Bank

D Mutual Funds.


151/152

Manish Suryawanshi

Question 48

Which of the following product not comes

under Section 80 ( C ), income tax act 196

A National Saving Certificates.

B Equity Linked Saving Schemes.C Principle component of home loan.

D Premium paid for Health Insurance Plan.

Question 49

Mr. Suresh purchase one pension plan and

accumulated Rs. 9,00,000 amount in his

pension fund. He would like to utilize

commutation benefit before taking pension.

What is amount Mr. Suresh can withdraw as

commutation?


152/152

A Rs. 3, 00,000/-

B Rs. 4, 50,000/-

C Rs. 90,000/-

D Rs, 4, 85, 468/-

Question 50

Customer has to pay the amount in regular

intervals to create purchase price or Pension

Fund We call this phase as

insurance basic question

Documents

Transcript of insurance basic question