English IC33 Chapter 6 MockTest
Question 1
What does NAV stands for in an ULIP?
A Net Average Value
B Net Assured Value
C Net Asset Value
D Net Assumed Value
Question 2
tate which of the statement is correct
A Life insurer does not provide guarantee for unit
values in case of ULIP
B Life insurer does provide guarantee for unit values
in case of ULLIP
C Both the statements are correct.
D Both the statements are incorrect.
Question 3
As per the IRDA Circular of November 2010, All
Universal Life products shall be know as
______________
A Unit Variable Plans
B Variable Insurance Plans
C Unit Linked Insurance Plan
D Term Assurance
Question 4
Which among the following is a non-traditional life
insurance product?
A Term assurance
B Universal life insurance
C Endowment insurance
D Whole life insurance
Question 5
What does inter-temporal allocation of resources
refer to?
A Postponing allocation of resources until the time
is right
B Allocation of resources over time
C Temporary allocation of resources
D Diversification of resource allocation
Question 6
Where was the Universal Life Policy introduced
first?
A USA
B Great Britain
C Germany
D France
Question 7
State which of the statement is correct.
A In Ulip the policy holder can surrender the plan
post 5 yrs c[f
B In Ulip the policy holder cannot surrender the
plan post 5 yrs of policy.
C Iln Ulip the policy holder cannot surrender the
plan post 3 yrs of policy
D Policyholder cannot surrender the plan
Question 8
Mr Rahul wants to purchase a Ulip. However he is
skeptical of losing his money in equity and hence
wants a fund which would give him moderate
returns along with security. Which fund will you
suggest to him?
A Balanced Fund
B Debt Fund
C Equity fund
D None of the above
Question 9
Which of the below is correct with regards to
universal life insurance? Statement I: It allows policy
owner to vary payments Statement II: Policy owner
can earn market based rate of return on cash value
A I is true
B II is true
C I and II are true
D I and II are false
Question 10
Mrs Ananya wants to purchase a ULIP and has
shown interest in investing in a fund where major
portion should be invested in equity related
instruments. Which fund would you suggest for
her?
A Balanced Fund
B Debt Fund
C Money Market Fund
D Equity Fund
Question 11
Inter-temporal allocations means
A Allocation on time
B Allocation across time
C Allocation before time
D Allocation after time
Question 12
Which among the following is a limitation of
traditional life insurance products?
A Yields on these policies is high
B Clear and visible method of arriving at surrender
value
C Well defined Gash and savings value component
D Rate of return is not easy to ascertain
Question 13
All of the following are characteristics of variable
life insurance EXCEPT:
A Flexible premium payments
B Cash value is not guaranteed
C Policy owner selects where savings reserve is
invested
D Minimum Death benefit is guaranteed
Question 14
All of the following is true regarding ULIP's EXCEPT:
A Unit holder can choose between different kind of
funds
B Life insurer provides guarantee for unit values
C Units may be purchased by payment of a single
premium or via regular premium payments.
D ULIP policy structure is transparent with regards
to the insurance expenses component
Question 15
Which are the two kinds of non-traditional life
insurance products ?
A Variable insurance plans and Unit Linked
Insurance Plans
B Term Assurance Plan and Variable insurance plans
C Unit Linked Plans and Pure Endowment Plan
D Variable insurance plan and Pure endowment
plan
Question 16
Which of the below statement is incorrect?
A Variable life insurance is a temporary life
insurance policy
B Variable life insurance is a permanent life
insurance policy
C The policy has a cash value account
D The policy provides a minimum death benefit
guarantee
Question 17
Which of the below statement is true regarding
ULIP's?
A Value of the units is determined by a formula
fixed in advance
B Investment risk is borne by the insurer
C ULIP's are opaque with regards to their term,
expenses and savings components
D ULIP's are bundled products
Question 18
Who among the following is most likely to buy
variable life insurance?
A People seeking fixed return
B People who are risk averse and do not dabble in
equity
C Knowledgeable people comfortable with equity
D Young people in general
Question 19
Which is the fund where major portion of the
money is invested in Government Bonds, Corporate
Bonds, Fixed Deposits?
A Debt Fund
B Balanced Fund
C Money Market Fund
D Equity Fund
Question 20
What does unbundling of life insurance products
refers to?
A Correlation of life insurance products with bonds
B Correlation of life insurance products with
equities
C Amalgamation of protection and savings element
D Separation of the protection and savings element
Question 21
Mr Arunesh is paying Rs 'I lac annually in a plan. The
returns of his plan would depend upon the
movements of the capital market. Which product
has he invested in?
A Term Assurance Plan
B Pure Endowment Plan
C Unit Linked Plan
D Annuity Plan
Question 22
The Cash value component in traditional products is
A Pre-planned
B Well defined
C Not well defined
D Not pm-planned
Question 23
When was Variable Life Insurance first introduced in
United States?
A 1970
B 1965
C 1977
D 1980
Question 24
As per IRDA norms, an insurance company can
provide which of the below nontraditional savings
life insurance products are permitted in India?
Choice I: Unit Linked Insurance Plans Choice II:
Variable Insurance Plans
A I only
B II only
C I and IL both
D Neither I nor II
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English IC33 Chapter 7 MockTest
Question 1
Which of the below best describes an ordinary
annuity?
A Equal cash flows at equal time intervals forever
B Equal cash flows at equal time intervals for a
specific time period
C Lumpy cash flows at equal time intervals forever
D Lumpy cash flows at equal time intervals for a
specific time period
Question 2
Plans that are designed and marketed by Life
Insurance and financial institutions towards
providing an old age income is known as
A Public Pension
B Occupational Pension
C Personal Pension
D lmmdiate Pension
Question 3
_______________ is a term used to refer pensions
that have some level of Government administration
A Insurance Pension Fund
B Public Pension Fund
C Private Pension Fund
D Market Pension Fund
Question 4
Which of the below risk cannot be addressed
through pensions?
A Life longevity
B Inflation
C Investment risk
D Early death
Question 5
Mr Rohit has investsa lump sum amount in a
pension plan and immediately starts to receive
annuity on a monthly basis, which kind of Annuity
has he taken?
A Deferred Annuity
B Corn mutation
C Payments
D Immediate Annuity
Question 6
___________ is an annuity with an infinite life and
making continuous annual payments.
A APR
B Amortised loan
C Perpetuity
D Principal
Question 7
Types of pension schemeWhat are the various types
of annuity schemes
A Public Pension
B Occupational Pension
C Personal Pensions
D All of the above
Question 8
Which among the below statements is true?
Statement I: Every pension is an annuity Statement
II: Every annuity is a pension
A I and li are true
B I and II are false
C I is true and fl is false
D I is false and II is true
Question 9
With relation to annuities, explain what does
"Liquidation period" refer to?
A Period between the purchase of annuity and
commencement of payments
B Period during which insurer makes annuity
payments
C Time taken to build up the corpus
D Insolvency period
Question 10
In an ordinary annuity, payments are made or
received _____________ of each period.
A At the beginning
B At the end
C On maturity
D 6 months before expiry
Question 11
Public Pension Schemes are publically managed and
are typically funded on a _______ basis
A Pay as you go
B Pay as you do
C Pay as you Want
D All of the above
Question 12
What is the basic contingency associated with
pensions?
A Mortality
B Morbidity
C Post-retirement income security
D Disability
Question 13
Factor which can reduce post retirement living
standards in real terms is known as
A Investment Risk
B Longevity Risk
C Inflation
D Replacement Risk
Question 14
From the choices mentioned below, select the one
that cannot be categorised as an annuity.
A Rs. 2000 received today, Rs. 2000 received next
year and Rs. 2000 received in 2 years
B Electricity Bill
C Car payments
D Mortgage payments
Question 15
Amount of annuity payable is inversely related to
which of the following: 1. Principal sum of money 2.
Investment period 3. Rate of return 4. Duration of
annuity payments
A 1 only
B 2 only
C 3 only
D 4 only
Question 16
Who bears the investment risk in a fixed benefit
annuity?
A Insurer
B Insured
C State
D Risk pool
Question 17
Mr. Rohit has already opted for Deferred Annuity
however he wants to know how much amount can
he withdraw as lumpsum before the start of annuity
phase
A Accumulated Value
B Fund Value
C 1/3 rd of Fund Value
D He can withdraw the entire amount if need be
Question 18
Mr Amit is nearing retirement, he has a lumpsum
ammount to invest, he requires regular cash flow to
help cover basic living expenses, Which type of
annuity plan Amit should purchase
A Immediate Annuity
B Deferred Annuity
C Money back annuity
D Assured Annuity
Question 19
Amount of annuity payable depends on which of
the following: 1. Principal sum of money 2.
Investment period 3. Rate of return 4. Duration of
annuity p ayments
A 1 and 2
B 1,2 and 3
C 1,3 and 4
D 1,2,3 and 4
Question 20
Mr Raju want a pension plan in which after he dies
the annuity is paid to his spouse for her life time.
Which type of Annuity Mr. Raju should purchase
A Joint Life last surviver with return of purchase of
price
B lmmdiate Annuity
C Joint Life Annuity
D Deferred annuity
Question 21
In which annuity plan the money is invested for a
period of time until the annuitant is ready to
receive annuities
A Immediate Annuity
B Deferred Annuity
C Open market
D Commutation
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English IC33 Chapter 8 MockTest
Question 1
Who provides public pensions?
A State
B Employers
C Insurers
D NGO's
Question 2
Health Insurance policies can be obtained by
___________
A Group
B Individual
C Family
D All of the above
Question 3
Who cannot be covered under a family floater
policy?
A Children
B Spouse
C Parents-in-law
D Maternal uncle
Question 4
RDA stands for ____________
A International Regulatory & Development
Authority
B Indian Regulatory & Development Authority
C Insurance Regulatory & Development Authority
D Income Regulatory & Development Authority
Question 5
Primary care can be described as ___________
A Care provided to patient in an acute setting
B Care provided in hospitals
C First point of contact for people seeking
healthcare
D Care provided by Doctors
Question 6
Which of the below group would not be eligible for
a group health insurance policy?
A Employees of a company
B Credit card holders of an organisation
C Professional association members
D Group of unrelated individuals formed for the
purpose of availing group health insurance
Question 7
What benefits are given by the government to
promote health insurance?
A Cash Benefits
B Premium Discontinuance
C No claims Bonus
D Tax Benefits
Question 8
What is the waiting period for hospitalisation in an
regular health insurances policy?
A 12 hrs
B a months
C 30 days
D 24 hrs
Question 9
According to the regulation passed by RDA in Feb
2013, all health insurance policies are required to
give information related to ______________
A Grace period
B Freelook period
C Features & Benefits
D Processes related to underevrting
Question 10
Health insurance is designed to handle which of the
following risks?
A Mortality
B Morbidity
C Infinity
D Serendipity
Question 11
Identify the form of insurance that is depicted in the
following scenario. Scenario: Patient pays the health
provider and is subsequently reimbursed by the
health insurance company.
A Service Benefit
B Direct contracting
C Indemnity
D Casualty
Question 12
_________________ is an insured who undergoes
treatment after getting admitted in a hospital.
A Inpatient
B Outpatient
C Day patient
D House patient
Question 13
The term TPA refers to _____________ . (Answer
with regards to health insurance)
A The Primary Associate
B To Provide Assistance
C Third Party Administrator
D Third Party Assistance
Question 14
_______________ is the feature in which an health
insurance policy holder can transfer his policy with
gained credit and time bound exclusion from one
insurer to another.
A Network Provider
B Portablity
C TPA
D Mediclaim
Question 15
Any person who has completed 60 or more years of
age as on the date of commencement or renewal in
health insurance policy is called ______________
A Family floater
B Group Health Insurance
C Senior Gitizen
D Mediclaim
Question 16
As per RDA regulations issued in February 2013,
what is the grace period allowed beyond the expiry
date of the policy, for renewal?
A 15 days
B 30 days
C 45 days
D 60 days
Question 17
Moral hazard by health insurance companies can
result in ______________
A Community rating
B Adverse selection
C Abuse of health insurance
D Risk pooling
Question 18
Some common terms in health insurance are
A Inpatient
B Outpatient
C Day care centre
D All the above
Question 19
What is the procedure in which and indvidual can
get the complicated surgical procedures without
getting admitted?
A In patient
B Out patient
C Day care
D Normal Admission
Question 20
A policy holder need to have a _____________ to
avail the benefit of cashless facility under Health
insurance policy.
A Employees ID card
B Identification card
C Policy document
D Smart Gard
Question 21
Mr Ajay is interested in buying a health insurance
plan. However he wants to include his wife as well
as his daughter in the same plan. Which feature
would be applicable to him?
A Individual
B Family Floater
C Senior Citizen
D Group Health Insurance Plan
Question 22
In health insurance policy premium will be based on
A Occupation
B Income
C Age
D Height
Question 23
_____________ refers to a hospital/health care
provider enlisted by an insurer to provide medical
services to an insured on payment by a cashless
facility.
A Day care centre
B Network provider
C Third Party Administrator
D Domiciliary
Question 24
Mr. Rahul has recently undergone a surgery in a
non-network hospital. How can he settle his claim?
A Cashless
B TPA
C Reimbursement
D Direct Payment
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========================
English IC33 Chapter 9 MockTest
Question 1
Mr Suresh has taken a home loan, unfortunately he
dies after 2 years of purchasing the home. He leaves
behind a pending home loan, what planning could
have been dne by him inorder to secure his home?
A Term Insurance
B Life Insurance
C Term & MRI
D MRI
Question 2
Ajay pays insurance premium for his employees.
Which of the below insurance premium will not be
treated deductible as compensation paid to
employee? Choice I: Health insurance with benefits
payable to employee Choice II: Keyman life
insurance with benefits payable to Ajay
A I only
B II only
C Both I and II
D Neither I nor II
Question 3
Which of the below losses are covered under
keyman insurance?
A Property theft
B Losses related to the extended period when a key
person is unable to work
C General liability
D Losses caused due to errors and omission
Question 4
Mahesh ran a business on borrowed capital. After
his sudden demise, all the creditors are doing their
best to go after Mahesh's assets. Which of the
below assets is beyond the reach of the creditors?
A Properly under Mahesh's name
B Mahesh's bank accounts
C Term life insurance policy purchased under
Section 6 of MWP Act
D Mutual funds owned by Mahesh
Question 5
Which of the below option is true with regards to
MWP Act cases? Statement I: Maturity claims
cheques are paid to policyholders Statement II:
Maturity claims cheques are paid to trustees
A I is true
B 11 is true
C Both I and if are true
D Neither I nor II is true
Question 6
Keyman insurance indemnify _______________
incurred but compensates with fixed monetary sum
as specified on the insurance policy
A Actual Losses
B Actual Expenses
C Early Premiums
D Fixed Monetary sum is specify in the policy
Question 7
What is the objective behind Mortgage Redemption
Insurance?
A Facilitate cheaper mortgage rates
B Provide financial protection for home loan
borrowers
C Protect value of the mortgaged property
D Evade eviction in case of default
Question 8
Mahesh has taken as decreasing term life insurance
policy to repay the balance of his mortgage loan if
he dies before its full repayment... what policy has
he opted for
A Term Insurance
B Life Insurance
C Term & M RI
D MRI
Question 9
Pravin is a scientist working with a pharma
company. He holds a key position in the
pharmaceutical company and his untimely loss can
lead to financial strainto the business. To minimise
the loss in his absence which insurance policy must
the company take
A Keyman Insurance policy
B Term Insurance
C Life Insurance policy
D All of the above
Question 10
Which of the below policy can provide protection to
home loan borrowers?
A Life Insurance
B Disability Insurance
C Mortgage Redemption Insurance
D General insurance
Question 11
Miss Julie is an employee of the network 5 and
works as a customers ervice executive there.
Currently she is not associated with any business
risk/ loss, can company take a keyman insurance for
Miss Julie
A Yes the company can take key man insurance
B No they cannot take key man insurance as she is
not the key member
C Some concessions can be mad e
D Her designation does not qualify for the same
Question 12
Mortagae Redemption Insurance facilitate _______
A Higher Mortgage Rate
B Cheaper Mortgage Rate
C Higher interest Rate
D Higher Profits
Question 13
Employer may take out a key person"s insurance
policy on the ___________ and ______________ of
any employee
A Life of a!! employee
B Employer cannot insure a key mars
C Only health of the employees
D Life or Health of Any employees
Question 14
In Keyman insurance in case the key person dies
benefit is paid to ________
A Nominee first
B Legal heir
C Company
D Trustee
Question 15
A policy is effected under the MWP Act. If the
policyholder does not appoint a special trustee to
receive and administer the benefits under the
policy, the sum secured under the policy becomes
payable to the ______________
A Next of kin
B Official Trustee of the State
C Insurer
D Insured
Question 16
MRI is also know as _________
A Loan Protector Policy
B Money recommend insurance
C Loan Profit Policy
D None of the above
Question 17
In the keyman insurance premium is paid by the
__________
A Cornpany
B Employee
C Director
D None of the above
Question 18
Mr Prafull is a director of company his monthly
income is 11,00,000, the company has taken a Key
insurance for Mr. Prafull his sum assured is linked to
_______
A Sum Assured of Policy
B Porifitability of Company
C Income of Prafull
D None of the above
Question 19
Full form of MRI
A Redemption monetary Value
B Mortagage Redemption Insurance
C Money Reducing Value
D Mortgage Reduction Insurance
Question 20
Mortgage redemption insurance (MRI) can be
categorised under ____________
A Increasing term life assurance
B Decreasing term life assurance
C Variable life assurance
D Universal life assurance
Question 21
Which insurance is used for business protection
purpose
A Children education plan
B Keyman Insurance policy
C Re-insuance
D Term insurance
Question 22
XYZ is director of a company, Company has taken
Keyman insurance for him, If something happens to
Mr XYZ then benefit will paid to __________
A his Nominee
B His Legal Heir
C Company
D None of the above
Question 23
The practice of charging interest to borrowers who
pledge their property as collateral but leaving them
in possession of the property is called
________________
A Security
B Mortgage
C Usury
D Hypothecation
Question 24
Mr. Yogesh has taken a life insurance policy under
MWP Act in 2013, he wants to surrender his policy
after 2 yrs . Can he surrender the policy?
A Yes he can surrender the policy
B Surrender option is not available with MWI3A
policy
C He can surrender after 5 years of policy
completion
D He can partially surrender the policy
Question 25
What is the full Form MWP Act?
A Married Wealth Pension Act
B Montage Wealth Property Act
C Money Montage Loan Act
D Married Women Property Act
Question 26
Mr. Dinesh has taken a policy in MWP Act,but he
has not appointed a special trustee to receives
benefits then sum assured will payable to
A Official trustee
B His Legal Heir
C His Wife
D To Company
Question 27
Who are the beneficiaries in MWP Act?
A Wife & children
B Only Policy holder
C Parents
D Friends
Question 28
In which year MWP Act was formed?
A 1999
B 1998
C 1974
D 1940
Question 29
Which of the below option is true with regards to
MWP act cases? Statement I: Death claims are
settled in favour of nominees Statement II: Death
claims are settled in favour of trustees
A I is true
B II is true
C Both I and II are true
D Neither I nor II is true
Question 30
The sum assured under keyman insurance policy is
generally linked to which of the following?
A Keyman income
B Business profitability
C Business history
D Inflation index
Question 31
In the keyman insurance the premium paid by the
company is treated as __________
A Profit of the business
B Business Expense
C Loan of the company
D Sum Assured of the business
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English IC33 Chapter 11 MockTest
Question 1
Prospectus is a __________ Document used by the
company that provides details about the products
A Informal
B Formal legal
C Illegal
D None of the above
Question 2
Mr Yogesh want to buy a life insurance policy, as
per KY C he has to submit Age proof, Income proof
&
A Education certificate
B Property documents
C Photo, Identity Proof & Address Proof
D Tehsil card
Question 3
Which of the below statement is correct with
regards to a policy returned by a policyholder
during the free look period?
A The insurance company will refund 100% of the
premium
B The insurance company will refund 50% of the
premium
C The insurance company will refund the premium
after adjusting for proportionate risk premium for
the period on cover: medical examination expenses
and stamp duty charges
D The insurance company will forfeit the entire
premium
Question 4
Freelook period is also called __________
A Cooling period
B Free period
C Cancellation period
D Free trail period
Question 5
Which of the below is not a valid address proof?
A PAN Card
B Voter ID Card
C Bank passbook
D Driving licence
Question 6
A _______________ is a formal legal document
used by insurance companies that provides details
about the product.
A Proposal form
B Proposal quote
C Information docket
D Prospectus
Question 7
What is the full form of KYC
A Know your customer
B Knowledge your 'Client
C Know your cheque detail
DNone of the above
Question 8
Who is the primary underwriter of the Customers
A Company
B Development Office
C Agent
D Director
Question 9
Mr I has taken policy on 1st Jan 2014 but he is not
satisfied with the policy, he wants to cancel the
policy, so in how many days Mr. I can cancel the
policy
A 60 Days
B 15 Days
C 35 Days
D 40 Days
Question 10
What is the full form of PMLA
A Protection of money Laundering
B Premium of money Laundering
C Prevention of money Laundering
D None of the above
Question 11
Matters of health, habbit, occupation, Income &
family details need to mentioned in __________
Reports
A Agent's Reports
B Medical Reports
C Medical Referee Advice Report
D Company Report
Question 12
Which of the below is an example of standard age
proof?
A Ration card
B Horoscope
C Passport
D Panchayat certificate
Question 13
Money laundering is the process of bringing
____________ money into an economy by hiding its
___________ origin so that it appears to be legally
acquired.
A Illegal, illegal
B Legal, legal
C Illegal, legal
D Legal, illegal
Question 14
Which of the below can be attributed to moral
hazard?
A Increased risky behaviour following the purchase
of insurance
B Increased risky behaviour prior to the purchase of
insurance
C Decreased risky behaviour following the purchase
of insurance
D Engaging in criminal acts post being insured
Question 15
Mr Jay Singh is 50 years of age and wants a life
insurance with high sum assured. Which additional
documents will be required to process the case
A Medical examination Reports
B Pan Card
C Bank Pass Book
D Property Document
Question 16
Money Laundering is an offence which is punishable
by fine upto __________
A 5000000
B 50000
C 500000
D 100000
Question 17
Which of the below features will be checked in a
medical examiner's report?
A Emotional behaviour of the proposer
B Height, weight and blood pressure
C Social status
D Truthfulness
Question 18
The application document used for making the
proposal is commonly known as the __________
A Application form
B Proposal form
C Registration form
D Subscription form
Question 19
Insurance policy is contract between ________
A Company & Partner
B Agency & Company
C Insured & Policy holder
D Insurer & Policy holder
Question 20
An Affidivit by the way of self declaration is the part
of ____________
A Standard Age proof
B Non Standard Age proof
C Address Proof
D None of the above
Question 21
Which of the following is a standard age proof
A School or College Leaving Certificate
B Horoscope
C Ration Card
D Certificate from the P'anchayat
Question 22
From the below given age proof documents,
identify the one which is classified as non-standard
by insurance companies.
A School certificate
B Identity card in case of defence personnel
C Ration card
D Certificate of baptism
Question 23
In case the policyholder is not satisfied with the
policy, he I she can return the policy within the free-
look period i.e. within _____________ of receiving
the policy document
A 6O days
B 45 days
C 30 days
D 15 days
Question 24
During the _______________ period, if the
policyholder has bought a policy and does not want
it, he I she can return it and get a refund.
A Free evaluation
B Free look
C Cancellation
D Free trial
Question 25
The proposal has been defined under IRDA
Regulations on
A 2000
B 2003
C 2002
D None of the above
Question 26
Which of the following documents is an important
part of KYC documents.
A i) Photo ii) Age Proof iii) ID Proof iv) Address Proof
v) Income Proof
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