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A Reliance Capital Company

Reliance Life Insurance


A Reliance Capital Company

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Userid : 21419355
User Name : SANDEEP DHAWAN
Syllabus: NEW
Question Correct Answer Answer Ticked
Q1. For assessing the risk of a group health insurance policy, which of the
following information is the most critical 3 1
1. Group lifestyle
2. Employees
3. Age of the group
4. Medical history of group

Q2. How many days does the Free Look Period last? 1 1
1. 15 days
2. 30 Days
3. 45 days
4. 60 Days

Q3. Life insurance company determine the level of risk based on 2
1
1. Future expenses.
2. Claim experiences.
3. Present expenses.
4. Targeted bonus rates.

Q4. How are perils and hazards normally distinguished under term insurance p
olicies? 2 3
1. Perils are medical factors which influence the risk of dying and haz
ards are lifestyle activities which influence the risk of dying.
2. Perils are risks that policyholders will die before a specified date
and hazards are factors which could influence that risk.
3. Perils are factors which affect the risk being insured and hazards a
re the size of the risk being insured.
4. Perils are factors which could influence an insured event occurring
and hazards are the actual events which will trigger a payout

Q5. Vijay received his policy bond on 11th June, 201 Due to some personal pr
oblems he has decided to cancel the policy on 8th July, 201 Can he cancel or ret
urn the policy? 1 1
1. No, as 15 days period is over
2. Yes, as it is within 1 year
3. No, as 20 days period is over
4. Yes, as it is within 3 months

Q6. Which one of the following is possible in retaining the risk? 2
1
1. Retaining the ownership in the policy
2. Not possible as life has many risks.
3. Is possible by transferring risk to the policy holder
4. Is possible by Re-insuring oneself

Q7. Mr. shailsh has an endowment policy with 30 years policy term, he has pa
id for eight years. The sum assured Rs.8,00,000/- and accumulated bonus Rs.60,0
00/-. What is the paid up value? 3 Not Attemped
1. 213333
2. 229333
3. 273333
4. 293333

Q8. In case the customer has stopped making payment for the premium of the p
olicy. What are the two most important things required in order to reinstate the
policy? 1 Not Attemped
1. Reinstatement Fee and Proof of continuing good health
2. Premium cheque and health declaration
3. Only health certificate
4. Premium cheque with arrears

Q9. 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?
1 Not Attemped
1. Discounted Value
2. Principle amount
3. Discounted Value with persistency bonus
4. Principle with persistency bonus

Q10. In case of a term plan the maximum premium of the accidental rider can b
e. 3 Not Attemped
1. 100% of basic premium.
2. 50% of basic premium.
3. 30% of basic premium.
4. 35% of basic premium.

Q11. Rajesh is 34 years old and having 2 sons, Vineeth and Sumith. The level
of risk appetite, Rajesh belongs is _______. 4 Not Attemped
1. Middle Level
2. Top Level
3. Low Level
4. High Level

Q12. What are the factors involved in calculating Surrender Value of the Poli
cy? 4 Not Attemped
1. Number of years premium paid.
2. Number of premiums payable.
3. Sum Assured
4. All of the above.

Q13. What are the different types of Assignments? 2 Not Atte
mped
1. Full Assignment and Partial Assignment
2. Conditional and Absolute Assignment.
3. Life Assignment and General Assignment.
4. Standard Assignment and Non-Standard Assignment.

Q14. Shamsher has a health insurance policy of ` 1, 00,000 individually and f
rom his company for ` 2, 00,000. He falls sick and got hospitalized. His hospita
l bill ran to ` 50,000. He claimed this amount from his individual policy. Also,
he placed the request with his company for group policy claim, which was reject
ed. The reason for rejection is. 1 Not Attemped
1. Indemnity contract.
2. Value contract.
3. Deemed contract.
4. Rolling contract.

Q15. An insurance contract commences when 2 Not Attemped
1. Quotation is signed by proposer.
2. First Premium Receipt is issued.
3. Proposal Form is signed.
4. Policy Document is received by policyholder.

Q16. Within how many days will the underwriter needs to inform the policyhold
er regarding the status of the policy. 2 Not Attemped
1. 10 days
2. 15 days
3. 30 days
4. 45 days

Q17. Which of the following information does not appear in the First Premium
Receipt? 2 Not Attemped
1. method and frequency of premium payment
2. Date of commencement of last premium
3. Date the policy matures
4. Date the last premium will be paid

Q18. In underwriting the economic value of the person is determined by what?
4 Not Attemped
1. The occupation of the person
2. The financial history of his family
3. The income that he earns
4. Human Life Value

Q19. Rakesh purchased a life insurance policy. While writing a proposal form
he hide that he practices mountaineering. Sadly he died in an accident while cli
mbing Mount Everest. The insurers rejected the claim.What is the reason for reje
ction? 4 Not Attemped
1. Innocent misrepresentation.
2. Fraudulent misrepresentation.
3. Concealment.
4. Non-Disclosure.

Q20. Whose signature is required on attestation of the policy? 3
Not Attemped
1. Agent
2. Policy holder
3. Authorized officials of insurer
4. Proposer

Q21. Mr. Vinu got a job recently, he cant afford to pay to pay the higher prem
ium as of now but in future once he settles down with his job he can pay higher
premium. Which one will be the best plan? 2 Not Attemped
1. Convertible Endowment plan
2. Convertible Term plan
3. Convertible pure Endowment
4. Convertible money back plan

Q22. In which section of Policy document, Information about the location of t
he insurance Ombudsman had written? 3 Not Attemped
1. Operative clause
2. Attestation
3. Information statement
4. Endorsements

Q23. Under current regulations what is the maximum stake that the Foreign Par
tner in Insurance Company hold? 4 Not Attemped
1. 0.48
2. 0.5
3. 0.6
4. 0.26

Q24. Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this amou
nt for his daughters marriage which is going to happen with in Nine months. He wo
uld like to get some returns from this money in these 9 months period. What is t
he best option to park his money? 3 Not Attemped
1. Insurance
2. Shares
3. Fixed Deposit in Bank
4. Mutual Funds.

Q25. Which of the following cant be ducted under section 80 c from taxable inc
ome? 3 Not Attemped
1. Pension Funds
2. Public Provident Fund
3. Employee Gratuity Fund
4. Infrastructure Bonds

Q26. The Central Bank has recently announced the decrease in interest rates.
The prices of bonds are 2 Not Attemped
1. Likely to increase.
2. Likely to decrease.
3. Will fluctuate.
4. No change is likely.

Q27. In what situation Waiting Period is applicable in a health insurance?
3 Not Attemped
1. Immediate care
2. Medical examinations
3. Pre-existing illness
4. Permanent exclusions

Q28. To avail the income tax benefit at investment stage, premium should be m
aximum 2 Not Attemped
1. 10% of S1.
2. 20% of SA.
3. 30% of SA.
4. 40% of SA.

Q29. Rohit is working as sales manager with an FMCG company. His job requires
him to travel across states. He is planning of covering his additional risk inv
olved while travelling and a savings plan. What suggestion would you give him as
an agent? 1 Not Attemped
1. To purchase an accidental rider with a savings insurance plan.
2. To purchase a health plan along with a savings insurance plan.
3. To save through fixed deposits in bank.
4. To purchase a medical plan.

Q30. Kajal is investing for the purpose of retirement at the time of vesting
Age before receiving the regular annuity she has option to withdraw/commute Upto
: 2 Not Attemped
1. 2/3rd of Accumulated Fund
2. 1/2th of Accumulated Fund
3. 1/3rd of Accumulated Fund
4. 1/4th of Accumulated Fund

Q31. Manish and Manisha is a married couple with one child. They want to plan
for savings, child education/marriage and their retirement and protection of in
come. Which should be their lowest priority? 1 Not Attemped
1. Marriage.
2. Savings.
3. Education.
4. Protection.

Q32. What is the ceiling of tax exemption under 80 c. 1
Not Attemped
1. 1 lakh
2. 1.5 lakhs
3. 2 lakhs
4. 3 lakhs

Q33. For his investment need, Ravi has parked funds in equity. The returns fr
om this form of investment can be categorized as 1 Not Atte
mped
1. High Risk.
2. Low Risk.
3. Moderate Risk.
4. No Risk.

Q34. 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 h
im? 4 Not Attemped
1. Money Back
2. Term Plan
3. Endowment Plan
4. ULIP

Q35. In which of the following an agent will collect the customers Personal da
ta, professional data and financial data 1 Not Attemped
1. Fact Finding Sheet
2. Advisor Confidential Sheet
3. Customer Data sheet
4. Personal and financial data sheet

Q36. Naresh is married and his daughter Sneha is 3 years old. Which plan can
he take? 1 Not Attemped
1. Term & Children Plan
2. Annuity Plan
3. Whole Life Plan
4. Health Plan

Q37. Which one of the following factor does not help in the Persistency ?
3 Not Attemped
1. Regular reminders about the premium to the customer
2. Flexibility of Premium payment to the customer
3. Dispatching Discharge voucher to the customer
4. Continuous servicing of the policy

Q38. When client declines the recommendation by the insurance adviser even af
ter resolving the concerns, the adviser should 2 Not Attemped
1. Persuade the client to purchase the policy.
2. Should ask for reference who might be interested in financial planni
ng.
3. Should never approach the client ever again.
4. Should do nothing.

Q39. Under which one of the following acts the maximum remuneration that can
be given to insurance agents described? 3 Not Attemped
1. Income Tax Act
2. Indian Contract Act
3. Insurance Act 1938
4. IRDA Act 1999

Q40. Which of the following falls under voidable contract? 1
Not Attemped
1. Misrepresentation
2. Lack of insurable interest
3. Fraud
4. None of the above

Q41. For the customer whose claim has been refused by the company, the three
places where he/she should follow up are Ombudsman, IRDA Customer Grievance Cell
and .. 1 Not Attemped
1. Consumer Forum
2. COPA
3. Sebi
4. Life Insurance Council

Q42. Mr. Chintamani has taken a policy from ABC Company on 2nd March 2010, bu
t unfortunately he died on 18th August 201 His death claim is considered as.....
..... 2 Not Attemped
1. Normal death claim
2. Early death claim
3. Abnormal death claim
4. Unnatural death claim

Q43. Ajay has bought an endowment with profit plan for 20 year .if he took a
Loan after 5th of commencement of policy and died before 2 year of Maturity .wha
t would be payable on maturity? 3 Not Attemped
1. only Sum assured
2. Sum Assured + Bonus
3. Sum assured plus vested bonus minus any outstanding loan/premium & I
nterest.
4. Paid up value only.

Q44. Who has the authority in insurance company to issue/cancel the agents li
cense 2 Not Attemped
1. Insurance Company.
2. Designated Person.
3. Branch Operations Team.
4. Actuary.

Q45. According to IRDA regulations the maximum percentage of first year commi
ssion to be paid to an insurance advisor is............. 2
Not Attemped
1. 0.3
2. 0.35
3. 0.4
4. 0.45

Q46. The Insurance Institute of India (III) was formed in..... 3
Not Attemped
1. 1956
2. 1999
3. 1955
4. 1947

Q47. Group Insurance can be taken in following relationship 1
Not Attemped
1. employee- employer
2. husband-wife
3. family members
4. society members

Q48. Which is the Regulation that insists that all the insurance companies sh
ould provide the information about the insurance ombudsman of that region while
sending the policy documents. 2 Not Attemped
1. Policyholder grievance Regulation
2. Policyholders Protection regulation
3. Ombudsman Regulation
4. Compliance Regulatory

Q49. A person suffering from lung cancer is a smoker. Here smoking can be ter
med as 3 Not Attemped
1. Peril
2. Hazard
3. Risk
4. Uncertainty

Q50. Mr. David an agent had helped Mr. Srinivasan to take an endowment policy
on Feb 200As srinivasan was finding it difficult to pay the premium, Mr. David
had advised him to surrender this policy and to apply for a lower premium policy
. This is called as ? 1 Not Attemped
1. Churning of the policy
2. Surrendering the policy
3. Switching the policy
4. Claiming the policy





A Reliance Capital Company

Reliance Life Insurance
A Reliance Capital Company

Branch Locator | Contact Us

Userid : 21419355
User Name : SANDEEP DHAWAN
Syllabus: NEW
Question Correct Answer Answer Ticked
Q1. In term insurance if Critical illness rider claim happens then what will
happen to existing policy 1 4
1. CI benefit will cease
2. CI benefit reduced from existing sum assured
3. CI benefit continues
4. No change in policy.

Q2. The business of Insurance is connected with................ 2
2
1. physical values of assets
2. economic values of assets
3. metaphysical values of assets
4. market values of assets

Q3. Insured can contact to seek the resolution of grievances they have again
st insurer to IRDA through: 4 4
1. Complaint@gov.ird1.in
2. insurancecomplaints@irda.gov.in
3. irdacomplaints@gov.in
4. Complaints@irda.gov.in

Q4. 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
1 3
1. Physical hazard
2. Fraudulent representation
3. Moral hazard
4. Peril

Q5. According to insurance terminology which of the following is correct?
2 3
1. Lung cancer is a hazard whereas smoking is a peril
2. Smoking is a hazard and lung cancer is a peril
3. Lung cancer is a peril and smoking is a moral hazard
4. Smoking is a moral hazard whereas lung cancer is a peril.

Q6. Which one of the following is possible in retaining the risk? 2
1
1. Retaining the ownership in the policy
2. Not possible as life has many risks.
3. Is possible by transferring risk to the policy holder
4. Is possible by Re-insuring oneself

Q7. In case the customer has stopped making payment for the premium of the p
olicy. What are the two most important things required in order to reinstate the
policy? 1 1
1. Reinstatement Fee and Proof of continuing good health
2. Premium cheque and health declaration
3. Only health certificate
4. Premium cheque with arrears

Q8. In a life insurance policy it is later found that the person doesnt have
insurable interest then the contract is 4 3
1. expired
2. reviewed
3. Void
4. Valid

Q9. 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.
2 Not Attemped
1. 8000
2. 8320
3. 9456
4. 9240

Q10. In a pension plan illustration what are the parts which shows the benefi
t for an annuitant. 3 Not Attemped
1. Insurance coverage
2. Annuity part
3. Guaranteed and non guaranteed part
4. Vesting age

Q11. What are the factors involved in calculating Surrender Value of the Poli
cy? 4 4
1. Number of years premium paid.
2. Number of premiums payable.
3. Sum Assured
4. All of the above.

Q12. What are the different types of Assignments? 2 2
1. Full Assignment and Partial Assignment
2. Conditional and Absolute Assignment.
3. Life Assignment and General Assignment.
4. Standard Assignment and Non-Standard Assignment.

Q13. An insurance contract commences when 2 2
1. Quotation is signed by proposer.
2. First Premium Receipt is issued.
3. Proposal Form is signed.
4. Policy Document is received by policyholder.

Q14. To prove ones identity in accordance with KYC process, the customer needs
to submit following document excluding .? 4 3
1. An Age Proof
2. An Identity Proof
3. An Address Proof
4. Education Proof

Q15. Parvesh bought a policy an endowment plan but after one year insurer. Fo
und he had Aorta Surgery .now which will apply by insurer: 1
4
1. Indisputability Clause (Section 45) apply
2. Principal of Indemnity apply
3. Lien Clause
4. Utmost good faith apply

Q16. What key impact will the agent have in low persistency 4
1
1. Increase more business
2. Increase in the agents earning
3. Will improve reputation
4. Will have impact in his commission.

Q17. For an insurance agent, a low persistency ratio means : 2
4
1. Loss of renewal commission
2. High client satisfaction
3. Higher reputation
4. More earning of First Year Commission

Q18. Rakesh purchased a life insurance policy. While writing a proposal form
he hide that he practices mountaineering. Sadly he died in an accident while cli
mbing Mount Everest. The insurers rejected the claim.What is the reason for reje
ction? 4 4
1. Innocent misrepresentation.
2. Fraudulent misrepresentation.
3. Concealment.
4. Non-Disclosure.

Q19. To explain the benefits of a product, the insurance adviser should
2 2
1. Provide the product brochure to the client.
2. Provide Benefit illustration documents to client.
3. Provide the terms and conditions document to the client.
4. Provide the website address to the client.

Q20. Nomination can be in favor of how many people? 4 4
1. One person
2. Two persons
3. Three persons
4. It can be any number

Q21. The client of reinsurer are 1 1
1. Insurance companies
2. Banks
3. Asset Management Companies
4. Brokers

Q22. If a policy with premium of Rs 5000 has matured, how much will be deduct
ed when the maturity claim arises 1 Not Attemped
1. Nil
2. 0.01
3. 0.05
4. 0.1

Q23. Which is the primary saving need among all saving needs? 4
4
1. Insurance
2. Purchasing House
3. Investment.
4. Contingency/ Emergency Fun4.

Q24. Who act as an intermediary by offering a trading platform for buying and
selling of shares? Chap-6 2 4
1. Bombay Share exchange
2. Bombay Stock exchange
3. Stock brokers
4. Share brokers

Q25. Time deposit account is issued by: 1 1
1. Post office
2. Bank
3. Mutual Fund
4. Life Insurance co.

Q26. In which of the following Bank pays the Interest on the deposits fund on
monthly /quarterly /half yearly/ yearly basis as chosen by depositor fund:
3 2
1. Saving Deposit
2. Cumlative deposit
3. Traditional Deposit
4. Fixed Deposit

Q27. How riders will help the customer in life insurance? 1
1
1. allows policyholders to customize their insurance cover with additio
nal benefits
2. rider is like a clause
3. Operative clause.
4. Rider is like Preamble.

Q28. The regulations issued by the IRDA, require that the decision on the pro
posal must be conveyed to the proposer within 1 1
1. 15 days of receiving the proposal
2. 20 days of receiving the proposal
3. 25 days of receiving the proposal
4. 30 days of receiving the proposal

Q29. A low persistency ratio for the insurance company means that: 3
1
1. The customers are satisfied with the products
2. The company is acquiring more business and new customers
3. A large numbers of policies have lapsed / surrendered resulting in l
oss of profit
4. The company will not declare bonus

Q30. Mr. Yash has taken an annuity on 25th August 201The benefit of the plan
will start from 25th August 201 What type of annuity plan is this? 4
Not Attemped
1. Guaranteed period annuity
2. Life annuity
3. Deferred Annuity
4. Immediate annuity

Q31. Mr. Raj is married and having 2 children. Which plan can he take that ca
n cover his whole family? 2 2
1. Health Insurance
2. Family floater
3. Life Insurance
4. Retirement

Q32. Under section 80C the maximum tax deduction that can be gained for premi
um paid is _______ in a financial year. 4 4
1. Rs. 75,000
2. Rs. 1, 10,000
3. Rs. 1, 20,000
4. Rs. 1, 00,000

Q33. In which of the following case there is no defined retirement age?
2 3
1. Public sector employees
2. Private sector employees
3. Professionals & Businessmen
4. All of the above

Q34. During fact finding, What will be the next step after Identifying client
s need 1 1
1. Quantify clients need
2. Priorities Clients Need
3. Recommending Product
4. Fill up the proposal form

Q35. Which type of questioning is very useful to gather information from clie
nts? 2 3
1. Closed Ended Questions
2. Open Ended Questions.
3. Interrogative Questions.
4. Clarification Questions.

Q36. The consequences of these risks which will affect specific individuals o
r local communities in nature is called as 3 3
1. Pure risk
2. Financial risk
3. Particular risk
4. Physical hazard

Q37. Agent who is a licensed intermediary is actually is ? 2
4
1. A legal person to act on behalf of the re-insurer
2. B.A legal person to act on behalf of the insurer
3. C.A legal person to act on behalf of the contract
4. D. An authorized agent to act on behalf of the legal company

Q38. Which one of the following factor does not help in the Persistency ?
3 3
1. Regular reminders about the premium to the customer
2. Flexibility of Premium payment to the customer
3. Dispatching Discharge voucher to the customer
4. Continuous servicing of the policy

Q39. Amit & Rashmi are newly married. Both are working couple. They want to i
nvest their savings of 100,000 annually to build corpus to make down payment for
their house 5 years from now. An adviser sold than a unit link product to meet
their requirement. This may result in 2 3
1. Ruining the long term reputation of company.
2. Opportunity of new business for adviser.
3. Bad reputation of the individual adviser.
4. Financial burden on the couple.

Q40. Which of the following falls under voidable contract? 1
2
1. Misrepresentation
2. Lack of insurable interest
3. Fraud
4. None of the above

Q41. Prashant buys an Endowment Plan with a sum assured of Re. 100000 and wan
ts to make use of tax benefit under the policy for whole SA. How much premium wo
uld help him avail this benefit 3 4
1. Less than 10000
2. More than 10000
3. Less than 20000
4. More than 20000

Q42. Mr.Sampath has taken a policy on January 10th 2006 for a term of 12 year
s. Due to financial instability he discontinued to pay the premium from 201 He d
ied on August 13th 201 What will happen to his death claim ? 2
2
1. Eligible for claim as the premium was paid from 2006 to Dec 2010.
2. Not eligible for Claim settlement
3. Claim will be settled after deducting the unpaid premium
4. Claim will be settled after the deduction of unpaid loan amount

Q43. Ajay has bought an endowment with profit plan for 20 year .if he took a
Loan after 5th of commencement of policy and died before 2 year of Maturity .wha
t would be payable on maturity? 3 3
1. only Sum assured
2. Sum Assured + Bonus
3. Sum assured plus vested bonus minus any outstanding loan/premium & I
nterest.
4. Paid up value only.

Q44. Pricing element is done by 2 2
1. IRDA
2. Insurance Company
3. Life Insurance Council
4. CII

Q45. During financial planning session if the agent finds out the following n
eeds, which one should be given the top priority. Needs: Income protection, Chil
ds education, marriage and emergency funds. 4 3
1. Childs education
2. Marriage
3. Emergency funds
4. Income protection

Q46. The face of the life Insurance industry in India is ..? 1
3
1. Life Insurance Council
2. Life Insurance Corporation
3. Insurance Regulatory Development Authority
4. Insurance Institute of India

Q47. What the name of department that is established by IRDA to deal with cus
tomer complaints? 3 4
1. Customer Complaint Department (CCD)
2. Customer Grievance Department (CGD)
3. Consumer Affairs Department (CAD)
4. Consumer Protection Department (CPD)

Q48. A client demands the information on the current status of a policy indic
ating accrued bonus. The insurer should provide communication within 1
2
1. 10 Days.
2. 15 days.
3. 20 Days.
4. 30 Days.

Q49. According to IRDA agents code of conduct, what is the best method of show
ing the amount of commission earned by the advisor 1 2
1. Signed copy of sales illustration
2. Brochure
3. Hand written declaration by agent
4. Verbal communication to customer

Q50. Which tax rate is applicable, in case of Client pays the premium of 5000
/- and suffers illness before maturity? 1 Not Attemped
1. Nil
2. 0.1
3. 0.2
4. 0.3





A Reliance Capital Company

Reliance Life Insurance
A Reliance Capital Company

Branch Locator | Contact Us

Userid : 21419355
User Name : SANDEEP DHAWAN
Syllabus: NEW
Question Correct Answer Answer Ticked
Q1. How many days does the Free Look Period last? 1 1
1. 15 days
2. 30 Days
3. 45 days
4. 60 Days

Q2. The Ombudsmans powers are restricted to insurance contracts of what value
? 4 4
1. 1Lakh
2. 10 Lakhs
3. 15Lakhs
4. 20 Lakhs

Q3. A contract comes into existence when 1 4
1. One party makes an offer which the other party accepts unconditional
ly.
2. One party makes an offer which the other party put extra conditions.
3. One party makes an offer where other party gives counter offer.
4. One party makes an offer which the other party receives the offer.

Q4. In case of life insurance, the insurable interest should exist 1
1
1. At the time of taking the policy
2. At the time of claim
3. At the time policy matures
4. At the time of taking the policy & claim

Q5. Vijay received his policy bond on 11th June, 201 Due to some personal pr
oblems he has decided to cancel the policy on 8th July, 201 Can he cancel or ret
urn the policy? 1 1
1. No, as 15 days period is over
2. Yes, as it is within 1 year
3. No, as 20 days period is over
4. Yes, as it is within 3 months

Q6. Mr. Mahesh is a software engineer. He has taken a term insurance for Rs.
30,000,00/- for 30 years. This is an example for----------------- 2
2
1. Risk retention
2. Risk transfer
3. Risk avoidance
4. Risk tolerance

Q7. In case the customer has stopped making payment for the premium of the p
olicy. What are the two most important things required in order to reinstate the
policy? 1 1
1. Reinstatement Fee and Proof of continuing good health
2. Premium cheque and health declaration
3. Only health certificate
4. Premium cheque with arrears

Q8. 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.
2 Not Attemped
1. 8000
2. 8320
3. 9456
4. 9240

Q9. In case of a term plan the maximum premium of the accidental rider can b
e. 3 3
1. 100% of basic premium.
2. 50% of basic premium.
3. 30% of basic premium.
4. 35% of basic premium.

Q10. What is the major reason for self employed to take insurance. 4
4
1. Save Tax
2. Fluctuating income
3. High Returns
4. Protection

Q11. Rajesh is 34 years old and having 2 sons, Vineeth and Sumith. The level
of risk appetite, Rajesh belongs is _______. 4 4
1. Middle Level
2. Top Level
3. Low Level
4. High Level

Q12. What are the different types of Assignments? 2 2
1. Full Assignment and Partial Assignment
2. Conditional and Absolute Assignment.
3. Life Assignment and General Assignment.
4. Standard Assignment and Non-Standard Assignment.

Q13. Where do you not find insurable interest in the following options.......
.. 4 1
1. surety-co surety
2. employee-employer
3. husband-wife
4. brother-sister

Q14. The principle of utmost good faith applies to........... 3
2
1. only insurers
2. only proposer
3. both insurers and proposer
4. neither insures nor proposer

Q15. To prove ones identity in accordance with KYC process, the customer needs
to submit following document excluding .? 4 4
1. An Age Proof
2. An Identity Proof
3. An Address Proof
4. Education Proof

Q16. As per IRDA regulations IGMS should be mandatory set up by 4
Not Attemped
1. Only by few selected insurers
2. Only by non life
3. Some life and non life
4. By all insurers.

Q17. Mr. Kumars wife is suffering from blood cancer. Doctors lost their hope o
n her live. Mr. Kumar would like to take Life Insurance policy on wifes name in o
rder to get monitory benefit. Insurance company rejects this proposal on the gro
unds of. 2 2
1. Anti Money Laundry
2. Legality of object or purpose
3. Capacity of paying future premiums.
4. All of the above

Q18. Mr.Feroz has applied for an insurance cover of Rs.4 crores. The Company
will accept or reject the proposal only after confirming from one of the followi
ng agencies. 4 4
1. Financial Inspection agencies
2. Specialized inspection agencies
3. Credit worth inspection agencies
4. Insurance Investigation Agencies

Q19. In which one of the following statement an agents commission will be disc
losed to the customer ? 2 4
1. Customer Statement of the product
2. Benefit illustration of unit linked product
3. Benefit illustration of endowment product
4. Customer data sheet with the product

Q20. During Fact finding, rating is mentioned 3. This Indicates 1
Not Attemped
1. Risk apatite of client
2. His future aspiration
3. Commitment to need
4. Willingness to pay

Q21. Mr. Kumar decides that his employees should have SSS scheme. What type o
f plan is SSS? 2 4
1. Salary saving Life plan
2. Not a specific plan
3. Salary insurance plan
4. Salary Specific plan

Q22. What is the similarity between Recurring Deposits & cumulative deposits
in a bank 1 Not Attemped
1. Guarantees
2. Taxation
3. Tenure
4. Lock in periods

Q23. If a policy with premium of Rs 5000 has matured, how much will be deduct
ed when the maturity claim arises 1 1
1. Nil
2. 0.01
3. 0.05
4. 0.1

Q24. Rakesh wants to buy a policy primarily for Risk Cover but at the end of
the term he wants to get at least some return. Under which policy he will get th
ese benefits 2 4
1. Endowment plan
2. ROP plan
3. Whole life plan
4. Ulip

Q25. Under current regulations what is the maximum stake that the Foreign Par
tner in Insurance Company hold? 4 4
1. 0.48
2. 0.5
3. 0.6
4. 0.26

Q26. Which of the following cant be ducted under section 80 c from taxable inc
ome? 3 3
1. Pension Funds
2. Public Provident Fund
3. Employee Gratuity Fund
4. Infrastructure Bonds

Q27. A lump sum withdrawal allowed as commutation in pension plans is
1 3
1. 1/3rd of the accumulation fund
2. 1/4th of the accumulation fund
3. 1/2nd of the accumulation fund
4. Full withdrawal is allowed

Q28. The rider which is given by the Insurance company pays for the treatment
costs in the event of hospitalization of the insured person is called 2
1
1. Critical Illness Rider
2. Hospitalization Care Rider
3. Accidental Benefit Rider
4. Surgical Care Rider

Q29. Ajay bought a share for Rs.110 and he sold when it was Rs.630.What had h
appened to his share? 1 1
1. Capital Appreciation
2. Capital Profit
3. Capital Benefit
4. Capital Variation

Q30. The life expectancy in India is constantly improving and is well above 6
0 years. This also brings along challenges. These challenges can be covered thro
ugh 3 3
1. Equity.
2. Bank fixed deposits.
3. Health insurance plan.
4. Savings insurance plan.

Q31. In the context of financial planning, how is the difference between real
needs and perceived needs best described? 2 4
1. Real needs are financial needs and perceived needs are non-financial
needs.
2. Real needs are actual needs and perceived needs are based on a clien
ts thoughts and desires.
3. Real needs are identified by the insurance agent and perceived needs
are identified by the client.
4. Real needs are needs which satisfy an objective and perceived needs
are needs which do not satisfy an objective.

Q32. A Professional insurance market carries.. 1 1
1. Need Based Selling
2. Product Based Selling
3. Commission Based Selling
4. Company Based Selling.

Q33. Mr. Vinodh has lot of inconvenience to reach office every day. So he wan
ts to buy an expensive car when he will have sufficient fund. Here Mr. Vinodh's
need is............. 2 2
1. Real need
2. Perceived need
3. Imaginary need
4. Important need

Q34. Which type of questioning is very useful to gather information from clie
nts? 2 2
1. Closed Ended Questions
2. Open Ended Questions.
3. Interrogative Questions.
4. Clarification Questions.

Q35. The objective of Fact Finding is to 4 4
1. Gather Clients Information only.
2. Identify only the clients needs.
3. To provide solution of companys choice.
4. Both identify clients needs & gather information.

Q36. Agent who is a licensed intermediary is actually is ? 2
2
1. A legal person to act on behalf of the re-insurer
2. B.A legal person to act on behalf of the insurer
3. C.A legal person to act on behalf of the contract
4. D. An authorized agent to act on behalf of the legal company

Q37. After undertaking financial planning exercise, the prospective client sa
id that he does not have funds for investments. To resolve this query, which ski
ll of an agent would be tested? 1 1
1. Objection handling skills.
2. Listening skills.
3. Communication skills.
4. Client information gathering skills.

Q38. What key benefit high persistency ratios have on insurance adviser?
1 1
1. High renewal income.
2. Less renewal income.
3. Fewer client bases.
4. Unsatisfied clients.

Q39. Amit & Rashmi are newly married. Both are working couple. They want to i
nvest their savings of 100,000 annually to build corpus to make down payment for
their house 5 years from now. An adviser sold than a unit link product to meet
their requirement. This may result in 2 2
1. Ruining the long term reputation of company.
2. Opportunity of new business for adviser.
3. Bad reputation of the individual adviser.
4. Financial burden on the couple.

Q40. Family floater health Insurance plan covers 1 1
1. All members of a Family
2. Husband and Wife only
3. Parents only
4. Children Only

Q41. Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He als
o has an ADB rider worth Rs. 4 lakhs. Unfortunately Baskar died in a car acciden
t. How much will be the death claim settlement? 3 3
1. Total 7 lakhs will be paid as death had taken place
2. Total 4 lakhs will be paid as death had happened due to car accident
3. Total 11 lakhs will be paid
4. Total 7 lakhs will be paid without any deduction.

Q42. When a policy is lost, insurance company take utmost care while settling
maturity claims because 2 2
1. The claim may not be genuine.
2. The policy may be pledged.
3. The facts were misrepresented.
4. There is no nomination.

Q43. Pranab is not able to pay premium for continue his policy due to some Fi
nancial problem, so he rather than surrendering the policy, what Option he has t
o convert .? 1 1
1. In to paid up and reduced Sum Assured would be payable on maturity.
2. Return of Premium on maturity
3. Deduct the underpaid premium from Sum assured and payable on Maturit
y
4. Policy was subject to lien.

Q44. Mr.Varun taken up his agency in July 5th 200 His lost his IRDA license w
hile travelling. His agency has also expired. What is the solution for Mr.Varun
? 1 4
1. Need to complete 25 hours of practical training and paying Rs.50 for
the issuance of duplicate license
2. Need to complete 50 hours of practical training and paying Rs.100 fo
r the issuance of duplicate license
3. Need to complete 25 hours of practical training and paying Rs.100 fo
r the issuance of duplicate license
4. Need to complete 50 hours of IRDA training and paying Rs.50 for the
issuance of duplicate license

Q45. Who controls and regulate the rates, advantages, terms and conditions th
at may be offered by insurers in the respect of general insurance business.
3 1
1. Insurance Regulatory and Development Authority.
2. Reserve Bank of India.
3. Tariff Advisory Committee.
4. Insurance Institute of India.

Q46. Which of the following team represents the members of GBIC ? 1
3
1. Representatives from all insurance companies
2. Representatives from all government bodies
3. Representatives from IRDA
4. Representatives from Insurance institute of India

Q47. For annuity plans, before receiving regular/periodic annuity payments, t
he individual can make a lump sum withdrawal. This is known as commutation. Up t
o what proportion of the accumulated fund can be withdrawn? 3
3
1. The entire fund can be withdrawn
2. Only half of the fund can be withdrawn
3. Only one third of the fund can be withdrawn
4. Only one fourth of the fund can be withdrawn

Q48. How Many offices of Ombudsmen the Government body has set up to Resolvin
g insured customers grievances. 2 Not Attemped
1. 15
2. 12
3. 14
4. 16

Q49. Rahul is a licensed insurance agent. As agent he must carry out his role
in accordance with 3 3
1. Companys code of conduct.
2. IRDA Acts code of conduct.
3. IRDA Regulations code of conduct.
4. Insurance Acts code of conduct.

Q50. Pankaj being a license insurance advisor has to follow code of Conduct p
rovided by: 1 1
1. Insurance Regulatory Development Authority
2. Life Insurance Company
3. Reserve Bank of India
4. SEBI.




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Question Correct Answer Answer Ticked
Q1. The Ombudsmans powers are restricted to insurance contracts of what value
? 4 4
1. 1Lakh
2. 10 Lakhs
3. 15Lakhs
4. 20 Lakhs

Q2. Insurance Market divided into 2 2
1. Endowment and Money Back Insurance
2. Life and General (non-life) Insurance
3. Government and Private Insurance Markets
4. Health and Saving Insurance Markets

Q3. Insurance business is classified into three main types: 3
3
1. Life, Non life, Micro Insurance.
2. Life, Non Life, Miscellaneous
3. Life, Non life, Re-insurance.
4. Life, Health, Micro Insurance

Q4. What is the main objective of taking the life insurance policy?
4 4
1. Tax benefit
2. Savings
3. Investment
4. Protection

Q5. Which of the following can be an example of moral hazard? 3
3
1. a family history of heart disease
2. a person working in a chemical factory
3. a person consuming alcohol
4. A teacher working in a primary school.

Q6. Ram works in a Fire cracker factory. He stocks the cracker in his house.
He runs which type of risk. 3 2
1. Speculative.
2. Particular.
3. Financial.
4. Fundamental.

Q7. Life insurance is the most important for which age group 2
1
1. Young
2. Pre- retirement
3. Retirement
4. children

Q8. What are the factors involved in calculating Surrender Value of the Poli
cy? 4 4
1. Number of years premium paid.
2. Number of premiums payable.
3. Sum Assured
4. All of the above.

Q9. Mr. Rajesh has taken policy from ABC insurance company for Rs. 500000 Su
m Assured by paying Rs. 50,000 premium per year. Company declared 5% Simple Reve
rsionary bonus, what is bonus amount? 2 1
1. Rs. 2500/-
2. Rs. 25000/-
3. Rs. 250000/-
4. Rs. 5000/-

Q10. Mr.Shanth has taken an endowment policy of 15 years with ABC insurance c
ompany. He has paid premium for 4 years and he could not pay premium for 5th and
6th year. In the 7th year he approaches the company to renew the policy. Now wh
ich of the following options will apply to him? 3 1
1. The policy will be renewed on the existing terms and conditions.
2. Mr. Shanth cannot renew the policy
3. the policy may be renewed on different terms and conditions
4. Mr. Shanth can renew the policy only on the approval of the insurer

Q11. Mr.Karan who has to go to abroad for 6 months on an official work decide
s to leave his car with his friend Mr. Jim. What will be the validity of the ins
urable interest in this case ? 3 3
1. The insurable interest between the car and jim is valid for 6 months
2. The insurable interest between the car and karan is valid for 6 mont
hs
3. The insurable interest between the car and karan is valid until he o
wns it
4. The insurable interest between the car and Jim is valid until Karans
return

Q12. An insurance contract commences when 2 2
1. Quotation is signed by proposer.
2. First Premium Receipt is issued.
3. Proposal Form is signed.
4. Policy Document is received by policyholder.

Q13. Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 a
nnual premiums but due to financial crisis is unable to make future premium. His
policy 4 Not Attemped
1. Acquires surrender value.
2. Contract comes to an end.
3. Moneys will be forfeited.
4. Acquires paid up value.

Q14. On foreclosure, if Death claim arises before the payment of the surrende
r value, the payment would be payable to: 2 1
1. Nominee
2. Legal heir of life Assured
3. Debotrs
4. forfeited the Premium

Q15. To prove ones identity in accordance with KYC process, the customer needs
to submit following document excluding .? 4 4
1. An Age Proof
2. An Identity Proof
3. An Address Proof
4. Education Proof

Q16. If both parents of proposer died in their thirties due to heart attack w
hat is the kind of peril or hazard the proposer has? 4 1
1. Insurable hazard
2. moral hazard
3. non insurable hazard
4. Physical hazard

Q17. As per IRDA regulations IGMS should be mandatory set up by 4
4
1. Only by few selected insurers
2. Only by non life
3. Some life and non life
4. By all insurers.

Q18. In Cumulative Deposits the interest is normally compounded in a
1 3
1. Annually
2. Semi Annually
3. Quarterly
4. Monthly

Q19. What is the main source for insurance company to get information of prop
oser? 2 4
1. Advertisements.
2. Proposal form.
3. Conducting interviews.
4. Telephonic conversations.

Q20. 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 d
ifference? 4 2
1. Risk profile of both the policyholder are different
2. Age of both the candidate are different
3. One has chosen Single premium policy and other has chosen regular pr
emium policy
4. Both have chosen different kind of policies.

Q21. Ashu is an illiterate person and his proposal form was filled by Nishu,
then what is the additional requirement to be taken along with the documents.
3 3
1. The policy needs to be advertised in the newspaper.
2. Nishu has to sign an indemnity bond.
3. Thumb impression of Ashu has to be taken.
4. Ashu needs to be medically examined.

Q22. What is the similarity between Recurring Deposits & cumulative deposits
in a bank 1 1
1. Guarantees
2. Taxation
3. Tenure
4. Lock in periods

Q23. In which section of Policy document, Information about the location of t
he insurance Ombudsman had written? 3 3
1. Operative clause
2. Attestation
3. Information statement
4. Endorsements

Q24. If a policy with premium of Rs 5000 has matured, how much will be deduct
ed when the maturity claim arises 1 Not Attemped
1. Nil
2. 0.01
3. 0.05
4. 0.1

Q25. Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this amou
nt for his daughters marriage which is going to happen with in Nine months. He wo
uld like to get some returns from this money in these 9 months period. What is t
he best option to park his money? 3 3
1. Insurance
2. Shares
3. Fixed Deposit in Bank
4. Mutual Funds.

Q26. Vinod being an insurance agent can offer assistance to his client Ramesh
by: 2 2
1. Providing him emergency fund.
2. Matching the product with Rameshs financial need.
3. Recommendation of product with highest return.
4. Discourse saving in a purposeful and need based manner.

Q27. National insurance academy has the following main functions 3
3
1. Calculating premium
2. Interact with the government
3. Training
4. Mortality assumptions

Q28. In 'Daily hospitalization cash benefit plan'...... 3
3
1. all the expense incurred will be reimbursed by the insurance company
2. Some percentage of the expense will be reimbursed by the insurance c
ompany
3. a fixed amount on daily basis is paid by the insurance company
4. The insurance company will pay all the expense only after consulting
hospital authority.

Q29. Mr. Ranga has taken Critical Illness Rider. In which of the following sc
enarios the insurance company will pay him...... 2 2
1. When Mr. Ranga dies due to critical illness
2. When Mr. Ranga is diagnosed a critical illness
3. When Mr. Ranga's family member will be in critical illness
4. When Mr. Ranga dies due to severe road accident.

Q30. Rohit is working as sales manager with an FMCG company. His job requires
him to travel across states. He is planning of covering his additional risk inv
olved while travelling and a savings plan. What suggestion would you give him as
an agent? 1 1
1. To purchase an accidental rider with a savings insurance plan.
2. To purchase a health plan along with a savings insurance plan.
3. To save through fixed deposits in bank.
4. To purchase a medical plan.

Q31. If a person is concentrating more on health plan and retirement plan the
n at which stage of life is he in. 4 4
1. Young unmarried
2. Young married
3. Young married with Kids
4. Pre retirement

Q32. What is the ceiling of tax exemption under 80 c. 1
1
1. 1 lakh
2. 1.5 lakhs
3. 2 lakhs
4. 3 lakhs

Q33. The younger the age of an individual..............their liabilities will
be. 1 1
1. the lower
2. the higher
3. the smarter
4. the superior

Q34. Mr. Govind, Advisor with ABC life insurance company find out one client
is seeking solutions for health care and inheritance planning. Which main life s
tage he most likely to fall into? 3 3
1. Young Unmarried.
2. Young married with children.
3. Retirement.
4. Children.

Q35. Mr.Mohith, an agent was explaining to his customer the guaranteed benefi
ts of the product. Which one of the following documents he would have used to ex
plain the same? 3 3
1. Fact Finding document
2. B.KYC document
3. Benefit illustration document
4. Client benefit document

Q36. Naresh is married and his daughter Sneha is 3 years old. Which plan can
he take? 1 1
1. Term & Children Plan
2. Annuity Plan
3. Whole Life Plan
4. Health Plan

Q37. After undertaking financial planning exercise, the prospective client sa
id that he does not have funds for investments. To resolve this query, which ski
ll of an agent would be tested? 1 1
1. Objection handling skills.
2. Listening skills.
3. Communication skills.
4. Client information gathering skills.

Q38. Amit & Rashmi are newly married. Both are working couple. They want to i
nvest their savings of 100,000 annually to build corpus to make down payment for
their house 5 years from now. An adviser sold than a unit link product to meet
their requirement. This may result in 2 2
1. Ruining the long term reputation of company.
2. Opportunity of new business for adviser.
3. Bad reputation of the individual adviser.
4. Financial burden on the couple.

Q39. Under which one of the following acts the maximum remuneration that can
be given to insurance agents described? 3 3
1. Income Tax Act
2. Indian Contract Act
3. Insurance Act 1938
4. IRDA Act 1999

Q40. For tax Saving Someone wants to fixed deposit in bank. What duration is
required for it? 2 3
1. 3 years
2. 5 years
3. 7 years
4. 2 years

Q41. Prashant buys an Endowment Plan with a sum assured of Re. 100000 and wan
ts to make use of tax benefit under the policy for whole SA. How much premium wo
uld help him avail this benefit 3 3
1. Less than 10000
2. More than 10000
3. Less than 20000
4. More than 20000

Q42. Who will take the initiation to settle the maturity claim process?
4 3
1. Client
2. IRDA
3. Advisor
4. Insurance company

Q43. Mr. Chintamani has taken a policy from ABC Company on 2nd March 2010, bu
t unfortunately he died on 18th August 201 His death claim is considered as.....
..... 2 2
1. Normal death claim
2. Early death claim
3. Abnormal death claim
4. Unnatural death claim

Q44. Which one of the section deals with the licensing of an agent? 1
Not Attemped
1. Section 42 of the insurance act 1938
2. Section 42 of the insurance act 1936
3. License section of Insurance act 1938
4. License section of insurance agent act 1938

Q45. Which body has created a call center for logging a complaint 2
2
1. Life Insurance Council
2. IRDA
3. Insurance Association
4. Insurance Institute of India

Q46. Which official body decides to increase the interest rates? 2
2
1. Central bank of India
2. Reserve bank of India
3. Reserve bank of country
4. Central bank of country

Q47. As per Regulation for protection of Policyholders interest 2002 (IRDA), W
hich insurer will have a grievance redressal System 3 3
1. Some Specific Insurer
2. Those Insurer who did not created Insurance Ombudsman System
3. All insurer
4. It is optional

Q48. To ensure that the customers complaints are handled effectively, IRDA ha
s established 4 1
1. Integrated Grievance Management System.
2. Internal Grievance Redressal Cell of the Insurer.
3. Grievance Redressal Officer.
4. Consumer Affairs Department.

Q49. Under the hospital care rider what is the payout made 2
3
1. 10% of the sum assured
2. Specified amount multiplied by the number of days the policyholder i
s hospitalized
3. expenses incurred per day multiplied by no. of days stay in the hosp
ital
4. 100% of Sum Assured

Q50. Ethics can be defined as 4 4
1. Those values we commonly hold to be good and right.
2. Behavior that is based upon the moral judgments of an individual
3. A study of what makes ones own actions right or wrong.
4. All of the above.





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Question Correct Answer Answer Ticked
Q1. What is Bancassurance? 2 2
1. Giving insurance policies to Banks.
2. Selling insurance policies through Banks.
3. Giving guarantee to policies by Banks.
4. None of the above.

Q2. The business of Insurance is connected with................ 2
2
1. physical values of assets
2. economic values of assets
3. metaphysical values of assets
4. market values of assets

Q3. Insurance business is classified into three main types: 3
3
1. Life, Non life, Micro Insurance.
2. Life, Non Life, Miscellaneous
3. Life, Non life, Re-insurance.
4. Life, Health, Micro Insurance

Q4. Mr. shailsh has an endowment policy with 30 years policy term, he has pa
id for eight years. The sum assured Rs.8,00,000/- and accumulated bonus Rs.60,0
00/-. What is the paid up value if bonus accumulated and if not bonus accumulate
d? 1 Not Attemped
1. 213333 & 273333
2. 213333 & 229333
3. 229333 & 273333
4. 229333 & 293333

Q5. Ombudsman has to give his decision within how many days? 2
1
1. 15 Days
2. 30 Days
3. 2 Months
4. 3 Months

Q6. Which of the following can be an example of moral hazard? 3
3
1. a family history of heart disease
2. a person working in a chemical factory
3. a person consuming alcohol
4. A teacher working in a primary school.

Q7. Both the parties to a contract must agree and understand the same thing
and in the same sense which is called 3 4
1. Consideration.
2. Legality of an object.
3. Consensus ad idem.
4. Acceptance.

Q8. The reduction in the benefit illustration shows what. 1
1
1. Charges.
2. Mortality.
3. Interest.
4. Inflation.

Q9. 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 f
orum can he approach? 2 1
1. National Commission
2. District Level
3. State Level
4. Mandal Level

Q10. What are the factors involved in calculating Surrender Value of the Poli
cy? 4 4
1. Number of years premium paid.
2. Number of premiums payable.
3. Sum Assured
4. All of the above.

Q11. In an insurance contract 'consideraton' means........ 3
3
1. proposal form
2. Advisors confidential report
3. premium
4. claim

Q12. Mr.Shanth has taken an endowment policy of 15 years with ABC insurance c
ompany. He has paid premium for 4 years and he could not pay premium for 5th and
6th year. In the 7th year he approaches the company to renew the policy. Now wh
ich of the following options will apply to him? 3 3
1. The policy will be renewed on the existing terms and conditions.
2. Mr. Shanth cannot renew the policy
3. the policy may be renewed on different terms and conditions
4. Mr. Shanth can renew the policy only on the approval of the insurer

Q13. Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 a
nnual premiums but due to financial crisis is unable to make future premium. His
policy 4 4
1. Acquires surrender value.
2. Contract comes to an end.
3. Moneys will be forfeited.
4. Acquires paid up value.

Q14. To prove ones identity in accordance with KYC process, the customer needs
to submit following document excluding .? 4 4
1. An Age Proof
2. An Identity Proof
3. An Address Proof
4. Education Proof

Q15. Which clause lays down the mutual obligation of the parties regarding, P
ayment of Premium by Life assured & payment of Sum Assured by 2
2
1. Lien Clause
2. Opertaive Clause
3. Proviso Clause
4. Schedule of Policy

Q16. What key impact will the agent have in low persistency 4
4
1. Increase more business
2. Increase in the agents earning
3. Will improve reputation
4. Will have impact in his commission.

Q17. What is the limit of tax benefit that can be availed of under Section 80
C? 4 4
1. 50,000/-
2. 15,000/-
3. 10,000/-
4. 100,000/-

Q18. Mr. Guptha is recently detected with lung cancer. He would like to take
an insurance. What is your suggestion? 4 4
1. Time of death is uncertain, so insurance can be given
2. Only lung is affected so health insurance can be given.
3. He can take insurance after submitting health certificate
4. Cannot give insurance for health reason

Q19. Mr.Santhosh working as a head master who is around 52 years had requeste
d for an Insurance cover for Rs.1 crore. He insisted that his brothers son should
be the nominee not his wife. Underwriter will verify this case for which one of
the following: 3 3
1. A . Physical hazard, as he is old
2. B. Moral hazard, as he is 52 years old and wife is not the nominee
3. C. Moral hazard, as coverage is high and brothers son is the nominee
4. D. Moral hazard, as he is a head master and 52 years old

Q20. During Fact finding, rating is mentioned 3. This Indicates 1
1
1. Risk apatite of client
2. His future aspiration
3. Commitment to need
4. Willingness to pay

Q21. If a customer has mentioned he is a drinker in the proposal form, the in
surance company can exclude this hazard and mention it in which part of the poli
cy document? 2 4
1. Provisio
2. Endorsements
3. Operative clause
4. Terms and Conditions

Q22. If RBI increases the interest rates then what will be the effect on shar
e prices. 2 2
1. Shares will be more attractive.
2. Shares will be less attractive.
3. Fixed deposits will be more attractive.
4. Fixed deposits will be less attractive.

Q23. If a person want to maintain emergency funds the best place is a bank or
3 4
1. Equity market
2. ULIP
3. Debt mutual fund
4. FD

Q24. In what proportion is the cover in a Family Floater Plan shared?
4 4
1. 25% each
2. 15% each
3. 50% each
4. No Proportion

Q25. Who will maintain Mutual Fund Schemes? 3 3
1. Mutual Fund Management Societies
2. Mutual Fund Management Systems.
3. Asset Management Companies.
4. Asset Maintenance Company Limite4.

Q26. Mukesh buys shares at lower price and sold at higher price, the Differen
ce between the two prices is known as: 2 2
1. Dividend Income
2. Captial Appreciation
3. Bonus Share
4. Interest on share

Q27. In Cumulative bank deposit the interest that in normally compounded on w
hat basis. 2 4
1. Monthly
2. Quarterly
3. Half Yearly
4. Annually

Q28. In which plan weekly premium payments are accepted. 3
4
1. Health Insurance
2. Group Insurance
3. Micro Insurance
4. Macro Insurance

Q29. Which one of the following cannot be covered under Critical illness ride
r? 4 1
1. Blindness
2. Paraplegia
3. Coma
4. Brain Surgery

Q30. To avail the income tax benefit at investment stage, premium should be m
aximum 2 2
1. 10% of S1.
2. 20% of SA.
3. 30% of SA.
4. 40% of SA.

Q31. Health insurance policy holder takes treatment in a hospital which doesnt
have cashless facility. How the policy holder will get benefited 1
1
1. Need to spend and Get claim from the insurer
2. Need to add that hospital as TPA
3. Need not to claim
4. Need to switch to the another insurer

Q32. The concept of need based selling involves 3 3
1. Selling what company wish to sell.
2. Selling what adviser wish to sell.
3. Selling what customer requirement is.
4. Selling what IDRA wants company to sell.

Q33. In which of the following case there is no defined retirement age?
2 2
1. Public sector employees
2. Private sector employees
3. Professionals & Businessmen
4. All of the above

Q34. What should an agent do in order to understand the mental state of clien
t in respect to his investments in saving products 1 1
1. Fact finding
2. Consulting the clients parents
3. Consulting the family of the client
4. Reviewing his existing investments

Q35. Which of the following is true regarding Family Floater Health Insurance
Plan? 4 4
1. A Family Floater Plan is the same as a Individual Plan
2. Only self and spouse can be covered in this plan
3. Any number of people may be covered in this plan.
4. The insurance cover is shared amongst the family members in no fixed
Proportion.

Q36. Naresh is married and his daughter Sneha is 3 years old. Which plan can
he take? 1 1
1. Term & Children Plan
2. Annuity Plan
3. Whole Life Plan
4. Health Plan

Q37. After undertaking financial planning exercise, the prospective client sa
id that he does not have funds for investments. To resolve this query, which ski
ll of an agent would be tested? 1 1
1. Objection handling skills.
2. Listening skills.
3. Communication skills.
4. Client information gathering skills.

Q38. Under which one of the following acts the maximum remuneration that can
be given to insurance agents described? 3 3
1. Income Tax Act
2. Indian Contract Act
3. Insurance Act 1938
4. IRDA Act 1999

Q39. Which one of the following is not a benefit of persistency? 4
1
1. Helps the client in achieving goals
2. Reduction in costs
3. Increased client satisfaction
4. Decreased revenues

Q40. What is meant by a claim under insurance policy? 2
1
1. A demand to fulfill the policyholders obligations.
2. A demand to fulfill the insurers obligations.
3. Any demand made by the policyholder on the insurer.
4. All of the above.

Q41. Who will take the initiation to settle the maturity claim process?
4 3
1. Client
2. IRDA
3. Advisor
4. Insurance company

Q42. Detailed Investigation will be triggered in case of...... 3
3
1. Maturity claims
2. All death claims
3. Early death claims
4. Rider benefit claims.

Q43. Under what kind of Rider the insurance company pays the treatment cost i
n the event of hospitalization of the insured, subject to term & Condition of th
e rider. 3 2
1. Accidental death benefit (ADB)
2. Critical illness (CI)
3. Hospital Care (HC)
4. Term Rider.

Q44. Ashish is looking at different plans of insurance for protection at the
lowest premium. Which is the best plan for him? 1 1
1. Term plan
2. Endowment plan
3. Whole life plan
4. Money back plan.

Q45. One person wants to take term plan for 20 lakh and wants to take ADB rid
er, he is not sure of how much sum assured he needs to take for ADB rider. What
is your suggestion? 2 4
1. Needs to take experts suggestion
2. Equal to base cover
3. Any Amount he can take if he is ready to pay premium
4. 50% of SA max.

Q46. During financial planning session if the agent finds out the following n
eeds, which one should be given the top priority. Needs: Income protection, Chil
ds education, marriage and emergency funds. 4 4
1. Childs education
2. Marriage
3. Emergency funds
4. Income protection

Q47. As per Regulation for protection of Policyholders interest 2002 (IRDA), W
hich insurer will have a grievance redressal System 3 3
1. Some Specific Insurer
2. Those Insurer who did not created Insurance Ombudsman System
3. All insurer
4. It is optional

Q48. What will be lien amount in 3rd year as compared to the 4th year of lien
. 2 Not Attemped
1. It is higher
2. Decrease
3. Slightly higher
4. Slightly lower

Q49. Under the hospital care rider what is the payout made 2
2
1. 10% of the sum assured
2. Specified amount multiplied by the number of days the policyholder i
s hospitalized
3. expenses incurred per day multiplied by no. of days stay in the hosp
ital
4. 100% of Sum Assured

Q50. Which is not unethical behavior in below statements? 3
2
1. Over selling of Insurance policies.
2. Under selling of Insurance policies.
3. Explaining all details of the policy to customer.
4. Churning.




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Syllabus: NEW
Question Correct Answer Answer Ticked
Q1. The concept of indemnity is based on the key principle that policyholder
s should be prevented from 4 2
1. Insuring existing losses.
2. Making false insurance claims.
3. Paying excessively for insurance cover.
4. Profiting from insurance.

Q2. The Ombudsmans powers are restricted to insurance contracts of what value
? 4 4
1. 1Lakh
2. 10 Lakhs
3. 15Lakhs
4. 20 Lakhs

Q3. Which of the following do not include the channel of indirect marketing?
3 2
1. individual agents
2. bancassurance
3. insurance brokers
4. through internet

Q4. 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
1 1
1. Physical hazard
2. Fraudulent representation
3. Moral hazard
4. Peril

Q5. Mr. Shyam is having 9 year old child. Which product is not to be given p
riority? 4 4
1. Health plan
2. Child Plan
3. Life Insurance
4. Retirement Plan

Q6. Grouping the similar risks by Insurance Company is called as. 4
4
1. Grouping of Risk
2. Risk Grading
3. Risk Assessment
4. Pooling of Risk

Q7. Principle of utmost good faith will operate in existing policy 2
Not Attemped
1. Every time premium is paid
2. If the policy has lapsed and it has to be revived.
3. If the insured person falls sick and is admitted to hospital.
4. If the insured person changes his job.

Q8. Rajesh is 34 years old and having 2 sons, Vineeth and Sumith. The level
of risk appetite, Rajesh belongs is _______. 4 4
1. Middle Level
2. Top Level
3. Low Level
4. High Level

Q9. Which of the following statement is not true in connection with nominati
on? 3 Not Attemped
1. The life insured can nominate one or more than one person as nominee
s.
2. Nomination can be done either at the time the policy is bought or la
ter.
3. A person having a policy on the life of another should make a nomina
tion.
4. The section 39 of the Insurance Act 1938 speaks about the nomination
.

Q10. Shamsher has a health insurance policy of ` 1, 00,000 individually and f
rom his company for ` 2, 00,000. He falls sick and got hospitalized. His hospita
l bill ran to ` 50,000. He claimed this amount from his individual policy. Also,
he placed the request with his company for group policy claim, which was reject
ed. The reason for rejection is. 1 Not Attemped
1. Indemnity contract.
2. Value contract.
3. Deemed contract.
4. Rolling contract.

Q11. An insurance contract commences when 2 Not Attemped
1. Quotation is signed by proposer.
2. First Premium Receipt is issued.
3. Proposal Form is signed.
4. Policy Document is received by policyholder.

Q12. How assignment distinguishes itself from nomination? 1
Not Attemped
1. Nomination does not transfer the title while assignment does.
2. Nomination transfers the title while assignment does not.
3. Nomination is made after policy is issued while assignment is done b
efore it is issued.
4. Nomination need not be informed but assignment needs to be informe4.

Q13. What key event is most likely to make an insurance contract not a valid
contract? 4 Not Attemped
1. The circumstances are legitimate.
2. Representation of facts by the policyholders is true.
3. The life assured is major.
4. There is no insurable interest attached to the policy.

Q14. To prove ones identity in accordance with KYC process, the customer needs
to submit following document excluding .? 4 Not Attemped
1. An Age Proof
2. An Identity Proof
3. An Address Proof
4. Education Proof

Q15. Which clause lays down the mutual obligation of the parties regarding, P
ayment of Premium by Life assured & payment of Sum Assured by 2
Not Attemped
1. Lien Clause
2. Opertaive Clause
3. Proviso Clause
4. Schedule of Policy

Q16. If both parents of proposer died in their thirties due to heart attack w
hat is the kind of peril or hazard the proposer has? 4 Not Atte
mped
1. Insurable hazard
2. moral hazard
3. non insurable hazard
4. Physical hazard

Q17. Maximum Life cover 1 Not Attemped
1. 20 times annual salary
2. 500000
3. 1500000
4. 4000000

Q18. Mr. Kumars wife is suffering from blood cancer. Doctors lost their hope o
n her live. Mr. Kumar would like to take Life Insurance policy on wifes name in o
rder to get monitory benefit. Insurance company rejects this proposal on the gro
unds of. 2 Not Attemped
1. Anti Money Laundry
2. Legality of object or purpose
3. Capacity of paying future premiums.
4. All of the above

Q19. In which one of the following statement an agents commission will be disc
losed to the customer ? 2 Not Attemped
1. Customer Statement of the product
2. Benefit illustration of unit linked product
3. Benefit illustration of endowment product
4. Customer data sheet with the product

Q20. What is the key function of NIA 3 Not Attemped
1. Provide suggestion for Premium calculation
2. To be an active link between Global market & Indian Life Insurance I
ndustry
3. Design, implement and operate an insurance training
4. Regulate the investment of funds by Life Insurance company

Q21. Basing on which criteria the qualification of Agent is determined?
2 Not Attemped
1. Address of the agent
2. Domicile status
3. Qualification of Agent
4. DOB of Agent

Q22. What is the advantage of converting physical gold assets to gold ETFs.
1 Not Attemped
1. Liquidity
2. More gold in value
3. Purity
4. More conversion value

Q23. Rakesh wants to buy a policy primarily for Risk Cover but at the end of
the term he wants to get at least some return. Under which policy he will get th
ese benefits 2 Not Attemped
1. Endowment plan
2. ROP plan
3. Whole life plan
4. Ulip

Q24. Which of the following ways is easier for a person to take a saving prod
uct? 2 Not Attemped
1. through individual agents
2. through internet
3. corporate agents
4. call centers

Q25. Time deposit account is issued by: 1 Not Attemped
1. Post office
2. Bank
3. Mutual Fund
4. Life Insurance co.

Q26. Vinod being an insurance agent can offer assistance to his client Ramesh
by: 2 Not Attemped
1. Providing him emergency fund.
2. Matching the product with Rameshs financial need.
3. Recommendation of product with highest return.
4. Discourse saving in a purposeful and need based manner.

Q27. A customer gets periodic benefits without any claim and then when he die
s during the term of the policy, his nominees gets the sum insured. What type of
policy is this ? 3 Not Attemped
1. Endowment
2. Term
3. Money Back
4. Whole of Life

Q28. Some Health Plans will give coverage for family members also. We will ca
ll these plans as.. 3 Not Attemped
1. Family Health Insurance Plans
2. Total Protection Policies.
3. Family Floater Health Insurance Plans.
4. Family Rakshak Health Plans.

Q29. To avail the income tax benefit at investment stage, premium should be m
aximum 2 Not Attemped
1. 10% of S1.
2. 20% of SA.
3. 30% of SA.
4. 40% of SA.

Q30. Due to some medical problem Neeraj got hospitalized and insurance Compan
y paid him a fixed amount on daily basis, what kind of health Policy he bought i
t? 4 Not Attemped
1. Group health insurance
2. Family floater Insurance Plan
3. Individual health insurance plan
4. Daily hospitalization cash benefit plan

Q31. Where one can approach in case of dispute? 2 Not Atte
mped
1. IRDA
2. Consumer Forum
3. Distric Forum
4. National Forum

Q32. A Professional insurance market carries.. 1 Not Atte
mped
1. Need Based Selling
2. Product Based Selling
3. Commission Based Selling
4. Company Based Selling.

Q33. The concept of need based selling involves 3 Not Atte
mped
1. Selling what company wish to sell.
2. Selling what adviser wish to sell.
3. Selling what customer requirement is.
4. Selling what IDRA wants company to sell.

Q34. Which type of questioning is very useful to gather information from clie
nts? 2 Not Attemped
1. Closed Ended Questions
2. Open Ended Questions.
3. Interrogative Questions.
4. Clarification Questions.

Q35. During the fact finding session as an agent you should follow which one
of the following process? 2 Not Attemped
1. Prioritize, Identify & Quantify Needs.
2. Identify, Quantify & Prioritize Needs.
3. Quantify, Identify & Prioritize Needs.
4. Prioritize, Quantify & Identify Needs.

Q36. What is the stipulated time frame within which an insurer is supposed to
respond after receiving any communication from its policyholders? 3
Not Attemped
1. 24 hours
2. 1 day
3. 10 days
4. 30 days

Q37. After undertaking financial planning exercise, the prospective client sa
id that he does not have funds for investments. To resolve this query, which ski
ll of an agent would be tested? 1 Not Attemped
1. Objection handling skills.
2. Listening skills.
3. Communication skills.
4. Client information gathering skills.

Q38. Which one of the following is not a benefit of persistency? 4
Not Attemped
1. Helps the client in achieving goals
2. Reduction in costs
3. Increased client satisfaction
4. Decreased revenues

Q39. Why a building long term relationship with clients is necessary?
3 Not Attemped
1. A satisfied client may be the source of other potential clients
2. Reviewing financial needs and plans are necessary with changes
3. Agent has the option to recommending highest commission at any time.
4. Introduction of a new insurance product or a change in a clients Circ
umstance

Q40. For the customer whose claim has been refused by the company, the three
places where he/she should follow up are Ombudsman, IRDA Customer Grievance Cell
and .. 1 Not Attemped
1. Consumer Forum
2. COPA
3. Sebi
4. Life Insurance Council

Q41. Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He als
o has an ADB rider worth Rs. 4 lakhs. Unfortunately Baskar died in a car acciden
t. How much will be the death claim settlement? 3 Not Atte
mped
1. Total 7 lakhs will be paid as death had taken place
2. Total 4 lakhs will be paid as death had happened due to car accident
3. Total 11 lakhs will be paid
4. Total 7 lakhs will be paid without any deduction.

Q42. Mr.Sampath has taken a policy on January 10th 2006 for a term of 12 year
s. Due to financial instability he discontinued to pay the premium from 201 He d
ied on August 13th 201 What will happen to his death claim ? 2
Not Attemped
1. Eligible for claim as the premium was paid from 2006 to Dec 2010.
2. Not eligible for Claim settlement
3. Claim will be settled after deducting the unpaid premium
4. Claim will be settled after the deduction of unpaid loan amount

Q43. Under what kind of Rider the insurance company pays the treatment cost i
n the event of hospitalization of the insured, subject to term & Condition of th
e rider. 3 Not Attemped
1. Accidental death benefit (ADB)
2. Critical illness (CI)
3. Hospital Care (HC)
4. Term Rider.

Q44. Which one of the section deals with the licensing of an agent? 1
Not Attemped
1. Section 42 of the insurance act 1938
2. Section 42 of the insurance act 1936
3. License section of Insurance act 1938
4. License section of insurance agent act 1938

Q45. Who controls and regulate the rates, advantages, terms and conditions th
at may be offered by insurers in the respect of general insurance business.
3 Not Attemped
1. Insurance Regulatory and Development Authority.
2. Reserve Bank of India.
3. Tariff Advisory Committee.
4. Insurance Institute of India.

Q46. Issuance of a license to a person has been stipulated in................
Act 2 Not Attemped
1. Section 43 of the Insurance Act 1939
2. Section 42 of the Insurance Act 1938
3. Section 12 of the Insurance Act 1922
4. Section 34 of the Insurance Act 1932

Q47. Maximum time for investigation in disputed claim? 4
Not Attemped
1. 1 month
2. 2 months
3. 3 months
4. 6 months

Q48. AML Program of every insurer to include _______________, apart from Proc
edure, Training and audit. 4 Not Attemped
1. Inspection by IRDA
2. Audit by Finance Ministry
3. Appointment of Principal Compliance Officer
4. Inspection by Auditor General

Q49. After doing the need analysis of the client, the agent advised the clien
t to opt for TROP product. But the client refused. According to ethical business
practices what will the agent do ? 1 Not Attemped
1. Enquire about the refusal from the client
2. Suggest an alternative plan
3. Pass on to the superior
4. Pass on to the other agent

Q50. Pankaj being a license insurance advisor has to follow code of Conduct p
rovided by: 1 Not Attemped
1. Insurance Regulatory Development Authority
2. Life Insurance Company
3. Reserve Bank of India
4. SEBI.
Q1. A contract comes into existence when 1 4
1. One party makes an offer which the other party accepts unconditional
ly.
2. One party makes an offer which the other party put extra conditions.
3. One party makes an offer where other party gives counter offer.
4. One party makes an offer which the other party receives the offer.

Q2. Which of the following do not include the channel of indirect marketing?
3 4
1. individual agents
2. bancassurance
3. insurance brokers
4. through internet

Q3. Life insurance company determine the level of risk based on 2
2
1. Future expenses.
2. Claim experiences.
3. Present expenses.
4. Targeted bonus rates.

Q4. Available Loan amount under a life Insurance policy is generally based o
n 3 4
1. Total paid premium
2. Sum Assured
3. Surrender value
4. Paid up value

Q5. Which of the following can be an example of moral hazard? 3
3
1. a family history of heart disease
2. a person working in a chemical factory
3. a person consuming alcohol
4. A teacher working in a primary school.

Q6. Which of the following Risk is associated with those events which are no
t in control of an individual and also no possibility of making profit:
1 1
1. Pure Risk.
2. Particular Risk.
3. Financial Risk.
4. Insurable Risk

Q7. In a life insurance policy it is later found that the person doesnt have
insurable interest then the contract is 4 4
1. expired
2. reviewed
3. Void
4. Valid

Q8. In case of a term plan the maximum premium of the accidental rider can b
e. 3 2
1. 100% of basic premium.
2. 50% of basic premium.
3. 30% of basic premium.
4. 35% of basic premium.

Q9. If the employer has insurable interest in the life of an employee, what
kind of policy is this? 2 2
1. Surety insurance
2. Keyman Insurance
3. Partnership Insurance
4. Debtor Insurance

Q10. The principle of utmost good faith is not applicable to 4
4
1. Facts of common knowledge
2. Facts of law
3. Facts those are not material.
4. All of the above.

Q11. Mr. Rajesh has taken policy from ABC insurance company for Rs. 500000 Su
m Assured by paying Rs. 50,000 premium per year. Company declared 5% Simple Reve
rsionary bonus, what is bonus amount? 2 2
1. Rs. 2500/-
2. Rs. 25000/-
3. Rs. 250000/-
4. Rs. 5000/-

Q12. Where do you not find insurable interest in the following options.......
.. 4 4
1. surety-co surety
2. employee-employer
3. husband-wife
4. brother-sister

Q13. Mr.Shanth has taken an endowment policy of 15 years with ABC insurance c
ompany. He has paid premium for 4 years and he could not pay premium for 5th and
6th year. In the 7th year he approaches the company to renew the policy. Now wh
ich of the following options will apply to him? 3 3
1. The policy will be renewed on the existing terms and conditions.
2. Mr. Shanth cannot renew the policy
3. the policy may be renewed on different terms and conditions
4. Mr. Shanth can renew the policy only on the approval of the insurer

Q14. Mr. Raj has taken a policy of 15 year term. He has paid the premium for
9 years. But now unfortunately he has lost his job. He is unable to pay the prem
ium. What can be the best solution from the following ? 2
2
1. Converting the policy to Term policy
2. Converting the policy to Paid up
3. Converting the policy to money back
4. Converting the policy to whole Life

Q15. Which clause lays down the mutual obligation of the parties regarding, P
ayment of Premium by Life assured & payment of Sum Assured by 2
1
1. Lien Clause
2. Opertaive Clause
3. Proviso Clause
4. Schedule of Policy

Q16. Micro insurance is made specifically for people from. 3
3
1. High income.
2. Middle class.
3. Low income.
4. Affluent class.

Q17. As per IRDA regulations IGMS should be mandatory set up by 4
4
1. Only by few selected insurers
2. Only by non life
3. Some life and non life
4. By all insurers.

Q18. Mr.Santhosh working as a head master who is around 52 years had requeste
d for an Insurance cover for Rs.1 crore. He insisted that his brothers son should
be the nominee not his wife. Underwriter will verify this case for which one of
the following: 3 3
1. A . Physical hazard, as he is old
2. B. Moral hazard, as he is 52 years old and wife is not the nominee
3. C. Moral hazard, as coverage is high and brothers son is the nominee
4. D. Moral hazard, as he is a head master and 52 years old

Q19. Level Premium is calculated based on 1 2
1. Risk Premium.
2. Net Premium.
3. Loading of Premium.
4. Gross Premium.

Q20. If IRDA is unable to discharge its functions or duties, Central Governme
nt 1 4
1. Has the power to supersede the IRDA by issuing notification.
2. Has the power to supersede the IRDA by issuing a bill in parliament
3. Has the power to supersede the IRDA by issuing draft
4. Can make changes in IRDA law

Q21. 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 situat
ion? 3 3
1. He can not do any thing, because be received the policy bond.
2. He can file a complaint against insurance company in court.
3. He can send back the policy document to insurance company with in 15
days from policy receiving date.
4. Serve notice to insurance company on policy benefits.

Q22. What is purpose of investing money in debt mutual fund? 4
2
1. Easy access
2. Fixed income
3. Tax Benefits
4. Liquidity

Q23. What is the advantage of converting physical gold assets to gold ETFs.
1 1
1. Liquidity
2. More gold in value
3. Purity
4. More conversion value

Q24. An investor holds a wide range of shares. If the Reserve Bank of India a
nnounces a series of significant interest rate increases, the prices of these sh
ares are most likely to 2 2
1. Become volatile
2. Decrease
3. Increase
4. Remain unchanged

Q25. 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? 1 3
1. Rs. 32000 per month
2. Rs. 24000 per month
3. Rs. 40000 per month
4. Rs. 48000 per month

Q26. Pankaj want to save tax over and above the deduction allowed under secti
on 80C of the income tax act 1961, which allow deduction from taxable income
2 2
1. Corporate Bond
2. Infrastructure Bond
3. Health Insurance
4. Interest paid on education loan

Q27. The Premium on all riders put together should not exceed 3
3
1. 10% of the premium on the base policy
2. 20% of the premium on the base policy
3. 30% of the premium on the base policy
4. 40% of the premium on the base policy

Q28. How riders will help the customer in life insurance? 1
1
1. allows policyholders to customize their insurance cover with additio
nal benefits
2. rider is like a clause
3. Operative clause.
4. Rider is like Preamble.

Q29. Ajay bought a share for Rs.110 and he sold when it was Rs.630.What had h
appened to his share? 1 1
1. Capital Appreciation
2. Capital Profit
3. Capital Benefit
4. Capital Variation

Q30. E-sales refers to sales of insurance products through 4
4
1. Insurance brokers.
2. Bancassurance.
3. Individual agents.
4. Internet.

Q31. Perceived needs are those. 3 3
1. Short term needs.
2. Imagined to be important by Advisor.
3. Imagined to be important by client.
4. Long term needs.

Q32. Mr. Vinodh has lot of inconvenience to reach office every day. So he wan
ts to buy an expensive car when he will have sufficient fund. Here Mr. Vinodh's
need is............. 2 2
1. Real need
2. Perceived need
3. Imaginary need
4. Important need

Q33. Vijay, aged 30 years and married, is the sole bread winner for his famil
y. He is saving enough with banks.As an agent, which need you prioritize first?
3 3
1. Retirement need.
2. Tax planning need.
3. Financial security need.
4. Asset building nee4.

Q34. During fact finding, What will be the next step after Identifying client
s need 1 3
1. Quantify clients need
2. Priorities Clients Need
3. Recommending Product
4. Fill up the proposal form

Q35. Which of the following is true regarding Family Floater Health Insurance
Plan? 4 4
1. A Family Floater Plan is the same as a Individual Plan
2. Only self and spouse can be covered in this plan
3. Any number of people may be covered in this plan.
4. The insurance cover is shared amongst the family members in no fixed
Proportion.

Q36. Naresh is married and his daughter Sneha is 3 years old. Which plan can
he take? 1 1
1. Term & Children Plan
2. Annuity Plan
3. Whole Life Plan
4. Health Plan

Q37. What key benefit high persistency ratios have on insurance adviser?
1 1
1. High renewal income.
2. Less renewal income.
3. Fewer client bases.
4. Unsatisfied clients.

Q38. Amit & Rashmi are newly married. Both are working couple. They want to i
nvest their savings of 100,000 annually to build corpus to make down payment for
their house 5 years from now. An adviser sold than a unit link product to meet
their requirement. This may result in 2 2
1. Ruining the long term reputation of company.
2. Opportunity of new business for adviser.
3. Bad reputation of the individual adviser.
4. Financial burden on the couple.

Q39. Under which one of the following acts the maximum remuneration that can
be given to insurance agents described? 3 3
1. Income Tax Act
2. Indian Contract Act
3. Insurance Act 1938
4. IRDA Act 1999

Q40. A claim was paid in a policy and it was advertised in the newspaper also
. This indicates that the policy was. 3 2
1. It was assigned.
2. It was paid up.
3. It was lost.
4. It was surrendered.

Q41. Who will take the initiation to settle the maturity claim process?
4 3
1. Client
2. IRDA
3. Advisor
4. Insurance company

Q42. Mr.Sampath has taken a policy on January 10th 2006 for a term of 12 year
s. Due to financial instability he discontinued to pay the premium from 201 He d
ied on August 13th 201 What will happen to his death claim ? 2
2
1. Eligible for claim as the premium was paid from 2006 to Dec 2010.
2. Not eligible for Claim settlement
3. Claim will be settled after deducting the unpaid premium
4. Claim will be settled after the deduction of unpaid loan amount

Q43. Aman has taken a term plan for 20 years. In the 3rd year he suffered fin
ancial crisis due to which he was unable to pay premium within grace period and
died after 1 month. The nominee files a claim and is rejected because 1
1
1. The policy was not in force.
2. This condition is excluded in the policy.
3. The claim is fraudulent.
4. The claim is an early claim.

Q44. Which is the not part of KYC norms? 4 4
1. Photographs
2. Proof of identity
3. Proof of address.
4. Lapsed policy details.

Q45. During financial planning session if the agent finds out the following n
eeds, which one should be given the top priority. Needs: Income protection, Chil
ds education, marriage and emergency funds. 4 3
1. Childs education
2. Marriage
3. Emergency funds
4. Income protection

Q46. Mr.Raghav is an expert in fact finding .Mr.Raghav helps his brother in h
is job by sharing the information of his clients after the fact finding he does
to procure insurance. What will be the outcome ? 3 4
1. Raghav will be promoted to the next level
2. Raghav will be terminated
3. Raghav License will be cancelled
4. Customer will complain to Ombudsman

Q47. Which regulations take care of the settlement of claims ? 1
4
1. Protection of Policy holder Interests regulation 2002
2. IRDA claim protection regulation 2002
3. C.IRDA policy settlement regulation 2004
4. D. Protection of claim settlement regulation 2002

Q48. To ensure that the customers complaints are handled effectively, IRDA ha
s established 4 2
1. Integrated Grievance Management System.
2. Internal Grievance Redressal Cell of the Insurer.
3. Grievance Redressal Officer.
4. Consumer Affairs Department.

Q49. After doing the need analysis of the client, the agent advised the clien
t to opt for TROP product. But the client refused. According to ethical business
practices what will the agent do ? 1 2
1. Enquire about the refusal from the client
2. Suggest an alternative plan
3. Pass on to the superior
4. Pass on to the other agent

Q50. A person suffering from lung cancer is a smoker. Here smoking can be ter
med as 3 2
1. Peril
2. Hazard
3. Risk
4. Uncertainty

EW
Question Correct Answer Answer Ticked
Q1. 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 1 1
1. Money back policy
2. Convertible plan
3. Term plan
4. Endowment policy

Q2. If 5% bonus is given every year then for a SA of 1 lakh, what will be th
e payout after 15 years in a simple revisionary bonus system? 2
Not Attemped
1. 60000
2. 75000
3. 100000
4. 5000

Q3. The business of Insurance is connected with................ 2
2
1. physical values of assets
2. economic values of assets
3. metaphysical values of assets
4. market values of assets

Q4. What is the main objective of taking the life insurance policy?
4 4
1. Tax benefit
2. Savings
3. Investment
4. Protection

Q5. Vijay received his policy bond on 11th June, 201 Due to some personal pr
oblems he has decided to cancel the policy on 8th July, 201 Can he cancel or ret
urn the policy? 1 1
1. No, as 15 days period is over
2. Yes, as it is within 1 year
3. No, as 20 days period is over
4. Yes, as it is within 3 months

Q6. The Risk contains. 4 4
1. Peril and Hazard
2. Level
3. Uncertainty
4. All of the above.

Q7. In the sales illustration, the reduction of the actual benefit amount is
mainly due to deduction of 2 3
1. Commission
2. Charges
3. Non guaranteed benefits
4. Reversionary Bonus

Q8. The principle of utmost good faith is not applicable to 4
4
1. Facts of common knowledge
2. Facts of law
3. Facts those are not material.
4. All of the above.

Q9. Mr. Rajesh has taken policy from ABC insurance company for Rs. 500000 Su
m Assured by paying Rs. 50,000 premium per year. Company declared 5% Simple Reve
rsionary bonus, what is bonus amount? 2 2
1. Rs. 2500/-
2. Rs. 25000/-
3. Rs. 250000/-
4. Rs. 5000/-

Q10. In an insurance contract 'consideraton' means........ 3
3
1. proposal form
2. Advisors confidential report
3. premium
4. claim

Q11. Which of the following statements in correct in connection with assignme
nt? 1 4
1. Assignee cannot make fresh nomination in the policy
2. The assignor need not be major at the time of assignment.
3. Section 45 of the insurance act speaks about assignment.
4. Conditional assignment and absolute assignment are one and the same.

Q12. Mr. Josh was filling the proposal form but as his mother was sitting bes
ide him, even though he drinks and smokes he ticked NO in smoking & drinking colum
n of proposal form. This indicates ? 2 2
1. He has breached the non-disclosure of the fact
2. He has breached the company by concealing the facts
3. He has breached the company by fraudulent information
4. He had done an innocent misrepresentation

Q13. Mrs.Shwetha has taken a loan from her policy. Later stage she neither pa
id back neither the loan nor she paid the premium for a very long time. What wil
l happen to her policy? 1 3
1. Policy will be surrendered by the insurer
2. Policy will be surrendered by the nominee
3. Policy will be surrendered by the company
4. Policy will be surrendered by the heir

Q14. Payment of premium and sum assured are laid down in 3
2
1. Heading of policy document.
2. Proviso of policy.
3. Operative clause.
4. Schedule of policy document.

Q15. How assignment distinguishes itself from nomination? 1
1
1. Nomination does not transfer the title while assignment does.
2. Nomination transfers the title while assignment does not.
3. Nomination is made after policy is issued while assignment is done b
efore it is issued.
4. Nomination need not be informed but assignment needs to be informe4.

Q16. The insurance act of 1938 created which of these. 2
4
1. IRDA
2. Tariff Advisory Committee
3. National Insurance Academy
4. LIC

Q17. With reference to the principle of indemnity a life insurance policy is
a. 3 3
1. Insurance contract.
2. Indemnity contract.
3. Value contract.
4. Major life contract.

Q18. Mr. Guptha is recently detected with lung cancer. He would like to take
an insurance. What is your suggestion? 4 4
1. Time of death is uncertain, so insurance can be given
2. Only lung is affected so health insurance can be given.
3. He can take insurance after submitting health certificate
4. Cannot give insurance for health reason

Q19. Ramesh bought an endowment plan for tern year he pays the same Amount in
every year is called: 2 2
1. Gross Premium
2. Level Premium
3. Risk Premium
4. Net Premium

Q20. 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. 2
4
1. 2 lacs
2. 3 lacs
3. 5 lacs
4. 6 lacs

Q21. Payment/Investments in Kishan Vikash Patra under post office schemes is
done 3 3
1. Regularly with no fixed term
2. Lump Sum with no fixed term
3. Lump Sum for fixed period of time
4. Regularly for fixed period of time

Q22. If a person want to maintain emergency funds the best place is a bank or
3 4
1. Equity market
2. ULIP
3. Debt mutual fund
4. FD

Q23. An investor holds a wide range of shares. If the Reserve Bank of India a
nnounces a series of significant interest rate increases, the prices of these sh
ares are most likely to 2 2
1. Become volatile
2. Decrease
3. Increase
4. Remain unchanged

Q24. After maturity In a Unit Linked Life Insurance Policy, customer does not
get received Maturity in a lump sum. What is the possibility of receiving it in
installments if it is not a annuity plan 2 2
1. He has switched his fund
2. He has opted for Settlement option
3. He has he has redirected his past premium.
4. Policy was lapsed on the time of maturity

Q25. Which of the following ways is easier for a person to take a saving prod
uct? 2 2
1. through individual agents
2. through internet
3. corporate agents
4. call centers

Q26. Mukesh buys shares at lower price and sold at higher price, the Differen
ce between the two prices is known as: 2 Not Attemped
1. Dividend Income
2. Captial Appreciation
3. Bonus Share
4. Interest on share

Q27. How riders will help the customer in life insurance? 1
1
1. allows policyholders to customize their insurance cover with additio
nal benefits
2. rider is like a clause
3. Operative clause.
4. Rider is like Preamble.

Q28. To ensure that the premiums are paid out of a legitimate source of funds
cash is accepted 1 1
1. Up to 50000
2. Up to 99990
3. Up to 100000
4. Without any limit

Q29. If the agent recommends the client to terminate an endowment plan and ta
ke a whole life in order to earn higher commission its termed as 3
3
1. Switching
2. Doing a financial planning
3. Churning
4. Fact Finding

Q30. To identify suitable products their main features and their tax treatmen
ts is the role of: 1 3
1. Agent
2. Insured
3. Policy Holder
4. Insured person

Q31. Mr. Raj is married and having 2 children. Which plan can he take that ca
n cover his whole family? 2 2
1. Health Insurance
2. Family floater
3. Life Insurance
4. Retirement

Q32. The concept of need based selling involves 3 3
1. Selling what company wish to sell.
2. Selling what adviser wish to sell.
3. Selling what customer requirement is.
4. Selling what IDRA wants company to sell.

Q33. Which one of the following is true? 2 4
1. Every individuals income and expenditure pattern is same.
2. Every individuals income and expenditure pattern is different.
3. An individuals income and expenditure has no relation.
4. An individual should not keep in mind his income while planning his
expenditure.

Q34. What should an agent do in order to understand the mental state of clien
t in respect to his investments in saving products 1 1
1. Fact finding
2. Consulting the clients parents
3. Consulting the family of the client
4. Reviewing his existing investments

Q35. Insurance Protects which of the following? 3 3
1. The life of the person paying compensation
2. The risk retained person 's family
3. The financial goal of the insured
4. The life of the nominee

Q36. If the client does not wish to proceed with the recommendations right at
the moment the agent should 2 2
1. Insist on taking the product right away
2. Should ask for the reason for not going with the recommendation
3. Should ask for a future date from the client
4. Should review once again

Q37. The consequences of these risks which will affect specific individuals o
r local communities in nature is called as 3 3
1. Pure risk
2. Financial risk
3. Particular risk
4. Physical hazard

Q38. After undertaking financial planning exercise, the prospective client sa
id that he does not have funds for investments. To resolve this query, which ski
ll of an agent would be tested? 1 1
1. Objection handling skills.
2. Listening skills.
3. Communication skills.
4. Client information gathering skills.

Q39. What key benefit high persistency ratios have on insurance adviser?
1 1
1. High renewal income.
2. Less renewal income.
3. Fewer client bases.
4. Unsatisfied clients.

Q40. Which of the following falls under voidable contract? 1
1
1. Misrepresentation
2. Lack of insurable interest
3. Fraud
4. None of the above

Q41. Prashant buys an Endowment Plan with a sum assured of Re. 100000 and wan
ts to make use of tax benefit under the policy for whole SA. How much premium wo
uld help him avail this benefit 3 3
1. Less than 10000
2. More than 10000
3. Less than 20000
4. More than 20000

Q42. The agents duties and responsibilities ends 4 4
1. When the clients policy is issued.
2. When the clients needs have been established.
3. When the nominee has changed.
4. When the maturity/claim is settle4.

Q43. Under what kind of Rider the insurance company pays the treatment cost i
n the event of hospitalization of the insured, subject to term & Condition of th
e rider. 3 2
1. Accidental death benefit (ADB)
2. Critical illness (CI)
3. Hospital Care (HC)
4. Term Rider.

Q44. Ashish is looking at different plans of insurance for protection at the
lowest premium. Which is the best plan for him? 1 1
1. Term plan
2. Endowment plan
3. Whole life plan
4. Money back plan.

Q45. If a valid claim is delayed by the insurer then the interest for the sam
e will have to be paid by the insurance after how many days from the date of adm
ission of the claim? 3 4
1. 10 days
2. 20days
3. 30 days
4. 60 days

Q46. Which of the following team represents the members of GBIC ? 1
1
1. Representatives from all insurance companies
2. Representatives from all government bodies
3. Representatives from IRDA
4. Representatives from Insurance institute of India

Q47. Pooling of insurance applies to 1 1
1. all types insurance
2. All types of insurance except Motor insurance
3. Only life insurance
4. Only Non-life insurance

Q48. For annuity plans, before receiving regular/periodic annuity payments, t
he individual can make a lump sum withdrawal. This is known as commutation. Up t
o what proportion of the accumulated fund can be withdrawn? 3
3
1. The entire fund can be withdrawn
2. Only half of the fund can be withdrawn
3. Only one third of the fund can be withdrawn
4. Only one fourth of the fund can be withdrawn

Q49. After doing the need analysis of the client, the agent advised the clien
t to opt for TROP product. But the client refused. According to ethical business
practices what will the agent do ? 1 1
1. Enquire about the refusal from the client
2. Suggest an alternative plan
3. Pass on to the superior
4. Pass on to the other agent

Q50. Shankar, an adviser, sold a term insurance policy and unit-linked insura
nce policy (ULIP) to Amar, the client, who is unmarried and has no dependent. Co
nsequently, Shankars action can be termed as 3 4
1. Underselling of insurance policies.
2. Churning.
3. Overselling of insurance policies.
4. Ethical practice by an adviser.

Q1. In term insurance if Critical illness rider claim happens then what will
happen to existing policy 1 1
1. CI benefit will cease
2. CI benefit reduced from existing sum assured
3. CI benefit continues
4. No change in policy.

Q2. What is Bancassurance? 2 2
1. Giving insurance policies to Banks.
2. Selling insurance policies through Banks.
3. Giving guarantee to policies by Banks.
4. None of the above.

Q3. In Insurance terms, pooling of risk is 4 4
1. Using the same pool for paying claims of car & life insurance.
2. Using different pool for paying claims of life insurance.
3. Using the same pool for paying claims of life & house insurance.
4. Using the same pool for paying claims of life insurance.

Q4. Mr. Shyam is having 9 year old child. Which product is not to be given p
riority? 4 4
1. Health plan
2. Child Plan
3. Life Insurance
4. Retirement Plan

Q5. Which of the following can be an example of moral hazard? 3
3
1. a family history of heart disease
2. a person working in a chemical factory
3. a person consuming alcohol
4. A teacher working in a primary school.

Q6. which of the following refres to specific event which might cause a loss
... 2 1
1. Peril
2. Hazard
3. Physical hazards
4. Uncertinity

Q7. If the sum assured remains the same, what will be impact of net premium
if the age of the policyholder increases 3 3
1. It rises
2. It falls
3. It remains constant
4. Gross premiums increases

Q8. Life insurance is the most important for which age group 2
1
1. Young
2. Pre- retirement
3. Retirement
4. children

Q9. The premium for accidental death benefit rider must not exceed 3
3
1. 15% of base policy premium
2. 25% of base policy premium
3. 30% of base policy premium
4. 40% of base policy premium

Q10. 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?
1 3
1. Discounted Value
2. Principle amount
3. Discounted Value with persistency bonus
4. Principle with persistency bonus

Q11. If we hold 100 units in gold ETF, It means that how much grams we have i
n physical 4 4
1. 5 or 10 grams
2. 10 or 15 grams
3. 15 or 25 grams
4. 50 or 100 grams

Q12. Principle of Indemnity denotes.. 1 1
1. Insurance can not be used to make a profit
2. Insurance should not taken by high risk people.
3. Insurance can not taken by politicians.
4. All of the above.

Q13. What are the different types of Assignments? 2 2
1. Full Assignment and Partial Assignment
2. Conditional and Absolute Assignment.
3. Life Assignment and General Assignment.
4. Standard Assignment and Non-Standard Assignment.

Q14. On foreclosure, if Death claim arises before the payment of the surrende
r value, the payment would be payable to: 2 2
1. Nominee
2. Legal heir of life Assured
3. Debotrs
4. forfeited the Premium

Q15. Gaurav is working in MNC at the age of 32 bought an Endowment Plan. He h
ad nominated his 1 year old daughter Saanvi, but not able to get the Signature o
f her appointee due to unavailability of his spouse .after 5 year. He died in ro
ad accident, now claim money would be payable to: 2 4
1. Nominee only
2. Legal heir of the life assured
3. Appointee Only
4. will be Payable to Saanvi (Nominee) at the age of 18th

Q16. If both parents of proposer died in their thirties due to heart attack w
hat is the kind of peril or hazard the proposer has? 4 4
1. Insurable hazard
2. moral hazard
3. non insurable hazard
4. Physical hazard

Q17. Mr. Kumars wife is suffering from blood cancer. Doctors lost their hope o
n her live. Mr. Kumar would like to take Life Insurance policy on wifes name in o
rder to get monitory benefit. Insurance company rejects this proposal on the gro
unds of. 2 2
1. Anti Money Laundry
2. Legality of object or purpose
3. Capacity of paying future premiums.
4. All of the above

Q18. Rakesh purchased a life insurance policy. While writing a proposal form
he hide that he practices mountaineering. Sadly he died in an accident while cli
mbing Mount Everest. The insurers rejected the claim.What is the reason for reje
ction? 4 4
1. Innocent misrepresentation.
2. Fraudulent misrepresentation.
3. Concealment.
4. Non-Disclosure.

Q19. Which one of the following is not source of information about the
3 3
1. Proposal Form
2. Insurance agent
3. neighbor of proposer
4. Medical of examination report

Q20. Whose signature is required on attestation of the policy? 3
4
1. Agent
2. Policy holder
3. Authorized officials of insurer
4. Proposer

Q21. Ajay has bought an endowment insurance plan with a cover of Rs. 10, 00,0
00 for a term of 15 years. Ajay died after 4 years. Insurance company will not t
reat this claim as ________ claim. 3 2
1. Normal
2. Fraudulent
3. Early
4. General.

Q22. If RBI increases the interest rates then what will be the effect on shar
e prices. 2 2
1. Shares will be more attractive.
2. Shares will be less attractive.
3. Fixed deposits will be more attractive.
4. Fixed deposits will be less attractive.

Q23. What is the similarity between Recurring Deposits & cumulative deposits
in a bank 1 1
1. Guarantees
2. Taxation
3. Tenure
4. Lock in periods

Q24. In which section of Policy document, Information about the location of t
he insurance Ombudsman had written? 3 3
1. Operative clause
2. Attestation
3. Information statement
4. Endorsements

Q25. Which is the primary saving need among all saving needs? 4
4
1. Insurance
2. Purchasing House
3. Investment.
4. Contingency/ Emergency Fun4.

Q26. Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this amou
nt for his daughters marriage which is going to happen with in Nine months. He wo
uld like to get some returns from this money in these 9 months period. What is t
he best option to park his money? 3 3
1. Insurance
2. Shares
3. Fixed Deposit in Bank
4. Mutual Funds.

Q27. The Premium on all riders put together should not exceed 3
3
1. 10% of the premium on the base policy
2. 20% of the premium on the base policy
3. 30% of the premium on the base policy
4. 40% of the premium on the base policy

Q28. Certificate from the village panchayat 2 2
1. Will be considered as standard age proof
2. Will be considered as non standard age proof
3. Will not be accepted
4. Will be verified first

Q29. The rider which is given by the Insurance company pays for the treatment
costs in the event of hospitalization of the insured person is called 2
2
1. Critical Illness Rider
2. Hospitalization Care Rider
3. Accidental Benefit Rider
4. Surgical Care Rider

Q30. Customer has to pay the amount in regular intervals to create purchase p
rice or Pension Fund. We call this phase as.. 2 2
1. Collection Phase.
2. Accumulation Phase
3. Pension Phase.
4. Primary Phase.

Q31. Perceived needs are those. 3 3
1. Short term needs.
2. Imagined to be important by Advisor.
3. Imagined to be important by client.
4. Long term needs.

Q32. Fact finding enables the insurance advisor to identify the.............
1 1
1. clients financial need
2. clients personal problems
3. clients hereditary diseases
4. Clients social background.

Q33. Which are the two primary needs of any customer in any point of life?
2 2
1. Investment and retirement
2. Investment and Protection
3. Investment and savings
4. Investment and life needs

Q34. During fact finding, What will be the next step after Identifying client
s need 1 1
1. Quantify clients need
2. Priorities Clients Need
3. Recommending Product
4. Fill up the proposal form

Q35. The objective of Fact Finding is to 4 4
1. Gather Clients Information only.
2. Identify only the clients needs.
3. To provide solution of companys choice.
4. Both identify clients needs & gather information.

Q36. If the client does not wish to proceed with the recommendations right at
the moment the agent should 2 2
1. Insist on taking the product right away
2. Should ask for the reason for not going with the recommendation
3. Should ask for a future date from the client
4. Should review once again

Q37. The consequences of these risks which will affect specific individuals o
r local communities in nature is called as 3 3
1. Pure risk
2. Financial risk
3. Particular risk
4. Physical hazard

Q38. What is the factor which has influence on persistency? 4
4
1. Role of Agent
2. Product Design.
3. Policy Servicing
4. All of the above.

Q39. What key benefit high persistency ratios have on insurance adviser?
1 1
1. High renewal income.
2. Less renewal income.
3. Fewer client bases.
4. Unsatisfied clients.

Q40. Generally insurance companies do not hold the premium in case of a fraud
or misrepresentation. However, due to which of the following circumstances the
insurer can retain the premium of the policyholder 2 4
1. Fraudulent claim
2. Indisputability clause
3. Redressal procedure
4. Pending decision from Ombudsman

Q41. An individual is said to be competent to enter into a contract if they a
re 1 1
1. 18 year old
2. 21 year old
3. 23 year old
4. 25 year old

Q42. Prashant buys an Endowment Plan with a sum assured of Re. 100000 and wan
ts to make use of tax benefit under the policy for whole SA. How much premium wo
uld help him avail this benefit 3 3
1. Less than 10000
2. More than 10000
3. Less than 20000
4. More than 20000

Q43. Mr. Chintamani has taken a policy from ABC Company on 2nd March 2010, bu
t unfortunately he died on 18th August 201 His death claim is considered as.....
..... 2 2
1. Normal death claim
2. Early death claim
3. Abnormal death claim
4. Unnatural death claim

Q44. Which is the 2nd stage in Money Laundering? 1 1
1. Layering
2. Placement
3. Integration
4. Amalgamation.

Q45. Which of the following team represents the members of GBIC ? 1
1
1. Representatives from all insurance companies
2. Representatives from all government bodies
3. Representatives from IRDA
4. Representatives from Insurance institute of India

Q46. Which council among the following focus on creating a positive image of
the insurance industry and would also like to enhance the Consumers confidence on
the same ? 1 3
1. Life insurance council
2. Consumer insurance council
3. National Insurance council
4. General insurance council

Q47. As per Regulation for protection of Policyholders interest 2002 (IRDA), W
hich insurer will have a grievance redressal System 3 3
1. Some Specific Insurer
2. Those Insurer who did not created Insurance Ombudsman System
3. All insurer
4. It is optional

Q48. What the name of department that is established by IRDA to deal with cus
tomer complaints? 3 3
1. Customer Complaint Department (CCD)
2. Customer Grievance Department (CGD)
3. Consumer Affairs Department (CAD)
4. Consumer Protection Department (CPD)

Q49. Which tax rate is applicable, in case of Client pays the premium of 5000
/- and suffers illness before maturity? 1 1
1. Nil
2. 0.1
3. 0.2
4. 0.3

Q50. For an insurance advisor churning is.............practice 2
2
1. good
2. bad
3. compulsory
4. appreciable



Q1. If a client wants to compare between all financial products then the bes
t person he can approach is 4 2
1. Individual agent
2. Corporate agent
3. Bank
4. Broker

Q2. In life insurance business if a person is working in calculating premium
rates of insurance products, then he is mostly likely a member of 1
1
1. institutes of actuaries of India
2. insurance institute of India
3. Charted institute of insurance
4. Insurance institute of risk management

Q3. Insurance business is classified into three main types: 3
3
1. Life, Non life, Micro Insurance.
2. Life, Non Life, Miscellaneous
3. Life, Non life, Re-insurance.
4. Life, Health, Micro Insurance

Q4. The Risk contains. 4 4
1. Peril and Hazard
2. Level
3. Uncertainty
4. All of the above.

Q5. Which of the following Risk is associated with those events which are no
t in control of an individual and also no possibility of making profit:
1 1
1. Pure Risk.
2. Particular Risk.
3. Financial Risk.
4. Insurable Risk

Q6. which of the following refres to specific event which might cause a loss
... 2 2
1. Peril
2. Hazard
3. Physical hazards
4. Uncertinity

Q7. Net premium is equal to 3 Not Attemped
1. Premium plus interest earning
2. Risk premium plus interest earning
3. Premium minus interest earning
4. Risk premium minus interest earning

Q8. Principle of utmost good faith will operate in existing policy 2
1
1. Every time premium is paid
2. If the policy has lapsed and it has to be revived.
3. If the insured person falls sick and is admitted to hospital.
4. If the insured person changes his job.

Q9. Both the parties to a contract must agree and understand the same thing
and in the same sense which is called 3 4
1. Consideration.
2. Legality of an object.
3. Consensus ad idem.
4. Acceptance.

Q10. 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.
2 2
1. 8000
2. 8320
3. 9456
4. 9240

Q11. The reduction in the benefit illustration shows what. 1
1
1. Charges.
2. Mortality.
3. Interest.
4. Inflation.

Q12. If the employer has insurable interest in the life of an employee, what
kind of policy is this? 2 2
1. Surety insurance
2. Keyman Insurance
3. Partnership Insurance
4. Debtor Insurance

Q13. What is the major reason for self employed to take insurance. 4
4
1. Save Tax
2. Fluctuating income
3. High Returns
4. Protection

Q14. The principle of utmost good faith applies to........... 3
3
1. only insurers
2. only proposer
3. both insurers and proposer
4. neither insures nor proposer

Q15. Jyoti is submitting is copy of permanents account number card as age pro
of for buying an money back plan .her age consider as a 2
2
1. Non Standard Age Proof
2. Standard Age proof
3. an Address proof
4. Proof of Income tax payer

Q16. Mr. Guptha is recently detected with lung cancer. He would like to take
an insurance. What is your suggestion? 4 4
1. Time of death is uncertain, so insurance can be given
2. Only lung is affected so health insurance can be given.
3. He can take insurance after submitting health certificate
4. Cannot give insurance for health reason

Q17. Which of the following information does not appear in the First Premium
Receipt? 2 2
1. method and frequency of premium payment
2. Date of commencement of last premium
3. Date the policy matures
4. Date the last premium will be paid

Q18. When an underwriter may consider Moral Hazard? 3 3
1. An individual is proposing SA 15 times his annual income.
2. Insurance is taken out by an individual with dependents.
3. A nominee is not a dependent.
4. A medical checkup is carried out nearby place of residence.

Q19. Level Premium is calculated based on 1 1
1. Risk Premium.
2. Net Premium.
3. Loading of Premium.
4. Gross Premium.

Q20. If IRDA is unable to discharge its functions or duties, Central Governme
nt 1 1
1. Has the power to supersede the IRDA by issuing notification.
2. Has the power to supersede the IRDA by issuing a bill in parliament
3. Has the power to supersede the IRDA by issuing draft
4. Can make changes in IRDA law

Q21. When a person is investing in Debt Mutual Fund, what is the primary obje
ctive 4 3
1. Good Returns
2. Regular Income
3. Safety
4. Liquidity

Q22. Mr. Denny is married and has 2 children and his parents are alive. He ha
s taken a family floater plan. Under the plan who all will be covered. 4
4
1. Denny
2. Denny and his wife
3. Denny, his wife and children
4. Denny, his wife, his children and his parents

Q23. In what proportion is the cover in a Family Floater Plan shared?
4 4
1. 25% each
2. 15% each
3. 50% each
4. No Proportion

Q24. Bank interest is accumulated 2 3
1. Monthly
2. Yearly
3. Quarterly
4. Once in 6 months

Q25. Who will maintain Mutual Fund Schemes? 3 3
1. Mutual Fund Management Societies
2. Mutual Fund Management Systems.
3. Asset Management Companies.
4. Asset Maintenance Company Limite4.

Q26. In which of the following Bank pays the Interest on the deposits fund on
monthly /quarterly /half yearly/ yearly basis as chosen by depositor fund:
3 3
1. Saving Deposit
2. Cumlative deposit
3. Traditional Deposit
4. Fixed Deposit

Q27. In Cumulative bank deposit the interest that in normally compounded on w
hat basis. 2 2
1. Monthly
2. Quarterly
3. Half Yearly
4. Annually

Q28. Which is correct in relation to Insurance Broker? 1
Not Attemped
1. Insurance broker is represents insurance buyer and remunerated by th
e insurance company
2. Insurance broker is represents insurance buyer and remunerated by th
e Client
3. Insurance Broker gets money from both Insurance company as well as f
rom Client fo selling Insurance
4. None are correct

Q29. An elderly person wants to use tax efficient investment and invests in s
enior citizen saving scheme. Its the impact in his taxation 4
3
1. He will get tax benefit up to 5000
2. He will get tax benefit up to 25%
3. He will get a reduction in tax slab
4. His investment would be deducted from taxable income

Q30. Rohit is working as sales manager with an FMCG company. His job requires
him to travel across states. He is planning of covering his additional risk inv
olved while travelling and a savings plan. What suggestion would you give him as
an agent? 1 1
1. To purchase an accidental rider with a savings insurance plan.
2. To purchase a health plan along with a savings insurance plan.
3. To save through fixed deposits in bank.
4. To purchase a medical plan.

Q31. Under section 80C the maximum tax deduction that can be gained for premi
um paid is _______ in a financial year. 4 4
1. Rs. 75,000
2. Rs. 1, 10,000
3. Rs. 1, 20,000
4. Rs. 1, 00,000

Q32. A Professional insurance market carries.. 1 1
1. Need Based Selling
2. Product Based Selling
3. Commission Based Selling
4. Company Based Selling.

Q33. Which are the two primary needs of any customer in any point of life?
2 2
1. Investment and retirement
2. Investment and Protection
3. Investment and savings
4. Investment and life needs

Q34. Insurance Protects which of the following? 3 3
1. The life of the person paying compensation
2. The risk retained person 's family
3. The financial goal of the insured
4. The life of the nominee

Q35. During the fact finding session as an agent you should follow which one
of the following process? 2 2
1. Prioritize, Identify & Quantify Needs.
2. Identify, Quantify & Prioritize Needs.
3. Quantify, Identify & Prioritize Needs.
4. Prioritize, Quantify & Identify Needs.

Q36. What is the factor which has influence on persistency? 4
4
1. Role of Agent
2. Product Design.
3. Policy Servicing
4. All of the above.

Q37. When client declines the recommendation by the insurance adviser even af
ter resolving the concerns, the adviser should 2 2
1. Persuade the client to purchase the policy.
2. Should ask for reference who might be interested in financial planni
ng.
3. Should never approach the client ever again.
4. Should do nothing.

Q38. What key benefit high persistency ratios have on insurance adviser?
1 1
1. High renewal income.
2. Less renewal income.
3. Fewer client bases.
4. Unsatisfied clients.

Q39. Why a building long term relationship with clients is necessary?
3 4
1. A satisfied client may be the source of other potential clients
2. Reviewing financial needs and plans are necessary with changes
3. Agent has the option to recommending highest commission at any time.
4. Introduction of a new insurance product or a change in a clients Circ
umstance

Q40. For tax Saving Someone wants to fixed deposit in bank. What duration is
required for it? 2 2
1. 3 years
2. 5 years
3. 7 years
4. 2 years

Q41. Mr. Chintamani has taken a policy from ABC Company on 2nd March 2010, bu
t unfortunately he died on 18th August 201 His death claim is considered as.....
..... 2 2
1. Normal death claim
2. Early death claim
3. Abnormal death claim
4. Unnatural death claim

Q42. In the process of settling maturity claims.... 2 2
1. the company will wait until the claimant comes to office to demand t
he claim
2. the process is initiated by the company well in advance of the matur
ity date
3. it is the responsibility of the claimant to approach the company
4. If the claimant does not come within a month the entire maturity amo
unt will be forfeited.

Q43. Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He als
o has an ADB rider worth Rs. 4 lakhs. Unfortunately Baskar died in a car acciden
t. How much will be the death claim settlement? 3 3
1. Total 7 lakhs will be paid as death had taken place
2. Total 4 lakhs will be paid as death had happened due to car accident
3. Total 11 lakhs will be paid
4. Total 7 lakhs will be paid without any deduction.

Q44. Pricing element is done by 2 2
1. IRDA
2. Insurance Company
3. Life Insurance Council
4. CII

Q45. Ombudsman passes an award within which time 1 1
1. 1 month
2. 2 months
3. 3 months
4. 6 months

Q46. Mrs. Hansa an agent, has planned to sell maximum products within a short
span of time by giving maximum rebates to the customer to complete the contest
target of the company. 3 3
1. It will benefit both the company and the customer
2. Reputation of the company will be high due to offers to the customer
3. Agent will be terminated
4. Agent will be qualified for the contest

Q47. Harshs policy matured, however he was paid only 25% of the sum insured in
spite of all his premiums been paid on time. This indicates that his policy is
a 3 4
1. Term plan.
2. Endowment plan.
3. Money back plan.
4. Wholelife plan.

Q48. As per Regulation for protection of Policyholders interest 2002 (IRDA), W
hich insurer will have a grievance redressal System 3 3
1. Some Specific Insurer
2. Those Insurer who did not created Insurance Ombudsman System
3. All insurer
4. It is optional

Q49. When can an insurance company give more than 35% first year commission?
1 1
1. When the insurance company is in the first 10 years of operation
2. If the agent has worked with the company for more than 5 years
3. If the agent has worked with the company for more than 10 years
4. If the agent is doing more than 3 policies in a month.

Q50. Shankar, an adviser, sold a term insurance policy and unit-linked insura
nce policy (ULIP) to Amar, the client, who is unmarried and has no dependent. Co
nsequently, Shankars action can be termed as 3 3
1. Underselling of insurance policies.
2. Churning.
3. Overselling of insurance policies.
4. Ethical practice by an adviser.


Q1. In life insurance business if a person is working in calculating premium
rates of insurance products, then he is mostly likely a member of 1
1
1. institutes of actuaries of India
2. insurance institute of India
3. Charted institute of insurance
4. Insurance institute of risk management

Q2. Life insurance company determine the level of risk based on 2
2
1. Future expenses.
2. Claim experiences.
3. Present expenses.
4. Targeted bonus rates.

Q3. Insured can contact to seek the resolution of grievances they have again
st insurer to IRDA through: 4 4
1. Complaint@gov.ird1.in
2. insurancecomplaints@irda.gov.in
3. irdacomplaints@gov.in
4. Complaints@irda.gov.in

Q4. Law of large numbers is worked out by which of the following? 1
1
1. Pooling of risk
2. Maintaining insurable interest
3. With utmost good faith
4. Randomness

Q5. An Insurance company pools the premium collected from several Individual
to insure them against similar risk is called: 2 2
1. Pure Risk
2. Pooling of Risk
3. Insuraable Risk
4. Sharing of Risk

Q6. Which of the following Risk is associated with those events which are no
t in control of an individual and also no possibility of making profit:
1 1
1. Pure Risk.
2. Particular Risk.
3. Financial Risk.
4. Insurable Risk

Q7. The reduction in the benefit illustration shows what. 1
1
1. Charges.
2. Mortality.
3. Interest.
4. Inflation.

Q8. What is the major reason for self employed to take insurance. 4
4
1. Save Tax
2. Fluctuating income
3. High Returns
4. Protection

Q9. In an insurance contract 'consideraton' means........ 3
3
1. proposal form
2. Advisors confidential report
3. premium
4. claim

Q10. Where do you not find insurable interest in the following options.......
.. 4 4
1. surety-co surety
2. employee-employer
3. husband-wife
4. brother-sister

Q11. The principle of utmost good faith applies to........... 3
3
1. only insurers
2. only proposer
3. both insurers and proposer
4. neither insures nor proposer

Q12. Which of the following statement is not true in connection with nominati
on? 3 3
1. The life insured can nominate one or more than one person as nominee
s.
2. Nomination can be done either at the time the policy is bought or la
ter.
3. A person having a policy on the life of another should make a nomina
tion.
4. The section 39 of the Insurance Act 1938 speaks about the nomination
.

Q13. Mr. Shanth has taken an endowment policy of 20 years. He has paid premiu
m for 10 years and now the policy is in force. At this point of time can Shanth
take loan? 2 2
1. Mr. Shanth will not be granted any loan
2. Mr. Shanth can take loan which should be certain percentage of the s
urrender value of the policy.
3. There is no concept of loan in insurance policy
4. loans are allowed only in term plans

Q14. Payment of premium and sum assured are laid down in 3
1
1. Heading of policy document.
2. Proviso of policy.
3. Operative clause.
4. Schedule of policy document.

Q15. An insurance contract commences when 2 2
1. Quotation is signed by proposer.
2. First Premium Receipt is issued.
3. Proposal Form is signed.
4. Policy Document is received by policyholder.

Q16. While calculating HLV along with future income, no of years of work, inc
rements in salary what is also to be taken in to account? 3
2
1. Inflation.
2. Interest.
3. Discount rate
4. Compounding.

Q17. Mr. Kumars wife is suffering from blood cancer. Doctors lost their hope o
n her live. Mr. Kumar would like to take Life Insurance policy on wifes name in o
rder to get monitory benefit. Insurance company rejects this proposal on the gro
unds of. 2 2
1. Anti Money Laundry
2. Legality of object or purpose
3. Capacity of paying future premiums.
4. All of the above

Q18. Mr. Guptha is recently detected with lung cancer. He would like to take
an insurance. What is your suggestion? 4 4
1. Time of death is uncertain, so insurance can be given
2. Only lung is affected so health insurance can be given.
3. He can take insurance after submitting health certificate
4. Cannot give insurance for health reason

Q19. Mr.Feroz has applied for an insurance cover of Rs.4 crores. The Company
will accept or reject the proposal only after confirming from one of the followi
ng agencies. 4 4
1. Financial Inspection agencies
2. Specialized inspection agencies
3. Credit worth inspection agencies
4. Insurance Investigation Agencies

Q20. Gautam wants to purchase a Kisan Vikas Patra. What is the most suitable
place to purchase it 3 3
1. Bank
2. Insurance Company
3. Post Office
4. Share Market

Q21. During Fact finding, rating is mentioned 3. This Indicates 1
1
1. Risk apatite of client
2. His future aspiration
3. Commitment to need
4. Willingness to pay

Q22. Mr. Denny is married and has 2 children and his parents are alive. He ha
s taken a family floater plan. Under the plan who all will be covered. 4
4
1. Denny
2. Denny and his wife
3. Denny, his wife and children
4. Denny, his wife, his children and his parents

Q23. If a policy with premium of Rs 5000 has matured, how much will be deduct
ed when the maturity claim arises 1 1
1. Nil
2. 0.01
3. 0.05
4. 0.1

Q24. Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this amou
nt for his daughters marriage which is going to happen with in Nine months. He wo
uld like to get some returns from this money in these 9 months period. What is t
he best option to park his money? 3 3
1. Insurance
2. Shares
3. Fixed Deposit in Bank
4. Mutual Funds.

Q25. Which of the following cant be ducted under section 80 c from taxable inc
ome? 3 4
1. Pension Funds
2. Public Provident Fund
3. Employee Gratuity Fund
4. Infrastructure Bonds

Q26. Pankaj want to save tax over and above the deduction allowed under secti
on 80C of the income tax act 1961, which allow deduction from taxable income
2 2
1. Corporate Bond
2. Infrastructure Bond
3. Health Insurance
4. Interest paid on education loan

Q27. The regulations issued by the IRDA, require that the decision on the pro
posal must be conveyed to the proposer within 1 1
1. 15 days of receiving the proposal
2. 20 days of receiving the proposal
3. 25 days of receiving the proposal
4. 30 days of receiving the proposal

Q28. To ensure that the premiums are paid out of a legitimate source of funds
cash is accepted 1 1
1. Up to 50000
2. Up to 99990
3. Up to 100000
4. Without any limit

Q29. Hospitalization rider has the following benefit: 1
2
1. Person receives fixed amt daily for no of days in hospital
2. Person receives an amount equal to the expense.
3. Person receives a fixed amount of 1000 daily.
4. Person receives benefit only if he is hospitalized for 3 days minimu
m.

Q30. Due to some medical problem Neeraj got hospitalized and insurance Compan
y paid him a fixed amount on daily basis, what kind of health Policy he bought i
t? 4 4
1. Group health insurance
2. Family floater Insurance Plan
3. Individual health insurance plan
4. Daily hospitalization cash benefit plan

Q31. Under section 80C the maximum tax deduction that can be gained for premi
um paid is _______ in a financial year. 4 4
1. Rs. 75,000
2. Rs. 1, 10,000
3. Rs. 1, 20,000
4. Rs. 1, 00,000

Q32. The concept of need based selling involves 3 3
1. Selling what company wish to sell.
2. Selling what adviser wish to sell.
3. Selling what customer requirement is.
4. Selling what IDRA wants company to sell.

Q33. For his investment need, Ravi has parked funds in equity. The returns fr
om this form of investment can be categorized as 1 1
1. High Risk.
2. Low Risk.
3. Moderate Risk.
4. No Risk.

Q34. During fact finding, What will be the next step after Identifying client
s need 1 1
1. Quantify clients need
2. Priorities Clients Need
3. Recommending Product
4. Fill up the proposal form

Q35. Which is the best option to manage risk? 2 2
1. Retain
2. Transfer
3. Avoid
4. None

Q36. What is the stipulated time frame within which an insurer is supposed to
respond after receiving any communication from its policyholders? 3
3
1. 24 hours
2. 1 day
3. 10 days
4. 30 days

Q37. Agent who is a licensed intermediary is actually is ? 2
2
1. A legal person to act on behalf of the re-insurer
2. B.A legal person to act on behalf of the insurer
3. C.A legal person to act on behalf of the contract
4. D. An authorized agent to act on behalf of the legal company

Q38. When client declines the recommendation by the insurance adviser even af
ter resolving the concerns, the adviser should 2 2
1. Persuade the client to purchase the policy.
2. Should ask for reference who might be interested in financial planni
ng.
3. Should never approach the client ever again.
4. Should do nothing.

Q39. Satish as an insurance advisor while recommending to his client Ramesh i
s not suitable policies 4 2
1. Satish should check the Ramesh s commitment to the needs
2. Satish should outline the reasons for recommendation for a particula
r policy
3. Satish should check the acceptance or rejection of the recommendatio
n.
4. Should advised him to surrender all the polices which are not buy fr
om satish.

Q40. A claim was paid in a policy and it was advertised in the newspaper also
. This indicates that the policy was. 3 3
1. It was assigned.
2. It was paid up.
3. It was lost.
4. It was surrendered.

Q41. Generally insurance companies do not hold the premium in case of a fraud
or misrepresentation. However, due to which of the following circumstances the
insurer can retain the premium of the policyholder 2 2
1. Fraudulent claim
2. Indisputability clause
3. Redressal procedure
4. Pending decision from Ombudsman

Q42. Vinay doesnt want to take insurance on himself. He feels that his family
will survive with the funds available in the bank and monthly rentals received f
rom village. This comes under Risk ______ 3 3
1. Transfer
2. Control
3. Retaining
4. Avoidance

Q43. A missing person will be presumed to be dead only after. 3
3
1. Three years
2. Five years.
3. Seven years.
4. Nine years.

Q44. Ashish is looking at different plans of insurance for protection at the
lowest premium. Which is the best plan for him? 1 1
1. Term plan
2. Endowment plan
3. Whole life plan
4. Money back plan.

Q45. Which body has created a call center for logging a complaint 2
2
1. Life Insurance Council
2. IRDA
3. Insurance Association
4. Insurance Institute of India

Q46. Who controls and regulate the rates, advantages, terms and conditions th
at may be offered by insurers in the respect of general insurance business.
3 1
1. Insurance Regulatory and Development Authority.
2. Reserve Bank of India.
3. Tariff Advisory Committee.
4. Insurance Institute of India.

Q47. The charges were not fully disclosed to the customers" is a common compl
aint against..... 2 2
1. IRDA
2. Agents
3. Shareholders
4. Underwriters

Q48. How Many offices of Ombudsmen the Government body has set up to Resolvin
g insured customers grievances. 2 2
1. 15
2. 12
3. 14
4. 16

Q49. Under the hospital care rider what is the payout made 2
3
1. 10% of the sum assured
2. Specified amount multiplied by the number of days the policyholder i
s hospitalized
3. expenses incurred per day multiplied by no. of days stay in the hosp
ital
4. 100% of Sum Assured

Q50. A person suffering from lung cancer is a smoker. Here smoking can be ter
med as 3 2
1. Peril
2. Hazard
3. Risk
4. Uncertainty
Q1. In term insurance if Critical illness rider claim happens then what will
happen to existing policy 1 1
1. CI benefit will cease
2. CI benefit reduced from existing sum assured
3. CI benefit continues
4. No change in policy.

Q2. Insurance Market divided into 2 1
1. Endowment and Money Back Insurance
2. Life and General (non-life) Insurance
3. Government and Private Insurance Markets
4. Health and Saving Insurance Markets

Q3. The business of Insurance is connected with................ 2
2
1. physical values of assets
2. economic values of assets
3. metaphysical values of assets
4. market values of assets

Q4. What is the main objective of taking the life insurance policy?
4 4
1. Tax benefit
2. Savings
3. Investment
4. Protection

Q5. Available Loan amount under a life Insurance policy is generally based o
n 3 3
1. Total paid premium
2. Sum Assured
3. Surrender value
4. Paid up value

Q6. Mr. shailsh has an endowment policy with 30 years policy term, he has pa
id for eight years. The sum assured Rs.8,00,000/- and accumulated bonus Rs.60,0
00/-. What is the paid up value if bonus accumulated and if not bonus accumulate
d? 1 1
1. 213333 & 273333
2. 213333 & 229333
3. 229333 & 273333
4. 229333 & 293333

Q7. Mr. shailsh has an endowment policy with 30 years policy term, he has pa
id for eight years. The sum assured Rs.8,00,000/- and accumulated bonus Rs.60,0
00/-. What is the paid up value? 3 3
1. 213333
2. 229333
3. 273333
4. 293333

Q8. Net premium is equal to 3 3
1. Premium plus interest earning
2. Risk premium plus interest earning
3. Premium minus interest earning
4. Risk premium minus interest earning

Q9. Pooling of risk in insurance means 2 1
1. The premium collected & deposited in a pool
2. All similar risks are pooled together
3. Premium is pool to make claims
4. Contribution of insurance company

Q10. Life insurance is the most important for which age group 2
2
1. Young
2. Pre- retirement
3. Retirement
4. children

Q11. Total annual premium Rs 32000 quarterly loading done 4 %. Hence actual q
uarterly premium will be 3 3
1. 7680
2. 9320
3. 8320
4. 6600

Q12. Mr.Shanth has taken an endowment policy of 15 years with ABC insurance c
ompany. He has paid premium for 4 years and he could not pay premium for 5th and
6th year. In the 7th year he approaches the company to renew the policy. Now wh
ich of the following options will apply to him? 3 3
1. The policy will be renewed on the existing terms and conditions.
2. Mr. Shanth cannot renew the policy
3. the policy may be renewed on different terms and conditions
4. Mr. Shanth can renew the policy only on the approval of the insurer

Q13. Which of the following statement is not true in connection with nominati
on? 3 2
1. The life insured can nominate one or more than one person as nominee
s.
2. Nomination can be done either at the time the policy is bought or la
ter.
3. A person having a policy on the life of another should make a nomina
tion.
4. The section 39 of the Insurance Act 1938 speaks about the nomination
.

Q14. How assignment distinguishes itself from nomination? 1
1
1. Nomination does not transfer the title while assignment does.
2. Nomination transfers the title while assignment does not.
3. Nomination is made after policy is issued while assignment is done b
efore it is issued.
4. Nomination need not be informed but assignment needs to be informe4.

Q15. Rakesh has bought an Endowment, Money back, Term & Annuity Plan he would
like to avail Loan from: 1 1
1. Endowment Plan
2. Term Plan
3. Money Back Plan
4. Annuity Plan

Q16. Maximum Life cover 1 1
1. 20 times annual salary
2. 500000
3. 1500000
4. 4000000

Q17. What does the mortality tables contains ? 4 4
1. Tables of death occurring in various circumstances
2. Tables of details of various probabilities of death
3. Tables of details of underwriters calculation on death
4. Tables of details of actuarial calculation on death

Q18. Which of the following information does not appear in the First Premium
Receipt? 2 2
1. method and frequency of premium payment
2. Date of commencement of last premium
3. Date the policy matures
4. Date the last premium will be paid

Q19. Ram Lal is an insurance policyholder. He has recently shifted his home f
rom New Delhi to Noida. He wants the address to be changed. This change in polic
y document will be effective through? 3 3
1. Terms & Condition.
2. Preamble.
3. Endorsement.
4. Schedule.

Q20. In which of the following plan remaining part of the Sum Assured is paid
on maturity? 3 3
1. Endowment Plan
2. Convertible Plan
3. Money Back plan
4. Term Plan

Q21. What does MDRT Stand for? 1 1
1. Million Dollar Round Table
2. Major Double Rupees Tag
3. Major Dollar Round Tag
4. Mean Disposition Residence Time

Q22. What is purpose of investing money in debt mutual fund? 4
4
1. Easy access
2. Fixed income
3. Tax Benefits
4. Liquidity

Q23. If a person want to maintain emergency funds the best place is a bank or
3 3
1. Equity market
2. ULIP
3. Debt mutual fund
4. FD

Q24. After maturity In a Unit Linked Life Insurance Policy, customer does not
get received Maturity in a lump sum. What is the possibility of receiving it in
installments if it is not a annuity plan 2 2
1. He has switched his fund
2. He has opted for Settlement option
3. He has he has redirected his past premium.
4. Policy was lapsed on the time of maturity

Q25. A customer surrenders his policy on Feb 2010 As per Agents code of condu
ct, an agent can get a new policy from this customer from Feb which year
1 1
1. 2011
2. 2012
3. 2013
4. 2014

Q26. Mukesh buys shares at lower price and sold at higher price, the Differen
ce between the two prices is known as: 2 2
1. Dividend Income
2. Captial Appreciation
3. Bonus Share
4. Interest on share

Q27. According to IRDA guidelines, how long does an insurance company have to
complete its investigation of a claim? 4 2
1. 30 days
2. 90 days
3. 120 days
4. 180 days

Q28. In case of a term plan the maximum premium of the accidental rider can b
e. 3 Not Attemped
1. 100% of basic premium.
2. 50% of basic premium.
3. 30% of basic premium.
4. 35% of basic premium.

Q29. When should an agent disclose the commission which he will earn from the
product which he is going to sell 1 4
1. When the customer asks him
2. After the fact finding process
3. After quantifying the need
4. After the product is recommended to the client

Q30. The savings needs of a particular individual is majorly determined by
4 1
1. Amount of disposable income.
2. Current assets.
3. Current liabilities.
4. Duration of investment.

Q31. Manish and Manisha is a married couple with one child. They want to plan
for savings, child education/marriage and their retirement and protection of in
come. Which should be their lowest priority? 1 1
1. Marriage.
2. Savings.
3. Education.
4. Protection.

Q32. Where one can approach in case of dispute? 2 2
1. IRDA
2. Consumer Forum
3. Distric Forum
4. National Forum

Q33. The concept of need based selling involves 3 3
1. Selling what company wish to sell.
2. Selling what adviser wish to sell.
3. Selling what customer requirement is.
4. Selling what IDRA wants company to sell.

Q34. During a fact finding process the need analyzed were income replacement
and childrens education. But the customer insists on only a child plan for the ti
me being and asks the agent to give him a child plan. The agent should.
3 3
1. Do the fact finding exercise again
2. Insist with the client to take a term plan
3. Give a child plan and revisit the client on a later date
4. Give the lead to another agent

Q35. Anand received post taxation 5% return on his fixed deposit in a bank. I
f his net return is 3%, what can be the reason 2 2
1. Administrative charge
2. Inflation
3. Interest rate
4. Market Risk

Q36. What is the stipulated time frame within which an insurer is supposed to
respond after receiving any communication from its policyholders? 3
3
1. 24 hours
2. 1 day
3. 10 days
4. 30 days

Q37. What key benefit high persistency ratios have on insurance adviser?
1 1
1. High renewal income.
2. Less renewal income.
3. Fewer client bases.
4. Unsatisfied clients.

Q38. Amit & Rashmi are newly married. Both are working couple. They want to i
nvest their savings of 100,000 annually to build corpus to make down payment for
their house 5 years from now. An adviser sold than a unit link product to meet
their requirement. This may result in 2 2
1. Ruining the long term reputation of company.
2. Opportunity of new business for adviser.
3. Bad reputation of the individual adviser.
4. Financial burden on the couple.

Q39. Why a building long term relationship with clients is necessary?
3 4
1. A satisfied client may be the source of other potential clients
2. Reviewing financial needs and plans are necessary with changes
3. Agent has the option to recommending highest commission at any time.
4. Introduction of a new insurance product or a change in a clients Circ
umstance

Q40. An indemnity bond was signed in a policy when the claim was paid. This i
ndicates that the policy was. 1 2
1. It was lost.
2. It was paid up.
3. It was lapsed.
4. It was surrendered.

Q41. What is meant by a claim under insurance policy? 2
1
1. A demand to fulfill the policyholders obligations.
2. A demand to fulfill the insurers obligations.
3. Any demand made by the policyholder on the insurer.
4. All of the above.

Q42. Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He als
o has an ADB rider worth Rs. 4 lakhs. Unfortunately Baskar died in a car acciden
t. How much will be the death claim settlement? 3 3
1. Total 7 lakhs will be paid as death had taken place
2. Total 4 lakhs will be paid as death had happened due to car accident
3. Total 11 lakhs will be paid
4. Total 7 lakhs will be paid without any deduction.

Q43. Insurer will not pay the claim unless 3 4
1. The policyholder makes a demand.
2. The nominee makes a demand.
3. The event insured against happens.
4. The insurer completes the enquiry.

Q44. If a case is already before the consumer forum, then the ombudsman shoul
d 3 1
1. Give a recommendation
2. Give a joint decision with the consumer forum
3. Dismiss the case
4. Give an award.

Q45. Ombudsman passes an award within which time 1 1
1. 1 month
2. 2 months
3. 3 months
4. 6 months

Q46. What is the maximum stake can foreign company has in one insurance compa
ny in India? 2 2
1. 0.74
2. 0.26
3. 0.24
4. 0.76

Q47. The Ombudsmans powers are restricted to insurance contracts of value not
exceeding? 4 4
1. 50 lakhs
2. 30 lakhs
3. 25 lakhs
4. 20 lakhs

Q48. Which is the Regulation that insists that all the insurance companies sh
ould provide the information about the insurance ombudsman of that region while
sending the policy documents. 2 1
1. Policyholder grievance Regulation
2. Policyholders Protection regulation
3. Ombudsman Regulation
4. Compliance Regulatory

Q49. For an insurance advisor churning is.............practice 2
Not Attemped
1. good
2. bad
3. compulsory
4. appreciable

Q50. Mr. Sharma is a newly recruited insurance advisor. To meet his month tar
get he explains only the good points of newly launched plan to his customer. Her
e Mr. Sharma's behavior is............ 2 2
1. ethical
2. unethical
3. professional
4. Perfect.


Q1. Insurance Market divided into 2 2
1. Endowment and Money Back Insurance
2. Life and General (non-life) Insurance
3. Government and Private Insurance Markets
4. Health and Saving Insurance Markets

Q2. A contract comes into existence when 1 1
1. One party makes an offer which the other party accepts unconditional
ly.
2. One party makes an offer which the other party put extra conditions.
3. One party makes an offer where other party gives counter offer.
4. One party makes an offer which the other party receives the offer.

Q3. life insurance the risk is determined on the basis of ..........
2 3
1. future data
2. past data
3. statistical data
4. mathematical data

Q4. How are perils and hazards normally distinguished under term insurance p
olicies? 2 2
1. Perils are medical factors which influence the risk of dying and haz
ards are lifestyle activities which influence the risk of dying.
2. Perils are risks that policyholders will die before a specified date
and hazards are factors which could influence that risk.
3. Perils are factors which affect the risk being insured and hazards a
re the size of the risk being insured.
4. Perils are factors which could influence an insured event occurring
and hazards are the actual events which will trigger a payout

Q5. Available Loan amount under a life Insurance policy is generally based o
n 3 3
1. Total paid premium
2. Sum Assured
3. Surrender value
4. Paid up value

Q6. Ram works in a Fire cracker factory. He stocks the cracker in his house.
He runs which type of risk. 3 3
1. Speculative.
2. Particular.
3. Financial.
4. Fundamental.

Q7. Mr. shailsh has an endowment policy with 30 years policy term, he has pa
id for eight years. The sum assured Rs.8,00,000/- and accumulated bonus Rs.60,0
00/-. What is the paid up value? 3 3
1. 213333
2. 229333
3. 273333
4. 293333

Q8. If the sum assured remains the same, what will be impact of net premium
if the age of the policyholder increases 3 3
1. It rises
2. It falls
3. It remains constant
4. Gross premiums increases

Q9. The reduction in the benefit illustration shows what. 1
1
1. Charges.
2. Mortality.
3. Interest.
4. Inflation.

Q10. Rajesh is 34 years old and having 2 sons, Vineeth and Sumith. The level
of risk appetite, Rajesh belongs is _______. 4 4
1. Middle Level
2. Top Level
3. Low Level
4. High Level

Q11. In an insurance contract the insurable interest needs to be at the time
of .... 3 3
1. claim
2. revival
3. inception
4. surrender

Q12. Mr.Shanth has taken an endowment policy of 15 years with ABC insurance c
ompany. He has paid premium for 4 years and he could not pay premium for 5th and
6th year. In the 7th year he approaches the company to renew the policy. Now wh
ich of the following options will apply to him? 3 3
1. The policy will be renewed on the existing terms and conditions.
2. Mr. Shanth cannot renew the policy
3. the policy may be renewed on different terms and conditions
4. Mr. Shanth can renew the policy only on the approval of the insurer

Q13. Mr.Karan who has to go to abroad for 6 months on an official work decide
s to leave his car with his friend Mr. Jim. What will be the validity of the ins
urable interest in this case ? 3 3
1. The insurable interest between the car and jim is valid for 6 months
2. The insurable interest between the car and karan is valid for 6 mont
hs
3. The insurable interest between the car and karan is valid until he o
wns it
4. The insurable interest between the car and Jim is valid until Karans
return

Q14. Shamsher has a health insurance policy of ` 1, 00,000 individually and f
rom his company for ` 2, 00,000. He falls sick and got hospitalized. His hospita
l bill ran to ` 50,000. He claimed this amount from his individual policy. Also,
he placed the request with his company for group policy claim, which was reject
ed. The reason for rejection is. 1 1
1. Indemnity contract.
2. Value contract.
3. Deemed contract.
4. Rolling contract.

Q15. How assignment distinguishes itself from nomination? 1
1
1. Nomination does not transfer the title while assignment does.
2. Nomination transfers the title while assignment does not.
3. Nomination is made after policy is issued while assignment is done b
efore it is issued.
4. Nomination need not be informed but assignment needs to be informe4.

Q16. Vishal and sandeep applied for a health plan in XYZ Life Insurance Compa
ny. Vishal is asked to undergo a medical checkup but Sandeep is not asked to do
so. What will be most possible reason? 2 1
1. Sandeep has taken another policy from XYZ Life Insurance Company
2. Vishal is older than Sandeep
3. Sandeep is earning more then Vishal
4. Vishal is working in a MNC

Q17. Law of Large number helps the insures to 3 3
1. Calculate the premium
2. Increase the profitability
3. Ascertain the death ratio
4. Declare the bonus

Q18. Mr. Guptha is recently detected with lung cancer. He would like to take
an insurance. What is your suggestion? 4 4
1. Time of death is uncertain, so insurance can be given
2. Only lung is affected so health insurance can be given.
3. He can take insurance after submitting health certificate
4. Cannot give insurance for health reason

Q19. Level Premium is calculated based on 1 1
1. Risk Premium.
2. Net Premium.
3. Loading of Premium.
4. Gross Premium.

Q20. Whose signature is required on attestation of the policy? 3
3
1. Agent
2. Policy holder
3. Authorized officials of insurer
4. Proposer

Q21. Mr. Vinu got a job recently, he cant afford to pay to pay the higher prem
ium as of now but in future once he settles down with his job he can pay higher
premium. Which one will be the best plan? 2 Not Attemped
1. Convertible Endowment plan
2. Convertible Term plan
3. Convertible pure Endowment
4. Convertible money back plan

Q22. Mr. Denny is married and has 2 children and his parents are alive. He ha
s taken a family floater plan. Under the plan who all will be covered. 4
4
1. Denny
2. Denny and his wife
3. Denny, his wife and children
4. Denny, his wife, his children and his parents

Q23. A customer surrenders his policy on Feb 2010 As per Agents code of condu
ct, an agent can get a new policy from this customer from Feb which year
1 1
1. 2011
2. 2012
3. 2013
4. 2014

Q24. Under current regulations what is the maximum stake that the Foreign Par
tner in Insurance Company hold? 4 4
1. 0.48
2. 0.5
3. 0.6
4. 0.26

Q25. Which is the primary saving need among all saving needs? 4
4
1. Insurance
2. Purchasing House
3. Investment.
4. Contingency/ Emergency Fun4.

Q26. Time deposit account is issued by: 1 1
1. Post office
2. Bank
3. Mutual Fund
4. Life Insurance co.

Q27. In Cumulative bank deposit the interest that in normally compounded on w
hat basis. 2 2
1. Monthly
2. Quarterly
3. Half Yearly
4. Annually

Q28. Mr. X is married with wife, 2 children and aged parents Health premium i
s allowed for 4 4
1. X only
2. X with wife
3. X with wife and kids
4. X with all

Q29. Anand has purchased a pension plan which is nearing completion of accumu
lation phase. He is in need of finances to make down payment of car he wants to
purchase. At the end of accumulation phase how much he can make tax free withdra
wal? 2 2
1. 1/5th of accumulated amount.
2. 1/3rd of accumulated amount.
3. 2/5th of accumulated amount.
4. 2/3rd of accumulated amount.

Q30. Gaurav bought an endowment plan for 20 year of 10 lac SA with ADB Rider,
died in road accident after 10th year how much money claimant would be payable:
2 2
1. 10 lac
2. 20 lac
3. 30 lac
4. 5 lac

Q31. In the context of financial planning, how is the difference between real
needs and perceived needs best described? 2 2
1. Real needs are financial needs and perceived needs are non-financial
needs.
2. Real needs are actual needs and perceived needs are based on a clien
ts thoughts and desires.
3. Real needs are identified by the insurance agent and perceived needs
are identified by the client.
4. Real needs are needs which satisfy an objective and perceived needs
are needs which do not satisfy an objective.

Q32. Under section 80C the maximum tax deduction that can be gained for premi
um paid is _______ in a financial year. 4 4
1. Rs. 75,000
2. Rs. 1, 10,000
3. Rs. 1, 20,000
4. Rs. 1, 00,000

Q33. Perceived needs are those. 3 3
1. Short term needs.
2. Imagined to be important by Advisor.
3. Imagined to be important by client.
4. Long term needs.

Q34. What should an agent do in order to understand the mental state of clien
t in respect to his investments in saving products 1 1
1. Fact finding
2. Consulting the clients parents
3. Consulting the family of the client
4. Reviewing his existing investments

Q35. Objectives of fact-finding do not include- 4 4
1. Identify needs
2. Gathering client data
3. Provide for anticipated changes
4. Surrendering the existing policies for selling new one

Q36. What is the stipulated time frame within which an insurer is supposed to
respond after receiving any communication from its policyholders? 3
3
1. 24 hours
2. 1 day
3. 10 days
4. 30 days

Q37. What is the factor which has influence on persistency? 4
4
1. Role of Agent
2. Product Design.
3. Policy Servicing
4. All of the above.

Q38. Satish as an insurance advisor while recommending to his client Ramesh i
s not suitable policies 4 4
1. Satish should check the Ramesh s commitment to the needs
2. Satish should outline the reasons for recommendation for a particula
r policy
3. Satish should check the acceptance or rejection of the recommendatio
n.
4. Should advised him to surrender all the polices which are not buy fr
om satish.

Q39. Why a building long term relationship with clients is necessary?
3 3
1. A satisfied client may be the source of other potential clients
2. Reviewing financial needs and plans are necessary with changes
3. Agent has the option to recommending highest commission at any time.
4. Introduction of a new insurance product or a change in a clients Circ
umstance

Q40. For the customer whose claim has been refused by the company, the three
places where he/she should follow up are Ombudsman, IRDA Customer Grievance Cell
and .. 1 1
1. Consumer Forum
2. COPA
3. Sebi
4. Life Insurance Council

Q41. Vinay doesnt want to take insurance on himself. He feels that his family
will survive with the funds available in the bank and monthly rentals received f
rom village. This comes under Risk ______ 3 3
1. Transfer
2. Control
3. Retaining
4. Avoidance

Q42. In the process of settling maturity claims.... 2 2
1. the company will wait until the claimant comes to office to demand t
he claim
2. the process is initiated by the company well in advance of the matur
ity date
3. it is the responsibility of the claimant to approach the company
4. If the claimant does not come within a month the entire maturity amo
unt will be forfeited.

Q43. Insurer will not pay the claim unless 3 3
1. The policyholder makes a demand.
2. The nominee makes a demand.
3. The event insured against happens.
4. The insurer completes the enquiry.

Q44. What is the major reason for conducting fact finding exercise? 1
1
1. Need analysis
2. Understand about company
3. Introduction of agent
4. Understanding the Customer

Q45. What is the maximum stake can foreign company has in one insurance compa
ny in India? 2 2
1. 0.74
2. 0.26
3. 0.24
4. 0.76

Q46. Which official body decides to increase the interest rates? 2
2
1. Central bank of India
2. Reserve bank of India
3. Reserve bank of country
4. Central bank of country

Q47. If a policy holder buys a policy from the advisor and lodges a complaint
, it should be treated as : 1 3
1. Same for all policies sold by advisor
2. Same for all policies sold by the advisor except corporate clients
3. Only for policy for which complaint has been given
4. None applicable

Q48. What is the disadvantage to the insurer in case the persistency falls
1 4
1. Lower profits
2. Higher profits
3. Increased Liability
4. Decreased Life fund

Q49. License of an agent was withdrawn in June 2010 due to malpractice. He ca
n reapply for his license in 1 4
1. 2015
2. 2014
3. 2013
4. 2017

Q50. Mr. David an agent had helped Mr. Srinivasan to take an endowment policy
on Feb 200As srinivasan was finding it difficult to pay the premium, Mr. David
had advised him to surrender this policy and to apply for a lower premium policy
. This is called as ? 1 3
1. Churning of the policy
2. Surrendering the policy
3. Switching the policy
4. Claiming the policy

Q1. The concept of indemnity is based on the key principle that poli
cyholders should be prevented from 4 4
1. Insuring existing losses.
2. Making false insurance claims.
3. Paying excessively for insurance cover.
4. Profiting from insurance.

Q2. For assessing the risk of a group health insurance policy, which of the
following information is the most critical 3 3
1. Group lifestyle
2. Employees
3. Age of the group
4. Medical history of group

Q3. Insurance Market divided into 2 2
1. Endowment and Money Back Insurance
2. Life and General (non-life) Insurance
3. Government and Private Insurance Markets
4. Health and Saving Insurance Markets

Q4. With pooling of risks an insurance company pools the premium collected f
rom several individuals to insure them against similar risks. At what circumstan
ces will the insurance companies pool the risk of a life insurance and health in
surance together? 1 1
1. Under no circumstances
2. Under conditions of the reinsurer
3. As directed by actuary
4. As per company policy

Q5. According to insurance terminology which of the following is correct?
2 3
1. Lung cancer is a hazard whereas smoking is a peril
2. Smoking is a hazard and lung cancer is a peril
3. Lung cancer is a peril and smoking is a moral hazard
4. Smoking is a moral hazard whereas lung cancer is a peril.

Q6. The function of Insurance works on.. 1 1
1. Risk Transfer
2. Risk avoid
3. Risk retention.
4. All of the above.

Q7. If bonus is given under a plan the additional premium added is known as
1 1
1. Loading
2. Investment
3. Frequency
4. Interest

Q8. In case of a term plan the maximum premium of the accidental rider can b
e. 3 3
1. 100% of basic premium.
2. 50% of basic premium.
3. 30% of basic premium.
4. 35% of basic premium.

Q9. In a pension plan illustration what are the parts which shows the benefi
t for an annuitant. 3 3
1. Insurance coverage
2. Annuity part
3. Guaranteed and non guaranteed part
4. Vesting age

Q10. The principle of utmost good faith is not applicable to 4
4
1. Facts of common knowledge
2. Facts of law
3. Facts those are not material.
4. All of the above.

Q11. Mr.Karan who has to go to abroad for 6 months on an official work decide
s to leave his car with his friend Mr. Jim. What will be the validity of the ins
urable interest in this case ? 3 3
1. The insurable interest between the car and jim is valid for 6 months
2. The insurable interest between the car and karan is valid for 6 mont
hs
3. The insurable interest between the car and karan is valid until he o
wns it
4. The insurable interest between the car and Jim is valid until Karans
return

Q12. Mr. Raj has taken a policy of 15 year term. He has paid the premium for
9 years. But now unfortunately he has lost his job. He is unable to pay the prem
ium. What can be the best solution from the following ? 2
1
1. Converting the policy to Term policy
2. Converting the policy to Paid up
3. Converting the policy to money back
4. Converting the policy to whole Life

Q13. A contract exists between insurer and proposer when 1
2
1. A proposal has been accepted by insurer.
2. A policy document has been stamped by insurer.
3. A policy document has been received by the policyholder.
4. An insurer has made another proposal.

Q14. Payment of premium and sum assured are laid down in 3
3
1. Heading of policy document.
2. Proviso of policy.
3. Operative clause.
4. Schedule of policy document.

Q15. When is premium considered / deemed to be paid? 2
4
1. When insured writes a cheque in favor of insurer.
2. When cheque amount is deposited in insurer account.
3. When the cheque is deposited with insurer office.
4. When cheque is posted/couriered by the insure4.

Q16. Vishal and sandeep applied for a health plan in XYZ Life Insurance Compa
ny. Vishal is asked to undergo a medical checkup but Sandeep is not asked to do
so. What will be most possible reason? 2 2
1. Sandeep has taken another policy from XYZ Life Insurance Company
2. Vishal is older than Sandeep
3. Sandeep is earning more then Vishal
4. Vishal is working in a MNC

Q17. Maximum Life cover 1 1
1. 20 times annual salary
2. 500000
3. 1500000
4. 4000000

Q18. In which one of the following statement an agents commission will be disc
losed to the customer ? 2 4
1. Customer Statement of the product
2. Benefit illustration of unit linked product
3. Benefit illustration of endowment product
4. Customer data sheet with the product

Q19. MPL abbreviates 4 4
1. Minimum Possible Loss.
2. Major Possible Loss.
3. Minor Possible Loss.
4. Maximum Possible Loss.

Q20. Incase of presumption of death 2 Not Attemped
1. Not necessary to pay premium until court decree
2. Necessary to pay premium until court decree
3. Claim not admissible
4. Depends on case to case

Q21. Low risk products give.. 2 2
1. High Returns
2. Low Returns
3. Moderate Returns
4. Good Returns

Q22. In which section of Policy document, Information about the location of t
he insurance Ombudsman had written? 3 3
1. Operative clause
2. Attestation
3. Information statement
4. Endorsements

Q23. Varun wishes to pursue a career in insurance and wishes to be in a depar
tment which calculates the level of premium. In which department should he join?
1 1
1. Actuary
2. Underwriter
3. Claim Department
4. Accounts

Q24. Mr. Rajgopal has invested some money. He has been informed clearly about
the tenure, interest rate and method of payment of interest at the inception of
the investment itself. His investment may be in..... 4 4
1. Life Insurance
2. Mutual fund
3. Shares
4. Bank deposits

Q25. In which of the following Bank pays the Interest on the deposits fund on
monthly /quarterly /half yearly/ yearly basis as chosen by depositor fund:
3 3
1. Saving Deposit
2. Cumlative deposit
3. Traditional Deposit
4. Fixed Deposit

Q26. Vinod being an insurance agent can offer assistance to his client Ramesh
by: 2 2
1. Providing him emergency fund.
2. Matching the product with Rameshs financial need.
3. Recommendation of product with highest return.
4. Discourse saving in a purposeful and need based manner.

Q27. According to IRDA guidelines, how long does an insurance company have to
complete its investigation of a claim? 4 4
1. 30 days
2. 90 days
3. 120 days
4. 180 days

Q28. Certificate from the village panchayat 2 2
1. Will be considered as standard age proof
2. Will be considered as non standard age proof
3. Will not be accepted
4. Will be verified first

Q29. National insurance academy has the following main functions 3
3
1. Calculating premium
2. Interact with the government
3. Training
4. Mortality assumptions

Q30. Venu, aged, 32, had a Insurance cover of 10, 00,000/- . He was approache
d by an advisor who made some analysis and told him that his Insurance need is h
igher than 10, 00,000 and suggested that he surrenders the existing policy and b
uys a new one. This is an example of 1 1
1. Churning
2. Proposing
3. Underwriting
4. Switching

Q31. In the context of financial planning, how is the difference between real
needs and perceived needs best described? 2 2
1. Real needs are financial needs and perceived needs are non-financial
needs.
2. Real needs are actual needs and perceived needs are based on a clien
ts thoughts and desires.
3. Real needs are identified by the insurance agent and perceived needs
are identified by the client.
4. Real needs are needs which satisfy an objective and perceived needs
are needs which do not satisfy an objective.

Q32. Where one can approach in case of dispute? 2 2
1. IRDA
2. Consumer Forum
3. Distric Forum
4. National Forum

Q33. Which are the two primary needs of any customer in any point of life?
2 2
1. Investment and retirement
2. Investment and Protection
3. Investment and savings
4. Investment and life needs

Q34. Mr. Govind, Advisor with ABC life insurance company find out one client
is seeking solutions for health care and inheritance planning. Which main life s
tage he most likely to fall into? 3 2
1. Young Unmarried.
2. Young married with children.
3. Retirement.
4. Children.

Q35. Which one of the following documents distinguishes between Guaranteed an
d non-guaranteed benefits? 2 2
1. KYC documents
2. Benefit illustration documents
3. Fact-finding sheet
4. Financial details

Q36. If the client does not wish to proceed with the recommendations right at
the moment the agent should 2 2
1. Insist on taking the product right away
2. Should ask for the reason for not going with the recommendation
3. Should ask for a future date from the client
4. Should review once again

Q37. What is the stipulated time frame within which an insurer is supposed to
respond after receiving any communication from its policyholders? 3
3
1. 24 hours
2. 1 day
3. 10 days
4. 30 days

Q38. What is the factor which has influence on persistency? 4
4
1. Role of Agent
2. Product Design.
3. Policy Servicing
4. All of the above.

Q39. After undertaking financial planning exercise, the prospective client sa
id that he does not have funds for investments. To resolve this query, which ski
ll of an agent would be tested? 1 1
1. Objection handling skills.
2. Listening skills.
3. Communication skills.
4. Client information gathering skills.

Q40. Which is the right statement regarding claim enquiry? 1
1
1. The insurance company makes enquire only on death claims.
2. The insurance company makes enquire on maturity claims only.
3. Enquiry will be done on both Maturity and Death Claims.
4. Enquiry will be done if death happens before one year from policy in
ception date.

Q41. When a policy is lost, insurance company take utmost care while settling
maturity claims because 2 2
1. The claim may not be genuine.
2. The policy may be pledged.
3. The facts were misrepresented.
4. There is no nomination.

Q42. Ajay has bought an endowment with profit plan for 20 year .if he took a
Loan after 5th of commencement of policy and died before 2 year of Maturity .wha
t would be payable on maturity? 3 3
1. only Sum assured
2. Sum Assured + Bonus
3. Sum assured plus vested bonus minus any outstanding loan/premium & I
nterest.
4. Paid up value only.

Q43. Under what kind of Rider the insurance company pays the treatment cost i
n the event of hospitalization of the insured, subject to term & Condition of th
e rider. 3 3
1. Accidental death benefit (ADB)
2. Critical illness (CI)
3. Hospital Care (HC)
4. Term Rider.

Q44. As per the IRDA circular an insurance agent....... 3
3
1. need not disclose the amount of commission
2. need to disclose the amount of commission
3. need to disclose the amount of commission on demand
4. Should not disclose.

Q45. What is the maximum stake can foreign company has in one insurance compa
ny in India? 2 2
1. 0.74
2. 0.26
3. 0.24
4. 0.76

Q46. Which of the following team represents the members of GBIC ? 1
1
1. Representatives from all insurance companies
2. Representatives from all government bodies
3. Representatives from IRDA
4. Representatives from Insurance institute of India

Q47. What will be lien amount in 3rd year as compared to the 4th year of lien
. 2 2
1. It is higher
2. Decrease
3. Slightly higher
4. Slightly lower

Q48. How many ombudsmen offices located in India? 2 2
1. 10
2. 12
3. 14
4. 15

Q49. Which tax rate is applicable, in case of Client pays the premium of 5000
/- and suffers illness before maturity? 1 Not Attemped
1. Nil
2. 0.1
3. 0.2
4. 0.3

Q50. Mr. David an agent had helped Mr. Srinivasan to take an endowment policy
on Feb 200As srinivasan was finding it difficult to pay the premium, Mr. David
had advised him to surrender this policy and to apply for a lower premium policy
. This is called as ? 1 1
1. Churning of the policy
2. Surrendering the policy
3. Switching the policy
4. Claiming the policy