Revised syllabus Chapter No.

Question Ans Option 1 Ans Option 2 Ans Option 3

The Non Government organizations(NGO)
1 Promotional activities Drafting new regulations Linking buyers and sellers
helps the insurance industry immensely in
Investment by foreign direct investors in to
1 12% 25% 40%
Insurance co's is restricted to
Which market does the Micro Insurance
1 People with large families People with Low Income Government Employees
Concentrate on ?
What facility do the insurer use to cover Risk
1 Re Insurance Banca assurance NGO
beyond their Limits ?
what is the max level under which micro
1 5000 25000 50000
insurance can be done
1 Who is the customer of a Re insurer High Networth Individual Insurance Companies Licenced Insurance Agents
Insurance company transfers the insurance
1 Bancassurance Reinsurance TPAs
which cannot bear by them to

1 Which body has created a call center for

logging a complaint Life Insurance Council IRDA Insurance Association

If a client want to compare between all financial

1 Individual agent corporate agent bank
products then the best person he can approach is

What is the maximun sum assured under a micro

1 10000 25000 50000
insurance
lung cancer is peril and smoking is peril and lung cancer
2 lung cancer and smoking . Death is certain
smoking is moral hazard is hazard

2 The type of risk that can be insured against is Speculative Risk Pure Risk Pure & Speculative risk

2 The premium collected & All similar risks are pooled

Pooling of risk in insurance means deposited in a pool together Premium is pool to make claims

2 If person consumes alcohol- what is the type Technical hazard

Moral Hazard
of hazard

Perils are risks that policyholders will

Perils are medical factors perils are factors which affect the risk
How perils and hazards normally distinguished die before a specified date and
2 which influence the risk of being insured and hazards are the size
under term insurance policies? hazards are factors which could
dying and hazards are of the risk being insured.
influence that risk.
lifestyle activities which
influence the risk of dying.
Law of large number is worked out by which of the
2 Pooling of risk Maintaining insurable interest With utmost good faith
following?

With pooling of risks an insurance company pools

the premium collected from several individuals to
insure them against similar risks. At what
2 Under no circumstances Under conditions of the insurer As directed by actuary
circumstances will the insurance companies pool
the risk of a life insurance and health insurance
together?
 According to insurance terminology which of the Lung cancer is a hazard where Smoking is a hazard and lung cancer Lung cancer is peril and smoking is a
2 following is correct? as smoking is a peril is a peril moral hazard

Harish takes a life insurance policy for

Ramesh. Which of the following statement Ramesh declares all his
3 Ramesh is elder than Harish Ramesh owes money form Harish
best describes the principle of Insurable liabilities
Interest.
what is the min age to enter into the contract
3 16 18 20
of insurance
In a whole life plan - The policyholider's at the beginning of the
3 through out the contract Revival stage
responsibility to give disclosure contract
3 Types of assignment Absolute Term assignment Conditional
why does an insurer insist on age proof
3 SA Risk assessment Identity verification
document . To assess
Mr A submitted the proposal form . When will Submission of proposal
3 FPR issued Policy issued
the risk begins for the company? form
The obligation of the insurer for the whole life
3 Operative Clause Preamble Proviso
policy is mentioned in
3 The risk commencement date of policy is After the U/W process Premium receipted Policy is dispatched
Asvath is illiterate. He wants to take policy
and surya is a friend of his help him is
policy document need to be
3 answering questions and answers and also Asvath photograph asvath thump impression Only
registered
fills proposal . In addition to this requirement
is

Baptism Certificate is Standard &

For Logging a Policy , a person gives Baptism Both are Standard Age Both are Non standard Age Proof
3 Ration Card is Non Standard Age
CERTIFICATE & Ration Card . What is this ? Proof
Proof
To be a valid contract ,the declaration is
3 Policy Document proposal form FPR
necessary in which document

Mr. ABC buying Term insurance policy, insurer

3 should mention Ombudsman address in operative clause Preamble Information statement
which part of policy document?

Zainab takes insurance in the life of Jasmeet.

3 Proposer Nominee Appointee
Zainab will be called as
Mr.Suresh dies one day before the grace
3 period without paying the premium, what is th No claims payable All premiums paid Sum assured
claim payable
Loan is available for a policy in which there is
3 Fund switch Savings Element Partial withdrawal
a feature of
3 Appointee's role Signature on the proposal Medical exams insurable interest
how many nominees can be attached to a
3 one two three
term insurance policy
 if a policy has two nominee mentioned what Each nominee to get Min the first nominee should have
3 Each Nominee to get Min 25%
should be the Min allocation 10% more than second
a Policy holder takes a insurance contract for
Age proof was substantially
3 30 years and the SA reduces after 25 years No bonus accumulated Policy has become paid up
wrong
what could be the likely reason

A life insurance policy can only be made paid

3 Indexing contribution. Nomination facility. Rider benefits.
up if what particular policy feature exists?

3 Reasons for surrender of the policy SA advisor induced no commission

3 Principle of utmost good faith will operate in If the policy has lapsed and it If the insured person falls sick and
existing policy Every time premium is paid has to be revived is admitted to hospital
Both the parties to a contract must agree and
3 understand the same thing and in the same
sense which is called Consideration Legality of an object Consensus ad idem

3 In case of life insurance, Insurable interest

must exist At inception of policy Not needed At the time of claim
The regulations issued by the IRDA, require
3 that the decision on the proposal must be 15 days of receiving the
conveyed to the proposer within proposal 20 days of receiving the proposal 25 days of receiving the proposal

3 Indisputability clause can be enforced by the

First five years of policy First Two years of policy Claim
insurance company during the
In which section of Policy document,
3 Information about the location of the
insurance Ombudsman had written Operative clause Attestation Information statement

3 What amount of insurable interest does an Up to the sum assured taken in the
20,000 50,000
individual have in his own life plan

3 Nomination can be in favor of how many

people? One person Two persons Three persons

3 Will be considered as Will be considered as non

Certificate from the village panchayat standard age proof standard age proof Will not be accepted

Ashu is an illiterate person and his proposal

3 form was filled by Nishu, then what is the The policy needs to be
additional requirement to be taken along with advertised in the Nishu has to sign an indemnity Thumb impression of Ashu has to
the documents. newspaper. bond. be taken.

3 With reference to the principle of indemnity a

life insurance policy is a. Insurance contract. Indemnity contract. Value contract.

Benefit Illustration given to a customer

3 quantifies an amount by which investment
return is reduced. This reduction reflect the
impact of Charges. Mortality. Interest.

3 Available Loan amount under a life Insurance

policy is generally based on Total paid premium Sum Assured Surrender value
 Mr Shailesh has an endowment policy with 30
years policy term, he has paid for eight years. The
3 89333 273333 289333
sum assured Rs 8 lac and accumulated bonus is
60,000/-. What is the paid up value?

Which of the following falls under voidable

3 Misrepresentation Lack of insurable interest Fraud
contract?

In case the customer has stoped making payments

for the premium of the policy. What are the two Reinstatement fee and proof of premium cheque and health
3 only health certificate
most important things required in order to continueing good health declaration
reinstate the policy?

The reduction in the benefit illustration shows

3 Charges Mortality. Interest
what

Sanjeev is an insurance expert who has rich

4 experience in determining premium levels for an actuary loss adjuster risk manager
product, what is his profile like
While calculating Human life value (HLV) two
4 components need to be kept in mind , the one Bank Fixed deposit rate discount rate Estimated life expectancy
is take home salary and other is

Annual premium of insurance product is Rs.

4 32,000, 4% loading on Quarterly mode of 7680 8000 8320
payment What is the quarterly premium?

To Calculate the commission due

4 why ACR To calculate Premium To verify the Plan proposed
for the agent
In a 20 year with profit policy,persist ency
4 1st Year 10th Year 15th Year
Bonus is paid at the end of

While Underwriting Mr X proposal , its found

that there has been CRIMINAL case against
4 Fraudulent Hazard Occupational Hazard Physical Hazard
him in Fraudulent act .What type of Risk this
will be categorized Into ?

Mr A wants insurance cover . But he is drinks

4 alcohol frequently . What kind of hazard you Physical hazard Moral Hazard financial risk
may categorize?
Who IS the primary underwriter of the
4 Underwriter Insuranc eCo Agent
customer?

Claim was settled however full Sum assured

4 Lein Bonus Surrender
not paid though the policy was in force due to

Lien can be considered an alternative of

4 Clause Rejection Acceptance
which of the following
4 Who is the primary Underwriter ? Actuary Insurer Doctor Underwriter of the Branch
 what is the special report that is asked by the
4 HLV report Client confidentiality report moral hazard report
underwriter from the officer of the insurer

As per the norms of risk assessment by U/W

both the parents of a policy holder died in
4 Moral Hazard Medical Hazard Occupational Hazard
their early 30s due to Heart disease, what is
the risk assessed

4 Premium plus interest Risk premium plus interest

Net premium is equal to earning earning Premium minus interest earning

Where annually increasing flexible premiums

operate under a life insurance policy, what
4 rate of increase will generally apply 2.50% 3.00% 5.00%

4 If bonus is given under a plan the additional

premium added is known as Loading Investment Frequency

4 Within how many days will the underwriter

needs to inform the policyholder regarding the
status of the policy. 10 days 15 days 30 days

Varun wishes to pursue a career in insurance

4
and wishes to be in a department which
calculates the level of premium. In which
department should he join? Actuary Underwriter Claim Department
In the personal statement, Harish declares
4 that he consumes alcohol twice every week.
This is a Moral hazard. Moral peril. Physical hazard.

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

will be mention in Proviso Schedule Terms & conditions

While calculating Human life value (HLV) along

with future income, no. of years of works,
4 Inflation Interest Rate Discount rate
increments in salary what is also to be taken into
account?

Mr Kunal used to participate in car race while

4 taking up the insurance policy he disclosed this Physical Hazards Fraudulent representation Moral hazard
information what kind of hazard does it refers to?

If the sum assured remains the same, what will be

4 the impact on net premium if the age of policy It rises It falls It remains constant
holder increases….

For which of the following reasons the underwriter

4 Physical hazards Moral hazards SA is too high
should ask beyond agents confidential report?
 If both parents of proposer died in their early
4 thirties due to heart attack, what is the kind of Insurable Hazard Moral Hazard Physical Hazard
peril or hazard the proposer has

If annual premium for a plan is Rs 32000 and

frequency loading of 4% is added in quaterly
4 RS 8000 Rs 8320 Rs 9456
premium. What is the amount that needs to be
paid?

Hari wants a constant life cover till his 31st

birthday. But he cant afford to pay high
5 Pure Endowment Anticipated endowment term plan
premiums. The best suited products for him
would be
At the time of maturity , quarter of the SA is
5 Endowment Lien Money back
paid though the policy was in force
Weekly premiums are generally collected for
5 Banca assurance Health plans Micro Insurance
which type/range of palns
Mr A is planning to invest and his needs are :1
5 Protection for is Income , during his absence Children Plan Retirement Plan Ulip Plan
2.children education

What tax rate,if any,will be applicable to a life

5 insurance policy holder for the maturity Nil 10% 20%
proceeds of a Rs 5000 life insurance policy

A policy holder can pay the premium of Rs

5 5,00,000 and what could be the max tax 500000 50000 100000
efficiency he is entitles to
Ram has Invested Rs 5000 in PPF & Rs 1
5 Lakh in Life insurance premium . In which he Life Insurance Premium PPF 50% on each
will get maximum Tax Benefit

Mr.Sumesh takes a policy and pays premium

of 20000 with a sum assured of 300000, what
5 Fully taxable 10% 20%
will be the tax implication on his maturity
amount

without submitting any form of claim,a life

insurance policy holder received payments of
5 ULIP Term Money Back
survival then what type of policy he is
holding

what is the special feature of ulip that ensures

5 customer risk profile for long time insurance fund switching partial with drawl premium holiday
policies

The best way to overcome the problem of

By Canvassing wide peer
5 investment decision depends mainly on peer Seeking professional advise Go for a low investment tranchee
group
influence is

5 Group Insurance can be taken in following Husband-wife family members

employee- employer
relationship
 Kamal is willing to pay 60000/- per annum for
5 his ULIP policy. What should be the SA in 1 lac 3 lacs 2 lacs
case he wants to avail the tax benefits

5 Suresh is suffering from Asthma and the NA

policy in been done on joint life basis and the
need for nomination under the plan is less as Joint life policy Has physical ailment

5 What is the maximum sum assured under a

micro insurance 10000 25000 50000

If Naresh wishes to take the tax benefit of the

5 full premium paid which is 60000, what
amount of sum assured should he avail in a
ULIP plan 2 lacs 3 lacs 5 lacs

Harsh’s policy matured, however he was paid

5 only 25% of the sum insured in spite of all his
premiums been paid on time. This indicates
that his policy is a Term plan. Endowment plan. Money back plan.

5 Micro insurance is made specifically for

people from. High income. Middle class. Low income.

Suresh has adequate reserve capital with him and

he wishes to protect his income, moreover he
5 Term Insurance plan Endowment plan Return of premium plan
feels that if he does not die then he would need
the amount . What type of plan should he opt for?

After maturity in a unit linked life Insurance

Policy, customer does not get received
He has he has redirected his past
5 Maturity in a lump sum. What is the possibility He has switched his fund He has opted for settlement option
premium
of receiving it in installments if it is not a
annuity plan

A person who has a temporary job Loss ,

6 where should he look for Investing other than Debt Funds of MF Govt Securities Equities
FD
RBI increased interest rates 2 times then the
6 increase decrease volatile
stock prices
A person Wants to invest in a FD for Tax
6 benefit , How many years he has to take the 5 year 4 year 3 Year
term of the FD ?
aditya wants to take home loan and his
6 monthly take home is 80,000 what as a best 20000 24000 28000
practice should be the maximum EMI
 Ramesh has invested in Post office Monthly
Income Scheme. The interest rate was set at
6 Increase gradually Decrease gradually Remain Constant
6%. What will be the effect of rate in going
years.

A person is holding 100 GOLD ETF

6 certificates . How many grams of GOLD does 10- 20 gms 20- 50 gms 50-100 gms
he Have ?

A customer while investing in to Recurring

6 deposit or Cumulative deposit what are the Taxation frequency of payment interest rates
key factors which will matter

A person planning to invest in Kisan Vikas

6 Insurance Branch Post Office Internet
Patra will go to

As an investment diversification B invested in

6 5gms /10gms 50gm/100gms 15/20gms
ETF . Whats the weight of gold in 100units?

If a person chooses Cumulative deposit than frequency of interest

6 Tax Interest tax
Recurring deposit ,difference will be in calculation

A policy holder pays identical premium

6 amount for ULIP and EPF where he gets max in ULIP policy in EPF same efficiency for both
tax efficiency
Investing in ULIP plans exempts a maximum
6 50000 75000 100000
up to what limit for Income Tax
Suresh wants to transfer his physical gold to
Reduce his encasement for next
6 gold exchange traded fund,in relation to not hedge against Inflation Decrease his liquidity
six months
access,this change will
An Investor has invested in Debt mutual
6 Equity return Fixed Income Stable income
fund,he is ideally looking for

With this type of deposit the bank pays the

6 principal and the total interest at the end of Traditional deposits Recurring deposits Cumulative deposits
the term

6 In Cumulative bank deposit the interest that in

normally compounded on what basis Monthly Quarterly Half Yearly

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

6 mid way as he required the money with the
intention of not getting the interest. What will Discounted Value with persistency
he get? Discounted Value Principle amount bonus
If RBI increases te interest rate then what will be
6 Shares will be more attractive Shares will be less attractive There will be no effect on Shares
the effect on share price.
What is the purpose of investing in debt mutual
6 Easy access Fixed Income tax benefit
fund?
 What is the similarity between Recurring deposit
6 Guarantees Tenure Taxation
and cumulative deposits in a bank
If a person want to maintain emergency fund the
6 Equity market ULIP debt mutual fund
best place is a bank or………….
What is the advantage of converting physical gold
6 Liquidity More gold in value purity
assets to gold ETFs

An investoe holds a wide range of shares. If the

reserve bank of India anounces a series significant
6 Become volatile decrease increase
interest rate increases, the prices of these shares
are most likely to

Renuka earns Rs 80,000/- month as salary, she has

taken a home loan of Rs 500,000/- annum, what
6 Rs 32000 per month Rs 24000 per month Rs 40,000 per month
will be the maximum amount of EMI that can be
charged by the bank to recover the loan amount?

Omkar Started a pension policy with provider

A but ended up in taking the annuity payment
7 Commutation Option Differed Annuity Option Guaranteed period option
from provider B.The result directly reflect the
which feature available with this policy

fortnightly,quarterly,monthly,yearl fortnightly,monthly ,half yearly,

7 what frequencies can one take annuity monthly,quarterly,half yearly,
y yearly
All ULIP pension plans have to give how
7 6% 9% 5%
much percentage as Guaranteed returns
Yash wants to take open market option in
7 To save tax To switch the underlying fund For improved annuity rate
Pension plan. What is the benefit?
Commutation option allows the annuity policy
7 25% 50% 40%
holder to with draw
commutation is a feature of which type of
7 annuity joint life policy pure endowement policy
policy
Waiting period in a health insurance policy is
7 Age discrepancy Pre existing illness risk
to address
Under a health insurance policy,if a policy
7 holder needs to avail his no claim bonus, how cash encashment discount in the next premium increase in the cover level
can that be done

Danny is married and has two children aged 6

& 10 , His parents are aged 68 &70 . Who all
7 Only Danny Danny & his Wife Danny , His wife ,His children
can be included in Family floater option of a
health plan
Implication of Daily Hospitalisation benefit
7 Fixed amt daily SA Amt for particular diseases daily
paln
 Rupkumar wants to take Commutation
7 option. What is the maximum amount he can one sixth one third 25%
withdraw
Critical illness rider was taken and the rider
7 benefit has been claimed , the rider benefit Reduced the the base SA terminated continues as it is
now gets

A person has taken a term insurance of 4 Lac.

7 What is the maximum Critical Illness Rider he 1 Lac 2 Lac 3 Lac
can take

Mr. Sharma buy term insurance policy along

with Accident and Disability benefits rider cost
7 20% 30% 40%
restricted upto the base premium of the
policy?

Mr.Ramesh invested Rs:50000 in pension

Pension plan is not eligible for
7 policy, what is the percentage he can avail as 33% 100%
tax exemption
exemption in Income tax.
In a Guaranteed annuity option of 5 years , till 5 years and continue till
7 entire life term annuity only for 5 years
the policy holder will get annuity till annuitant lives

7 The Premium on all riders put together should 10% of the premium on the 20% of the premium on the base 30% of the premium on the base
not exceed base policy policy policy
allows policyholders to
7 How riders will help the customer in life customize their insurance
Rider is like a clause Operative clause
insurance cover with additional
benefits

The daily amount paid is

The insurance company will pay
7 fixed and will never be more The insurance company may pay
In Daily hospitalization cash benefit scheme an additional amount on a daily for doctor consultation fees
or less than the cost of
basis if the insured is admitted to incurred prior to hospitalization
actual treatment
the Intensive Care Unit (ICU)

7 A lump sum withdrawal allowed as 1/3rd of the accumulation

commutation in pension plans is fund 1/4th of the accumulation fund 1/2nd of the accumulation fun

Customer has opted for a 5 yrs guaranteed

7 annuity option. What will happen to annuity, if annuity will be continued for next
paid up to 75 Yrs till he die
the customer survives for 5 years after the 5 Years
end of guarantee period

In term insurance if Critical illness rider claim CI benefit reduced from existing
7 happens then what will happen to existing CI benefit will cease CI benefit continues
sum assured
policy

7
Family floater health Insurance plan covers All members of a Family Husband and Wife only Parents only
How the Daily hospitalization cash benefit will A fixed amount on a daily basis is
provide benefits to policyholder who is Entire charges less bed charges paid irrespective of the actual cost
7 hospitalized Entire charges are refunded will be paid of treatment
 If there is no claim in a year than what will be Increase in Sum Assured next
7 the benefit to the customer as NO CLAIM Discount in next year year
BONUS premium Loans facility
The premium for accidental death benefit rider
15% of base policy premium 25% of base policy premium 30% of base policy premium
7 must not exceed
Specified amount multiplied by
Under the daily hospitalisation benefit, what is
7 10% of the sum assured the number of days the 20 % of basic SA
the payout made
policyholder is hospitalized

Mr. Denny is married and has 2 children and

7 his parents are alive. He has taken a family Denny Denny and his wife
floater plan. Under the plan who all will be
covered Denny, his wife and children

7 In case of a term plan the maximum premium

of the accidental rider can be. 100% of basic premium. 50% of basic premium. 30% of basic premium.

Vikas and Santosh applied for a health plan to XYZ Santosh has taken anoher
life insurance company. Vikas is asked to undergo a
7 policy from XYZ life insurance Vikas is older that Santosh Santosh is earning more than Vikas
medical check up but Santosh is not asked to do company.
so. What will be most possible reason?

If the customer has invested money in a pension

7 plan from company A and buys an annuity from Life long annuity Open market Reinsuring Annuity
company B, What is the nature of transaction?

Open market option under Annuity policy would

7 Ensure better annuity rate Increase in the range Increase in return
extend which of the following benefit.

Why do Self Employed Individual have the Public sector employees enjoy
Public Sectors do not get Self Employed people do not have
8 need to buy Medical Insurance rather than Medical Insurance Covers
Sick often Sick Leave
People working in public Sectors related to Job

Mohit has two kinds, one of 6 years and other

8 years.He is the earning member and not
8 Health policy for child Health policy for wife Life insurance policy for wife
having life cover. Before advising him to take
health policy, what he should be advised.

Manoj a 26 year old is having 7 years old son.

8 What will happen to his monthly disposable Marginally decrease Singnifcantly increase less than after 15 years
income after 15 years of job
Samir is married and he has only one
8 partner,with dependant parents and no income protection inheritance planning investment efficiency
child,which should be his priority

The sole focus during a client’s fact-find

session was healthcare requirements and
8 Young married couple Young married with children. Pre-retirement.
estate planning. Which main life stage is he
most likely to fall into?
 A Couple has 7 years old son, What solution
8 Retirement health care child education
would they be looking for

An Insurance agent suggests estate planning

8 as a top priority for the customer, what stage young married young married with children retirement
of life cycle the customer is in

In which of the recognized life stages an

8 individual does not required any protection Childhood Young Married Pre Retirement
cover

8 What is the main objective of taking the life

insurance policy Tax benefit Savings Investment
Life insurance is the most important for
8 which age group Young Pre- retirement Retirement
Ashish is looking at different plans of
8 insurance for protection at the lowest
premium. Which is the best plan for him? Term plan Endowment plan Whole life plan

In the context of financial planning, how is the Real needs are actual needs and Real needs are identified by the
8 difference between real needs and percieved percieved needs are based on a insurance agent and percieved needs
needs best described? Real needs are financial client 's thoughts and desires. are identified by the client.
and percieved needs are
non-financial needs.
If a person is concentrating more on
8 health plan and retirement plan then at Young married Young Unmarried Young married with Kids
which stage of life is he in.

Manish and manisha is a married couple

with one child.They want to plan for savings,
8 child education/marriage and their marriage Savings Education
retirement and protectection of income.
What should be their lowest priority?

Mrs Sheela received some amount out of her

8 husband's death. In this situation what will be her Saving Insurance Investment management
prime focus?

Akash is an unmarried person and employed with

company ABC and drawing a handsome salary. He
8 Money back policy Term plan Endowment plan
has no liabilities. What kind of plan can be
suggested to him?

The commission payable in a ULIP plan to the

9 Illustration benefit Premium receipt Product Brouchure
Advisors is mention in...
Benefit Illustration given to a customer
quantifies an amount by which investment
9 Charges Interest Inflation
return is reduced. This reduction reflect the
impact of
9 objective of fact finding client need analysis Product Pitching for completing ACR
9 Fact finding sheet allows the agent to Analyze customer needs Select the product Proof
Create an audit trail for future
9 Fact Find Process helps to Ensure a sale is achieved Identify Client need
complaints

Mr A has been approached by the Agent and

9 Low Risk Taking High Risk Taking Moderate Risk Taking
on fact finding the score is 3 , this represents

During Fact Finding, what will be the next step

9 Quantify clien's need prioritise client's need recommending product
after Identifying client's need

During fact finding process the need analysed

where income replacement and children's
9 education . But the customer insist on only a child
plan for the time being and asked the agent to give
him a child plan. The agent should……..
Do the fact finding exercise Give a child plan and rerevisit the
Insist the client to take a term plan
again client on a later date

According to IRDA agent's code of conduct what is

9 the best method of showing the amount of signed copy of sales illustration Brochure sales communication
commission earned by the advisor

What should an agent do in order to understand

9 the mental state of client in respect to his Fact Finding Consulting the client's parents Reviewing his present investments
investments in saving products

a policy holder takes two insurance policy and

the premium amount is identical and he gets
10 one policy has more SA ONE POLICY has more term one policy is a single premium
lesser commission in one of contract the
reason is likely to be

An agent reveals his commission received

from insurance sales to X&Y .Both plans are X has brought other limited Y has brought a single premium
10 X is married
of same duration . Why is commission of X far premium product product
higher that that of Y
Customer asks the agent to disclose the
10 disclose on demand Not disclose Should call up the Insurer
commission . The agent should
The best way to prove that customer of a
Ask the insurer to give a From signed copy of benefit
10 ULIP policy is given awareness about the From the fact details
policy endorsement letter illustration
commission paid to the agent is
Agents earn Lower Policyholders suffer due to
10 Churning is bad , based on which aspect Policyholder gets more benefits
Commission on churning surrender charges and benefits
what over riding criteria an insurance agent
10 risk suitability Flexibility
consider while proposing a solution
10 Sales Target is reduced . Churning will Increase Decrease Will not affect
Higher persistency to the insurer ensures
10 More productivity Higher attrition Higher Profits
what ?
 Persitency =has increased from 82 % in
10 more lapsation more attrition less lapsation
previous year to 86 % this year . That means

What is the maximum Time in which The

10 insurer should settle a claim when all 3 days 15 days 30 days
documents are submitted

If the agent recommends the client to

10 terminate an endowment plan and take a Switching Doing a financial planning Churning
whole life in order to earn higher commission
its termed as
If the client does not wish to proceed with the Insist on taking the product Should ask for the reason for not Should ask for a future date from the
10 recommendations right at the moment, the agent right away going with the recommendation client
should

After doing the need analysis of the client the

agent advised the client to opt for TROP product, Anquire about the refusal from
10 Suggest an alternative plan Pass on the superior
but the client refused according to ethicl business the client
practices what will the agent do?

Frequent switching is not advisable in ULIP plan

10 Investment Risk Risk of Death Uncertainty of return
because it increases

An insurance agent sold two policies to two

different persons having the same policy term. He One has chosen Single Premium policy
Risk profile of both the policy Age of both the candidate are
10 declares the commission to each of them. The and has chosen regular premium
holder are different different
commission of one of the policy is more than the policy
other. What should be reasons for this difference?

A missing person is considered to be dead

11 5years 8years 12 years
after
 Correct
Ans Option 4
Ans / option
Linking third party administrators 3

26% 4

RBI 1

1 lac 3

Non Government Organisation 2

Actuaries 2

2
Insurance Institute of India

broker 4

100000 3

Is occupational hazard 1

Non Financial Risk 2

Contribution of insurance
2
company

Financial hazard 2

Perils are factors which could

influence an insured event occuring 2
and hazards are the actual events
which trigger a payout.

Randomness 1

As per company policy 1

Smoking is a moral hazard whereas 2
ling cancer is peril

Harish suffers financial loss

4
incase of death of Ramesh

21 2

beginning of renewal 1

Absolute & Conditional 4

Financial assessment 2

Agent accepts money 2

Endorsement 1

Issuing of FPR 4

Left thumb Impressionof Asvath

along with a declaration of his 4
friend

Baptism Certificate is Non

Standard & Ration card is 3
Standard Age Proof

RPR 2

schedule 3

Trust 1

Sum Assured less the latest

4
premium

Surrender 2

when Nominee is Minor 4

many 4
 No such conditions 4

Its a Ulip Plan 3

Savings element. 4

Has Financial Problems 4

If the insured person changes his 2
job

3
Acceptance

1
Any time during the contract

1
30 days of receiving the proposal

Inception of the policy 2

Endorsements 3

Unlimited 4

4
It can be any number

not acceptable 2

3
Ashu needs to be medically
examined.

3
Major life contract

Inflation

3
Paid up value
 219333 2

None of above 1

premium cheque with arrear 1

Inflation 1

underwriter 1

Estimated amount at retirement 2

8500 3

To help the underwriter to asses

4
the Risk

20th Year 4

Moral Hazard 4

Pure risk 1

Actuary 3

Accidental death 1

Time barred 1

Agent 4
 medical report 2

Physical Hazard 4

Risk premium minus interest

3
earning

7.50%

net addition 1

45 days

Accounts

3
Physical peril

2
Endorsement

Compounding 3

Peril 1

Gross pemium increases 3

Pure risk 3
 Non Insurable Hazard 3

Rs 9240 2

ULIP 3

Surrender 3

Term Insurance 3

Term Insurance 3

30% 1

300000 3

95% on Life Insurance Premium

1
& 5% on PPF

Tax fully exempted 4

Health 3

riders 1

Postponement of investment
2
decision

society members 1
 1.50 lacs 2

NA 1

3
100000

6 lacs

Wholelife plan.

3
Affluent class

pension plan 3

Policy was lapsed on the time of 2

maturity.

Gold 1

same 2

2 Year 1

32000 4
Change as per market fluctuation 3

10 gms 3

tenure 3

Mutual Fund Office 2

10gms/20gms 2

Tenure 1

Both do not give tax benefits 1

200000 3

Insurance against Uncertainties 4

Savings income 4

Term Deposits 3

2
Annually

Principle with persistency bonus

Fixed Deposits will be more
2
attractive

Liquidity 4
 Lock in periods 1

FD 3

More conversion value 1

No effect 2

Rs 48,000 per month 1

Open Market option 4

Yearly Only 1

10% 3

To continue life cover 3

33% 4

policy of another person 1

premium 2

certain policy exclusions 2

Danny's family and his parents 4

On the expenses incurred daily

1
due to critical illness
 15% 2

New critical Illness Rider has to

2
be added to base Policy

4 Lac 4

50% 2

20% 1

premium payment term 2

40% of the premium on the base

3
policy

Rider is like Preamble 1

Only surgery expenses are

included in daily hospitalization 2
benefi

Full withdrawal is allowed 1

not remembered 3

No change in policy 1

1
Children Only

Only Hospital bill will be paid 3

 1
No benefit

40% of base policy premium 3

30 % of SA 2

Denny, his wife, his children and his

parents 4

3
35% of basic premium.

Vikas is working in an MNC 2

Deffered annuity 2

Switch of funds 2

Loans are available faster for

2
Public sector EMPLOYEES

Life Insurance policy for himself 4

will remain same 2

long term savings 1

Retirement 4
 life cover 3

Pre – Retirement 3

Retirement 1

4
Protection

1
children

1
Money back plan.

Real needs are needs which satisfy

an objective and percieved needs 2
are needs which do not satisfy an
objective.

Pre-Retirement 4

Protection 1

Planning for Pension 3

ULIP 4

Proposal Form 1

Taxation 1
 Finding out Moral hazards 1
Reference 1
Provide regulatory body about
2
agents data base

Zero risk Taking 3

Fill up the proposal form 1

give the lead to another agent 3

Press releases 1

Consulting the family of the client 1

One of the policy has higher

3
Premium

Y is Single 2

Should avoid the topic 1

From ticked column of proposal

3
form

Insurance companies get good

3
branding

Cost 2

Partially 2

Higher S.A 3
 No profits 3

10 days 3

in favour of client 3

Should review once again 2

Pass on the other agent 1

Chances of lapse 1

Both have chosen different kind of 4

policies

7years 4