S.No
Question
Ans Option 1
Ans Option 2
Ans Option 3
Ans Option 4
Correct Ans / option
1
Sanjeev is an insurance expert who has rich experience in determining premium levels for product, what is his profile like
an actuary
loss adjuster
risk manager
underwriter
1
2
The Non Government organizations(NGO) helps the insurance industry immensely in
Promotional activities
Drafting new regulations
Linking buyers and sellers
Linking third party administrators
3
3
Investment by foreign direct investors in to Insurance co's is restricted to
12%
25%
40%
26%
4
4
Which market does the Micro Insurance Concentrate on ?
People with large families
People with Low Income
Government Employees
people living in Metro cities
2
5
What facility do the insurer use to cover Risk beyond their Limits ?
Re Insurance
Banca assurance
NGO
RBI
1
6
what is the max level under which micro insurance can be done
5000
25000
50000
1 lac
3
7
Who is the customer of a Re insurer
High Networth Individual
Insurance Companies
Licenced Insurance Agents
Non Government Organisation
2
8
Insurance company transfers the insurance which cannot bear by them to
Bancassurance
Reinsurance
TPAs
Actuaries
2
9
a policy holder takes two insurance policy and the premium amount is identical and he gets lesser commission in one of contract the reason is likely to be
one policy has more SA
ONE POLICY has more term
one policy is a single premium
One of the policy has higher Premium
3
10
An agent reveals his commission received from insurance sales to X&Y .Both plans are of same duration . Why is commission of X far higher that that of Y
X has brought other limited premium product
Y has brought a single premium product
X is married
Y is Single
2
11
Customer asks the agent to disclose the commission . The agent should
disclose on demand
Not disclose
Should call up the Insurer
Should avoid the topic
1
12
The best way to prove that customer of a ULIP policy is given awareness about the commission paid to the agent is
Ask the insurer to give a policy endorsement letter
From the fact details
From signed copy of benefit From ticked column illustration of proposal form
3
13
Churning is bad , based on which aspect
Agents earn Lower Commission on churning
Policyholder gets more benefits
Policyholders suffer due to Insurance surrender charges and companies get good benefits branding
3
14
what over riding criteria an insurance agent consider while proposing a solution
risk
suitability
Flexibility
Cost
2
15
Sales Target is reduced . Churning will
Increase
Decrease
Will not affect
Partially
2
16
Higher persistency to the insurer ensures what ?
More productivity
Higher attrition
Higher Profits
Higher S.A
3
17
Persitency =has increased from 82 % in previous year to 86 % this year . That means
more lapsation
more attrition
less lapsation
No profits
3
18
What is the maximum Time in which The insurer should settle a claim when all documents are submitted
3 days
15 days
30 days
10 days
3
19
A missing person is considered to be dead after
5years
8years
12 years
7years
4
20
The delay in settling claim by any insurance co, as per IRDA norms has to pay....% if the present bank interest rate is 5.2%
7%
9%
7.20%
8%
3
21
A claim was submitted & in how many days company should ask for additional documents if required
15 days
10days
20 days
30 days
1
22
Vivek takes insurance policy and dies after 8 months . If the claim needs to be excluded basis the exclusion cause what could be the cause
suicide
murder
Death was due to Accident
Body not found
1
23
An advisor while explaining the policy and to sell he accepts to give a part of his Agents commission, what is th limits
10%
20%
He cannot offer any commission
He can offer up to 50%
3
24
Consumer Forum at district level will hear complaints up to
20L
40L
1Cr
10L
1
25
How much is the rebate allowed by IRDA to client
Nil
5%
10%
35%
1
26
the controller of insurance in india is
IRDA
RBI
SEBI
Insurance ombusdmen
1
27
A insurer advertises through daily news paper . What type of marketing is
cross selling
direct selling
Solicitation of Policy
Brand building
3
28
Investment by NRI(Non Resident Indian) will be
No risk
Low risk
Medium risk
High risk
4
29
MWP- If the policy is endorsed under MWP - then the beneficiaries are wife and ?
parents
ex wife
children
mother
3
30
Mr.Sunil is doing premium calculation for his company, as per which authority is his profession related to
Council of Actuaries
Insurance council of India
Insurance institiute of India
IRDA
1
31
basic qualifications of agent
sound mind & graduate
sound mind & good income level
Age and income level
His contacts in the market to solicit Insurance
1
32
Which Institution was Constituted by Insurance Act 1938
Insurance Institute of India
Life Insurance Council
Insurance Broker Association
General Insurance Council
2
33
What is the role of National Insurance Academy?
To regulate
To advise Government
To undertake training activities
To Advertise globally on Indian Insurance
3
34
According to IRDA act 1999, central governments involve in insurance industry over
Policy matters
complex technical issues
Promotional activities
Licensing of Insurance companies
3
35
Complaint council bodies other than IRDA grievance readdress forum & COPA
Ombudsman
Insurance Institute of India
Insurance Association
FERA
1
36
What are the ways by which a policy holder can make complaints
email
Toll free No.
Newpaper
Email or Toll free Number
4
37
what are the ways in which IRDA can be contacted . One is thru toll free number and other is
email
Insurance ombudsmen
visiting regional office
Through Agents
1
38
what is the maximum level of complaint that can be considered and taken action by ombudsmen
20 lac
25 lac
30 lac
50 lac
1
39
What is the period of award passed to the customer decided by ombudsman?
2months
3 months
5 months
6 months
2
40
Raju is a certified license holder under what circumstances he needs to hold his certified license with him that is issued by irda
under all circumstances
when he sells term insurance
when he represents himself as another insurer
when he sells pension policies
1
41
A policy has been rejected by the company under direct intimation to the customer and copy to the Agent, what is the next action of the Agent
he has to inform the customer that the co has broken relationship with the customer
he plans to change the plan
42
lung cancer and smoking .
lung cancer is peril and smoking is moral hazard
smoking is peril and lung cancer is hazard
Death is certain
Is occupational hazard
1
43
The type of risk that can be insured against is
Speculative Risk
Pure Risk
Pure & Speculative risk
Non Financial Risk
2
44
Harish takes a life insurance policy for Ramesh. Which of the following statement best describes the principle of Insurable Interest.
Ramesh declares all his liabilities
Ramesh is elder than Harish
Harish suffers Ramesh owes money form financial loss incase Harish of death of Ramesh
4
45
what is the min age to enter into the contract of insurance
16
18
20
21
2
46
In a whole life plan - The policyholider's responsibility to give disclosure
at the beginning of the contract
through out the contract
Revival stage
beginning of renewal
1
47
Types of assignment
Absolute
Term assignment
Conditional
Absolute & Conditional
4
He has to explain the He takes up with the reasons for rejection to the higher authorities customer
3
48
why does an insurer insist on age proof document . To assess
SA
Risk assessment
Identity verification
Financial assessment
2
49
Mr A submitted the proposal form . When will the risk begins for the company?
Submission of proposal form
FPR issued
Policy issued
Agent accepts money
2
50
The obligation of the insurer for the whole life policy is mentioned in
Operative Clause
Preamble
Proviso
Endorsement
1
51
Asvath is illiterate. He wants to take policy and surya is a friend of his help him is answering questions and answers and also fills proposal . In addition to this requirement is
Asvath photograph
asvath thump impression Only
policy document need to be registered
Left thumb Impressionof Asvath along with a declaration of his friend
4
52
For Logging a Policy , a person gives Baptism CERTIFICATE & Ration Card . What is this ?
Both are Standard Age Proof
Both are Non standard Age Proof
Baptism Certificate is Standard & Ration Card is Non Standard Age Proof
Baptism Certificate is Non Standard & Ration card is Standard Age Proof
3
53
To be a valid contract ,the declaration is necessary in which document
Policy Document
proposal form
FPR
RPR
2
54
Mr. ABC buying Term insurance policy, insurer should mention Ombudsman address in which part of policy document?
operative clause
Preamble
Information statement
schedule
3
55
Zainab takes insurance in the life of Jasmeet. Zainab will be called as
Proposer
Nominee
Appointee
Trust
1
56
Mr.Suresh dies one day before the grace period without paying the premium, what is th claim payable
No claims payable
All premiums paid
Sum assured
Sum Assured less the latest premium
4
57
Loan is available for a policy in which there is a feature of
Fund switch
Savings Element
Partial withdrawal
Surrender
2
58
Appointee's role
Signature on the proposal
Medical exams
insurable interest
when Nominee is Minor
4
59
how many nominees can be attached to a term insurance policy
one
two
three
many
4
60
if a policy has two nominee mentioned what should be the Min allocation
Each nominee to get Min 10%
Each Nominee to get Min 25%
the first nominee should have more than second
No such conditions
4
61
a Policy holder takes a insurance contract for 30 years and the SA reduces after 25 years what could be the likely reason
No bonus accumulated
Age proof was substantially wrong
Policy has become paid up
Its a Ulip Plan
3
62
A life insurance policy can only be made paid up if what particular policy feature exists?
Indexing contribution.
Nomination facility.
Rider benefits.
Savings element.
4
63
Reasons for surrender of the policy
SA
advisor induced
no commission
Has Financial Problems
4
64
While calculating Human life value (HLV) two components need to be kept in mind , the one is take home salary and other is
Bank Fixed deposit rate
discount rate
Estimated life expectancy
Estimated amount at retirement
1
65
Annual premium of insurance product is Rs. 32,000, 4% loading on Quarterly mode of payment What is the quarterly premium?
7680
8000
8320
8500
3
66
why ACR
To calculate Premium
67
In a 20 year with profit policy,persist ency Bonus is paid at the end of
1st Year
10th Year
15th Year
20th Year
4
68
While Underwriting Mr X proposal , its found that there has been CRIMINAL case against him in Fraudulent act .What type of Risk this will be categorized Into ?
Fraudulent Hazard
Occupational Hazard
Physical Hazard
Moral Hazard
4
69
Mr A wants insurance cover . But he is drinks alcohol frequently . What kind of hazard you may categorize?
Physical hazard
Moral Hazard
financial risk
Pure risk
1
70
Who IS the primary underwriter of the customer?
Underwriter
Insuranc eCo
Agent
Actuary
3
71
Claim was settled however full Sum assured not paid though the policy was in force due to
Lien
Bonus
Surrender
Accidental death
1
To help the To Calculate the commission To verify the Plan proposed underwriter to asses due for the agent the Risk
4
72
Lien can be considered an alternative of which of the following
Clause
Rejection
Acceptance
Time barred
1
73
what is the special report that is asked by the underwriter from the officer of the insurer
HLV report
Client confidentiality report
moral hazard report
medical report
3
74
As per the norms of risk assessment by U/W both the parents of a policy holder died in their early 30s due to Heart disease, what is the risk assessed
Moral Hazard
Medical Hazard
Occupational Hazard
Physical Hazard
4
75
Hari wants a constant life cover till his 31st birthday. But he cant afford to pay high premiums. The best suited products for him would be
Pure Endowment
Anticipated endowment
term plan
ULIP
3
76
At the time of maturity , quarter of the SA is paid though the policy was in force
Endowment
Lien
Money back
Surrender
3
77
Weekly premiums are generally collected for which type/range of palns
Banca assurance
Health plans
Micro Insurance
Term Insurance
3
78
Mr A is planning to invest and his needs are :1 Protection for is Income , during his absence 2.children education
Children Plan
Retirement Plan
Ulip Plan
Term Insurance
3
79
What tax rate,if any,will be applicable to a life insurance policy holder for the maturity proceeds of a Rs 5000 life insurance policy
Nil
10%
20%
30%
1
80
A policy holder can pay the premium of Rs 5,00,000 and what could be the max tax efficiency he is entitles to
500000
50000
100000
300000
3
81
Ram has Invested Rs 5000 in PPF & Rs 1 Lakh in Life insurance premium . In which he will get maximum Tax Benefit
Life Insurance Premium
PPF
50% on each
95% on Life Insurance Premium & 5% on PPF
1
82
Mr.Sumesh takes a policy and pays premium of 20000 with a sum assured of 300000, what will be the tax implication on his maturity amount
Fully taxable
10%
20%
Tax fully exempted
4
83
without submitting any form of claim,a life insurance policy holder received payments of survival then what type of policy he is holding
ULIP
Term
Money Back
Health
3
84
what is the special feature of ulip that ensures customer risk profile for long time insurance policies
fund switching
partial with drawl
premium holiday
riders
1
85
The best way to overcome the problem of investment decision depends mainly on peer influence is
By Canvassing wide peer group
Seeking professional advise
Go for a low investment tranchee
Postponement of investment decision
2
86
A person who has a temporary job Loss , where should he look for Investing other than FD
Debt Funds of MF
Govt Securities
Equities
Gold
1
87
RBI increased interest rates 2 times then the stock prices
increase
decrease
volatile
same
2
88
A person Wants to invest in a FD for Tax benefit , How many years he has to take the term of the FD ?
5 year
4 year
3 Year
2 Year
1
89
aditya wants to take home loan and his monthly take home is 80,000 what as a best practice should be the maximum EMI
20000
24000
28000
32000
4
90
Ramesh has invested in Post office Monthly Income Scheme. The interest rate was set at 6%. What will be the effect of rate in going years.
Increase gradually
Decrease gradually
Remain Constant
Change as per market fluctuation
3
91
A person is holding 100 GOLD ETF certificates . How many grams of GOLD does he Have ?
10- 20 gms
20- 50 gms
50-100 gms
10 gms
3
92
A customer while investing in to Recurring deposit or Cumulative deposit what are the key factors which will matter
Taxation
frequency of payment
interest rates
tenure
3
93
A person planning to invest in Kisan Vikas Patra will go to
Insurance Branch
Post Office
Internet
Mutual Fund Office
2
94
If a person chooses Cumulative deposit than Recurring deposit ,difference will be in
frequency of interest calculation
Tax
Interest tax
Tenure
1
95
A policy holder pays identical premium amount for ULIP and EPF where he gets max tax efficiency
in ULIP policy
in EPF
same efficiency for both
Both do not give tax benefits
1
96
Investing in ULIP plans exempts a maximum up to what limit for Income Tax
50000
75000
100000
200000
3
97
Suresh wants to transfer his physical gold to gold exchange traded fund,in relation to access,this change will
not hedge against Inflation
Decrease his liquidity
Reduce his encasement for next six months
Insurance against Uncertainties
4
98
An Investor has invested in Debt mutual fund,he is ideally looking for
Equity return
Fixed Income
Stable income
Savings income
4
99
Omkar Started a pension policy with provider A but ended up in taking the annuity payment from provider B.The result directly reflect the which feature available with this policy
Commutation Option
Differed Annuity Option
Guaranteed period option
Open Market option
4
100
what frequencies can one take annuity
monthly,quarterly,half yearly,
fortnightly,quarterly,monthly, yearly
fortnightly,monthly ,half yearly, yearly
Yearly Only
1
101
All ULIP pension plans have to give how much percentage as Guaranteed returns
6%
9%
4.50%
10%
3
102
Yash wants to take open market option in Pension plan. What is the benefit?
To save tax
To switch the underlying fund
For improved annuity rate
To continue life cover
3
103
Commutation option allows the annuity policy holder to with draw
25%
50%
40%
33%
4
104
commutation is a feature of which type of policy
annuity
joint life policy
pure endowement policy
policy of another person
1
105
Waiting period in a health insurance policy is to address
Age discrepancy
Pre existing illness
risk
premium
2
106
Under a health insurance policy,if a policy holder needs to avail his no claim bonus, how can that be done
cash encashment
discount in the next premium
increase in the cover level
certain policy exclusions
2
107
Danny is married and has two children aged 6 & 10 , His parents are aged 68 &70 . Who all can be included in Family floater option of a health plan
Only Danny
Danny & his Wife
Danny , His wife ,His children
Danny's family and his parents
4
On the expenses Amt for particular diseases incurred daily due to daily critical illness
108
Implication of Daily Hospitalisation benefit paln
Fixed amt daily
SA
1
109
Rupkumar wants to take Commutation option. What is the maximum amount he can withdraw
one sixth
one third
25%
15%
2
110
Critical illness rider was taken and the rider benefit has been claimed , the rider benefit now gets
Reduced the the base SA
terminated
continues as it is
New critical Illness Rider has to be added to base Policy
2
111
A person has taken a term insurance of 4 Lac. What is the maximum Critical Illness Rider he can take
1 Lac
2 Lac
3 Lac
4 Lac
4
112
Mr. Sharma buy term insurance policy along with Accident and Disability benefits rider cost restricted upto the base premium of the policy?
20%
30%
40%
50%
2
113
Mr.Ramesh invested Rs:50000 in pension policy, what is the percentage he can avail as exemption in Income tax.
33%
Pension plan is not eligible for tax exemption
100%
20%
1
114
In a Guaranteed annuity option of 5 years , the policy holder will get annuity till
entire life term
till 5 years and continue till annuitant lives
annuity only for 5 years
premium payment term
2
115
Why do Self Employed Individual have the need to buy Medical Insurance rather than People working in public Sectors
Public Sectors do not get Sick often
Public sector employees enjoy Medical Insurance Covers related to Job
Self Employed people do not have Sick Leave
Loans are available faster for Public sector EMPLOYEES
2
116
Mohit has two kinds, one of 6 years and other 8 years.He is the earning member and not having life cover. Before advising him to take health policy, what he should be advised.
Health policy for child
Health policy for wife
Life insurance policy for wife
Life Insurance policy for himself
4
117
Manoj a 26 year old is having 7 years old son. What will happen to his monthly disposable income after 15 years of job
Marginally decrease
Singnifcantly increase
less than after 15 years
will remain same
2
118
Samir is married and he has only one partner,with dependant parents and no child,which should be his priority
income protection
inheritance planning
investment efficiency
long term savings
1
119
The sole focus during a client‟s fact-find session was healthcare requirements and estate planning. Which main life stage is he most likely to fall into?
Young married couple
Young married with children.
Pre-retirement.
Retirement
4
120
A Couple has 7 years old son, What solution would they be looking for
Retirement
health care
child education
life cover
3
121
In which of the recognized life stages an individual does not required any protection cover
Childhood
Young Married
Pre Retirement
Retirement
1
122
Benefit Illustration given to a customer quantifies an amount by which investment return is reduced. This reduction reflect the impact of
Charges
Interest
Inflation
Taxation
1
123
objective of fact finding
client need analysis
Product Pitching
for completing ACR
Finding out Moral hazards
1
124
Fact finding sheet allows the agent to
Analyze customer needs
Select the product
Proof
Reference
1
125
Mr A has been approached by the Agent and on fact finding the score is 3 , this represents
Low Risk Taking
High Risk Taking
Moderate Risk Taking
Zero risk Taking
3
Premium plus interest earning
Risk premium plus interest earning
Premium minus interest earning
Risk premium minus interest earning
3
The premium collected & deposited in a pool
All similar risks are pooled together
Premium is pool to make claims
Contribution of insurance company
2
Every time premium is paid
If the policy has lapsed and it has to be revived
If the insured person falls sick and is admitted to hospital
If the insured person changes his job
2
Consideration
Legality of an object
Consensus ad idem
Acceptance
3
At inception of policy
Not needed
At the time of claim
Any time during the contract
1
Traditional deposits
Recurring deposits
Cumulative deposits
Term Deposits
3
126 Net premium is equal to
127 Pooling of risk in insurance means
128 Principle of utmost good faith will operate in existing policy
129 Both the parties to a contract must agree and understand the same thing and in the same sense which is called
130 In case of life insurance, Insurable interest must exist
131 With this type of deposit the bank pays the principal and the total interest at the end of the term
10% of the premium on the base policy
20% of the premium on the base policy
How riders will help the customer in life insurance
allows policyholders to customize their insurance cover with additional benefits
Rider is like a clause
In Daily hospitalization cash benefit scheme
The daily amount paid is fixed and will never be more or less than the cost of actual treatment
132
30% of the premium on the 40% of the premium base policy on the base policy
3
The Premium on all riders put together should not exceed
133
134
135
Rider is like Preamble
The insurance company may The insurance company will Only surgery pay an additional amount on pay for doctor consultation expenses are a daily basis if the insured is fees incurred prior to included in daily admitted to the Intensive hospitalization hospitalization benefi Care Unit (ICU)
1
1
CI benefit will cease
CI benefit reduced from existing sum assured
CI benefit continues
No change in policy
1
Tax benefit
Savings
Investment
Protection
4
employee- employer
Husband-wife
family members
society members
1
IRDA
Consumer Forum
NA
NA
2
Young
Pre- retirement
Retirement
children
1
2.50%
3.00%
5.00%
7.50%
3
1 lac
3 lacs
2 lacs
1.50 lacs
2
15 days of receiving the proposal
20 days of receiving the proposal
25 days of receiving the proposal
30 days of receiving the proposal
1
All members of a Family
Husband and Wife only
Parents only
Children Only
1
In term insurance if Critical illness rider claim happens then what will happen to existing policy
136
Operative clause
What is the main objective of taking the life insurance policy
137 Group Insurance can be taken in following relationship
138 Where one can approach in case of dispute
139 Life insurance is the most important for which age group
140 Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply
141
Kamal is willing to pay 60000/- per annum for his ULIP policy. What should be the SA in case he wants to avail the tax benefits
142 The regulations issued by the IRDA, require that the decision on the proposal must be conveyed to the proposer within
143 Family floater health Insurance plan covers
144
According to IRDA guidelines, how long does an insurance company have to complete its investigation of a claim
145
30 days
90 days
Entire charges are refunded
Entire charges less bed charges will be paid
IRDA
SEBI
RBI
SBI
3
First five years of policy
First Two years of policy
Claim
Inception of the policy
2
Up to Rs 50000
Up to 99990
Up to 100000
Without any limit
1
Monthly
Quarterly
Half Yearly
Annually
2
15% of base policy premium
25% of base policy premium
30% of base policy premium
40% of base policy premium
3
20,000
50,000
Up to the sum assured taken in the plan
Unlimited
4
2013
2015
2017
2020
2
10% of the sum assured
Specified amount multiplied by the number of days the policyholder is hospitalized
NA
NA
2
Switching
Doing a financial planning
Churning
NA
3
Discounted Value
Principle amount
Discounted Value with persistency bonus
Principle with persistency bonus
1
How the Daily hospitalization cash benefit will provide benefits to policyholder who is hospitalized
146
120 days
180 days
A fixed amount on a daily Only Hospital bill will basis is paid irrespective of be paid the actual cost of treatment
4
3
Who is a regulator, supervisor and monetary authority of the financial system in India
147 Indisputability clause can be enforced by the insurance company during the
148
To ensure that the premiums are paid out of a legitimate source of funds cash is accepted
149 In Cumulative bank deposit the interest that in normally compounded on what basis
150
The premium for accidental death benefit rider must not exceed
151 What amount of insurable interest does an individual have in his own life
152 If the license of an agent has been disqualified by a designated authority in 2010 then the person can apply for a license in which year
153
Under the hospital care rider what is the payout made
154 If the agent recommends the client to terminate an endowment plan and take a whole life in order to earn higher commission its termed as
155 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?
156
Loading
Investment
Frequency
NA
1
Joint life policy
Has physical ailment
NA
NA
1
Increase more business
Increase in the agents earning
Will improve reputation
Will have impact in his commission
4
Will be considered as standard age proof
Will be considered as non standard age proof
Will not be accepted
NA
2
10000
25000
50000
100000
3
Actuary
Underwriter
Claim Department
Accounts
1
Term plan
Endowment plan
Whole life plan
Money back plan.
1
IRDA
Tariff Advisory Committee
National Insurance Academy
LIC
2
10,00,000.
20,00,000.
50,00,000
1,00,00,000
2
Insurance contract.
Indemnity contract.
Value contract.
Major life contract
3
Voidable
Invalid
Valid
Null & voidable
2
Null and void
Invalid
Voidable
Valid
2
If bonus is given under a plan the additional premium added is known as
157 Suresh is suffering from Asthma and the policy in been done on joint life basis and the need for nomination under the plan is less as
158 What key impact will the agent have in low persistency
159 Certificate from the village panchayat
160 What is the maximum sum assured under a micro insurance
161 Varun wishes to pursue a career in insurance and wishes to be in a department which calculates the level of premium. In which department should he join?
162 Ashish is looking at different plans of insurance for protection at the lowest premium. Which is the best plan for him?
163 The insurance act of 1938 created which of these.
164 The Authority of COPA is limited to what amount at the district level.
165 With reference to the principle of indemnity a life insurance policy is a.
166 If Insurable interest does not exists at the time of inception of the life insurance policy then, life insurance contract is
167 If a contract is signed by a 15 years old boy, this contract will be
168
Proviso
Schedule
Terms & conditions
Endorsement
2
Total paid premium
Sum Assured
Surrender value
Paid up value
3
Rises
Decreases
Reaches at a level as per industry trends
Insurance can price their product on their self past experiences.
4
Some Specific Insurer
Those Insurer who did not created Insurance Ombudsman System
All insurer
It is optional
3
Life Insurance Council
IRDA
Insurance Association
Insurance Institute of India
2
Provide suggestion for Premium calculation
To be an active link between Global market & Indian Life Insurance Industry
Design, implement and operate an insurance training
Regulate the investment of funds by Life Insurance company
3
He has switched his fund
He has opted for Settlement option
He has redirected his past premium
Policy was lapsed on the time of maturity
2
Administrative charge
Inflation
Interest rate
Market Risk
2
Risk apatite of client
His future aspiration
Commitment to need
Willingness to pay
1
Not necessary to pay premium until court decree
Necessary to pay premium until court decree
Claim not admissible
NA
2
Shailesh is very older than ankit.
Shailesh‟s income is more than Ankit‟s income
NA
NA
1
It is higher
Decrease
Slightly higher
Slightly lower
2
If a life insurance policy is issued with a lien, it will be mention in
169 Available Loan amount under a life Insurance policy is generally based on
170 De- tarrification is a process by which pricing of Insurance
171
As per Regulation for protection of Policyholder‟s interest 2002 (IRDA), Which insurer will have a grievance redressal System
172 Which regulatory body has created a call center for logging a complaints of insurance Customers
173
What is the key function of NIA
After maturity In a Unit Linked Life Insurance Policy, customer does not get 174 received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity pl
175 Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason
176 During Fact finding, rating is mentioned „3‟. This Indicates
177 Incase of presumption of death
178 Shailesh and ankit want to retire in the age of 65yrs. But shailesh pays more monthly payment than ankit. Why?
179 What will be lien amount in 3rd year as compared to the 4th year of lien.
180
One year
Two years
Three years
Five years
2
Needs to take expert‟s suggestion
Equal to base cover
NA
NA
2
Address of the agent
Domicile status
NA
NA
2
2011
2012
2013
2014
1
all types insurance
All types of insurance except Motor insurance
Only life insurance
Only Non-life insurance
1
10 days
15 days
20 days
25 days
2
Within how many years a complaint can be made through consumer protection act.
181 One person wants to take term plan for 20 lakh and wants to take ADB rider, he is not sure of how much sum assured he needs to take for ADB rider. What is your suggestion?
182 Basing on which criteria the qualification of Agent is determined?
183 A customer surrenders his policy on Feb 2011. As per Agents code of conduct, an agent can get a new policy from this customer from Feb which year
184 Pooling of insurance applies to
185 Insurance companies are required to honor the awards passed by the Insurance Ombudsman within how may days
Has the power to supersede the IRDA by issuing notification.
186
Has the power to supersede Has the power to supersede Can make changes the IRDA by issuing a bill in the IRDA by issuing draft in IRDA law parliament
1
If IRDA is unable to discharge its functions or duties, Central Government
187
He will get tax benefit up to 5000
He will get tax benefit up to 25%
He will get a reduction in tax slab
His investment would be deducted from taxable income
4
Number of days admitted in hospital & surgery expenses in full
Number of days admitted in hospital & surgery expenses in partial
Treatment cost of surgery subject to terms & conditions
Lump sum amount what he has incurred
3
Need to spend and Get claim from the insurer
Need to add that hospital as TPA
Need not to claim
Need to switch to the another insurer
1
Childs education
Marriage
Emergency funds
Income protection
4
Life and non life respectively
Both life insurance
Both non life insurance
Nonlife and life respectively.
2
An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. Its the impact in his taxation
188 What are the benefits to the policyholder Under Surgical care rider?
189
Health insurance policy holder takes treatment in a hospital which doesn‟t have cashless facility. How the policy holder will get benefited
190 During financial planning session if the agent finds out the following needs, which one should be given the top priority. Needs: Income protection, Childs education, marriage and emergency funds.
191 Health insurance rider and critical illness rider in classified under
192
Economic risk
Speculative risk
Financial risk
Insurable risk
4
10 days
20days
30 days
60 days
3
Only by few selected insurers
Only by non life
Some life and non life
By all insurers.
4
Provisio
Endorsements
Operative clause
Terms and Conditions
4
Pure risk is classified under
193 If a valid claim is delayed by the insurer then the interest for the same will have to be paid by the insurance after how many days from the date of admission of the claim?
194 As per IRDA regulations IGMS should be mandatory set up by
195 If a customer has mentioned he is a drinker in the proposal form, the insurance company can exclude this hazard and mention it in which part of the policy document?
When the insurance company is in the first 10 years of operation
196
If the agent has worked with If the agent has worked with If the agent is doing the company for more than 5 the company for more than more than 3 policies years 10 years in a month.
1
When can an insurance company give more than 35% first year commission?
197
When the customer asks him
After the fact finding process
After quantifying the need
After the product is recommended to the client
1
Insurance coverage
Annuity part
Guaranteed and non guaranteed part
Vesting age
3
213333 & 273333
213333 & 229333
229333 & 273333
229333 & 293333
1
Pure risk
Financial risk
Particular risk
Physical hazard
3
Lower profits
Higher profits
NA
NA
1
Consumer Forum
COPA
Sebi
Life Insurance Council
1
Nil
1%
5%
10%
1
When should an agent disclose the commission which he will earn from the product which he is going to sell
198 In a pension plan illustration what are the parts which shows the benefit for an annuitant.
199 Mr. shailsh has an endowment policy with 30 years policy term, he has paid for eight years. The sum assured Rs.8,00,000/- and accumulated bonus Rs.60,000/. What is the paid up value if bonus accumulated and if not bonus accumulated?
200 The consequences of these risks which will affect specific individuals or local communities in nature is called as
201 What is the disadvantage to the insurer in case the persistency falls
202 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 ………………………..
203 If a policy with premium of Rs 5000 has matured, how much will be deducted when the maturity claim arises
204
Good Returns
Regular Income
Safety
Liquidity
4
D. Debtor Insurance
2
When a person is investing in Debt Mutual Fund, what is the primary objective
205
A.
Surety insurance
B.
Keyman Insurance
C.
Partnership Insurance
1. If the employer has insurable interest in the life of an employee, what kind of policy is this?
206
Insuring existing losses.
Making false insurance claims.
Paying excessively for insurance cover.
Profiting from insurance.
4
Endowment
Term
Money Back
Whole of Life
3
Group lifestyle
Employees
Age of the group
Medical history of group
3
Insurance broker represent the client and the insurer remunerate the broker
The client represent the broker and the insurer remunerate the broker
The customers are satisfied with the products
The concept of indemnity is based on the key principle that policyholders should be prevented from
207 A customer gets periodic benefits without any claim and then when he dies during the term of the policy, his nominees gets the sum insured. What type of policy is this ?
208 For assessing the risk of a group health insurance policy, which of the following information is the most critical
209 According to Insurance Brokers Association of India, what is the most appropriate relationship between Insurer and Broker?
210
Insurer represent both client Broker only service and broker remuneration the client
1
The company is acquiring more business and new customers
A large numbers of policies have lapsed / surrendered resulting in loss of profit
The company will not declare bonus
3
24 hours
1 day
10 days
30 days
3
15 days from the date of receipt of the policy document
20 days from the date of receipt of the policy document
25 days from the date of receipt of the policy document
30 days from the date of receipt of the policy document
1
Endowment plan
ROP plan
Whole life plan
Ulip
2
Regularly with no fixed term
Lump Sum with no fixed term
Lump Sum for fixed period of time
Regularly for fixed period of time
3
Less than 10000
More than 10000
Less than 20000
More than 20000
3
A low persistency ratio for the insurance company means that:
211 What is the stipulated time frame within which an insurer is supposed to respond after receiving any communication from its policyholders?
212 The proposer can withdraw from the contract, if they disagree with the terms and conditions of the Policy, within a „free look-in period‟ of
213 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 these benefits
214 Payment/Investments in Kishan Vikash Patra under post office schemes
215 Prashant buys an Endowment Plan with a sum assured of Re. 100000 and wants to make use of tax benefit under the policy for whole SA. How much premium would help him avail this benefit
216
5 days from the receipt
10 days from the receipt
15 days from the receipt
20 days from the receipt
3
Calculate the premium
Increase the profitability
Ascertain the death ratio
Declare the bonus
3
Physical
Moral
Occupation
NA
2
Agent
Policy holder
Authorized officials of insurer
Proposer
3
1 lakh
1.5 lakhs
2 lakhs
3 lakhs
1
20%
26%
49%
51%
2
Conciliation and making awards
Counseling
Repudiation of claim
Evaluating claim settlement
1
Non life insurer
Life Insure
Reinsurer
Any Insurer
1
6% and 10%
5% and 10%
6% and 12%
5% and 12%
1
The lump sum withdrawal before receiving periodic installments of annuity
The lump sum withdrawal before receiving maturity benefit
The lump sum withdrawal before receiving Survival benefit
The lump sum withdrawal before receiving Death benefit
1
Yearly Salary
Monthly Salary
Probation Period
Till Gratuity
2
Insurance Advisor
Nodal officer
Chief actuary
Underwriter
1
Under the IRDA guidelines for Claim settlement, any queries or additional documents can asked from the claimant within
217 Law of Large number helps the insures to
218 A person with a criminal background due to Financial fraud would come under which hazard
219 Whose signature is required on attestation of the policy?
220 What is the ceiling of tax exemption under 80 c.
221 Under the prevailing FDI laws for insurance, domestic private companies are allowed to form joint ventures with foreign partners. What percent of stake can a foreign partner hold?
222 The functions of the Insurance Ombudsman include:
223 If a client needs Mediclaim to cover health insurance which insurer he needs to apply.
224 The agent can use the benefit illustration document to show the client the projected growth of investment at the rate of –
225 What is commutation of installments
226 Employee has insurable interest in the life of their employer to the extent of
227 Rahul is appointed as director of life insurance company, he cannot be an
228
Retirement plan
Health insurance for parents
Term Assurance
Endowment Plan
2
Operative Clause
Heading
Proviso
Attestation
1
Life is very uncertain
Cost of healthcare has increased significantly
Premium increases with age
NA
2
Who work only for insurance company
Who work for customers
Intermediaries
Who works for their own interest.
3
Capacity to Contract
Legality of object
Capability of performance
Offer and acceptance
2
Rajan will get a claim of 3 lacs and Rajini will get 1 lacs
3
Ajay and Vijay both are unmarried. Ajay has dependant Parent. Which need Ajay must take care of on priority, although that will not be a priority for Vijay?
229 The mutual obligation of the parties is laid down in?
230 Health Insurance is needed because
231 Insurance agents are
232 Mr Rohan takes an insurance policy due to heavy Debt on his business with an intention of committing suicide. This is an example of the following Feature of a valid contract
233 Rajan and Rajini has taken a Family Floater health insurance Plan of 4 lacs. They met with an accident and had a hospital bill of 6 lacs. Which is true for this situation:
234
They would get the claim of 6 lacs since The claim will depend on the The maximum claim will be the individual cover is 8 lacs surveyor of 4 lacs
Increases
Reduces
Remains same
Depends on insurer
2
Reviewed
Cashed in for investment into other assets
NA
NA
2
A policy Assignment
A Fradulent Claim
A steep rise in inflation
A sudden illness
2
Surrender
Paid Up
Endorsement
Assignment
3
NA
2
None of the above
1
When an individual gets older, chances of obtaining life and health protection will be
235 Any assets, which are no longer suitable or are earning fewer returns than expected, should be
236 What key event is most likely to prevent insurer from ensuring that each insured person brings a fair premium to the pool for the risk presented?
237 The Insurance companies allow modification/alteration of the original policy documents through...
238
Emotion Loss can be compensated for HLV is used as a Yardstick to determine
239
With effect from 1st July 2010 all insurers have to disclose in the benefit illustration document the..
Commission Pay to their agents
The correct cover needed to A lump sum amount that the compensate economical loss person will get from the to their family in case of insurance company death of the earning member
Detail of charges
Both of the above
240
To pay the premium
To fill in the proposal form
To ask the documents
None of the above
2
Insurance Agent & company
Insurance Agent
Insurance company
Insured person
1
He can design the advertisement without the concern of insurer.
Were all his information published to enhance his business.
Describe the benefits which do not match the policy provisions
1
Respect this Ask the proposer‟s doctor to confidentiality by not send details to the insurer disclosing it to anyone
1
If the client accept the recommendation, then the agent should ask the client..
241 Unethical behavior can affect the reputation
242
It contains only statements that mention An agent is not required to obtain the prior approval of the insurer before placing the agents name, logo & phone number. an advertisement when:
243
Notify the insurer of this matter If a person already suffering from some disease and had not mentioned it in the proposal form then as per IRDA code of conduct the agent should
244 How are perils and hazards normally distinguished under term insurance policies?
245 In the context of financial planning, how is the difference between real needs and perceived needs best described?
246
Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying. Real needs are financial needs and perceived needs are non-financial needs.
Refuse to act for the customer benefit
Perils are risks that Perils are factors Perils are factors which policyholders will die before which could affect the risk being insured a specified date and hazards influence an insured and hazards are the size of are factors which could event occurring and the risk being insured. influence that risk. hazards are the Real needs are Real needs are actual needs Real needs are identified by needs which satisfy and perceived needs are the insurance agent and an objective and based on a client‟s thoughts perceived needs are perceived needs are and desires. identified by the client. needs which do not
2
2
Young unmarried
Young married
Young married with Kids
Pre retirement
4
Regulation
Redressal
Research
Repository
3
If a person is concentrating more on health plan and retirement plan then at which stage of life is he in.
247 The Institute of insurance and risk management along with insurance education does what more
248
Insist on taking the product right away If the client does not wish to proceed with the recommendations right at the moment the agent should
249 Suresh has adequate reserve capital with him and he wishes to protect his income, moreover he feels that if he does not die then he would need the amount. What type of plan should he opt for?
250
Should ask for the reason for Should ask for a future date Should review once not going with the from the client again recommendation
3
Term Insurance Plan
Endowment plan
Return of premium plan
Pension plan
3
It was assigned.
It was paid up.
It was lost.
It was surrendered.
3
It was lost.
It was paid up.
It was lapsed.
It was surrendered.
1
A claim was paid in a policy and it was advertised in the newspaper also. This indicates that the policy was.
251 An indemnity bond was signed in a policy when the claim was paid. This indicates that the policy was.
252 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 income. Which should be their lowest priority?
Marriage.
Savings.
Education.
Protection.
1
253
Inflation.
Interest.
Discount rate
Compounding.
3
Sandeep is earning more then Vishal
Vishal is working in a MNC
2
While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account?
254 Vishal and sandeep applied for a health plan in XYZ Life Insurance Company. Vishal is asked to undergo a medical checkup but Sandeep is not asked to do so. What will be most possible reason?
255
Sandeep has taken another policy from Vishal is older than Sandeep XYZ Life Insurance Company
Quantify clients need
Priorities Clients Need
Recommending Product
Fill up the proposal form
1
Guarantees
Taxation
Tenure
Lock in periods
1
Savings
Insurance
Investment management
Planning for pension
3
Physical hazard
Fraudulent representation
Moral hazard
Peril
1
Misrepresentation
Lack of insurable interest
Fraud
None of the above
1
Pooling of risk
Maintaining insurable interest
With utmost good faith
Randomness
1
Individual agent
Corporate agent
Bank
Broker
4
Equity market
ULIP
Debt mutual fund
FD
3
Give the lead to another agent
3
During fact finding, What will be the next step after Identifying clients need
256 What is the similarity between Recurring Deposits & cumulative deposits in a bank
257
Mrs. Sheela received some amount out of her husband‟s death. In such a situation what will be her prime focus?
258 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
259 Which of the following falls under voidable contract?
260 Law of large numbers is worked out by which of the following?
261 If a client wants to compare between all financial products then the best person he can approach is
262 If a person want to maintain emergency funds the best place is a bank or
263 During a fact finding process the need analyzed were income replacement and children‟s education. But the customer insists on only a child plan for the time being and asks the agent to give him a child plan. The agent should.
Do the fact finding exercise again
Insist with the client to take a Give a child plan and revisit term plan the client on a later date
264
Give a recommendation
Give a joint decision with the consumer forum
Dismiss the case
Give an award.
3
It rises
It falls
It remains constant
Gross premiums increases
3
Liquidity
More gold in value
Purity
More conversion value
1
Increase his liquidity
Decrease his liquidity
Physical Hazard
Moral Hazard
SA is too high
Pure Risk
3
Enquire about the refusal from the client
Suggest an alternative plan
Pass on to the superior
Pass on to the other agent
1
Fraudulent claim
Indisputability clause
Redressal procedure
Pending decision from Ombudsman
2
Under no circumstances
Under conditions of the reinsurer
As directed by actuary
As per company policy
1
Reinstatement Fee and Proof of continuing good health
Premium cheque and health declaration
Only health certificate
Premium cheque with arrears
1
Investment Risk
Risk of death
Uncertainty of return
Chances of lapse
1
Risk profile of both the policyholder are different
Age of both the candidate are different
One has chosen Single premium policy and other has chosen regular premium policy
Both have chosen different kind of policies.
4
Ensure Better annuity rate
Increase in the range
Increase in return
Switch of Funds
2
If a case is already before the consumer forum, then the ombudsman should
265 If the sum assured remains the same, what will be impact of net premium if the age of the policyholder increases
266 What is the advantage of converting physical gold assets to gold ETFs.
267 Suresh wants to transfer his physical gold to gold exchange traded fund,in relation to access, this change will
268
For which of the following reasons, the underwriter should ask beyond agent‟s confidential report.
269 After doing the need analysis of the client, the agent advised the client to opt for TROP product. But the client refused. According to ethical business practices what will the agent do ?
270 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 With pooling of risks an insurance company pools the premium collected from 271 several individuals to insure them against similar risks. At what circumstances will the insurance companies pool the risk of a life insurance and health insurance together?
272 In case the customer has stopped making payment for the premium of the policy. What are the two most important things required in order to reinstate the policy?
273
Reduce his ability to encash Create a future exit for next six months liability
1
Frequent switching is not advisable in ULIP plan because it increase An insurance agent sold two policies to two different persons having the same 274 policy term. He declares the commission to each of them. The commission of one of the policy is more than the other. What should be the reasons for this difference?
275 Open market option under Annuity policy would extend which of the following benefit?
276 Akash is an Unmarried person and employed with company ABC and drawing a handsome salary. He has no liabilities. What kind of plan can be suggested to him?
Money Back
Term Plan
277
Fact finding
Consulting the client‟s parents
Ajit is above 65years of age whereas vijit is below 65
Ajit is NRI and vijit is Indian
Ajit‟s health is better than vijit
NA
1
A family floater
Life insurance
Individual cover
Group health insurance plan
1
6 weeks
1 month
2 months
6 months
2
Age admission
Disclosure of material fact
Premiums paid or not
NA
2
A‟s health was better than B
A‟s term was longer than B
B‟s term was longer than A
NA
3
Pooling of risk
Transfer of risk
Prevention of risk
Sharing of risk
2
Medical reports
Proposal form
Policy document
NA
2
Change not allowed
Can be done through endorsement
Can be done through an affidavit sworn in
A simple application would do.
2
Non payment of due premium
Breach of duty of disclosure of material facts
NA
NA
2
Sum assured
Sum assured plus bonus till date
Premiums paid till date
Sum assured minus bonuses paid till date
2
What should an agent do in order to understand the mental state of client in respect to his investments in saving products
278 Ajit and vijit are 2 friends paying same premium for health insurance. Why ajit has higher tax exemption eligibility than vijit
279
Endowment Plan
Consulting the family of the Reviewing his client existing investments
Sumit is having 2 children. He wishes to have health cover for himself and his wife. Which suits him the most?
280 A policy holder is not satisfied with the services of the insurer and complains to ombudsman. In how many days from receipt of the complaint the ombudsman should pass the recommendation.
281
ULIP
4
1
As per claims assessment process if a claim arises within a few days of the start of the policy which factor should the insurer check in the first place?
282
A and B start their policies on the same date and surrender on 22nd anniversary of the policy. But A‟s surrender value is higher than B. the reason was ;
283 In life insurance industry which mechanism operates so as to enable the individuals to reduce the impact of risks
284 Which from the following would help best the underwriter to know whether the proposer had applied previously and his application was rejected
285 A policyholder wants to change the nomination after 5 years of the policy. What would happen
286 An insurer can invoke indisputability clause in case of death only in
287 Compound reversionary bonus of 4 % will be calculated on
288
Breach of utmost good faith
Breach of trust
NA
NA
1
289 An agent recommends a term plan in keeping with the ethical standards since it was suitable to client‟s needs. In such a case what is the percentage of commission which he can rebate so as to beat the competition
Maximum 10%
Half of the commission
Cannot rebate at all
2%
3
290
Margin money
Retirement plan
Depends upon his actual age and years left for retirement
Depends upon the amount needed
3
The inflation rate
The interest rate
His income
NA
1
Gratuity amount
His standard of living
NA
NA
1
Diversified
Lessened
Increased
NA
1
Endowment
Term
Whole life
Moneyback
3
Explaining charge structure
Issuing reminders
Offering credit facility to client
Offering premium collection facility to client
2
It might fell short of actual needed and family would suffer
It will bring a smaller premium
Tax exemption will be lesser
NA
1
The needs that came to fore in fact find process
Benefits of the products
Commission on the products
NA
1
a unit linked policy
a term life policy
an endowment policy
a money back policy
2
need not disclose the amount of commission
need to disclose the amount of commission
needs to disclose the amount of commission on demand
Should not disclose
3
A proposer shows his age lesser than his actual age. This will be termed as
A client has got some funds and wants to provide for retirement and margin money. What should be his priority
291 While planning for retirement fund to calculate the required amount needed at that time we should consider as priority
292 While calculating retirement fund required for a self employed person which of the following option will automatically be ruled out
293 A client has his investment in equity shares. Agent advises him to keep it in equity based mutual fund. This will make the risk
294 Ajay is 35 years old. He wants good amount of life insurance cover along with savings element with no defined term. Which plan should be suggested
295 Which of the following act from agent will be specifically useful in case of annual premium policies compared to monthly mode policies
296 Underselling life insurance comes under unethical practices because
297 During product recommendation the agent should explain the product in relation to
298 The income of an individual can be protected with the help of
299 As per the IRDA circular an insurance agent
recommend the products that best meet the client's needs
300
Recommend to take own time to take a decision.
1
He can‟t take loan He can surrender whole life He can‟t take loan from from whole life policy policy and can take loan from money back but can avail but can avail loan Money back policy loan from Whole life policy from Money back policy
3
recommend to wait some days to invest
recommend the new product the company has recently launched
During the recommendation stage the advisor needs to
301 Mr. Anil has a money back policy and a whole life policy. He is planning to take some loan from both the policies as he was regularly paying the premium. What is your suggestion?
He regularly pays premium so he can take loan from both the policies
302 Mr. Kartik got a job recently, he can‟t afford to pay to pay the higher premium 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?
Convertible Endowment plan
Convertible Term plan
Convertible pure Endowment
Convertible money back plan
2
Fact Finding document
KYC document
Benefit illustration document
Client benefit document
3
Non-disclosure of material facts
Concealment of material facts
Fraudulent misrepresentation of material facts
Innocent misrepresentation of material facts
2
On assignment
If more than one person is nominated
NA
NA
1
severity of risk
physical hazard
moral hazard
Probability of risk
1
a high premium for a high risk
for reduction in sum assured
NA
NA
1
Agent
Broker
NGO
Bank
1
Indexed
Guaranteed
Unit linked
NA
3
Child Investment
Health Insurance
Life Insurance
Retirement
4
Benefit could fall short of the financial liabilities
Excessive Premium
SA ceased too early
Tax concession opportunity could be lost forever
1
303 An agent was explaining to his customer the guaranteed benefits of the product. Which one of the following documents he would have used to explain the same?
304
Mr. Mehra wants to insure his wife. Previously his proposal was rejected by another company, but this time he submits the proposal form without showing this to a new company. This is
305 When does nomination get invalidated
306 Law of large numbers help in calculating the
307 A lien is generally used as a substitute to charging
308 If the customer wants to seek information about all products, then he can avail the services of
309 In case of pension plans a guaranteed minimum return of 4.5 % is applicable when the plan is
310 A married couple having 9 year old child have to consider life insurance, health insurance, child investment & retirement plans for their better future as a family but at present condition which aspect should be kept at lowest priority?
311 The main reason why an agents act of underselling insurance is treated as a unethical behavior is
312
Liability Insurance
Marine Insurance
Motor Insurance
Travel Insurance
2
Contact the Regulators
Issue a wrong note
Refuse to proceed
Inform the insurer
3
Quotation Request Form
Proposal Form
Policy Document
Claim Form
2
Switching
Doing a financial planning
Churning
Fact Finding
3
It affects the basic cost of cover
Dictate the Rider Benefit should be recommended
Helps to quantify the client‟s attitude to risk
Influence the tax status
3
The customers are satisfied with the products
The company is acquiring more business and new customers
A large numbers of policies have lapsed / surrendered resulting in loss of profit
The company will not declare bonus
1
Health plan
Child Plan
Life Insurance
Retirement Plan
4
Retain
Transfer
Avoid
None
2
Save Tax
Fluctuating income
High Returns
Protection
4
Need analysis
Understand about company
Introduction of agent
Understanding the Customer
1
60000
75000
100000
5000
2
Life Insurance Council
IRDA
Actuaries
Underwriter
2
In which type of insurance Insurable Interest exists at the time of claim?
313 In a process of completion of an insurance proposal, an agent finds that the intention of the proposer was not genuine. In this case what should the agent do?
314 The documents likely to provide the underwriter of an insurance company, the details relating to the previous subject application, which have been accepted as non-standard..
315 If the agent recommends the client to terminate an endowment plan and take a whole life in order to earn higher commission its termed as
316 After completing a Fact Finding activity for a client, who is self employed, the main reason why it is important to record the type of work that he is involved in is…
317 A low persistency ratio for the insurance company means that:
318 Mr. Shyam is having 9 year old child. Which product is not to be given priority?
319 Which is the best option to manage risk?
320 What is the major reason for self employed to take insurance.
321 What is the major reason for conducting fact finding exercise?
322 If 5% bonus is given every year then for a SA of 1 lakh, what will be the payout after 15 years in a simple revisionary bonus system?
323 The guidelines for annual assumed growth rate are given by
324
IRDA
Insurance Company
Life Insurance Council
CII
2
Inspection by IRDA
Audit by Finance Ministry
Appointment of Principal Compliance Officer
Inspection by Auditor General
4
National Commission
District Level
State Level
Mandal Level
2
No, as 15 days period is over
Yes, as it is within 1 year
No, as 20 days period is over
Yes, as it is within 3 months
1
Term & Children Plan
Annuity Plan
Whole Life Plan
Health Plan
1
Transfer
Control
Retaining
Avoidance
3
Yes, as Naveen and Ram are of same age.
No, customers needs are different
Yes, as both are teachers
No, as there is an age difference.
2
Normal
Fraudulent
Early
General
3
5000
10000
15000
20000
1
Million Dollar Round Table
Major Double Rupees Tag
Major Dollar Round Tag
Mean Disposition Residence Time
1
A clause
A Lien
A Loading
Level Premium
2
Ask the client to fill the proposal form
Find out the reasons for refusal
Must try to convince the client to follow his recommendation
Must try to force the client to follow his recommendation
2
Pricing element is done by
325 AML Program of every insurer to include _______________, apart from Procedure, Training and audit.
326
Ravi was expecting a claim amount of Rs. 12, 00,000 from insurer. But it was rejected. He feels that it is repudiated on wrong reasons. Which consumer forum can he approach?
327 Vijay received his policy bond on 11th June, 2011. Due to some personal problems he has decided to cancel the policy on 8th July, 2011. Can he cancel or return the policy?
328 Naresh is married and his daughter Sneha is 3 years old. Which plan can he take?
329 Vinay doesn‟t want to take insurance on himself. He feels that his family will survive with the funds available in the bank and monthly rentals received from village. This comes under Risk ______ Naveen, aged 32 years, has taken money back plan. He is a teacher by 330 profession. Naveen referred Prasad to Ram. Prasad is also teacher. Ram who is an agent advised Prasad to take money back plan as he is of same age (33 years). Is it the right advice? Why?
331
Ajay has bought an endowment insurance plan with a cover of Rs. 10, 00,000 for a term of 15 years. Ajay died after 4 years. Insurance company will not treat this claim as ________ claim.
332 What is the minimum Sum Assured allowed for Micro Insurance?
333 What does MDRT Stand for?
334 In a case, the underwriter felt that the risk associated with the person would decrease with time, then he would accept the case with
335 If the recommendation of the agent has been rejected by the client, the agent should:
A Family Floater Plan is the same as a Individual Plan
336
Only self and spouse can be Any number of people may covered in this plan be covered in this plan.
Which of the following is true regarding Family Floater Health Insurance Plan?
337
The insurance cover is shared amongst the family members in no fixed Proportion
4
25% each
15% each
50% each
No Proportion
4
Agent
Insured
Policy Holder
Insured person
1
Critical Illness Rider
Hospitalization Care Rider
Accidental Benefit Rider
Surgical Care Rider
2
X only
X with wife
X with wife and kids
X with all
4
20 times annual salary
500000
1500000
4000000
1
Rs.20000
Rs.25000
Rs.5000
Rs.50000
4
Monthly
Yearly
Quarterly
Once in 6 months
4
RBI
IRDA
SEBI
Constitution
1
Person receives a fixed amount of 1000 daily.
Person receives benefit only if he is hospitalized for 3 days minimum
1
In what proportion is the cover in a Family Floater Plan shared?
338 To identify suitable products their main features and their tax treatments is the role of:
339 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
340 Mr. X is married with wife, 2 children and aged parents Health premium is allowed for
341 Maximum Life cover
342 As per AML regulation, it allows cash premium not over than
343 Bank interest is accumulated
344 _____ controls monetary system in India
Person receives fixed amt daily for no of Person receives an amount days in hospital equal to the expense.
345 Hospitalization rider has the following benefit:
346
to develop the habit of savings
to obtain Income Tax benefits
for protection of financial security
to obtain loan as when required to meet financial obligations
3
transferred
prevented
avoided
reduced
1
The main purpose of buying an insurance policy normally is
347 Insurance is a mechanism through which risk of an individual can normally be
348
In the context of Insurance terminology, how the meaning of „Peril‟, „Risk‟ and „Hazard‟ is best described?
349
Peril, Risk and Hazard are of the same meaning
Peril is the event, Risk is the loss of event and Hazard is the wrongful even
Peril is the event, Risk is the cause of event and the Hazard is an event of dangerous nature
Peril is the event, Risk is the likely occurrence of the event and the Hazard increases
4
all types of financial risks
the homogeneous risks
the heterogeneous risks
the speculative risks
2
Capability of performance
Legality of object
Capacity to contract
Offer
3
blood relation between the Proposer and the Life assured
Proximity of relationship between the Proposal and the Life assured
Emotional Financial relationship relationship between between the Proposer and the Proposer and the the Life assured Life assured
3
To see that the proposal is accepted by the underwriter at OR
To ensure that his client is not burdened with extra premium
To see that the plan To give truthful report to the as proposed by the Insurer all about the life to client is not changed be insured on underwriting
3
Present value of the Difference between the future earnings less Yearly income is the HLV of Sum assured is the HLV of the proposer Assets and Liabilities is the personal expenses the proposer HLV of the proposer is the HLV of the proposer
4
Pooling of risks is one of the fundamental principles of insurance where the Insurers pool the premium collected from Rohit, 17 years old, submitted a proposal for Endowment plan of Rs.1 lac to AB 350 Insurance Co. In the absence of an essential ingredient of a valid contract, the proposal was not accepted. Which factor caused the insurer for non-acceptance of the proposal?
351 A proposal of life insurance is not accepted in the absence of Insurable interest which mainly depends on the
352 What role an agent is likely to play in the process of underwriting?
353 In insurance, HLV is a known abbreviated term. How the meaning of HLV can best be described in relation to a income earning proposer?
354
Accident benefit and riders.
Pension and monthly income.
Death cover and maturity benefit.
Interest yield and variable income
3
The basic elements of life insurance are:
355
Deferred date is a policy anniversary.
On vesting date policy has to After vesting the contract is Deferred date is date be assigned to the life between the insurer and the on which the risk assured. life assured. commences.
2
Pick the wrong answer. In a child plan:
356 There is a relation between Age, Risk and Risk appetite. Which relation is most likely to be acceptable?
357 Regular savings creates a fund to meet adverse incidents in future. For drawing a financial plan for savings needs of an individual without capital, what is the Fund which comes first?
358 A Proposer asks for double death benefit in an Endowment assurance plan for 15 years. How his proposal will suitably be dealt with?
359 In a Health insurance plan what the particular feature is likely to cause the Insurer to decrease the Renewal premium?
Age increases, Risk increases and the Risk appetite increases
Age increases, Risk increases and the Risk appetite decreases
Age increases, Risk decreases and the Risk appetite increases
Age increases, Risk decreases and the Risk appetite decreases
2
Retirement fund
Emergency fund
Fund for untimely death
Education Fund
2
By offering another Endowment assurance plan
By addition of Accident Benefit rider to the proposed Endowment assurance plan
By addition of Term assurance rider to the proposed Endowment assurance plan
By addition of Premium waiver rider to the proposed Endowment assurance plan
3
Cashless facility
Exclusion
No claim bonus
Waiting period
3
360 Out of all the factors that affect the needs of different life stages of an individual, which is the most common factor that is likely to exist throughout the life span of an individual?
361
Employment
Age
Marital Status
Liability
2
a Public sector employee
an unmarried young
A self-employed person
A Government employee
3
Disability
Unemployment
Sickness
Education
4
House
House loan
Investment in shares and mutual fund
All of them
2
Sales transactions
Relationship transactions
Monetary transactions
Assured transactions
2
IRDA Act,1999
IRDA Regulations, 2000
Insurance Act,1938
Indian Contract Act,1872
3
A provision for superannuation is normally taken a high need to
362 Financial planning may not be taken as complete till inclusion of the predictable needs of the clients. It is likely to emerge from the incident of
363 Which one is not an asset
364 Transactions of sale of life insurance products to the insurable clients are viewed in the Insurance market mostly as
365 Which Act or Regulation provides that the Renewal commission is payable to the legal heirs of the Insurance agent in case of his death?
Ranjan took out a 20 years Money Back plan on his own life 5 years ago. Survival claim will not be paid and only 366 Survival benefit was due on 4.5.2011. Ranjan died on 6.5.2011 without receiving the survival benefit amount. What will be the legitimate procedure to pay out the death claim will be paid to the Nominee claim?
367 A life assured died after 40 days from the payment of his monthly premium. If there be any claim, how the claim will normally be dealt with?
368
A regret letter will go intimating that nothing is payable as death claim
Both the survival claim and the death claim will be paid to the Nominee
Survival claim will be paid Bothe claims will be to the Legal heirs and the paid to the Legal death claim to the Nominee heirs
3
Full sum assured Full sum assured will be paid Paid up value, if any, will be less deduction of as death claim paid as death claim unpaid premium will be paid
4
Rs. 300
Rs500
Rs 1000
Any of them
2
Nominee
Assignee
Trustee
Policy holder
3
for life
for 10 years from the date of disqualification
for 7 year from the date of judgment
for 5 years since completion of the sentence imposed
4
Policy matter
To present statement of IRDA act in Parliament
May issue notification
All of them.
4
Agent offering rebate may be fined
369 In MWP Act Policy, claim is paid to
370 If an Insurance agent is found guilty of breach of trust, he will be disqualified to act as an insurance agent. The disqualification stands valid
371 Central govt has authority of Direction to IRDA on
372 It is the bounden duty of the Insurers to protect the interests of their policyholders from proposal acceptance to claim payment because of the
373 For redress of grievances of the policyholders, a number of Authorities have been formed. Which of the Following authorities has been empowered to hear the complaints and adjudicate?
374
In the context of IRDA‟s code of conduct, the term Ethical behavior can be best described as
375 An agent offered his client that 75% of the first premium will be paid by him out of commission. This offer of rebate on premium will be treated as
376
Behavioral requirements of EGovernance
Market competition
Requirements of the Life Insurance Council
Regulations of IRDA
4
Insurance Ombudsman
Consumer Grievance Redress Forum
Consumer Affairs department
IRDA
2
a behavior that is based upon the positive judgment of an individual
a behavior that is based upon the legal judgment of an individual
a behavior that is based upon the ritual judgment of an individual
a behavior that is based upon the moral judgment of an individual
4
a rebate on the price amount a breach of IRDA‟s code of like other sales conduct
a breach of a provision of the Insurance Act,1938
4
a kind of gift for purchasing insurance products
Before the contract is concluded
NA
NA
NA
1
Policy is taken under joint life basis
NA
NA
NA
1
Monthly
NA
NA
NA
1
Reasonable
NA
NA
NA
1
Prinipal amount
NA
NA
NA
1
No of days spent in hospital multiplied by Daily hospitalisation benefit
NA
NA
NA
1
30% of the base premium
NA
NA
NA
1
NA
NA
NA
1
Principle of utmost good faith is expected for max up to which stage
377 A nomination is not required if
378 Bank savings account earn cumulative interest at what frequency
379 A person has 6 months of emergency funds.This is:
380 If I invest in a G sec partway(ignore periodic interest payments).I will get on Maturity
381 Daily hospitalisation benefit:
382 ADB rider premium cannot exceed
383 An agent does 6 lacs of new business premium /Income in a year. He is a composite agent. What is the maximum Premium/Income he can earn from 1 insurer?
384
Providing service to the clients
NA
NA
NA
1
Research
NA
NA
NA
1
1. Inflation.
2. Interest.
3. Discount rate
4. Compounding.
3
Persistency can be improved by:
385 IIRM is in areas of education and
386
While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account?
387
Which of the following falls under voidable contract?
1. Misrepresentation
2. Lack of insurable interest
3. Fraud
4. None of the above
1
388
Customer has opted for a 5 yrs guaranteed annuity option. What will happen to annuity, if the customer survives for 5 years after the end of guarantee period?
1. paid up to 75 Yrs
2. annuity will be continued for next 5 Years
3. till he die
4. not remembered
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
2
1. Administrative charge
2. Inflation
3. Interest rate
4. Market Risk
2
1. Risk apatite of client
2. His future aspiration
3. Commitment to need
4. Willingness to pay
1
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
2
1. Nil
2. 10%
3. 20%
4. 30%
1
1. all types insurance
2. All types of insurance except Motor insurance
3. Only life insurance
4. Only Non-life insurance
1
1. Childs education
2. Marriage
3. Emergency funds
4. Income protection
4
After maturity In a Unit Linked Life Insurance Policy, customer does not get 389 received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity plan
390
Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason
391
During Fact finding, rating is mentioned „3‟. This Indicates
392
Incase of presumption of death
393
Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness before maturity?
394
Pooling of insurance applies to
During financial planning session if the agent finds out the following needs, 395 which one should be given the top priority. Needs: Income protection, Childs education, marriage and emergency funds.
396
For assessing the risk of a group health insurance policy, which of the following information is the most critical
1. Group lifestyle
4. Medical history of group
3
397
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
1. Critical Illness Rider
4. Surgical Care Rider
2
398
A Professional insurance market carries…..
4. Company – Based Selling.
1
399
Insurance Market divided into
2. Life and General (non-life) 3. Government and Private 4. Health and Saving Insurance Insurance Markets Insurance Markets
2
400
What is Bancassurance?
1. Giving insurance policies to Banks.
2. Selling insurance policies through Banks.
3. Giving guarantee to policies by Banks.
4. None of the above.
2
401
The “Risk” contains….
1. Peril and Hazard
2. Level
3. Uncertainty
4. All of the above.
4
402
Grouping the similar risks by Insurance Company is called as….
1. Grouping of Risk
2. Risk Grading
3. Risk Assessment
4. Pooling of Risk
4
403
The function of Insurance works on…..
1. Risk Transfer
2. Risk avoid
3. Risk retention.
4. All of the above.
1
404
A contract comes into existence when………
4. One party makes 2. One party makes an offer 3. One party makes an offer an offer which the which the other party put where other party gives other party receives extra conditions. counter offer. the offer.
1
405
Mr. Kumar‟s wife is suffering from blood cancer. Doctors lost their hope on her live. Mr. Kumar would like to take Life Insurance policy on wife‟s name in order to get monitory benefit. Insurance company rejects this proposal on the grounds of…….
406
Under this situation may leads to breach of the duty of utmost good faith.
407
The principle of utmost good faith is not applicable to
1. Need – Based Selling
1. Endowment and Money Back Insurance
1. One party makes an offer which the other party accepts unconditionally.
1. Anti Money Laundry
1. Non disclosure of material facts.
1. Facts of common knowledge
2. Employees
3. Age of the group
2. Hospitalization Care Rider 3. Accidental Benefit Rider
2. Product – Based Selling
2. Legality of object or purpose
3. Commission – Based Selling
3. Capacity of paying future premiums.
4. All of the above
2
2. Concealment of a material 3. Fraudulent fact misrepresentation of facts.
4. All of the above.
4
4. All of the above.
4
2. Facts of law
3. Facts those are not material.
408 What is the main source for insurance company to get information of proposer?
409
What are the factors involved in calculating Surrender Value of the Policy?
Mr. Kumar is taken one life insurance policy with ABC Company. But he is not 410 satisfied with the policy benefits. What Mr. Kumar can do under this situation?
411 Moral Hazard reflects the …….
412
Income replacement methods equates Human Life Value (HLV) to
413
Agent will be called as…..
Mr. Rajesh has taken policy from ABC insurance company for Rs. 500000 Sum 414 Assured by paying Rs. 50,000 premium per year. Company declared 5% Simple Reversionary bonus, what is bonus amount?
415
Term Insurance Plan will give….
416
Low risk products give…..
417
Who will maintain Mutual Fund Schemes?
418 Which is the primary saving need among all saving needs?
419
Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this amount for his daughter‟s marriage which is going to happen with in Nine months. He would like to get some returns from this money in these 9 months period. What is the best option to park his money?
1. Advertisements.
2. Proposal form.
3. Conducting interviews.
4. Telephonic conversations.
2
1. Number of year‟s premium paid.
2. Number of premiums payable.
3. Sum Assured
4. All of the above.
4
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.
3
1. Intentions and attitude of Proposer.
2. Habits and Hobbies of Proposer.
3. Occupation and Residence of Proposer.
4. Medical and Personal History of Proposer.
1
1. Future value of Present earnings.
2. Present value of future earnings.
3. Present value of previous earnings.
4. Future value of previous earnings.
2
1. Primary Underwriter
2. Main Underwriter
3. Chief Underwriter.
4. Information Underwriter.
1
1. Rs. 2500/-
2. Rs. 25000/-
3. Rs. 250000/-
4. Rs. 5000/-
2
1. Only Death Benefit.
2. Only Maturity Benefit.
3. Only Bonus Benefit.
4. Only Tax Benefit.
1
1. High Returns
2. Low Returns
3. Moderate Returns
4. Good Returns
2
1. Mutual Fund Management Societies
2. Mutual Fund Management Systems.
3. Asset Management Companies.
4. Asset Maintenance Company Limite4.
3
1. Insurance
2. Purchasing House
3. Investment.
4. Contingency/ Emergency Fun4.
4
1. Insurance
2. Shares
3. Fixed Deposit in Bank
4. Mutual Funds.
3
420
Which of the following product not comes under Section 80 ( C ), income tax act 196
Mr. Suresh purchase one pension plan and accumulated Rs. 9,00,000 amount 421 in his pension fund. He would like to utilize commutation benefit before taking pension. What is amount Mr. Suresh can withdraw as commutation?
1. National Saving Certificates.
2. Equity Linked Saving Schemes.
3. Principle component of home loan.
4. Premium paid for Health Insurance Plan.
4
1. Rs. 3, 00,000/-
2. Rs. 4, 50,000/-
3. Rs. 90,000/-
4. Rs, 4, 85, 468/-
1
1. Collection Phase.
2. Accumulation Phase
3. Pension Phase.
4. Primary Phase.
2
422
Customer has to pay the amount in regular intervals to create purchase price or Pension Fund. We call this phase as…..
423
Some Health Plans will give coverage for family members also. We will call these plans as…..
1. Family Health Insurance Plans
2. Total Protection Policies.
3. Family Floater Health Insurance Plans.
4. Family Rakshak Health Plans.
3
424
Mr. Hitesh would like to get health coverage along with Life Insurance. What are the options available to Mr. Hitesh to fulfill his need with a little cost?
1. Taking Life Insurance plan with Critical Illness Rider.
2. Taking Health Plan, Insurance Plan separately.
3. Taking Medi-claim plan with Life Insurance.
4. Taking Hospital Benefit Plan with Endowment Plan.
1
1. Young Unmarried.
2. Young married with children.
3. Retirement.
4. Children.
3
1. Closed Ended Questions
2. Open Ended Questions.
3. Interrogative Questions.
4. Clarification Questions.
2
Mr. Govind, Advisor with ABC life insurance company find out one client is 425 seeking solutions for health care and inheritance planning. Which main life stage he most likely to fall into?
426
Which type of questioning is very useful to gather information from clients?
427
Perceived needs are those….
428 Need analysis involves identifying………
429
Which is the not part of KYC norms?
430
Remuneration to Agents includes
Mr. Gayaram, Advisor who advised the customer to close the old policy and 431 take new one. But new policy does not have any extra benefits but it will give more commission to Mr. Gayaram. This is called as……
1. Short term needs.
2. Imagined to be important 3. Imagined to be important 4. Long term needs. by Advisor. by client.
3
1. Financial provision to meet predictable and unpredictable needs.
2. Capacity to pay the premiums in future.
3. Existing insurance plans.
4. Family and Employment details.
1
1. Photographs
2. Proof of identity
3. Proof of address.
4. Lapsed policy details.
4
1. First Year Commission
2. Renewal Commission.
3. Both of the above.
4. Salary and Reimbursement.
3
1. Switching
2. Churning
3. Redirecting.
4. Shifting.
2
1. Client and Insurance Company
2. Insurance Company and IRDA
3. Client and IRDA
4. Insurance and Reinsurance company.
1
1. Role of Agent
2. Product Design.
3. Policy Servicing
4. All of the above.
4
1. A demand to fulfill the policyholder‟s obligations.
2. A demand to fulfill the insurer‟s obligations.
3. Any demand made by the 4. All of the above. policyholder on the insurer.
2
1. Client
2. IRDA
3. Advisor
4. Insurance company
4
436 Which is the right statement regarding claim enquiry?
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 inception date.
1
437
Which is the 2nd stage in Money Laundering?
1. Layering
2. Placement
3. Integration
4. Amalgamation.
1
438
Who controls and regulate the rates, advantages, terms and conditions that may be offered by insurers in the respect of general insurance business.
1. Insurance Regulatory and Development Authority.
2. Reserve Bank of India.
3. Tariff Advisory Committee.
4. Insurance Institute of India.
3
439
How many ombudsmen offices located in India?
1. 10
2. 12
3. 14
4. 15
2
440
What the name of department that is established by IRDA to deal with customer complaints?
1. Customer Complaint Department (CCD)
2. Customer Grievance Department (CGD)
3. Consumer Affairs Department (CAD)
4. Consumer Protection Department (CPD)
3
441
Ethics can be defined as…
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 one‟s own actions right or wrong.
4. All of the above.
4
1. Over selling of Insurance policies.
2. Under selling of Insurance policies.
3. Explaining all details of the policy to customer.
4. Churning.
3
1. Risk retention
2. Risk transfer
3. Risk avoidance
4. Risk tolerance
2
432
An insurance agent is intermediary between….
433
What is the factor which has influence on persistency?
434
What is meant by a claim under insurance policy?
435
Who will take the initiation to settle the maturity claim process?
442 Which is not unethical behavior in below statements?
443
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-----------------
444 Which of the following do not include the channel of indirect marketing?
1. individual agents
2. bancassurance
3. insurance brokers
4. through internet
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.
3
1. physical values of assets
2. economic values of assets
3. metaphysical values of assets
4. market values of assets
2
1. death is certain
2. death is uncertain
3. the timing of death is uncertain
4. Death is the solution.
3
1. future data
2. past data
3. statistical data
4. mathematical data
2
1. surety-co surety
2. employee-employer
3. husband-wife
4. brother-sister
4
450 The principle of utmost good faith applies to...........
1. only insurers
2. only proposer
3. both insurers and proposer
4. neither insures nor proposer
3
451 When an illiterate person wants to have a policy.....
1. an impression of the left thumb is taken and third party has to attest it
2. an impression of the left thumb is taken and the advisor has to attest it
4. A relative of the 3. an impression of the left illiterate person has thumb is sufficient and need to sign on behalf of not be attested that illiterate person.
1
1. The policy will be renewed on the existing terms and conditions.
2. Mr. Shanth cannot renew the policy
4. Mr. Shanth can 3. the policy may be renew the policy only renewed on different terms on the approval of and conditions the insurer
3
4. The section 39 of 2. Nomination can be done 3. A person having a policy 1. The life insured can nominate one or the Insurance Act either at the time the policy is on the life of another should more than one person as nominees. 1938 speaks about bought or later. make a nomination. the nomination.
3
4. Conditional 2. The assignor need not be 3. Section 45 of the assignment and major at the time of insurance act speaks about absolute assignment assignment. assignment. are one and the same.
1
2. Mr. Shanth can take loan which should be certain percentage of the surrender value of the policy.
2
445 Which of the following can be an example of moral hazard?
446 The business of Insurance is connected with................
447
Human beings need life insurance because..................
448 Life insurance the risk is determined on the basis of ..........
449
Where do you not find insurable interest in the following options.........
452
Mr.Shanth has taken an endowment policy of 15 years with ABC insurance company. 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 which of the following options will apply to him?
453
Which of the following statement is not true in connection with nomination?
454 Which of the following statements in correct in connection with assignment?
Mr. Shanth has taken an endowment policy of 20 years. He has paid premium 455 for 10 years and now the policy is in force. At this point of time can Shanth take loan?
1. Assignee cannot make fresh nomination in the policy
1. Mr. Shanth will not be granted any loan
3. There is no concept of loan in insurance policy
4. loans are allowed only in term plans
456 The underwriter can get the required information about the proposer in.....
457
Mr. Ramesh works in a mining company. So he is exposed to..............
458
Lien is imposed on a policy when underwriter feels that......
459
The income of an individual can be protected with the help of.........
460
Mr. Shanth has got a pure endowment policy for 30 years for the sum assured of Rs. 75,000,00/-. It can be paid to him......
461 The disposable income means......
1. Proposal form.
2. renewal receipt
3. brochure
4. annual report
1
1. moral hazard
2. physical hazard
3. mental hazard
4. Ethical hazard.
2
1. the risk associated might increase
2. the risk associated might decrease
1. a unit linked policy
2. a term life policy
3. an endowment policy
4. a money back policy
2
1. when he dies
2. when he survives the term
3. when he is hospitalized
4. when he loses his job
2
1. the surplus amount that can be invested
2. the amount that can be paid towards one's EMIs
3. the annual bonus amount
4. the sum of one's all investment
1
4. the risk 3. the risk associated might associated might be not be harmful general
2
462
Mr. Shanth is in his early 20s and has just started earning. His risk appetite is expected to be.....
1. high
2. low
3. normal
4. Neutral.
2
463
Which of the following ways is easier for a person to take a saving product?
1. through individual agents
2. through internet
3. corporate agents
4. call centers
2
464
Flexibility like partial withdrawal and taking premium holidays is possible with....
1. Fixed deposits
2. Unit linked Insurance plans
3. Term Insurance
4. Endowment plans
2
Mr. Rajgopal has invested some money. He has been informed clearly about 465 the tenure, interest rate and method of payment of interest at the inception of the investment itself. His investment may be in.....
1. Life Insurance
2. Mutual fund
3. Shares
4. Bank deposits
4
466
Which of the following is not a feature of WOP rider?
467
Mr. Ramakant is 35 years old. He has bought retirement plan for 20 years. This type of pension plan is known as..................
2. This rider is ideal for 1. The rider waives future premiums in 3. The main strength of helping to prevent a policy 4. WOP rider can be the event of the disability or death of the lapsing due to non-payment WOP is the payment of full offered with all plans policy holder. sum assured. of premiums due to death or disability
1. immediate annuity
2. life annuity
3. deferred annuity
4. joint life annuity
4
3
Mr. Ranga has taken Critical Illness Rider. In which of the following scenarios the insurance company will pay him......
3. When Mr. Ranga's family 4. When Mr. Ranga member will be in critical dies due to severe illness road accident.
1. When Mr. Ranga dies due to critical illness
2. When Mr. Ranga is diagnosed a critical illness
1. the lower
2. the higher
3. the smarter
4. the superior
1
Mr. Ramachandra's son Mr. Bharat has just employed as a software engineer, 470 daughter Anusha has got married. Now Mr. Ramachandra is free from his burden. So Mr. Ramachandra is now in the ...................stage.
1. Pre-retirement stage
2. Post retirement stage
3. Married with older children stage
4. Employment stage
1
Mr. Vinodh has lot of inconvenience to reach office every day. So he wants to 471 buy an expensive car when he will have sufficient fund. Here Mr. Vinodh's need is.............
1. Real need
2. Perceived need
3. Imaginary need
4. Important need
2
1. recommend the products that best meet the client's needs
2. recommend to wait some days to invest
3. recommend the new product the company has recently launched
4. Recommend to take his own time to take a decision.
1
468
469 The younger the age of an individual..............their liabilities will be.
2
472
During the recommendation stage the advisor needs to......
473
For an insurance advisor churning is.............practice
1. good
2. bad
3. compulsory
4. appreciable
2
474
According to IRDA regulations the maximum percentage of first year commission to be paid to an insurance advisor is.............
1. 30 %
2. 35%
3. 40%
4. 45%
2
475
In the case of agent's death, the commission payable will be paid to.........
1. his legal heirs
2. to his nominee
3. will stop automatically
4. Paid in lump sum to the survivors.
1
476
Mr. Chintamani has taken a policy from ABC Company on 2nd March 2010, but unfortunately he died on 18th August 201 His death claim is considered as..........
1. Normal death claim
2. Early death claim
3. Abnormal death claim
4. Unnatural death claim
2
477
Detailed Investigation will be triggered in case of......
1. Maturity claims
2. All death claims
3. Early death claims
4. Rider benefit claims.
3
478
In insurance, if a person is not heard for .......years his is presumed to be dead.
1. 5 years
2. 6 years
3. 7 years
4. 8 years
3
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 amount will be
2
479
In the process of settling maturity claims....
1. the company will wait until the 2. the process is initiated by claimant comes to office to demand the the company well in advance claim of the maturity date
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
2
1. 1956
2. 1999
3. 1955
4. 1947
3
1. policyholders
2. shareholders
3. insurers
4. General insurers.
1
1. IRDA
2. Agents
3. Shareholders
4. Underwriters
2
Mr. Sharma is a newly recruited insurance advisor. To meet his month target he 484 explains only the good points of newly launched plan to his customer. Here Mr. Sharma's behavior is............
1. ethical
2. unethical
3. professional
4. Perfect.
2
485
The code of conduct has been prescribed in India by...........
1. IRDA
2. Insurance Council
3. Insurance Institute of India
4. Government of India.
1
486
Which one of the following is possible in retaining the risk?
1. Retaining the ownership in the policy
2. Not possible as life has many risks.
1. At the time of uncertainty
2. At an early age
480
Issuance of a license to a person has been stipulated in................Act
481
The Insurance Institute of India (III) was formed in.....
482 The insurance ombudsman has been appointed to protect the interest of.......
483
The charges were not fully disclosed to the customers" is a common complaint against.....
487 The timing of death is uncertain, so when one should take life insurance?
488 Insurance Protects which of the following?
1. The life of the person paying compensation
1. Tables of death occurring in various circumstances
3.Is possible by transferring 4.Is possible by Rerisk to the policy holder insuring oneself
2
4. At the time when Advisor takes the decision
2
4. The life of the nominee
3
3. Anytime in life
2. The risk retained person 's 3. The financial goal of the family insured
3. Tables of details of 4. Tables of details 2. Tables of details of underwriter‟s calculation on of actuarial various probabilities of death death calculation on death
489
What does the mortality tables contains ?
4
490
Mr. Guptha is recently detected with lung cancer. He would like to take an insurance. What is your suggestion?
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
4
On 6th August there was a typhoon. Mr.Augustin who had insurance died in 491 typhoon. Now how will the insurance company will categories this particular risk ?
1. Under the category of Pure risk
2. Under the category of peril risk
3. Under the category of particular risk
4. Under the category of Risk Transfer
1
Mr.Akash filled the proposal form but before submitting to the company he 492 discussed with the agent that he is not sure whether he can pay for 15 years . This attitude affects which part of the contract?
493 Agent who is a licensed intermediary is actually is ?
Mr.Karan who has to go to abroad for 6 months on an official work decides to 494 leave his car with his friend Mr. Jim. What will be the validity of the insurable interest in this case ?
1. Consideration in the contract
3. Consensus ad idem
4. Offer and Acceptance in the contract
4
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
2
4. The insurable 2. The insurable interest 3. The insurable interest interest between the between the car and karan is between the car and karan car and Jim is valid valid for 6 months is valid until he owns it until Karan‟s return
3
2. Capacity to contract
1. A legal person to act on behalf of the 2. B.A legal person to act on re-insurer behalf of the insurer
1. The insurable interest between the car and jim is valid for 6 months
Mr. Varun who own a multi chain company would like to take an insurance. What will be the best option for him from the following ?
1. He can take Surety insurance
2. He can take Business Partner insurance
3. He can take Key man Insurance
4. He Can take company insurance
3
Mr. Josh was filling the proposal form but as his mother was sitting beside him, 496 even though he drinks and smokes he ticked “NO” in smoking & drinking column of proposal form. This indicates ?
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
2
1. claim of critical illness and 10 lakh from term policy will be settled
2. claim of hospital charge Rs 20,000 and 1 lakh for death will be settled
3. Claim will not be settled as he died due to cancer
4. Claim will be settled as per the instructions of underwriter
1
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
1
495
497
Mr.Feroz has taken policy for critical illness worth Rs.1 lakh in health policy. He also has a term plan worth Rs.10 lakhs. Mr.Feroz was hospitalized after he was detected with cancer .Unfortunately he died after 3 days of treatment. How the claim will be settled?
Mrs.Shwetha has taken a loan from her policy. Later stage she neither paid back 498 neither the loan nor she paid the premium for a very long time. What will happen to her policy?
499
Which of the following information does not appear in the First Premium Receipt?
500
Mr.Santhosh working as a head master who is around 52 years had requested for an Insurance cover for Rs.1 crore. He insisted that his brother‟s son should be the nominee not his wife. Underwriter will verify this case for which one of the following:
Mr.Feroz has applied for an insurance cover of Rs.4 crores. The Company will 501 accept or reject the proposal only after confirming from one of the following agencies.
502
The responsibility for classification and analysis of the proposal form lies with whom?
503 In underwriting the economic value of the person is determined by what?
1. method and frequency of premium payment
2. Date of commencement of 4. Date the last 3. Date the policy matures last premium premium will be paid
2
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 brother‟s son is the nominee
4. D. Moral hazard, as he is a head master and 52 years old
3
1. Financial Inspection agencies
2. Specialized inspection agencies
3. Credit worth inspection agencies
4. Insurance Investigation Agencies
4
1. Risk Analysis Department
2. Classification of Risk Department
3. Underwriter
4. Actuary who analysis the risk
3
1. The occupation of the person
2. The financial history of his 3. The income that he earns 4. Human Life Value family
4
504
Mr. Kumar decides that his employees should have SSS scheme. What type of plan is SSS?
1. Salary saving Life plan
2. Not a specific plan
3. Salary insurance plan
4. Salary Specific plan
2
505
The concept of Risk diversification is applicable in which of the following instrument ?
1. Mutual Fund
2. Risk Diversified Insurance
3. Shares
4. Risk Sharing insurance
1
506
Ajay bought a share for Rs.110 and he sold when it was Rs.630.What had happened to his share?
1. Capital Appreciation
2. Capital Profit
3. Capital Benefit
4. Capital Variation
1
507
Which of the following can‟t be ducted under section 80 c from taxable income?
1. Pension Funds
2. Public Provident Fund
3. Employee Gratuity Fund
4. Infrastructure Bonds
3
508
Which official body decides to increase the interest rates?
1. Central bank of India
2. Reserve bank of India
3. Reserve bank of country
4. Central bank of country
2
509
Who act as an intermediary by offering a trading platform for buying and selling of shares? Chap-6
1. Bombay Share exchange
2. Bombay Stock exchange
3. Stock brokers
4. Share brokers
2
510
Which one of the following cannot be covered under Critical illness rider?
1. Blindness
2. Paraplegia
3. Coma
4. Brain Surgery
4
511
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?
1. Guaranteed period annuity
2. Life annuity
3. Deferred Annuity
4. Immediate annuity
4
1. Investment and retirement
2. Investment and Protection
3. Investment and savings
4. Investment and life needs
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
2
1. Fact Finding Sheet
2. Advisor Confidential Sheet
3. Customer Data sheet
4. Personal and financial data sheet
1
1. Fact Finding document
2. B.KYC document
3. C. Benefit illustration document
4. D. Client benefit document
3
512 Which are the two primary needs of any customer in any point of life?
Mr. Raj has taken a policy of 15 year term. He has paid the premium for 9 513 years. But now unfortunately he has lost his job. He is unable to pay the premium. What can be the best solution from the following ?
514
In which of the following an agent will collect the customer‟s Personal data, professional data and financial data
Mr.Mohith, an agent was explaining to his customer the guaranteed benefits of 515 the product. Which one of the following documents he would have used to explain the same?
Mr.Harsha an agent wants do a thorough Fact Finding for his client to Mr.Kishan 1. Client‟s Profits and Withdrawals from 516 who is a business man. Which of the following information will be helpful to know business about the earnings and Expense of Kishan?
2. Client‟s Expense statement
3. Client‟s business details
4. Client‟s business records
1
517
Which one of the section deals with the licensing of an agent?
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
1
518
Which one of the following factor does not help in the Persistency ?
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
3
519
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. Churning of the policy
2. Surrendering the policy
3. Switching the policy
4. Claiming the policy
1
520
Which regulations take care of the settlement of claims ?
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
1
Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He also has 521 an ADB rider worth Rs. 4 lakhs. Unfortunately Baskar died in a car accident. How much will be the death claim settlement?
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.
3
522
1. Representatives from all insurance companies
2. Representatives from all government bodies
3. Representatives from IRDA
4. Representatives from Insurance institute of India
1
1. Life insurance council
2. Consumer insurance council
3. National Insurance council
4. General insurance council
1
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 for the issuance of duplicate license
3. Need to complete 25 4. Need to complete hours of practical training 50 hours of IRDA and paying Rs.100 for the training and paying issuance of duplicate Rs.50 for the license issuance of duplicate
1
1. Nodal officer
2. Grievance call center
3. Compliance cell
4. Compliance officer
1
Which is the Regulation that insists that all the insurance companies should 526 provide the information about the insurance ombudsman of that region while sending the policy documents.
1. Policyholder grievance Regulation
2. Policyholder‟s Protection regulation
3. Ombudsman Regulation
4. Compliance Regulatory
2
Mrs. Hansa an agent, has planned to sell maximum products within a short span 527 of time by giving maximum rebates to the customer to complete the contest target of the company.
1. It will benefit both the company and the customer
2. Reputation of the company will be high due to offers to 3. Agent will be terminated the customer
4. Agent will be qualified for the contest
3
Which of the following team represents the members of GBIC ?
Which council among the following focus on creating a positive image of the 523 insurance industry and would also like to enhance the Consumer‟s confidence on the same ?
Mr.Varun taken up his agency in July 5th 200 His lost his IRDA license while 524 travelling. His agency has also expired. What is the solution for Mr.Varun ?
525
If any consumer is dissatisfied with the customer care cell of any insurance company to whom they can escalate their grievances.
Mr.Raghav is an expert in fact finding .Mr.Raghav helps his brother in his job by 528 sharing the information of his clients after the fact finding he does to procure insurance. What will be the outcome ?
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
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.
3
1. Insurance brokers.
2. Bancassurance.
3. Individual agents.
4. Internet.
4
1. Company‟s code of conduct.
2. IRDA Acts code of conduct.
3. IRDA Regulations code of conduct.
4. Insurance Acts code of conduct.
3
1. Future expenses.
2. Claim experiences.
3. Present expenses.
4. Targeted bonus rates.
2
1. Speculative.
2. Particular.
3. Financial.
4. Fundamental.
3
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.
4
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.
1
Rakesh purchased a life insurance policy. While writing a proposal form he hide 536 that he practices mountaineering. Sadly he died in an accident while climbing Mount Everest. The insurers rejected the claim.What is the reason for rejection?
1. Innocent misrepresentation.
2. Fraudulent misrepresentation.
3. Concealment.
4. Non-Disclosure.
4
Shamsher has a health insurance policy of ` 1, 00,000 individually and from his company for ` 2, 00,000. He falls sick and got hospitalized. His hospital bill ran 537 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 rejected. The reason for rejection is.
1. Indemnity contract.
2. Value contract.
3. Deemed contract.
4. Rolling contract.
1
1. Heading of policy document.
2. Proviso of policy.
3. Operative clause.
4. Schedule of policy document.
3
1. Quotation is signed by proposer.
2. First Premium Receipt is issued.
3. Proposal Form is signed.
4. Policy Document is received by policyholder.
2
529 The concept of need based selling involves
530
E-sales refers to sales of insurance products through
531
Rahul is a licensed insurance agent. As agent he must carry out his role in accordance with
532
Life insurance company determine the level of risk based on
533
Ram works in a Fire cracker factory. He stocks the cracker in his house. He runs which type of risk.
534
In Insurance terms, pooling of risk is
535
A contract exists between insurer and proposer when
538
Payment of premium and sum assured are laid down in
539 An insurance contract commences when
540
When is premium considered / deemed to be paid?
Ram Lal is an insurance policyholder. He has recently shifted his home from 541 New Delhi to Noida. He wants the address to be changed. This change in policy document will be effective through?
542
Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 annual premiums but due to financial crisis is unable to make future premium. His policy
543
How assignment distinguishes itself from nomination?
544
When an underwriter may consider Moral Hazard?
545
Level Premium is calculated based on
546
MPL abbreviates
547
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.
2
1. Terms & Condition.
2. Preamble.
3. Endorsement.
4. Schedule.
3
4. Acquires paid up value.
4
1. Acquires surrender value.
2. Contract comes to an end. 3. Moneys will be forfeited.
3. Nomination is made after 4. Nomination need policy is issued while not be informed but assignment is done before assignment needs to it is issued. be informe4.
1. Nomination does not transfer the title while assignment does.
2. Nomination transfers the title while assignment does not.
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.
3
1. Risk Premium.
2. Net Premium.
3. Loading of Premium.
4. Gross Premium.
1
1. Minimum Possible Loss.
2. Major Possible Loss.
3. Minor Possible Loss.
4. Maximum Possible Loss.
4
What is generally considered as a substitute to charging a high premium for a high risk?
1. Clause.
2. Assignment.
3. Lien.
4. Level Premium.
3
548
Manmohan has recently purchased a house worth ` 50, 00,000 on loan. Which insurance product you as an adviser will suggest?
1. Endowment Plan.
2. Money Back Plan.
3. Whole Life Plan.
4. Term Plan.
4
549
To avail the income tax benefit at investment stage, premium should be maximum
1. 10% of S1.
2. 20% of SA.
3. 30% of SA.
4. 40% of SA.
2
550
The savings needs of a particular individual is majorly determined by
1. Amount of disposable income.
2. Current assets.
3. Current liabilities.
4. Duration of investment.
4
551
For his investment need, Ravi has parked funds in equity. The returns from this form of investment can be categorized as
1. High Risk.
2. Low Risk.
3. Moderate Risk.
4. No Risk.
1
1
552
While calculating the expected returns from investments and savings, an individual should make provisions for
1. Taxation only.
2. Inflation only.
3. Taxation & inflation both.
4. No provision is require4.
3
553
Vijay, aged 30 years and married, is the sole bread winner for his family. He is saving enough with banks.As an agent, which need you prioritize first?
1. Retirement need.
2. Tax planning need.
3. Financial security need.
4. Asset building nee4.
3
554
The Central Bank has recently announced the decrease in interest rates. The prices of bonds are
1. Likely to increase.
2. Likely to decrease.
3. Will fluctuate.
4. No change is likely.
2
555
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 involved 1. To purchase an accidental rider with while travelling and a savings plan. What suggestion would you give him as an a savings insurance plan. agent?
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.
1
556
The general need for purchasing a health insurance plan at an early age results from which of the following factors?
1. The premium decreases with increasing age.
2. The premium remains constant with increasing age.
3. The premium may increase or decrease with the increasing age.
4. The premium increases with increasing age.
4
557
The life expectancy in India is constantly improving and is well above 60 years. This also brings along challenges. These challenges can be covered through
1. Equity.
2. Bank fixed deposits.
3. Health insurance plan.
4. Savings insurance plan.
3
558
Anand has purchased a pension plan which is nearing completion of accumulation 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 withdrawal?
1. 1/5th of accumulated amount.
2. 1/3rd of accumulated amount.
3. 2/5th of accumulated amount.
4. 2/3rd of accumulated amount.
2
559
During the fact finding session as an agent you should follow which one of the following process?
1. Prioritize, Identify & Quantify Needs.
2. Identify, Quantify & Prioritize Needs.
3. Quantify, Identify & Prioritize Needs.
4. Prioritize, Quantify & Identify Needs.
2
560
As an adviser why is it essential for you to carry out the financial planning exercise with the prospective clients?
1. Individuals understand their real needs and can prioritize them.
2. Individuals have same financial needs at different stages of the life cycle.
3. Individuals do not 4. Individuals‟ real understands their real and perceived needs needs and cannot prioritize are same. them.
3
After undertaking financial planning exercise, the prospective client said that he 561 does not have funds for investments. To resolve this query, which skill of an agent would be tested?
1. Objection handling skills.
2. Listening skills.
3. Communication skills.
4. Client information gathering skills.
1
1. Gather Clients Information only.
2. Identify only the client‟s needs.
3. To provide solution of company‟s choice.
4. Both identify clients‟ needs & gather information.
4
4. Provide the website address to the client.
2
562
The objective of Fact Finding is to
563 To explain the benefits of a product, the insurance adviser should
1. Provide the product brochure to the client.
3. Provide the terms and 2. Provide Benefit illustration conditions document to the documents to client. client.
1. When the clients policy is issued.
2. When the client‟s needs have been established.
3. When the nominee has changed.
4. When the maturity/claim is settle4.
4
1. Persuade the client to purchase the policy.
2. Should ask for reference who might be interested in financial planning.
3. Should never approach the client ever again.
4. Should do nothing.
2
1. When a client have been sold the right solution.
2. When a client is holding a product having good value for money.
3. When the policy has been mis-sold and do not match his needs.
4. When the client is enjoying good financial status.
3
1. High renewal income.
2. Less renewal income.
3. Fewer client bases.
4. Unsatisfied clients.
1
1. The policyholder makes a demand.
2. The nominee makes a demand.
3. The event insured against happens.
4. The insurer completes the enquiry.
3
Aman has taken a term plan for 20 years. In the 3rd year he suffered financial 569 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. 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.
1
570
When a policy is lost, insurance company take utmost care while settling maturity claims because
1. The claim may not be genuine.
2. The policy may be pledged.
3. The facts were misrepresented.
4. There is no nomination.
2
571
What key event is most likely to make an insurance contract not a valid contract?
4. There is no insurable interest attached to the policy.
4
572
Under Married Women‟s Property Act, 1874 a policyholder is
564 The agents duties and responsibilities ends
565
When client declines the recommendation by the insurance adviser even after resolving the concerns, the adviser should
566
Under what circumstances the surrender of a policy should be recommended by the agent?
567
What key benefit high persistency ratios have on insurance adviser?
568
Insurer will not pay the claim unless
573 Who has the authority in insurance company to issue/cancel the agents license
574
Which organization was formed with purpose to promote insurance education and training in India?
575
A client demands the information on the current status of a policy indicating accrued bonus. The insurer should provide communication within
1. The circumstances are legitimate.
2. Representation of facts by 3. The life assured is major. the policyholders is true.
1. The Life Assured.
2. The beneficiaries.
3. The trustee.
4. The administrator.
3
1. Insurance Company.
2. Designated Person.
3. Branch Operations Team.
4. Actuary.
2
1. Institute of Actuaries of Indi1.
2. National Insurance Academy.
3. Chartered Insurance Institute.
4. Insurance Institute of India.
4
1. 10 Days.
2. 15 days.
3. 20 Days.
4. 30 Days.
1
576
To ensure that the customers complaints are handled effectively, IRDA has established
1. Integrated Grievance Management System.
2. Internal Grievance Redressal Cell of the Insurer.
3. Grievance Redressal Officer.
4. Consumer Affairs Department.
4
577
Amit & Rashmi are newly married. Both are working couple. They want to invest 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
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.
2
1. Underselling of insurance policies.
2. Churning.
1. Life, Non –life, Micro Insurance.
2. Life, Non Life, Miscellaneous
3. Life, Non life, Reinsurance.
4.Life, Health, Micro Insurance
3
1. Property Insurance
2. Life Insurance
3. Health Insurance
4. Liabilty Insurance
2
[email protected]
2.insurancecomplaints@irda. gov.in
[email protected]
4.Complaints@irda. gov.in
4
Shankar, an adviser, sold a term insurance policy and unit-linked insurance 578 policy (ULIP) to Amar, the client, who is unmarried and has no dependent. Consequently, Shankar‟s action can be termed as
579 Insurance business is classified into three main types:
3. Overselling of insurance 4. Ethical practice by policies. an adviser.
3
580
Amit is looking for term insurance plan for protection of his family, he is advised to approach to:
581
Insured can contact to seek the resolution of grievances they have against insurer to IRDA through:
582
An Insurance company pools the premium collected from several Individual to insure them against similar risk is called:
1. Pure Risk
2. Pooling of Risk
3. Insuraable Risk
4. Sharing of Risk
2
583
Which of the following Risk is associated with those events which are not in control of an individual and also no possibility of making profit:
1. Pure Risk.
2. Particular Risk.
3. Financial Risk.
4. Insurable Risk
1
1. Peril
2. Hazard
3. Physical hazards
4. Uncertinity
2
1. Loan assignment
2. Conditional Assignment
3. Loan Agreement
4. Absoulte Assignment
2
1. Endowment Plan
2. Term Plan
3. Money Back Plan
4. Annuity Plan
1
584 which of the following refres to specific event which might cause a loss ...
Manish took a loan from Pankaj of Rs.10 lac, Pankaj transferred his Insurance 585 policy to Manish of Rs.10 lac as a security with the agreement Of when Loan is fully paid, policy title will be revert back to name of Manish is called:
586
Rakesh has bought an Endowment, Money back, Term & Annuity Plan he would like to avail Loan from:
587
On foreclosure, if Death claim arises before the payment of the surrender value, the payment would be payable to:
1. Nominee
2. Legal heir of life Assured
3. Debotrs
4. forfeited the Premium
2
588
To prove one‟s identity in accordance with KYC process, the customer needs to submit following document excluding ……….?
1. An Age Proof
2. An Identity Proof
3. An Address Proof
4. Education Proof
4
1. Value Contract.
2. Indemnity
3. Commercial Contract
4. Speculative
1
589 Life Insurance also known as:
590
Which clause lays down the mutual obligation of the parties regarding, Payment of Premium by Life assured & payment of Sum Assured by
1. Lien Clause
2. Opertaive Clause
3. Proviso Clause
4. Schedule of Policy
2
591
Gaurav is working in MNC at the age of 32 bought an Endowment Plan. He had nominated his 1 year old daughter Saanvi, but not able to get the Signature of her appointee due to unavailability of his spouse .after 5 year. He died in road accident, now claim money would be payable to:
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
2
592
Parvesh bought a policy an endowment plan but after one year insurer. Found he had Aorta Surgery .now which will apply by insurer:
1. Indisputability Clause (Section 45) apply
2.Principal of Indemnity apply
3.Lien Clause
4.Utmost good faith apply
1
593
Jyoti is submitting is copy of permanents account number card as age proof for buying an money back plan .her age consider as a
1. Non Standard Age Proof
2. Standard Age proof
3. an Address proof
4. Proof of Income tax payer
2
594
Which one of the following bonuses is given by insurer as an incentive to the insured to for long term:
1. Simple Revisionary bonus
2. Compound Revisionary bonus
3. Persistency Bonus
4. Interim bonus
3
595
Ramesh bought an endowment plan for tern year he pays the same Amount in every year is called:
1. Gross Premium
2. Level Premium
3. Risk Premium
4. Net Premium
2
1. Proposal Form
2. Insurance agent
3. neighbor of proposer
4. Medical of examination report
3
1. Physical Hazard
2. Moral Hazard
3. Medical
4. No underwriting
2
1. Master Policy holder & insurer
2. Employer & Employee
3. Employee & Insurer
4. Creditors & Debtors
1
596 Which one of the following is not source of information about the
597
Manish being a sole earning member of his family not insured himself But looking for insurance for his son who is student .there is possibility of
598
In Group insurance plans contract of insurance between …………?
599 Which option is not correct with regard to joint life insurance plan?
600 Time deposit account is issued by:
1. Plan offer insurance coverage for two person in one policy
2. This plan is ideal for brother & sister.
3. Each life will be underwritten separately.
4. A joint life policy may cover a partner in business under one policy.
2
1. Post office
2.Bank
3.Mutual Fund
4. Life Insurance co.
1
601
Pankaj want to save tax over and above the deduction allowed under section 80C of the income tax act 1961, which allow deduction from taxable income
1. Corporate Bond
2. Infrastructure Bond
3. Health Insurance
4. Interest paid on education loan
2
602
In which of the following Bank pays the Interest on the deposit‟s fund on monthly /quarterly /half yearly/ yearly basis as chosen by depositor fund:
1. Saving Deposit
2.Cumlative deposit
3. Traditional Deposit
4. Fixed Deposit
3
4. Discourse saving in a purposeful and need based manner.
2
603 Vinod being an insurance agent can offer assistance to his client Ramesh by:
604
Which of the following is not featured and benefit of rider?
Gaurav bought an endowment plan for 20 year of 10 lac SA with ADB Rider, 605 died in road accident after 10th year how much money claimant would be payable:
606 What do you mean by Double Income Family?
607 In which of the following case there is no defined retirement age?
608 Which one of the following is true?
609 Objectives of fact-finding do not include-
610
Which one of the following documents distinguishes between Guaranteed and non-guaranteed benefits?
1. Providing him emergency fund.
2. Matching the product with 3. Recommendation of Ramesh„s financial need. product with highest return.
1. Providing additional cover
2. Maturity benefit
3. Nominal cost & flexibility
4. Customization and tax benefit.
2
1.10 lac
2. 20 lac
3.30 lac
4.5 lac
2
1. When a person of the family is involved in double businesses or jobs.
2. When both the life partners are earning members of the family.
3. When the income of a family is just the double of income of another family.
4. When the members of a family do not work at all.
2
1. Public sector employees
2. Private sector employees
3. Professionals & Businessmen
4. All of the above
2
1. Every individual‟s income and expenditure pattern is same.
2. Every individual‟s income and expenditure pattern is different.
3. An individual‟s income and expenditure has no relation.
4. An individual should not keep in mind his income while planning his expenditure.
2
1. Identify needs
2. Gathering client data
3. Provide for anticipated changes
4.Surrendering the existing policies for selling new one
4
1. KYC documents
2. Benefit illustration documents
3. Fact-finding sheet
4. Financial details
2
611
Under which one of the following acts the maximum remuneration that can be given to insurance agents described?
612 Which one of the following is not a benefit of persistency?
1. Income Tax Act
2. Indian Contract Act
3. Insurance Act 1938
4. IRDA Act 1999
3
1. Helps the client in achieving goals
2. Reduction in costs
3. Increased client satisfaction
4. Decreased revenues
4
1. Satish should check the Ramesh „s commitment to the needs
4. Should advised 2. Satish should outline the 3. Satish should check the him to surrender all reasons for recommendation acceptance or rejection of the polices which are for a particular policy the recommendation. not buy from satish.
4
614 Why a building long term relationship with clients is necessary?
1. A satisfied client may be the source of other potential clients
2. Reviewing financial needs and plans are necessary with changes
4. Introduction of a new insurance product or a change in a client‟s Circumstance
3
Pranab is not able to pay premium for continue his policy due to some Financial 615 problem, so he rather than surrendering the policy, what Option he has to convert ……….?
1. In to paid up and reduced Sum Assured would be payable on maturity.
2.Return of Premium on maturity
3. Deduct the underpaid 4. Policy was subject premium from Sum assured to lien. and payable on Maturity
1
1. only Sum assured
2.Sum Assured + Bonus
3. Sum assured plus vested bonus minus any outstanding loan/premium & Interest.
4. Paid up value only.
3
613
Satish as an insurance advisor while recommending to his client Ramesh is not suitable policies –
Ajay has bought an endowment with profit plan for 20 year .if he took a Loan 616 after 5th of commencement of policy and died before 2 year of Maturity .what would be payable on maturity?
3. Agent has the option to recommending highest commission at any time.
617
Under what kind of Rider the insurance company pays the treatment cost in the event of hospitalization of the insured, subject to term & Condition of the rider.
1. Accidental death benefit (ADB)
2. Critical illness (CI)
3. Hospital Care (HC)
4. Term Rider.
3
618
Which one of the following report is not considered in case of Pankaj Bought a plan in 2009 & died in road accident in 2011 :
1. Policy first information report.
2. Advisor confidential report
3. Post Mortem Report.
4.Coroners Report
2
619
Married Woman‟s Property Act 1874 provides that a life insurance Policy that has been taken out by:
1. Married Woman
2. Married Man
3. Married Son
4. Married Daughter
2
1. Life Insurance Council
2. Life Insurance Corporation
3. Insurance Regulatory Development Authority
4.Insurance Institute of India
1
1.15
2.12
3.14
4.16
2
1. Life Insurance Council
2. Life Insurance Corporation
3. Insurance institute of India
4. Insurance Institute of India
1
620 The face of the life Insurance industry in India is ………..?
621
How Many offices of Ombudsmen the Government body has set up to Resolving insured customer‟s grievances.
622
For Insurance industry which association to take steps to Develop Education and research in insurance?
623
Pankaj being a license insurance advisor has to follow code of Conduct provided by:
1. Insurance Regulatory Development Authority
2. Life Insurance Company
3. Reserve Bank of India
4. SEBI.
624
Which is the body who provides grant to Insurance Regulatory Develompent Authoruty to carry out activites.
RBI
LIC
Central Government
SEBI
625
While applying for a policy unintentionally Mr.X forgot to disclose that he consumes alcohol,In cotext with Utmost good faith This will be treated as
Non Disclosure
Misrepresentaion
Breach of Trust
Concealment
626
An underwriter accepts the proposal with certain modified terms and coditions,What it denotes
Lien
Counter offer
Decline
Postpontment
Adequate
Inadequate
too low
too high
1
Explain him difference between important & unimportant need
Explain him difference between short term & long term need
1
Explain him difference between real need & perceived
Explain him difference between financial & non financial need
627
1
Ram has set a provision for contigency which can survive for 6 month .This amount is considered as
628 XYZ client wants to buy a car in future , however his financial planning shows that he cannot afford car as of now .As a financial planner you should
629
NA Premium Income earned by an agent holding a composite license is 600000. What is the max contribution of one organisation
60000
1.5 lac
1.2 lac
3 lac
After fact finding , Ram has presented the product to the client in te second meeting . If client approves the recommendation what should be the next xtep
Ask the client to sign the contract of relationship
Check the client's commitment to the need & continue with process
Should take some more time to conclude the sale
Should close the discussion then & there
630
631
2
3 Sanjeev in a lumsum investment is getting benefit of multiple securities
Bonds
Fixed Deposit
Mutual Fund
KVP
632
1 The risk of unemployment is covered with what benefit in the policy
Rider
Continouation
Subsidiary
discount
Insurer has deducted Rs 3000 from the death claim of Ram. What could be the reason for deduction when all the due premiums were paid
Paid up option
Lien
Commutation
Loan Facility
Prospectus of an endowment plan should differentiate in types of benefits
Exception & exclusion
Maturity & death benefit
Gauranteed & Nongauranteed benefits
None of theabove
633
4
634
3
635
In case of term plan the premium for CI rider shall not exceed
4 25%
50%
75%
100%
636 Loading in a term plan is more likely beacause of
Morbidity
Mortality
Admin expenses
Investment expenses
The needs of a client were identified,and according to that ,maximum life cover was the first priority,what plan to suggest?
Wholelife
Endowment
Term plan
MutualFund
License criteria,crimnal offence in the past.given IRDA license.Why?
he was less than 21 at that time
offence had a punishment of atleast 5 yrs hav passed less that 2000 since the sentence
637
638 exception
639
3
3 In Surgical benfit rider what would be the payout procedure
Per day Hospital Cash Benefit RespectivePer to the daysurgery Hospitalmade Cash Benefit Will irrespective get lumsum to thebenefit surgeryrespective made Irrespective to surgery to the sugery have been made
640
4 A Critical Illness claim is settled in a policy. The benefits of the policy can be used for
Only for Illness
For Repairing house
Only For Doctors fees
Not specified
641
1 If the client prefers bank fixed deposit rather than cumulative deposit ,due to what implication ?
Investment Frequency
Interest Rate
Look in period
Taxation
In case of lien,the risk will classified as per underwriting standards
better than average risk,at the early stage of life
better than the average risk ,at the later stage of the life
Higher than the average risk,at the early stage
Higher than the average risk at the later stage of life
642
643 which of the following is the final stage of fact finding with the client?
644 Sarath is the client and looking for large SA, and the proposal to be certified in the context of confidentiality report with relavent to moral hazard,who is concerned person to do!
Discuss with proposer about future life prospects and changes
4
3 ACR
645 As per agents code of conduct,Agent Recommends protection Plan,but the client insist on investment plan for the financial planning,what an agent should do! Recommend both the plans
646 Which is suitable life stage to buy Unit linked insurance plan?
Completion of Proposal form Recommending Solutions
Coming to mutual agreement with objective for Solutions
3
Young Married with no children and Single income family
Superior of the Sarth's insurance agent
Insurance company
Propose an investment plan and discuss with him regard to discomfort of term plan
2
Refuse to act with client
Report to the senior and seek his Guidance
Young Married with no children and Double income family
Young Married with Young Married with children children and Double and Single income family income family
2
Sarath nominee
647
1 Insurers observe high persistency ratio,then
policy reserve increases
648 Two policy Matures at the same time for an insurance company,what are the other requirment for maturity with respect to policy.A is absolute assignment and B is conditional assignment.pending requirment in relation with B A loan and interest is outstanding
Reserve decreases
Remains constant
Surplus decreases
A loan amount and oustanding premium is pending
A outstanding premium is pending
A sign on discharge form
motoring sport is risk and influences moral hazard
motoring sport is a motoring sport is risk and physical hazard influences physical hazard and it influences risk
IRDA
National Insurance Academy
649 If a person have motoring sport as hobby before taking insurance policy,then what it implicates
Moral hazard is Sport and it influence the risk of life
3
650
4
2 Agent has to comply the code of conduct prescibed by
Insurance institue of India
Insurance Compliance Dept
651
4 If a health rider is taken in a policy, maximum rider premium can be %age of base premium
25%
50%
75%
Nominee is minor
Assignment is done to 3rd party
Policy assigned to insurer
Type of policy
Assignment made in a separate deed
Registered with the court
Puts in the newspaper
By signing the proposal form
Persistency bonus
Outstanding premium + interest
100%
652
2 Change of nomination is not allowed in which situation
653
3 In case of assignment, what key factor indicates the requirement of stamp duty
Age of the insured
654
3 In case of nomination, how does the appointee gets its appointment validated
655
2 Maturity benefit is equal to Sum assured plus reversionary bonus minus ?
Outstandin premiums
656
1 If a policy of term 30yrs is imposed with lien, what will be the lien period
5
10
15
20
Reduced target of agent will have what impact on churning
more likely
less likely
less transparent
more transparetn
In a pension policy if agent says the cost would be 120% of present value if he invests for 10 years, this is due to
Charges
Compounding
Taxation
Premium increase
657
2
2
658
3
659 After clearly identifying 2 needs from fact finding, client agrees to go for one and gives the reason, what should the agent do now Do a fact finding again
Refuse to proceed
Proceed with agreed need and document the rejection Get second opinion
In a non life policy, the person who is authorised to process the mediclaim is known as
Underwriter
Third party administrator
Actuary
Maturity benefit is equal to Sum assured plus reversionary bonus minus ?
Claim within 1st anniversary
Claim within 1st calendar year
Claim befor the valuation date
2
660
661 Claim after the valuation date
3
662 Under daily hospitalisation cash benefit scheme the amount payable is increased due to what reason
Change in hospital
X and Y are married, they are planning for estate planning, which life stage do they belong to
Young married with single income no kids
Special consultant charges
Admission to ICU
4
663 Retirement
Childhood
Pre retirement
4
664 Premium amount and term is mentioned in
Preamble
Endorsement
Terms and conditions
Operative clause
665
Nikhil was in the process of closing a unit linked plan sale and the customer put a query which Nikhil does not know. What should Nikhil do?
Decline to act for the client
Direct him to the product booklet
Ask his Supervisor and clarify
Ask the client to put the query in writing
3
666
A gave an offer to B and B made changes to the same and returned it to A. It will be called
modified acceptance
Counter offer
Rectified offer
Rectified Acceptance
2
667
If there is no agreement or settlement and the recommendation is also not acceptable to the complainant, in this case the Ombudsman will grant an award
If it is acceptable to the complainant
if it is acceptable to the insurer
Extensive documentation
Due to the category of customer
668 Insurance addresses the needs of people with risk of living too long by..
669
While on sales of an Insurance plan Mr…. Had to show his license
if the complainant decides if the insurer decides to proceed legally to proceed legally
1
Restricting the max age at entry
Extensive underwriting at inception
Retirement and pension plans
4
the customer demanded
Due to the profile of the customer
NA
2
Learning Objective
Explanation for correct answer
Remark
Actuaries
Works on statistical data to arrive on mortality , premium table etc
Pg :27
Constituents of Insurance Market
NGO spread Awareness as well as In rural on deeper Penetration through Micro Insurance
Pg :27
History of Insurance
On recommendation of Mahlotra Committee , Under Joint venture , the foreign player can not have more than 26% stake
Pg :24
Insurance Industry
Micro Insurance is for Low Income Group . Product ranges from 5K to 50 K .Premium is as low as Rs 15 and can be collected weekly
Pg 24
Insurance Organizations and Roles
Reinsurance company is the Insurer for the Insurance Company
Pg :26
Micro Insurance
Micro Insurance guidelines was issued in 2005 by IRDA . Minimum SA is Rs 5000 & Max is Rs 50,000
Pg :25
Types of Insurance Organization
Reinsurance company is the Insurer for the Insurance Company
Pg :26
Types of Insurance Organization
A re insurance company is the Insurer for Insurance company
Pg :26
Agent
Agent can receive maximum up to 35% Commission in first year . Maximum commission in ten years horizon cannot be more than 40.%.
Pg :201
Agent
different products have different commission . Maximum Commission payable in First Year cannot exceed 35%
Pg :202
Agent role & responsibility
Sec 42 of Insurance act 1938 defines licensing procedure for agents .Agents should disclose their commission to the customer on demand and yet not give any rebate
Pg :202
Agents Upfront disclosure Methods
As per IRDA regulations , agents are supposed to disclose their COMMISSION when asked by the customer . However Rebates are prohibited
Pg:102
Churning & Product switching
Repeatedly encouraging clients to switch policies / Investments from one another is called churning
Pg :204
Duties & Responsibilities of agents
Agent is an intermediary between Insurer and the Client
Pg :200
Persist ency
Repeatedly encouraging customers to switch policies or investment from one to another is called Churning
Pg 204 : D4
Persist ency
Higher Persistency helps Insurer to get Higher revenue thereby increasing profitability
Pg :206
Persist ency
Higher Persistency helps Insurer to get Higher revenue thereby increasing profitability
Pg :206
Claims
According to IRDA Regulation 2002 , a claim under a life insurance policy will have to be paid or be disputed with giving relevant information within 30 days from the date of receipt of all necessary documents & clarifications
Pg :219
Claims
Sec 107 & 108 of indian evidence act 1872 deals with presumption of death , Waiting period of 7 years is seen in case of person missing
Pg :221
Claims
As per IRDA Regulations , when there is a delay by the insurer for settling of a claim , then they need to pay 2% more than the financial years saving account rate of interest
Pg :219
Claims
IRDA Guidelines on claim settlement instruct the insurer to complete any additional documents /information collection not in a piece meal basis within 15 days from the time of receiving the claim intimation
Pg :219
Valid Claims
Suicide clause exclude claim settlements if it happens within One year of the policy commencement
Pg :217
Code of conduct
Sec 41 (1) of insurance act 1938 prohibits all agents to give rebates
Pg :231
Grievance cells
District Court upto 20 L
Pg :238
Insurance act 1938
Sec40(1) of Insurance act 1938 prohibits agents from giving rebates
Pg 231
IRDA 1999
IRDA 1999 , was passed in parliament establishing it as a corporate Body
Pg :233
IRDA Regulations on Advertisement and Disclosures
IRDA regulations on advertisements include all printed and published materials from Insurer as well as Agents
Pg 237
KYC
Pg :235
MWPA
Beneficiaries under MWPA can be Wife , Children , Wife & Children , Adopted Child
Pg :236
Actuaries
IAI (Institute of actuaries in India ). Actuary is an expert who applies statistical & mathematical methods to asses risk and calculate premium tables
Pg :249
Agent Licensing
For License , a person should be Major , Of sound mind , graduate , no criminal records ,attended training , passed III exam
Pg :251
Insurance Regulation Bodies
Life Insurance council was constituted under Sec 64 of Insurance ACT 1938. Its the face of Life Insurance Industry
Pg :248
Key regulatory Body
NAI , Pune , was set up by Govt in 1980 with support from LI Council , GI council & 4 psu GI. Main Objective is to design , implement & operate on Insurance Training
Pg :249
Power of Central Govt over IRDA
Power of Govt to supersede IRDA is unable to discharge its Function or duties
Pg :246
Governing Body of Insurance Council
Integrated Grievance management system (IGMS) also makes the complaints to be regsitered through E mail –
[email protected] or Toll free number 155255
Pg :271
Governing Body of Insurance Council
Integrated Grievance management system (IGMS) also makes the complaints to be regsitered through E mail –
[email protected] or Toll free number 155255
Pg :268
Grievance Redress Cell of IRDA
Toll Free Number :155255 & Email
Pg:268
Ombudsman
Ombudsman role is to resolve complaints related to claims , disputes with regard to premium / policy, non issue policy documents , all in a cost effective manner
Pg :265
Ombudsman
Ombudsman role is to resolve complaints related to claims , disputes with regard to premium / policy, non issue policy documents , all in a cost effective manner
Pg:268
Ethics & Code of Conduct
Under IRDA regulations , an agent should carry is license all the time and on demand , should show it to the customers
Pg :284
Ethics & Code of Conduct
The role & responsibility of the agent is important to have a good relation with the customers
Pg :279
Peril & Hazard
Peril refers to a specific event which might cause a Loss /Damage .A hazard is a condition that may Increase the chance of perils to happen
Pg:41
Types of Risk
The types of risk that could be insured against are , financial risk , pure Risk & Particular risk
Pg :42
Insurable Interest
Creditor has Insurable Interest on the Life of Debtor to the extend of the MONEY lent to the debtor
Pg :56
Insurance Contracts
Person entering contract should be competent enough . A person is competent when he is a Major ( above 18 years ) , sound mind ,not disqualified
Pg :53
Utmost Good Faith
The proposer knows all the material facts about himself and has to disclose all information voluntarily at the time of completing the proposal form and submitting the documents
Pg :57
Assignment
Sec 38 of Insurance Act 1938 Defines Assignment and its types
Pg:79
Insurance Documents
AGE is a factor for determining the Risk Profile of the Proposer , thus allowing the underwriters to calculate the premium required for the plan
Pg :69
Insurance Documents
FPR is an Important document which is also an evidence that Risk has begun
Pg :70
Insurance Documents
The operative clause lays down the Mutual obligation of the parties .
Pg :71
Key Documents
The proposal form and the proposer's Signature is the basis of the contract .
Pg :68
Key Documents
Age proof are standard and non standard
Pg :69
Key Insurance Documents
The proposal form and the signature of the proposer will form the basis of Insurance contract .
Pg 68
Key Insurance Documents
Policy Information statement includes :facility available for frequency and method of premium payment ,contact for service and inquiry related to policy ,Ombudsman location and contact
Pg :72
Key terminologies
The person seeking insurance is a Proposer . Proposer & Life assured could be the same or different
Pg 66
Lapse
A grace period normaly is of One month , not more than 30 days for YEARLY , HALF , Qtrly mode of premium payment .
Pg :74
Loans & Foreclosure
loan is given as a certain %age of Surrender value
Pg :79
Nomination
An appointee has to be appointed in case the Nominee is a Minor
Pg :74
Nomination
Any number of nominations can be attested on the policy . However No % age of share can be mentioned per nominee
Pg :78
Nomination & Assignments
No specific Shares in Multiple Nominations however can be done for successive nominations
Pg:78
Paid Up & Lapse
Lapsed policy will be made Paid Up and the SA reduced to an amount based on Premiums Paid
Pg :75
Paid Up policies
Policy which have A value , ie endowment and having saving component can be made paid up in case it lapses during the term after completion of 3 policy years
Pg :75
Surrender value
Also known as Cash Value . The Option for the policy holder to close the Plan during the Term .due to either Personal Financial problems or policy being mis sold and benefits not up to the clients needs
Pg :76
Human Life Value
HLV assumes if the event happens Today how much money one should have in the BANK to get the monthly expenses of the family to continue .
Pg 95
Premium Calculations
Adjustment to take into account of Expenses & profits of the insurer is called loading
Pg :100
Primary Underwriter
Agent Confidentiality Report is mandatory as It helps the Underwriters to have additional Information about the Proposer as the agent is in better position having met / known the client
Pg :102
Types of Bonus
Persist ency or terminal bonus is given at maturity of the policy
Pg :101
Types of Hazards
Moral Hazard relates to attitude or Intentions & conduct
Pg :91
Underwiting
Physical Hazard refers to the physical characteristic of the risk associated with the proposer
Pg :91
Underwiting
Agents are in direct contact with the Customer and have an important role to play in assessing the risk
Pg :102
Underwiting
Lien is a clause where the underwriter feels the risk will wear out in time
Pg :95
Underwriting
LIENS are clauses which Underwriters apply to the proposal where they feel the RISK will wear off after certain time duration l
Pg :95
Underwriting
Special reports from senior officials or agents are taken by underwriters sometimes if the risk on the policy solicited is high . Informations on Occupation, habits , lifestyle , income would be asked through this
Pg :90
Underwriting
Under Physical hazard , the Underwriter looks into medical history of the family of the proposer to asses the risk due to heredity
Pg :91
Insurance products
Term product is the simplest and the cheapest Insurance plan which gives Life cover
Pg :112
Insurance Products
In money back plan , payouts are given at fixed intervals called survival benefits . Usually 25% of SA is paid in equal interval of the term
Pg :117
Micro Insurance
Micro Insurance is for Low Income Group . Product ranges from 5K to 50 K
Pg:113
Protection Needs
Term Insurance will help in protecting the future loss of Income
Pg :109
Tax & Inflation
The Proceeds of Life Insurance are exempted under Sec 10 (10D)
Pg :118
Tax & Inflation
Under Sec 80 C , the max Amount under Tax deduction through Life Insurance premium will be Rs 1 Lk
Pg 118
Tax Implications
Under Sec 80 C , the maximum deductible Income from tax in a given year is Rs 1 Lk .
Pg :118
Tax Implications
The premium should be 20% or less than 20% of the SA to avail the tax benefit of Sec 10 10 d
Pg :118
Types of Plans
Partial Survival Benefits are paid at fixed intervals without any formalities to be completed by the Policyholders
Pg :117
Discuss
Ulip
Ulip offers protection with Investment and flexibilities to manage the Investment to the customers
Pg :116
Benefits of Professional Advise
A agent is a Professional and gives Need based Solutions
Pg :128
Emergency funds
Investment for emergency funds should be invested in saving products that offer easy liquidity and can be converted to Cash without much loss in value
Pg: 138
Implication of Interest on saving products
Increase in Interest rates will bring the stock price down
Pg :137
Income Tax 1961
To avail Sec 80 C of IT 1961 , the FD duration has to be 5 or 10 Years
Pg 136
Prioritizing Saving Needs
Care should taken that the EMI do not exceed 40% of monthly take home salary
Pg :139
Saving Products
Investment is made in Lump Sum and the Interest rate is Fixed at the time of Inception
Pg 135
Saving Products
1 unit in ETF represents One Gram or Half Gram of Gold
Pg :135
Saving Products
Three types of deposits :cumulative , recurring & traditional . Rate of interest varies .
Pg :133
Saving Products
NSC . Kisan Vikas Patra , PPF etc can be brought from Post office
Pg 135
Saving Products
In cumulative Deposits , Interest is calculated quarterly
Pg :113
Tax & Inflation
Life Insurance gives 80C Tax Benefit on Premium and 10 10 D on Claims
Pg 136
Tax Implications
Under Sec 80 C , the maximum deductible Income from tax in a given year is Rs 1 Lk .
Pg :136
Types of Saving Products
Good returns , Portfolio diversification ,hedging against Inflation are the other reasons for ETF
Pg :135
Types of Saving Products
Debt instruments caters to Saving and secure income
Pg :138
Annuities
Open market option allows the Annuitant to get the best scenario by taking his/ her annuity from other companies
Pg :155
Annuities
Most of the people choose Monthly Mode though
Pg:157
Annuities
As epr IRDA regulation post 1st Sept 2010 , The minimum Guaranteed returns in a pension plan has to be 4.5% . The insurer will have to invest very prudently to get this %age return
Pg :157
Annuities
Open Market Option allows the Annuitant to look at the best Rates in the market from other Insurance companies before taking the pension payouts
Pg :156
Annuities
One third of the Corpus can be withdrawn on vesting date Tax Free
Pg :156
Annuities
Commutation allows the Annuitant to withdraw 1/3rd of the corpus amount Tax Free at vesting date
Pg :156
Health plans
Most Insurer have waiting Period in the health Plans for covering any pre existing illnesses
Pg:151
Health plans
No claim bonus is a feature of health plans in which if no claims are made in a policy year , the insurer will give some discount on the next renewal premium
Pg :151
Health Plans
Family members can be covered under One Umbrella . However some Insurance Companies will have specified the number of members one can take under Family floater
Pg :150
Health products
Fixed amount is paid on hospitalization on a daily basis
Pg :150
Pension Plans
Under Sec 10 10 A , Commutation , you can withdraw 1/3rd of the Corpus Tax Free
Pg :156
Riders
Lump Sum SA of the rider benefit is paid on diagnosis of the critical illness as per the Rider Feature and subsequent claims under it will not be paid as the rider terminates
Pg :154
Riders
Benefits arising of the Riders cannot exceed the Base Plan SA
Pg :155
Riders
According to IRDA regulations Premium of all riders taken together should not exceed 30% of the base policy premium
Pg :155
Tax Implications
Under Commutation , person can take 1/3rd of the corpus amount Tax Free at vesting date under Sec 10 10 a
Pg 157 :B6
Types of Annuity Payment
Pension Payout is fixed for certain period guaranteed like 5,10,15,20 and then till Life of the annuitant
Pg:156
factors affecting Life stages
Public sector makes provision for PPF , health
Pg:172
Life stages
Protection of Asset is the most factor
Pg :170
Life stages
The Income earning capacity keeps going up there by allowing the disposable income to increase as the time goes.
Pg :164
Life stages
Single Income family , Insurance protection is very important
Pg :168
Life stages
The clinet needs @ Retirement age is Investment to get regular income , estate planning and revisiting the health insurance plans to see their adequacies
Pg :170
Life stages
Along with Life cover , child education planning is important stage
Pg :168
Life stages of Clients
Children normally do not have their own Income source
Pg :167
Fact finding
The Electronic benefit Illustration gives all information of Returns , Charges
Pg:194
Fact Finding
fact finding process helps in identifying the clients financial needs, to quantify them & to prioritize them ,
Pg :184
Fact finding
Fact finding as a process is to identify the clients needs , quantify them and prioritize them
Pg :184
Financial Planning objective
The grading is in 0 -5 rating , O denotes No risk taking ability and 5 denotes High risk taking ability of the client
Pg 190
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