Question Answer FINAL

Sr. No.

Chapter No

1 1 1 2

Question Sanjeev is an insurance expert who has rich experience in determining premium levels for product, what is his profile like The Non Government organizations(NGO) helps the insurance industry immensely in

Ans Option 1

Ans Option 2

Ans Option 3

Ans Option 4

Correct Ans / option

Learning Objective

Explation for correct answer

Page No.

an actuary

loss adjuster

risk mager

underwriter

1

Actuaries

Works on statistical data to arrive on mortality , premium table etc

Pg :27

Promotiol activities

Drafting new regulations

Linking buyers and sellers

Linking third party administrators

3

NGO

12%

25%

40%

26%

4

FDI

Government Employees

people living in Metro cities

2

Micro Insurance

Investment by foreign direct investors in to Insurance co's is restricted to

1

Which market does the Micro Insurance Concentrate on ?

1

What facility do the insurer use to cover Risk beyond their Limits ?

Re Insurance

Banca assurance

NGO

RBI

1

Reinsurance

1

what is the max level under which micro insurance can be done

5000

25000

50000

1 lac

3

Micro Insurance

1

Who is the customer of a Re insurer

High Networth Individual

Insurance Companies

Licenced Insurance Agents

Non Government Organisation

2

Reinsurance

Reinsurance company is the Insurer for the Insurance Company

Pg :26

2

Reinsurance

A re insurance company is the Insurer for Insurance company

Pg :26

People with large People with Low families Income

4

6

7 1 8 9 10

1 1

1 11

1 12 1 13 1 14 1 15 1 16 1 17 1 18

Pg :27

1 3

5

NGO spread Awareness as well as In rural on deeper Penetration through Micro Insurance On recommendation of Mahlotra Committee , Under Joint venture , the foreign player can not have more than 26% stake 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 Reinsurance company is the Insurer for the Insurance Company Micro Insurance guidelines was issued in 2005 by IRDA . Minimum SA is Rs 5000 & Max is Rs 50,000

Insurance company transfers the Reinsurance TPAs Actuaries insurance which cannot bear by them Bancassurance to What is the main objective of taking Tax benefit Savings Investment Protection the life insurance policy What is the maximum sum assured 10000 25000 50000 100000 under a micro insurance Varun wishes to pursue a career in insurance and wishes to be in a Claim department which calculates the level Actuary Underwriter Accounts Department of premium. In which department should he join? Insurance broker The client Insurer represent the represent the represent both Broker only According to Insurance Brokers client and the broker and the client and service the Association of India, what is the most insurer insurer broker client appropriate relationship between remunerate the remunerate the remuneration Insurer and Broker? broker broker If a client needs Mediclaim to cover health insurance which insurer he Non life insurer Life Insurance Reinsurer Any Insurer needs to apply. Who work only Who works for Who work for Intermediaries for insurance their own customers Insurance agents are company interest. Any assets, which are no longer Cashed in for suitable or are earning fewer returns Reviewed investment into than expected, should be other assets If a client wants to compare between all fincial products then the best Individual agent Corporate agent Bank Broker person he can approach is If the customer wants to seek information about all products, then Agent Broker NGO Bank he can avail the services of To identify suitable products their main features and their tax treatments Agent Proposer Policy Holder Insured person is the role of:

Remarks

Pg :24

Pg 24

Pg :26

Pg :25

4 3

1

1

1

3

2

4

1

1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

1 The main purpose of buying an insurance policy normally is

19 1 20 1 21

The basic elements of life insurance are: Transactions of sale of life insurance products to the insurable clients are viewed in the Insurance market mostly as

Accident benefit Pension and and riders. monthly income. Sales transactions

Relationship transactions 2. Product – Based Selling

1

A Professiol insurance market carries…..

1. Need – Based Selling

1

Insurance Market divided into

1. Endowment and Money Back Insurance

1

What is Bancassurance?

1. Giving insurance policies to Banks.

1

Which of the following do not include the channel of indirect marketing?

1. individual agents

1

The business of Insurance is connected with................

22

23

24

25

27 1 28 1 29

2. bancassurance

1. physical 2. economic values of assets values of assets

1

Insurance business is classified into 1. Life, Non –life, 2. Life, Non Life, three main types: Micro Insurance. Miscellaneous

2 34 2

1. Insurance brokers.

2. Bancassurance.

2

2

2

3. metaphysical values of assets

4. market values of assets

2

3. Individual agents. 3. Life, Non life, Reinsurance.

Discuss

1

3

Discuss

3

2

3

2

4. Internet.

4

4.Life, Health, Micro Insurance

3

lung cancer is smoking is peril Is occupatiol peril and and lung cancer Death is certain hazard smoking is moral is hazard hazard Pure & The type of risk that can be insured Non Fincial Speculative Risk Pure Risk Speculative against is Risk risk The premium All similar risks Premium is Contribution of collected & are pooled pool to make insurance deposited in a together claims company Pooling of risk in insurance means pool lung cancer and smoking .

3

4. through internet

4. D. An 2. B.A legal 3. C.A legal 1. A legal person authorized person to act on person to act to act on behalf agent to act on behalf of the on behalf of the of the re-insurer behalf of the insurer contract legal company

E-sales refers to sales of insurance products through

3

3. insurance brokers

2. death is uncertain

1

33

35

1. death is certain

1

2

3. Commission 4. Company – – Based Selling Based Selling.

3. Government 4. Health and and Private Saving Insurance Insurance Markets Markets 2. Selling 3. Giving insurance guarantee to 4. None of the above. policies through policies by Banks. Banks.

Agent who is a licensed intermediary is actually is ?

32

Assured transactions

3. the timing of 4. Death is the death is solution. uncertain 4. At the time The timing of death is uncertain, so 1. At the time of 2. At an early 3. Anytime in when Advisor when one should take life insurance? uncertainty age life takes the decision 1. The life of the 2. The risk 3. The fincial Insurance Protects which of the 4. The life of person paying retained person goal of the following? the nominee compensation 's family insured Human beings need life insurance because..................

30 31

Monetary transactions

2. Life and General (nonlife) Insurance

26 1

Death cover and maturity benefit.

to obtain loan as when required to meet fincial obligations Interest yield and variable income

to develop the to obtain Income for protection of habit of savings Tax benefits fincial security

1

2

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 The types of risk that could be insured Types of Risk against are , fincial risk , pure Risk & Particular risk

Peril & Hazard

Pg:41

Pg :42

2

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

36

2 2

37 38

2 2

39

2

40 2 41

2

42 2 43 44 45

2 2

2 46 2 47

Pure risk is classified under The consequences of these risks which will affect specific individuals or local communities in ture is called as Law of Large number helps the insures to A person with a crimil background due to Fincial fraud would come under which hazard

Speculative risk

Fincial risk

Insurable risk

4

Pure risk

Fincial risk

Particular risk

Physical hazard

3

Calculate the premium

Increase the profitability

Ascertain the death ratio

Declare the bonus

3

Physical

Moral

Occupation

2

Perils are Perils are risks Perils are Perils are factors which that medical factors factors which could influence policyholders will which influence affect the risk an insured die before a the risk of dying being insured event occurring specified date and hazards are and hazards and hazards and hazards are lifestyle activities are the size of are the actual factors which How are perils and hazards normally which influence could influence the risk being events which insured. will trigger a distinguished under term insurance the risk of dying. that risk. payout policies? Law of large numbers is worked out by which of the following? With pooling of risks an insurance company pools the premium collected from several individuals to insure them against similar risks. At what circumstances will the insurance companies pool the risk of a life insurance and health insurance together? In life insurance industry which mechanism operates so as to eble the individuals to reduce the impact of risks Law of large numbers help in calculating the Which is the best option to mage risk? Viy 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 ______ Insurance is a mechanism through which risk of an individual can normally be

2

48

Economic risk

In the context of Insurance terminology, how the meaning of ‘Peril’, ‘Risk’ and ‘Hazard’ is best described?

With utmost good faith

2

Pooling of risk

Maintaining insurable interest

Under no circumstances

Under conditions As directed by As per of the reinsurer actuary company policy

1

Randomness

1

Pooling of risk

Transfer of risk

Prevention of risk

Sharing of risk

2

severity of risk

physical hazard

moral hazard

Probability of risk

1

Retain

Transfer

Avoid

None

2

Transfer

Control

Retaining

Avoidance

3

transferred

prevented

avoided

reduced

1

Peril is the event, Risk is Peril is the the likely Peril is the event, Risk is Peril, Risk and occurrence of event, Risk is the the cause of Hazard are of loss of event and event and the the event and the same the Hazard Hazard is the Hazard is an meaning increases the wrongful even event of chances of dangerous ture happening of the event.

4

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

2

Pooling of risks is one of the fundamental principles of insurance where the Insurers pool the premium collected from

all types of fincial risks

the homogeneous risks

2

Pooling of insurance applies to

1. all types insurance

2. All types of insurance except Motor insurance

3. Only life insurance

2

The “Risk” contains….

2. Level

3. Uncertainty

49

50 51 52 53

2 2

2 54

Grouping the similar risks by 2. Risk Grading Insurance Company is called as…. The function of Insurance works 1. Risk Transfer 2. Risk avoid on….. Mr. Mahesh is a software engineer. He has taken a term insurance for Rs. 1. Risk retention 2. Risk transfer 30,000,00/- for 30 years. This is an example for-----------------

1

3. Risk Assessment 3. Risk retention.

4. All of the above. 4. Pooling of Risk 4. All of the above.

3. Risk avoidance

4. Risk tolerance

2

4 4 1

Which of the following can be an example of moral hazard?

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

2

Life insurance the risk is determined on the basis of ..........

1. future data

2. past data

3. statistical data

4. mathematical data

2

2

Which one of the following is possible in retaining the risk?

56

57

2 58 2

2 60

2 61 2 62

3.Is possible by 1. Retaining the 2. Not possible 4.Is possible by transferring risk ownership in the as life has many Re-insuring to the policy policy risks. oneself holder

On 6th August there was a typhoon. 1. Under the 2. Under the Mr.Augustin who had insurance died category of Pure category of peril in typhoon. Now how will the risk risk insurance company will categories this particular risk ? Life insurance company determine 1. Future 2. Claim the level of risk based on expenses. experiences. Ram works in a Fire cracker factory. He stocks the cracker in his house. He runs which type of risk.

1. Speculative.

2. Particular.

2

3. Under the category of particular risk

4. Under the category of Risk Transfer

1

3. Present expenses.

4. Targeted bonus rates.

2

3. Fincial.

4. Fundamental.

3

4. Using the same pool for paying claims of life insurance.

4

4. Sharing of Risk

2

1. Using the 3. Using the 2. Using different same pool for same pool for pool for paying In Insurance terms, pooling of risk is paying claims of paying claims claims of life car & life of life & house insurance. insurance. insurance. An Insurance company pools the 2. Pooling of 3. Insuraable premium collected from several 1. Pure Risk Risk Risk Individual to insure them against similar risk is called:

2

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. Fincial Risk.

4. Insurable Risk

1

2

which of the following refres to specific event which might cause a loss ...

1. Peril

2. Hazard

3. Physical hazards

4. Uncertinity

2

63

64

3:1 65

4. Only Non-life insurance

2

2 55

59

1. Peril and Hazard 1. Grouping of Risk

the the speculative heterogeneous risks risks

Harish takes a life insurance policy for Ramesh Ramesh. Which of the following declares all his statement best describes the principle liabilities of Insurable Interest.

Ramesh is elder than Harish

Harish suffers Ramesh owes fincial loss money form incase of death Harish of Ramesh

4

Insurable Interest

Creditor has Insurable Interest on the Life of Debtor to the extend of the MONEY lent to the debtor

Pg :56

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

3:1

what is the min age to enter into the contract of insurance

16

18

3:1

In a whole life plan - The policyholider's responsibility to give disclosure

at the beginning of the contract

through out the contract

20

21

Revival stage

beginning of renewal

2

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

1

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

66

67

3:1 Principle of utmost good faith will operate in existing policy

68 3:1 69 3:1 70 71

3:1

What amount of insurable interest does an individual have in his own life

3:1

With reference to the principle of indemnity a life insurance policy is a. If Insurable interest does not exists at the time of inception of the life insurance policy then, life insurance contract is If a contract is signed by a 15 years old boy, this contract will be 1.     If the employer has insurable  interest in the life of an employee, what kind of policy is this?

73 3:1 74 3:1 3:1 76 3:1 77 3:1 78

3:1 79

Consideration

Legality of an object

At inception of policy

Not needed

employeeemployer

Husband-wife

20,000

50,000

Insurance contract.

Indemnity contract.

Voidable

Null and void A.    Surety  insurance

The concept of indemnity is based on Insuring existing the key principle that policyholders losses. should be prevented from Employee has insurable interest in the life of their employer to the extent of 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

3:1

An insurer can invoke indisputability clause in case of death only in

3:1

A proposer shows his age lesser than his actual age. This will be termed as

80

81

In case of life insurance, Insurable interest must exist Group Insurance can be taken in following relationship

3:1 72

75

Both the parties to a contract must agree and understand the same thing and in the same sense which is called

If the policy has Every time lapsed and it has premium is paid to be revived

If the insured If the insured person falls person changes sick and is his job admitted to hospital

2

Consensus ad idem

3

Acceptance

At the time of Any time during claim the contract society members

1

Unlimited

4

Value contract.

Major life contract

3

Invalid

Valid

Null & voidable

2

Invalid

Voidable

Valid

2

D.    Debtor  Insurance

2

Profiting from insurance.

4

B.    Keyman  Insurance Making false insurance claims.

family members Up to the sum assured taken in the plan

1

C.     Partnership Insurance Paying excessively for insurance cover.

Yearly Salary

Monthly Salary

Probation Period

Till Gratuity

2

Capacity to Contract

Legality of object

Capability of performance

Offer and acceptance

2

Non payment of due premium

Breach of duty of disclosure of material facts

2

Breach of utmost good faith

Breach of trust

1

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

3:1 82 83

3:1

3:1 84 3:1 85

3:1

 Mr. Mehra wants to insure his wife.  Previously his proposal was rejected Fraudulent Innocent by another company, but this time he Non-disclosure Concealment of misrepresentati misrepresentati submits the proposal form without of material facts material facts on of material on of material showing this to a new company. This facts facts is   In which type of insurance Insurable Liability Motor Travel Marine Insurance Interest exists at the time of claim? Insurance Insurance Insurance Fincial Emotiol Proximity of blood relation relationship relationship relationship between the between the between the between the A proposal of life insurance is not Proposer and the Proposer and Proposer and Proposal and the accepted in the absence of Insurable Life assured the Life the Life Life assured interest which mainly depends on the assured assured Before the Principle of utmost good faith is contract is expected for max up to which stage concluded

A contract comes into existence when………

86

3:1

87 3:1 88 3:1 89

Mr. Kumar’s wife is suffering from blood cancer. Doctors lost their hope on her live. Mr. Kumar would like to 1. Anti Money take Life Insurance policy on wife’s Laundry me in order to get monitory benefit. Insurance company rejects this proposal on the grounds of……. Under this situation may leads to 1. Non disclosure breach of the duty of utmost good of material facts. faith. 1. Facts of The principle of utmost good faith is common not applicable to knowledge

2. One party 3. One party 4. One party makes an offer makes an offer makes an offer which the other where other which the other party put extra party gives party receives conditions. counter offer. the offer.

3. Capacity of 2. Legality of paying future object or purpose premiums.

3. Fraudulent 2. Concealment misrepresentati of a material fact on of facts. 3. Facts those 2. Facts of law are not material.

2

3

1

4. All of the above

2

4. All of the above.

4

4. All of the above.

4

Where do you not find insurable interest in the following options.........

1. surety-co surety

2. employeeemployer

3:1

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

2. Capacity to contract

3. Consensus ad idem

4. Offer and Acceptance in the contract

4

4. The insurable interest between the car and Jim is valid until Karan’s return

3

4. He had done an innocent misrepresentati on

2

91

3:1 92

3:1

93

3:1

Mr.Akash filled the proposal form but before submitting to the company he discussed with the agent that he is not 1. Consideration sure whether he can pay for 15 years in the contract . This attitude affects which part of the contract?

3. husband-wife 4. brother-sister

3. The Mr.Karan who has to go to abroad for 1. The insurable 2. The insurable insurable 6 months on an official work decides interest between interest between interest to leave his car with his friend Mr. the car and jim is the car and between the Jim. What will be the validity of the valid for 6 karan is valid for car and karan insurable interest in this case ? months 6 months is valid until he owns it Mr. Josh was filling the proposal form 2. He has 3. He has 1. He has but as his mother was sitting beside breached the breached the breached the him, even though he drinks and company by company by smokes he ticked “NO” in smoking & non-disclosure of concealing the fraudulent the fact drinking column of proposal form. facts information This indicates ?

Discuss

1

3:1 90

94

1. One party makes an offer which the other party accepts unconditiolly.

2

4

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

3:1

A contract exists between insurer and proposer when

95

3:1

96

3:1

97 98

3:1

3:1 99

all types insurance Pooling of insurance applies to

100

3:1 101 3:2

3:2

3. A policy 2. A policy document has document has been received been stamped by by the insurer. policyholder.

4. An insurer has made another proposal.

Rakesh purchased a life insurance policy. While writing a proposal form he hide that he practices 1. Innocent 2. Fraudulent 3. 4. Nonmountaineering. Sadly he died in an misrepresentatio misrepresentatio Concealment. Disclosure. accident while climbing Mount n. n. Everest. The insurers rejected the claim.What is the reason for rejection? 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 1. Indemnity 2. Value 3. Deemed 4. Rolling hospital bill ran to ` 50,000. He contract. contract. contract. contract. 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. Value 3. Commercial Life Insurance also known as: 2. Indemnity 4. Speculative Contract. Contract 4. A joint life 1. Plan offer policy may insurance 2. This plan is 3. Each life will Which option is not correct with cover a partner coverage for two ideal for brother be underwritten regard to joint life insurance plan? in business person in one & sister. separately. under one policy policy.

3:1

102

1. A proposal has been accepted by insurer.

All types of insurance except Motor insurance

15 days from the 20 days from the The proposer can withdraw from the date of receipt of date of receipt of contract, if they disagree with the the policy the policy terms and conditions of the Policy, document document within a ‘free look-in period’ of Term Types of assignment Absolute assignment why does an insurer insist on age proof document . To assess

Only life insurance

Only Non-life insurance

25 days from the date of receipt of the policy document

30 days from the date of receipt of the policy document Absolute & Conditiol

Conditiol

1

4

1

1

2

1

1

4

Assignment

104 105

3:2

3:2 106

Mr A submitted the proposal form . When will the risk begins for the company? The obligation of the insurer for the whole life policy is mentioned in 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

Pg:79

SA

Risk assessment

Identity verification

Fincial assessment

2

Insurance Documents

Submission of proposal form

FPR issued

Policy issued

Agent accepts money

2

Insurance Documents

FPR is an Important document which is also an evidence that Risk has begun

Pg :70

Operative Clause

Preamble

Proviso

Endorsement

1

Insurance Documents

The operative clause lays down the Mutual obligation of the parties .

Pg :71

Left thumb Impressionof policy asvath thump Asvath along document need impression Only with a to be registered declaration of his friend

4

Key Documents

The proposal form and the proposer's Sigture is the basis of the contract .

Pg :68

103 3:2

Sec 38 of Insurance Act 1938 Defines Assignment and its types AGE is a factor for determining the Risk Profile of the Proposer , thus allowing the underwriters to calculate the premium required for the plan

Asvath photograph

Pg :69

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

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

3:2

For Logging a Policy , a person gives Baptism CERTIFICATE & Ration Card . What is this ?

3:2

To be a valid contract ,the declaration Policy Document is necessary in which document

proposal form

FPR

RPR

2

3:2

Mr. ABC buying Term insurance policy, insurer should mention operative clause Ombudsman address in which part of policy document?

Preamble

Information statement

schedule

3

107

108

109

113

A grace period normaly is of One month , not more than 30 days for YEARLY , HALF , Qtrly mode of premium payment .

Pg :74

Proposer

Nominee

Appointee

Trust

1

3:2

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

Lapse

3:2

Loan is available for a policy in which there is a feature of

Fund switch

Savings Element

3:2

Appointee's role

Sigture on the proposal

Medical exams

3:2

how many nominees can be attached to a term insurance policy

one

two

3:2

if a policy has two nominee mentioned what should be the Min allocation

3:2

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

3:2

A life insurance policy can only be made paid up if what particular policy feature exists?

Indexing contribution.

115

116

Age proof was substantially wrong

2

Loans & Foreclosure

when Nominee is Minor

4

Nomition

three

many

4

Nomition

Any number of nomitions can be attested on the policy . However No % age of share can be mentioned per nominee

Pg :78

the first nominee should have more than second

No such conditions

4

Nomition & Assignments

No specific Shares in Multiple Nomitions however can be done for successive nomitions

Pg:78

Policy has become paid up

Its a Ulip Plan

3

Paid Up & Lapse

Lapsed policy will be made Paid Up and the SA reduced to an amount based on Premiums Paid

Pg :75

4

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 Persol Fincial problems or policy being mis sold and benefits not up to the clients needs

Pg :76

Nomition facility. Rider benefits.

advisor induced no commission

Has Fincial Problems

4

117

3:2

Reasons for surrender of the policy

SA

3:2

If a life insurance policy is issued with a lien, it will be mention in

Proviso

Schedule

Terms & conditions

Endorsement

2

Total paid premium

Sum Assured

Surrender value

Paid up value

3

Provisio

Endorsements

Operative clause

Terms and Conditions

4

118 119

3:2 120

3:2 121

Available Loan amount under a life Insurance policy is generally based on 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?

Pg 66

Surrender

Savings element.

loan is given as a certain %age of Surrender value An appointee has to be appointed in case the Nominee is a Minor

Pg 68

Partial withdrawal insurable interest

114 Each nominee to Each Nominee to get Min 10% get Min 25%

Pg :69

Pg :72

Zaib takes insurance in the life of Jasmeet. Zaib will be called as

111

Age proof are standard and non standard

The proposal form and the sigture of the Key Insurance proposer will form the basis of Insurance Documents contract . Policy Information statement includes :facility available for frequency and Key Insurance method of premium payment ,contact for Documents service and inquiry related to policy ,Ombudsman location and contact The person seeking insurance is a Key Proposer . Proposer & Life assured could terminologies be the same or different

3:2 110

112

Key Documents

Pg :79 Pg :74

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

3:2

122 3:2 123 124

3:2 3:2

125

3:2 126

3:2 127

3:2 128 3:2 129

3:2

130 3:2 131 3:2 132

3:2 133

3:2

134

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?

213333 & 273333

213333 & 229333

229333 & 273333

Authorized Whose sigture is required on Agent Policy holder officials of attestation of the policy? insurer The mutual obligation of the parties is Operative Heading Proviso laid down in? Clause The Insurance companies allow modification/alteration of the origil Surrender Paid Up Endorsement policy documents through... In case the customer has stopped Reinstatement making payment for the premium of Premium cheque Fee and Proof of Only health the policy. What are the two most and health continuing good certificate important things required in order to declaration health reinstate the policy? A and B start their policies on the nd same date and surrender on 22 A’s health was A’s term was B’s term was anniversary of the policy. But A’s better than B longer than B longer than A surrender value is higher than B. the reason was ; Which from the following would help best the underwriter to know whether the proposer had applied previously and his application was rejected

Medical reports

Proposal form

229333 & 293333

1

Proposer

3

Attestation

1

Assignment

3

Premium cheque with arrears

1

Policy document

Can be done A simple through an application affidavit sworn would do. in He can’t take He can’t take He regularly He can surrender loan from loan from Mr. Anil has a money back policy and pays premium so whole life policy money back whole life a whole life policy. He is planning to he can take loan and can take but can avail policy but can take some loan from both the policies from both the loan from Money loan from avail loan from as he was regularly paying the policies back policy Whole life Money back premium. What is your suggestion? policy policy If more than one When does nomination get On assignment person is invalidated nomited If 5% bonus is given every year then for a SA of 1 lakh, what will be the 60000 75000 100000 5000 payout after 15 years in a simple revisiory bonus system? Vijay received his policy bond on 11th June, 2011. Due to some persol No, as 15 days Yes, as it is No, as 20 days Yes, as it is problems he has decided to cancel period is over within 1 year period is over within 3 months the policy on 8th July, 2011. Can he cancel or return the policy? Rohit, 17 years old, submitted a proposal for Endowment plan of Rs.1 lac to AB Insurance Co. In the absence of an essential ingredient of Capability of Capacity to Legality of object Offer a valid contract, the proposal was not performance contract accepted. Which factor caused the insurer for non-acceptance of the proposal? A policyholder wants to change the nomition after 5 years of the policy. What would happen

Change not allowed

Can be done through endorsement

3

Discuss

2

2

3

1

2

1

3

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

Policy is taken under joint life basis

3:2 135 3:2 136 3:2 137

3:2

Mr. Kumar is taken one life insurance 1. He can not do policy with ABC Company. But he is any thing, not satisfied with the policy benefits. because be What Mr. Kumar can do under this received the situation? policy bond.

138

3:2

140

2

4. All of the above.

4

3. He can send 2. He can file a back the policy complaint document to 4. Serve notice against insurance to insurance insurance company with company on company in in 15 days from policy benefits. court. policy receiving date.

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

3

3:2

Which of the following statement is not true in connection with nomition?

3:2

Which of the following statements in correct in connection with assignment?

3:2

Mr. Shanth has taken an endowment policy of 20 years. He has paid premium for 10 years and now the policy is in force. At this point of time can Shanth take loan?

3:2

Mrs.Shwetha has taken a loan from her policy. Later stage she neither paid back neither the loan nor she paid the premium for a very long time. What will happen to her policy?

142

143

3. an 1. an impression 2. an impression impression of of the left thumb of the left thumb the left thumb is taken and third is taken and the is sufficient and party has to advisor has to need not be attest it attest it attested

3

1

When an illiterate person wants to have a policy.....

141

144

4. Telephonic conversations.

4. A relative of the illiterate person has to sign on behalf of that illiterate person.

139

3:2

1

A nomition is not required if What is the main source for insurance 1. 3. Conducting 2. Proposal form. company to get information of Advertisements. interviews. proposer? What are the factors involved in 1. Number of 2. Number of 3. Sum calculating Surrender Value of the year’s premium premiums Assured Policy? paid. payable.

1. The life insured can nomite one or more than one person as nominees.

3. A person 4. The section 2. Nomition can having a policy 39 of the be done either at on the life of Insurance Act the time the another should 1938 speaks policy is bought make a about the or later. nomition. nomition. 4. Conditiol 3. Section 45 of 1. Assignee 2. The assignor assignment and the insurance cannot make need not be absolute act speaks fresh nomition in major at the time assignment are about the policy of assignment. one and the assignment. same. 2. Mr. Shanth can take loan which should be 3. There is no 1. Mr. Shanth will 4. loans are concept of loan certain not be granted allowed only in in insurance percentage of any loan term plans policy the surrender value of the policy. 1. Policy will be surrendered by the insurer

2. Policy will be 3. Policy will be 4. Policy will be surrendered by surrendered by surrendered by the nominee the company the heir

3

1

2

1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

Which of the following information does not appear in the First Premium Receipt?

3:2

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

145

146 3:2

Payment of premium and sum assured are laid down in

3:2

An insurance contract commences when

3:2

When is premium considered / deemed to be paid?

147

148

149

3:2 150

3:2 151

3:2

152

3:2

153

2. Date of 4. Date the last 3. Date the commencement premium will be policy matures of last premium paid

4. Converting the policy to whole Life

4. Schedule of policy document. 4. Policy 1. Quotation is 2. First Premium 3. Proposal Document is signed by Receipt is Form is signed. received by proposer. issued. policyholder. 4. When 1. When insured 2. When cheque 3. When the cheque is writes a cheque amount is cheque is posted/couriere in favor of deposited in deposited with d by the insurer. insurer account. insurer office. insure4.

1. Heading of policy document.

2. Proviso of policy.

3. Operative clause.

Ram Lal is an insurance policyholder. He has recently shifted his home from 1. Terms & 3. New Delhi to Noida. He wants the 2. Preamble. 4. Schedule. Condition. Endorsement. address to be changed. This change in policy document will be effective through? Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 1. Acquires 2. Contract 3. Moneys will 4. Acquires annual premiums but due to fincial surrender value. comes to an end. be forfeited. paid up value. crisis is uble to make future premium. His policy 3. Nomition is 4. Nomition 1. Nomition does made after 2. Nomition need not be not transfer the policy is issued How assignment distinguishes itself transfers the title informed but title while while from nomition? while assignment assignment assignment assignment is does not. needs to be does. done before it informe4. is issued. Manish took a loan from Pankaj of Rs.10 lac, Pankaj transferred his Insurance policy to Manish of Rs.10 1. Loan 2. Conditiol 3. Loan 4. Absoulte lac as a security with the agreement assignment Assignment Agreement Assignment Of when Loan is fully paid, policy title will be revert back to me of Manish is called:

3:2

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

3:2

Prab is not able to pay premium for continue his policy due to some Fincial 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

154

155

1. method and frequency of premium payment

3:2

3. Proviso Clause

2

2

3

2

2

3

4

1

2

4. Schedule of Policy

2

3. Deduct the underpaid premium from 4. Policy was Sum assured subject to lien. and payable on Maturity

1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

3:2

156 4 157 4 158

4

Ajay has bought an endowment with profit plan for 20 year .if he took a Loan after 5th of commencement of policy and died before 2 year of Maturity .what would be payable on maturity? While calculating Human life value (HLV) two components need to be kept in mind , the one is take home salary and other is Annual premium of insurance product is Rs. 32,000, 4% loading on Quarterly mode of payment What is the quarterly premium?

why ACR

1. only Sum assured

3. Sum assured plus vested 2.Sum Assured + bonus minus Bonus any outstanding loan/premium & Interest.

4. Paid up value only.

3

Bank Fixed deposit rate

discount rate

Estimated life expectancy

Estimated amount at retirement

1

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

7680

8000

8320

8500

3

Premium Calculations

Adjustment to take into account of Expenses & profits of the insurer is called loading

Pg :100

To calculate Premium

To Calculate the To help the To verify the commission due underwriter to Plan proposed for the agent asses the Risk

4

159 160

4

4 161

In a 20 year with profit policy,persist ency Bonus is paid at the end of While Underwriting Mr X proposal , its found that there has been CRIMIL case against him in Fraudulent act .What type of Risk this will be categorized Into ?

Agent Confidentiality Report is mandatory as It helps the Underwriters to have additiol Information about the Proposer as the agent is in better position having met / known the client Persist ency or termil bonus is given at Types of Bonus maturity of the policy Primary Underwriter

1st Year

10th Year

15th Year

20th Year

4

Fraudulent Hazard

Occupatiol Hazard

Physical Hazard

Moral Hazard

4

Types of Hazards

Moral Hazard relates to attitude or Intentions & conduct

Pg :91

Pg :101

4

Mr A wants insurance cover . But he is drinks alcohol frequently . What kind of hazard you may categorize?

Physical hazard

Moral Hazard

fincial risk

Pure risk

1

Underwiting

Physical Hazard refers to the physical characteristic of the risk associated with the proposer

Pg :91

4

Who IS the primary underwriter of the customer?

Underwriter

Insuranc eCo

Agent

Actuary

3

Underwiting

Agents are in direct contact with the Customer and have an important role to play in assessing the risk

Pg :102

4

Claim was settled however full Sum assured not paid though the policy was in force due to

Lien

Bonus

Surrender

Accidental death

1

Underwiting

Lien is a clause where the underwriter feels the risk will wear out in time

Pg :95

4

Lien can be considered an altertive of which of the following

Clause

Rejection

Acceptance

Time barred

1

Underwriting

4

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

Underwriting

4

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

Occupatiol Hazard

Physical Hazard

Premium plus interest earning

Risk premium plus interest earning

2.50%

3.00%

162

163

164

165

166

167 4 168 4 169

Pg :102

Net premium is equal to Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply

Risk premium Premium minus minus interest interest earning earning 5.00%

7.50%

4

Underwriting

LIENS are clauses which Underwriters apply to the proposal where they feel the RISK will wear off after certain time duration l 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 Under Physical hazard , the Underwriter looks into medical history of the family of the proposer to asses the risk due to heredity

Pg :95

Pg :90

Pg :91

3

3

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

4 170 171

4

The regulations issued by the IRDA, require that the decision on the proposal must be conveyed to the proposer within If bonus is given under a plan the additiol premium added is known as

4 172 173

4 4

174

4 175

Certificate from the village panchayat rd What will be lien amount in 3 year th as compared to the 4 year of lien. When an individual gets older, chances of obtaining life and health protection will be 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?

4 177

4 178

4 179

20 days of receiving the proposal

25 days of receiving the proposal

Loading

Investment

Frequency

1

Will be considered as standard age proof

Will be considered as non standard age proof

Will not be accepted

2

It is higher

Decrease

Slightly higher

Slightly lower

2

Increases

Reduces

Remains same

Depends on insurer

2

A policy Assignment

A Fradulent Claim

A steep rise in inflation

A sudden illness

2

HLV is used as a Yardstick to determine While calculating HLV along with future income, no of years of work, Inflation. increments in salary what is also to be taken in to account? Vishal and sandeep applied for a Sandeep has health plan in XYZ Life Insurance taken another Company. Vishal is asked to undergo policy from XYZ a medical checkup but Sandeep is not Life Insurance asked to do so. What will be most Company possible reason? Mr. Kul used to participate in Car race. While taking up the Insurance policy he disclosed this information. What kind of hazard does it refers to

Physical hazard

181

If the sum assured remains the same, It rises what will be impact of net premium if the age of the policyholder increases For which of the following reasons, the underwriter should ask beyond Physical Hazard agent’s confidential report.

182

An insurance agent sold two policies to two different persons having the same policy term. He declares the commission to each of them. The commission of one of the policy is more than the other. What should be the reasons for this difference?

4 180 4

4

4 183

30 days of receiving the proposal

The correct cover needed to A lump sum amount that the compensate Emotion Loss economical loss person will get can be from the to their family in compensated for insurance case of death of company the earning member

4

176

15 days of receiving the proposal

Compound reversiory bonus of 4 % will be calculated on

Risk profile of both the policyholder are different

Sum assured

1

2

Interest.

Discount rate

Compounding.

3

Vishal is older than Sandeep

Sandeep is earning more then Vishal

Vishal is working in a MNC

2

Fraudulent representation

Moral hazard

Peril

1

It falls

It remains constant

Gross premiums increases

3

Moral Hazard

SA is too high

Pure Risk

3

One has chosen Single Both have Age of both the premium policy chosen candidate are and other has different kind of different chosen regular policies. premium policy Sum assured plus bonus till date

Sum assured Premiums paid minus bonuses till date paid till date

4

2

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

184

4

4 185

4 186 4 187 188

4

4

189

4

190

4 191 4 192

A lien is generally used as a a high premium substitute to charging for a high risk In a process of completion of an insurance proposal, an agent finds Contact the that the intention of the proposer was Regulators not genuine. In this case what should the agent do? 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.. In a case, the underwriter felt that the risk associated with the person would decrease with time, then he would accept the case with Maximum Life cover

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? While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account?

3

Quotation Request Form

Proposal Form

Policy Document

Claim Form

2

A clause

A Lien

A Loading

Level Premium

2

20 times annual salary

500000

1500000

4000000

1

To see that the To give truthful To ensure that plan as report to the his client is not proposed by Insurer all burdened with the client is not about the life to extra premium changed on be insured underwriting

3

Present value Difference of the future between the Sum assured is Yearly income is earnings less Assets and the HLV of the the HLV of the persol Liabilities is the proposer proposer expenses is the HLV of the HLV of the proposer proposer

4

Employment

Age

Marital Status

Liability

2

1. Inflation.

2. Interest.

3. Discount rate

4. Compounding.

3

2. Habits and Hobbies of Proposer.

4. Medical and Persol History of Proposer.

1

4. Future value of previous earnings.

2

4. Information Underwriter.

1

1. Intentions and attitude of Proposer.

4

Income replacement methods equates Human Life Value (HLV) to

1. Future value of Present earnings.

4

Agent will be called as…..

1. Primary Underwriter

4 196 197

Inform the insurer

Moral Hazard reflects the …….

194 195

Refuse to proceed

4 193

4

1

Issue a wrong note

To see that the proposal is accepted by the underwriter at What role an agent is likely to play in OR the process of underwriting?

In insurance, HLV is a known abbreviated term. How the meaning of HLV can best be described in relation to a income earning proposer?

for reduction in sum assured

Mr. Rajesh has taken policy from ABC insurance company for Rs. 500000 Sum Assured by paying Rs. 1. Rs. 2500/50,000 premium per year. Company declared 5% Simple Reversiory bonus, what is bonus amount? The underwriter can get the required 1. Proposal form. information about the proposer in.....

3. Occupation and Residence of Proposer. 3. Present 2. Present value value of of future previous earnings. earnings. 2. Main 3. Chief Underwriter Underwriter.

2. Rs. 25000/-

3. Rs. 250000/-

4. Rs. 5000/-

2

2. renewal receipt

3. brochure

4. annual report

1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

4

Mr. Ramesh works in a mining company. So he is exposed to..............

4

Lien is imposed on a policy when underwriter feels that......

4

What does the mortality tables contains ?

198

199

200

4 201

4

202

4 203 4 204 4 205

4 206 207 208

4 4 4

209 4 210 4 211 4 212 4 213

1. moral hazard

3. mental hazard

4. Ethical hazard.

3. the risk 4. the risk associated associated might not be might be harmful general 3. Tables of 4. Tables of 2. Tables of details of details of details of various underwriter’s actuarial probabilities of calculation on calculation on death death death 3. He can take 2. Only lung is insurance after 4. Cannot give affected so insurance for submitting health insurance health reason health can be given. certificate

1. the risk 2. the risk associated might associated might increase decrease 1. Tables of death occurring in various circumstances

1. Time of death Mr. Guptha is recently detected with is uncertain, so lung cancer. He would like to take an insurance can be insurance. What is your suggestion? given 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 accept or reject the proposal only after confirming from one of the following agencies. The responsibility for classification and alysis of the proposal form lies with whom?

2. physical hazard

3. C. Moral 2. B. Moral 4. D. Moral hazard, as 1. A . Physical hazard, as he is hazard, as he is coverage is hazard, as he is 52 years old and a head master high and old wife is not the and 52 years brother’s son is nominee old the nominee

1. Fincial Inspection agencies

2. Specialized inspection agencies

3. Credit worth inspection agencies

4. Insurance Investigation Agencies

2. Classification 4. Actuary who 3. Underwriter of Risk alysis the risk Department 1. The 2. The fincial In underwriting the economic value of 3. The income 4. Human Life occupation of the history of his the person is determined by what? that he earns Value person family 4. A medical 1. An individual 2. Insurance is 3. A nominee is checkup is When an underwriter may consider is proposing SA taken out by an not a carried out Moral Hazard? 15 times his individual with dependent. nearby place of annual income. dependents. residence. Level Premium is calculated based 3. Loading of 4. Gross 1. Risk Premium. 2. Net Premium. on Premium. Premium. 1. Minimum 2. Major Possible 3. Minor 4. Maximum MPL abbreviates Possible Loss. Loss. Possible Loss. Possible Loss. What is generally considered as a 4. Level 1. Clause. 2. Assignment. 3. Lien. substitute to charging a high premium Premium. for a high risk? Jyoti is submitting is copy of 4. Proof of permanents account number card as 1. Non Standard 2. Standard Age 3. an Address Income tax Age Proof proof proof age proof for buying an money back payer plan .her age consider as a Which one of the following bonuses is 1. Simple 2. Compound 3. Persistency 4. Interim given by insurer as an incentive to the Revisiory bonus Revisiory bonus Bonus bonus insured to for long term: Ramesh bought an endowment plan 1. Gross 2. Level 3. Risk 4. Net Premium for ten year he pays the same Amount Premium Premium Premium in every year is called: 4. Medical of Which one of the following is not 2. Insurance 3. neighbor of 1. Proposal Form examition source of information about the agent proposer report 1. Risk Alysis Department

2

2

4

4

3

4

3

4

3

1 4 3

2

3

Discuss

2

3

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

4 214 4 215 216

4

4 217

4 218

4 219 220

4 4

221 5 222 5 223 5 224 5 225 5 226

An underwriter accepts the proposal with certain modified terms and coditions,What it denotes Loading in a term plan is more likely beacause of

1. Physical Hazard

2. Moral Hazard

3. Medical

4. No underwriting

2

Lien

Counter offer

Decline

Postpontment

2

Morbidity

Mortality

Admin expenses

Investment expenses

better than better than the average risk,at average risk ,at In case of lien,the risk will classified the early stage of the later stage of as per underwriting standards life the life 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! ACR Sarath nominee

Higher than the Higher than the average risk at average risk,at the later stage the early stage of life

Superior of the Sarth's insurance Insurance agent company motoring sport Moral hazard is motoring sport is is risk and motoring sport Sport and it risk and influences is a physical influence the risk influences moral physical hazard and it of life hazard hazard influences risk

If a person have motoring sport as hobby before taking insurance policy,then what it implicates If a policy of term 30yrs is imposed with lien, what will be the lien period 5 A gave an offer to B and B made modified changes to the same and returned it acceptance to A. It will be called Hari wants a constant life cover till his 31st birthday. But he cant afford to Pure Endowment pay high premiums. The best suited products for him would be At the time of maturity , quarter of the SA is paid though the policy was in force

Endowment

3

3

4

1

10

15

20

Counter offer

Rectified offer

Rectified Acceptance

2

Anticipated endowment

term plan

ULIP

3

Insurance products

Term product is the simplest and the cheapest Insurance plan which gives Life cover

Pg :112

Lien

Money back

Surrender

3

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

Term Insurance

3

Micro Insurance

Micro Insurance is for Low Income Group . Product ranges from 5K to 50 K

Pg:113

Ulip Plan

Term Insurance

3

Protection Needs

Term Insurance will help in protecting the future loss of Income

Pg :109

20%

30%

1

Tax & Inflation

The Proceeds of Life Insurance are exempted under Sec 10 (10D)

Pg :118

Weekly premiums are generally Banca assurance Health plans collected for which type/range of palns Mr A is planning to invest and his needs are :1 Protection for is Income , Children Plan Retirement Plan during his absence 2.children education What tax rate,if any,will be applicable to a life insurance policy holder for the Nil 10% maturity proceeds of a Rs 5000 life insurance policy

5

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

Tax & Inflation

Under Sec 80 C , the max Amount under Tax deduction through Life Insurance premium will be Rs 1 Lk

Pg 118

5

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

Tax Implications

Under Sec 80 C , the maximum deductible Income from tax in a given year is Rs 1 Lk .

Pg :118

227

228

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

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

5 229 5 230 5 231 5 232 5 233

5 234

5 235 5 236

5 237

5 238 239

5

5 240

5 241 242

5

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 without submitting any form of claim,a life insurance policy holder received payments of survival then what type of policy he is holding what is the special feature of ulip that ensures customer risk profile for long time insurance policies 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 Suresh is suffering from Asthma and the policy in been done on joint life basis and the need for nomition under the plan is less as After maturity In a Unit Linked Life Insurance Policy, customer does not get received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity plan 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 ? For assessing the risk of a group health insurance policy, which of the following information is the most critical 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 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 What is the ceiling of tax exemption under 80 c. The agent can use the benefit illustration document to show the client the projected growth of investment at the rate of – 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? Frequent switching is not advisable in ULIP plan because it increase

Fully taxable

10%

20%

Tax fully exempted

4

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

ULIP

Term

Money Back

Health

3

Types of Plans

Partial Survival Benefits are paid at fixed intervals without any formalities to be completed by the Policyholders

Pg :117

fund switching

partial with drawl

premium holiday

riders

1

Ulip

Ulip offers protection with Investment and flexibilities to mage the Investment to the customers

Pg :116

1 lac

3 lacs

2 lacs

1.50 lacs

2

Joint life policy

Has physical ailment

He has switched his fund

1

He has opted for He has Policy was Settlement redirected his lapsed on the option past premium time of maturity

2

Endowment

Term

Money Back

Whole of Life

3

Group lifestyle

Employees

Age of the group

Medical history of group

3

Endowment plan

ROP plan

Whole life plan

Ulip

2

Less than 20000

More than 20000

3

Less than 10000 More than 10000

1 lakh

1.5 lakhs

2 lakhs

3 lakhs

1

6% and 10%

5% and 10%

6% and 12%

5% and 12%

1

Term Insurance Return of Endowment plan Plan premium plan

Pension plan

3

Chances of lapse

1

Investment Risk

Risk of death

Uncertainty of return

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

5 243 244

5

Mr. Kartik got a job recently, he can’t afford to pay to pay the higher premium as of now but in future once Convertible he settles down with his job he can Endowment plan pay higher premium. Which one will be the best plan? What is the minimum Sum Assured 5000 allowed for Micro Insurance?

5 Pick the wrong answer. In a child plan:

245 5 246 5 247 248 249

5

Convertible money back plan    

2

10000

15000

20000

1

After vesting On vesting date Deferred date the contract is policy has to be is date on between the assigned to the which the risk insurer and the life assured. commences. life assured. 2. 10%

4. 30%

1

3. Age of the group

4. Medical history of group

3

3. Only Bonus Benefit. 3. Moderate Returns 3. an endowment policy

4. Only Tax Benefit. 4. Good Returns 4. a money back policy

2

2. when he 3. when he is survives the term hospitalized

4. when he loses his job

2

4. Endowment plans

2

2. He can take 3. He can take 4. He Can take 1. He can take Business Partner Key man company Surety insurance insurance Insurance insurance

3

1. Salary saving 2. Not a specific 3. Salary Life plan plan insurance plan

4. Salary Specific plan

2

For assessing the risk of a group health insurance policy, which of the 1. Group lifestyle 2. Employees following information is the most critical 1. Only Death 2. Only Maturity Term Insurance Plan will give…. Benefit. Benefit. 1. High Returns

2. Low Returns

5

The income of an individual can be protected with the help of.........

1. a unit linked policy

2. a term life policy

251 5 252 5 253 5 254 5 255 5 256 5 257 5 6 259 6

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...... Flexibility like partial withdrawal and taking premium holidays is possible with.... 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 ? Mr. Kumar decides that his employees should have SSS scheme. What type of plan is SSS? Manmohan has recently purchased a house worth ` 50, 00,000 on loan. Which insurance product you as an adviser will suggest? To avail the income tax benefit at investment stage, premium should be maximum Rakesh has bought an Endowment, Money back, Term & Annuity Plan he would like to avail Loan from: In Group insurance plans contract of insurance between …………? The best way to overcome the problem of investment decision depends mainly on peer influence is A person who has a temporary job Loss , where should he look for Investing other than FD

2

3. 20%

Low risk products give…..

5

260

1. Nil

Convertible pure Endowment

5

250

258

Which tax rate is applicable, in case of Client pays the premium of 5000/and suffers illness before maturity?

Deferred date is a policy anniversary.

Convertible Term plan

1. when he dies

1. Fixed deposits

2. Unit linked Insurance plans

3. Term Insurance

1 2

1. Endowment Plan.

2. Money Back Plan.

3. Whole Life Plan.

4. Term Plan.

4

1. 10% of S1.

2. 20% of SA.

3. 30% of SA.

4. 40% of SA.

2

1. Endowment Plan

2. Term Plan

3. Money Back 4. Annuity Plan Plan

1. Master Policy holder & insurer

2. Employer & Employee

3. Employee & 4. Creditors & Insurer Debtors Go for a low Postponement By Canvassing Seeking investment of investment wide peer group professiol advise tranchee decision Debt Funds of MF

Govt Securities

Equities

Gold

1 1 2

Benefits of Professiol Advise

A agent is a Professiol and gives Need based Solutions

Pg :128

1

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

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

6

RBI increased interest rates 2 times then the stock prices

increase

decrease

volatile

same

2

Implication of Interest on saving products

Increase in Interest rates will bring the stock price down

Pg :137

5 year

4 year

3 Year

2 Year

1

Income Tax 1961

To avail Sec 80 C of IT 1961 , the FD duration has to be 5 or 10 Years

Pg 136

20000

24000

28000

32000

4

Increase gradually

Decrease gradually

Remain Constant

Change as per market fluctuation

3

Saving Products

Investment is made in Lump Sum and the Interest rate is Fixed at the time of Inception

Pg 135

10- 20 gms

20- 50 gms

50-100 gms

10 gms

3

Saving Products

1 unit in ETF represents One Gram or Half Gram of Gold

Pg :135

Taxation

frequency of payment

interest rates

tenure

3

Saving Products

Three types of deposits :cumulative , recurring & traditiol . Rate of interest varies .

Pg :133

Post Office

Internet

Mutual Fund Office

2

Saving Products

NSC . Kisan Vikas Patra , PPF etc can be brought from Post office

Pg 135

Tax

Interest tax

Tenure

1

Saving Products

In cumulative Deposits , Interest is calculated quarterly

Pg :113

in ULIP policy

in EPF

same efficiency for both

Both do not give tax benefits

1

Tax & Inflation

Life Insurance gives 80C Tax Benefit on Premium and 10 10 D on Claims

Pg 136

50000

75000

100000

200000

3

Tax Implications

Under Sec 80 C , the maximum deductible Income from tax in a given year is Rs 1 Lk .

Pg :136

4

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

261 6 262 6 263

6 264 6 265 6 266 267

6 6

268 6 269 6 270

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. A person is holding 100 GOLD ETF certificates . How many grams of GOLD does he Have ? A customer while investing in to Recurring deposit or Cumulative deposit what are the key factors which will matter A person planning to invest in Kisan Vikas Patra will go to If a person chooses Cumulative deposit than Recurring deposit ,difference will be in A policy holder pays identical premium amount for ULIP and EPF where he gets max tax efficiency Investing in ULIP plans exempts a maximum up to what limit for Income Tax

Insurance Branch frequency of interest calculation

6

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

6

An Investor has invested in Debt mutual fund,he is ideally looking for

Equity return

Fixed Income

Stable income

Savings income

4

Recurring deposits

Cumulative deposits

Term Deposits

3

Quarterly

Half Yearly

Annually

2

Discounted Value

Principle amount

Discounted Value with persistency bonus

Principle with persistency bonus

1

Administrative charge

Inflation

Interest rate

Market Risk

2

He will get tax benefit up to 5000

He will get tax benefit up to 25%

271

272 6 273 6 274

6 275 6 276

6 277

A person Wants to invest in a FD for Tax benefit , How many years he has to take the term of the FD ? aditya wants to take home loan and his monthly take home is 80,000 what as a best practice should be the maximum EMI

With this type of deposit the bank pays the principal and the total Traditiol deposits interest at the end of the term In Cumulative bank deposit the interest that in normally compounded Monthly on what basis 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? And received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. Its the impact in his taxation

Reduce his Insurance encasement for against next six months Uncertainties

His investment He will get a would be reduction in tax deducted from slab taxable income

Prioritizing Care should taken that the EMI do not Saving Needs exceed 40% of monthly take home salary

Pg :139

4

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

6 278 6 279 6 280 6 281 6 282 6 283

Mrs. Sheela received some amount out of her husband’s death. In such a situation what will be her prime focus? If a person want to maintain emergency funds the best place is a bank or

6

What is the advantage of converting physical gold assets to gold ETFs.

6

Suresh wants to transfer his physical gold to gold exchange traded fund,in relation to access, this change will A client has his investment in equity shares. Agent advises him to keep it in equity based mutual fund. This will make the risk

284

285 6 286 287

If a policy with premium of Rs 5000 has matured, how much will be deducted when the maturity claim arises When a person is investing in Debt Mutual Fund, what is the primary objective Payment/Investments in Kishan Vikash Patra under post office schemes What is the similarity between Recurring Deposits & cumulative deposits in a bank

6 6

288 6 289 6 290

Bank interest is accumulated

Nil

1%

5%

10%

1

Good Returns

Regular Income

Safety

Liquidity

4

Lump Sum for fixed period of time

Regularly for fixed period of time

3

Regularly with no Lump Sum with fixed term no fixed term Guarantees

Taxation

Tenure

Lock in periods

1

Savings

Insurance

Investment magement

Planning for pension

3

Equity market

ULIP

Debt mutual fund

FD

3

Liquidity

More gold in value

Purity

More conversion value

1

Increase his liquidity

Decrease his liquidity

Diversified

Lessened

Increased

Monthly

Yearly

Quarterly

Bank savings account earn Monthly cumulative interest at what frequency If I invest in a G sec partway(ignore periodic interest payments).I will get Prinipal amount on Maturity And received post taxation 5% return on his fixed deposit in a bank. If his 1. Administrative charge net return is 3%, what can be the reason

Reduce his ability to Create a future encash for next exit liability six months

1 Once in 6 months

4 1

Discuss

1

2. Inflation

3. Interest rate 4. Market Risk

2

6

Who will maintain Mutual Fund Schemes?

1. Mutual Fund Magement Societies

2. Mutual Fund Magement Systems.

3. Asset Magement Companies.

4. Asset Maintence Company Limite4.

3

6

Which is the primary saving need among all saving needs?

1. Insurance

2. Purchasing House

3. Investment.

4. Contingency/ Emergency Fund.

4

6

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. Insurance

2. Shares

3. Fixed Deposit in Bank

4. Mutual Funds.

3

291

292

293

1

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

6

The disposable income means......

294

1

2. through internet

3. corporate agents

4. call centers

2

6

Mr. Rajgopal has invested some money. He has been informed clearly about the tenure, interest rate and 1. Life Insurance method of payment of interest at the inception of the investment itself. His investment may be in.....

2. Mutual fund

3. Shares

4. Bank deposits

4

2. Risk Diversified Insurance

3. Shares

4. Risk Sharing insurance

1

2. Capital Profit

3. Capital Benefit

4. Capital Variation

1

6 297 6 298 6 299 6 300 6 301 6 302 6 303

The concept of Risk diversification is 1. Mutual Fund applicable in which of the following instrument ? Ajay bought a share for Rs.110 and 1. Capital he sold when it was Rs.630.What had Appreciation happened to his share? Which of the following can’t be 1. Pension ducted under section 80 c from Funds taxable income? Who act as an intermediary by 1. Bombay offering a trading platform for buying Share exchange and selling of shares? 1. Amount of The savings needs of a particular disposable individual is majorly determined by income. For his investment need, Ravi has parked funds in equity. The returns 1. High Risk. from this form of investment can be categorized as While calculating the expected returns from investments and savings, 1. Taxation only. an individual should make provisions for

2. Public Provident Fund

3. Employee 4. Infrastructure Gratuity Fund Bonds

3

2. Bombay Stock exchange

3. Stock brokers

4. Share brokers

2

2. Current assets.

3. Current liabilities.

4. Duration of investment.

4

2. Low Risk.

3. Moderate Risk.

4. No Risk.

1

2. Inflation only.

3. Taxation & inflation both.

4. No provision is require4.

3

6

Time deposit account is issued by:

1. Post office

2.Bank

3.Mutual Fund

4. Life Insurance co.

1

6

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

6

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. Traditiol Deposit

4. Fixed Deposit

3

Bonds

Fixed Deposit

Mutual Fund

KVP

Investment Frequency

Interest Rate

Look in period

Taxation

Commutation Option

Differed Annuity Option

Guaranteed period option

Open Market option

305

306 6 6 308

7 309

4. the sum of one's all investment

Which of the following ways is easier 1. through for a person to take a saving product? individual agents

296

307

3. the annual bonus amount

6 295

304

2. the amount 1. the surplus that can be paid amount that can towards one's be invested EMIs

Sanjeev in a lumsum investment is getting benefit of multiple securities If the client prefers bank fixed deposit rather than cumulative deposit ,due to what implication ? 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

Discuss

Discuss

3 1

4

Annuities

Open market option allows the Annuitant to get the best scerio by taking his/ her annuity from other companies

Pg :155

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

7

what frequencies can one take annuity

7

All ULIP pension plans have to give how much percentage as Guaranteed returns

310

fortnightly,quarte fortnightly,mont monthly,quarterly rly,monthly,yearl hly ,half yearly, ,half yearly, y yearly

4.50%

Yearly Only

10%

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

3

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

1

6%

9%

3

7

Yash wants to take open market option in Pension plan. What is the benefit?

To save tax

To switch the underlying fund

7

Commutation option allows the annuity policy holder to with draw

25%

50%

40%

33%

4

Annuities

joint life policy

pure endowement policy

policy of another person

1

Annuities

Pre existing illness

risk

premium

2

Health plans

cash encashment

discount in the next premium

increase in the cover level

certain policy exclusions

2

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

Only Danny

Danny & his Wife

Danny , His wife ,His children

Danny's family and his parents

4

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

On the expenses incurred daily due to critical illness

1

Health products

Fixed amount is paid on hospitalization on a daily basis

Pg :150

311 For improved To continue life annuity rate cover

312 313

7 314

commutation is a feature of which type of policy

annuity

7

Waiting period in a health insurance Age discrepancy policy is to address

7

Under a health insurance policy,if a policy holder needs to avail his no claim bonus, how can that be done

7

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

7

Implication of Daily Hospitalisation benefit paln

Fixed amt daily

SA

Amt for particular diseases daily

7

Rupkumar wants to take Commutation option. What is the maximum amount he can withdraw

one sixth

one third

25%

15%

2

Pension Plans

termited

continues as it is

New critical Illness Rider has to be added to base Policy

2

Riders

315

316

317

318

319

Under Sec 10 10 A , Commutation , you can withdraw 1/3rd of the Corpus Tax Free 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 termites

Pg :156

Pg :156

Pg:151

Pg :156

7

Critical illness rider was taken and the Reduced the the rider benefit has been claimed , the base SA rider benefit now gets

7

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

Riders

Benefits arising of the Riders cannot exceed the Base Plan SA

Pg :155

7

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

Riders

According to IRDA regulations Premium of all riders taken together should not exceed 30% of the base policy premium

Pg :155

33%

Pension plan is not eligible for tax exemption

100%

20%

1

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

entire life term

till 5 years and continue till annuitant lives

2

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

320

321

322 7 323 7 324

One third of the Corpus can be withdrawn on vesting date Tax Free Commutation allows the Annuitant to withdraw 1/3rd of the corpus amount Tax Free at vesting date Most Insurer have waiting Period in the health Plans for covering any pre existing illnesses

Mr.Ramesh invested Rs:50000 in pension policy, what is the percentage he can avail as exemption in Income tax. In a Guaranteed annuity option of 5 years , the policy holder will get annuity till

annuity only for premium 5 years payment term

Pg :154

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

7 325

7

The Premium on all riders put together should not exceed

How riders will help the customer in life insurance

326

7

327 7 328 329

7

How the Daily hospitalization cash benefit will provide benefits to policyholder who is hospitalized 7

331

7

The premium for accidental death benefit rider must not exceed

Under the hospital care rider what is the payout made

332

7 333

7 334 7 335 336

7

allows policyholders to customize their insurance cover with additiol benefits

20% of the 30% of the 40% of the premium on the premium on the premium on the base policy base policy base policy

Rider is like a clause

Operative clause

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?

3

Rider is like Preamble

1

Only surgery expenses are included in daily hospitalization benefi

1

No change in policy

1

Children Only

1

Entire charges are refunded

A fixed amount on a daily basis Entire charges is paid Only Hospital less bed charges irrespective of bill will be paid will be paid the actual cost of treatment

3

15% of base policy premium

25% of base 30% of base 40% of base policy premium policy premium policy premium

3

The insurance The insurance The daily amount company may company will pay an additiol paid is fixed and pay for doctor amount on a In Daily hospitalization cash benefit will never be daily basis if the consultation scheme more or less than fees incurred insured is the cost of actual prior to admitted to the treatment Intensive Care hospitalization Unit (ICU) CI benefit In term insurance if Critical illness CI benefit will CI benefit reduced from rider claim happens then what will cease continues existing sum happen to existing policy assured Family floater health Insurance plan All members of a Husband and Parents only covers Family Wife only

7

330

10% of the premium on the base policy

Specified amount 10% of the sum multiplied by the assured number of days the policyholder is hospitalized Needs to take expert’s suggestion

Number of days admitted in hospital & surgery expenses in full

2

Equal to base cover

2

Number of days Treatment cost admitted in of surgery Lump sum hospital & subject to amount what surgery terms & he has incurred expenses in conditions partial

3

Need not to claim

Need to switch to the another insurer

1

Both non life insurance

Nonlife and life respectively.

2

What are the benefits to the policyholder Under Surgical care rider? Health insurance policy holder takes Need to spend treatment in a hospital which doesn’t Need to add that and Get claim have cashless facility. How the policy hospital as TPA from the insurer holder will get benefited Health insurance rider and critical Life and non life Both life illness rider in classified under respectively insurance

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

7 337

7 338 7 339

7 340 7 341 7 342 7 343 7 344

In a pension plan illustration what are the parts which shows the benefit for an annuitant.

346

7

7 347 7 348

7

349 7 350

Annuity part

The lump sum The lump sum withdrawal withdrawal before receiving before receiving periodic installments of maturity benefit What is commutation of installments annuity Cost of Life is very healthcare has uncertain increased Health Insurance is needed because significantly Rajan and Rajini has taken a Family They would get Floater health insurance Plan of 4 The claim will the claim of 6 lacs. They met with an accident and depend on the lacs since the had a hospital bill of 6 lacs. Which is individual cover surveyor true for this situation: is 8 lacs Open market option under Annuity Ensure Better Increase in the policy would extend which of the annuity rate range following benefit? Ajit and vijit are 2 friends paying Ajit is above same premium for health insurance. 65years of age Ajit is NRI and Why ajit has higher tax exemption vijit is Indian whereas vijit is eligibility than vijit below 65 While calculating retirement fund required for a self employed person His standard of Gratuity amount which of the following option will living automatically be ruled out In case of pension plans a guaranteed minimum return of 4.5 % is applicable Indexed Guaranteed when the plan is

7

345

Insurance coverage

Which of the following is true regarding Family Floater Health Insurance Plan? In what proportion is the cover in a Family Floater Plan shared? 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 Mr. X is married with wife, 2 children and aged parents Health premium is allowed for

Guaranteed and non guaranteed part

Vesting age

The lump sum The lump sum withdrawal withdrawal before before receiving receiving Death Survival benefit benefit

3

1

Premium increases with age

2

Rajan will get a The maximum claim of 3 lacs claim will be of and Rajini will 4 lacs get 1 lacs

3

Increase in return

Switch of Funds

Ajit’s health is better than vijit

2

1

1

Unit linked

3

The insurance cover is shared Any number of amongst the people may be family covered in this members in no plan. fixed Proportion

A Family Floater Plan is the same as a Individual Plan

Only self and spouse can be covered in this plan

25% each

15% each

50% each

No Proportion

4

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

Person receives Person receives Person Person receives benefit only if fixed amt daily receives a an amount equal he is for no of days in fixed amount of to the expense. hospitalized for hospital 1000 daily. Hospitalization rider has the following 3 days benefit: minimum In a Health insurance plan what the particular feature is likely to cause the Cashless facility Exclusion No claim bonus Waiting period Insurer to decrease the Renewal premium?

4

1

3

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

7 Daily hospitalisation benefit:

351 352

7

7 353

7 354 7 355

7

356 7 357

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 in his pension fund. He would like to utilize commutation benefit before taking pension. What is amount Mr. Suresh can withdraw as commutation? Customer has to pay the amount in regular intervals to create purchase price or Pension Fund. We call this phase as…..

4, 85, 468/-

1

1. Collection Phase.

2. Accumulation Phase

3. Pension Phase.

4. Primary Phase.

2

7

Mr. Govind, Advisor with ABC life insurance company find out one client is seeking solutions for health care and inheritance planning. Which main life stage he most likely to fall into?

1. Young Unmarried.

7

Mr. Ramakant is 35 years old. He has bought retirement plan for 20 years. This type of pension plan is known as..................

2

90,000/-

1. Taking Life Insurance plan with Critical Illness Rider.

361

4. Surgical Care Rider

4, 50,000/-

7

Which of the following is not a feature of WOP rider?

2

. 3, 00,000/-

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?

7

4. not remembered

2. Equity Linked Saving Schemes.

1. Family Health Insurance Plans

360

1

1. tiol Saving Certificates.

Some Health Plans will give coverage for family members also. We will call these plans as…..

359

1

ADB rider premium cannot exceed Customer has opted for a 5 yrs 2. annuity will be guaranteed annuity option. What will 1. paid up to 75 continued for 3. till he die happen to annuity, if the customer Yrs next 5 Years survives for 5 years after the end of guarantee period? The rider which is given by the Insurance company pays for the 1. Critical Illness 2. Hospitalization 3. Accidental treatment costs in the event of Rider Care Rider Benefit Rider hospitalization of the insured person is called

7 358

362

No of days spent in hospital multiplied by Daily hospitalisation benefit 30% of the base premium

3. Principle 4. Premium component of paid for Health home loan. Insurance Plan.

3. Family 4. Family Floater Health Rakshak Health Insurance Plans. Plans. 4. Taking Hospital 2. Taking Health 3. Taking MediBenefit Plan Plan, Insurance claim plan with with Plan separately. Life Insurance. Endowment Plan. 2. Total Protection Policies.

2. Young married 3. Retirement. with children.

4. Children.

2. This rider is 1. The rider ideal for helping waives future 3. The main to prevent a premiums in the policy lapsing strength of 4. WOP rider event of the WOP is the can be offered due to nondisability or payment of full with all plans payment of death of the premiums due to sum assured. policy holder. death or disability 1. immediate annuity

2. life annuity

3. deferred annuity

4. joint life annuity

Discuss

4

3

1

3

4

3

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

3. When Mr. 4. When Mr. Ranga's family Ranga dies due member will be to severe road in critical illness accident.

2

7

Mr.Feroz has taken policy for critical illness worth Rs.1 lakh in health 1. claim of 2. claim of 3. Claim will 4. Claim will be policy. He also has a term plan worth critical illness hospital charge not be settled settled as per Rs.10 lakhs. Mr.Feroz was and 10 lakh from Rs 20,000 and 1 as he died due the instructions hospitalized after he was detected term policy will lakh for death to cancer of underwriter with cancer .Unfortutely he died after be settled will be settled 3 days of treatment. How the claim will be settled?

1

7

Which one of the following cannot be covered under Critical illness rider?

1. Blindness

2. Paraplegia

3. Coma

4. Brain Surgery

4

7

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

7

Rohit is working as sales mager with an FMCG company. His job requires him to travel across states. He is planning of covering his additiol risk involved while travelling and a savings plan. What suggestion would you give him as an agent?

4. To purchase a medical plan.

1

7 363

364

365

366

367

7 368

7 369

Mr. Ranga has taken Critical Illness Rider. In which of the following scerios the insurance company will pay him......

1. When Mr. Ranga dies due to critical illness

2. When Mr. Ranga is diagnosed a critical illness

1. To purchase 2. To purchase a 3. To save an accidental health plan along through fixed rider with a with a savings deposits in savings insurance plan. bank. insurance plan.

3. The The general need for purchasing a 2. The premium premium may 4. The 1. The premium health insurance plan at an early age remains constant increase or premium decreases with results from which of the following with increasing decrease with increases with increasing age. factors? age. the increasing increasing age. age. The life expectancy in India is constantly improving and is well 2. Bank fixed 3. Health 4. Savings 1. Equity. above 60 years. This also brings deposits. insurance plan. insurance plan. along challenges. These challenges can be covered through

3

7

And has purchased a pension plan which is nearing completion of accumulation phase. He is in need of finces 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.

7

Which of the following is not featured and benefit of rider?

1. Providing additiol cover

2. Maturity benefit

7

Gaurav bought an endowment plan for 20 year of 10 lac SA with ADB Rider, died in road accident after 10th year how much money claimant would be payable:

1.10 lac

2. 20 lac

3.30 lac

4.5 lac

2

7

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

370

371

372

373

4

3. 2/5th of accumulated amount.

4. 2/3rd of accumulated amount.

4. 3. Nomil cost & Customization flexibility and tax benefit.

2

2

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

7 374

7 375 7 376 7 377 7 378 7 379 7 380

8 381

8 382 8 383

1 Rider

Continouation

Subsidiary Will get lumsum Per day Hospital Per day Hospital benefit Cash Benefit Cash Benefit Respective to irrespective to respective to surgery have In Surgical benfit rider what would be the surgery the surgery the payout procedure made made been made A Critical Illness claim is settled in a policy. The benefits of the policy can For Repairing Only For be used for Only for Illness house Doctors fees If a health rider is taken in a policy, maximum rider premium can be %age of base premium 25% 50% 75% 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 Under daily hospitalisation cash Special benefit scheme the amount payable is Change in consultant Admission to increased due to what reason hospital charges ICU Extensive Insurance addresses the needs of Extensive Restricting the underwriting at people with risk of living too long by.. documentation max age at entry inception Public sector Why do Self Employed Individual employees enjoy Self Employed Public Sectors have the need to buy Medical people do not Medical do not get Sick Insurance rather than People working have Sick Insurance often in public Sectors Leave Covers related to Job Mohit has two kinds, one of 6 years and other 8 years.He is the earning Health policy for Health policy for Life insurance member and not having life cover. child wife policy for wife Before advising him to take health policy, what he should be advised. Manoj a 26 year old is having 7 years Margilly Singnifcantly less than after old son. What will happen to his decrease increase 15 years monthly disposable income after 15 years of job

discount

3 Irrespective to the sugery 4 Not specified 4 100%

Premium increase

2

3 Retirement and pension plans

4

Loans are available faster for Public sector EMPLOYEES

2

factors affecting Life stages

Public sector makes provision for PPF , health

Pg:172

Life Insurance policy for himself

4

Life stages

Protection of Asset is the most factor

Pg :170

will remain same

2

Life stages

The Income earning capacity keeps going up there by allowing the disposable income to increase as the time goes.

Pg :164

8

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

Life stages

Single Income family , Insurance protection is very important

Pg :168

8

The sole focus during a client’s factfind 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

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

8

A Couple has 7 years old son, What solution would they be looking for

Retirement

health care

child education

life cover

3

Life stages

Along with Life cover , child education planning is important stage

Pg :168

Childhood

Young Married

Pre Retirement

Retirement

1

Life stages of Clients

Children normally do not have their own Income source

Pg :167

Charges

Interest

Inflation

Taxation

1

Fact finding

The Electronic benefit Illustration gives all information of Returns , Charges

Pg:194

Young

Pre- retirement

Retirement

children

1

384

385

386 8 387 8 388 389

The risk of unemployment is covered with what benefit in the policy

8

In which of the recognized life stages an individual does not required any protection cover Benefit Illustration given to a customer quantifies an amount by which investment return is reduced. This reduction reflect the impact of Life insurance is the most important for which age group

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

8 390 391

8

8 392

8 393

8 394

Ashish is looking at different plans of insurance for protection at the lowest premium. Which is the best plan for him? During Fact finding, rating is mentioned ‘3’. This Indicates Shailesh and ankit want to retire in the age of 65yrs. But shailesh pays more monthly payment than ankit. Why? During fincial 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. 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?

Term plan Risk apatite of client Shailesh is very older than ankit.

Endowment plan Whole life plan

Money back plan.

His future Commitment to Willingness to aspiration need pay Shailesh’s income is more than Ankit’s income

Emergency funds

Income protection

4

Retirement plan

Health insurance for parents

Term Assurance

Endowment Plan

2

397

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?

8

8

8 398

8 399 8 400 8 401 8 402

During fact finding, What will be the next step after Identifying clients need 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?

1

Marriage

396

395

1

Childs education

Real needs are Real needs are needs which Real needs are identified by Real needs are satisfy an actual needs and the insurance fincial needs and objective and perceived needs agent and perceived needs perceived are based on a perceived are non-fincial needs are client’s thoughts needs are In the context of fincial planning, how needs. needs which do and desires. identified by is the difference between real needs not satisfy an the client. and perceived needs best described? objective. If a person is concentrating more on Young married health plan and retirement plan then Young unmarried Young married Pre retirement with Kids at which stage of life is he in.

8

1

Marriage.

Savings.

Education.

Protection.

Quantify clients Priorities Clients Recommending Fill up the need Need Product proposal form

Money Back

Term Plan

Endowment Plan

ULIP

Sumit is having 2 children. He wishes Individual Group health A family floater Life insurance to have health cover for himself and cover insurance plan his wife. Which suits him the most? A client has got some funds and Depends upon Depends upon wants to provide for retirement and his actual age Margin money Retirement plan the amount margin money. What should be his and years left needed priority for retirement While planning for retirement fund to calculate the required amount needed The inflation rate The interest rate His income at that time we should consider as priority

2

4

1

1

4

1

3

1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

8 403 404

8

8

405

8 406 8 407 408 409

8 8

8

410

Ajay is 35 years old. He wants good amount of life insurance cover along with savings element with no defined Endowment term. Which plan should be suggested The income of an individual can be a unit linked protected with the help of policy A married couple having 9 year old child have to consider life insurance, health insurance, child investment & retirement plans for their better future Child Investment as a family but at present condition which aspect should be kept at lowest priority? After completing a Fact Finding activity for a client, who is self It affects the employed, the main reason why it is basic cost of important to record the type of work cover that he is involved in is… Mr. Shyam is having 9 year old child. Which product is not to be given Health plan priority? What is the major reason for self Save Tax employed to take insurance. What is the major reason for Need alysis conducting fact finding exercise? veen, aged 32 years, has taken money back plan. He is a teacher by profession. veen referred Prasad to Ram. Prasad is also teacher. Ram Yes, as veen and who is an agent advised Prasad to Ram are of same age. take money back plan as he is of same age (33 years). Is it the right advice? Why?

412

8

413 8 414 415

8

Moneyback

3

a term life policy

an endowment policy

a money back policy

2

Health Insurance Life Insurance

Retirement

4

Dictate the Rider Helps to Benefit should quantify the be client’s attitude recommended to risk

Influence the tax status

3

Retirement Plan

4

Life Insurance

Fluctuating income Understand about company

High Returns

Protection

4

Introduction of agent

Understanding the Customer

1

Yes, as both are teachers

No, as there is an age difference.

2

Age increases, Age increases, Risk decreases Risk decreases and the Risk and the Risk appetite appetite increases decreases

2

Regular savings creates a fund to meet adverse incidents in future. For Fund for Retirement fund Emergency fund Education Fund drawing a fincial plan for savings untimely death needs of an individual without capital, what is the Fund which comes first?

2

By addition of By addition of By addition of Accident Benefit Term Premium rider to the assurance rider waiver rider to proposed to the proposed the proposed Endowment Endowment Endowment assurance plan assurance plan assurance plan

3

There is a relation between Age, Risk and Risk appetite. Which relation is most likely to be acceptable?

8

Whole life

Child Plan

8

411

Term

A Proposer asks for double death benefit in an Endowment assurance plan for 15 years. How his proposal will suitably be dealt with? A provision for superannuation is normally taken a high need to A person has 6 months of emergency funds.This is:

Age increases, Risk increases and the Risk appetite increases

By offering another Endowment assurance plan

a Public sector employee Reasoble

No, customers needs are different

Age increases, Risk increases and the Risk appetite decreases

an unmarried young

A selfemployed person

A Government employee

3 1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

8

During fincial 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.

1. Childs education

8

Perceived needs are those….

1. Short term needs.

416

417

8 418 8 419 8 420

8

421

8 422 423

8

8 424

3. Emergency funds

2. Imagined to 3. Imagined to be important by be important by Advisor. client. 2. Capacity to pay the premiums in future.

3. Existing insurance plans.

4. Income protection

4

4. Long term needs.

3

4. Family and Employment details.

1

Mr. Shanth is in his early 20s and has 1. high 2. low 3. normal 4. Neutral. just started earning. His risk appetite is expected to be..... The younger the age of an 1. the lower 2. the higher 3. the smarter 4. the superior individual..............their liabilities will be. Mr. Ramachandra's son Mr. Bharat has just employed as a software 3. Married with engineer, daughter Anusha has got 1. Pre-retirement 2. Post 4. Employment older children married. Now Mr. Ramachandra is stage retirement stage stage stage free from his burden. So Mr. Ramachandra is now in the ...................stage. Mr. Vinodh has lot of inconvenience to reach office every day. So he 2. Perceived 4. Important 1. Real need 3. Imagiry need wants to buy an expensive car when need need he will have sufficient fund. Here Mr. Vinodh's need is............. Which are the two primary needs of 1. Investment 2. Investment 3. Investment 4. Investment any customer in any point of life? and retirement and Protection and savings and life needs 4. Selling what 1. Selling what 2. Selling what 3. Selling what The concept of need based selling IDRA wants company wish to adviser wish to customer involves company to sell. sell. requirement is. sell.

2

1

1

2

2

3

8

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. Fincial security need.

4. Asset building nee4.

3

8

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

3. Quantify, Identify & Prioritize Needs.

4. Prioritize, Quantify & Identify Needs.

2

3. Health Insurance

4. Liabilty Insurance

2

425

426 8

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

8

Amit is looking for term insurance plan for protection of his family, he is advised to approach to:

1. Property Insurance

What do you mean by Double Income Family?

1. When a person of the family is involved in double businesses or jobs.

427

428

8

429

1. Fincial provision to meet Need alysis involves identifying……… predictable and unpredictable needs.

2. Marriage

2. Life Insurance

3. When the 2. When both the income of a 4. When the life partners are family is just members of a earning the double of family do not members of the income of work at all. family. another family.

2

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

8

In which of the following case there is 1. Public sector no defined retirement age? employees

8

1. Every individual’s income and expenditure pattern is same.

2. Every individual’s income and expenditure pattern is different.

Adequate

Idequate

430

Which one of the following is true?

2. Private sector 3. Professiols & employees Businessmen

4. All of the above

4. An individual 3. An should not keep individual’s in mind his income and income while expenditure planning his has no relation. expenditure.

2

2

431 8 432

8 433 8 434 8 435

Ram has set a provision for contigency which can survive for 6 month .This amount is considered as

Explain him Explain him difference XYZ client wants to buy a car in future difference Explain him between , however his fincial planning shows between real difference important & that he cannot afford car as of now need & between fincial & unimportant .As a fincial planner you should perceived non fincial need need Young Married Young Married Young Married with no children with no children with children Which is suitable life stage to buy Unit and Single and Double and Single linked insurance plan? income family income family income family X and Y are married, they are Young married planning for estate planning, which with single life stage do they belong to income no kids Retirement Childhood client need alysis Product Pitching

Reference

1

Fact finding

Zero risk Taking

3

Fincial Planning objective

Up to 100000

Without any limit

1

Both of the above

None of the above

1

Mr A has been approached by the Moderate Risk Agent and on fact finding the score is Low Risk Taking High Risk Taking Taking 3 , this represents

9 439 9 440 9 441 9 442 9 443

9 444 9

To ensure that the premiums are paid out of a legitimate source of funds cash is accepted st With effect from 1 July 2010 all insurers have to disclose in the benefit illustration document the.. If the client accept the recommendation, then the agent should ask the client.. What should an agent do in order to understand the mental state of client in respect to his investments in saving products During product recommendation the agent should explain the product in relation to 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? resh is married and his daughter Sneha is 3 years old. Which plan can he take?

Up to Rs 50000

Up to 99990

Commission Pay Detail of charges to their agents

4 Pre retirement

Proof

9 438

2

Fact Finding

Fact finding sheet allows the agent to

Select the product

1

1

9

Alyze customer needs

Explain him difference between short term & long term need Young Married with children and Double income family

1

Finding out Moral hazards

objective of fact finding

437

too high

for completing ACR

9 436

445

too low

To pay the premium

To fill in the proposal form

To ask the documents

None of the above

2

Fact finding

Consulting the client’s parents

Consulting the family of the client

Reviewing his existing investments

1

The needs that came to fore in fact find process

Benefits of the products

Commission on the products

Fact Finding document

KYC document

Benefit   illustration document

Client benefit document   

3

Term & Children Plan

Annuity Plan

Whole Life Plan

Health Plan

1

fact finding process helps in identifying the clients fincial needs, to quantify them & to prioritize them , Fact finding as a process is to identify the clients needs , quantify them and prioritize them The grading is in 0 -5 rating , O denotes No risk taking ability and 5 denotes High risk taking ability of the client

Pg :184

Pg :184

Pg 190

1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

9 446 9 447

If the recommendation of the agent has been rejected by the client, the agent should: Fincial 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

9

Unemployment

Sickness

Education

4

House

House loan

Investment in shares and mutual fund

All of them

2

2. His future aspiration

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

1. Risk apatite of client

9

Which type of questioning is very useful to gather information from clients?

1. Closed Ended Questions

450 9

9 452 9 453

9 454

1

2. Open Ended 3. Interrogative 4. Clarification Questions. Questions. Questions.

2

3. Proof of 4. Lapsed address. policy details. 3. recommend 1. recommend 4. Recommend the new 2. recommend to During the recommendation stage the products that to take his own product the wait some days the advisor needs to...... best meet the company has time to take a to invest client's needs decision. recently launched In which of the following an agent will 2. Advisor 4. Persol and 1. Fact Finding 3. Customer collect the customer’s Persol data, Confidential fincial data Sheet Data sheet professiol data and fincial data Sheet sheet Mr.Mohith, an agent was explaining 3. C. Benefit 4. D. Client to his customer the guaranteed 1. Fact Finding 2. B.KYC illustration benefit benefits of the product. Which one of document document document document the following documents he would have used to explain the same? Which is the not part of KYC norms?

1. Photographs

2. Proof of identity

9

9

3. Individuals 1. Individuals 2. Individuals 4. Individuals’ do not As an adviser why is it essential for understand their have same real and understands you to carry out the fincial planning real needs and fincial needs at perceived their real needs exercise with the prospective clients? can prioritize different stages needs are and cannot them. of the life cycle. same. prioritize them.

456

2. Client’s Expense statement

9

After undertaking fincial planning exercise, the prospective client said that he 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.

9

The objective of Fact Finding is to

1. Gather Clients Information only.

2. Identify only the client’s needs.

457

2

3. Commitment 4. Willingness to need to pay

Mr.Harsha an agent wants do a thorough Fact Finding for his client to 1. Client’s Profits Mr.Kishan who is a business man. and Withdrawals Which of the following information will from business be helpful to know about the earnings and Expense of Kishan?

455

458

Disability

9 449

451

Find out the reasons for refusal

Which one is not an asset

448

Must try to Must try to convince the force the client client to follow to follow his his recommendatio recommendatio n n

Ask the client to fill the proposal form

3. Client’s business details

4. Client’s business records

Discuss

4

1

1

3

1

3

3. 4. Client Communication information skills. gathering skills.

1

3. To provide 4. Both identify solution of clients’ needs & company’s gather choice. information.

4

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

9

1. Provide the To explain the benefits of a product, product brochure the insurance adviser should to the client.

459

9

460 9 461

9 462

2. Provide Benefit illustration documents to client.

3. Provide the terms and conditions document to the client.

4. Provide the website address to the client.

Amit & Rashmi are newly married. Both are working couple. They want to 1. Ruining the 3. Bad invest their savings of 100,000 2. Opportunity of 4. Fincial long term reputation of annually to build corpus to make new business for burden on the reputation of the individual down payment for their house 5 years adviser. couple. company. adviser. from now. An adviser sold than a unit link product to meet their requirement. This may result in To prove one’s identity in accordance 2. An Identity 3. An Address 4. Education with KYC process, the customer 1. An Age Proof Proof Proof Proof needs to submit following document excluding ……….? 3. 4. Discourse 2. Matching the Vinod being an insurance agent can Recommendati saving in a 1. Providing him product with offer assistance to his client Ramesh on of product purposeful and emergency fund. Ramesh‘s fincial by: with highest need based need. return. manner.

2

2

4

2

9

Objectives of fact-finding do not include-

1. Identify needs

2. Gathering client data

3. Provide for anticipated changes

4.Surrendering the existing policies for selling new one

4

9

Which one of the following documents distinguishes between Guaranteed and non-guaranteed benefits?

1. KYC documents

2. Benefit illustration documents

3. Fact-finding sheet

4. Fincial details

2

463

464

9 465

9 466

10 467

10 468

Check the After fact finding , Ram has presented client's Should take the product to the client in te second commitment to some more meeting . If client approves the Ask the client to the need & time to Should close recommendation what should be the sign the contract continue with conclude the the discussion next xtep of relationship process sale then & there Discuss with Coming to proposer about mutual future life agreement with which of the following is the fil stage prospects and Completion of Recommending objective for of fact finding with the client? changes Proposal form Solutions Solutions a policy holder takes two insurance One of the policy and the premium amount is one policy has ONE POLICY one policy is a policy has identical and he gets lesser more SA has more term single premium higher commission in one of contract the Premium reason is likely to be An agent reveals his commission X has brought Y has brought a received from insurance sales to X&Y other limited single premium X is married Y is Single .Both plans are of same duration . premium product Why is commission of X far higher product that that of Y

10

Customer asks the agent to disclose the commission . The agent should

disclose on demand

10

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

2

4

3

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

2

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

Not disclose

Should call up the Insurer

Should avoid the topic

1

From the fact details

From signed copy of benefit illustration

From ticked column of proposal form

3

469

470

Discuss

As per IRDA regulations , agents are Agents Upfront supposed to disclose their COMMISSION disclosure when asked by the customer . However Methods Rebates are prohibited

Pg:102

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

Policyholders suffer due to surrender charges and benefits

Insurance companies get good branding

3

10

10

what over riding criteria an insurance agent consider while proposing a solution

risk

suitability

Flexibility

Cost

2

10

Sales Target is reduced . Churning will

Increase

Decrease

Will not affect

Partially

2

10

Higher persistency to the insurer ensures what ?

Higher Profits

Higher S.A

3

10

Persitency =has increased from 82 % in previous year to 86 % this year . That means

471

472

473

474

475 10 476

10 477 10 478 479

Agents earn Lower Policyholder gets Commission on more benefits churning

Churning is bad , based on which aspect

10

10

What key impact will the agent have in low persistency 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 When should an agent disclose the commission which he will earn from the product which he is going to sell What is the disadvantage to the insurer in case the persistency falls

More productivity Higher attrition

more lapsation

more attrition

less lapsation

No profits

3

Increase more business

Increase in the agents earning

Will improve reputation

Will have impact in his commission

4

2011

2012

2013

2014

1

When the customer asks him

After the fact finding process

Lower profits

Higher profits

The customers are satisfied with the products

The company is acquiring more business and new customers

After the After product is quantifying the recommended need to the client

481

10 482

Should ask for Insist on taking the reason for Should ask for the product right not going with a future date If the client does not wish to proceed away the from the client with the recommendations right at the recommendation moment the agent should

10

483

During a fact finding process the need alyzed were income replacement and Do the fact children’s education. But the customer finding exercise insists on only a child plan for the again time being and asks the agent to give him a child plan. The agent should.

10

10 484

After doing the need alysis of the client, the agent advised the client to Enquire about opt for TROP product. But the client the refusal from the client refused. According to ethical business practices what will the agent do ?

Repeatedly encouraging clients to switch policies / Investments from one another is called churning

Duties & Agent is an intermediary between Insurer Responsibilities and the Client of agents Repeatedly encouraging customers to Persist ency switch policies or investment from one to another is called Churning Higher Persistency helps Insurer to get Persist ency Higher revenue thereby increasing profitability Higher Persistency helps Insurer to get Persist ency Higher revenue thereby increasing profitability

Pg :204

Pg :200

Pg 204 : D4

Pg :206

Pg :206

1

1 A large numbers of policies have lapsed / surrendered resulting in loss of profit Ask the proposer’s doctor to send details to the insurer

A low persistency ratio for the insurance company means that: If a person already suffering from some disease and had not mentioned Refuse to act for Notify the insurer it in the proposal form then as per the customer of this matter IRDA code of conduct the agent benefit should

480

Churning & Product switching

The company will not declare bonus

3

Respect this confidentiality by not disclosing it to anyone

1

Should review once again

3

Insist with the client to take a term plan

Give a child plan and revisit the client on a later date

Give the lead to another agent

3

Suggest an altertive plan

Pass on to the superior

Pass on to the other agent

1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

10 485

Which of the following act from agent Explaining will be specifically useful in case of charge structure annual premium policies compared to monthly mode policies

10 486 10 487

As per the IRDA circular an insurance agent If the agent recommends the client to termite an endowment plan and take a whole life in order to earn higher commission its termed as

10 A low persistency ratio for the insurance company means that:

488

10 489

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

10 Persistency can be improved by:

490

Fact Finding

3

Providing service to the clients

1 4. Salary and 3. Both of the Reimbursemen above. t.

3

2. Churning

3. Redirecting.

2

1. Client and Insurance Company

2. Insurance Company and IRDA

3. Client and IRDA

1. Role of Agent

2. Product Design.

3. Policy Servicing

4. Insurance and Reinsurance company. 4. All of the above.

3. compulsory

4. appreciable

2

3. Dispatching 4. Continuous Discharge servicing of the voucher to the policy customer

3

1. Switching

10

An insurance agent is intermediary between….

1. good

2. bad 2. Flexibility of Premium payment to the customer

2. Surrendering the policy

10

Which one of the following factor does not help in the Persistency ?

1. Regular reminders about the premium to the customer

10

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

496

3

4

10

10

Should not disclose

a kind of gift for a breach of a a rebate on the a breach of purchasing provision of the price amount like IRDA’s code of insurance Insurance other sales conduct products Act,1938

Mr. Gayaram, Advisor who advised the customer to close the old policy and 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……

What is the factor which has influence on persistency? For an insurance advisor churning is.............practice

2

1

2. Renewal Commission.

10

Churning

Offering premium collection facility to client

A large numbers of policies have The company will not declare lapsed / bonus surrendered resulting in loss of profit

The company is The customers acquiring more are satisfied with business and the products new customers

1. First Year Commission

493

497

Doing a fincial planning

Remuneration to Agents includes

492

495

Switching

Offering credit facility to client

needs to need to disclose disclose the the amount of amount of commission commission on demand

10 491

494

need not disclose the amount of commission

Issuing reminders

3. Switching the policy

4. Shifting.

4. Claiming the policy

1

4

1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

10 498

10 499 10 500

10 501

10 502 503

10

10 504 10 505

Mrs. Hansa an agent, has planned to 2. Reputation of 1. It will benefit sell maximum products within a short the company will 4. Agent will be both the 3. Agent will be span of time by giving maximum be high due to qualified for the company and the termited rebates to the customer to complete offers to the contest customer the contest target of the company. customer Mr.Raghav is an expert in fact finding .Mr.Raghav helps his brother in his 1. Raghav will be 3. Raghav 4. Customer 2. Raghav will be job by sharing the information of his promoted to the License will be will complain to termited clients after the fact finding he does to next level cancelled Ombudsman procure insurance. What will be the outcome ? 2. When the 1. When the 3. When the 4. When the The agents duties and responsibilities client’s needs clients policy is nominee has maturity/claim ends have been issued. changed. is settle4. established. 2. Should ask for When client declines the 1. Persuade the 3. Should reference who recommendation by the insurance client to never approach 4. Should do might be adviser even after resolving the purchase the the client ever nothing. interested in concerns, the adviser should policy. again. fincial planning. Under what circumstances the surrender of a policy should be recommended by the agent?

2. When a client 3. When the 4. When the 1. When a client is holding a policy has been client is have been sold product having mis-sold and enjoying good the right solution. good value for do not match fincial status. money. his needs.

What key benefit high persistency 1. High renewal ratios have on insurance adviser? income. Under which one of the following acts the maximum remuneration that can 1. Income Tax Act be given to insurance agents described? 1. Helps the Which one of the following is not a client in benefit of persistency? achieving goals

10

1. Satish should Satish as an insurance advisor while check the recommending to his client Ramesh is Ramesh ‘s not suitable policies – commitment to the needs

10

1. A satisfied Why a building long term relationship client may be the with clients is necessary? source of other potential clients

506

507

10 508 509

10

10 510

As per agents code of conduct,Agent Recommends protection Plan,but the client insist on investment plan for the fincial planning,what an agent should Recommend do! both the plans Insurers observe high persistency policy reserve ratio,then increases After clearly identifying 2 needs from fact finding, client agrees to go for one and gives the reason, what Do a fact finding should the agent do now again

3

3

4

2

3

2. Less renewal income.

3. Fewer client bases.

4. Unsatisfied clients.

1

2. Indian Contract Act

3. Insurance Act 1938

4. IRDA Act 1999

3

3. Increased 4. Decreased client revenues satisfaction 3. Satish 4. Should 2. Satish should should check advised him to outline the the acceptance surrender all reasons for or rejection of the polices recommendation the which are not for a particular recommendatio buy from policy n. satish. 4. Introduction 3. Agent has 2. Reviewing of a new the option to fincial needs and insurance recommending plans are product or a highest necessary with change in a commission at changes client’s any time. Circumstance Propose an investment plan and discuss with him regard to Report to the discomfort of Refuse to act senior and seek term plan with client his Guidance Reserve Remains Surplus decreases constant decreases Proceed with agreed need Refuse to and document Get second proceed the rejection opinion 2. Reduction in costs

4

4

3

2

1

3

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

10 511

Nikhil was in the process of closing a Ask his Ask the client unit linked plan sale and the customer Decline to act for Direct him to the Supervisor and to put the query put a query which Nikhil does not the client product booklet clarify in writing know. What should Nikhil do? Due to the category of customer

Due to the profile of the customer

10

While on sales of an Insurance plan Mr…. Had to show his license

11

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

Claims

11

A missing person is considered to be dead after

5years

8years

12 years

7years

4

Claims

11

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

Claims

11

A claim was submitted & in how many days company should ask for additiol documents if required

15 days

10days

20 days

30 days

1

Claims

11

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

1

Valid Claims

11

According to IRDA guidelines, how long does an insurance company have to complete its investigation of a claim

30 days

90 days

120 days

180 days

4

First five years of policy

First Two years of policy

Claim

Inception of the policy

2

512

the customer demanded

3

2

513

514

515

516

517

518 11 519 11 520

11 521 11 522 11 523 11 524

Indisputability clause can be enforced by the insurance company during the

Not necessary to Necessary to pay pay premium premium until until court decree court decree

Incase of presumption of death If a valid claim is delayed by the insurer then the interest for the same will have to be paid by the insurance 10 days 20days after how many days from the date of admission of the claim? Under the IRDA guidelines for Claim settlement, any queries or additiol 5 days from the 10 days from the documents can asked from the receipt receipt claimant within A claim was paid in a policy and it It was assigned. was advertised in the newspaper also. This indicates that the policy was. An indemnity bond was signed in a policy when the claim was paid. This It was lost. indicates that the policy was.

Death was due Body not found to Accident

Claim not admissible

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 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 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 fincial years saving account rate of interest IRDA Guidelines on claim settlement instruct the insurer to complete any additiol documents /information collection not in a piece meal basis within 15 days from the time of receiving the claim intimation Suicide clause exclude claim settlements if it happens within One year of the policy commencement

Pg :219

Pg :221

Pg :219

Pg :219

Pg :217

2

30 days

60 days

3

15 days from the receipt

20 days from the receipt

3

It was paid up.

It was lost.

It was surrendered.

3

It was paid up.

It was lapsed.

It was surrendered.

1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

11 525

11 526

11 527

11

528

11 529 11 530

11 531

Which of the following falls under voidable contract? 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? 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. Ranjan took out a 20 years Money Back plan on his own life 5 years ago. 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 claim?

Misrepresentatio Lack of insurable n interest

Fraud

Age admission

Disclosure of material fact

Premiums paid or not

Normal

Fraudulent

Early

None of the above

2

General

Survival claim Survival claim Both the survival will be paid to will not be paid claim and the Bothe claims the Legal heirs and only death death claim will will be paid to and the death claim will be paid be paid to the the Legal heirs claim to the to the Nominee Nominee Nominee

Full sum A regret letter Paid up value, assured less will go intimating Full sum assured A life assured died after 40 days from if any, will be deduction of that nothing is will be paid as the payment of his monthly premium. paid as death unpaid payable as death death claim If there be any claim, how the claim claim premium will be claim will normally be dealt with? paid 1. Which of the following falls under 2. Lack of 4. None of the 3. Fraud Misrepresentatio voidable contract? insurable interest above n After maturity In a Unit Linked Life 3. He has he Insurance Policy, customer does not 2. He has opted 4. Policy was 1. He has has redirected get received Maturity in a lump sum. for Settlement lapsed on the his past What is the possibility of receiving it switched his fund option time of maturity premium. in installments if it is not a annuity plan 1. Not necessary 2. Necessary to to pay premium pay premium until court decree until court decree

11

Incase of presumption of death

11

What is meant by a claim under insurance policy?

1. A demand to fulfill the policyholder’s obligations.

11

Who will take the initiation to settle the maturity claim process?

1. Client

3. Claim not admissible

1

3

3

4

1

2

4. Depends on case to case

2

4. All of the above.

2

4. Insurance company

4

532

533 534

11

535

11 536 537

11

2. A demand to 3. Any demand fulfill the made by the insurer’s policyholder on obligations. the insurer. 2. IRDA

3. Advisor

4. Enquiry will 2. The insurance 3. Enquiry will 1. The insurance be done if company makes be done on Which is the right statement regarding company makes death happens enquire on both Maturity claim enquiry? enquire only on before one year maturity claims and Death death claims. from policy only. Claims. inception date. Mr. Chintamani has taken a policy from ABC Company on 2nd March 1. Normal death 2010, but unfortutely he died on 18th claim August 201 His death claim is considered as.......... Detailed Investigation will be 1. Maturity triggered in case of...... claims

2. Early death claim 2. All death claims

3. Abnormal death claim

4. Untural death claim

3. Early death 4. Rider benefit claims claims.

1

2

3

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

11 538

11

In insurance, if a person is not heard for .......years his is presumed to be dead.

In the process of settling maturity claims....

539

11 540 11 541

11

542 11 543

11 544 11 545

11

546 11 547 11 548

1. 5 years

2. 6 years

3. 7 years

4. 8 years

4. If the 1. the company 2. the process is 3. it is the claimant does will wait until the initiated by the responsibility of not come within claimant comes company well in the claimant to a month the to office to advance of the approach the entire maturity demand the maturity date company amount will be claim forfeited.

Mr.Baskar had taken a Term plan for 2. Total 4 lakhs 4. Total 7 lakhs a sum assured of Rs. 7 lakhs. He also 1. Total 7 lakhs will be paid as 3. Total 11 will be paid as will be paid has an ADB rider worth Rs. 4 lakhs. death had lakhs will be death had taken without any Unfortutely Baskar died in a car happened due to paid place deduction. accident. How much will be the death car accident claim settlement? 1. The 2. The nominee 3. The event 4. The insurer policyholder Insurer will not pay the claim unless makes a insured against completes the makes a demand. happens. enquiry. demand. Aman has taken a term plan for 20 years. In the 3rd year he suffered 2. This condition fincial crisis due to which he was uble 1. The policy was 3. The claim is 4. The claim is is excluded in to pay premium within grace period not in force. fraudulent. an early claim. the policy. and died after 1 month. The nominee files a claim and is rejected because 3. The facts 1. The claim may 2. The policy 4. There is no were not be genuine. may be pledged. misrepresented nomition. . 2. 4. There is no What key event is most likely to make 1. The 3. The life Representation insurable an insurance contract not a valid circumstances assured is of facts by the interest contract? are legitimate. policyholders is major. attached to the true. policy. On foreclosure, if Death claim arises 2. Legal heir of 4. forfeited the before the payment of the surrender 1. Nominee 3. Debotrs life Assured Premium value, the payment would be payable to: Gaurav is working in MNC at the age of 32 bought an Endowment Plan. He 4. will be had nomited his 1 year old daughter Payable to 2. Legal heir of 3. Appointee Saanvi, but not able to get the Sigture 1. Nominee only Saanvi the life assured Only of her appointee due to uvailability of (Nominee) at his spouse .after 5 year. He died in the age of 18th road accident, now claim money would be payable to: Which one of the following report is 1. Policy first 2. Advisor 3. Post Mortem 4.Coroners not considered in case of Pankaj information confidential Report. Report Bought a plan in 2009 & died in road report. report accident in 2011 : 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 When a policy is lost, insurance company take utmost care while settling maturity claims because

3

2

3

3

1

2

4

2

2

Discuss

2

4

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

11

549 11 550 11 551 11 552 12 553 554 555 556

12 12 12

12

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 conditiol A loan and assignment.pending requirment in interest is relation with B outstanding Maturity benefit is equal to Sum assured plus reversiory bonus minus Persistency ? bonus In a non life policy, the person who is authorised to process the mediclaim is known as Underwriter Maturity benefit is equal to Sum assured plus reversiory bonus minus Claim within 1st ? anniversary An advisor while explaining the policy and to sell he accepts to give a part of 10% his Agents commission, what is th limits Consumer Forum at district level will 20L hear complaints up to How much is the rebate allowed by Nil IRDA to client the controller of insurance in india is A insurer advertises through daily news paper . What type of marketing is

IRDA

A loan amount and oustanding premium is pending Outstanding premium + interest Third party administrator

3 A outstanding premium is pending

A sign on discharge form

Outstandin premiums

2

2 Actuary

Claim within 1st Claim befor the Claim after the calendar year valuation date valuation date 20%

40L 5% RBI

He cannot offer He can offer up any to 50% commission 1Cr

10L

3

Code of conduct

1

12 12

559 12 560

12 561

12

562 563 564

12 12 12

565

Investment by NRI(Non Resident Indian) will be MWP- If the policy is endorsed under MWP - then the beneficiaries are wife and ? If the license of an agent has been disqualified by a desigted authority in 2010 then the person can apply for a license in which year

When can an insurance company give more than 35% first year commission?

Which is the 2nd stage in Money Laundering?

1

SEBI

1

IRDA 1999

Brand building

3

No risk

Low risk

Medium risk

High risk

4

parents

ex wife

children

mother

3

2013

2015

2017

2020

2

When the If the agent has If the agent has If the agent is insurance worked with the worked with the doing more company is in company for company for than 3 policies the first 10 years more than 5 more than 10 in a month. of operation years years

Cannot rebate at all

IRDA IRDA regulations on advertisements Regulations on include all printed and published Advertisement materials from Insurer as well as Agents and Disclosures KYC MWPA

Pg 231 Pg :233

Pg 237

Pg :235

Beneficiaries under MWPA can be Wife , Children , Wife & Children , Adopted Child

Pg :236

1

2%

3

IRDA

SEBI

Constitution

1

Assignee

Trustee

Policy holder

3

3. Integration

4. Amalgamation.

1

2. Placement

Pg :238

35%

Solicitation of Policy

1. Layering

District Court upto 20 L Sec40(1) of Insurance act 1938 prohibits agents from giving rebates IRDA 1999 , was passed in parliament establishing it as a corporate Body

Insurance ombusdmen

direct selling

Half of the commission

Grievance cells

10%

cross selling

An agent recommends a term plan in keeping with the ethical standards since it was suitable to client’s needs. Maximum 10% In such a case what is the percentage of commission which he can rebate so as to beat the competition _____ controls monetary system in RBI India In MWP Act Policy, claim is paid to Nominee

Pg :231

Insurance act 1938

557 558

Sec 41 (1) of insurance act 1938 prohibits all agents to give rebates

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

12 566 12 567

According to IRDA regulations the maximum percentage of first year commission to be paid to an insurance advisor is............. In the case of agent's death, the commission payable will be paid to.........

1. 30 %

2. 35%

1. his legal heirs 2. to his nominee

3. 40%

4. 45%

2

3. will stop automatically

4. Paid in lump sum to the survivors.

1

12

Issuance of a license to a person has been stipulated in................Act

1. Section 43 of the Insurance Act 1939

2. Section 42 of 3. Section 12 of 4. Section 34 of the Insurance the Insurance the Insurance Act 1938 Act 1922 Act 1932

2

12

Which official body decides to increase the interest rates?

1. Central bank of India

2. Reserve bank 3. Reserve 4. Central bank of India bank of country of country

2

568

569 12

3. License 1. Section 42 of 2. Section 42 of Which one of the section deals with section of the insurance act the insurance act the licensing of an agent? Insurance act 1938 1936 1938

12

Which regulations take care of the settlement of claims ?

570

1. Protection of Policy holder Interests regulation 2002

2. IRDA claim protection regulation 2002

4. License section of insurance agent act 1938

1

3. C.IRDA 4. D. Protection policy of claim settlement settlement regulation 2004 regulation 2002

1

571

12 572 12 573 574

12 12

575 12 576 12 577 12 578

4. 1. 2. Representative Representatives Representatives 3. Which of the following team s from from all from all Representative represents the members of GBIC ? Insurance insurance government s from IRDA institute of companies bodies India 3. IRDA Rahul is a licensed insurance agent. 4. Insurance 1. Company’s 2. IRDA Acts Regulations As agent he must carry out his role in Acts code of code of conduct. code of conduct. code of accordance with conduct. conduct. Under Married Women’s Property 1. The Life 2. The 4. The 3. The trustee. Act, 1874 a policyholder is Assured. beneficiaries. administrator. Who has the authority in insurance 3. Branch 1. Insurance 2. Desigted 4. Actuary. company to issue/cancel the agents Operations Company. Person. license Team. Married Woman’s Property Act 1874 1. Married 4. Married 2. Married Man 3. Married Son provides that a life insurance Policy Woman Daughter that has been taken out by: 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 atleast 5 yrs offence had a hav passed License criteria,criml offence in the he was less than punishment of since the past.given IRDA license.Why? 21 at that time less that 2000 sentence exception

13

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

13

basic qualifications of agent

sound mind & graduate

sound mind & good income level

Age and income level

Life Insurance Council

Insurance Broker Association

IRDA

1

3

3 2

2

3

1

Actuaries

1

Agent Licensing

2

Insurance Regulation Bodies

579

580 13 581

Which Institution was Constituted by Insurance Insurance Act 1938 Institute of India

His contacts in the market to solicit Insurance General Insurance Council

IAI (Institute of actuaries in India ). Actuary is an expert who applies statistical & mathematical methods to asses risk and calculate premium tables For License , a person should be Major , Of sound mind , graduate , no crimil records ,attended training , passed III exam Life Insurance council was constituted under Sec 64 of Insurance ACT 1938. Its the face of Life Insurance Industry

Pg :249

Pg :251

Pg :248

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

13

What is the role of tiol Insurance Academy?

3

Key regulatory Body

I , 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

Licensing of Insurance companies

3

Power of Central Govt over IRDA

Power of Govt to supersede IRDA is uble to discharge its Function or duties

Pg :246

RBI

SBI

3

tiol Insurance Academy

LIC

2

To regulate

To advise Government

To undertake training activities

To Advertise globally on Indian Insurance

Policy matters

complex technical issues

Promotiol activities

IRDA

SEBI

IRDA

Tariff Advisory Committee

582 13 583 13 584 585

13

According to IRDA act 1999, central governments involve in insurance industry over Who is a regulator, supervisor and monetary authority of the fincial system in India The insurance act of 1938 created which of these.

13

Rises

586

13

What is the key function of NIA

Provide suggestion for Premium calculation

13

Basing on which criteria the qualification of Agent is determined?

Address of the agent

587 588

13 589

13 590 13 591

13 592 13 593 594

13

If IRDA is uble to discharge its functions or duties, Central Government 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? Rahul is appointed as director of life insurance company, he cannot be an

Pricing element is done by

595 13

13 597

What does MDRT Stand for? As per AML regulation, it allows cash premium not over than

To be an active Design, link between implement and Global market & operate an Indian Life insurance Insurance training Industry Domicile status

Regulate the investment of funds by Life Insurance company

4

3

2

Has the power to Has the power to Has the power supersede the supersede the to supersede IRDA by issuing IRDA by issuing the IRDA by a bill in notification. issuing draft parliament

Can make changes in IRDA law

1

20%

26%

49%

51%

2

Insurance Advisor

Nodal officer

Chief actuary

Underwriter

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

Redressal

Research

Repository

3

Insurance Company

Life Insurance Council

CII

2

1

It contains only statements that mention the An agent is not required to obtain the agents me, logo prior approval of the insurer before & phone number. placing an advertisement when: The Institute of insurance and risk magement along with insurance Regulation education does what more

13

596

Decreases

De- tarrification is a process by which pricing of Insurance

Insurance can Reaches at a price their level as per product on their industry trends self past experiences.

IRDA Million Dollar Round Table

Major Double Rupees Tag

Major Dollar Round Tag

Mean Disposition Residence Time

Rs.20000

Rs.25000

Rs.5000

Rs.50000

4

IRDA Regulations, 2000

Insurance Act,1938

Indian Contract Act,1872

3

Which Act or Regulation provides that the Renewal commission is payable IRDA Act,1999 to the legal heirs of the Insurance agent in case of his death?

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

598

13

13 599 13 600

13 601

13 602 603

13

13 604 605

13

13 606

13

607 13 608 13 609

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

Central govt has authority of Direction to IRDA on It is the bounden duty of the Insurers to protect the interests of their policyholders from proposal acceptance to claim payment because of the

Rs. 300

for life

Rs500

Rs 1000

for 10 years from for 7 year from the date of the date of disqualification judgment

Any of them for 5 years since completion of the sentence imposed

2

4

Policy matter

To present statement of IRDA act in Parliament

May issue notification

All of them.

4

Behavioral requirements of E-Governce

Market competition

Requirements of the Life Insurance Council

Regulations of IRDA

4

a behavior that a behavior that a behavior that a behavior that is is based upon is based upon is based upon based upon the the positive the ritual the moral legal judgment of judgment of an judgment of an judgment of an an individual individual individual individual Research

In the context of IRDA’s code of conduct, the term Ethical behavior can be best described as IIRM is in areas of education and Who controls and regulate the rates, 1. Insurance advantages, terms and conditions that Regulatory and 2. Reserve Bank may be offered by insurers in the Development of India. respect of general insurance Authority. business. The Insurance Institute of India (III) 1. 1956 2. 1999 was formed in.....

Which council among the following focus on creating a positive image of 1. Life insurance 2. Consumer the insurance industry and would also council insurance council like to enhance the Consumer’s confidence on the same ?

4

1

3. Tariff Advisory Committee.

4. Insurance Institute of India.

3

3. 1955

4. 1947

3

3. tiol Insurance council

4. General insurance council

1

4. Need to complete 50 hours of IRDA training and paying Rs.50 for the issuance of duplicate license

1

4. Insurance Institute of India.

4

4.Insurance Institute of India

1

3. Need to 2. Need to complete 25 1. Need to complete 50 hours of Mr.Varun taken up his agency in July complete 25 hours of practical practical 5th 200 His lost his IRDA license hours of practical training and training and while travelling. His agency has also training and paying Rs.100 paying Rs.100 expired. What is the solution for paying Rs.50 for for the issuance for the Mr.Varun ? the issuance of of duplicate issuance of duplicate license license duplicate license Which organization was formed with 1. Institute of 3. Chartered 2. tiol Insurance purpose to promote insurance Actuaries of Insurance Academy. education and training in India? Indi1. Institute. 3. Insurance The face of the life Insurance industry 1. Life Insurance 2. Life Insurance Regulatory in India is ………..? Council Corporation Development Authority

13

For Insurance industry which 1. Life Insurance 2. Life Insurance association to take steps to Develop Council Corporation Education and research in insurance?

3. Insurance institute of India

4. Insurance Institute of India

1

13

Which is the body who provides grant to Insurance Regulatory Develompent Authoruty to carry out activites.

Central Government

SEBI

3

610

611

Agent offering rebate may be fined

RBI

LIC

Discuss

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

Ombudsman

Insurance Association

FERA

1

Governing Body of Insurance Council

What are the ways by which a policy holder can make complaints

email

Toll free No.

Newpaper

Email or Toll free Number

4

Governing Body of Insurance Council

14

what are the ways in which IRDA can be contacted . One is thru toll free number and other is

email

Insurance ombudsmen

visiting regiol office

Through Agents

1

Grievance Redress Cell of IRDA

14

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

Ombudsman

14

What is the period of award passed to the customer decided by ombudsman?

2months

3 months

5 months

6 months

2

Ombudsman

14

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

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

14

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

3

The role & responsibility of the agent is Ethics & Code important to have a good relation with the of Conduct customers

Pg :279

14

14

612

613

614

615

616

617

618 619 620

14 14

14 621 14 622 14 623 14 624 14 625

14 626

Integrated Grievance magement system (IGMS) also makes the complaints to be regsitered through E mail – [email protected] or Toll free number 155255 Integrated Grievance magement system (IGMS) also makes the complaints to be regsitered through E mail – [email protected] or Toll free number 155255

Insurance Institute of India

Complaint council bodies other than IRDA grievance readdress forum & COPA

Where one can approach in case of dispute The Authority of COPA is limited to what amount at the district level.

As per Regulation for protection of Policyholder’s interest 2002 (IRDA), Which insurer will have a grievance redressal System Which regulatory body has created a call center for logging a complaints of insurance Customers Within how many years a complaint can be made through consumer protection act. Insurance companies are required to honor the awards passed by the Insurance Ombudsman within how may days

he has to inform He has to the customer explain the He takes up he plans to that the co has reasons for with the higher change the plan broken rejection to the authorities relationship with customer the customer Consumer IRDA Forum 20,00,000.

50,00,000

1,00,00,000

2

Some Specific Insurer

Those Insurer who did not created Insurance Ombudsman System

All insurer

It is optiol

3

Life Insurance Council

IRDA

Insurance Association

Insurance Institute of India

2

One year

Two years

Three years

Five years

2

10 days

15 days

20 days

25 days

2

Some life and By all insurers. non life

4

Life Insurance Council

1

Sebi

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 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

Pg:268

Pg :265

Pg:268

2

10,00,000.

Only by few As per IRDA regulations IGMS should Only by non life selected insurers be mandatory set up by For the customer whose claim has been refused by the company, the three places where he/she should Consumer COPA follow up are – Ombudsman, IRDA Forum Customer Grievance Cell and ………………………..

Toll Free Number :155255 & Email

Pg :271

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

14 627 14 628 14 629

14

630

14 631 632

14

14 633

14 634

14 635 636

14

14 637 14 638 14 639 14 640

What is the stipulated time frame within which an insurer is supposed to respond after receiving any communication from its policyholders? The functions of the Insurance Ombudsman include: If a case is already before the consumer forum, then the ombudsman should

24 hours

1 day

10 days

30 days

3

Conciliation and making awards

Counseling

Repudiation of claim

Evaluating claim settlement

1

Dismiss the case

Give an award.

3

Indisputability clause

Redressal procedure

Pending decision from Ombudsman

2

1 month

2 months

6 months

2

IRDA

Actuaries

Underwriter

2

Give a joint Give a decision with the recommendation consumer forum

Generally insurance companies do not hold the premium in case of a fraud or misrepresentation. However, Fraudulent claim due to which of the following circumstances the insurer can retain the premium of the policyholder A policy holder is not satisfied with the services of the insurer and complains to ombudsman. In how many days 6 weeks from receipt of the complaint the ombudsman should pass the recommendation. The guidelines for annual assumed Life Insurance growth rate are given by Council AML Program of every insurer to include _______________, apart from Procedure, Training and audit.

Inspection by IRDA

Audit by Fince Ministry

Appointment of Inspection by Principal Compliance Auditor General Officer

Ravi was expecting a claim amount of Rs. 12, 00,000 from insurer. But it tiol Commission District Level State Level was rejected. He feels that it is repudiated on wrong reasons. Which consumer forum can he approach? For redress of grievances of the policyholders, a number of Authorities Consumer Consumer have been formed. Which of the Insurance Grievance Affairs Following authorities has been Ombudsman Redress Forum department empowered to hear the complaints and adjudicate? How many ombudsmen offices 1. 10 2. 12 3. 14 located in India? 1. Customer 2. Customer 3. Consumer What the me of department that is Complaint Grievance Affairs established by IRDA to deal with Department Department Department customer complaints? (CCD) (CGD) (CAD) The insurance ombudsman has been 1. policyholders 2. shareholders 3. insurers appointed to protect the interest of....... The charges were not fully disclosed 1. IRDA 2. Agents 3. Shareholders to the customers" is a common complaint against..... If any consumer is dissatisfied with 2. Grievance call 3. Compliance the customer care cell of any 1. Nodal officer center cell insurance company to whom they can escalate their grievances.

4

Mandal Level

2

IRDA

2

4. 15

2

4. Consumer Protection Department (CPD)

3

4. General insurers.

1

4. Underwriters

2

4. Compliance officer

1

Discuss

Discuss

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

14

Which is the Regulation that insists that all the insurance companies should provide the information about the insurance ombudsman of that region while sending the policy documents.

1. Policyholder grievance Regulation

14

A client demands the information on the current status of a policy indicating accrued bonus. The insurer should provide communication within

1. 10 Days.

14

To ensure that the customers complaints are handled effectively, IRDA has established

1. Integrated Grievance Magement System.

14

Insured can contact to seek the resolution of grievances they have against insurer to IRDA through:

641

642

643

644

14 645 14 646

14 647 15 648 649

15

651

4. 30 Days.

2. Interl 3. Grievance 4. Consumer Grievance Redressal Affairs Redressal Cell of Officer. Department. the Insurer. 2.insurancecomp 1.Complaint@go 3.irdacomplaint 4.Complaints@ [email protected] v.ird1.in [email protected] irda.gov.in n

3.Lien Clause

4.Utmost good faith apply

It might fell short of actual needed It will bring a Tax exemption and family would smaller premium will be lesser suffer

Benefit could fall The main reason why an agents act of short of the underselling insurance is treated as a fincial liabilities unethical behavior is

15

Ethics can be defined as…

15

Which is not unethical behavior in below statements?

652

653

3. 20 Days.

How Many offices of Ombudsmen the Government body has set up to 1.15 2.12 3.14 4.16 Resolving insured customer’s grievances. If there is no agreement or settlement if the complaint if the insurer and the recommendation is also not If it is acceptable if it is acceptable decides to decides to acceptable to the complaint, in this to the complaint to the insurer proceed legally proceed legally case the Ombudsman will grant an award If the agent recommends the client to termite an endowment plan and take Doing a fincial Switching Churning a whole life in order to earn higher planning commission its termed as Unethical behavior can affect the Insurance Agent Insurance Insurance Agent Insured person reputation & company company

Underselling life insurance comes under unethical practices because

15

2. 15 days.

Parvesh bought a policy an 1. Indisputability endowment plan but after one year 2.Principal of Clause (Section insurer. Found he had Aorta Surgery Indemnity apply 45) apply .now which will apply by insurer:

15 650

2. Policyholder’s 3. Ombudsman 4. Compliance Protection Regulation Regulatory regulation

Excessive Premium

SA ceased too early

2. Behavior that 3. A study of 1. Those values is based upon what makes we commonly the moral one’s own hold to be “good” judgments of an actions right or and “right”. individual wrong. 3. Explaining 1. Over selling of 2. Under selling all details of the Insurance of Insurance policy to policies. policies. customer.

2

1

4

Discuss

4

1

Discuss

2

1

3

1

1

Tax concession opportunity could be lost forever

1

4. All of the above.

4

4. Churning.

3

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]

15

Mr. Sharma is a newly recruited insurance advisor. To meet his month target he explains only the good points of newly launched plan to his customer. Here Mr. Sharma's behavior is............

1. ethical

2. unethical

3. professiol

4. Perfect.

2

15

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

15

Shankar, an adviser, sold a term insurance policy and unit-linked insurance policy (ULIP) to Amar, the client, who is unmarried and has no dependent. Consequently, Shankar’s action can be termed as

1. Underselling of insurance policies.

2. Churning.

3. Overselling of insurance policies.

4. Ethical practice by an adviser.

3

15

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.

1

25%

50%

more likely

less likely

75% less transparent

100% more transparetn

654

655

656

657 658 659

15 15

9 660

In case of term plan the premium for CI rider shall not exceed Reduced target of agent will have what impact on churning 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?

4 2

1

Neeraj Parekh - Divisional Training Manager - Rajkot Division. (M) 99 78 99 88 55, email: [email protected]