CHAPTER 9

1) Fact finding is a process that enables the insurance adviser to

Identify clients financial planning needs
Quantity them
Prioritise them based on the resources available for investment
All above
2) Mr. Raj wants to accumulate money for his sons education. The insurance agent, through the
fact finding process can help to identify
The date at which the amount will be required
Quantify the amount requires
Calculate the investment amount
All above
3) Good fact finding reveals
Practical needs
Both

Emotional considerations
None of the above

4) Objectives of fact Findings are

Identify needs
Gathering client data
Both
None of the above
5) Objectives of Fact findings are
Analysing client cash flows
Both

Provide for anticipated changes

None of the above

6) The common form of fact finding is a structured interview. The stages are
Making the client feel comfortable and relaxed
Explanation of the fact-finding process and its purpose
The information gathering session
All above
7) The common form of fact finding is a structured interview. The stages are
A discussion of priorities and the clients personal concerns
An agreement, in principle, of the main problems to be addressed by the advisers report
Both
None of the above
8) A fact finding form is divided into following sections
Personal details
Family details
Employment details

All above

9) A fact finding form is divided into following sections

Financial details
Existing insurance and investments
Monthly income and expenditure analysis
All above
10) A fact finding form is divided into following sections
Financial planning objectives and considerations
Both

Future changes
None of the above

11) The agent will normally ask for the names, ages, state of health and occupation of the clients
Spouse
Children
Parents
All above
12) ________ is a fund into which the employee and the employer contribute regularly a certain
portion of the employees salary
An employee provident fund
Depository fund
Pension Fund
None of the above
13) An employee provident fund is managed by
Employees Provident Fund Organisation
Both

The employer
None of the above

14) An employee provident fund is governed by Employees Provident Funds and Miscellaneous
Provisions Act
1951
1952
1953
1954
15) Mr. Ravi, an insurance agent needs to record the details of Mr. Rajeshs (policy holder) assets
for financial details as
Residential property
Mutual fund investment
Investment in gold
All above
16) If the agent finds that the client has limited assets then
Require to match the need
Fund liquidity
Both
None of the above
17) Monthly Expenditure analysis includes expenses as
Utility Payment
Tax
Loan Repayment

All Above

18) Financial Planning objectives considerations includes questions of existing

Life and health coer
Disability insurance
Spread of investment

All Above

19) Financial Planning objectives considerations includes questions of existing

Level of regulr saving
Retirement age and projected retirement fund
Both
None of the above
20) The agent needs to ask plans ambition of the client for
Family
Childrens education and marriage
Changing homes in the future
All above
21) The agent needs to ask plans ambitions of the client for
Career, occupation or business
Investments and loan finance
Both
None of the above
22) The agent needs to ask plans ambitions of the client for
Retirement
Estate on death
Both
23) Agent needs to be clear main categories of financial details as
Assets liabilities
Income, expenditure savings
Life health insurance
All above

None of the above

24) Agent needs to be clear main categories of financial details as

Retirement provision
Wills inheritance plans
Both
None of the above
25) The main task of agent is
Identifying the amount for the needs of client
Identifying clients affordable contribution
Evaluating reviewing the performance
All above
26) After fact finding, analysis is required to include
Does client have sufficient insurance cover
Does client have sufficient fund to manage in case of unemployment
Does client have sufficient retirement provision
All above
27) Product short listing process includes
Set out each identified need in priority order
Research information necessary to prepare a unified financial recommendation
Carry out calculation(s) of amount(s) yet to be provided for
All above
28) Product short listing process includes
Identify suitable products and eliminate all but the most suitable
Both
None of the above
29) Agent task in product short listing process is
To identify suitable products, their main features and their tax treatment
To check on other external sources available to meet the identified needs
Both
None of the above
30) Agent needs to locate product
That satisfy a given need
That satisfy a given need with lowest cost

That require low cost

None of the above

31) With fact-finding, good practice in making product recommendations requires

Efficient procedures
High ethical standards
Both
None of the above
32) _________ consists of reminding the client of the needs and priorities agreed, in principle,
during fact-finding.
Checking the clients commitment
Outline the concept behind the detailed recommendations
Complete the product documentation
Seek client authority to proceed
33) An Agent should aware of
Any restrictions in benefits of the product
Both

Risk that involve in an investment loss

None of the above

34) Benefit illustration documents, as per IRDA guidelines shows

Actual benefit
Guaranteed benefits
Projected benefits
Guaranteed benefits non guaranteed benefits
35) Benefit illustration documents, as per IRDA guidelines shows returns at
6% 8%
6% 9%
6% 10%
6% 11%
36) Documents as voted ID card, ID card for defence personnel, PAN card, any identification card
issued by a government body etc are required for
Identity proof
Address proof
Income proof
All above
37) Documents as electricity bill, telephone bill, premium receipt of any insurance company, rations
card, bank pass book are required for
Identity proof
Address proof
Income proof
All above
38) Documents as driving licence, passport are accepted as
Identity proof
Address proof
Income proof
39) A Fact and shows the current ___________ position of the client
Social
Financial
Physical

Address income proof

Socio economical

40) _________ involves identify whether the cient has made sufficient financial provision to meet
unpredictable and predictable needs
Need Based Selling
Need Assessment
Need Analysis
Need based solution