Set 3 - Pce Sample Questions 1. Which Act Is ... - Zurich

PCE Sample Questions (Eng) – Set 3
SET 3 : PCE SAMPLE QUESTIONS
1. Which Act is introduced for the purpose of regulating the conduct of the insurance business in
Malaysia?
A. The Insurance Act 1965 B. The Insurance Act 1996

C. The Company Act 1965 D. The Company Act 1963
2. Proceeds from a personal life insurance policy are __________.
A. Not taxable B. Taxable

C. Deductible D. Chargeable
3. Which of the following is not a stage in “The Consumer Buying Decision” process?
A. Problem recognition B. Information search

C. Post purchase evaluation D. Sales maximization
4. Generally, the policy owner will get _________________ upon the maturity of their policy.
A. Sum assured plus cash bonus B. Convert to life policy

C. To increase the sum assured D. Cash
5. The contribution condition states that, ___________.
A. The insured cannot receive more than the actual amount of his loss.
B. Where there are two or more policies covering one loss, the insured must claim from all the
policies.
C. The insured cannot recover from any other insurers except from his own insurer.
D. The insured must bear the first RMX of each and every loss.
6. How can risk be classified?
A. Pure & Fund Risk

B. Speculative & Particular Risk
C. Pure & Complex Risk
D. Fundamental & Particular Risk / Pure & Speculative Risk
7. Insurance deals with fortuitous losses which are:
A. Accidental losses
B. All losses
C. Physical hazards
D. Risks, the severity/frequency of which is within the control of the insured person
8. Which of the following is NOT a duty of an agent?
A. To exercise care & skills.

B. To perform his duty in a professional manner.
C. Not to disclose confidential information obtained during the course of his duties as an agent.
D. To make secret profits from any party with whom he deals on behalf of the principal.
Zurich confidential or proprietary information Version: Jan 2013

Prepared by: Agency Training & Development Page 1
9. The term twisting, as applied to health insurance refer to a/an:
A. Policy holder refusing a policy but accepting a similar policy with another company.
B. Agent misrepresentation facts to induce an insured to replace a policy.
C. Agent sharing a commission with the insured as an inducement to buy a policy.
D. Agent providing interim coverage between the application and the policy issue date.
10. There is a special form of bonus which is only payable when the policy becomes a claim after a
stipulated period. This bonus is _______________.
A. Maturity / Terminal B. Interim

C. Special D. Simple
11. Which of the following is not subject to the Income Tax Act 1967?
A. Employment Income
B. Dividends
C. Rents
D. Maturity proceeds from a life insurance policy
12. Which of the following are the rights of an AGENT?
I. To receive payment for his services.

II. Entitle to reimbursement of money which he has spent with the consent of his principal.
III. To perform his duties in the manner which he consider being appropriate.
IV. To delegate his duties to a sub-agent without approval.
A. II only B. II & IV only

C. I, II & III only D. All of the above
13. In measuring morbidity, which of the following elements must be considered?
I. Frequency
II. Consistency
III. Severity
A. III only B. I & II only

C. I & III only D. II & III only
14. A suitable table of health insurance premium rate meets all the following condition, EXCEPT:
A. Low loss ratio B. Equity among policy holders

C. Reasonableness in relocation to benefits D. Adequacy of premium
15. Typically, before an insurer will pay for Pre-Admission testing charges, the following criteria
must be met:
A. The pre-admission testing performed is for routine physical purposes.

B. Hospital admission must occur within 72 hours after the completion of the testing.
C. Expenses and not be covered if the patient as hospital in-patient.
D. Procedures must be ordered by the same physicians who ordered the confinement.

16. Miscellaneous hospital charges might be questioned as to their reasonableness, __________.
A. When the confinement does not appear to bear a reasonable relationship to the diagnosis.
B. If any corrective surgery is contemplated.
C. When the confinement exceeds 30 days.
D. When the confinement is the result of a sickness rather than an injury.
17. The term “Marketing” refer to the __________________.
A. Selling of intangibles products

B. Buying of an intangibles products
C. Strategy for the firm‟s business development
D. Methods of communication with the marketing manager
18. If an act which is not within his authority is performed by an agent, and the principal agrees to
accept the same as having been done on his behalf, it is known as ___________.
A. Acceptance B. Ratification
C. Authorization D. Assignment
19. What is the insured‟s „consideration‟ for an insurance contract to be effective?
A. Payment of premium B. Signature on the proposal form

C. Promise to pay D. Deposit
20. Under current Malaysian Tax regulations, a deduction up to a max of RM3000 in premium paid
for education, _______________ is allowable.
A. Or life insurance B. Or medical insurance

C. Health or life insurance D. Health or Personal Accident insurance
21. What are the categories of health insurance policies:
A. Indemnity and overall annual limit policy B. Benefits and life time limit policies
C. Indemnity and benefit policy D. Life time and overall annual limit policies
22. Nathan was hospitalized for 3 days in a private hospital this year. The hospital bill amount to
RM3000. This is his first claim on his hospital and surgical insurance policy this year. Given that
the policy has an annual deduction of RM1000, a co-payment requirement of 20%, and
assuming that the whole hospital bill is eligible for insurance reimbursement, how much will the
hospital & surgical insurance policy reimburse to Nathan?
A. RM2000 B. RM1800
C. RM1600 D. RM1400
23. Which section in the policy form introduces the parties to the contract and states that the
proposer has submitted an application for insurance including statements on health of the
insured person, first premium paid and agreement for subsequent premium payment as the fall
due?
A. The schedule B. Attestation

C. The proviso D. The preamble

24. Which statement best describe Decreasing Extra Mortality.
A. The types of extra risk that will remain constant from year to year.
B. The types of policy arrangement that provide an acceptable solution.
C. The types of risk which is present at the younger ages but will lessen in later life.
D. The types of risk that decreasing within duration and become more potent factor in failure to
survive.
25. Factors that influence mortality are:
I. Ethnicity
II. Marital status
III. Age
IV. Foreign residence
A. I & III only B. II & III only

C. I, II & III only D. All of the above
26. Which plans are generally in use as non – forfeiture provision?
I. Policy Loans
II. Automatic Premium Loan
III. Extended Term Assurance
IV. Paid-up Policy
A. I, II & III only B. I, II, & IV only

C. II, III & IV only D. All of the above
27. 2 main types of children policies are ________________ and _______________.
A. Protected Educational Policies, Anticipated Endowment Policies

B. Protected Educational Policies, Children Deferred Assurance
C. Protected Educational Assurance, Children Deferred Policies
D. Children Deferred Policies, Anticipated Endowment Policies
28. _____________ is often referred as “economic death”.
A. Premature death B. Retirement

C. Temporary disability D. Permanent disability
29. Subrogation is one of the principles of insurance. It is crucial because, ________________.
A. It prevents the insured from making profit out of his loss.

B. It helps the insured to claim from the third party.
C. It helps the insured to recover his loss.
D. It prevents the third party from making profit of their loss.
30. The definition of “Material fact” is ___________________.
A. A fact which will influence a prudent underwriter in deciding whether to accept the risk.
B. A fact which was known by the insurer after negotiation.
C. A fact which was known by both the insurer and the insured.
D. All of the above.

 Appointed as a proxy to attend annual

Meeting of a company on behalf of the shareholder
 Appointed to do specific act or transaction
31. Characteristics described above refer to _____________.
A. Agency B. General Agent

C. Special Agent D. Universal Agent
32. “An insurance contract is a legally binding agreement between an insured and his insurer. As in
other commercial agreements, certain essential requirements have to be satisfied before the
insurance agreements can be legally binding.”
Offer and Acceptance is one of the essential legal requirements in Insurance Contract.
Which statements are correct concerning Offer and Acceptance?
I. Offer is usually made by a proposer when he submitting a completed and signed proposal
form to an insurer or his agent and the insurer may accept the proposal after accessing the
proposed risk.
II. The offer and acceptance must be voluntary
III. When the proposer disagrees on the original term, the insurer may offer to provide
insurance on different terms and it is called Counter-offer.
IV. The acceptance can be made by the proposer or the insurer.
A. I, II & III only B. II, III & IV only

C. I, III & IV only D. I, II & IV only
33. Risk of proper damage from earthquake, flood and typhoon is classified under:
A. Fundamental Risk B. Particular Risk

C. Speculative Risk D. Social Risk
34. The two most common expense participation methods found in major medical expenses
insurance policies are:
A. deductibles and co-insurance

B. co-insurance and co-payment
C. co-payment and deductibles
D. cashless and reimbursement
35. In life insurance, the claim amount is determined at the very beginning of the contract. Such
contracts are __________________ contracts.
A. Indemnity B. Aleatory
C. Subrogation D. Proximate

36. Which of the following are considered as perils in insurance context?
I. Fire
II. Court Awards
III. Negligence
IV. Revenue
A. I & III only B. II & IV only

C. III & IV only D. I, II & IV only
37. Agent A was working with Company X. Then later Agent A changed to Company Y and brought
his customers to Company Y, what is this called?
A. Rebating B. Twisting
C. Concealment D. Misrepresenting
38. The charges for covering the cost of mortality alone is called ___________ and when the
charge is computed after taking account the elements of mortality and interest, it is called
_____________.
A. True premium, gross premium B. Risk premium, net premium

C. Net premium, risk premium D. Gross premium, loading
39. The chance of dying in a year at a specified age is commonly termed as ____________.
A. Rate of morbidity B. Rate of mortality

C. Rate of interest D. Rate of surviving
40. Below are the criteria for a „cashless‟ Medical and Health Insurance EXCEPT:
A. Hospital deposit may be waived.

B. Insured are not required to pay anything.
C. Letter of guarantee will be issued upon admittance to a panel hospital.
D. All eligible expenses will be taken care of by the insurer.
41. .Mr. & Mrs. Chong both aged 70 and 60 respectively received income payment from Annuity
Company. The income will be paid as long as either one annuitant is alive. The income payment
shall cease upon death of the last annuitant. What type of annuity contract has the couple
acquired?
A. Deferred annuity B. Single life annuity

C. Last survivor annuity D. Joint life annuity
42. Mr. Lim purchased a non- par whole life policy with RM 20,000 BSA and attached with an
Accidental Death Benefit Rider (RM 20,000 BSA). Mr. Lim met with an accident and pass away
but later prove that it happened due to drunk. How much compensation can his beneficiary get?
A. RM 20,000 B. RM 40,000
C. RM 60,000 D. RM 80,000

43. There are various ways in which the policyholder‟s share of surplus is distributed. Some of the
methods are :
I. Guaranteed Bonus
II. Interim Bonus
III. Simple Reversionary Bonus
IV. Compound Reversionary Bonus
A. I, II & IV only B. I, II & III only

44. Which of the following documents are generally acceptable as proof of age by life offices in
Malaysia?
A. Certified extract from Baptism Register.

B. School leaving certificate from a Government or Government aided school.
C. Identity Card issued by the Malaysian Government.
D. All of the above.
45. Family Takaful benefits shall be paid to participant depending on _____________.
I The death of the participant before the term of the takaful plan
II The termination of the contract by the participant
III The permanent total disability experienced by the participant
IV The survival of the participant to the end of the term of the takaful plan

C. I, II & IV only D. All of the above
46. The „cooling off‟ period for a life policy is ________.
A. 15 days B. 20 days
C. 28 days D. 30 days
47. Which of the following is the evidence of premium payment for the policyholder?
A. Official receipt B. Proposal form

C. Premium notice D. Acknowledgement form
Age (nearest birthday) Premium per RM 1000 Sum Assured

28 60.25
29 61.80
30 63.00
31 64.10
32 64.85
33 65.95
Table 1: Premium Rates for Male Live on 10-Year Endowment Policy
Name : En. Fatul Hakim Abdullah

Date of Birth : 6 March 1975
Policy Commencement : 29 May 2003
Policy Sum Assured : RM 100,000.00

48. Based on the above table, what is the premium per annum paid by En. Fatul?
A. RM 6,025.00 B. RM 6, 180.00
C. RM 6,300.00 D. RM 6,410.00
49. Which of the following are NOT the secondary functions of insurance?
I. Cost stability
II. Source of capital
III. Stimulates business enterprise
IV. Reduction of loss
A. I, II & III only B. I, II & IV only

C. II, III & IV only D. None of the above
50. Mary had bought a 5-year term plan. She decided to pay the premium on 1st of January of every
year. However, she had faced some personal financial problem in 4th year and she paid the
premium on 4th February in the said year.
In the above-mentioned case, Mary‟s insurance contract is considered as ________.
A. Lapsed B. Automatic Premium Loan

C. Illegal D. Effected
51. A manufacturer who is worried about product liability lawsuit arising from one of his products
can avoid it by not manufacturing that product. This called ________.
A. Loss prevention B. Risk avoidance

C. Risk transfer D. Risk retention
52. Which of the following is not true?
A. Insurance in concerned only with pure risks.

B. Characteristic of insurable risk is that the loss must be fortuitous.
C. Insurable risks should involve losses that are capable of being financially measured.
D. For a risk to be insurable, the loss should be so catastrophic in nature.
53. Risks that are insurable must fulfill certain characteristics. The main characteristics are:
I. financial value
II. large number of similar risks
III. catastrophic losses
IV. reasonable premium
A. I & II only B. I, III & IV only

C. I, II & IV only D. All of the above
54. The principle of ________ requires the insurer to restore the insured to the same financial
position as he had enjoyed immediately before the loss.
A. Subrogation B. Contribution
C. Indemnity D. Proximate cause

55. Which of the following are true about aspects of Takaful operation?
I. Participants of Takaful plans make contributions that will be accumulated in the Takaful
Fund that may be invested in areas acceptable to Syariah.
II. Profit sharing follows the principle of mudharabah.
III. Takaful business is not a contractual transfer of risk.
IV. The Takaful Company does not assume the risk.
A. I, II & III only B. I, III & IV only

56. Which of the following responsible for the registration of life insurance agents in Malaysia?
A. PIAM B. AMLA
C. NAMLIA D. LIAM
57. Which of the following is not an intermediary?
A. Life agent B. Reinsurer

C. General agent D. Insurance broker
58. Premium for individual medical and health insurance policies are usually
A. age banded and increase with age

B. age specified and decrease with age
C. age banded and decrease with age
D. age specified and increase with age
59. Which of the following are the roles of an insurance agent?
I. Bring financial relief to aggrieved dependants in insured people.

II. Inculcate the discipline of saving amongst the working population.
III. Bring profit in the event of property loss.
IV. Provide other forms of insurance related services to the public.
A. I, II & IV only B. I, II & III only

60. The following statements are true EXCEPT:
A. In marine insurance the insured needs only to have insurable interest at the time of loss
occurs to be able to enter into a valid contract.
B. For general insurance contracts, insurable interest must exist at the beginning and at the
time of loss.
C. For life insurance contracts, insurable interest must exist at the beginning only.
D. With respect to life and personal accident insurance, a person has limited insurable interest
in his own life and limbs.
61. Stated below are the basic rights of consumers according to the International Consumer
Movement EXCEPT:
A. Right to information B. Right to choose

C. Right to claim D. Right to redress

62. Self –regulation has to be introduced by the insurance industry with the objective to:
I. Instill discipline and promote healthy competition in the industry.
II. Provide some element of protection to insurance consumers.
III. To undertake research in the fields of insurance and other related subjects.
IV. Preparation and submission of annual accounts and the accompanying statements.
A. I & II only B. II & III only

C. I & III only D. II & IV only
63. For general insurance business, the main associations are:
I. PIAM
II. IBAM
III. AMLA
IV. LIAM
A. I & II only B. I & IV only

C. I, II & III only D. I, III & IV only
64. Stated below are the legal requirements of insurance contract EXCEPT:
A. Offer and acceptance B. Consideration

C. Utmost Good Faith D. Intention To Create Legal Relationship
65. Every agents falls into one of the following, EXCEPT:
A. Special agent B. General agent

C. Universal agent D. Underwriting agent
66. Some of the duties imposed on an agent in addition to his express contractual obligations are
provided as follows EXCEPT:
A. To render accounts to the principal as required.

B. Not to let his own interest conflict with his obligations to the principal.
C. To delegate his duties to a sub-agent without authority express or implied.
D. To comply with his principal‟s instructions and to notify him when compliance becomes
impossible.
67. Mortality and morbidity rates generally increase with
A. the age of the population

B. the increase in income of the population
C. the length of period required to recuperate from any injury
D. economic downturn
68. The relationship of insurer and insurance agent may be created in the following ways:
I. By implied appointment
II. By implication of the law
III. By subsequent ratification of an authorized act
IV. By statute

C. I, III & IV only D. All of the above

69. Function of the Marketing Department are:
I. Planning and controlling

II. Product Development
III. Pricing
IV. Promotion

70. There are _______ stages in the consumer buying decision process.
A. Three B. Four
C. Five D. Six
71. The long-term nature of the contract requires the insurer to adopt a cautious view of the many
factors that enter into the premium rate calculations. Principals amongst these factors are the
following:
I. Mortality
II. Expenses
III. Rate of investment returns
IV. Tax
A. I, II, III only B. I, II & IV only

72. To have _______, the purchaser of a life insurance policy must stand to suffer a financial loss
on the death of the person on whose life the life insurance policy has been bought.
A. Insurable Interest B. Monetary Interest

C. Material Interest D. All of the above
73. The risks covered by life insurance can be grouped under the following:
I. Premature Death
II. Permanent/Temporary disability
III. Retirement benefits
IV. Financial Guarantees

C. I, III, IV only D. All of the above
74. Which of the following statement is TRUE about participating contracts?
A. Participating contracts are mainly for protection purpose.

B. The benefit is generally made up of guaranteed benefit, regular bonuses and a final bonus.
C. The main benefit is generally guaranteed.
D. These contracts are often simple and easily compared, which means competition on
premium rates is keen.

75. _______ policy provide not only the payment of the face value of the policy upon the death of
the life assured during a fixed term of years, but also the payment of the full face amount at the
end of the said term if the life assured is living.
A. Whole Life B. Term

C. Endowment D. Annuity
76. Which of the followings are family takaful benefits?
I. Death benefit
II. Disability Benefit
III. Maturity Benefit
IV. Surrender Value
A. I, II, III only B. II, III & IV only

77. Which of the following plans are generally in use as non-forfeiture provisions?
I. Automatic Premium Loan

II. Paid Up Policy
III. Extended Term Insurance
IV. Policy Loans

C. II, III, IV only D. All of the above
78. “The insurer cannot deny liability on a policy after two years of its issue on the grounds of
misrepresentation or non-disclosure alone unless he can prove that such misrepresentation or
non-disclosure was made fraudulently by the insured”. The statement refer to:
A. Suicide Clause B. Incontestability Clause

C. Reinstatement Clause D. Paid-up Clause
79. Which of the following documents are generally acceptable as proof of age by life offices in
Malaysia?
I. International Passport
II. Certified extract from Baptism Register
III. School leaving certificate from Government or Government aided school
IV. Extract from service record of Government, Semi Government, Public Sector undertakings
and reputed commercial firms.

80. Select the various factors which influence mortality:

I. Ethnicity
II. Social Status
III. Age
IV. Occupation
A. I, II, III only B. II, III & IV only

C. III and IV only D. All of the above

81. To deal with sub-standard lives, the insurer usually employs any one of the following method:
I. Increasing Premium
II. Decreasing Death Benefit
III. Alternative Policy Plan
IV. Bonus Adjustment
A. All of the above B. I, II & III only

C. I, III, IV only D. II, III & IV only
82. Under financial underwriting, the proposal form will be scrutinized to look for the following:
I. The existence of insurable interest

II. Whether the amount of insurance applied for is commensurable with the financial standing
III. Whether the insured maintains multiple insurance policies with other insurers
IV. Whether other insurers have turned down the proposer‟s application for insurance coverage
A. I, II & III only B. I, III & IV only

83. When the premium charge is computed after taking into account the elements of mortality and
interest, it is called the _________________.
A. Pure Premium B. Net Premium

C. Risk Premium D. Gross Premium
84. In calculating the tabular (gross) premiums for non-participating policies, the elements normally
taken into account are the following, except:
A. Mortality B. Interest
C. Expenses D. Bonus loading
85. Under this type of regular premiums, the premium payments cease on death and no deduction
is made from the claim amount.
A. True premiums B. Installment premiums

C. Periodical premiums D. Regular premiums
86. In a proposal form, the following information are normally required:
I. Personal particular
II. Details of insurance
III. Personal and family history
IV. Occupation, residence, travel and hazardous pursuits
A. I, II & IV only B. I, III & IV only

C. I, II & IIII only D. All of the above
87. When any adverse history of applicant‟s health is revealed, what types of document will an
insurer normally required?
A. Medical report B. Agent‟s report

C. Attending physician‟s report D. Proposal form

88. The section of policy which is signed by certain officers of the company authorized to do so is:
A. The Proviso B. The Schedule

C. The Preamble D. The Attestation
89. Endorsements of an insurance policy can be done at ___________.
A. Time of issue of the policy B. After issue of the policy

C. Before issue of the policy D. A and B
90. Section 161 of Insurance Act 1996 provides that a claim upon the death of policy owner must be
paid within how many days upon receipt of intimation of the claim?
A. 30 days B. 45 days
C. 15 days D. 60 days
91. Under Section 169 of Insurance Act 1996, the payment of claim can proceed to the proper
claimant without letters of probate or administration. Insurance may pay _________.
A. The full amount if the proceed do not exceed RM10,000.

B. The full amount if the proceed do not exceed RM100,000.
C. RM10,000 if the policy exceeds RM10,000.
D. None of the above.
92. In the case of endowment insurance, the amount payable in the event the policyholder survives
to the end of the term of the contract is called ________.
A. Settlement Options B. Maturity claims

C. Probate of will D. Annuity
93. If the insurer has doubt in the validity of the documents furnished by the policyholder during any
claims, the insurer can _________.
A. Carry out an investigation B. Reject the claim immediately

C. Void the policy D. None of the above
Age (next birthday) Premium per RM1000 Sum Assured

30 42.80
31 43.60
32 44.10
33 45.20
34 46.00
Table 1: Premium rates for male lives on 25-year endowment policy
For question 94 and 95, please refer Table 1
94. Mr.Lim
Date of birth : 20 April 1972
Policy commencement date : 4 April 2004
Policy Sum Assured : RM100,000

What is the premium per annum paid by Mr. Lim?
A. RM4,360.00 B. RM4,410.00
C. RM4,520.00 D. RM4,600.00
95. Ms.Tan
Date of birth : 21 January 1970
Policy commencement date : 1 April 2004
Policy Sum Assured : RM100,000
Assuming female lives as 3 years younger, what is the premium per annum paid by Ms. Tan?
A. RM4,280.00 B. RM4,360.00
C. RM4,410.00 D. RM4,520.00
Age (nearest birthday) Premium per RM1000 Sum Assured

28 60.25
29 61.80
30 63.00
31 64.10
32 64.85
33 65.95
Table 2: Premium rates for male lives on 10-year endowment policy

For question 96, please refer Table 2
96. Encik Abdullah Salim

Date of birth : 6 March 1975
Policy Commencement date : 29 May 2003
Polcy Sum Assured : RM100,000
What is the premium per annum paid by Encik Abdullah?
A. RM6,025.00 B. RM6,180.00
C. RM6,300.00 D. RM6,410.00
97. What are the elements used in the principal of Actuarial Valuation of a life office?
I. Distribution of Surplus
II. Interest
III. Valuation of Liabilities
IV. Valuation of Assets
A. I, III & IV only B. I & III only

C. III & IV only D. All of the above
98. The followings are the characteristics of Maturity/Terminal Bonus:

I. It is only payable during maturity or death claims.
II. Once it is declared on each valuation, it is only valid for the period up to the next valuation.
III. It is a proportion of the sum assured.
IV. It is guaranteed and is strictly for non-participating policies.
A. I, II & III only B. III & IV only

C. II & III only D. I & II only

99. The term life insurance used in the Code of Ethics and Conduct covers the following types of
insurance, EXCEPT:
I. Annuities
II. Pension Contracts
III. Home-service
IV. Permanent Health Insurance
A. II & III only B. III only

C. III & IV only D. None of the above
100. Who is responsible to monitor the compliance of life insurance intermediaries?
A. Audit/Disciplinary Committee B. Bank Negara Malaysia

C. Policy holders D. Insurance agents

ANSWERS
1 B 26 C 51 B 76 C
2 A 27 B 52 D 77 A
3 D 28 D 53 C 78 B
4 A 29 A 54 C 79 D
5 B 30 A 55 D 80 D
6 D 31 D 56 D 81 A
7 A 32 D 57 B 82 D
8 D 33 A 58 A 83 B
9 A 34 C 59 A 84 D
10 A 35 B 60 D 85 A
11 D 36 A 61 C 86 D
12 C 37 B 62 A 87 C
13 C 38 B 63 C 88 D
14 D 39 B 64 C 89 D
15 A 40 B 65 D 90 D
16 A 41 C 66 C 91 B
17 C 42 A 67 A 92 B
18 B 43 D 68 B 93 A
19 A 44 D 69 D 94 B
20 B 45 C 70 C 95 C
21 D 46 A 71 D 96 A
22 A 47 A 72 A 97 C
23 D 48 A 73 D 98 D
24 C 49 D 74 B 99 D
25 D 50 A 75 C 100 A


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PCE Sample Questions (Eng) – Set 3

SET 3 : PCE SAMPLE QUESTIONS

A. The Insurance Act 1965 B. The Insurance Act 1996

2. Proceeds from a personal life insurance policy are __________.

A. Not taxable B. Taxable

A. Problem recognition B. Information search

A. Sum assured plus cash bonus B. Convert to life policy

5. The contribution condition states that, ___________.

6. How can risk be classified?

A. Pure & Fund Risk

7. Insurance deals with fortuitous losses which are:

8. Which of the following is NOT a duty of an agent?

A. To exercise care & skills.

Zurich confidential or proprietary information Version: Jan 2013

9. The term twisting, as applied to health insurance refer to a/an:

A. Maturity / Terminal B. Interim

12. Which of the following are the rights of an AGENT?

I. To receive payment for his services.

A. II only B. II & IV only

13. In measuring morbidity, which of the following elements must be considered?

A. III only B. I & II only

A. Low loss ratio B. Equity among policy holders

A. The pre-admission testing performed is for routine physical purposes.

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16. Miscellaneous hospital charges might be questioned as to their reasonableness, __________.

17. The term “Marketing” refer to the __________________.

A. Selling of intangibles products

19. What is the insured‟s „consideration‟ for an insurance contract to be effective?

A. Payment of premium B. Signature on the proposal form

A. Or life insurance B. Or medical insurance

21. What are the categories of health insurance policies:

A. The schedule B. Attestation

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24. Which statement best describe Decreasing Extra Mortality.

25. Factors that influence mortality are:

A. I & III only B. II & III only

26. Which plans are generally in use as non – forfeiture provision?

A. I, II & III only B. I, II, & IV only

27. 2 main types of children policies are ________________ and _______________.

A. Protected Educational Policies, Anticipated Endowment Policies

28. _____________ is often referred as “economic death”.

A. Premature death B. Retirement

29. Subrogation is one of the principles of insurance. It is crucial because, ________________.

A. It prevents the insured from making profit out of his loss.

30. The definition of “Material fact” is ___________________.

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 Appointed as a proxy to attend annual

31. Characteristics described above refer to _____________.

A. Agency B. General Agent

A. I, II & III only B. II, III & IV only

A. Fundamental Risk B. Particular Risk

A. deductibles and co-insurance

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36. Which of the following are considered as perils in insurance context?

A. I & III only B. II & IV only

A. True premium, gross premium B. Risk premium, net premium

A. Rate of morbidity B. Rate of mortality

A. Hospital deposit may be waived.

A. Deferred annuity B. Single life annuity

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A. I, II & IV only B. I, II & III only

A. Certified extract from Baptism Register.

27. 2 main types of children policies are __ and _.