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No a chapter_tit
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INTRODUCT
Risk transfer through risk ION TO
1 pooling is called____. Savings Investments Insurance Risk mitigation 3 INSURANCE
The measures to reduce INTRODUCT
chances of occurrence of risk ION TO
2 are known as _______. Risk retention Loss prevention Risk transfer Risk avoidance 2 INSURANCE
To enjoy peace of
mind and plan
To make money from one’s INTRODUCT
By transferring risk to insurer, it To become careless insurance in the event To ignore the potential business more ION TO
3 becomes possible _____. about our assets of a loss risks facing our assets effectively 4 INSURANCE
INTRODUCT
Origins of modern insurance Malhotra ION TO
4 business can be traced to ____. Bottomry Lloyds Rhodes Committee 2 INSURANCE
In insurance context Ã
¢â‚¬Ëœrisk retention’ One decides to INTRODUCT
indicates a situation where Possibility of loss or Loss producing event Property is covered by bear the risk and ION TO
5 ______. damage is not there has no value insurance its effects 4 INSURANCE
Insurance pays INTRODUCT
Which of the following Insurance protects the Insurance prevents its Insurance reduces when there is loss ION TO
6 statement is true? asset loss possibilities of loss of asset 4 INSURANCE
Out of 400 houses, each valued
at Rs. 20,000, on an average 4
houses get burnt every year
resulting in a combined loss of
Rs. 80,000. What should be the
annual contribution of each INTRODUCT
house owner to make good this ION TO
7 loss? Rs.100/- Rs.200/- Rs.80/- Rs.400/- 2 INSURANCE
Insurance is a
Insurance is a method of Insurance is a method Insurance is a method method of
sharing the losses of a à of transferring the risk of sharing the losses of transferring the INTRODUCT
Which of the following ¢â‚¬Ëœfew’ by of an individual to a ‘manyà gains of a few to ION TO
8 statements is true? ‘many’ another individual ¢â‚¬â„¢ by a few the many 1 INSURANCE
 To find out
Why do insurers arrange for whether
survey and inspection of the To find out how the To find out whether neighbouring INTRODUCT
property before acceptance of To assess the risk for insured purchased the other insurers have also property also can ION TO
9 a risk? rating purposes property inspected the property be insured 1 INSURANCE
Which of the below option best INTRODUCT
describes the process of Sharing the losses of Sharing the losses of One sharing the losses Sharing of losses ION TO
10 insurance? many by a few few by many of few through subsidy 2 INSURANCE
Which of the below is not an WHAT LIFE
element of the life insurance INSURANCE
11 business? Asset Risk Principle of mutuality Subsidy 4 INVOLVES
WHAT LIFE
Who devised the concept of INSURANCE
12 HLV? Dr. Martin Luther King Warren Buffet Prof. Hubener George Soros 3 INVOLVES
Which of the below mentioned WHAT LIFE
insurance plans has the least or INSURANCE
13 no amount of savings element? Term insurance plan Endowment plan Money back plan Money back plan 1 INVOLVES
WHAT LIFE
Which among the following INSURANCE
14 cannot be termed as an asset? Car Human Life Air House 3 INVOLVES
WHAT LIFE
Which of the below cannot be Living with INSURANCE
15 categorized under risks? Dying too young Dying too early Natural wear and tear disability 3 INVOLVES
Life insurance policies The certainty of
Life insurance policies are contracts of risk event in case
are contracts of assurance while In case of general of general
indemnity while general general insurance insurance the risk event insurance WHAT LIFE
Which of the below statement insurance policies are policies are contracts of protected against is increases with INSURANCE
16 is true? contracts of assurance indemnity certain time 2 INVOLVES
Which among the following
methods is a traditional
method that can help WHAT LIFE
determine the insurance INSURANCE
17 needed by an individual? Human Economic Value Life Term Proposition Human Life Value Future Life Value 3 INVOLVES
 Which of the below is the most
appropriate explanation for the
fact that young people are
charged lesser life insurance Mortality is WHAT LIFE
premium as compared to old Young people are Old people can afford Mortality is related to inversely related INSURANCE
18 people? mostly dependant to pay more age to age 3 INVOLVES
Which of the below is not an WHAT LIFE
advantage of cash value Safe and secure Inculcates saving Income tax INSURANCE
19 insurance contracts? investment discipline Lower yields advantages 3 INVOLVES
Which of the below is an Returns subject to WHAT LIFE
advantage of cash value corroding effect of Low accumulation in Secure INSURANCE
20 insurance contracts? inflation earlier years Lower yields investment 4 INVOLVES
LEGAL
Capacity of PRINCIPLES
Which element of a valid parties to OF LIFE
21 contract deals with premium? Offer and acceptance Consideration Free consent contract 2 INSURANCE
________relates to inaccurate LEGAL
statements, which are made PRINCIPLES
without any fraudulent OF LIFE
22 intention. Misrepresentation Contribution Offer Representation 1 INSURANCE
LEGAL
_________involves pressure PRINCIPLES
applied through criminal OF LIFE
23 means. Fraud Undue influence Coercion Mistake 3 INSURANCE
They are contracts
between two parties
(insurer and insured) LEGAL
Which among the following is They are verbal as per requirements of They are similar PRINCIPLES
true regarding life insurance contracts not legally They are verbal which Indian Contract Act, to wager OF LIFE
24 contracts? enforceable are legally enforceable 1872 contracts 3 INSURANCE
LEGAL
Which of the below is not a PRINCIPLES
valid consideration for a OF LIFE
25 contract? Money Property Bribe Jewellery 3 INSURANCE
 LEGAL
Which of the below party is not PRINCIPLES
eligible to enter into a life Government OF LIFE
26 insurance contract? Business owner Minor House wife employee 2 INSURANCE
Lying about known Not revealing known Disclosing known LEGAL
Which of the below action medical conditions on material facts on an material facts on an PRINCIPLES
showcases the principle of à an insurance proposal insurance proposal insurance proposal Paying premium OF LIFE
27 ¢â‚¬Å“Uberrima Fidesâ€Â? form form form on time 3 INSURANCE

LEGAL
Which of the below is not Father taking out Spouses taking out Friends taking out Employer taking PRINCIPLES
correct with regards to insurance policy on his insurance on one insurance on one out insurance on OF LIFE
28 insurable interest? son another another employees 3 INSURANCE
Either at time of LEGAL
When is it essential for Insurable interest is not policy purchase or PRINCIPLES
insurable interest to be present At the time of taking out required in case of life at the time of OF LIFE
29 in case of life insurance? insurance At the time of claim insurance claim 1 INSURANCE
Find out the proximate cause
for death in the following
scenario?

Ajay falls off a horse and breaks

his back. He lies there in a pool
of water and contracts LEGAL
pneumonia. He is admitted to PRINCIPLES
the hospital and dies because OF LIFE
30 of pneumonia. Pneumonia Broken back Falling off a horse Surgery 3 INSURANCE
An individual with an
aggressive risk profile is likely
to follow wealth FINANCIAL
31 investment style. Consolidation Gifting Accumulation Spending 3 PLANNING
Which among the following is a Savings Bank FINANCIAL
32 wealth accumulation product? Bank Loans Shares Term Insurance Policy Account 2 PLANNING
 Savings can be considered as a Postponement of
composite of two decisions. consumption and
Choose them from the list Risk retention and Gifting and Spending and parting with FINANCIAL
33 below. reduced consumption accumulation accumulation liquidity 4 PLANNING
During which stage of life will
an individual appreciate past FINANCIAL
34 savings the most? Post retirement Earner Earner Just married 1 PLANNING
Greater the
What is the relation between Greater the investment Greater the investment investment
investment horizon and Both are not related at horizon the larger the horizon the smaller the horizon more tax FINANCIAL
35 returns? all returns returns on the returns 2 PLANNING
Which among the following can
be categorised under FINANCIAL
36 transactional products? Bank deposits Life insurance Shares Bonds 1 PLANNING
Which among the following can
be categorised under FINANCIAL
37 contingency products? Bank deposits Life insurance Shares Bonds 2 PLANNING
Which of the below can be
categorised under wealth FINANCIAL
38 accumulation products? Bank deposits Life insurance General insurance Shares 4 PLANNING
is a rise in the general level of
prices of goods and services in
an economy over a period of FINANCIAL
39 time. Deflation Inflation Stagflation Hyperinflation 2 PLANNING
Which of the below is not a
strategy to maximise Investment Insurance FINANCIAL
40 discretionary income? Debt restructuring Loan transfer restructuring purchase 4 PLANNING
________life insurance pays off LIFE
a policyholder s mortgage in INSURANCE
the event of the person s PRODUCTS
41 death. Term Mortgage Whole Endowment 2 – I
The______the premium paid
by you towards your life
insurance, the _______will be LIFE
the compensation paid to the INSURANCE
beneficiary in the event of your PRODUCTS
42 death. Higher, Higher Lower, Higher Higher, Lower Faster, Slower 1 – I
 There is no
provision in a
Term insurance can be term insurance LIFE
Which of the below option is Term insurance plans All term insurance bought as a stand-alone plans to convert it INSURANCE
correct with regards to a term come with life-long plans come with a policy as well as a rider into a whole life PRODUCTS
43 insurance plan? renewability option built-in disability rider with another policy insurance plan 3 – I
LIFE
INSURANCE
In decreasing-term insurance, PRODUCTS
44 the premiums paid over time. Increase Decrease Remain constant Are returned 3 – I
Using the conversion option LIFE
present in a term policy you INSURANCE
can convert the same Decreasing term PRODUCTS
45 to_______. Whole life policy Mortgage policy Bank FD policy 1 – I
Protection against the
loss of economic value LIFE
of an individualà INSURANCE
What is the primary purpose of Safe investment ¢â‚¬â„¢s productive Wealth PRODUCTS
46 a life insurance product? Tax rebates avenue abilities accumulation 3 – I
An individual who
needs an LIFE
Who among the following is An individual who needs An individual who An individual who insurance product INSURANCE
best advised to purchase a money at the end of needs insurance and needs insurance but has that gives high PRODUCTS
47 term plan? insurance term has a high budget a low budget returns 3 – I
Mortgage
redemption plans LIFE
Which of the below statement Death benefit amount Premium amount are an example of INSURANCE
is incorrect with regards to decreases with the term decreases with the Premium remains level decreasing term PRODUCTS
48 decreasing term assurance? of coverage term of coverage throughout the term assurance plans 2 – I
LIFE
Which of the below statement It has both a death INSURANCE
is correct with regards to It has a death benefit It has a survival benefit benefit as well as a It is similar to a PRODUCTS
49 endowment assurance plan? component only component only survival component term plan 3 – I
LIFE
Which of the below is an INSURANCE
example of an endowment Mortgage Redemption Credit Life Insurance PRODUCTS
50 assurance plan? Plan Plan Money Back Plan Whole Life Plan 3 – I
51 What does inter-temporal Postponing allocation of Allocation of resources Temporary allocation of Diversification of 2 LIFE
allocation of resources refer resources until the time over time resources resource INSURANCE
 PRODUCTS
to? is right allocation – II
LIFE
Which among the following is a Clear and visible Well defined cash and Rate of return is INSURANCE
limitation of traditional life Yields on these policies method of arriving at savings value not easy to PRODUCTS
52 insurance products? is high surrender value component ascertain 4 – II
LIFE
INSURANCE
Where was the Universal Life PRODUCTS
53 Policy introduced first? USA Great Britain Germany France 1 – II
LIFE
Who among the following is People who are risk INSURANCE
most likely to buy variable life People seeking fixed averse and do not Knowledgeable people Young people in PRODUCTS
54 insurance? return dabble in equity comfortable with equity general 4 – II
ULIP’s are
opaque with regards LIFE
Which of the below statement Value of the units is to their term, INSURANCE
is true regarding ULIPà determined by a Investment risk is expenses and savings ULIP’s are PRODUCTS
55 ¢â‚¬â„¢s? formula fixed in advance borne by the insurer components bundled products 3 – II
LIFE
All of the following are Policy owner selects Minimum Death INSURANCE
characteristics of variable life Flexible premium Cash value is not where savings reserve benefit is PRODUCTS
56 insurance EXCEPT: payments guaranteed is invested guaranteed 1 – II

Which of the below is correct

with regards to universal life
insurance?

Statement I: It allows policy

owner to vary payments LIFE
Statement II: Policy owner can INSURANCE
earn market based rate of PRODUCTS
57 return on cash value I is true II is true I and II are true I and II are false 3 – II
58 All of the following is true Unit holder can choose Life insurer provides Units may be purchased ULIP policy 2 LIFE
regarding ULIP’s between different kind guarantee for unit by payment of a single structure is INSURANCE
EXCEPT: of funds values premium or via regular transparent with PRODUCTS
premium payments. regards to the – II
insurance
expenses
 component
As per IRDA norms, an
insurance company can provide
which of the below non-
traditional savings life
insurance products are
permitted in India?

Choice I: Unit Linked Insurance LIFE

Plans INSURANCE
Choice II: Variable Insurance PRODUCTS
59 Plans I only II only I and II both Neither I nor II 3 – II
LIFE
Correlation of life Correlation of life Amalgamation of Separation of the INSURANCE
What does unbundling of life insurance products with insurance products protection and savings protection and PRODUCTS
60 insurance products refers to? bonds with equities element savings element 4 – II
Which of the below risk cannot PENSION
be addressed through AND
61 pensions? Life longevity Inflation Investment risk Early death 4 ANNUITIES
With relation to annuities, With relation to
explain what does à annuities, explain what Period during which PENSION
¢â‚¬Å“Liquidation periodà does “Liquidation insurer makes annuity Time taken to build up AND
62 ¢â‚¬Â refer to? period†refer to? payments the corpus Insolvency period 2 ANNUITIES

Amount of annuity payable

depends on which of the
following:

1. Principal sum of money

2. Investment period
3. Rate of return PENSION
4. Duration of annuity AND
63 payments 1 and 2 1,2 and 3 1,3 and 4 1,2,3 and 4 4 ANNUITIES
 Amount of annuity payable is
inversely related to which of
the following:

1. Principal sum of money

2. Investment period
3. Rate of return PENSION
4. Duration of annuity AND
64 payments 1 only 2 only 3 only 4 only 4 ANNUITIES
PENSION
What is the basic contingency Post-retirement income AND
65 associated with pensions? Mortality Morbidity security Disability 3 ANNUITIES
Lumpy cash flows
at equal time
Equal cash flows at Equal cash flows at Lumpy cash flows at intervals for a PENSION
Which of the below best equal time intervals equal time intervals for equal time intervals specific time AND
66 describes an ordinary annuity? forever a specific time period forever period 2 ANNUITIES
From the choices mentioned Rs. 2000 received today,
below, select the one that Rs. 2000 received next PENSION
cannot be categorised as an year and Rs. 2000 Mortgage AND
67 annuity. received in 2 years Electricity Bill Car payments payments 2 ANNUITIES
In an ordinary annuity,
payments are made or PENSION
received 6 months before AND
68 period. At the beginning At the end On maturity expiry 2 ANNUITIES
__________is an annuity with PENSION
an infinite life and making AND
69 continuous annual payments. APR Amortised loan Perpetuity Principal 3 ANNUITIES
__________is a term used to
refer pensions that have PENSION
some level of Market Pension AND
70 Government administration. Insurance Pension Fund Public Pension Fund Private Pension Fund Fund 2 ANNUITIES
Income
International Regulatory Indian Regulatory Insurance Regulatory Regulatory &
IRDA stands for & Development & Development & Development Development HEALTH
71 ________________. Authority Authority Authority Authority 3 INSURANCE
 The term TPA refers to
__________.
(Answer with regards to health Third Party Third Party HEALTH
72 insurance) The Primary Associate To Provide Assistance Administrator Assistance 2 INSURANCE
Group of
unrelated
individuals
formed for the
Which of the below group purpose of
would not be eligible for a Employees of a Credit card holders of Professional association availing group HEALTH
73 group health insurance policy? company an organisation members health insurance 3 INSURANCE
Who cannot be covered under HEALTH
74 a family floater policy? Children Spouse Parents-in-law Maternal uncle 4 INSURANCE
As per IRDA regulations issued
in February 2013, what is the
grace period allowed beyond
the expiry date of the policy, HEALTH
75 for renewal? 15 days 30 days 45 days 60 days 2 INSURANCE

Identify the form of insurance

that is depicted in the following
scenario.
Scenario: Patient pays the
health provider and is
subsequently reimbursed by HEALTH
76 the health insurance company. Service Benefit Direct contracting Indemnity Casualty 3 INSURANCE
Moral hazard by health
insurance companies can result Abuse of health HEALTH
77 in _________. Community rating Adverse selection insurance Risk pooling 2 INSURANCE
Primary care can be described First point of contact
as _______________________ Care provided to patient Care provided in for people seeking Care provided by HEALTH
78 . in an acute setting hospitals healthcare Doctors 3 INSURANCE
___________is an insured
who undergoes treatment
after getting admitted in a HEALTH
79 hospital. Inpatient Outpatient Day patient House patient 1 INSURANCE
80 _________ refers to a Day care centre Network provider Third Party Domiciliary 2 HEALTH
hospital/health care provider Administrator INSURANCE
enlisted by an insurer to
 provide medical services to an
insured on payment by a
cashless facility.
The sum assured under keyman
insurance policy is generally APPLICATIO
linked to which of the NS OF LIFE
81 following? Keyman income Business profitability Business history Inflation index 2 INSURANCE
Mortgage redemption APPLICATIO
insurance (MRI) can be Increasing term life Decreasing term life Universal life NS OF LIFE
82 categorised under ______ . assurance assurance Variable life assurance assurance 2 INSURANCE
Losses related to the
Which of the below losses are extended period when Losses caused due APPLICATIO
covered under keyman a key person is unable to errors and NS OF LIFE
83 insurance? Property theft to work General liability omission 2 INSURANCE
A policy is effected under the
MWP Act. If the policyholder
does not appoint a special
trustee to receive and
administer the benefits under
the policy, the sum secured APPLICATIO
under the policy becomes Official Trustee of the NS OF LIFE
84 payable to the _______ . Next of kin State Insurer Insured 2 INSURANCE
Mahesh ran a business on
borrowed capital. After his
sudden demise, all the
creditors are doing their best to
go after Mahesh’s
assets. Which of the below Term life insurance APPLICATIO
assets is beyond the reach of Property under Mahesh’s bank policy purchased under Mutual funds NS OF LIFE
85 the creditors? Mahesh’s name accounts Section 6 of MWP Act owned by Mahesh 3 INSURANCE

Which of the below option is

true with regards to MWP Act
cases? Statement I: Maturity
claims cheques are paid to
policyholders APPLICATIO
Statement II: Maturity claims Neither I nor II is NS OF LIFE
86 cheques are paid to trustees I is true II is true Both I and II are true true 2 INSURANCE
 Which of the below option is
true with regards to MWP act
cases? Statement I: Death
claims are settled in favour of
nominees APPLICATIO
Statement II: Death claims are Neither I nor II is NS OF LIFE
87 settled in favour of trustees I is true II is true Both I and II are true true 2 INSURANCE

Ajay pays insurance premium

for his employees. Which of the
below insurance premium will
not be treated deductible as
compensation paid to
employee?

Choice I: Health insurance with

benefits payable to employee APPLICATIO
Choice II: Keyman life insurance NS OF LIFE
88 with benefits payable to Ajay I only II only Both I and II Neither I nor II 2 INSURANCE
The practice of charging
interest to borrowers who
pledge their property as
collateral but leaving them in APPLICATIO
possession of the property is NS OF LIFE
89 called _____. Security Mortgage Usury Hypothecation 2 INSURANCE
Which of the below policy can APPLICATIO
provide protection to home Mortgage Redemption NS OF LIFE
90 loan borrowers? Life Insurance Disability Insurance Insurance General Insurance 3 INSURANCE
PRICING
What does the term à AND
¢â‚¬Å“premium†denote Price paid by an Expenses incurred VALUATION
in relation to an insurance Profit earned by the insured for purchasing Margins of an insurer by an insurer on a IN LIFE
91 policy? insurer the policy on a policy policy 2 INSURANCE
PRICING
AND
Which of the below is not a VALUATION
factor in determining life Management IN LIFE
92 insurance premium? Mortality Rebate Reserves expenses 2 INSURANCE
 PRICING
AND
Discontinuation of Surrender of policy in VALUATION
premium payment by return for acquired IN LIFE
93 What is a policy withdrawal? policyholder surrender value Policy upgrade Policy downgrade 2 INSURANCE
PRICING
AND
Excess value of VALUATION
Which of the below is one of Excess value of assets over IN LIFE
94 the ways of defining surplus? Excessive liabilities Excessive turnover liabilities over assets liabilities 4 INSURANCE
PRICING
AND
VALUATION
Which of the below is not a Investment risk Social security IN LIFE
95 component of ULIP premiums? Policy allocation charge premium Mortality charge charge 4 INSURANCE
PRICING
Life insurance companies may Mode of payment AND
offer rebate to the buyer on (cash, cheque, VALUATION
the premium that is payable on Sum assured chosen by Type of policy chosen Term of the plan card) chosen by IN LIFE
96 the basis of . the buyer by the buyer chosen by the buyer the buyer 1 INSURANCE
Interest rates are one of the
important components used PRICING
while determining the AND
premium. Which of the below Lower the interest rate Higher the interest rate Higher the interest rate The interest rates VALUATION
statement is correct with assumed, lower the assumed, higher the assumed, lower the don’t IN LIFE
97 regards to interest rates? premium premium premium affect premiums 3 INSURANCE
The typical
loading to a net
premium would
The typical loading to a The typical loading to a The typical loading to a have 3 parts: a) a
net premium would net premium would net premium would percentage of
have 3 parts: a) a have 3 parts: a) a have 3 parts: a) a premiums b) a
constant amount for percentage of percentage of constant amount
premiums b) a constant premiums b) a constant premiums b) a constant for each Ã
amount for each à amount for each à percentage for each à ¢â‚¬Ëœ1000 sum PRICING
¢â‚¬Ëœ1000 sum ¢â‚¬Ëœ1000 sum ¢â‚¬Ëœ1000 sum assured’ AND
assured’ and c) assured’ and c) assured’ and c) and c) a VALUATION
Which of the below statement a constant amount per a constant amount per a constant amount per percentage IN LIFE
98 is correct? policy policy policy amount per policy 2 INSURANCE
 With regards to valuation of PRICING
assets by insurance companies, AND
is the value at which the life VALUATION
insurer has purchased or Discounted present IN LIFE
99 acquired its assets. Discounted future value value Market value Book value 4 INSURANCE
PRICING
In case of , a company AND
expresses the bonus as a VALUATION
10 percentage of basic benefit and IN LIFE
0 already attached bonuses. Reversionary bonus Compound bonus Terminal bonus Persistency bonus 2 INSURANCE
DOCUMENT
ATION Ã
Which of the below is an ¢â‚¬â€œ
10 example of standard age Village Panchayat PROPOSAL
1 proof? Ration card Horoscope Passport certificate 3 STAGE
DOCUMENT
ATION Ã
Increased risky Increased risky Decreased risky . Engaging in ¢â‚¬â€œ
10 Which of the below can be behaviour following the behaviour prior to the behaviour following the criminal acts post PROPOSAL
2 attributed to moral hazard? purchase of insurance purchase of insurance purchase of insurance being insured 1 STAGE
DOCUMENT
ATION Ã
Which of the below features ¢â‚¬â€œ
10 will be checked in a medical Emotional behaviour of Height, weight and PROPOSAL
3 examiner’s report? the proposer blood pressure Social status Truthfulness 2 STAGE
A _______ is a formal legal DOCUMENT
document used by insurance ATION Ã
companies that ¢â‚¬â€œ
10 provides details about the PROPOSAL
4 product. Proposal form Proposal quote Information docket Prospectus 4 STAGE
DOCUMENT
ATION Ã
The application document used ¢â‚¬â€œ
10 for making the proposal is PROPOSAL
5 commonly known as the . Application form Proposal form Registration form Subscription form 2 STAGE
10 From the below given age School certificate Identity card in case of Ration card Certificate of 3 DOCUMENT
6 proof documents, identify the defence personnel baptism ATION Ã
one which is classified as non- ¢â‚¬â€œ
standard by insurance PROPOSAL
 companies. STAGE
Money laundering is the
process of bringing ________ DOCUMENT
money into an economy by ATION Ã
hiding its _______ origin so ¢â‚¬â€œ
10 that it appears to be legally PROPOSAL
7 acquired. Illegal, illegal Legal, legal Illegal, legal Legal, illegal 1 STAGE
In case the policyholder is not
satisfied with the policy, he / DOCUMENT
she can return the policy within ATION Ã
the free-look period i.e. within ¢â‚¬â€œ
10 ______of receiving the policy PROPOSAL
8 document. 60 days 45 days 30 days 15 days 4 STAGE
The insurance
company will refund
the premium after
adjusting for
Which of the below statement proportionate risk DOCUMENT
is correct with regards to a premium for the period The insurance ATION Ã
policy returned by a The insurance company The insurance company on cover, medical company will ¢â‚¬â€œ
10 policyholder during the free will refund 100% of the will refund 50% of the examination expenses forfeit the entire PROPOSAL
9 look period? premium premium and stamp duty charges premium 3 STAGE
DOCUMENT
ATION Ã
¢â‚¬â€œ
11 Which of the below is not a PROPOSAL
0 valid address proof? PAN Card Voter ID Card Bank passbook Driving licence 2 STAGE
DOCUMENT
Which of the following ATION Ã
documents is an evidence of ¢â‚¬â€œ
11 the contract between insurer POLICY
1 and insured? Proposal form Policy document Prospectus Claim form 2 STAGE
11 If complex language is used to In favour of insured In favour of insurer The policy will be The policy will be 1 DOCUMENT
2 word a certain policy document declared as void and declared as void ATION Ã
and it has given rise to an the insurer will be and the insurer ¢â‚¬â€œ
ambiguity, how will it generally asked to return the will be asked to POLICY
be construed? premium with interest return the STAGE
to the insured premium to the
insured without
 any interest
It is evidence of the
policy (procedures) It is an
followed by an acknowledgemen
It is evidence of the insurance company t slip issued by DOCUMENT
interest expressed by when dealing with the insurance ATION Ã
the insured in buying channel partners like company on ¢â‚¬â€œ
11 Select the option that best It is evidence of the an insurance policy banks, brokers and payment of the POLICY
3 describes a policy document. insurance contract from the company other entities first premium 1 STAGE
The premium DOCUMENT
The proposal form The acceptance of The First Premium quote is evidence ATION Ã
acceptance is the premium is evidence Receipt is the evidence that the policy ¢â‚¬â€œ
11 Which of the below statement evidence that the policy that the policy has that the policy contract contract has POLICY
4 is correct? contract has begun begun has begun begun 3 STAGE
For the subsequent premiums DOCUMENT
received by the insurance ATION Ã
company after the first ¢â‚¬â€œ
11 premium, the company will Restoration premium Reinstatement Renewal premium POLICY
5 issue . Revival premium receipt receipt premium receipt receipt 4 STAGE
The insurance
company will
The insurance company issue a duplicate
will issue a duplicate policy without
The insurance company policy with renewed making any DOCUMENT
will issue a duplicate terms and conditions changes to the ATION Ã
What will happen if the insured policy without making based on the current contract, but only ¢â‚¬â€œ
11 person loses the original life any changes to the The insurance contract health declarations of after a Court POLICY
6 insurance policy document? contract will come to an end the life insured order. 1 STAGE
The policy
document neither
needs to be
signed by a
The policy document competent
has to be signed by a The policy document The policy document authority nor it
competent authority has to be signed by a need not be signed by a needs to be DOCUMENT
but need not be competent authority competent authority compulsorily ATION Ã
compulsorily stamped and should be stamped but should be stamped stamped ¢â‚¬â€œ
11 Which of the below statement according to the Indian according to the Indian according to the Indian according to the POLICY
7 is correct? Stamp Act. Stamp Act. Stamp Act. Indian Stamp Act 2 STAGE
 DOCUMENT
ATION Ã
Which of the below forms ¢â‚¬â€œ
11 the first part of a standard Specific policy POLICY
8 insurance policy document? Policy schedule Standard provisions provisions Claim procedure 3 STAGE
In a standard insurance policy The rights and DOCUMENT
document, the standard Date of privileges and other The signature of ATION Ã
provisions section will have commencement, date of conditions, which are the authorised ¢â‚¬â€œ
11 information on which of the maturity and due date applicable under the signatory and POLICY
9 below? of last premium Name of nominee contract policy stamp 3 STAGE
“A clause precluding
death due to pregnancy for a
lady who is expecting at the DOCUMENT
time of writing the contractà ATION Ã
¢â‚¬Â will be included in ¢â‚¬â€œ
12 which section of a standard Specific policy POLICY
0 policy document? Policy schedule General provisions Standard provisions provisions 4 STAGE
Policy nomination is not Nomination can be Nomination can be A nominee has DOCUMENT
Which of the below statement cancelled if the policy is done at the time of changed by making an full rights on the ATION -
12 is false with regards to assigned to the insurer policy purchase or endorsement in the whole of the POLICY
1 nomination? in return for a loan subsequently policy claim 4 CONDITION
In order for the policy to Premiums must DOCUMENT
acquire a guaranteed surrender Premiums must be paid Premiums must be paid Premiums must be paid be paid for at ATION -
12 value, for how long must the for at least 2 for at least 3 for at least 4 least 5 POLICY
2 premiums be paid as per law? consecutive years consecutive years consecutive years consecutive years 2 CONDITION
DOCUMENT
If the premiums are not If the premium has not ATION -
12 When is a policy deemed to be If the premiums are not paid before the due been paid even during If the policy is POLICY
3 lapsed? paid on due date date days of grace surrendered 3 CONDITION
The standard
length of the DOCUMENT
Which of the below statement The standard length of The standard length of The standard length of grace period is ATION -
12 is correct with regards to grace the grace period is one the grace period is 30 the grace period is one one month or 31 POLICY
4 period of an insurance policy? month days. month or 30 days. days. 4 CONDITION
12 What will happen if the The insurer will consider The insurer will pay the The insurer will pay the The insurer will 2 DOCUMENT
5 policyholder does not pay the the policy void due to claim and waive off the claim after deducting pay the claim ATION -
premium by the due date and non-payment of last unpaid premium the unpaid premium after deducting POLICY
dies during the grace period? premium by the due the unpaid CONDITION
date and hence reject premium along
 with interest
which will be
taken as 2%
above the bank
savings interest
the claim rate
During the revival of a lapsed
policy, which of the below . Insured
aspect is considered most Revival of the policy submitting the DOCUMENT
significant by the insurance leading to increase in revival application ATION -
12 company? Choose the most Evidence of insurability risk for the insurance Payment of unpaid within a specified POLICY
6 appropriate option. at revival company premiums with interest time frame 1 CONDITION
DOCUMENT
For an insurance policy ATION -
12 nomination is allowed under of POLICY
7 the Insurance ______ Act, 1938 Section 10 Section 38 Section 39 Section 45 3 CONDITION
The policy loan is
Which of the below statement The nomination of such The nominee’s usually limited to
is incorrect with regards to a policy will get cancelled right will affected to the a percentage of DOCUMENT
policy against which a loan has The policy will have to due to assignment of extent of the insurerà the policyà ATION -
12 been taken from the insurance be assigned in favour of the policy in favour of ¢â‚¬â„¢s interest in the ¢â‚¬â„¢s POLICY
8 company? the insurance company the insurance company policy surrender value 2 CONDITION
In case of
Absolute
Assignment, the
policy vests
absolutely with
the assignee till
The assignment of a life maturity, except
In case of Absolute insurance policy in case of death
Assignment, in the implies the act of of the insured
event of death of the transferring the rights during the policy
Which of the below statement assignee, the title of the right, title and interest It is necessary that the tenure, wherein DOCUMENT
is incorrect with regards to policy would pass to the in the policy (as policyholder must give the policy reverts ATION -
12 assignment of an insurance estate of the deceased property) from one notice of assignment to back to the POLICY
9 policy? assignee. person to another the insurer. beneficiaries of 4 CONDITION
13 Which of the below alteration Splitting up of the policy Extension of the Change of the policy Increase in the 1 DOCUMENT
0 will be permitted by an into two or more premium paying term from with profit policy sum assured ATION -
insurance company? policies to without profit policy POLICY
 CONDITION
Which of the following denotes
13 the underwriter’s role Decide acceptability of Product design Customer UNDERWRI
1 in an insurance company? Process claims risks architect relations manager 2 TING
13 Which of the following is not an Risk acceptance at UNDERWRI
2 underwriting decision? standard rates Declinature of risk Postponement of risk Claim rejection 4 TING
13 Which of the following is not a School leaving UNDERWRI
3 standard age proof? Passport certificate Horoscope Birth certificate 3 TING
Which of the following
condition will affect a personÃ
13 ¢â‚¬â„¢s insurability Banned substance UNDERWRI
4 negatively? Daily jogs abuse Lazy nature Procrastination 2 TING
Under what method of
underwriting does an
underwriter assign positive
rating points for all negative or
adverse factors (negative
13 points for any positive or UNDERWRI
5 favourable factors)? Judgment Arbitrary Numerical rating Single step 3 TING
Under risk
classification,consist of those
whose anticipated
mortality corresponds to the
13 standard lives represented by UNDERWRI
6 the mortality table. Standard lives Preferred risks Sub-standard lives Declined lives 1 TING
Amruta is pregnant. She has
applied for a term insurance
cover. Which of the below
option will be the best option
to choose for an underwriter to
13 offer insurance to Amruta? Acceptance at ordinary Acceptance with extra Acceptance with a UNDERWRI
7 Choose the most likely option. rates premium Decline the proposal restrictive clause 4 TING
13 Which of the below insurance Savita, aged 26 years, Mahesh, aged 50 years, Satish, aged 28 years, Pravin, aged 30 2 UNDERWRI
8 proposal is not likely to qualify working in an IT working in a coal mine working in a bank and years, working in TING
under non-medical company as a software has applied for an a departmental
underwriting? engineer insurance cover of Rs. 1 store and has
crore applied for an
endowment
insurance plan for
 a tenure of 10
years
Sheena is suffering from acute
diabetes. She has applied for
an insurance plan. In this case Any of the above
the underwriter is most likely method since an illness Neither of the
to use for like diabetes does not above method as
13 underwriting. Choose the most play a major role in the diabetes cases are UNDERWRI
9 appropriate option. Judgment method Numerical method underwriting process rejected outright 1 TING
Santosh has applied for a term
insurance policy. His
anticipated mortality is
significantly lower than
standard lives and hence could
be charged a lower premium.
Under risk classification,
Santosh will be classified
14 under UNDERWRI
0 . Standard lives Preferred risks Substandard lives Declined lives 3 TING
Given below is a list of policies. PAYMENTS
Identify under which type of UNDER A
policy, the claim payment is LIFE
14 made in the form of periodic Unit linked insurance Return of premium Term insurance INSURANCE
1 payments? Money-back policy policy policy policy 1 POLICY
Mahesh has bought a life
insurance policy with a critical
illness rider. He has made Neither of the
absolute assignment of the two because
policy in favour of Karan. Mahesh has
Mahesh suffers a heart attack suffered the heart PAYMENTS
and there is a claim of Rs. attack but the UNDER A
50,000 under the critical illness The payment will be policy is assigned LIFE
14 rider. To whom will the shared equally by in favour of INSURANCE
2 payment be made in this case? Mahesh Karan Mahesh and Karan Karan. 2 POLICY
14 Praveen died in a car accident. Certificate of burial or Treating physicianà Employer’s Inquest Report 4 PAYMENTS
3 The beneficiary submits cremation ¢â‚¬â„¢s certificate certificate UNDER A
documents for death claim. LIFE
Which of the below document INSURANCE
is an additional document POLICY
 required to be submitted in
case of accidental death as
compared to natural death.
PAYMENTS
UNDER A
Which of the below death If the insured dies If the insured dies If the insured dies If the insured dies LIFE
14 claim will be treated as an early within three years of within five years of within seven years of within ten years INSURANCE
4 death claim? policy duration policy duration policy duration of policy duration 1 POLICY
Surrender value
paid on PAYMENTS
Given below are some events An instalment payable Claim paid for critical surrender of an UNDER A
that will trigger survival claims. Claim paid on maturity upon reaching the illnesses covered under endowment LIFE
14 Identify which of the below of a term insurance milestone under a the policy as a rider policy by the INSURANCE
5 statement is incorrect? policy money-back policy benefit policyholder 1 POLICY
A payment made under a PAYMENTS
money-back policy upon UNDER A
reaching a milestone will be LIFE
14 classified under which type of INSURANCE
6 claim? Death claim Maturity claim Periodical survival claim Surrender claim 3 POLICY
Premiums paid will be
Shankar bought a 10 year Unit returned with 2% PAYMENTS
Linked Insurance Plan. If he higher interest rate as UNDER A
dies before the maturity of the compared to a bankà LIFE
14 policy which of the below will Lower of sum assured or Higher of sum assured ¢â‚¬â„¢s savings INSURANCE
7 be paid? fund value or fund value deposit Surrender value 2 POLICY
PAYMENTS
Manoj dies after one Pravin dies after UNDER A
Based on classification of Ramya dies after 6 and half years of David dies after two five and half years LIFE
14 claims (early or non-early), pick months of buying a term buying a term and half years of buying of buying a term INSURANCE
8 the odd one out? insurance plan insurance plan a term insurance plan insurance plan 4 POLICY
Given below is a list of
documents to be submitted for
a normal death claim by all
beneficiaries in the event of
death of life insured. Pick the PAYMENTS
odd one out which is UNDER A
additionally required to be LIFE
14 submitted only in case of death Certificate of burial or Hospital’s INSURANCE
9 by accident. Inquest report Claim form cremation certificate 1 POLICY
 As per IRDA (Protection of
Policyholders Interests)
Regulations, 2002, a claim
under a life policy shall be paid PAYMENTS
or be disputed, within 30 days UNDER A
from the date of receipt of all LIFE
15 relevant papers and INSURANCE
0 clarifications required. 7 days 15 days 30 days 45 days 3 POLICY
Applicant shall complete hours
15 training to become an REGULATOR
1 insurance agent. 50 100 30 25 1 Y ASPECTS
15 Insurance agent represents the REGULATOR
2 . Insurance company Sub-agent Co-agent Broker 1 Y ASPECTS
Insurance Regulatory
15 License to work as an insurance General Insurance & Development REGULATOR
3 agent is issued by . Corporation (GIC) Authority (IRDA) State Bank of India (SBI) Post office 2 Y ASPECTS
15 Agent’s licence is to be REGULATOR
4 renewed . Every year After 5 years After 3 years After 15 years 3 Y ASPECTS
Identify the statement which is Indicate the scale of Indicate the
15 not correct. Insurance agent commission if asked by Share the commission Disclose his licence on premium to be REGULATOR
5 should . the customer by way of rebate demand charged 2 Y ASPECTS
is the fees payable to the
Authority for issue / renewal of
licence to
15 Act as an insurance agent or REGULATOR
6 composite insurance agent. 250 150 520 100 1 Y ASPECTS
15 The Authority may issue REGULATOR
7 duplicate licence in case it is . Lost Destroyed Destroyed All of the above 4 Y ASPECTS
If an agent is found guilty of
15 criminal misappropriation the Issue a duplicate Renew the existing Take some fees REGULATOR
8 designated person will . Cancel the licence licence licence from the agent 1 Y ASPECTS
Minimum qualification
15 required for insurance agent is REGULATOR
9 pass. Graduate 10th Post-graduate 7th 2 Y ASPECTS
may deal with more than one
life insurance company or
16 general insurance company or None of the REGULATOR
0 both. Agent Surveyor Composite agent above 3 Y ASPECTS
16 An insurance agent is typically Customer Insurance company Government IRDA 2 LIFE
 INSURANCE
AGENCY AS
1 a representative of . A CAREER
LIFE
INSURANCE
16 Direct marketing involves AGENCY AS
2 which of the below? Telemarketing Insurance agents Bancassurance All of the above 4 A CAREER
“Hurt not others with
that which pains yourselfà LIFE
¢â‚¬Â. This golden rule of INSURANCE
16 ethics is given in the teaching AGENCY AS
3 of which religion? Buddhism Christianity Hinduism Judaism 1 A CAREER
When an applicant is seeking
license for the first time, he /
she is supposed to undergo LIFE
of practical training (from an INSURANCE
16 approved institution) in life AGENCY AS
4 insurance. 25 hours 50 hours 75 hours 100 hours 2 A CAREER
LIFE
INSURANCE
16 The license issued to the agent AGENCY AS
5 is valid for . One year Two years Three years Five years 3 A CAREER
As per Section 182 of the
Indian Contract Act, is a person
employed to do any act for LIFE
another or to represent INSURANCE
16 another in dealing with a third AGENCY AS
6 person. Principal Officer Proxy Mediator Agent 4 A CAREER
Community of LIFE
people who have INSURANCE
16 An insurance broker represents Association of already taken AGENCY AS
7 . Insurance company Insured insurance companies insurance 2 A CAREER
16 Which of the below reflects To provide competent To engage in active and To provide for fair and To maintain a 1 LIFE
8 Principle 2 of the Insurance and customer-focused fair competition. expeditious handling of system of INSURANCE
Marketplace Standards sales and service customer complaints supervision and AGENCY AS
Association (IMSA) principles? and disputes. review that is A CAREER
reasonably
designed to
achieve
 compliance with
these principles of
ethical market
conduct.
Before the composite licence
could be renewed, the LIFE
applicant needs to undergo INSURANCE
16 renewal training of from an AGENCY AS
9 approved institution. 25 hours 50 hours 35 hours 75 hours 3 A CAREER
LIFE
IRDA has decided to implement INSURANCE
17 guidelines on persistency from AGENCY AS
0 . 1st July 2011 1st July 2012 1st July 2013 1st July 2014 4 A CAREER
LIFE
The key to successful closing INSURANCE
17 lies in helping the prospect to SELLING
1 say . No Don’t know Yes Maybe 3 PROCESS
LIFE
INSURANCE
17 Which of the following is not SELLING
2 part of sales process? Prospecting Sales interview Loss assessment Closing 3 PROCESS
Preparing list of LIFE
Gathering the names of Enlisting all the all the agents in INSURANCE
17 Prospecting in an insurance people who may be Preparing a list of all policyholders of the the SELLING
3 sale is . interested in insurance the persons in the city branch office neighbourhood 1 PROCESS
Identifying the areas LIFE
where the prospect Identifying people to Identifying the INSURANCE
17 In insurance, need-gap analysis needs insurance work as insurance Identifying how much poverty level of SELLING
4 involves . protection agents assets a prospect has the prospects 1 PROCESS
LIFE
Meeting customers Meeting customer INSURANCE
17 Meeting customers in when they are suffering Meeting people after fire was SELLING
5 Cold Calling is . winter from cold unannounced extinguished 3 PROCESS
17 as a profession refers to the act Marketing Selling Advertising Promotion 2 LIFE
6 of inducing a commercial INSURANCE
transaction through inducing SELLING
the purchase of a product or PROCESS
service, such act being carried
out with the intent of earning
 remuneration.
Life insurance is neither
bought nor sold; it is a LIFE
necessity and hence INSURANCE
17 Which of the below statement Life insurance is sold, Life insurance is should be bought by None of the SELLING
7 is correct? not bought bought, not sold every individual. above 1 PROCESS
LIFE
INSURANCE
17 Which of the below statement Selling is an art and not Selling is a science and Selling is neither an art Selling is both an SELLING
8 is correct? a science not an art or a science art and a science 4 PROCESS
While prospecting for selling
insurance, approaching the
members of a caste or LIFE
community association will be INSURANCE
17 classified under which References and SELLING
9 category? Immediate group Natural market Centres of influence introductions 2 PROCESS
A qualified
A qualified prospect is prospect is one
Identify the incorrect A qualified prospect is one who is who can pass LIFE
statement with regards to a à A qualified prospect is one who can be academically well the company INSURANCE
18 ¢â‚¬Ëœqualified’ one who can pay for approached on a qualified to buy underwriting SELLING
0 prospect. insurance favourable basis insurance requirements 3 PROCESS
18 __________ is not a tangible CUSTOMER
1 good. House Insurance Mobile Phone A pair of jeans 2 SERVICE
18 ______________ is not an CUSTOMER
2 indicator of service quality. Cleverness Reliability Empathy Responsiveness 1 SERVICE
By being on time,
showing interest
18 In customer relationship the and being CUSTOMER
3 first impression is created: By being confident By being on time By showing interest confident 4 SERVICE
Ethical behaviour helps Ethical behaviour
Ethical behaviour is Ethical behaviour is not in developing trust is expected from
18 impossible while selling necessary for insurance between the agent the top CUSTOMER
4 Select the correct statement: insurance agents and the insurer management only 3 SERVICE
18 Active listening involves: Paying attention to the Giving an occasional Providing feedback Paying attention 4 CUSTOMER
5 speaker nod and smile to the speaker, SERVICE
giving an
occasional nod
and smile and
 providing
feedback
___________ refers to the
ability to perform the promised
18 service dependably and CUSTOMER
6 accurately. Reliability Responsiveness Assurance Empathy 1 SERVICE
___________ relate to oneÃ
¢â‚¬â„¢s ability to interact
effectively with other workers
18 and customers, both at work CUSTOMER
7 and outside. Hard skills Soft skills Negotiating skills Questioning skills 2 SERVICE
Communication, Attraction, Affirmation,
18 Which of the below elements assertiveness and being Politeness, affirmation communication and assertiveness and CUSTOMER
8 promote trust? present and communication being present attraction 3 SERVICE
Which of the below tips are
18 useful for making a good first Presenting yourself Being open, confident CUSTOMER
9 impression? Being on time always appropriately and positive All of the above 4 SERVICE
___________is reflected in the
caring attitude and
19 individualised attention CUSTOMER
0 provided to customers. Assurance Empathy Reliability Responsiveness 2 SERVICE
Intelligent GRIEVANCE
Grievance REDRESSAL
19 Insurance General Indian General Integrated Grievance Management MECHANIS
1 Expand the term IGMS. Management System Management System Management System System 3 M
Which of the below
consumer grievance redressal
agencies would handle GRIEVANCE
consumer disputes amounting REDRESSAL
19 between Rs. 20 lakhs and Rs. MECHANIS
2 100 lakhs? District Forum State Commission National Commission Zilla Parishad 2 M
Shopkeeper not GRIEVANCE
Which among the following Shopkeeper charging a advising the customer Allergy warning not REDRESSAL
19 cannot form the basis for a price above the MRP for on the best product in provided on a drug MECHANIS
3 valid consumer complaint? a product a category bottle Faulty products 2 M
Which of the below will be the GRIEVANCE
most appropriate option for a REDRESSAL
19 customer to lodge an insurance MECHANIS
4 policy related complaint? Police Supreme Court Insurance Ombudsman District Court 3 M
 Insurance
Which of the below Ombudsman
statement is correct with operates only GRIEVANCE
regards to the territorial within the REDRESSAL
19 jurisdiction of the Insurance Insurance Ombudsman Insurance Ombudsman Insurance Ombudsman specified MECHANIS
5 Ombudsman? has National jurisdiction has State jurisdiction has District jurisdiction territorial limits 4 M
The complaint is
to be made GRIEVANCE
How is the complaint to be The complaint is to be The complaint is to be through REDRESSAL
19 launched with an insurance The complaint is to be made orally over the made orally in a face to newspaper MECHANIS
6 ombudsman? made in writing phone face manner advertisement 1 M
Within three years of Within one year of Within one month GRIEVANCE
What is the time limit for Within two years of rejection of the rejection of the of rejection of the REDRESSAL
19 approaching an Insurance rejection of the complaint by the complaint by the complaint by the MECHANIS
7 Ombudsman? complaint by the insurer insurer insurer insurer 3 M
Which among the following is The complaint must be The complaint must be Complainant has to The total relief GRIEVANCE
not a pre-requisite for by an individual on a à lodged within 1 year of approach a consumer sought must be REDRESSAL
19 launching a complaint with the ¢â‚¬ËœPersonal Linesà the insurer rejecting forum prior to the within an amount MECHANIS
8 Ombudsman? ¢â‚¬â„¢ insurance the complaint Ombudsman of Rs.20 lakhs 3 M
Are there any fee / charges GRIEVANCE
that need to be paid for lodging 10% of the relief REDRESSAL
19 the complaint with the A fee of Rs 100 needs to No fee or charges need 20% of the relief sought sought must be MECHANIS
9 Ombudsman? be paid to be paid must be paid as fee paid as fee 2 M
Complaint can be
Complaint can be launched against GRIEVANCE
Complaints can be Yes, complaint can be launched against private insurers REDRESSAL
20 Can a complaint be launched launched against public launched against private insurers only in only in the Non- MECHANIS
0 against a private insurer? insurers only private insurers the Life Sector Life Sector 2 M