Sr. No. 1 2 3 4 5 6 7 8 9 10
Chap ter No 1 1 1
17 18
22
25 26 27
30
underwriter Linking third party administrators
Promotional activities
Drafting new regulations
Linking buyers and sellers
12%
25%
40%
26%
Government Employees
people living in Metro cities
Re Insurance
Banca assurance
NGO
RBI
what is the max level under which micro insurance can be done
5000
25000
50000
Who is the customer of a Re insurer
High Networth Individual
Insurance Companies
Licenced Insurance Agents
1 lac Non Government Organisation
Bancassurance
Reinsurance
TPAs
Actuaries
Tax benefit 10000
Savings 25000
Investment 50000
Protection 100000
Actuary
Underwriter
Claim Department
Accounts
The client represent the broker and the insurer remunerate the broker
Insurer represent both client and broker remuneration
Broker only service the client
Life Insure
Reinsurer
Any Insurer
1 1 1 1
1 1 1 1 1 1
Insurance company transfers the insurance which cannot bear by them to What is the main objective of taking the life insurance policy What is the maximum sum assured under a micro insurance Varun wishes to pursue a career in insurance and wishes to be in a department which calculates the level of premium. In which department should he join?
Insurance broker represent the client According to Insurance Brokers Association of India, what is the most and the insurer remunerate the broker appropriate relationship between Insurer and Broker? If a client needs Mediclaim to cover health insurance which insurer he Non life insurer needs to apply. Insurance agents are Any assets, which are no longer suitable or are earning fewer returns than expected, should be If a client wants to compare between all financial products then the best person he can approach is If the customer wants to seek information about all products, then he can avail the services of To identify suitable products their main features and their tax treatments is the role of:
Who work only for insurance company
Who work for customers
Intermediaries
Who works for their own interest.
Reviewed
Cashed in for investment into other assets
NA
NA
Individual agent
Corporate agent
Bank
Broker
Agent
Broker
NGO
Bank
Agent
Insured
Policy Holder
to develop the habit of savings
to obtain Income Tax benefits
for protection of financial security
Accident benefit and riders.
Pension and monthly income.
Death cover and maturity benefit.
Sales transactions
Relationship transactions
Monetary transactions
The main purpose of buying an insurance policy normally is 1 1
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
1
A Professional insurance market carries…..
1. Need – Based Selling
2. Product – Based Selling
3. Commission – Based Selling
1
Insurance Market divided into
1. Endowment and Money Back Insurance
2. Life and General (non-life) Insurance
3. Government and Private Insurance Markets
1
What is Bancassurance?
1. Giving insurance policies to Banks.
2. Selling insurance policies through Banks.
3. Giving guarantee to policies by Banks.
1
Which of the following do not include the channel of indirect marketing?
1. individual agents
2. bancassurance
3. insurance brokers
1
The business of Insurance is connected with................
1. physical values of assets
2. economic values of assets
3. metaphysical values of assets
1
Human beings need life insurance because..................
1. death is certain
2. death is uncertain
3. the timing of death is uncertain
1
The timing of death is uncertain, so when one should take life insurance?
1. At the time of uncertainty
2. At an early age
3. Anytime in life
1
Insurance Protects which of the following?
1. The life of the person paying compensation
2. The risk retained person 's family
3. The financial goal of the insured
1
Agent who is a licensed intermediary is actually is ?
1. A legal person to act on behalf of the re-insurer
2. B.A legal person to act on behalf of the insurer
3. C.A legal person to act on behalf of the contract
28 29
risk manager
What facility do the insurer use to cover Risk beyond their Limits ?
23 24
loss adjuster
1
1
21
an actuary
1
19 20
Ans Option 4
People with Low Income
1
16
Ans Option 3
People with large families
12
15
Ans Option 2
Which market does the Micro Insurance Concentrate on ?
1
14
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 Investment by foreign direct investors in to Insurance co's is restricted to
Ans Option 1
1
11
13
Question
Insured person to obtain loan as when required to meet financial obligations Interest yield and variable income Assured transactions 4. Company – Based Selling. 4. Health and Saving Insurance Markets 4. None of the above. 4. through internet 4. market values of assets 4. Death is the solution. 4. At the time when Advisor takes the decision 4. The life of the nominee 4. D. An authorized agent to act on behalf of the legal company
31 32 33 34
1
E-sales refers to sales of insurance products through
1. Insurance brokers.
2. Bancassurance.
3. Individual agents.
1
Insurance business is classified into three main types:
1. Life, Non –life, Micro Insurance.
2. Life, Non Life, Miscellaneous
3. Life, Non life, Re-insurance.
2
lung cancer and smoking .
lung cancer is peril and smoking is moral hazard
smoking is peril and lung cancer is hazard
Death is certain
2
The type of risk that can be insured against is
Speculative Risk
Pure Risk
Pure & Speculative risk
Non Financial Risk
The premium collected & deposited in a pool
All similar risks are pooled together
Premium is pool to make claims
Contribution of insurance company
Economic risk
Speculative risk
Financial risk
Insurable risk
Pure risk
Financial risk
Particular risk
Physical hazard
Calculate the premium
Increase the profitability
Ascertain the death ratio
Declare the bonus
Physical
Moral
Occupation
NA
Perils are factors which affect the risk being insured and hazards are the size of the risk being insured.
Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout
2 35 36 37 38 39
2 2 2 2
Pooling of risk in insurance means Pure risk is classified under The consequences of these risks which will affect specific individuals or local communities in nature is called as Law of Large number helps the insures to A person with a criminal background due to Financial fraud would come under which hazard
Perils are medical factors which Perils are risks that policyholders will die influence the risk of dying and hazards before a specified date and hazards are factors are lifestyle activities which influence which could influence that risk. the risk of dying.
2
40 41
2
2 42 43 44 45
2 2 2 2
46 47
2
How are perils and hazards normally distinguished under term insurance 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 enable the individuals to reduce the impact of risks Law of large numbers help in calculating the Which is the best option to manage risk? Vinay doesn‟t want to take insurance on himself. He feels that his family will survive with the funds available in the bank and monthly rentals received from village. This comes under Risk ______ Insurance is a mechanism through which risk of an individual can normally be
48 49 50 51 52 53
2
Pooling of risk
Maintaining insurable interest
With utmost good faith
Randomness
Under no circumstances
Under conditions of the reinsurer
As directed by actuary
As per company policy
Pooling of risk
Transfer of risk
Prevention of risk
Sharing of risk
severity of risk Retain
physical hazard Transfer
moral hazard Avoid
Probability of risk None
Transfer
Control
Retaining
Avoidance
transferred
prevented
avoided
Peril, Risk and Hazard are of the same meaning
2 In the context of Insurance terminology, how the meaning of „Peril‟, „Risk‟ and „Hazard‟ is best described? Pooling of risks is one of the fundamental principles of insurance where the Insurers pool the premium collected from
Peril is the event, Risk is the loss of event and Peril is the event, Risk is the cause of event Hazard is the wrongful even and the Hazard is an event of dangerous nature
all types of financial risks
the homogeneous risks
the heterogeneous risks
reduced Peril is the event, Risk is the likely occurrence of the event and the Hazard increases the chances of happening of the event. the speculative risks 4. Only Non-life insurance
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….
1. Peril and Hazard
2. Level
3. Uncertainty
4. All of the above.
2
Grouping the similar risks by Insurance Company is called as….
1. Grouping of Risk
2. Risk Grading
3. Risk Assessment
4. Pooling of Risk
2
The function of Insurance works on…..
1. Risk Transfer
2. Risk avoid
3. Risk retention.
4. All of the above.
2
Mr. Mahesh is a software engineer. He has taken a term insurance for Rs. 30,000,00/- for 30 years. This is an example for-----------------
1. Risk retention
2. Risk transfer
3. Risk avoidance
4. Risk tolerance
2
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
2
Life insurance the risk is determined on the basis of ..........
1. future data
2. past data
3. statistical data
54
55 56
4. Internet. 4.Life, Health, Micro Insurance Is occupational hazard
4. A teacher working in a primary school. 4. mathematical data
2
Which one of the following is possible in retaining the risk?
1. Retaining the ownership in the policy
2. Not possible as life has many risks.
3.Is possible by transferring risk to the policy holder
2
On 6th August there was a typhoon. Mr.Augustin who had insurance died in typhoon. Now how will the insurance company will categories this particular risk ?
1. Under the category of Pure risk
2. Under the category of peril risk
3. Under the category of particular risk
2
Life insurance company determine the level of risk based on
1. Future expenses.
2. Claim experiences.
3. Present expenses.
2
Ram works in a Fire cracker factory. He stocks the cracker in his house. He runs which type of risk.
1. Speculative.
2. Particular.
3. Financial.
57
58 59 60
2
In Insurance terms, pooling of risk is
1. Using the same pool for paying claims of car & life insurance.
2. Using different pool for paying claims of life 3. Using the same pool for paying claims of life insurance. & house insurance.
61 62
2 2
63 64
2
3:1 65 66 3:1 67
3:1
An Insurance company pools the premium collected from several Individual to insure them against similar risk is called: 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: which of the following refres to specific event which might cause a loss ... Harish takes a life insurance policy for Ramesh. Which of the following statement best describes the principle of Insurable Interest. what is the min age to enter into the contract of insurance In a whole life plan - The policyholider's responsibility to give disclosure
3:1 68 69
3:1
3:1 70 71 3:1 72 73
3:1 3:1
3:1 74 75 3:1 76 77 78
3:1 3:1 3:1 3:1
79 80 81
3:1 3:1 3:1
82 83
3:1
An insurer can invoke indisputability clause in case of death only in A proposer shows his age lesser than his actual age. This will be termed as Mr. Mehra wants to insure his wife. Previously his proposal was rejected by another company, but this time he submits the proposal form without showing this to a new company. This is In which type of insurance Insurable Interest exists at the time of claim?
3:1 A proposal of life insurance is not accepted in the absence of Insurable interest which mainly depends on the
84 85
3:1
Principle of utmost good faith is expected for max up to which stage
4. Fundamental. 4. Using the same pool for paying claims of life insurance.
2. Pooling of Risk
3. Insuraable Risk
4. Sharing of Risk
1. Pure Risk.
2. Particular Risk.
3. Financial Risk.
4. Insurable Risk
1. Peril
2. Hazard
3. Physical hazards
4. Uncertinity
16 at the beginning of the contract Every time premium is paid
In case of life insurance, Insurable interest must exist Group Insurance can be taken in following relationship What amount of insurable interest does an individual have in his own life 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? The concept of indemnity is based on the key principle that policyholders 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
4. Under the category of Risk Transfer 4. Targeted bonus rates.
1. Pure Risk
Ramesh declares all his liabilities
Principle of utmost good faith will operate in existing policy Both the parties to a contract must agree and understand the same thing and in the same sense which is called
4.Is possible by Reinsuring oneself
Consideration
Harish suffers financial loss Ramesh is elder than Harish Ramesh owes money form Harish incase of death of Ramesh 18 20 21 beginning of through out the contract Revival stage renewal If the insured If the insured person falls sick and is admitted If the policy has lapsed and it has to be revived person changes his to hospital job Legality of an object
Consensus ad idem
Acceptance
At inception of policy
Not needed
employee- employer
Husband-wife
family members
Any time during the contract society members
20,000
50,000
Up to the sum assured taken in the plan
Unlimited
Insurance contract.
Indemnity contract.
Value contract.
Major life contract
Voidable
Invalid
Valid
Null & voidable
Null and void
Invalid
Voidable
Valid D. Debtor Insurance Profiting from insurance.
A.
Surety insurance
B.
Keyman Insurance
At the time of claim
C.
Partnership Insurance
Insuring existing losses.
Making false insurance claims.
Paying excessively for insurance cover.
Yearly Salary
Monthly Salary
Probation Period
Till Gratuity
Capacity to Contract
Legality of object
Capability of performance
Offer and acceptance
Non payment of due premium
Breach of duty of disclosure of material facts
NA
NA
Breach of utmost good faith
Breach of trust
NA
NA
Non-disclosure of material facts
Concealment of material facts
Fraudulent misrepresentation of material facts
Innocent misrepresentation of material facts
Liability Insurance
Marine Insurance
Motor Insurance
Travel Insurance
blood relation between the Proposer and the Life assured
Proximity of relationship between the Proposal and the Life assured
Financial relationship between the Proposer and the Life assured
Emotional relationship between the Proposer and the Life assured
Before the contract is concluded
NA
NA
NA
A contract comes into existence when………
1. One party makes an offer which the other party accepts unconditionally.
2. One party makes an offer which the other party put extra conditions.
3:1
Mr. Kumar‟s wife is suffering from blood cancer. Doctors lost their hope on her live. Mr. Kumar would like to take Life Insurance policy on wife‟s name in order to get monitory benefit. Insurance company rejects this proposal on the grounds of…….
1. Anti Money Laundry
2. Legality of object or purpose
3. Capacity of paying future premiums.
4. All of the above
3:1
Under this situation may leads to breach of the duty of utmost good faith.
1. Non disclosure of material facts.
2. Concealment of a material fact
3. Fraudulent misrepresentation of facts.
4. All of the above.
3:1
The principle of utmost good faith is not applicable to
1. Facts of common knowledge
2. Facts of law
3. Facts those are not material.
4. All of the above.
3:1
Where do you not find insurable interest in the following options.........
1. surety-co surety
2. employee-employer
3. husband-wife
4. brother-sister
86
87 88 89 90 91
4. One party makes 3. One party makes an offer where other party an offer which the gives counter offer. other party receives the offer.
3:1
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
3:1
Mr.Akash filled the proposal form but before submitting to the company he discussed with the agent that he is not sure whether he can pay for 15 years . This attitude affects which part of the contract?
1. Consideration in the contract
2. Capacity to contract
3. Consensus ad idem
4. Offer and Acceptance in the contract
3:1
Mr.Karan who has to go to abroad for 6 months on an official work decides to leave his car with his friend Mr. Jim. What will be the validity of the insurable interest in this case ?
1. The insurable interest between the car and jim is valid for 6 months
2. The insurable interest between the car and karan is valid for 6 months
3. The insurable interest between the car and karan is valid until he owns it
4. The insurable interest between the car and Jim is valid until Karan‟s return
3:1
Mr. Josh was filling the proposal form but as his mother was sitting beside him, even though he drinks and smokes he ticked “NO” in smoking & drinking column of proposal form. This indicates ?
3:1
A contract exists between insurer and proposer when
1. A proposal has been accepted by insurer.
2. A policy document has been stamped by insurer.
3. A policy document has been received by the policyholder.
4. An insurer has made another proposal.
3:1
Rakesh purchased a life insurance policy. While writing a proposal form he hide that he practices mountaineering. Sadly he died in an accident while climbing Mount Everest. The insurers rejected the claim.What is the reason for rejection?
1. Innocent misrepresentation.
2. Fraudulent misrepresentation.
3. Concealment.
4. Non-Disclosure.
3:1
Shamsher has a health insurance policy of ` 1, 00,000 individually and from his company for ` 2, 00,000. He falls sick and got hospitalized. His hospital bill ran to ` 50,000. He claimed this amount from his individual policy. Also, he placed the request with his company for group policy claim, which was rejected. The reason for rejection is.
1. Indemnity contract.
2. Value contract.
3. Deemed contract.
4. Rolling contract.
Life Insurance also known as:
1. Value Contract.
2. Indemnity
3. Commercial Contract
4. Speculative 4. A joint life policy may cover a partner in business under one policy.
92
93
94
95
96
97 98 3:1
1. He has breached the non-disclosure 2. He has breached the company by concealing 3. He has breached the company by fraudulent of the fact the facts information
1. Plan offer insurance coverage for two person in one policy
2. This plan is ideal for brother & sister.
3. Each life will be underwritten separately.
all types insurance
All types of insurance except Motor insurance
Only life insurance
15 days from the date of receipt of the policy document
20 days from the date of receipt of the policy document
25 days from the date of receipt of the policy document
Types of assignment
Absolute
Term assignment
Conditional
3:2
why does an insurer insist on age proof document . To assess
SA
Risk assessment
Identity verification
3:2
Mr A submitted the proposal form . When will the risk begins for the company?
Submission of proposal form
FPR issued
Policy issued
3:2
The obligation of the insurer for the whole life policy is mentioned in
Operative Clause
Preamble
Proviso
3:1
Which option is not correct with regard to joint life insurance plan?
99 100
3:1
3:1 101 102 103 104 105
3:2
Pooling of insurance applies to
The proposer can withdraw from the contract, if they disagree with the terms and conditions of the Policy, within a „free look-in period‟ of
4. He had done an innocent misrepresentation
Only Non-life insurance 30 days from the date of receipt of the policy document Absolute & Conditional Financial assessment Agent accepts money Endorsement
Asvath photograph
asvath thump impression Only
policy document need to be registered
Left thumb Impressionof Asvath along with a declaration of his friend
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
Policy Document
proposal form
FPR
RPR
operative clause
Preamble
Information statement
schedule
Zainab takes insurance in the life of Jasmeet. Zainab will be called as
Proposer
Nominee
Appointee
Trust
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
Loan is available for a policy in which there is a feature of
Fund switch
Savings Element
Partial withdrawal
Appointee's role
Signature on the proposal
Medical exams
insurable interest three the first nominee should have more than second
Asvath is illiterate. He wants to take policy and surya is a friend of his 3:2 help him is answering questions and answers and also fills proposal . In addition to this requirement is 106
3:2
For Logging a Policy , a person gives Baptism CERTIFICATE & Ration Card . What is this ?
107 108 109 110
3:2 3:2 3:2
3:2 111 112 3:2 3:2
113 114 3:2 115 116 117 118 119 120
3:2 3:2 3:2 3:2 3:2 3:2 3:2
121 3:2 122 123 3:2 124 3:2 125
3:2 3:2
126
To be a valid contract ,the declaration is necessary in which document Mr. ABC buying Term insurance policy, insurer should mention Ombudsman address in which part of policy document?
how many nominees can be attached to a term insurance policy if a policy has two nominee mentioned what should be the Min allocation a Policy holder takes a insurance contract for 30 years and the SA reduces after 25 years what could be the likely reason A life insurance policy can only be made paid up if what particular policy feature exists?
one
two
Each nominee to get Min 10%
Each Nominee to get Min 25%
No bonus accumulated
Age proof was substantially wrong
Policy has become paid up
Its a Ulip Plan
Indexing contribution.
Nomination facility.
Rider benefits.
Savings element.
SA
advisor induced
no commission
Has Financial Problems
Proviso
Schedule
Terms & conditions
Endorsement
Total paid premium
Sum Assured
Surrender value
Paid up value
Provisio
Endorsements
Operative clause
Terms and Conditions
213333 & 273333
213333 & 229333
229333 & 273333
229333 & 293333
Agent Operative Clause
Policy holder Heading
Authorized officials of insurer Proviso
Proposer Attestation
Surrender
Paid Up
Endorsement
Assignment
Reinstatement Fee and Proof of continuing good health
Premium cheque and health declaration
Only health certificate
Premium cheque with arrears
A‟s health was better than B
A‟s term was longer than B
B‟s term was longer than A
NA
Medical reports
Proposal form
Policy document
NA
Change not allowed
Can be done through endorsement
Can be done through an affidavit sworn in
He regularly pays premium so he can take loan from both the policies
He can surrender whole life policy and can take loan from Money back policy
He can‟t take loan from money back but can avail loan from Whole life policy
When does nomination get invalidated
On assignment
If more than one person is nominated
NA
NA
If 5% bonus is given every year then for a SA of 1 lakh, what will be the payout after 15 years in a simple revisionary bonus system?
60000
75000
100000
5000
Reasons for surrender of the policy If a life insurance policy is issued with a lien, it will be mention in 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? 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? Whose signature is required on attestation of the policy? The mutual obligation of the parties is laid down in? The Insurance companies allow modification/alteration of the original policy documents through... In case the customer has stopped making payment for the premium of the policy. What are the two most important things required in order to reinstate the policy?
A and B start their policies on the same date and surrender on 22 nd 3:2 anniversary of the policy. But A‟s surrender value is higher than B. the reason was ; 127 Which from the following would help best the underwriter to know 3:2 whether the proposer had applied previously and his application was rejected 128 3:2
A policyholder wants to change the nomination after 5 years of the policy. What would happen
3:2
Mr. Anil has a money back policy and a whole life policy. He is planning to take some loan from both the policies as he was regularly paying the premium. What is your suggestion?
129
130 131 3:2 3:2 132
Surrender when Nominee is Minor many No such conditions
A simple application would do. He can‟t take loan from whole life policy but can avail loan from Money back policy
3:2 133
3:2 134 135 3:2 136 137
3:2 3:2
3:2 138
Vijay received his policy bond on 11th June, 2011. Due to some personal problems he has decided to cancel the policy on 8th July, 2011. Can he cancel or return the policy? 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 a valid contract, the proposal was not accepted. Which factor caused the insurer for non-acceptance of the proposal? A nomination is not required if What is the main source for insurance company to get information of proposer? What are the factors involved in calculating Surrender Value of the Policy?
No, as 15 days period is over
Yes, as it is within 1 year
No, as 20 days period is over
Yes, as it is within 3 months
Capability of performance
Legality of object
Capacity to contract
Offer
NA 4. Telephonic conversations.
Policy is taken under joint life basis
NA
NA
1. Advertisements.
2. Proposal form.
3. Conducting interviews.
1. Number of year‟s premium paid.
2. Number of premiums payable.
3. Sum Assured
Mr. Kumar is taken one life insurance policy with ABC Company. But 1. He can not do any thing, because be he is not satisfied with the policy benefits. What Mr. Kumar can do received the policy bond. under this situation?
3:2
When an illiterate person wants to have a policy.....
1. an impression of the left thumb is taken and third party has to attest it
3:2
Mr.Shanth has taken an endowment policy of 15 years with ABC insurance company. He has paid premium for 4 years and he could not pay premium for 5th and 6th year. In the 7th year he approaches the company to renew the policy. Now which of the following options will apply to him?
1. The policy will be renewed on the existing terms and conditions.
3:2
Which of the following statement is not true in connection with nomination?
3:2
Which of the following statements in correct in connection with assignment?
2. He can file a complaint against insurance company in court.
2. an impression of the left thumb is taken and the advisor has to attest it
2. Mr. Shanth cannot renew the policy
139
140
1. The life insured can nominate one or 2. Nomination can be done either at the time the more than one person as nominees. policy is bought or later.
3. He can send back the policy document to 4. Serve notice to insurance company with in 15 days from policy insurance company receiving date. on policy benefits. 4. A relative of the illiterate person has 3. an impression of the left thumb is sufficient to sign on behalf of and need not be attested that illiterate person. 4. Mr. Shanth can renew the policy 3. the policy may be renewed on different only on the terms and conditions approval of the insurer 3. A person having a policy on the life of another should make a nomination.
141
143 3:2 144 3:2 145 3:2 146 147
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? 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? Which of the following information does not appear in the First Premium Receipt?
4. Conditional assignment and absolute assignment are one and the same.
1. Mr. Shanth will not be granted any loan
2. Mr. Shanth can take loan which should be certain percentage of the surrender value of the policy.
3. There is no concept of loan in insurance policy
4. loans are allowed only in term plans
1. Policy will be surrendered by the insurer
2. Policy will be surrendered by the nominee
3. Policy will be surrendered by the company
1. method and frequency of premium payment
2. Date of commencement of last premium
3. Date the policy matures
2. Converting the policy to Paid up
3. Converting the policy to money back
4. Converting the policy to whole Life
Mr. Raj has taken a policy of 15 year term. He has paid the premium for 9 years. But now unfortunately he has lost his job. He is unable to 1. Converting the policy to Term policy pay the premium. What can be the best solution from the following ?
4. Policy will be surrendered by the heir 4. Date the last premium will be paid
3:2
Payment of premium and sum assured are laid down in
1. Heading of policy document.
2. Proviso of policy.
3. Operative clause.
4. Schedule of policy document.
3:2
An insurance contract commences when
1. Quotation is signed by proposer.
2. First Premium Receipt is issued.
3. Proposal Form is signed.
4. Policy Document is received by policyholder.
3:2
When is premium considered / deemed to be paid?
1. When insured writes a cheque in favor of insurer.
2. When cheque amount is deposited in insurer account.
3. When the cheque is deposited with insurer office.
4. When cheque is posted/couriered by the insure4.
3:2
Ram Lal is an insurance policyholder. He has recently shifted his home from New Delhi to Noida. He wants the address to be changed. This change in policy document will be effective through?
1. Terms & Condition.
2. Preamble.
3. Endorsement.
4. Schedule.
3:2
Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 annual premiums but due to financial crisis is unable to make future premium. His policy
1. Acquires surrender value.
2. Contract comes to an end.
3. Moneys will be forfeited.
4. Acquires paid up value.
148
149
150
151
4. The section 39 of the Insurance Act 1938 speaks about the nomination.
2. The assignor need not be major at the time of 3. Section 45 of the insurance act speaks about assignment. assignment.
1. Assignee cannot make fresh nomination in the policy
142 3:2
4. All of the above.
3:2
How assignment distinguishes itself from nomination?
1. Nomination does not transfer the title while assignment does.
2. Nomination transfers the title while assignment does not.
3. Nomination is made after policy is issued while assignment is done before it is issued.
4. Nomination need not be informed but assignment needs to be informe4.
2. Conditional Assignment
3. Loan Agreement
4. Absoulte Assignment
2. Opertaive Clause
3. Proviso Clause
4. Schedule of Policy
2.Return of Premium on maturity
3. Deduct the underpaid premium from Sum assured and payable on Maturity
4. Policy was subject to lien.
2.Sum Assured + Bonus
3. Sum assured plus vested bonus minus any outstanding loan/premium & Interest.
4. Paid up value only.
discount rate
Estimated life expectancy
Estimated amount at retirement
8000
8320
8500
152 3:2 153 3:2 154 3:2 155 3:2 156 157 158
4 4
Manish took a loan from Pankaj of Rs.10 lac, Pankaj transferred his Insurance policy to Manish of Rs.10 lac as a security with the 1. Loan assignment agreement Of when Loan is fully paid, policy title will be revert back to name of Manish is called: Which clause lays down the mutual obligation of the parties regarding, Payment of Premium by Life assured & payment of Sum 1. Lien Clause Assured by Pranab is not able to pay premium for continue his policy due to 1. In to paid up and reduced Sum some Financial problem, so he rather than surrendering the policy, Assured would be payable on maturity. what Option he has to convert ……….? 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 1. only Sum assured Maturity .what would be payable on maturity? While calculating Human life value (HLV) two components need to be Bank Fixed deposit rate kept in mind , the one is take home salary and other is Annual premium of insurance product is Rs. 32,000, 4% loading on 7680 Quarterly mode of payment What is the quarterly premium?
4
why ACR
To calculate Premium
To Calculate the commission due for the agent
To verify the Plan proposed
To help the underwriter to asses the Risk
4
In a 20 year with profit policy,persist ency Bonus is paid at the end of
1st Year
10th Year
15th Year
20th Year
Fraudulent Hazard
Occupational Hazard
Physical Hazard
Moral Hazard
Physical hazard
Moral Hazard
financial risk
Pure risk
Underwriter
Insuranc eCo
Agent
Actuary
Lien
Bonus
Surrender
Accidental death
159 160
4 161 162 163 164 165 166
4 4 4 4 4 4
167
While Underwriting Mr X proposal , its found that there has been CRIMINAL case against him in Fraudulent act .What type of Risk this will be categorized Into ? Mr A wants insurance cover . But he is drinks alcohol frequently . What kind of hazard you may categorize? Who IS the primary underwriter of the customer? Claim was settled however full Sum assured not paid though the policy was in force due to Lien can be considered an alternative of which of the following what is the special report that is asked by the underwriter from the officer of the insurer 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
4 168 169
4 4
170 171 172 173 174
4 4 4 4 4
175
Net premium is equal to Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply 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 additional premium added is known as Certificate from the village panchayat What will be lien amount in 3rd year as compared to the 4th 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 HLV is used as a Yardstick to determine
176 4 177
While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account?
Clause
Rejection
Acceptance
Time barred
HLV report
Client confidentiality report
moral hazard report
medical report
Moral Hazard
Medical Hazard
Occupational Hazard
Physical Hazard
Premium plus interest earning
Risk premium plus interest earning
Premium minus interest earning
Risk premium minus interest earning
2.50%
3.00%
5.00%
7.50%
15 days of receiving the proposal
20 days of receiving the proposal
25 days of receiving the proposal
30 days of receiving the proposal
Loading
Investment
Frequency
NA
Will be considered as standard age proof
Will be considered as non standard age proof
Will not be accepted
NA
It is higher
Decrease
Slightly higher
Slightly lower
Increases
Reduces
Remains same
Depends on insurer
A policy Assignment
A Fradulent Claim
A steep rise in inflation
A sudden illness
A lump sum amount that the person will get from the insurance company
NA
Discount rate
Compounding.
The correct cover needed to compensate Emotion Loss can be compensated for economical loss to their family in case of death of the earning member Inflation.
Interest.
4 178 4 179 180 181
4 4
4 182
Vishal and sandeep applied for a health plan in XYZ Life Insurance Sandeep has taken another policy from Company. Vishal is asked to undergo a medical checkup but Sandeep XYZ Life Insurance Company is not asked to do so. What will be most possible reason? Mr. Kunal used to participate in Car race. While taking up the Insurance policy he disclosed this information. What kind of hazard Physical hazard does it refers to If the sum assured remains the same, what will be impact of net It rises premium if the age of the policyholder increases For which of the following reasons, the underwriter should ask Physical Hazard beyond agent‟s confidential report. An insurance agent sold two policies to two different persons having the same policy term. He declares the commission to each of them. Risk profile of both the policyholder The commission of one of the policy is more than the other. What are different should be the reasons for this difference?
4 183 184
4 4
185 4 186 4 187 188
4
Compound reversionary bonus of 4 % will be calculated on A lien is generally used as a substitute to charging In a process of completion of an insurance proposal, an agent finds that the intention of the proposer was not genuine. In this case what should the agent do? 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
4
Vishal is older than Sandeep
Sandeep is earning more then Vishal
Vishal is working in a MNC
Fraudulent representation
Moral hazard
Peril
It falls
It remains constant
Gross premiums increases
Moral Hazard
SA is too high
Pure Risk
Age of both the candidate are different
One has chosen Single premium policy and other has chosen regular premium policy
Both have chosen different kind of policies.
Sum assured
Sum assured plus bonus till date
Premiums paid till date
a high premium for a high risk
for reduction in sum assured
NA
Sum assured minus bonuses paid till date NA
Contact the Regulators
Issue a wrong note
Refuse to proceed
Inform the insurer
Quotation Request Form
Proposal Form
Policy Document
Claim Form
A clause
A Lien
A Loading
Level Premium
20 times annual salary
500000
1500000
To see that the proposal is accepted by the underwriter at OR
To ensure that his client is not burdened with extra premium
To give truthful report to the Insurer all about the life to be insured
4000000 To see that the plan as proposed by the client is not changed on underwriting
Sum assured is the HLV of the proposer
Yearly income is the HLV of the proposer
Difference between the Assets and Liabilities is the HLV of the proposer
Present value of the future earnings less personal expenses is the HLV of the proposer
Employment
Age
Marital Status
Liability
What role an agent is likely to play in the process of underwriting?
189
4
190 4 191
In insurance, HLV is a known abbreviated term. How the meaning of HLV can best be described in relation to a income earning proposer? 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?
4
While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account?
1. Inflation.
2. Interest.
3. Discount rate
4. Compounding.
4
Moral Hazard reflects the …….
1. Intentions and attitude of Proposer.
2. Habits and Hobbies of Proposer.
3. Occupation and Residence of Proposer.
4. Medical and Personal History of Proposer.
4
Income replacement methods equates Human Life Value (HLV) to
1. Future value of Present earnings.
2. Present value of future earnings.
3. Present value of previous earnings.
4. Future value of previous earnings.
4
Agent will be called as…..
1. Primary Underwriter
2. Main Underwriter
3. Chief Underwriter.
4. Information Underwriter.
1. Rs. 2500/-
2. Rs. 25000/-
3. Rs. 250000/-
4. Rs. 5000/-
1. Proposal form.
2. renewal receipt
3. brochure
4. annual report
192
193
194 195
4 196 197 198
199
4
Mr. Rajesh has taken policy from ABC insurance company for Rs. 500000 Sum Assured by paying Rs. 50,000 premium per year. Company declared 5% Simple Reversionary bonus, what is bonus amount? The underwriter can get the required information about the proposer in.....
4
Mr. Ramesh works in a mining company. So he is exposed to..............
1. moral hazard
2. physical hazard
3. mental hazard
4. Ethical hazard.
4
Lien is imposed on a policy when underwriter feels that......
1. the risk associated might increase
2. the risk associated might decrease
3. the risk associated might not be harmful
4. the risk associated might be general
What does the mortality tables contains ?
1. Tables of death occurring in various circumstances
2. Tables of details of various probabilities of death
3. Tables of details of underwriter‟s calculation on death
4
Mr. Guptha is recently detected with lung cancer. He would like to take an insurance. What is your suggestion?
1. Time of death is uncertain, so insurance can be given
2. Only lung is affected so health insurance can be given.
3. He can take insurance after submitting health certificate
4
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:
1. A . Physical hazard, as he is old
2. B. Moral hazard, as he is 52 years old and wife is not the nominee
3. C. Moral hazard, as coverage is high and brother‟s son is the nominee
1. Financial Inspection agencies
2. Specialized inspection agencies
3. Credit worth inspection agencies
1. Risk Analysis Department
2. Classification of Risk Department
3. Underwriter
1. The occupation of the person
2. The financial history of his family
3. The income that he earns
4. Human Life Value
1. An individual is proposing SA 15 times his annual income.
2. Insurance is taken out by an individual with dependents.
3. A nominee is not a dependent.
4. A medical checkup is carried out nearby place of residence.
200
201
202 4 203 204 205
206 207 208 209
4 4
212
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 analysis of the proposal form lies with whom? In underwriting the economic value of the person is determined by what?
4
Level Premium is calculated based on
1. Risk Premium.
2. Net Premium.
3. Loading of Premium.
4
MPL abbreviates
1. Minimum Possible Loss.
2. Major Possible Loss.
3. Minor Possible Loss.
4
What is generally considered as a substitute to charging a high premium for a high risk?
1. Clause.
2. Assignment.
3. Lien.
4. Level Premium.
4
Jyoti is submitting is copy of permanents account number card as age proof for buying an money back plan .her age consider as a
1. Non Standard Age Proof
2. Standard Age proof
3. an Address proof
4. Proof of Income tax payer
1. Simple Revisionary bonus
2. Compound Revisionary bonus
3. Persistency Bonus
4. Interim bonus
1. Gross Premium
2. Level Premium
3. Risk Premium
4. Net Premium
1. Proposal Form
2. Insurance agent
3. neighbor of proposer
4. Medical of examination report
1. Physical Hazard
2. Moral Hazard
3. Medical
4. No underwriting
Lien
Counter offer
Decline
4 4 4
4 214
216
4 4
4 217 4 218 4 219 220 221
4 4 5
222 223 224
4. Insurance Investigation Agencies 4. Actuary who analysis the risk
When an underwriter may consider Moral Hazard?
Which one of the following bonuses is given by insurer as an incentive to the insured to for long term: Ramesh bought an endowment plan for ten year he pays the same Amount in every year is called: Which one of the following is not source of information about the
213
215
4. D. Moral hazard, as he is a head master and 52 years old
4
210 211
4. Tables of details of actuarial calculation on death 4. Cannot give insurance for health reason
4
5 5
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 An underwriter accepts the proposal with certain modified terms and coditions,What it denotes Loading in a term plan is more likely beacause of
Mortality
better than average risk,at the early stage of life
better than the average risk ,at the later stage of the life Higher than the average risk,at the early stage
If a person have motoring sport as hobby before taking insurance Moral hazard is Sport and it influence policy,then what it implicates the risk of life 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 changes to the same and returned it modified acceptance to A. It will be called Hari wants a constant life cover till his 31st birthday. But he cant afford to pay high premiums. The best suited products for him would Pure Endowment be At the time of maturity , quarter of the SA is paid though the policy Endowment was in force Weekly premiums are generally collected for which type/range of Banca assurance palns
Postpontment Investment expenses
Morbidity
In case of lien,the risk will classified as per underwriting standards 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
4. Gross Premium. 4. Maximum Possible Loss.
Admin expenses
Higher than the average risk at the later stage of life
Sarath nominee
Superior of the Sarth's insurance agent
motoring sport is risk and influences moral hazard
motoring sport is risk and influences physical hazard
Insurance company motoring sport is a physical hazard and it influences risk
10
15
20
Counter offer
Rectified offer
Rectified Acceptance
Anticipated endowment
term plan
ULIP
Lien
Money back
Surrender
Health plans
Micro Insurance
Term Insurance
225
5
Mr A is planning to invest and his needs are :1 Protection for is Income , during his absence 2.children education
Children Plan
Retirement Plan
Ulip Plan
Term Insurance
5
What tax rate,if any,will be applicable to a life insurance policy holder for the maturity proceeds of a Rs 5000 life insurance policy
Nil
10%
20%
30%
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
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
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
Fully taxable
10%
20%
Tax fully exempted
5
without submitting any form of claim,a life insurance policy holder received payments of survival then what type of policy he is holding
ULIP
Term
Money Back
Health
5
what is the special feature of ulip that ensures customer risk profile for long time insurance policies
fund switching
partial with drawl
premium holiday
riders
5
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
1 lac
3 lacs
2 lacs
1.50 lacs
Joint life policy
Has physical ailment
NA
NA
He has switched his fund
He has opted for Settlement option
He has redirected his past premium
Policy was lapsed on the time of maturity
Endowment
Term
Money Back
Whole of Life
Group lifestyle
Employees
Age of the group
Medical history of group
Endowment plan
ROP plan
Whole life plan
Ulip
Less than 10000
More than 10000
Less than 20000
More than 20000
226 227
228
229
230 231
232 5 233 5 234 5 235 236
5 5
237 5 238 239 240
5 5
5 241 242
5
5 243 244
5
Suresh is suffering from Asthma and the policy in been done on joint life basis and the need for nomination under the plan is less as 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 Mr. Kartik got a job recently, he can‟t afford to pay to pay the higher premium as of now but in future once he settles down with his job he can pay higher premium. Which one will be the best plan? What is the minimum Sum Assured allowed for Micro Insurance?
5 245 246 247 248 249 250
5 5
Pick the wrong answer. In a child plan: Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness before maturity? For assessing the risk of a group health insurance policy, which of the following information is the most critical
1 lakh
1.5 lakhs
2 lakhs
3 lakhs
6% and 10%
5% and 10%
6% and 12%
5% and 12%
Term Insurance Plan
Endowment plan
Return of premium plan
Pension plan
Investment Risk
Risk of death
Uncertainty of return
Chances of lapse
Convertible Endowment plan
Convertible Term plan
Convertible pure Endowment
Convertible money back plan
5000
10000
15000
20000 Deferred date is date on which the risk commences.
Deferred date is a policy anniversary.
On vesting date policy has to be assigned to the life assured.
After vesting the contract is between the insurer and the life assured.
1. Nil
2. 10%
3. 20%
4. 30%
1. Group lifestyle
2. Employees
3. Age of the group
4. Medical history of group
5
Term Insurance Plan will give….
1. Only Death Benefit.
2. Only Maturity Benefit.
3. Only Bonus Benefit.
4. Only Tax Benefit.
5
Low risk products give…..
1. High Returns
2. Low Returns
3. Moderate Returns
5
The income of an individual can be protected with the help of.........
1. a unit linked policy
2. a term life policy
3. an endowment policy
4. Good Returns 4. a money back policy
251 252
5 5
257 258
262 263
267 268 269 270 271 272 273 274
5
Mr. Kumar decides that his employees should have SSS scheme. What type of plan is SSS?
1. Salary saving Life plan
2. Not a specific plan
3. Salary insurance plan
4. Salary Specific plan
5
Manmohan has recently purchased a house worth ` 50, 00,000 on loan. Which insurance product you as an adviser will suggest?
1. Endowment Plan.
2. Money Back Plan.
3. Whole Life Plan.
4. Term Plan.
1. 10% of S1.
2. 20% of SA.
3. 30% of SA.
4. 40% of SA.
1. Endowment Plan
2. Term Plan
3. Money Back Plan
4. Annuity Plan
5 5
1. Master Policy holder & insurer
2. Employer & Employee
3. Employee & Insurer
6
The best way to overcome the problem of investment decision depends mainly on peer influence is
By Canvassing wide peer group
Seeking professional advise
Go for a low investment tranchee
Debt Funds of MF
Govt Securities
Equities
Gold
increase
decrease
volatile
same
5 year
4 year
3 Year
2 Year
20000
24000
28000
32000
Increase gradually
Decrease gradually
Remain Constant
Change as per market fluctuation
10- 20 gms
20- 50 gms
50-100 gms
10 gms
Taxation
frequency of payment
interest rates
tenure
Insurance Branch
Post Office
Internet
Mutual Fund Office
frequency of interest calculation
Tax
Interest tax
Tenure Both do not give tax benefits
6 6 6 6
6 6 6 6 6 6 6 6 6 6
6
6
6 6 6
280
4. Creditors & Debtors Postponement of investment decision
In Group insurance plans contract of insurance between …………?
277
279
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:
5
6
278
3. Term Insurance
4. He Can take company insurance
275 276
2. Unit linked Insurance plans
3. He can take Key man Insurance
6
266
1. Fixed deposits
4. when he loses his job 4. Endowment plans
2. He can take Business Partner insurance
264 265
3. when he is hospitalized
1. He can take Surety insurance
259 260 261
2. when he survives the term
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 ?
255 256
1. when he dies
5 253 254
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....
A person who has a temporary job Loss , where should he look for Investing other than FD RBI increased interest rates 2 times then the stock prices 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 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 Suresh wants to transfer his physical gold to gold exchange traded fund,in relation to access,this change will An Investor has invested in Debt mutual fund,he is ideally looking for With this type of deposit the bank pays the principal and the total interest at the end of the term In Cumulative bank deposit the interest that in normally compounded 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? Anand 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 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
in ULIP policy
in EPF
same efficiency for both
50000
75000
100000
200000
not hedge against Inflation
Decrease his liquidity
Reduce his encasement for next six months
Insurance against Uncertainties
Equity return
Fixed Income
Stable income
Savings income
Traditional deposits
Recurring deposits
Cumulative deposits
Term Deposits
Monthly
Quarterly
Half Yearly
Annually
Discounted Value
Principle amount
Discounted Value with persistency bonus
Principle with persistency bonus
Administrative charge
Inflation
Interest rate
Market Risk
He will get tax benefit up to 5000
He will get tax benefit up to 25%
He will get a reduction in tax slab
His investment would be deducted from taxable income
Nil
1%
5%
10%
Good Returns
Regular Income
Safety
Liquidity
Regularly with no fixed term
Lump Sum with no fixed term
Lump Sum for fixed period of time
Regularly for fixed period of time
281 282 283 284 285 286 287 288 289 290
6 6 6 6 6 6 6 6 6 6
What is the similarity between Recurring Deposits & cumulative deposits in a bank 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 What is the advantage of converting physical gold assets to gold ETFs. 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 Bank interest is accumulated Bank savings account earn cumulative interest at what frequency If I invest in a G sec partway(ignore periodic interest payments).I will get on Maturity Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason
Guarantees
Taxation
Tenure
Lock in periods
Savings
Insurance
Investment management
Planning for pension
Equity market
ULIP
Debt mutual fund
Liquidity
More gold in value
Purity
Increase his liquidity
Decrease his liquidity
Reduce his ability to encash for next six months
Diversified
Lessened
Increased
NA
Monthly
Yearly
Quarterly
Once in 6 months
Monthly
NA
NA
NA
Prinipal amount
NA
NA
NA
1. Administrative charge
2. Inflation
3. Interest rate
4. Market Risk
Who will maintain Mutual Fund Schemes?
1. Mutual Fund Management Societies
2. Mutual Fund Management Systems.
3. Asset Management Companies.
6
Which is the primary saving need among all saving needs?
1. Insurance
2. Purchasing House
3. Investment.
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.
6
The disposable income means......
1. the surplus amount that can be invested
2. the amount that can be paid towards one's EMIs
3. the annual bonus amount
4. the sum of one's all investment
1. through individual agents
2. through internet
3. corporate agents
4. call centers
1. Life Insurance
2. Mutual fund
3. Shares
4. Bank deposits
1. Mutual Fund
2. Risk Diversified Insurance
3. Shares
4. Risk Sharing insurance
1. Capital Appreciation
2. Capital Profit
3. Capital Benefit
4. Capital Variation
1. Pension Funds
2. Public Provident Fund
3. Employee Gratuity Fund
4. Infrastructure Bonds
1. Bombay Share exchange
2. Bombay Stock exchange
3. Stock brokers
4. Share brokers
1. Amount of disposable income.
2. Current assets.
3. Current liabilities.
4. Duration of investment.
1. High Risk.
2. Low Risk.
3. Moderate Risk.
293
294 295
6
6 296 297 298 299 300 301 302 303 304
6 6 6 6 6 6 6 6 6
305 6 306 307 308
6 6 7
309 310
4. Asset Maintenance Company Limite4. 4. Contingency/ Emergency Fund.
6 291 292
FD More conversion value Create a future exit liability
7
Which of the following ways is easier for a person to take a saving product? Mr. Rajgopal has invested some money. He has been informed clearly about the tenure, interest rate and method of payment of interest at the inception of the investment itself. His investment may be in..... The concept of Risk diversification is applicable in which of the following instrument ? Ajay bought a share for Rs.110 and he sold when it was Rs.630.What had happened to his share? Which of the following can‟t be ducted under section 80 c from taxable income? Who act as an intermediary by offering a trading platform for buying and selling of shares? The savings needs of a particular individual is majorly determined by For his investment need, Ravi has parked funds in equity. The returns from this form of investment can be categorized as While calculating the expected returns from investments and savings, an individual should make provisions for Time deposit account is issued by:
4. No Risk. 4. No provision is require4. 4. Life Insurance co.
1. Taxation only.
2. Inflation only.
3. Taxation & inflation both.
1. Post office
2.Bank
3.Mutual Fund
2. Infrastructure Bond
3. Health Insurance
4. Interest paid on education loan
2.Cumlative deposit
3. Traditional Deposit
4. Fixed Deposit
Fixed Deposit
Mutual Fund
KVP
Pankaj want to save tax over and above the deduction allowed under section 80C of the income tax act 1961, which allow deduction from 1. Corporate Bond taxable income In which of the following Bank pays the Interest on the deposit‟s fund on monthly /quarterly /half yearly/ yearly basis as chosen by 1. Saving Deposit depositor fund: Sanjeev in a lumsum investment is getting benefit of multiple securities Bonds If the client prefers bank fixed deposit rather than cumulative deposit ,due to what implication ? Investment Frequency Omkar Started a pension policy with provider A but ended up in taking the annuity payment from provider B.The result directly reflect Commutation Option the which feature available with this policy what frequencies can one take annuity monthly,quarterly,half yearly,
Interest Rate
Look in period
Taxation
Differed Annuity Option
Guaranteed period option
Open Market option
fortnightly,quarterly,monthly,yearly
fortnightly,monthly ,half yearly, yearly
Yearly Only
311 312 313 314 315 316
7 7 7
All ULIP pension plans have to give how much percentage as Guaranteed returns Yash wants to take open market option in Pension plan. What is the benefit? Commutation option allows the annuity policy holder to with draw
6%
9%
4.50%
10% To continue life cover
To save tax
To switch the underlying fund
For improved annuity rate
25%
50%
40%
7
commutation is a feature of which type of policy
annuity
joint life policy
7
Waiting period in a health insurance policy is to address Under a health insurance policy,if a policy holder needs to avail his no claim bonus, how can that be done 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
Age discrepancy
Pre existing illness
risk
cash encashment
discount in the next premium
increase in the cover level
Only Danny
Danny & his Wife
Danny , His wife ,His children
Danny's family and his parents On the expenses incurred daily due to critical illness
7 7
317
pure endowement policy
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%
318 319
7
Critical illness rider was taken and the rider benefit has been claimed , the rider benefit now gets
Reduced the the base SA
terminated
continues as it is
New critical Illness Rider has to be added to base Policy
1 Lac
2 Lac
3 Lac
4 Lac
20%
30%
40%
50%
33%
Pension plan is not eligible for tax exemption
100%
20%
320 321
7 7
322 323 324
7 7
A person has taken a term insurance of 4 Lac. What is the maximum Critical Illness Rider he can take Mr. Sharma buy term insurance policy along with Accident and Disability benefits rider cost restricted upto the base premium of the policy? 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
entire life term
till 5 years and continue till annuitant lives
annuity only for 5 years
premium payment term
10% of the premium on the base policy
20% of the premium on the base policy
30% of the premium on the base policy
40% of the premium on the base policy
How riders will help the customer in life insurance
allows policyholders to customize their insurance cover with additional benefits
Rider is like a clause
Operative clause
Rider is like Preamble
In Daily hospitalization cash benefit scheme
The daily amount paid is fixed and will never be more or less than the cost of actual treatment
The insurance company may pay an additional amount on a daily basis if the insured is admitted to the Intensive Care Unit (ICU)
The insurance company will pay for doctor consultation fees incurred prior to hospitalization
Only surgery expenses are included in daily hospitalization benefi
In term insurance if Critical illness rider claim happens then what will happen to existing policy Family floater health Insurance plan covers How the Daily hospitalization cash benefit will provide benefits to policyholder who is hospitalized
CI benefit will cease
CI benefit reduced from existing sum assured
CI benefit continues
No change in policy
All members of a Family
Husband and Wife only
Entire charges are refunded
Entire charges less bed charges will be paid
Parents only A fixed amount on a daily basis is paid irrespective of the actual cost of treatment
Children Only Only Hospital bill will be paid 40% of base policy premium
7 The Premium on all riders put together should not exceed
325 7 326
7 327 328 329 330 331 332
7 7 7 7
The premium for accidental death benefit rider must not exceed
25% of base policy premium
30% of base policy premium NA
NA
7
Under the hospital care rider what is the payout made
10% of the sum assured
7
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?
Needs to take expert‟s suggestion
Equal to base cover
NA
NA
Number of days admitted in hospital & surgery expenses in full
Number of days admitted in hospital & surgery expenses in partial
Treatment cost of surgery subject to terms & conditions
Lump sum amount what he has incurred
Need to spend and Get claim from the insurer
Need to add that hospital as TPA
Need not to claim
Need to switch to the another insurer
Life and non life respectively
Both life insurance
Both non life insurance
Nonlife and life respectively.
Insurance coverage
Annuity part
Guaranteed and non guaranteed part
Vesting age
7 334 7 335
337
15% of base policy premium
Specified amount multiplied by the number of days the policyholder is hospitalized
333
336
33% policy of another person premium certain policy exclusions
7 7
What are the benefits to the policyholder Under Surgical care rider? Health insurance policy holder takes treatment in a hospital which doesn‟t have cashless facility. How the policy holder will get benefited Health insurance rider and critical illness rider in classified under In a pension plan illustration what are the parts which shows the benefit for an annuitant.
7 What is commutation of installments
338 339
7
7 340 341 342
7 7 7
343 344
7
Health Insurance is needed because Rajan and Rajini has taken a Family Floater health insurance Plan of 4 lacs. They met with an accident and had a hospital bill of 6 lacs. Which is true for this situation: Open market option under Annuity policy would extend which of the following benefit? Ajit and vijit are 2 friends paying same premium for health insurance. Why ajit has higher tax exemption eligibility than vijit While calculating retirement fund required for a self employed person which of the following option will automatically be ruled out In case of pension plans a guaranteed minimum return of 4.5 % is applicable when the plan is
7
7 7
347 348
7
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
7 349 350
7
Hospitalization rider has the following benefit: In a Health insurance plan what the particular feature is likely to cause the Insurer to decrease the Renewal premium?
7 351 352
7 7
353 7 354 7 355 7 356 357 358
7 7 7
359 7 360
The lump sum withdrawal before receiving maturity benefit
The lump sum withdrawal before receiving Survival benefit
The lump sum withdrawal before receiving Death benefit
Life is very uncertain
Cost of healthcare has increased significantly
Premium increases with age
NA
They would get the claim of 6 lacs since the individual cover is 8 lacs
The claim will depend on the surveyor
The maximum claim will be of 4 lacs
Rajan will get a claim of 3 lacs and Rajini will get 1 lacs
Ensure Better annuity rate
Increase in the range
Increase in return
Switch of Funds
Ajit is above 65years of age whereas vijit is below 65
Ajit is NRI and vijit is Indian
Ajit‟s health is better than vijit
NA
Gratuity amount
His standard of living
NA
NA
Indexed
Guaranteed
Unit linked
NA
A Family Floater Plan is the same as a Individual Plan
Only self and spouse can be covered in this plan
Any number of people may be covered in this plan.
The insurance cover is shared amongst the family members in no fixed Proportion
25% each
15% each
50% each
No Proportion
Critical Illness Rider
Hospitalization Care Rider
Accidental Benefit Rider
Surgical Care Rider
X only
X with wife
X with wife and kids
X with all
Which of the following is true regarding Family Floater Health Insurance Plan?
345 346
The lump sum withdrawal before receiving periodic installments of annuity
Daily hospitalisation benefit: ADB rider premium cannot exceed Customer has opted for a 5 yrs guaranteed annuity option. What will happen to annuity, if the customer survives for 5 years after the end of guarantee period? 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 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….. Some Health Plans will give coverage for family members also. We will call these plans as….. 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? 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?
Person receives fixed amt daily for no of days in hospital
Person receives an amount equal to the expense.
Person receives a fixed amount of 1000 daily.
Person receives benefit only if he is hospitalized for 3 days minimum
Cashless facility
Exclusion
No claim bonus
Waiting period
No of days spent in hospital multiplied by Daily hospitalisation benefit
NA
NA
NA
30% of the base premium
NA
NA
NA
1. paid up to 75 Yrs
2. annuity will be continued for next 5 Years
3. till he die
4. not remembered
1. Critical Illness Rider
2. Hospitalization Care Rider
3. Accidental Benefit Rider
4. Surgical Care Rider
1. National Saving Certificates.
2. Equity Linked Saving Schemes.
3. Principle component of home loan.
4. Premium paid for Health Insurance Plan.
1. Rs. 3, 00,000/-
2. Rs. 4, 50,000/-
3. Rs. 90,000/-
4. Rs, 4, 85, 468/-
1. Collection Phase.
2. Accumulation Phase
3. Pension Phase.
1. Family Health Insurance Plans
2. Total Protection Policies.
3. Family Floater Health Insurance Plans.
1. Taking Life Insurance plan with Critical Illness Rider.
2. Taking Health Plan, Insurance Plan separately.
3. Taking Medi-claim plan with Life Insurance.
1. Young Unmarried.
2. Young married with children.
3. Retirement.
4. Primary Phase. 4. Family Rakshak Health Plans. 4. Taking Hospital Benefit Plan with Endowment Plan. 4. Children.
Which of the following is not a feature of WOP rider?
7
Mr. Ramakant is 35 years old. He has bought retirement plan for 20 years. This type of pension plan is known as..................
1. immediate annuity
2. life annuity
3. deferred annuity
4. joint life annuity
7
Mr. Ranga has taken Critical Illness Rider. In which of the following scenarios the insurance company will pay him......
1. When Mr. Ranga dies due to critical illness
2. When Mr. Ranga is diagnosed a critical illness
3. When Mr. Ranga's family member will be in critical illness
4. When Mr. Ranga dies due to severe road accident.
7
Mr.Feroz has taken policy for critical illness worth Rs.1 lakh in health policy. He also has a term plan worth Rs.10 lakhs. Mr.Feroz was hospitalized after he was detected with cancer .Unfortunately he died after 3 days of treatment. How the claim will be settled?
1. claim of critical illness and 10 lakh from term policy will be settled
2. claim of hospital charge Rs 20,000 and 1 lakh for death will be settled
3. Claim will not be settled as he died due to cancer
4. Claim will be settled as per the instructions of underwriter
7
Which one of the following cannot be covered under Critical illness rider?
1. Blindness
2. Paraplegia
3. Coma
4. Brain Surgery
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
7
Rohit is working as sales manager with an FMCG company. His job requires him to travel across states. He is planning of covering his additional risk involved while travelling and a savings plan. What suggestion would you give him as an agent?
1. To purchase an accidental rider with a savings insurance plan.
2. To purchase a health plan along with a savings insurance plan.
3. To save through fixed deposits in bank.
4. To purchase a medical plan.
7
The general need for purchasing a health insurance plan at an early age results from which of the following factors?
1. The premium decreases with increasing age.
2. The premium remains constant with increasing age.
3. The premium may increase or decrease with the increasing age.
4. The premium increases with increasing age.
7
The life expectancy in India is constantly improving and is well above 60 years. This also brings along challenges. These challenges can be covered through
1. Equity.
2. Bank fixed deposits.
3. Health insurance plan.
4. Savings insurance plan.
7
Anand has purchased a pension plan which is nearing completion of accumulation phase. He is in need of finances to make down payment of car he wants to purchase. At the end of accumulation phase how much he can make tax free withdrawal?
1. 1/5th of accumulated amount.
2. 1/3rd of accumulated amount.
3. 2/5th of accumulated amount.
4. 2/3rd of accumulated amount.
7
Which of the following is not featured and benefit of rider?
1. Providing additional cover
2. Maturity benefit
3. Nominal cost & flexibility
4. Customization and tax benefit.
1.10 lac
2. 20 lac
3.30 lac
4.5 lac
1. Accidental death benefit (ADB)
2. Critical illness (CI)
3. Hospital Care (HC)
4. Term Rider.
361 362
1. The rider waives future premiums in 2. This rider is ideal for helping to prevent a 4. WOP rider can be 3. The main strength of WOP is the payment of the event of the disability or death of policy lapsing due to non-payment of premiums offered with all full sum assured. the policy holder. due to death or disability plans
7
363
364 365
366
367
368
369
370 371
7 372 7 373 374 375 376 377 378 379 380
7 7 7 7 7 7 7
8
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: 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. The risk of unemployment is covered with what benefit in the policy In Surgical benfit rider what would be the payout procedure A Critical Illness claim is settled in a policy. The benefits of the policy can be used for If a health rider is taken in a policy, maximum rider premium can be %age of base premium 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 Under daily hospitalisation cash benefit scheme the amount payable is increased due to what reason Insurance addresses the needs of people with risk of living too long by.. Why do Self Employed Individual have the need to buy Medical Insurance rather than People working in public Sectors
Rider Continouation Subsidiary discount Per day Hospital Cash Benefit Respective Per today the Hospital surgery made Cash Benefit irrespective to the Will surgery get lumsum made benefit respective to surgery have Irrespective been made to the sugery Only for Illness
For Repairing house
Only For Doctors fees
Not specified
25%
50%
75%
100%
Charges
Compounding
Taxation
Premium increase
Change in hospital
Special consultant charges
Admission to ICU
Extensive documentation
Restricting the max age at entry
Extensive underwriting at inception
Retirement and pension plans
Public Sectors do not get Sick often
Public sector employees enjoy Medical Insurance Covers related to Job
Self Employed people do not have Sick Leave
Loans are available faster for Public sector EMPLOYEES
Health policy for child
Health policy for wife
Life insurance policy for wife
Life Insurance policy for himself
Marginally decrease
Singnifcantly increase
less than after 15 years
will remain same
income protection
inheritance planning
investment efficiency
long term savings
381 8 382 383 384
8 8
Mohit has two kinds, one of 6 years and other 8 years.He is the earning member and not having life cover. Before advising him to take health policy, what he should be advised. Manoj a 26 year old is having 7 years old son. What will happen to his monthly disposable income after 15 years of job Samir is married and he has only one partner,with dependant parents and no child,which should be his priority
8 385 386 387
8 8 8
388 389 390 391 392
8 8 8 8
8 393 8 394
The sole focus during a client‟s fact-find session was healthcare requirements and estate planning. Which main life stage is he most likely to fall into? A Couple has 7 years old son, What solution would they be looking for 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 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 financial planning session if the agent finds out the following needs, which one should be given the top priority. Needs: Income protection, Childs education, marriage and emergency funds. 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?
8
395 396
8
8 397 398
8 8
399 400
8 8
401 402
8 8
403 404
8
8 405 8 406 407 408 409
8 8 8
In the context of financial planning, how is the difference between real needs and perceived needs best described? If a person is concentrating more on health plan and retirement plan then at which stage of life is he in. 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? 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? Sumit is having 2 children. He wishes to have health cover for himself and his wife. Which suits him the most? A client has got some funds and wants to provide for retirement and margin money. What should be his priority While planning for retirement fund to calculate the required amount needed at that time we should consider as priority Ajay is 35 years old. He wants good amount of life insurance cover along with savings element with no defined term. Which plan should be suggested The income of an individual can be protected with the help of A married couple having 9 year old child have to consider life insurance, health insurance, child investment & retirement plans for their better future as a family but at present condition which aspect should be kept at lowest priority? After completing a Fact Finding activity for a client, who is self employed, the main reason why it is important to record the type of work that he is involved in is… Mr. Shyam is having 9 year old child. Which product is not to be given priority? What is the major reason for self employed to take insurance. What is the major reason for conducting fact finding exercise?
Young married couple
Young married with children.
Pre-retirement.
Retirement
Retirement
health care
child education
life cover
Childhood
Young Married
Pre Retirement
Retirement
Charges
Interest
Inflation
Taxation
Young
Pre- retirement
Retirement
children
Term plan
Endowment plan
Whole life plan
Money back plan.
Risk apatite of client
His future aspiration
Commitment to need
Willingness to pay
Shailesh is very older than ankit.
Shailesh‟s income is more than Ankit‟s income
NA
NA
Childs education
Marriage
Emergency funds
Income protection
Retirement plan
Health insurance for parents
Term Assurance
Endowment Plan
Real needs are financial needs and perceived needs are non-financial needs.
Real needs are actual needs and perceived needs are based on a client‟s thoughts and desires.
Real needs are identified by the insurance agent and perceived needs are identified by the client.
Real needs are needs which satisfy an objective and perceived needs are needs which do not satisfy an objective.
Young unmarried
Young married
Young married with Kids
Pre retirement
Marriage.
Savings.
Education.
Protection.
Quantify clients need
Priorities Clients Need
Recommending Product
Fill up the proposal form
Money Back
Term Plan
Endowment Plan
ULIP
A family floater
Life insurance
Individual cover
Group health insurance plan
Margin money
Retirement plan
Depends upon his actual age and years left for retirement
Depends upon the amount needed
The inflation rate
The interest rate
His income
NA
Endowment
Term
Whole life
Moneyback
a unit linked policy
a term life policy
an endowment policy
a money back policy
Child Investment
Health Insurance
Life Insurance
Retirement
It affects the basic cost of cover
Dictate the Rider Benefit should be recommended
Helps to quantify the client‟s attitude to risk
Influence the tax status
Health plan
Child Plan
Life Insurance
Retirement Plan
Save Tax
Fluctuating income
High Returns
Need analysis
Understand about company
Introduction of agent
Protection Understanding the Customer
8 410
Naveen, aged 32 years, has taken money back plan. He is a teacher by profession. Naveen referred Prasad to Ram. Prasad is also teacher. Ram who is an agent advised Prasad to take money back plan as he is of same age (33 years). Is it the right advice? Why?
8 411 8 412
There is a relation between Age, Risk and Risk appetite. Which relation is most likely to be acceptable? Regular savings creates a fund to meet adverse incidents in future. For drawing a financial plan for savings needs of an individual without capital, what is the Fund which comes first?
Age increases, Risk increases and the Risk appetite decreases
Age increases, Risk decreases and the Risk appetite increases
Age increases, Risk decreases and the Risk appetite decreases
Retirement fund
Emergency fund
Fund for untimely death
Education Fund
an unmarried young
A self-employed person
Reasonable
NA
NA
8
During financial planning session if the agent finds out the following needs, which one should be given the top priority. Needs: Income protection, Childs education, marriage and emergency funds.
1. Childs education
2. Marriage
3. Emergency funds
4. Income protection
8
Perceived needs are those….
1. Short term needs.
2. Imagined to be important by Advisor.
3. Imagined to be important by client.
4. Long term needs.
8
Need analysis involves identifying………
1. Financial provision to meet predictable and unpredictable needs.
2. Capacity to pay the premiums in future.
3. Existing insurance plans.
4. Family and Employment details.
8
Mr. Shanth is in his early 20s and has just started earning. His risk appetite is expected to be.....
1. high
2. low
3. normal
4. Neutral.
The younger the age of an individual..............their liabilities will be.
1. the lower
2. the higher
3. the smarter
4. the superior
1. Pre-retirement stage
2. Post retirement stage
3. Married with older children stage
4. Employment stage
1. Real need
2. Perceived need
3. Imaginary need
4. Important need
8
8
421 8 422
A provision for superannuation is normally taken a high need to A person has 6 months of emergency funds.This is:
Mr. Ramachandra's son Mr. Bharat has just employed as a software engineer, daughter Anusha has got married. Now Mr. Ramachandra is 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 wants to buy an expensive car when he will have sufficient fund. Here Mr. Vinodh's need is.............
8
Which are the two primary needs of any customer in any point of life?
1. Investment and retirement
2. Investment and Protection
3. Investment and savings
8
The concept of need based selling involves
1. Selling what company wish to sell.
2. Selling what adviser wish to sell.
3. Selling what customer requirement is.
1. Retirement need.
2. Tax planning need.
3. Financial security need.
1. Likely to increase.
2. Likely to decrease.
3. Will fluctuate.
424 8 425 426
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? The Central Bank has recently announced the decrease in interest rates. The prices of bonds are
8
During the fact finding session as an agent you should follow which one of the following process?
1. Prioritize, Identify & Quantify Needs.
2. Identify, Quantify & Prioritize Needs.
3. Quantify, Identify & Prioritize Needs.
8
Amit is looking for term insurance plan for protection of his family, he is advised to approach to:
1. Property Insurance
2. Life Insurance
3. Health Insurance
8
What do you mean by Double Income Family?
1. When a person of the family is involved in double businesses or jobs.
2. When both the life partners are earning members of the family.
3. When the income of a family is just the double of income of another family.
8
In which of the following case there is no defined retirement age?
1. Public sector employees
2. Private sector employees
3. Professionals & Businessmen
427 428
429 430
By addition of Premium waiver rider to the proposed Endowment assurance plan A Government employee NA
a Public sector employee
8
8
423
Age increases, Risk increases and the Risk appetite increases
A Proposer asks for double death benefit in an Endowment assurance plan for 15 years. How his proposal will suitably be dealt with?
418
420
No, as there is an age difference.
By addition of Term assurance rider to the proposed Endowment assurance plan
416
419
Yes, as both are teachers
By addition of Accident Benefit rider to the proposed Endowment assurance plan
413
417
No, customers needs are different
By offering another Endowment assurance plan
8
414 415
Yes, as Naveen and Ram are of same age.
4. Investment and life needs 4. Selling what IDRA wants company to sell. 4. Asset building nee4. 4. No change is likely. 4. Prioritize, Quantify & Identify Needs. 4. Liabilty Insurance 4. When the members of a family do not work at all. 4. All of the above
8
Which one of the following is true?
1. Every individual‟s income and expenditure pattern is same.
8
Ram has set a provision for contigency which can survive for 6 month .This amount is considered as
Adequate
2. Every individual‟s income and expenditure pattern is different.
3. An individual‟s income and expenditure has no relation.
4. An individual should not keep in mind his income while planning his expenditure.
Inadequate
too low
too high
431 432
8 433 8 434 435 436 437 438 439 440 441
8
client need analysis
Product Pitching
9
Fact finding sheet allows the agent to Mr A has been approached by the Agent and on fact finding the score is 3 , this represents To ensure that the premiums are paid out of a legitimate source of funds cash is accepted With effect from 1st 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..
Analyze customer needs
Select the product
Proof
Pre retirement Finding out Moral hazards Reference
Low Risk Taking
High Risk Taking
Moderate Risk Taking
Zero risk Taking
Up to Rs 50000
Up to 99990
Up to 100000
Without any limit
Commission Pay to their agents
Detail of charges
Both of the above
None of the above
To pay the premium
To fill in the proposal form
To ask the documents
None of the above
Consulting the client‟s parents
Consulting the family of the client
Reviewing his existing investments
Benefits of the products
Commission on the products
NA
KYC document
Benefit illustration document
Client benefit document
Annuity Plan
Whole Life Plan
Health Plan
9 9 9 9
9 9
444 9
9
450 451
for completing ACR
Ask the client to fill the proposal form
Find out the reasons for refusal
Must try to convince the client to follow his recommendation
Must try to force the client to follow his recommendation
Disability
Unemployment
Sickness
Education All of them 4. Willingness to pay 4. Clarification Questions. 4. Lapsed policy details. 4. Recommend to take his own time to take a decision.
House
House loan
Investment in shares and mutual fund
9
During Fact finding, rating is mentioned „3‟. This Indicates
1. Risk apatite of client
2. His future aspiration
3. Commitment to need
9
Which type of questioning is very useful to gather information from clients?
1. Closed Ended Questions
2. Open Ended Questions.
3. Interrogative Questions.
9
Which is the not part of KYC norms?
1. Photographs
2. Proof of identity
3. Proof of address.
9
During the recommendation stage the advisor needs to......
1. recommend the products that best meet the client's needs
2. recommend to wait some days to invest
3. recommend the new product the company has recently launched
9
In which of the following an agent will collect the customer‟s Personal data, professional data and financial data
1. Fact Finding Sheet
2. Advisor Confidential Sheet
3. Customer Data sheet
4. Personal and financial data sheet
9
Mr.Mohith, 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?
1. Fact Finding document
2. B.KYC document
3. C. Benefit illustration document
4. D. Client benefit document
9
Mr.Harsha an agent wants do a thorough Fact Finding for his client to Mr.Kishan who is a business man. Which of the following information will be helpful to know about the earnings and Expense of Kishan?
1. Client‟s Profits and Withdrawals from business
2. Client‟s Expense statement
3. Client‟s business details
4. Client‟s business records
452
453
454
455
Childhood
9
9
449
What should an agent do in order to understand the mental state of Fact finding client in respect to his investments in saving products During product recommendation the agent should explain the product The needs that came to fore in fact find in relation to process An agent was explaining to his customer the guaranteed benefits of the product. Which one of the following documents he would have Fact Finding document used to explain the same? Naresh is married and his daughter Sneha is 3 years old. Which plan Term & Children Plan can he take?
Retirement
If the recommendation of the agent has been rejected by the client, the agent should: Financial planning may not be taken as complete till inclusion of the predictable needs of the clients. It is likely to emerge from the incident of Which one is not an asset
446
447 448
Young Married with no children and Which is suitable life stage to buy Unit linked insurance plan? Single income family X and Y are married, they are planning for estate planning, which life Young married with single income no stage do they belong to kids objective of fact finding
442
445
Explain him difference between real need & perceived
Explain him difference between Explain him difference between financial & non Explain him difference between important & short term & long financial need unimportant need term need Young Married with children and Young Married with no children and Double Young Married with children and Single income Double income income family family family
9
9
443
XYZ client wants to buy a car in future , however his financial planning shows that he cannot afford car as of now .As a financial planner you should
As an adviser why is it essential for you to carry out the financial planning exercise with the prospective clients?
1. Individuals understand their real needs and can prioritize them.
2. Individuals have same financial needs at different stages of the life cycle.
3. Individuals do not understands their real needs and cannot prioritize them.
9
After undertaking financial 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.
3. Communication skills.
9
The objective of Fact Finding is to
1. Gather Clients Information only.
2. Identify only the client‟s needs.
3. To provide solution of company‟s choice.
9
To explain the benefits of a product, the insurance adviser should
1. Provide the product brochure to the client.
2. Provide Benefit illustration documents to client.
9
Amit & Rashmi are newly married. Both are working couple. They want to invest their savings of 100,000 annually to build corpus to make down payment for their house 5 years from now. An adviser sold than a unit link product to meet their requirement. This may result in
1. Ruining the long term reputation of company.
2. Opportunity of new business for adviser.
3. Bad reputation of the individual adviser.
4. Financial burden on the couple.
9
To prove one‟s identity in accordance with KYC process, the customer needs to submit following document excluding ……….?
1. An Age Proof
2. An Identity Proof
3. An Address Proof
4. Education Proof
9
Vinod being an insurance agent can offer assistance to his client Ramesh by:
1. Providing him emergency fund.
2. Matching the product with Ramesh„s financial need.
3. Recommendation of product with highest return.
4. Discourse saving in a purposeful and need based manner.
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
1. KYC documents
2. Benefit illustration documents
3. Fact-finding sheet
4. Financial details
Ask the client to sign the contract of relationship
Check the client's commitment to the need & continue with process
Should take some more time to conclude the sale
456
457
458
459
460
461
463 9 9 465 9 466 10 467 10 468 469
10
Which one of the following documents distinguishes between Guaranteed and non-guaranteed benefits? After fact finding , Ram has presented the product to the client in te second meeting . If client approves the recommendation what should be the next xtep
Discuss with proposer about future life which of the following is the final stage of fact finding with the client? prospects and changes Completion of Proposal form a policy holder takes two insurance policy and the premium amount is identical and he gets lesser commission in one of contract the one policy has more SA ONE POLICY has more term reason is likely to be An agent reveals his commission received from insurance sales to X has brought other limited premium X&Y .Both plans are of same duration . Why is commission of X far Y has brought a single premium product product higher that that of Y Customer asks the agent to disclose the commission . The agent disclose on demand Not disclose should
476
One of the policy has higher Premium
X is married
Y is Single
Should call up the Insurer
Should avoid the topic
Ask the insurer to give a policy endorsement letter
From the fact details
From signed copy of benefit illustration
From ticked column of proposal form
10
Churning is bad , based on which aspect
Agents earn Lower Commission on churning
Policyholder gets more benefits
Policyholders suffer due to surrender charges and benefits
Insurance companies get good branding
what over riding criteria an insurance agent consider while proposing a solution Sales Target is reduced . Churning will Higher persistency to the insurer ensures what ? Persitency =has increased from 82 % in previous year to 86 % this year . That means
risk
suitability
Flexibility
Cost
Increase More productivity
Decrease Higher attrition
Will not affect Higher Profits
Partially Higher S.A
more lapsation
more attrition
less lapsation
No profits
10 10 10 10 10 10
477 10 478
one policy is a single premium
The best way to prove that customer of a ULIP policy is given awareness about the commission paid to the agent is
471
475
Recommending Solutions
Should close the discussion then & there Coming to mutual agreement with objective for Solutions
10 470
472 473 474
4. Both identify clients‟ needs & gather information.
4. Provide the 3. Provide the terms and conditions document website address to to the client. the client.
462
464
4. Individuals‟ real and perceived needs are same. 4. Client information gathering skills.
9
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
Increase more business
Increase in the agents earning
Will improve reputation
Will have impact in his commission
2011
2012
2013
2014
When the customer asks him
After the fact finding process
After quantifying the need
After the product is recommended to the client
479 480
10 10
10 481 482
10
10 483 10 484 10
NA The company will not declare bonus Respect this confidentiality by not disclosing it to anyone Should review once again
If a person already suffering from some disease and had not Notify the insurer of this matter Refuse to act for the customer benefit mentioned it in the proposal form then as per IRDA code of conduct the agent should If the client does not wish to proceed with the recommendations right Should ask for the reason for not going with the Insist on taking the product right away at the moment the agent should recommendation During a fact finding process the need analyzed were income replacement and children‟s education. But the customer insists on Do the fact finding exercise again Insist with the client to take a term plan only a child plan for the time being and asks the agent to give him a child plan. The agent should. After doing the need analysis of the client, the agent advised the Enquire about the refusal from the client to opt for TROP product. But the client refused. According to Suggest an alternative plan client ethical business practices what will the agent do ? Which of the following act from agent will be specifically useful in case of annual premium policies compared to monthly mode policies
Ask the proposer‟s doctor to send details to the insurer Should ask for a future date from the client Give a child plan and revisit the client on a later date
Give the lead to another agent
Pass on to the superior
Pass on to the other agent
Offering credit facility to client
Offering premium collection facility to client
need to disclose the amount of commission
Switching
Doing a financial planning
Churning
Fact Finding
The customers are satisfied with the products
The company is acquiring more business and new customers
A large numbers of policies have lapsed / surrendered resulting in loss of profit
The company will not declare bonus
a kind of gift for purchasing insurance products
a rebate on the price amount like other sales
a breach of IRDA‟s code of conduct
a breach of a provision of the Insurance Act,1938
10
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 Persistency can be improved by:
Providing service to the clients
NA
NA
10
Remuneration to Agents includes
1. First Year Commission
2. Renewal Commission.
3. Both of the above.
10
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……
1. Switching
2. Churning
3. Redirecting.
4. Shifting.
10
An insurance agent is intermediary between….
1. Client and Insurance Company
2. Insurance Company and IRDA
3. Client and IRDA
4. Insurance and Reinsurance company.
10
What is the factor which has influence on persistency?
1. Role of Agent
2. Product Design.
3. Policy Servicing
4. All of the above.
10
For an insurance advisor churning is.............practice
1. good
2. bad
3. compulsory
10
Which one of the following factor does not help in the Persistency ?
1. Regular reminders about the premium to the customer
2. Flexibility of Premium payment to the customer
3. Dispatching Discharge voucher to the customer
4. appreciable 4. Continuous servicing of the policy
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
2. Surrendering the policy
3. Switching the policy
4. Claiming the policy
10
Mrs. Hansa an agent, has planned to sell maximum products within a 1. It will benefit both the company and short span of time by giving maximum rebates to the customer to the customer complete the contest target of the company.
2. Reputation of the company will be high due to offers to the customer
3. Agent will be terminated
4. Agent will be qualified for the contest
10
Mr.Raghav is an expert in fact finding .Mr.Raghav helps his brother in 1. Raghav will be promoted to the next his job by sharing the information of his clients after the fact finding level he does to procure insurance. What will be the outcome ?
2. Raghav will be terminated
3. Raghav License will be cancelled
4. Customer will complain to Ombudsman
10
10
491
NA A large numbers of policies have lapsed / surrendered resulting in loss of profit
need not disclose the amount of commission
10 10
489 490
Higher profits The company is acquiring more business and new customers
Issuing reminders
487 488
A low persistency ratio for the insurance company means that:
Lower profits The customers are satisfied with the products
Explaining charge structure
485 486
What is the disadvantage to the insurer in case the persistency falls
492
As per the IRDA circular an insurance agent If the agent recommends the client to terminate an endowment plan and take a whole life in order to earn higher commission its termed as A low persistency ratio for the insurance company means that:
needs to disclose the amount of commission Should not disclose on demand
493 494 495
496
497
498
499 10
The agents duties and responsibilities ends
1. When the clients policy is issued.
2. When the client‟s needs have been established.
3. When the nominee has changed.
10
When client declines the recommendation by the insurance adviser even after resolving the concerns, the adviser should
1. Persuade the client to purchase the policy.
2. Should ask for reference who might be interested in financial planning.
3. Should never approach the client ever again.
10
Under what circumstances the surrender of a policy should be recommended by the agent?
1. When a client have been sold the right solution.
2. When a client is holding a product having good value for money.
3. When the policy has been mis-sold and do not match his needs.
500 501
502
NA 4. Salary and Reimbursement.
4. When the maturity/claim is settle4. 4. Should do nothing. 4. When the client is enjoying good financial status.
503
10
What key benefit high persistency ratios have on insurance adviser?
1. High renewal income.
2. Less renewal income.
3. Fewer client bases.
4. Unsatisfied clients.
10
Under which one of the following acts the maximum remuneration that can be given to insurance agents described?
1. Income Tax Act
2. Indian Contract Act
3. Insurance Act 1938
4. IRDA Act 1999
10
Which one of the following is not a benefit of persistency?
1. Helps the client in achieving goals
2. Reduction in costs
3. Increased client satisfaction
10
Satish as an insurance advisor while recommending to his client Ramesh is not suitable policies –
1. Satish should check the Ramesh „s commitment to the needs
2. Satish should outline the reasons for recommendation for a particular policy
3. Satish should check the acceptance or rejection of the recommendation.
10
Why a building long term relationship with clients is necessary?
1. A satisfied client may be the source of other potential clients
2. Reviewing financial needs and plans are necessary with changes
3. Agent has the option to recommending highest commission at any time.
10
As per agents code of conduct,Agent Recommends protection Plan,but the client insist on investment plan for the financial planning,what an agent should do!
504 505
506
507
508 509
10 10
510 10 511 512 513 514 515 516
10 11 11 11 11 11
517 518 519 520
11 11 11 11
521 522 523 524 525
11 11 11 11 11
526 11 527 11 528
Insurers observe high persistency ratio,then
While on sales of an Insurance plan Mr…. Had to show his license
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 after how many days from the date of admission of the claim? Under the IRDA guidelines for Claim settlement, any queries or additional documents can asked from the claimant within A claim was paid in a policy and it 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 indicates that the policy was.
4. Introduction of a new insurance product or a change in a client‟s Circumstance
Recommend both the plans
Propose an investment plan and discuss with him regard to discomfort of term plan
Refuse to act with client
Report to the senior and seek his Guidance
policy reserve increases
Reserve decreases
Remains constant
Surplus decreases
Refuse to proceed
Proceed with agreed need and document the rejection
Get second opinion
After clearly identifying 2 needs from fact finding, client agrees to go for one and gives the reason, what should the agent do now Do a fact finding again Nikhil was in the process of closing a unit linked plan sale and the customer put a query which Nikhil does not know. What should Nikhil Decline to act for the client do?
What is the maximum Time in which The insurer should settle a claim when all documents are submitted A missing person is considered to be dead after 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% A claim was submitted & in how many days company should ask for additional documents if required 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 According to IRDA guidelines, how long does an insurance company have to complete its investigation of a claim Indisputability clause can be enforced by the insurance company during the
4. Decreased revenues 4. Should advised him to surrender all the polices which are not buy from satish.
Direct him to the product booklet
Ask his Supervisor and clarify
Ask the client to put the query in writing
Due to the category of customer
the customer demanded
Due to the profile of the customer
NA
3 days
15 days
30 days
10 days
5years
8years
12 years
7years
7%
9%
7.20%
8%
15 days
10days
20 days
30 days
suicide
murder
Death was due to Accident
Body not found
30 days
90 days
120 days
180 days
First five years of policy
First Two years of policy
Claim
Inception of the policy
Not necessary to pay premium until court decree
Necessary to pay premium until court decree
Claim not admissible
NA
10 days
20days
30 days
60 days
5 days from the receipt
10 days from the receipt
15 days from the receipt
20 days from the receipt
It was assigned.
It was paid up.
It was lost.
It was surrendered.
It was lost.
It was paid up.
It was lapsed.
It was surrendered.
Fraud
None of the above
Premiums paid or not
NA
Early
General
Survival claim will be paid to the Legal heirs and the death claim to the Nominee
Bothe claims will be paid to the Legal heirs
Misrepresentation Lack of insurable interest 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 Age admission Disclosure of material fact 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 Normal Fraudulent 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 Survival claim will not be paid and only Both the survival claim and the death claim will without receiving the survival benefit amount. What will be the death claim will be paid to the Nominee be paid to the Nominee legitimate procedure to pay out the claim?
A regret letter will go intimating that nothing is payable as death claim
Full sum assured will be paid as death claim
Paid up value, if any, will be paid as death claim
11
Which of the following falls under voidable contract?
1. Misrepresentation
2. Lack of insurable interest
3. Fraud
11
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
1. He has switched his fund
2. He has opted for Settlement option
3. He has he has redirected his past premium.
4. Policy was lapsed on the time of maturity
11
Incase of presumption of death
3. Claim not admissible
4. Depends on case to case
11
What is meant by a claim under insurance policy?
3. Any demand made by the policyholder on the insurer.
4. All of the above.
11
Who will take the initiation to settle the maturity claim process?
1. Client
2. IRDA
3. Advisor
4. Insurance company
11
Which is the right statement regarding claim enquiry?
1. The insurance company makes enquire only on death claims.
2. The insurance company makes enquire on maturity claims only.
3. Enquiry will be done on both Maturity and Death Claims.
4. Enquiry will be done if death happens before one year from policy inception date.
11
Mr. Chintamani has taken a policy from ABC Company on 2nd March 2010, but unfortunately he died on 18th August 201 His death claim is considered as..........
1. Normal death claim
2. Early death claim
3. Abnormal death claim
4. Unnatural death claim
11
Detailed Investigation will be triggered in case of......
1. Maturity claims
2. All death claims
3. Early death claims
4. Rider benefit claims.
11
In insurance, if a person is not heard for .......years his is presumed to be dead.
1. 5 years
2. 6 years
3. 7 years
4. 8 years
529 530
531 532 533 534
1. Not necessary to pay premium until 2. Necessary to pay premium until court decree court decree 1. A demand to fulfill the policyholder‟s 2. A demand to fulfill the insurer‟s obligations. obligations.
535
536 537 538
11
In the process of settling maturity claims....
1. the company will wait until the claimant comes to office to demand the claim
2. the process is initiated by the company well in advance of the maturity date
3. it is the responsibility of the claimant to approach the company
4. If the claimant does not come within a month the entire maturity amount will be forfeited.
11
Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He also has an ADB rider worth Rs. 4 lakhs. Unfortunately Baskar died in a car accident. How much will be the death claim settlement?
1. Total 7 lakhs will be paid as death had taken place
2. Total 4 lakhs will be paid as death had happened due to car accident
3. Total 11 lakhs will be paid
4. Total 7 lakhs will be paid without any deduction.
11
Insurer will not pay the claim unless
1. The policyholder makes a demand.
2. The nominee makes a demand.
3. The event insured against happens.
4. The insurer completes the enquiry.
1. The policy was not in force.
2. This condition is excluded in the policy.
3. The claim is fraudulent.
4. The claim is an early claim.
1. The claim may not be genuine.
2. The policy may be pledged.
3. The facts were misrepresented.
1. The circumstances are legitimate.
2. Representation of facts by the policyholders is true.
3. The life assured is major.
2. Legal heir of life Assured
3. Debotrs
2. Legal heir of the life assured
3. Appointee Only
4. will be Payable to Saanvi (Nominee) at the age of 18th
2. Advisor confidential report
3. Post Mortem Report.
4.Coroners Report
Lien
Commutation
Loan Facility
539
540
541 11 542 543
11
11
Aman has taken a term plan for 20 years. In the 3rd year he suffered financial crisis due to which he was unable to pay premium within grace period and died after 1 month. The nominee files a claim and is rejected because When a policy is lost, insurance company take utmost care while settling maturity claims because What key event is most likely to make an insurance contract not a valid contract?
544 545
11
11 546 547
11 11
548 11 549
Full sum assured less deduction of unpaid premium will be paid 4. None of the above
A life assured died after 40 days from the payment of his monthly premium. If there be any claim, how the claim will normally be dealt with?
11
On foreclosure, if Death claim arises before the payment of the 1. Nominee surrender value, the payment would be payable to: Gaurav is working in MNC at the age of 32 bought an Endowment Plan. He had nominated his 1 year old daughter Saanvi, but not able to get the Signature of her appointee due to unavailability of his 1. Nominee only spouse .after 5 year. He died in road accident, now claim money would be payable to: Which one of the following report is not considered in case of Pankaj 1. Policy first information report. Bought a plan in 2009 & died in road 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 Two policy Matures at the same time for an insurance company,what are the other requirment for maturity with respect to policy.A is absolute assignment and B is conditional assignment.pending requirment in relation with B A loan and interest is outstanding
A loan amount and oustanding premium is pending
A outstanding premium is pending
4. There is no nomination. 4. There is no insurable interest attached to the policy. 4. forfeited the Premium
A sign on discharge form
550 551 552 553 554 555 556 557 558 559
11 11 11 12 12 12 12 12 12 12 12
560 12 561 12 562 563 564 565 566
12 12 12 12 12
567 12
Maturity benefit is equal to Sum assured plus reversionary 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 reversionary bonus minus ? Claim within 1st anniversary An advisor while explaining the policy and to sell he accepts to give a 10% part of his Agents commission, what is th limits Consumer Forum at district level will hear complaints up to 20L How much is the rebate allowed by IRDA to client Nil the controller of insurance in india is A insurer advertises through daily news paper . What type of marketing is 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 designated 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? An agent recommends a term plan in keeping with the ethical standards since it was suitable to client‟s needs. In such a case what is the percentage of commission which he can rebate so as to beat the competition _____ controls monetary system in India In MWP Act Policy, claim is paid to nd
Which is the 2 stage in Money Laundering? 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.........
Outstanding premium + interest
Outstandin premiums
Third party administrator
Actuary
Claim within 1st calendar year
Claim befor the valuation date
20%
He cannot offer any commission
40L 5%
1Cr 10%
IRDA
RBI
SEBI
cross selling
direct selling
Solicitation of Policy
Brand building
No risk
Low risk
Medium risk
High risk
parents
ex wife
children
mother
2013
2015
2017
2020
When the insurance company is in the first 10 years of operation
If the agent has worked with the company for more than 5 years
If the agent has worked with the company for more than 10 years
If the agent is doing more than 3 policies in a month.
Maximum 10%
Half of the commission
Cannot rebate at all
2%
RBI Nominee 1. Layering
IRDA Assignee 2. Placement
SEBI Trustee 3. Integration
Constitution Policy holder 4. Amalgamation.
1. 30 %
2. 35%
3. 40%
4. 45%
1. his legal heirs
2. to his nominee
3. will stop automatically
4. Paid in lump sum to the survivors.
2. Section 42 of the Insurance Act 1938
3. Section 12 of the Insurance Act 1922
4. Section 34 of the Insurance Act 1932
Issuance of a license to a person has been stipulated in................Act 1. Section 43 of the Insurance Act 1939
568 569
Which official body decides to increase the interest rates?
1. Central bank of India
2. Reserve bank of India
3. Reserve bank of country
12
Which one of the section deals with the licensing of an agent?
1. Section 42 of the insurance act 1938
2. Section 42 of the insurance act 1936
3. License section of Insurance act 1938
12
Which regulations take care of the settlement of claims ?
1. Protection of Policy holder Interests regulation 2002
2. IRDA claim protection regulation 2002
3. C.IRDA policy settlement regulation 2004
12
Which of the following team represents the members of GBIC ?
1. Representatives from all insurance companies
2. Representatives from all government bodies
3. Representatives from IRDA
12
Rahul is a licensed insurance agent. As agent he must carry out his role in accordance with
1. Company‟s code of conduct.
2. IRDA Acts code of conduct.
3. IRDA Regulations code of conduct.
Under Married Women‟s Property Act, 1874 a policyholder is
1. The Life Assured.
2. The beneficiaries.
3. The trustee.
1. Insurance Company.
2. Designated Person.
3. Branch Operations Team.
4. Actuary.
1. Married Woman
2. Married Man
3. Married Son
4. Married Daughter
60000
1.5 lac
1.2 lac
3 lac
571
572
574 575 576
12 12 12 12
577 578 579
4. Central bank of country 4. License section of insurance agent act 1938 4. D. Protection of claim settlement regulation 2002
12
570
573
Claim after the valuation date He can offer up to 50% 10L 35% Insurance ombusdmen
12 13
Who has the authority in insurance company to issue/cancel the agents license Married Woman‟s Property Act 1874 provides that a life insurance Policy 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
License criteria,crimnal offence in the past.given IRDA license.Why? he was less than 21 at that time Mr.Sunil is doing premium calculation for his company, as per which Council of Actuaries authority is his profession related to
offence had a punishment of less that 2000 Insurance council of India
atleast 5 yrs hav passed since the sentence Insurance institiute of India
4. Representatives from Insurance institute of India 4. Insurance Acts code of conduct. 4. The administrator.
exception IRDA
13
basic qualifications of agent
sound mind & graduate
sound mind & good income level
Age and income level
13
Which Institution was Constituted by Insurance Act 1938
Insurance Institute of India
Life Insurance Council
Insurance Broker Association
13
What is the role of National Insurance Academy?
To regulate
To advise Government
To undertake training activities
13
According to IRDA act 1999, central governments involve in insurance industry over
Policy matters
complex technical issues
Promotional activities
580 581
582
583 584 585
13 13
Who is a regulator, supervisor and monetary authority of the financial system in India The insurance act of 1938 created which of these.
13
IRDA
SEBI
RBI
SBI
IRDA
Tariff Advisory Committee
National Insurance Academy
LIC
Rises
Decreases
Reaches at a level as per industry trends
Insurance can price their product on their self past experiences.
Provide suggestion for Premium calculation
To be an active link between Global market & Indian Life Insurance Industry
Design, implement and operate an insurance training
Regulate the investment of funds by Life Insurance company
Address of the agent
Domicile status
NA
NA
Has the power to supersede the IRDA by issuing notification.
Has the power to supersede the IRDA by issuing a bill in parliament
Has the power to supersede the IRDA by issuing draft
Can make changes in IRDA law
20%
26%
49%
51%
Insurance Advisor
Nodal officer
Chief actuary
Underwriter
Were all his information published to enhance his business.
Describe the benefits which do not match the policy provisions
De- tarrification is a process by which pricing of Insurance
586
13
What is the key function of NIA
587 588
13 13
589 13 590 591
13
13 592 593 594 595 596
13 13 13 13 13
597 598
13 13
599 600
13 13
601 13 602 603
13 13
604 605
13
Basing on which criteria the qualification of Agent is determined? If IRDA is unable 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
An agent is not required to obtain the prior approval of the insurer before placing an advertisement when: The Institute of insurance and risk management along with insurance education does what more Pricing element is done by What does MDRT Stand for? As per AML regulation, it allows cash premium not over than Which Act or Regulation provides that the Renewal commission is payable to the legal heirs of the Insurance agent in case of his death? Agent offering rebate may be fined 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
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, advantages, terms and conditions that may be offered by insurers in the respect of general insurance business. The Insurance Institute of India (III) was formed in.....
His contacts in the market to solicit Insurance General Insurance Council To Advertise globally on Indian Insurance Licensing of Insurance companies
It contains only statements that mention the agents name, logo & phone number.
He can design the advertisement without the concern of insurer.
Regulation
Redressal
Research
Repository
IRDA
Insurance Company
Life Insurance Council
Million Dollar Round Table
Major Double Rupees Tag
Major Dollar Round Tag
Rs.20000
Rs.25000
Rs.5000
CII Mean Disposition Residence Time Rs.50000
IRDA Act,1999
IRDA Regulations, 2000
Insurance Act,1938
Rs. 300
Rs500
Rs 1000
Any of them
Indian Contract Act,1872
for life
for 10 years from the date of disqualification
for 7 year from the date of judgment
for 5 years since completion of the sentence imposed
Policy matter
To present statement of IRDA act in Parliament
May issue notification
All of them.
Behavioral requirements of EGovernance
Market competition
Requirements of the Life Insurance Council
Regulations of IRDA
a behavior that is based upon the positive judgment of an individual
a behavior that is based upon the legal judgment of an individual
a behavior that is based upon the ritual judgment of an individual
a behavior that is based upon the moral judgment of an individual NA
Research
NA
NA
1. Insurance Regulatory and Development Authority.
2. Reserve Bank of India.
3. Tariff Advisory Committee.
4. Insurance Institute of India.
1. 1956
2. 1999
3. 1955
4. 1947
13
Which council among the following focus on creating a positive image of the insurance industry and would also like to enhance the Consumer‟s confidence on the same ?
1. Life insurance council
2. Consumer insurance council
13
Mr.Varun taken up his agency in July 5th 200 His lost his IRDA license while travelling. His agency has also expired. What is the solution for Mr.Varun ?
1. Need to complete 25 hours of practical training and paying Rs.50 for the issuance of duplicate license
2. Need to complete 50 hours of practical training and paying Rs.100 for the issuance of duplicate license
13
Which organization was formed with purpose to promote insurance education and training in India?
1. Institute of Actuaries of Indi1.
2. National Insurance Academy.
3. Chartered Insurance Institute.
The face of the life Insurance industry in India is ………..?
1. Life Insurance Council
2. Life Insurance Corporation
3. Insurance Regulatory Development Authority
1. Life Insurance Council
2. Life Insurance Corporation
3. Insurance institute of India
RBI
LIC
Central Government
Ombudsman
Insurance Institute of India
Insurance Association
FERA
606
607 608 609 610 611 612 613 614 615 616
13 13 13 14 14 14 14 14 14
617 14 618 619 620 621 622 623 624 625
14 14 14 14 14 14 14 14
626 14 627 628 629
14 14
14 630 14 631 632 633
14 14
For Insurance industry which association to take steps to Develop Education and research in insurance? Which is the body who provides grant to Insurance Regulatory Develompent Authoruty to carry out activites. Complaint council bodies other than IRDA grievance readdress forum & COPA What are the ways by which a policy holder can make complaints what are the ways in which IRDA can be contacted . One is thru toll free number and other is what is the maximum level of complaint that can be considered and taken action by ombudsmen What is the period of award passed to the customer decided by ombudsman? Raju is a certified license holder under what circumstances he needs to hold his certified license with him that is issued by irda
For the customer whose claim has been refused by the company, the three places where he/she should follow up are – Ombudsman, IRDA Customer Grievance Cell and ……………………….. 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 Generally insurance companies do not hold the premium in case of a fraud or misrepresentation. However, due to which of the following circumstances the insurer can retain the premium of the policyholder A policy holder is not satisfied with the services of the insurer and complains to ombudsman. In how many days from receipt of the complaint the ombudsman should pass the recommendation. The guidelines for annual assumed growth rate are given by AML Program of every insurer to include _______________, apart from Procedure, Training and audit.
4. General insurance council
4. Need to complete 50 hours of IRDA 3. Need to complete 25 hours of practical training and paying training and paying Rs.100 for the issuance of Rs.50 for the duplicate license issuance of duplicate license 4. Insurance Institute of India. 4.Insurance Institute of India 4. Insurance Institute of India SEBI
email
Toll free No.
Newpaper
Email or Toll free Number
email
Insurance ombudsmen
visiting regional office
Through Agents
20 lac
25 lac
30 lac
50 lac
2months
3 months
5 months
6 months
under all circumstances
when he sells term insurance
when he represents himself as another insurer
when he sells pension policies
he plans to change the plan
He has to explain the reasons for rejection to the customer
A policy has been rejected by the company under direct intimation to he has to inform the customer that the the customer and copy to the Agent, what is the next action of the co has broken relationship with the Agent customer Where one can approach in case of dispute IRDA 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 As per IRDA regulations IGMS should be mandatory set up by
3. National Insurance council
Consumer Forum
NA
He takes up with the higher authorities NA
10,00,000.
20,00,000.
50,00,000
1,00,00,000
Some Specific Insurer
Those Insurer who did not created Insurance Ombudsman System
All insurer
It is optional
Life Insurance Council
IRDA
Insurance Association
Insurance Institute of India
One year
Two years
Three years
Five years
10 days
15 days
20 days
25 days
Only by few selected insurers
Only by non life
Some life and non life
By all insurers.
Consumer Forum
COPA
Sebi
Life Insurance Council
24 hours
1 day
10 days
30 days
Conciliation and making awards
Counseling
Repudiation of claim
Evaluating claim settlement
Give a recommendation
Give a joint decision with the consumer forum
Dismiss the case
Give an award.
Fraudulent claim
Indisputability clause
Redressal procedure
Pending decision from Ombudsman
6 weeks
1 month
2 months
6 months Underwriter Inspection by Auditor General
Life Insurance Council
IRDA
Actuaries
Inspection by IRDA
Audit by Finance Ministry
Appointment of Principal Compliance Officer
14 634 14 635 636
14 14
637 638 639
14 14 14
640 14 641 14 642
4. 15 4. Consumer Protection Department (CPD)
1. 10
2. 12
3. 14
1. Customer Complaint Department (CCD)
2. Customer Grievance Department (CGD)
3. Consumer Affairs Department (CAD)
1. policyholders
2. shareholders
3. insurers
4. General insurers.
1. IRDA
2. Agents
3. Shareholders
4. Underwriters
1. Nodal officer
2. Grievance call center
3. Compliance cell
4. Compliance officer
1. Policyholder grievance Regulation
2. Policyholder‟s Protection regulation
3. Ombudsman Regulation
4. Compliance Regulatory
1. 10 Days.
2. 15 days.
3. 20 Days.
4. 30 Days.
[email protected]
[email protected]
[email protected]
4.Complaints@irda. gov.in
14
Parvesh bought a policy an endowment plan but after one year insurer. Found he had Aorta Surgery .now which will apply by insurer:
1. Indisputability Clause (Section 45) apply
2.Principal of Indemnity apply
3.Lien Clause
4.Utmost good faith apply
1.15
2.12
3.14
4.16
14
15 15
How Many offices of Ombudsmen the Government body has set up to Resolving insured customer‟s grievances. If there is no agreement or settlement and the recommendation is also not acceptable to the complainant, in this case the Ombudsman will grant an award If the agent recommends the client to terminate an endowment plan and take a whole life in order to earn higher commission its termed as Unethical behavior can affect the reputation
If it is acceptable to the complainant
if it is acceptable to the insurer
if the complainant decides to proceed legally
if the insurer decides to proceed legally
Switching
Doing a financial planning
Churning
NA
Insurance Agent
Insurance company
Insured person
It will bring a smaller premium
Tax exemption will be lesser
NA Tax concession opportunity could be lost forever
Insurance Agent & company It might fell short of actual needed and Underselling life insurance comes under unethical practices because family would suffer Benefit could fall short of the financial liabilities
Excessive Premium
SA ceased too early
Ethics can be defined as…
1. Those values we commonly hold to be “good” and “right”.
2. Behavior that is based upon the moral judgments of an individual
15
Which is not unethical behavior in below statements?
1. Over selling of Insurance policies.
2. Under selling of Insurance policies.
3. A study of what makes one‟s own actions right or wrong. 3. Explaining all details of the policy to customer.
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. professional
4. Perfect.
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.
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. Reserve Bank of India
4. SEBI.
15
The main reason why an agents act of underselling insurance is treated as a unethical behavior is
15
15 15 15 9
660
IRDA
Insured can contact to seek the resolution of grievances they have against insurer to IRDA through:
656 657 658 659
Consumer Affairs department
14
654 655
Consumer Grievance Redress Forum
4. Consumer Affairs Department.
651
653
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. A client demands the information on the current status of a policy indicating accrued bonus. The insurer should provide communication within
Insurance Ombudsman
3. Grievance Redressal Officer.
15
652
If any consumer is dissatisfied with the customer care cell of any insurance company to whom they can escalate their grievances.
Mandal Level
2. Internal Grievance Redressal Cell of the Insurer.
14
650
The insurance ombudsman has been appointed to protect the interest of....... The charges were not fully disclosed to the customers" is a common complaint against.....
State Level
1. Integrated Grievance Management System.
647
648 649
What the name of department that is established by IRDA to deal with customer complaints?
District Level
To ensure that the customers complaints are handled effectively, IRDA has established
645 646
For redress of grievances of the policyholders, a number of Authorities have been formed. Which of the Following authorities has been empowered to hear the complaints and adjudicate? How many ombudsmen offices located in India?
National Commission
14 643 644
Ravi was expecting a claim amount of Rs. 12, 00,000 from insurer. But it was rejected. He feels that it is repudiated on wrong reasons. Which consumer forum can he approach?
Pankaj being a license insurance advisor has to follow code of 1. Insurance Regulatory Development 2. Life Insurance Company Conduct provided by: Authority 25% 50% In case of term plan the premium for CI rider shall not exceed Reduced target of agent will have what impact on churning more likely less likely 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 NA earn from 1 insurer?
75% less transparent NA
4. All of the above. 4. Churning.
100% more transparetn NA
Correct Ans / option 1 3 4 2 1 3 2 2 4 3 1
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3 3 2 2 NA
3 1
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4
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2 1
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4 1 1 3 1 4 1 1 2 1
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9C RING
9 27 18
10 5
6 18 12
9
B C BP D C
16MM 12 10 8
3000 35 35 38 290
47.8 47 48 49.5
9000
12690
4700
8460
8910
2475
5940
