Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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What facility do insurers use to cover risks beyond their exposure limits
a. | Bancassurance | c. | Both a & b | b. | Reinsurance | d. | Neither a nor b |
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2.
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Which market areas do Micro Insurance product concentrate
a. | People with large families | c. | people employed with the
government | b. | people with low income | d. | people with high income |
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3.
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What is IRDA stands for & year of Incorporation
a. | Insurance Regulatory and Development Authority (IRDA) . The IRDA was incorporated as
an autonomousbody in April 1999 | c. | IRDA is an independent body constituted to address the grievances
of the insurance policy holder | b. | Insurance Regulatory and Development Authority
(IRDA) was constituted in 1956 | d. | None of the above |
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4.
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The amount of insurance depends on
a. | The penil | c. | Neither the penil nor the risk | b. | The
risk | d. | Both the penil and the
risk |
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5.
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A human being's value is measured by
a. | The income that he generates | c. | His academic
qualification | b. | The value of the goods that he produces | d. | All of the
above |
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6.
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The bussiness of insurance affects
a. | Availability of capital for bussiness | c. | The safety of equipments in
factories | b. | The life span of individuals | d. | All these three |
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7.
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An agent is intermediary between
a. | Client and insurance company | c. | Client and IRDA | b. | Insurance Company
& IRDA | d. | Insurance and
Reinsurance Company |
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8.
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Which statement is correct?
a. | lung cancer is peril and smoking is a hazard | c. | Both the statement is
correct | b. | smoking is peril and lung cancer is hazard | d. | Both the statement is
incorrect |
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9.
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Ramkumar is habitual car racer. What kind of hazard is this?
a. | Physical hazard | c. | Moral hazard | b. | Fraudulent representations | d. | Peril |
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10.
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Which of following refers to specific event which might cause a loss
a. | Peril | c. | Physical hazard | b. | Hazard | d. | Uncertainty |
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11.
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Which risk is associated with those events which are not in control of an
individual .and no possibility of making profit
a. | Pure risk | c. | Financial risk | b. | Particular-risk | d. | Insurable risk |
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12.
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Insurance Contract without any Insurable Interest will
result?
a. | Wagering Contract | c. | Void Contract | b. | Legal Contract | d. | All of the
above |
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13.
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To be a valid contract ,the declaration is necessary in which document
a. | Policy Document | c. | FPR | b. | proposal form | d. | RPR |
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14.
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Changes in policy can be made by
a. | Issuing a new policy | c. | Corrections on the policy | b. | Endorsement | d. | Not allowed |
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15.
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In which kind of policy the insurable interest should exist at the time of claim
only
a. | Motor insurance | c. | Liability insurance | b. | Marine insurance | d. | Travel
insurance |
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16.
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What are the factors involved in calculating surrender value
a. | Number of year's premium paid | c. | Sum assured | b. | Number of premium
payable | d. | All of
above |
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17.
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Policies as he was regularly paying the premium. What is your suggestion?
a. | Due to regular premium he can take loan from both the policies | c. | No loan from money
back but can take loan from whole life | b. | He can surrender whole life and take loan.from
money back policy | d. | He
can't take loan from whole life policy but can avail loan from money back
policy |
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18.
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Ramlal 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?
a. | Terms & condition | c. | Endorsement | b. | Preamble | d. | Schedule |
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19.
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ii Moral hazard reflects the
a. | Intentions and attitude of proposer | c. | Occupation and residence of
proposer | b. | Habits and Hobbies of proposer, | d. | Medical and personal history of
proposer |
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20.
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Mr. Gupta is recently detected with lung cancer. He would like take an
insurance. Wht is your suggestion?
a. | Time of death is uncertain, so insurance can be given | c. | He can take insurance after
submitting health certificate | b. | only lung is affected so health insurance can
be given | d. | Cannot be given
insurance for health reason |
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21.
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Ajay is 35 years old and works for a multinational corporation (MNC). He has a
ten-year-old son, Vijay, whom he dreams will one day become a doctor. Ajay’s spouse is a
housewife, and his parents are retired and dependent on him. Ajay has a home loan of 40
a. | term plan | c. | endowment plan | b. | health plan | d. | traditional
plan |
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22.
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Open market option under annuity policy would extend which of the following
benefit
a. | Ensure better annuity rate | c. | increase in
return | b. | Increase in range | d. | Switch of funds |
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23.
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Alumpsum withdrawal allowed as commutation in pension plan is
a. | 1/3 of accumulated fund | c. | 1/2 of accumulated
fund | b. | 114 of accumulated fund | d. | Full withdrawal is allowed |
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24.
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If a person chooses Cumulative deposit than Recurring deposit ,difference will
be in
a. | frequency of interest calculation | c. | Interest tax | b. | Tax | d. | Tenure |
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25.
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Rahul switch from direct holding of shares to equity based mutual funds. The
impact on risk would be
a. | Less transparent | c. | Less return | b. | More diversified | d. | Steep rise |
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26.
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What is similarity between recurring deposits and cumulati deposit in a
bank
a. | Guarantee | c. | Tenure | b. | Taxation | d. | Lock in periods |
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27.
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In cumulative bank deposit the interest unit is normally compound on what
basis
a. | Monthly | c. | Half yearly | b. | Quarterly | d. | Annually |
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28.
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What frequencies can one take in annuity
a. | monthly,quarterly,half yearly, yearly | c. | fortnightly, monthly ,half yearly,
yearly | b. | fortnightly,quarterly,monthly,yearly | d. | None of the above
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29.
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What are the Special features of Health plan?
a. | Covers disease expenses | c. | covers hospitalization
cost | b. | Helps in Tax Benefits | d. | All of the above |
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30.
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How riders will help the customer in life insurance
a. | Allow policy holders to customise their insuranceCoVerW addl. benefit | c. | Operative
clause | b. | Rider is like aclause | d. | Rider is like preamble |
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31.
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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. | Young married couple | c. | Pre-retirement. | b. | Young married with children.
| d. | Retirement |
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32.
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With profit policies can be given to
a. | surety | c. | partner | b. | keyman | d. | Individual |
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33.
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Acouple has 7 year old son. What solution would they be looking for
a. | Retirement | c. | Child education | b. | Health care | d. | Life cover |
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34.
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Mrs. Sheela received some amount out of her husband's d In such a situation
what will be her prime focus
a. | Saving | c. | Investment management | b. | Insurance | d. | Planning for pensi |
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35.
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Under S 80C the maximum tax deduction that can be gainpremium paid Rs._in a
financial year
a. | Rs. 75,000 | c. | Rs. 1,20,000 | b. | Rs. 1, 10,000 | d. | Rs. 1,00,000 |
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36.
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Perceived needs are
a. | Short term needs | c. | Imagined to be important by client | b. | Imagined to be
important by advisor | d. | Long
term needs |
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37.
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Fact find process helps to
a. | Ensure a salesIs achieved | c. | Create an audit trail for future
complaints | b. | Identify client need | d. | Provide regulatory body about agents database |
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38.
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Which type of questioning is very useful to gather information from
clients?
a. | Close ended question | c. | Interrogative question | b. | Open ended
question | d. | Clarification
question |
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39.
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Higher persistency to the insurer ensures what ?
a. | More productivity | c. | Higher Profits | b. | Higher attrition | d. | Higher S.A |
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40.
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An agent reveals his commission received from insurance sale$ to X and Y. Both
plans are of same duration. Why is commission ofXa higherthan that ofY
a. | 'X' has bought other limited premium product | c. | ‘X’ is
married | b. | 'Y' has bought a single premium product | d. | 'Y' is
single |
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41.
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Amit & Rashmi are newly married. Both are working couple,Thl want to invet
their savings 1,00,000 annually to build corpu$ I make down payment for their house in 5 years from
noW,A adviser sold them a Uhp to meet their requirement this may resUlt I
a. | Ruining the long term reputation of company | c. | Bad reputation of individual
adviser | b. | Opportunity of new business for adviser | d. | Financial burden on the
couple |
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42.
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Without submitting any form of claim, a life insurance policy holder received
payments of maturity then what type of policy he is holding
a. | ULIP | c. | Money Back | b. | Term | d. | Health |
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43.
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What is the maximum time in which the insurer should settle a claim when all
documents are submitted
a. | 3 days | c. | 30 days | b. | 15 days | d. | 10 days |
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44.
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The delay in settling claim by any insurance company as Pø: IRDA norms has
to pay _% if the bank rate was 5.2% durin9 the claim pd.
a. | 0.07 | c. | 0.072 | b. | 0.09 | d. | 0.08 |
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45.
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An indemnity bond was signed in a policy whön the claim was paid. This
indicates that the policy was
a. | lt wasl ost | c. | It was lapsed | b. | It was paid up | d. | It was surrendered
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46.
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Mr. Bhaskar,had:taken atermi plan 2008 for Rs. 7 lac.. He has
anADBrider'worthRS.;4 lac. UnfortunatelyBhaskar died u car accident How much will,he tle.death
claim?
a. | Total 7 lac will be paid as death claim | c. | Total 11 lac will be
paid | b. | Total 4 lac will be paiasdeathcIaim due tocar accident. | d. | Total 7 lac will be paid without any
deduction |
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47.
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In a MWP policy the beneficiaries under the plan, other than wife can be
a. | Ex wife | c. | Parents | b. | Sibling | d. | Children |
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48.
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Board of Insurance is related to
a. | SEBI | c. | Insurance Association | b. | IRDA | d. | None of the
above |
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49.
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A policy has been rejected by the company under direct intimation to the
customer and copy to the Agent, what is the next action of the Agent
a. | he has to inform the customer that the co has broken relationship with the
customer | c. | He has to explain the reasons for rejection to the customer | b. | he plans to change
the plan | d. | He takes up with
the higher authorities |
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50.
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Sh. 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 Sh.
Gayaram. This is called
a. | Switching | c. | Redirecting | b. | Churning | d. | Shifting |
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