Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Insurance is necessary because
a. | Assets deprciate over time and through usage | c. | Name of the above
reasons | b. | Assets may be damagedby external causes | d. | None of the above
reasons |
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2.
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Insurance works on the principle of
a. | Mutual help | c. | Both of the above | b. | charity | d. | Neirther of the
above |
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3.
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An insurer as a trustee, to give priority to
a. | Policyholders, as a class | c. | The claimant's financial
condition | b. | An individual policyholder's difficulties | d. | All of the
above |
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4.
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The probability of an event is mentioned
a. | As a ratio | c. | Neither as a percentage nor as a ratio | b. | As a
percentage | d. | Either is a
percentage or as a ratio |
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5.
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Purpose of taking life insurance would be
a. | To save tax | c. | Investment | b. | Saving habit | d. | Protection |
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6.
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Aprofessional insurance marketcarnies
a. | Need based selling | c. | Commission based selling | b. | Product based
selling | d. | Company based
selling |
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7.
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Moral hazard is
a. | History of heart disease | c. | Consuming
alcohol | b. | Working in chemical factory. | d. | Teacher in primary
school |
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8.
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Principle of Indemnity applicable to
a. | Life Insurance | c. | Both a & b | b. | General Insurance | d. | Neither a nor b |
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9.
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A & B in enters into a Contract & B accepts the Contract with a
condition. Will this be considered as a Contract Between A & B?
a. | Contract is created only when the acceptance isunconditional. | c. | Both are
Correct | b. | Contract is created only when the acceptance isconditional. | d. | Both are
Incorrect |
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10.
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When will the Principle of Utmost Good faith apply in Term insurance
plan?
a. | Throughout the policy contract | c. | before receiving policy
document | b. | before premium deposit | d. | After receiving the policy document |
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11.
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Earning Pooling of risk in insurance means
a. | Premium collected & deposited in a pool | c. | Premium is pool to make claim
| b. | All similar risks are pooled together | d. | Contribution of insurance
company |
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12.
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Utmost good faith will operate in existing policy
a. | Every time premium is paid | c. | If insured person falls sick and
admitted to hospital | b. | If policy has lapsed and it has to be
revived | d. | If the insured
person changes his job |
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13.
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Insurer appoints a candidate of this professional qualification ,who decides the
amount of premium in insurance products
a. | Actuary | c. | Sales Officer | b. | Underwriters | d. | Advisor |
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14.
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Proposal decision to be communicated to the client with in
a. | 7 days | c. | 15 days | b. | 10 days | d. | 30 days |
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15.
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Where annually increasing flexible premium operate ur insurable what rate of
increase will generally apply?
a. | 0.025 | c. | 0.05 | b. | 0.03 | d. | 0.075 |
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16.
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Claim was settled however full sum assured not paid th policy was in force due
to
a. | Lien | c. | Surrender | b. | Bonus | d. | Accidental
death |
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17.
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Mr. Sumesh takes a policy and pays premium Rs. 20,000with• sum insured of
Rs. 3 lac what will be the tax implication on hi: maturity amount
a. | Fully taxable | c. | 0.2 | b. | 0.1 | d. | tax fully
exempted |
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18.
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Suresh has adequate reserve capital with him and he wishes to protect his
income, moreover he feels that if he does not die than he would need the amount what type of plan
should he opt for
a. | Term insurance plan | c. | Return of premium plan | b. | Endowment
plan | d. | Pension
plan |
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19.
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Flexibility like partial withdrawals and taking premium holidays is possible
with
a. | Fixed deposit | c. | Term Insurance | b. | ULIP | d. | Endowment |
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20.
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Manmohan has recently purchased a house worth Rs. 50 lac on loan. Which
insurance plan you an advisor will suggest?
a. | Endowment plan | c. | Whole life plan | b. | Money back plan | d. | Term plan |
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21.
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VMr. Kumar decides that his employees should have sss. whit type of plan is
SSS
a. | Salary saving life plan | c. | Salary insurance
plan | b. | Not a specific plan | d. | VSalary specific plan |
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22.
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Under which section of the Income Tax Act can an individual get a deduction from
taxable income for the
a. | S. 80D | c. | S 80E | b. | S. 80C | d. | S. 80F |
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23.
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A person planning to invest in Kisan Vikas Patra will go to
a. | Insurance Branch | c. | Internet | b. | Post Office | d. | Mutual Fund Office
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24.
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A customer while investing in to Recurring deposit or Cumulative deposit what
are the key factors which will matter
a. | Taxation | c. | interest rates | b. | frequency of payment | d. | tenure |
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25.
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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. | Increase gradually | c. | Remain constant | b. | Decrease grdually | d. | Chang as per market
fluctuation |
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26.
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Vinod being an insurance agent can offer assistance to his cli Ramesh by
a. | Providing him emergency fund | c. | Recommendation of product with
highestreturn | b. | Matching the product with Ramesh need | d. | Discourse saving in. a purposeful and need
based manner |
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27.
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If customer has invested money in a pension plan from compafl A and buys an
annuity from company B what is the nature transaction?
a. | Lifelong annuity | c. | Reinsuring annuity | b. | Open market | d. | Deferred
annuity |
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28.
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To identify suitable products their main features and their tax treatment is
role of
a. | Agent | c. | Pelicyholder | b. | Insured | d. | Insured person |
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29.
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With profit policies can be given to
a. | surety | c. | partner | b. | keyman | d. | Individual |
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30.
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The sole focus during a clients fact-find session was health care 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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31.
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In which of the recognised life stages an indivlducl does not required any
protection cover
a. | Childhood | c. | Pre retirement | b. | Young married | d. | Retirement |
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32.
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A Person Need to do Estate Planning when
a. | Young Person | c. | Married | b. | 30-40 years age group | d. | About to get
retired |
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33.
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Which plan should an agent suggest
a. | A Plan based on needs to the Client | c. | A Plan based on the clients
dreams | b. | A plan based on paying capacity of the client | d. | None of the
Above |
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34.
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The rates of assumed annual growth to be shared in the benefit illustration has
been decided by which of the authority
a. | IRDA | c. | The Royal Bank | b. | Life insurance council | d. | SEBI |
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35.
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The best way to prove that customer of a ULIP policy is given awareness about
the commission paid to the agent is
a. | Ask the insurer to give a policy endorsement letter | c. | From signed copy of benefit
illustration | b. | From the fact details | d. | From ticked columns of proposal form |
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36.
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For an insurance agent, a low persistency ratio means
a. | Loss of renewal commission | c. | Higher
reputation | b. | High client satisfaction | d. | More earning of first year commission |
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37.
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If a person is missing then after how many years will he be considered as dead
& SA paid to the nominee.
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38.
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Client died in 89th day from DOC. In which category he is not eligible for claim
a. | Murder | c. | Accident | b. | Deep Illness | d. | Suicide |
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39.
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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. | 0.07 | c. | 0.072 | b. | 0.085 | d. | 0.082 |
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40.
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During claim insurer deduct Rs. 10,000 in spite of having no Lien and all
due premiums are paid. What are the other reason for deducting the same?
a. | Premium Rate increase | c. | Mode of Payment | b. | Loan facility | d. | Loading |
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41.
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Vikas takes insurance policy and dies after B months. If claim needs to be
rejected basis of the rejection would be
a. | Suicide | c. | Death due to accident | b. | Murder | d. | Body
notfound |
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42.
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lnsurer will not pythe.ç.aim unless
a. | Policyholder makes a demand. | c. | `Event insured against happens
| b. | Policyholder makes a demand | d. | lriSurer. comptes'theenqui |
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43.
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The agents duties and responsibility ends
a. | When the clients policy is issued | c. | When the nominee has
changed | b. | When the clients needs have been established | d. | When the maturity
claimissettled |
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44.
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Which is the training institute for providing training to insurance
agents?
a. | Insurance Institute of India | c. | RBI | b. | IRDA | d. | SEBI |
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45.
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Regulation issued by IRDA required that the decision on the proposal must be
conveyed to the proposer within
a. | 15 days | c. | 1 month | b. | 20 days | d. | no time bar |
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46.
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Complaint council bodies other than IRDA grievance readdress forum &
COPA
a. | Ombudsman | c. | Insurance Association | b. | Insurance Institute
of India | d. | FERA |
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47.
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What is the period of award passed to the customer decided by ombudsman?
a. | 2months | c. | 5 months | b. | 3 months | d. | 6 months |
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48.
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Mrs. Hansa, an agent has planned to sell maximum product within a short span of
time by giving maximum rebates tocustomer to complete the context target of the company. Her
action
a. | Will benefit both the company and the customer | c. | Agent will be
terminated | b. | Reputation of the company will be high due to offers to the
customer | d. | Agent will be
qualified for the contest |
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49.
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According to Insurance broker association of India, what is the most appropriate
relationship between insurer and broker
a. | Insurance broker represents the client and insurer, remunerate the
broker | c. | Insurer represent both client and broker remuneration | b. | The client
represents broker and insurer remunerate broker | d. | Broker only .service the client
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50.
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A policy has been rejected by the company under direct intimation to the
customer and copy to agent what is the next action of agent
a. | He has to inform the customer that company has broken relationship | 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
auth. |
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