Revised IC 33 Questions Chapter Weightage No.

Given in Exam Ch 01 Ch 02 Ch 03 Ch 04 Ch 05 Ch 06 Ch 07 Ch 08 Ch 09 Ch 10 Ch 11 Ch 12 Ch 13 Ch 14 Ch 15 Total 6% 6% 18% 8% 4% 10% 8% 6% 4% 8% 8% 2% 4% 4% 4% 100% Questions/chapter Expected 3 3 9 4 2 5 4 3 2 4 4 1 2 2 2 50 Questions Available in Qbank 22 29 63 49 42 31 57 29 19 16 32 17 23 26 19 474

S.No

Revised syllabus Chapter No. Ch 1 Ch 1 ch 1 ch 1 Ch 1 ch 1 Ch 1 Ch 1 Ch 1 ch 1 ch 1

Questions If a client wants to compare between all financial products then the best person he can approach is In life insurance business if a person is working in calculating premium rates of insurance products, then he is mostly likely a member of In term insurance if Critical illness rider claim happens then what will happen to existing policy If insured gets the two advance payment in the 5yrs and in the maturity he gets rest of sum assured. What type of policy it is The concept of indemnity is based on the key principle that policyholders should be prevented from For assessing the risk of a group health insurance policy, which of the following information is the most critical 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? How many days does the Free Look Period last? The Ombudsmans powers are restricted to insurance contracts of what value? Insurance Market divided into What is Bancassurance? A contract comes into existence when An insurance agent is intermediary between. Which of the following do not include the channel of indirect marketing? The business of Insurance is connected with................ Human beings need life insurance because.................. Life insurance the risk is determined on the basis of .......... Life insurance company determine the level of risk based on In Insurance terms, pooling of risk is Insurance business is classified into three main types: Amit is looking for term insurance plan for protection of his family, he is advised to approach to: Insured can contact to seek the resolution of grievances they have against insurer to IRDA through:

Ans Option 1

Ans Option 2

Ans Option 3

Ans Option 4

Correct option 4 1 1 1 4 3 2 1 4 2 2 1 1 3 2 3 2 2 4 3 2 4

1 2 3 4 5 6 7 8 9 10 11

1. Individual agent

2. Corporate agent

3. Bank

4. Broker 4. Insurance institute of risk management 4. No change in policy. 4. Endowment policy 4. Profiting from insurance. 4. Medical history of group 4. 5000 4. 60 Days 4. 20 Lakhs

1. institutes of actuaries 2. insurance institute of 3. Charted institute of of India India insurance 2. CI benefit reduced 1. CI benefit will cease from existing sum 3. CI benefit continues assured 1. Money back policy 1. Insuring existing losses. 1. Group lifestyle 1. 60000 1. 15 days 1. 1Lakh 1. Endowment and Money Back Insurance 1. Giving insurance policies to Banks. 1. One party makes an offer which the other party accepts unconditionally. 1. Client and Insurance Company 1. individual agents 1. physical values of assets 2. Convertible plan 2. Making false insurance claims. 2. Employees 2. 75000 2. 30 Days 2. 10 Lakhs 3. Term plan 3. Paying excessively for insurance cover. 3. Age of the group 3. 100000 3. 45 days 3. 15Lakhs

2. Life and General (non-3. Government and 4. Health and Saving life) Insurance Private Insurance Markets Insurance Markets 2. Selling insurance policies through Banks. 2. One party makes an offer which the other party put extra conditions. 2. Insurance Company and IRDA 2. bancassurance 2. economic values of assets 3. Giving guarantee to policies by Banks. 3. One party makes an offer where other party gives counter offer. 3. Client and IRDA 4. None of the above. 4. One party makes an offer which the other party receives the offer. 4. Insurance and Reinsurance company. 4. through internet 4. market values of assets 4. Death is the solution. 4. mathematical data 4. Targeted bonus rates. 4. Using the same pool for paying claims of life insurance. 4.Life, Health, Micro Insurance 4. Liabilty Insurance [email protected]

12

ch 1

13 14 15 16 17 18 19 20 21 22

Ch 1 Ch 1 Ch 1 Ch 1 Ch 1 ch 1 ch 1 Ch 1 Ch 1 Ch 1

3. insurance brokers 3. metaphysical values of assets 3. the timing of death is 1. death is certain 2. death is uncertain uncertain 1. future data 2. past data 3. statistical data 1. Future expenses. 2. Claim experiences. 3. Present expenses. 1. Using the same pool 2. Using different pool 3. Using the same pool for for paying claims of car for paying claims of life paying claims of life & & life insurance. insurance. house insurance. 1. Life, Non life, Micro 2. Life, Non Life, 3. Life, Non life, ReInsurance. Miscellaneous insurance. 1. Property Insurance [email protected] n 1. Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying. 1. Regulation 1. Physical hazard 1. Pooling of risk 2. Life Insurance 2.insurancecomplaints @irda.gov.in 2. Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk. 2. Redressal 3. Health Insurance [email protected]

23

Ch 2

How are perils and hazards normally distinguished under term insurance policies?

4. Perils are factors which 3. Perils are factors which could influence an insured affect the risk being event occurring and insured and hazards are hazards are the actual the size of the risk being events which will trigger a insured. payout 3. Research 4. Repository 4. Peril 4. Randomness 4. As per company policy 4. Smoking is a moral hazard whereas lung cancer is a peril.

24 25 26

Ch 2 Ch 2 Ch 2

The Institute of insurance and risk management along with insurance education does what more Mr. Kunal used to participate in Car race. While taking up the Insurance policy he disclosed this information. What kind of hazard does it refers to Law of large numbers is worked out by which of the following?

3 1 1 1

2. Fraudulent 3. Moral hazard representation 2. Maintaining insurable 3. With utmost good faith interest 2. Under conditions of the reinsurer 2. Smoking is a hazard and lung cancer is a peril 3. As directed by actuary 3. Lung cancer is a peril and smoking is a moral hazard

27

Ch 2

With pooling of risks an insurance company pools the premium collected from several 1. Under no individuals to insure them against similar risks. At what circumstances will the circumstances insurance companies pool the risk of a life insurance and health insurance together? According to insurance terminology which of the following is correct? 1. Lung cancer is a hazard whereas smoking is a peril

28

Ch 2

29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2 Ch 2

What is the main objective of taking the life insurance policy? 1. Tax benefit Suresh is suffering from Asthma and the policy is been done on joint life basis and the 1. Joint life policy need for nomination under the plan will be as What is the maximum sum assured under a micro insurance 1. 10000 Available Loan amount under a life Insurance policy is generally based on 1. Total paid premium 1. At the time of taking In case of life insurance, the insurable interest should exist the policy 1. Life and non life Health insurance rider and critical illness rider in classified under respectively 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 1. 213333 & 273333 the paid up value if bonus accumulated and if not bonus accumulated? Under the IRDA guidelines for Claim settlement, any queries or additional documents 1. 5 days from the can asked from the claimant within receipt Mr. Shyam is having 9 year old child. Which product is not to be given priority? 1. Health plan Vijay received his policy bond on 11th June, 201 Due to some personal problems he has decided to cancel the policy on 8th July, 201 Can he cancel or return the policy?

2. Savings 2. Not Possible 2. 25000 2. Sum Assured 2. At the time of claim 2. Both life insurance 2. 213333 & 229333 2. 10 days from the receipt 2. Child Plan

3. Investment 3.50:50 3. 50000 3. Surrender value 3. At the time policy matures 3. Both non life insurance 3. 229333 & 273333 3. 15 days from the receipt 3. Life Insurance 3. No, as 20 days period is over 3. 3. 3. 3. 2 Months Uncertainty Risk Assessment Risk retention.

4. Protection 4.Not Applicable 4. 100000 4. Paid up value 4. At the time of taking the policy & claim 4. Nonlife and life respectively. 4. 229333 & 293333 4. 20 days from the receipt 4. Retirement Plan 4. Yes, as it is within 3 months 4. 4. 4. 4. 3 Months All of the above. Pooling of Risk All of the above.

4 1 3 3 1 2 1 3 4 1 2 4 4 1 2 3 2

1. No, as 15 days period 2. Yes, as it is within 1 is over year 2. 2. 2. 2. 30 Days Level Risk Grading Risk avoid

Ombudsman has to give his decision within how many days? 1. 15 Days The Risk contains. 1. Peril and Hazard Grouping the similar risks by Insurance Company is called as. 1. Grouping of Risk The function of Insurance works on.. 1. Risk Transfer Mr. Mahesh is a software engineer. He has taken a term insurance for Rs. 30,000,00/1. Risk retention for 30 years. This is an example for----------------1. a family history of Which of the following can be an example of moral hazard? heart disease Which one of the following is possible in retaining the risk?
th On 6 August there was a typhoon. Mr.Augustin who had insurance died in typhoon. Now how will the insurance company will categories this particular risk ?

2. Risk transfer

3. Risk avoidance

4. Risk tolerance 4. A teacher working in a primary school. 4.Is possible by Reinsuring oneself 4. Under the category of Risk Transfer 4. Fundamental. 4. Sharing of Risk 4. Insurable Risk 4. Uncertinity 4. 293333 4. Gross premiums increases 4. Premium cheque with arrears 4. Valid

1. Retaining the ownership in the policy

2. a person working in a 3. a person consuming chemical factory alcohol 3.Is possible by 2. Not possible as life transferring risk to the has many risks. policy holder 3. Under the category of particular risk 3. Financial. 3. Insuraable Risk 3. Financial Risk. 3. Physical hazards 3. 273333 3. It remains constant

47 48 49 50 51 52 53 54 55 56 57

Ch 2 ch 2 Ch 2 Ch 2 Ch 2 ch 3 Ch 3 Ch 3 Ch 3 Ch 3 ch 3

1. Under the category of 2. Under the category Pure risk of peril risk 1. Speculative. 1. Pure Risk 1. Pure Risk. 1. Peril 1. 213333 1. It rises 1. Reinstatement Fee and Proof of continuing good health 1. expired 2. Particular. 2. Pooling of Risk 2. Particular Risk. 2. Hazard 2. 229333 2. It falls

1 3 2 1 2 3 3 1 4 3 2 2

Ram works in a Fire cracker factory. He stocks the cracker in his house. He runs which type of risk. 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 ... 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 the sum assured remains the same, what will be impact of net premium if the age of the policyholder increases 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? In a life insurance policy it is later found that the person doesnt have insurable interest then the contract is Net premium is equal to Pooling of risk in insurance means Principle of utmost good faith will operate in existing policy

2. Premium cheque and 3. Only health certificate health declaration 2. reviewed 3. Void

58

ch 3

1. Premium plus 2. Risk premium plus interest earning interest earning 1. The premium 2. All similar risks are collected & deposited in pooled together a pool 2. If the policy has 1. Every time premium lapsed and it has to be is paid revived.

3. Premium minus interest 4. Risk premium minus earning interest earning 3. Premium is pool to make claims 3. If the insured person falls sick and is admitted to hospital. 4. Contribution of insurance company 4. If the insured person changes his job.

59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77

ch 3 Ch 3 Ch 3 ch 3 Ch 3 Ch 3 Ch 3 ch 3 Ch 3 Ch 3 Ch 3 Ch 3 Ch 3 ch 3 Ch 3 Ch 3 Ch 3 Ch 3 Ch 3

Both the parties to a contract must agree and understand the same thing and in the same sense which is called Life insurance is the most important for which age group The premium for accidental death benefit rider must not exceed If the annual premium for a plan is 32000 and a frequency loading of 4% is added in a quarterly premium what is the amount that needs to be paid. 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? If bonus is given under a plan the additional premium added is known as In case of a term plan the maximum premium of the accidental rider can be. The reduction in the benefit illustration shows what. If a life insurance policy is issued with a lien, it will be mention in If we hold 100 units in gold ETF, It means that how much grams we have in physical

1. Consideration. 1. Young 1. 15% of base policy premium 1. 8000 1. Discounted Value 1. Loading 1. 100% of basic premium. 1. Charges. 1. Proviso 1. 5 or 10 grams

2. Legality of an object. 3. Consensus ad idem. 2. Pre- retirement 2. 25% of base policy premium 2. 8320 2. Principle amount 2. Investment 2. 50% of basic premium. 2. Mortality. 2. Schedule 2. 10 or 15 grams 2. Annuity part 2. Keyman Insurance 2. Charges 2. 20 days from the date of receipt of the policy document 2. Fluctuating income 2. District Level 2. Top Level 2. 9320 2. Concealment of a material fact 3. Retirement 3. 30% of base policy premium 3. 9456 3. Discounted Value with persistency bonus 3. Frequency 3. Interest. 3. Terms & conditions 3. 15 or 25 grams 3. Guaranteed and non guaranteed part 3. Partnership Insurance 3. Non guaranteed benefits 3. 25 days from the date of receipt of the policy document 3. High Returns 3. State Level 3. Low Level 3. 8320 3. Fraudulent misrepresentation of facts. 3. Insurance can not taken by politicians. 3. Facts those are not material. 3. Sum Assured 3. Life Assignment and General Assignment. 3. Rs. 250000/-

4. Acceptance. 4. children 4. 40% of base policy premium 4. 9240 4. Principle with persistency bonus 4. Interest 4. Inflation. 4. Endorsement 4. 50 or 100 grams 4. Vesting age 4. Debtor Insurance 4. Reversionary Bonus 4. 30 days from the date of receipt of the policy document 4. Protection 4. Mandal Level 4. High Level 4. 6600 4. All of the above. 4. All of the above. 4. All of the above. 4. All of the above. 4. Standard Assignment and Non-Standard Assignment. 4. Rs. 5000/4. surrender 4. claim 4. brother-sister 4. neither insures nor proposer

3 2 3 2 1 1 3 1 2 4 3 2 2 1 4 2 4 3 4 1 4 4 2 2 3 3 4 3

3. 30% of basic premium. 4. 35% of basic premium.

In a pension plan illustration what are the parts which shows the benefit for an 1. Insurance coverage annuitant. If the employer has insurable interest in the life of an employee, what kind of policy is 1. Surety insurance this? In the sales illustration, the reduction of the actual benefit amount is mainly due to 1. Commission deduction of 1. 15 days from the The proposer can withdraw from the contract, if they disagree with the terms and date of receipt of the conditions of the Policy, within a free look-in period of policy document What is the major reason for self employed to take insurance. 1. Save Tax 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 1. National Commission he approach? Rajesh is 34 years old and having 2 sons, Vineeth and Sumith. The level of risk 1. Middle Level appetite, Rajesh belongs is _______. Total annual premium Rs 32000 quarterly loading done 4 %. Hence actual quarterly 1. 7680 premium will be Under this situation may leads to breach of the duty of utmost good faith. Principle of Indemnity denotes.. The principle of utmost good faith is not applicable to What are the factors involved in calculating Surrender Value of the Policy? What are the different types of Assignments? 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? In an insurance contract the insurable interest needs to be at the time of .... In an insurance contract 'consideraton' means........ Where do you not find insurable interest in the following options......... The principle of utmost good faith applies to........... 1. Non disclosure of material facts.

78 79 80 81

Ch 3 Ch 3 Ch 3 Ch 3

2. Insurance should not 1. Insurance can not be taken by high risk used to make a profit people. 1. Facts of common 2. Facts of law knowledge 1. Number of years 2. Number of premiums premium paid. payable. 1. Full Assignment and Partial Assignment 1. Rs. 2500/1. claim 1. proposal form 1. surety-co surety 1. only insurers 2. Conditional and Absolute Assignment. 2. Rs. 25000/-

82 83 84 85 86

Ch 3 Ch 3 ch 3 ch 3 ch 3

2. revival 3. inception 2. Advisors confidential 3. premium report 2. employee-employer 3. husband-wife 3. both insurers and 2. only proposer proposer

87

Ch 3

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? Which of the following statement is not true in connection with nomination?

1. The policy will be 2. Mr. Shanth cannot renewed on the existing renew the policy terms and conditions. 1. The life insured can nominate one or more than one person as nominees. 1. Assignee cannot make fresh nomination in the policy 1. Mr. Shanth will not be granted any loan 1. Consideration in the contract 2. Nomination can be done either at the time the policy is bought or later. 2. The assignor need not be major at the time of assignment. 2. Mr. Shanth can take loan which should be certain percentage of the surrender value of the policy. 2. Capacity to contract

3. the policy may be renewed on different terms and conditions 3. A person having a policy on the life of another should make a nomination. 3. Section 45 of the insurance act speaks about assignment. 3. There is no concept of loan in insurance policy

4. Mr. Shanth can renew the policy only on the approval of the insurer 4. The section 39 of the Insurance Act 1938 speaks about the nomination. 4. Conditional assignment and absolute assignment are one and the same. 4. loans are allowed only in term plans 4. Offer and Acceptance in the contract

88

Ch 3

89

Ch 3

Which of the following statements in correct in connection with assignment?

90

Ch 3

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? 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?

91

ch 3

3. Consensus ad idem

92

ch 3

93

ch 3

94

Ch 3

95

Ch 3

96

Ch 3

97

ch 3

98

ch 3

99

ch 3

100 ch 3 101 ch 3 102 ch 3

2. The insurable Mr.Karan who has to go to abroad for 6 months on an official work decides to leave 1. The insurable interest interest between the car his car with his friend Mr. Jim. What will be the validity of the insurable interest in this between the car and jim and karan is valid for 6 case ? is valid for 6 months months Mr. Josh was filling the proposal form but as his mother was sitting beside him, even 1. He has breached the 2. He has breached the though he drinks and smokes he ticked NO in smoking & drinking column of proposal non-disclosure of the company by concealing form. This indicates ? fact the facts Mrs.Shwetha has taken a loan from her policy. Later stage she neither paid back 1. Policy will be 2. Policy will be neither the loan nor she paid the premium for a very long time. What will happen to surrendered by the surrendered by the her policy? insurer nominee 1. He regularly pays 2. He can surrender Mr. Manish has a money back policy and a whole life policy. He is planning to take premium so he can take whole life policy and some loan from both the policies as he was regularly paying the premium. What is loan from both the can take loan from your suggestion? policies Money back policy Mr. Raj has taken a policy of 15 year term. He has paid the premium for 9 years. But 1. Converting the policy 2. Converting the policy now unfortunately he has lost his job. He is unable to pay the premium. What can be to Term policy to Paid up the best solution from the following ? 2. A policy document 1. A proposal has been A contract exists between insurer and proposer when has been stamped by accepted by insurer. insurer. 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 1. Indemnity contract. 2. Value contract. with his company for group policy claim, which was rejected. The reason for rejection is. 1. Heading of policy Payment of premium and sum assured are laid down in 2. Proviso of policy. document. 1. Quotation is signed 2. First Premium An insurance contract commences when by proposer. Receipt is issued. 1. When insured writes 2. When cheque amount When is premium considered / deemed to be paid? a cheque in favor of is deposited in insurer insurer. account. Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 annual 1. Acquires surrender 2. Contract comes to an premiums but due to financial crisis is unable to make future premium. His policy value. end. How assignment distinguishes itself from nomination? 1. Nomination does not transfer the title while assignment does. 1. When a client have been sold the right solution. 1. The circumstances are legitimate. 1. Loan assignment 1. Endowment Plan 1. Nominee 1. An Age Proof 1. Value Contract.

3. The insurable interest 4. The insurable interest between the car and karan between the car and Jim is is valid until he owns it valid until Karans return 3. He has breached the company by fraudulent information 3. Policy will be surrendered by the company 4. He had done an innocent misrepresentation 4. Policy will be surrendered by the heir

2 1

4. He cant take loan from 3. He cant take loan from whole life policy but can money back but can avail avail loan from Money back loan from Whole life policy policy 3. Converting the policy to 4. Converting the policy to money back whole Life 3. A policy document has been received by the policyholder. 4. An insurer has made another proposal.

3. Deemed contract.

4. Rolling contract.

3. Operative clause.

103 ch 3

104 ch 3

Under what circumstances the surrender of a policy should be recommended by the agent? What key event is most likely to make an insurance contract not a valid contract? 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 agreement Of when Loan is fully paid, policy title will be revert back to name of Manish is called: Rakesh has bought an Endowment, Money back, Term & Annuity Plan he would like to avail Loan from: On foreclosure, if Death claim arises before the payment of the surrender value, the payment would be payable to: To prove ones identity in accordance with KYC process, the customer needs to submit following document excluding .? Life Insurance also known as:

105 ch 3

3. Proposal Form is signed. 3. When the cheque is deposited with insurer office. 3. Moneys will be forfeited. 3. Nomination is made 2. Nomination transfers after policy is issued while the title while assignment is done before assignment does not. it is issued. 2. When a client is 3. When the policy has holding a product been mis-sold and do not having good value for match his needs. money. 2. Representation of 3. The life assured is facts by the major. policyholders is true. 2. Conditional Assignment 2. Term Plan 2. Legal heir of life Assured 2. An Identity Proof 2. Indemnity 3. Loan Agreement 3. Money Back Plan 3. Debotrs 3. An Address Proof 3. Commercial Contract

4. Schedule of policy document. 4. Policy Document is received by policyholder. 4. When cheque is posted/couriered by the insure4. 4. Acquires paid up value. 4. Nomination need not be informed but assignment needs to be informe4. 4. When the client is enjoying good financial status. 4. There is no insurable interest attached to the policy. 4. Absoulte Assignment 4. Annuity Plan 4. forfeited the Premium 4. Education Proof 4. Speculative

3 2 2 4 1

4 2 1 2 4 1

106 Ch 3 107 Ch 3 108 Ch 3 109 Ch 3 110 Ch 3

111 Ch 3

Which clause lays down the mutual obligation of the parties regarding, Payment of Premium by Life assured & payment of Sum Assured by

1. Lien Clause

2. Opertaive Clause

3. Proviso Clause

4. Schedule of Policy

112 Ch 3

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 spouse .after 5 year. He died in road accident, now claim money would be payable to: Parvesh bought a policy an endowment plan but after one year insurer. Found he had Aorta Surgery .now which will apply by insurer:

1. Nominee only

2. Legal heir of the life assured

3. Appointee Only

4. will be Payable to Saanvi (Nominee) at the age of 18th 4.Utmost good faith apply 4. Proof of Income tax payer 4. Compounding. 4. Vishal is working in a MNC 4. Pure Risk 4. Physical hazard 4. 1.50 lacs

113 Ch 3 114 Ch 3 115 Ch 4

1. Indisputability Clause 2.Principal of Indemnity 3.Lien Clause (Section 45) apply apply 2. Standard Age proof 2. Interest. 3. an Address proof 3. Discount rate 3. Sandeep is earning more then Vishal 3. SA is too high 3. non insurable hazard 3. 2 lacs

1 2 3 2 3 4 2 4 2 2 3 3 2 2 1 4 2 3 4 2 1 2 1 2 2 1 2 1 1 2 1 2 2 4

Jyoti is submitting is copy of permanents account number card as age proof for buying 1. Non Standard Age an money back plan .her age consider as a Proof While calculating HLV along with future income, no of years of work, increments in 1. Inflation. salary what is also to be taken in to account?

116 Ch 4

Vishal and sandeep applied for a health plan in XYZ Life Insurance Company. Vishal is 1. Sandeep has taken 2. Vishal is older than asked to undergo a medical checkup but Sandeep is not asked to do so. What will be another policy from XYZ Sandeep most possible reason? Life Insurance Company For which of the following reasons, the underwriter should ask beyond agents 1. Physical Hazard confidential report. If both parents of proposer died in their thirties due to heart attack what is the kind of 1. Insurable hazard peril or hazard the proposer has? Kamal is willing to pay 60000/- per annum for his ULIP policy. What should be the SA 1. 1 lacs in case he wants to avail the tax benefits? 1. Increase more What key impact will the agent have in low persistency business Within how many days will the underwriter needs to inform the policyholder regarding 1. 10 days the status of the policy. The insurance act of 1938 created which of these. 1. IRDA With reference to the principle of indemnity a life insurance policy is a. 1. Insurance contract. Micro insurance is made specifically for people from. 1. High income. If Insurable interest does not exists at the time of inception of the life insurance policy 1. Voidable then, life insurance contract is If a contract is signed by a 15 years old boy, this contract will be 1. Null and void 2. Moral Hazard 2. moral hazard 2. 3 lacs 2. Increase in the agents earning 2. 15 days 2. Tariff Advisory Committee 2. Indemnity contract. 2. Middle class. 2. Invalid

117 Ch 4 118 Ch 4 119 Ch 4 120 Ch 4 121 Ch 4 122 Ch 4 123 Ch 4 124 Ch 4 125 Ch 4 126 Ch 4 127 Ch 4 128 Ch 4 129 Ch 4 130 Ch 4 131 Ch 4 132 Ch 4 133 Ch 4 134 Ch 4 135 Ch 4

4. Will have impact in his 3. Will improve reputation commission. 3. 30 days 3. National Insurance Academy 3. Value contract. 3. Low income. 3. Valid 3. Voidable 3. Shailesh & Ankit want it that way 3. Some life and non life 3. Higher reputation 3. Ascertain the death ratio 3. 10,000/3. A Loading 3. Quarterly 3. Not at all accepted 3. 1500000 3. Capacity of paying future premiums. 3. Conducting interviews. 3. Occupation and Residence of Proposer. 3. Present value of previous earnings. 3. Chief Underwriter. 4. 45 days 4. LIC 4. Major life contract. 4. Affluent class. 4. Null & voidable 4. Valid 4. Option 1 & 3 are correct 4. By all insurers. 4. More earning of First Year Commission 4. Declare the bonus 4. 100,000/4. Level Premium 4. Monthly 4. Accepted with SSLC book/mark list 4. 4000000. 4. All of the above 4. Telephonic conversations. 4. Medical and Personal History of Proposer. 4. Future value of previous earnings. 4. Information Underwriter. 4. A relative of the illiterate person has to sign on behalf of that illiterate person. 4. 25 days 4. annual report 4. Ethical hazard. 4. the risk associated might be general 4. Tables of details of actuarial calculation on death

2. Invalid 2. Shaileshs income is Shailesh and ankit want to retire in the age of 65yrs. But shailesh pays more monthly 1. Shailesh is older than more than Ankits payment than ankit for same amount of policy. Why? ankit. income 1. Only by few selected As per IRDA regulations IGMS should be mandatory set up by 2. Only by non life insurers 1. Loss of renewal 2. High client For an insurance agent, a low persistency ratio means : commission satisfaction 1. Calculate the 2. Increase the Law of Large number helps the insures to premium profitability What is the limit of tax benefit that can be availed of under Section 80C? 1. 50,000/2. 15,000/In a case, the underwriter felt that the risk associated with the person would decrease 1. A clause 2. A Lien with time, then he would accept the case with In Cumulative Deposits the interest is normally compounded in a 1. Annually 2. Semi Annually 1. Standard and 2. Not standard but Age proof submitted from Village Panchayat is: accepted accept 1. 20 times annual Maximum Life cover 2. 500000 salary Mr. Kumars wife is suffering from blood cancer. Doctors lost their hope on her live. Mr. Kumar would like to take Life Insurance policy on wifes name in order to get monitory benefit. Insurance company rejects this proposal on the grounds of. What is the main source for insurance company to get information of proposer? Moral Hazard reflects the . Income replacement methods equates Human Life Value (HLV) to Agent will be called as.. When an illiterate person wants to have a policy..... As per the IRDA regulations the decisions on the proposal must to convey to the proposer within...... The underwriter can get the required information about the proposer in..... Mr. Ramesh works in a mining company. So he is exposed to.............. Lien is imposed on a policy when underwriter feels that...... What does the mortality tables contains ? 1. Anti Money Laundry 1. Advertisements. 1. Intentions and attitude of Proposer. 1. Future value of Present earnings. 1. Primary Underwriter 1. an impression of the left thumb is taken and third party has to attest it 1. 10 days 1. Proposal form. 1. moral hazard 1. the risk associated might increase 1. Tables of death occurring in various circumstances 2. Legality of object or purpose 2. Proposal form. 2. Habits and Hobbies of Proposer. 2. Present value of future earnings. 2. Main Underwriter

136 Ch 4

137 Ch 4 138 Ch 4 139 Ch 4 140 Ch 4

141 Ch 4

2. an impression of the 3. an impression of the left thumb is taken and left thumb is sufficient and the advisor has to need not be attested attest it 2. 15 days 2. renewal receipt 2. physical hazard 2. the risk associated might decrease 2. Tables of details of various probabilities of death 3. 20 days 3. brochure 3. mental hazard 3. the risk associated might not be harmful 3. Tables of details of underwriters calculation on death

142 Ch 4 143 Ch 4 144 Ch 4 145 Ch 4 146 Ch 4

147 Ch 4

Mr. Guptha is recently detected with lung cancer. He would like to take an insurance. What is your suggestion? Which of the following information does not appear in the First Premium Receipt? 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 brothers son should be the nominee not his wife. Underwriter will verify this case for which one of the following: 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? In which one of the following statement an agents commission will be disclosed to the customer ? 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? 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? When an underwriter may consider Moral Hazard? Level Premium is calculated based on MPL abbreviates To explain the benefits of a product, the insurance adviser should 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 tern year he pays the same Amount in every year is called: Which one of the following is not source of information about the 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 Frequent switching is not advisable in ULIP plan because it increase An insurance agent sold two policies to two different persons having the same policy term. He declares the commission to each of them. The commission of one of the policy is more than the other. What should be the reasons for this difference? If person consumes alcohol- what is the type of hazard? Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply? Nomination can be in favor of how many people? If Naresh wishes to take the tax benefit of the full premium paid which is 60000, what amount of sum assured should he avail in a ULIP plan.

1. Time of death is uncertain, so insurance can be given 1. method and frequency of premium payment 1. A . Physical hazard, as he is old 1. Financial Inspection agencies

2. Only lung is affected 3. He can take insurance so health insurance can after submitting health be given. certificate 2. Date of commencement of last premium 3. Date the policy matures

4. Cannot give insurance for health reason 4. Date the last premium will be paid 4. D. Moral hazard, as he is a head master and 52 years old

148 Ch 4

149 Ch 4

3. C. Moral hazard, as 2. B. Moral hazard, as coverage is high and he is 52 years old and brothers son is the wife is not the nominee nominee 2. Specialized inspection agencies

150 Ch 4 151 Ch 4 152 Ch 4 153 Ch 4

3. Credit worth inspection 4. Insurance Investigation agencies Agencies 4. Actuary who analysis the risk 4. Human Life Value 4. Customer data sheet with the product 4. Non-Disclosure.

4 3 4 2 4 3 3 1 4 2 3 2 3 2 1 4 2 3 4 2 3 3 3 3 1 1 2 2

1. Risk Analysis 2. Classification of Risk 3. Underwriter Department Department 1. The occupation of the 2. The financial history 3. The income that he person of his family earns 1. Customer Statement of the product 1. Innocent misrepresentation. 1. Terms & Condition. 1. An individual is proposing SA 15 times his annual income. 1. Risk Premium. 1. Minimum Possible Loss. 1. Provide the product brochure to the client. 1. Simple Revisionary bonus 1. Gross Premium 1. Proposal Form 1. Physical Hazard 1. Investment Risk 1. Risk profile of both the policyholder are different 1. Moral 1. 2.5% 1. One person 1. 2 lacs 2. Benefit illustration of 3. Benefit illustration of unit linked product endowment product 2. Fraudulent misrepresentation. 2. Preamble. 2. Insurance is taken out by an individual with dependents. 2. Net Premium. 2. Major Possible Loss. 2. Provide Benefit illustration documents to client. 2. Compound Revisionary bonus 2. Level Premium 2. Insurance agent 2. Moral Hazard 2. Risk of death 2. Age of both the candidate are different 2. Physical 2. 3.0% 2. Two persons 2. 3 lacs 2. Nishu has to sign an indemnity bond. 2. Moral peril. 3. Concealment. 3. Endorsement. 3. A nominee is not a dependent. 3. Loading of Premium. 3. Minor Possible Loss. 3. Provide the terms and conditions document to the client. 3. Persistency Bonus 3. Risk Premium 3. neighbor of proposer 3. Medical 3. Uncertainty of return 3. One has chosen Single premium policy and other has chosen regular premium policy 3.Ethical 3. 5.0% 3. Three persons 3. 5 lacs 3. Thumb impression of Ashu has to be taken. 3. Physical hazard.

154 ch 4

155 ch 4

4. Schedule. 4. A medical checkup is carried out nearby place of residence. 4. Gross Premium. 4. Maximum Possible Loss. 4. Provide the website address to the client. 4. Interim bonus 4. Net Premium 4. Medical of examination report 4. No underwriting 4. Chances of lapse 4. Both have chosen different kind of policies. 4.Ethical & Moral both 4. 7.5% 4. It can be any number 4. 6 lacs 4. Ashu needs to be medically examined. 4. Physical peril.

156 ch 4 157 ch 4 158 ch 4 159 ch 4 160 Ch 4 161 Ch 4 162 Ch 4 163 Ch 4 164 Ch 5 165 Ch 5 166 Ch 5 167 Ch 5 168 Ch 5 169 Ch 5 170 Ch 5 171 Ch 5

1. The policy needs to Ashu is an illiterate person and his proposal form was filled by Nishu, then what is the be advertised in the additional requirement to be taken along with the documents. newspaper. In the personal statement, Harish declares that he consumes alcohol twice every 1. Moral hazard. week. This is a What is the key function of NIA Gautam wants to purchase a Kisan Vikas Patra. What is the most suitable place to purchase it During Fact finding, rating is mentioned 3. This Indicates Raunak wants to purchase a cheapest plan which can provide financial security to his dependent. Which plan should be offered Incase of presumption of death Within how many years a complaint can be made through consumer protection act.

172 Ch 5

2. To be an active link 1. Provide suggestion between Global market for Premium calculation & Indian Life Insurance Industry 1. Bank 1. Risk apatite of client 2. Insurance Company 2. His future aspiration 2. Term Plan with 1. Term Plan return of premium 1. Not necessary to pay 2. Necessary to pay premium until court premium until court decree decree 1. One year 2. Two years

3. Design, implement and 4. Regulate the investment operate an insurance of funds by Life Insurance training company 3. Post Office 3. Commitment to need 3. Pure Endowment plan 3. Claim not admissible 3. Three years 4. Share Market 4. Willingness to pay 4. Unit Linked Plan 4. Depends on case to case 4. Five years

173 Ch 5 174 Ch 5 175 Ch 5 176 Ch 5 177 Ch 5

178 Ch 5

Basing on which criteria the qualification of Agent is determined?

1. Address of the agent

2. Domicile status

3. Qualification of Agent

4. DOB of Agent

179 Ch 5

If IRDA is unable to discharge its functions or duties, Central Government

1. Has the power to supersede the IRDA by issuing notification.

2. Has the power to supersede the IRDA by issuing a bill in parliament 2. Endorsements 2. Regular Income

3. Has the power to supersede the IRDA by issuing draft 3. Operative clause 3. Safety 3. Asset Management Companies 3. At the time of every renewal premium payment 3. Money Back plan 3. Lump Sum for fixed period of time 3. Occupation 3. Authorized officials of insurer 3. Rs. 25,000 3. Early

4. Can make changes in IRDA law 4. Terms and Conditions 4. Liquidity 4. Brokers 4. All the above occasion 4. Term Plan 4. Regularly for fixed period of time 4. Not applicable 4. Proposer 4. Rs. 60,000 4. General. 4. Mean Disposition Residence Time 4. Serve notice to insurance company on policy benefits. 4. Bonus Benefit and Tax Benefit. 4. Only Tax Benefit. 4. Good Returns 4. Premium paid for Health Insurance Plan. 4. a money back policy

180 Ch 5 181 Ch 5 182 Ch 5 183 Ch 5 184 Ch 5 185 Ch 5 186 Ch 5 187 Ch 5 188 Ch 5 189 Ch 5 190 Ch 5

If a customer has mentioned he is a drinker in the proposal form, the insurance 1. Provisio company can exclude this hazard and mention it in which part of the policy document? When a person is investing in Debt Mutual Fund, what is the primary objective The client of reinsurer are In the case of life insurance, insurable interest should exist 1. Good Returns

2 4 1 1 3 3 2 3 2 3 1

1. Insurance companies 2. Banks 1. At the inception of the policy 2. At the time of a claim 2. Convertible Plan 2. Lump Sum with no fixed term 2. Moral 2. Policy holder 2. Rs. 50,000 2. Fraudulent

In which of the following plan remaining part of the Sum Assured is paid on maturity? 1. Endowment Plan Payment/Investments in Kishan Vikash Patra under post office schemes is done A person with a criminal background due to Financial fraud would come under which hazard Whose signature is required on attestation of the policy? Payment of premiums by cash cannot exceed ____________ . 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 company will not treat this claim as ________ claim. What does MDRT Stand for? Mr. Kumar is taken one life insurance policy with ABC Company. But he is not satisfied with the policy benefits. What Mr. Kumar can do under this situation? 1. Regularly with no fixed term 1. Physical 1. Agent 1. Rs. 1, 00,000 1. Normal 1. Million Dollar Round Table 1. He can not do any thing, because be received the policy bond. 1. Guaranteed Benefit and Non-guaranteed Benefit. 1. Only Death Benefit. 1. High Returns 1. National Saving Certificates. 1. a unit linked policy 1. when he dies 1. Fixed deposits 1. He can take Surety insurance 1. Convertible Endowment plan 1. Salary saving Life plan 1. Clause. 1. Endowment Plan. 1. Master Policy holder & insurer

191 Ch 5

2. Major Double Rupees 3. Major Dollar Round Tag Tag 3. He can send back the 2. He can file a policy document to complaint against insurance company with in insurance company in 15 days from policy court. receiving date. 2. Interest Benefit and Bonus Benefit. 2. Only Maturity Benefit. 2. Low Returns 2. Equity Linked Saving Schemes. 2. a term life policy 2. when he survives the term 2. Unit linked Insurance plans 3. Death Benefit and Maturity Benefit. 3. Only Bonus Benefit. 3. Moderate Returns 3. Principle component of home loan. 3. an endowment policy

192 Ch 5 193 Ch 5 194 Ch 5 195 Ch 5 196 Ch 5 197 Ch 5 198 Ch 5 199 Ch 5

The two basic elements of most life insurance plans are Term Insurance Plan will give. Low risk products give.. Which of the following product not comes under Section 80 ( C ), income tax act 196 The income of an individual can be protected with the help of......... 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.... Mr. Varun who won a multi chain company would like to take an insurance. What will be the best option for him from the following ? Mr. Vinu got a job recently, he cant 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? Mr. Kumar decides that his employees should have SSS scheme. What type of plan is SSS? What is generally considered as a substitute to charging a high premium for a high risk? Manmohan has recently purchased a house worth ` 50, 00,000 on loan. Which insurance product you as an adviser will suggest? In Group insurance plans contract of insurance between ? Which option is not correct with regard to joint life insurance plan? If RBI increases the interest rates then what will be the effect on share prices. What is purpose of investing money in debt mutual fund? What is the similarity between Recurring Deposits & cumulative deposits in a bank

3 1 2 4 2 2 2 3 2 2 3 4 1 2 2 4 1

3. when he is hospitalized 4. when he loses his job 3. Term Insurance 4. Endowment plans 4. He Can take company insurance 4. Convertible money back plan 4. Salary Specific plan 4. Level Premium. 4. Term Plan. 4. Creditors & Debtors 4. A joint life policy may cover a partner in business under one policy. 4. Fixed deposits will be less attractive. 4. Liquidity 4. Lock in periods

2. He can take Business 3. He can take Key man Partner insurance Insurance 2. Convertible Term plan 2. Not a specific plan 2. Assignment. 2. Money Back Plan. 2. Employer & Employee 3. Convertible pure Endowment 3. Salary insurance plan 3. Lien. 3. Whole Life Plan. 3. Employee & Insurer 3. Each life will be underwritten separately. 3. Fixed deposits will be more attractive. 3. Tax Benefits 3. Tenure

200 Ch 5 201 Ch 5 202 ch 5 203 ch 5 204 Ch 5

205 Ch 5

1. Plan offer insurance 2. This plan is ideal for coverage for two person brother & sister. in one policy 1. Shares will be more attractive. 1. Easy access 1. Guarantees 2. Shares will be less attractive. 2. Fixed income 2. Taxation

206 Ch 6 207 Ch 6 208 Ch 6

209 Ch 6 210 Ch 6 211 Ch 6

212 Ch 6 213 Ch 6 214 Ch 6 215 Ch 6 216 Ch 6 217 Ch 6 218 Ch 6 219 Ch 6 220 Ch 6 221 Ch 6 222 Ch 6 223 Ch 6 224 Ch 6 225 Ch 6

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. An investor holds a wide range of shares. If the Reserve Bank of India announces a series of significant interest rate increases, the prices of these shares are most likely to Raunak earns 80,000 per month as salary. He has taken a House loan of Rs. 500000. What will be the maximum amount of EMI that can be charged by the Bank to recover the loan amount? In case of life insurance, Insurable interest must exist In which section of Policy document, Information about the location of the insurance Ombudsman had written? Mr. Denny is married and has 2 children and his parents are alive. He has taken a family floater plan. Under the plan who all will be covered. 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? 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 surrenders his policy on Feb 2010 As per Agents code of conduct, an agent can get a new policy from this customer from Feb which year If a policy with premium of Rs 5000 has matured, how much will be deducted when the maturity claim arises 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 Under current regulations what is the maximum stake that the Foreign Partner in Insurance Company hold? In what proportion is the cover in a Family Floater Plan shared? Bank interest is accumulated Who will maintain Mutual Fund Schemes? Which is the primary saving need among all saving needs?

1. Equity market 1. Liquidity 1. Become volatile

2. ULIP 2. More gold in value 2. Decrease

3. Debt mutual fund 3. Purity 3. Increase

4. FD 4. More conversion value 4. Remain unchanged 4. Rs. 48000 per month 4. Any time during the contract 4. Endorsements 4. Denny, his wife, his children and his parents 4. Accounts 4. Policy was lapsed on the time of maturity 4. 2014 4. 10% 4. Ulip 4. 26% 4. No Proportion 4. Once in 6 months 4. Asset Maintenance Company Limite4. 4. Contingency/ Emergency Fun4. 4. Mutual Funds. 4. call centers 4. Bank deposits

3 1 2 1 1 3 4 1 2 1 1 2 4 4 2 3 4 3 2 4 3 2 2 1 2 3 2 2 2 2 3 3

1. Rs. 32000 per month 2. Rs. 24000 per month 3. Rs. 40000 per month 1. At inception of policy 2. Not needed 1. Operative clause 1. Denny 1. Actuary 1. He has switched his fund 1. 2011 1. Nil 1. Endowment plan 1. 48% 1. 25% each 1. Monthly 1. Mutual Fund Management Societies 1. Insurance 2. Attestation 2. Denny and his wife 2. Underwriter 2. He has opted for Settlement option 2. 2012 2. 1% 2. ROP plan 2. 50% 2. 15% each 2. Yearly 2. Mutual Fund Management Systems. 2. Purchasing House 2. Shares 2. through internet 2. Mutual fund 3. At the time of claim 3. Information statement 3. Denny, his wife and children 3. Claim Department 3. He has he has redirected his past premium. 3. 2013 3. 5% 3. Whole life plan 3. 60% 3. 50% each 3. Quarterly 3. Asset Management Companies. 3. Investment. 3. Fixed Deposit in Bank 3. corporate agents 3. Shares

226 Ch 6

227 Ch 6 228 Ch 6 229 Ch 6 230 Ch 6 231 ch 6 232 Ch 6 233 Ch 6 234 Ch 6 235 Ch 6 236 Ch 6 237 Ch 7 238 Ch 7 239 Ch 7 240 Ch 7

Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this amount for his daughters marriage which is going to happen with in Nine months. He would like to 1. Insurance get some returns from this money in these 9 months period. What is the best option to park his money? 1. through individual Which of the following ways is easier for a person to take a saving product? agents 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 1. Life Insurance investment itself. His investment may be in..... Which of the following cant 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? Chap-6 The Central Bank has recently announced the decrease in interest rates. The prices of bonds are Time deposit account is issued by: Pankaj want to save tax over and above the deduction allowed under section 80C of the income tax act 1961, which allow deduction from taxable income In which of the following Bank pays the Interest on the deposits fund on monthly /quarterly /half yearly/ yearly basis as chosen by depositor fund: Mukesh buys shares at lower price and sold at higher price, the Difference between the two prices is known as: Vinod being an insurance agent can offer assistance to his client Ramesh by: If the customer has invested money in a pension plan from company A and buys an annuity from company B, what is the nature of transaction? 1. Pension Funds 1. Bombay Share exchange 1. Likely to increase. 1. Post office 1. Corporate Bond 1. Saving Deposit 1. Dividend Income 1. Providing him emergency fund. 1. Life Long Annuity

2. Public Provident Fund 3. Employee Gratuity Fund 4. Infrastructure Bonds 2. Bombay Stock exchange 2. Likely to decrease. 2.Bank 2. Infrastructure Bond 2.Cumlative deposit 2. Captial Appreciation 3. Stock brokers 3. Will fluctuate. 3.Mutual Fund 3. Health Insurance 3. Traditional Deposit 3. Bonus Share 4. Share brokers 4. No change is likely. 4. Life Insurance co. 4. Interest paid on education loan 4. Fixed Deposit 4. Interest on share 4. Discourse saving in a purposeful and need based manner. 4. deferred Annuity 4. Switch of Funds 4. Term Deposits

2. Matching the product 3. Recommendation of with Rameshs financial product with highest need. return. 2. Open Market 3. Reinsuring Annuity

1. Ensure Better annuity Open market option under Annuity policy would extend which of the following benefit? rate With this type of deposit the bank pays the principal and the total interest at the end 1. Traditional deposits of the term. 1. 10% of the premium The Premium on all riders put together should not exceed on the base policy

2. Increase in the range 3. Increase in return 2. Recurring deposits 3. Cumulative deposits

2. 20% of the premium 3. 30% of the premium on 4. 40% of the premium on on the base policy the base policy the base policy

241 Ch 7

How riders will help the customer in life insurance?

1. allows policyholders to customize their insurance cover with additional benefits 1. The daily amount paid is fixed and will never be more or less than the cost of actual treatment. 1. 1/3rd of the accumulation fund 1. paid up to 75 Yrs 1. 15 days of receiving the proposal 1. 30 days 1. Up to 50000 1. Monthly

2. rider is like a clause 2. The insurance company may pay an additional amount on a daily basis if the insured is admitted to the Intensive Care Unit (ICU). 2. 1/4th of the accumulation fund 2. annuity will be continued for next 5 Years 2. 20 days of receiving the proposal 2. 90 days 2. Up to 99990 2. Quarterly 2. 2015 2. Doing a financial planning

3. Operative clause.

4. Rider is like Preamble.

242 Ch 7

In Daily hospitalization cash benefit scheme,

3. The insurance company 4. Only surgery expenses will pay for doctor are included in daily consultation fees incurred hospitalization benefit prior to hospitalization 3. 1/2nd of the accumulation fund 3. till he die 4. Full withdrawal is allowed 4. not remembered

243 Ch 7 244 Ch 7 245 Ch 7 246 Ch 7 247 Ch 7 248 Ch 7 249 Ch 7 250 Ch 7 251 Ch 7 252 Ch 7 253 Ch 7

A lump sum withdrawal allowed as commutation in pension plans is 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 regulations issued by the IRDA, require that the decision on the proposal must be conveyed to the proposer within According to IRDA guidelines, how long does an insurance company have to complete its investigation of a claim? To ensure that the premiums are paid out of a legitimate source of funds cash is accepted In Cumulative bank deposit the interest that in normally compounded on what basis.

1 2 1 4 1 2 2 3 2 3 3

3. 25 days of receiving the 4. 30 days of receiving the proposal proposal 3. 120 days 3. Up to 100000 3. Half Yearly 3. 2017 3. Churning 4. 180 days 4. Without any limit 4. Annually 4. 2020 4. Fact Finding 4. Will be verified first 4. 1,00,00,000.

If the license of an agent has been disqualified by a designated authority in 2010 then 1. 2013 the person can apply for a license in which year. If the agent recommends the client to terminate an endowment plan and take a whole 1. Switching life in order to earn higher commission its termed as Certificate from the village panchayat The Authority of COPA is limited to what amount at the district level. In case of a term plan the maximum premium of the accidental rider can be.

1. Will be considered as 2. Will be considered as 3. Will not be accepted standard age proof non standard age proof 1. 10,00,000. 1. 100% of basic premium. 1. Insurance broker is represents insurance buyer and remunerated by the insurance company 1. Health Insurance 2. 20,00,000. 2. 50% of basic premium. 3. 50,00,000

3. 30% of basic premium. 4. 35% of basic premium.

254 Ch 7

Which is correct in relation to Insurance Broker? In which plan weekly premium payments are accepted. An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. Its the impact in his taxation What are the benefits to the policyholder Under Surgical care rider? National insurance academy has the following main functions When should an agent disclose the commission which he will earn from the product which he is going to sell

255 Ch 7 256 Ch 7

3.Insurance Broker gets 2. Insurance broker is money from both represents insurance Insurance company as buyer and remunerated well as from Client fo by the Client selling Insurance 2. Group Insurance 3. Micro Insurance 3. He will get a reduction in tax slab

4. None are correct 4. Macro Insurance 4. His investment would be deducted from taxable income

1 3 4

1. He will get tax benefit 2. He will get tax up to 5000 benefit up to 25% 2. Number of days 1. Number of days admitted in hospital & admitted in hospital & surgery expenses in surgery expenses in full partial 2. Interact with the 1. Calculating premium government 1. When the customer asks him

257 Ch 7

3. Treatment cost of 4. Lump sum amount what surgery subject to terms & he has incurred conditions 3. Training 4. Mortality assumptions 4. After the product is recommended to the client 4. Whole of Life 4. The company will not declare bonus

3 3 1 3

258 Ch 7 259 Ch 7

2. After the fact finding 3. After quantifying the process need 2. Term 2. The company is acquiring more business and new customers 2. Proposing 2. Find out the reasons for refusal 2. Insured 2. Hospitalization Care Rider 2. X with wife 3. Money Back 3. A large numbers of policies have lapsed / surrendered resulting in loss of profit 3. Underwriting

260 Ch 7

A customer gets periodic benefits without any claim and then when he dies during the 1. Endowment term of the policy, his nominees gets the sum insured. What type of policy is this ? A low persistency ratio for the insurance company means that: Venu, aged, 32, had a Insurance cover of 10, 00,000/- . He was approached by an advisor who made some analysis and told him that his Insurance need is higher than 10, 00,000 and suggested that he surrenders the existing policy and buys a new one. This is an example of If the recommendation of the agent has been rejected by the client, the agent should: 1. The customers are satisfied with the products 1. Churning 1. Ask the client to fill the proposal form

261 Ch 7

262 Ch 7

4. Switching

263 Ch 7 264 Ch 7 265 Ch 7 266 Ch 7 267 Ch 7

To identify suitable products their main features and their tax treatments is the role 1. Agent of: The rider which is given by the Insurance company pays for the treatment costs in the 1. Critical Illness Rider 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 1. X only Hospitalization rider has the following benefit:

3. Must try to convince the 4. Must try to force the client to follow his client to follow his recommendation recommendation 3. Policy Holder 4. Insured person

2 1 2 4 1

3. Accidental Benefit Rider 4. Surgical Care Rider 3. X with wife and kids 3. Person receives a fixed amount of 1000 daily. 4. X with all 4. Person receives benefit only if he is hospitalized for 3 days minimum.

1. Person receives fixed 2. Person receives an amt daily for no of days amount equal to the in hospital expense.

268 Ch 7 269 Ch 7 270 Ch 7 271 Ch 7

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?

1. Rs. 3, 00,000/1. Collection Phase. 1. Family Health Insurance Plans 1. Taking Life Insurance plan with Critical Illness Rider. 1. all the expense incurred will be reimbursed by the insurance company 1. The rider waives future premiums in the event of the disability or death of the policy holder. 1. immediate annuity

2. Rs. 4, 50,000/2. Accumulation Phase 2. Total Protection Policies. 2. Taking Health Plan, Insurance Plan separately. 2. Some percentage of the expense will be reimbursed by the insurance company

3. Rs. 90,000/3. Pension Phase. 3. Family Floater Health Insurance Plans.

4. Rs, 4, 85, 468/4. Primary Phase. 4. Family Rakshak Health Plans.

1 2 3 1

3. Taking Medi-claim plan 4. Taking Hospital Benefit with Life Insurance. Plan with Endowment Plan. 4. The insurance company 3. a fixed amount on daily will pay all the expense basis is paid by the only after consulting insurance company hospital authority.

272 Ch 7

In 'Daily hospitalization cash benefit plan'......

273 Ch 7

Which of the following is not a feature of WOP rider?

274 Ch 7 275 Ch 7 276 Ch 7 277 Ch 7 278 Ch 7 279 Ch 7 280 Ch 7 281 Ch 7 282 ch 7 283 ch 7 284 ch 7 285 ch 7

Mr. Ramakant is 35 years old. He has bought retirement plan for 20 years. This type of pension plan is known as.................. Mr. Ranga has taken Critical Illness Rider. In which of the following scenarios the insurance company will pay him...... The concept of Risk diversification is applicable in which of the following instrument ?

2. This rider is ideal for helping to prevent a 3. The main strength of 4. WOP rider can be policy lapsing due to WOP is the payment of full offered with all plans non-payment of sum assured. premiums due to death or disability 2. life annuity 3. deferred annuity 3. When Mr. Ranga's family member will be in critical illness 3. Shares 3. Capital Benefit 3. Coma 3. Deferred Annuity 3. Family floater health insurance plan 3. Individual agents. 3. 30% of SA. 3. Current liabilities. 3. Taxation & inflation both. 4. joint life annuity 4. When Mr. Ranga dies due to severe road accident. 4. Risk Sharing insurance 4. Capital Variation 4. Brain Surgery 4. Immediate annuity 4. Family Health benefit plan 4. Permanent exclusions 4. Internet. 4. 40% of SA. 4. Duration of investment. 4. No provision is require4. 4. To purchase a medical plan. 4. The premium increases with increasing age. 4. Savings insurance plan. 4. 2/3rd of accumulated amount. 4.Daily hospitalization cash benefit plan 4. Customization and tax benefit. 4.5 lac 4.1/4th of Accumulated Fund 4. Real needs are needs which satisfy an objective and perceived needs are needs which do not satisfy an objective.

3 2 1 1 4 4 3 3 4 2 4 3 1

Ajay bought a share for Rs.110 and he sold when it was Rs.630.What had happened to 1. Capital Appreciation his share? Which one of the following cannot be covered under Critical illness rider? 1. Blindness Mr. Yash has taken an annuity on 25th August 201The benefit of the plan will start 1. Guaranteed period from 25th August 201 What type of annuity plan is this? annuity Mr.Rohith wants to have a health insurance plan for his family and for his aged 1. Group Family health parents. which will be the best plan for him ? insurance plan In what situation Waiting Period is applicable in a health insurance? E-sales refers to sales of insurance products through To avail the income tax benefit at investment stage, premium should be maximum The savings needs of a particular individual is majorly determined by While calculating the expected returns from investments and savings, an individual should make provisions for 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? The general need for purchasing a health insurance plan at an early age results from which of the following factors? 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 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? Due to some medical problem Neeraj got hospitalized and insurance Company paid him a fixed amount on daily basis, what kind of health Policy he bought it? Which of the following is not featured and benefit of rider? 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: Kajal is investing for the purpose of retirement at the time of vesting Age before receiving the regular annuity she has option to withdraw/commute Upto: In the context of financial planning, how is the difference between real needs and perceived needs best described? 1. Immediate care

2. When Mr. Ranga is 1. When Mr. Ranga dies diagnosed a critical due to critical illness illness 2. Risk Diversified 1. Mutual Fund Insurance 2. Capital Profit 2. Paraplegia 2. Life annuity 2. Family health insurance plan

2. Medical examinations 3. Pre-existing illness

1. Insurance brokers. 2. Bancassurance. 1. 10% of S1. 2. 20% of SA. 1. Amount of disposable 2. Current assets. income. 1. Taxation only. 1. To purchase an accidental rider with a savings insurance plan. 1. The premium decreases with increasing age. 1. Equity. 2. Inflation only.

286 ch 7

2. To purchase a health 3. To save through fixed plan along with a deposits in bank. savings insurance plan. 2. The premium remains constant with increasing age. 2. Bank fixed deposits. 3. The premium may increase or decrease with the increasing age. 3. Health insurance plan.

287 ch 7 288 ch 7

4 3 2 4 2 2 2

289 ch 7

1. 1/5th of accumulated 2. 1/3rd of accumulated 3. 2/5th of accumulated amount. amount. amount. 1. Group health insurance 1. Providing additional cover 1.10 lac 2.Family floater Insurance Plan 2. Maturity benefit 2. 20 lac 3. Individual health insurance plan 3. Nominal cost & flexibility 3.30 lac 3.1/3rd of Accumulated Fund 3. Real needs are identified by the insurance agent and perceived needs are identified by the client.

290 Ch 7 291 Ch 7 292 Ch 7 293 Ch 7

294 Ch 8

1. 2/3rd of Accumulated 2.1/2th of Accumulated Fund Fund 2. Real needs are actual 1. Real needs are needs and perceived financial needs and needs are based on a perceived needs are nonclients thoughts and financial needs. desires.

295 Ch 8 296 Ch 8

297 Ch 8 298 Ch 8 299 Ch 8 300 Ch 8 301 Ch 8 302 Ch 8 303 Ch 8 304 Ch 8 305 Ch 8 306 Ch 8

If a person is concentrating more on health plan and retirement plan then at which stage of life is he in. 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? 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? Mrs. Sheela received some amount out of her husbands death. In such a situation what will be her prime focus? Where one can approach in case of dispute? Health insurance policy holder takes treatment in a hospital which doesnt have cashless facility. How the policy holder will get benefited What is the ceiling of tax exemption under 80 c. What is the limit of tax benefit that can be availed of under Section 80C.? Mr. Raj is married and having 2 children. Which plan can he take that can cover his whole family? Under section 80C the maximum tax deduction that can be gained for premium paid is _______ in a financial year. A Professional insurance market carries.. Perceived needs are those. Need analysis involves identifying

1. Young unmarried 1. Term Insurance Plan 1. Marriage. 1. Savings 1. IRDA 1. Need to spend and Get claim from the insurer 1. 1 lakh 1. 75K 1. Health Insurance 1. Rs. 75,000

2. Young married 2. Endowment plan 2. Savings. 2. Insurance 2. Consumer Forum 2. Need to add that hospital as TPA 2. 1.5 lakhs 2. 1L 2. Family floater 2. Rs. 1, 10,000

3. Young married with Kids 4. Pre retirement 3. Return of premium plan 4. Pension plan 3. Education. 3. Investment management 3. Distric Forum 3. Need not to claim 3. 2 lakhs 3. 1.5 L 3. Life Insurance 3. Rs. 1, 20,000 3. Commission Based Selling 3. Imagined to be important by client. 3. Existing insurance plans. 3. the annual bonus amount 3. normal 3. the smarter 4. Protection. 4. Planning for pension 4. National Forum 4. Need to switch to the another insurer 4. 3 lakhs 4. 50K 4. Retirement 4. Rs. 1, 00,000 4. Company Based Selling. 4. Long term needs. 4. Family and Employment details. 4. the sum of one's all investment 4. Neutral. 4. the superior 4. Employment stage 4. Important need 4. Clients social background. 4. At the time when Advisor takes the decision 4. Investment and life needs 4. Selling what IDRA wants company to sell. 4. No Risk.

4 3 1 3 2 1 1 2 2 4 1 3 1

2. Product Based 1. Need Based Selling Selling 2. Imagined to be 1. Short term needs. important by Advisor. 1. Financial provision to 2. Capacity to pay the meet predictable and premiums in future. unpredictable needs. 1. the surplus amount that can be invested 1. high 1. the lower 1. Pre-retirement stage 1. Real need 2. the amount that can be paid towards one's EMIs 2. low 2. the higher

307 Ch 8

308 Ch 8 309 Ch 8 310 Ch 8 311 Ch 8

The disposable income means...... Mr. Shanth is in his early 20s and has just started earning. His risk appetite is expected to be..... The younger the age of an individual..............their liabilities will be. 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............. Fact finding enables the insurance advisor to identify the............. The timing of death is uncertain, so when one should take life insurance? Which are the two primary needs of any customer in any point of life? The concept of need based selling involves For his investment need, Ravi has parked funds in equity. The returns from this form of investment can be categorized as 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? As an adviser why is it essential for you to carry out the financial planning exercise with the prospective clients?

1 2 1 1 2 1 2 2 3 1 3 3

3. Married with older 2. Post retirement stage children stage 2. Perceived need 3. Imaginary need 3. clients hereditary diseases 3. Anytime in life 3. Investment and savings 3. Selling what customer requirement is. 3. Moderate Risk.

312 Ch 8 313 Ch 8 314 Ch 8 315 Ch 8 316 Ch 8 317 Ch 8 318 Ch 8

2. clients personal 1. clients financial need problems 1. At the time of uncertainty 1. Investment and retirement 1. Selling what company wish to sell. 1. High Risk. 1. Retirement need. 1. Individuals understand their real needs and can prioritize them. 1. When a person of the family is involved in double businesses or jobs. 1. Public sector employees 2. At an early age 2. Investment and Protection 2. Selling what adviser wish to sell. 2. Low Risk. 2. Tax planning need. 2. Individuals have same financial needs at different stages of the life cycle.

3. Financial security need. 4. Asset building nee4. 3. Individuals do not understands their real needs and cannot prioritize them. 4. Individuals real and perceived needs are same.

319 Ch 8

320 Ch 8

What do you mean by Double Income Family? In which of the following case there is no defined retirement age? Which one of the following is true? During fact finding, What will be the next step after Identifying clients need During a fact finding process the need analyzed were income replacement and childrens education. But the customer insists on only a child plan for the time being and asks the agent to give him a child plan. The agent should. 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?

2. When both the life 3. When the income of a 4. When the members of a partners are earning family is just the double of family do not work at all. members of the family. income of another family. 2. Private sector employees 3. Professionals & Businessmen 4. All of the above 4. An individual should not keep in mind his income while planning his expenditure.

2 2 2 1 3 4

321 Ch 8

322 Ch 8

1. Every individuals 2. Every individuals 3. An individuals income income and expenditure income and expenditure and expenditure has no pattern is same. pattern is different. relation. 1. Quantify clients need 1. Do the fact finding exercise again 1. Money Back 2. Priorities Clients Need 2. Insist with the client to take a term plan 2. Term Plan

323 Ch 9 324 Ch 9

3. Recommending Product 4. Fill up the proposal form 3. Give a child plan and 4. Give the lead to another revisit the client on a later agent date 3. Endowment Plan 4. ULIP

325 Ch 9

326 Ch 9 327 Ch 9 328 Ch 9 329 Ch 9

What should an agent do in order to understand the mental state of client in respect to his investments in saving products Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason Which is the best option to manage risk? 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? Which of the following is true regarding Family Floater Health Insurance Plan?

1. Fact finding

2. Consulting the clients parents 2. Transfer

3. Consulting the family of 4. Reviewing his existing the client investments 3. Interest rate 3. Avoid 4. Market Risk 4. None 4. No, as there is an age difference. 4. The insurance cover is shared amongst the family members in no fixed Proportion. 4. Children. 4. Clarification Questions. 4. Recommend to take his own time to take a decision.

1 2 2 2

1. Administrative charge 2. Inflation 1. Retain 1. Yes, as Naveen and Ram are of same age.

2. No, customers needs 3. Yes, as both are are different teachers

330 Ch 9

1. A Family Floater Plan 2. Only self and spouse 3. Any number of people is the same as a can be covered in this may be covered in this Individual Plan plan plan. 2. Young married with children. 2. Open Ended Questions. 3. Retirement. 3. Interrogative Questions. 3. recommend the new product the company has recently launched

331 Ch 9 332 Ch 9

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 1. Young Unmarried. to fall into? 1. Closed Ended Which type of questioning is very useful to gather information from clients? Questions During the recommendation stage the advisor needs to......

3 2 1

333 Ch 9

1. recommend the 2. recommend to wait products that best meet some days to invest the client's needs 1. The life of the person 2. The risk retained paying compensation person 's family 2. Advisor Confidential Sheet 2. B.KYC document 2. Clients Expense statement 2. Identify, Quantify & Prioritize Needs. 2. Identify only the clients needs. 2. Gathering client data 2. Benefit illustration documents 2. Should ask for the reason for not going with the recommendation 2. Financial risk 2. The client represent the broker and the insurer remunerate the broker 2. 1 day

334 Ch 9 335 Ch 9 336 Ch 9

Insurance Protects which of the following?

3. The financial goal of the 4. The life of the nominee insured 3. Customer Data sheet 3. C. Benefit illustration document 4. Personal and financial data sheet 4. D. Client benefit document

3 1 3 1 2 4 4 2 2 3 1 3 1 4 2 3 1

337 Ch 9 338 ch 9 339 ch 9

In which of the following an agent will collect the customers Personal data, 1. Fact Finding Sheet professional data and financial data Mr.Mohith, an agent was explaining to his customer the guaranteed benefits of the 1. Fact Finding product. Which one of the following documents he would have used to explain the document same? Mr.Harsha an agent wants do a thorough Fact Finding for his client to Mr.Kishan who is 1. Clients Profits and a business man. Which of the following information will be helpful to know about the Withdrawals from earnings and Expense of Kishan? business During the fact finding session as an agent you should follow which one of the 1. Prioritize, Identify & following process? Quantify Needs. The objective of Fact Finding is to Objectives of fact-finding do not includeWhich one of the following documents distinguishes between Guaranteed and nonguaranteed benefits? If the client does not wish to proceed with the recommendations right at the moment the agent should The consequences of these risks which will affect specific individuals or local communities in nature is called as According to Insurance Brokers Association of India, what is the most appropriate relationship between Insurer and Broker? What is the stipulated time frame within which an insurer is supposed to respond after receiving any communication from its policyholders? Naresh is married and his daughter Sneha is 3 years old. Which plan can he take? What is the factor which has influence on persistency? Agent who is a licensed intermediary is actually is ? Which one of the following factor does not help in the Persistency ? 1. Gather Clients Information only. 1. Identify needs 1. KYC documents 1. Insist on taking the product right away 1. Pure risk 1. Insurance broker represent the client and the insurer remunerate the broker 1. 24 hours

3. Clients business details 4. Clients business records 3. Quantify, Identify & Prioritize Needs. 3. To provide solution of companys choice. 3. Provide for anticipated changes 3. Fact-finding sheet 3. Should ask for a future date from the client 3. Particular risk 3. Insurer represent both client and broker remuneration 3. 10 days 3. Whole Life Plan 3. Policy Servicing 3. C.A legal person to act on behalf of the contract 3. Dispatching Discharge voucher to the customer 3. Communication skills. 4. Prioritize, Quantify & Identify Needs. 4. Both identify clients needs & gather information. 4.Surrendering the existing policies for selling new one 4. Financial details 4. Should review once again 4. Physical hazard 4. Broker only service the client 4. 30 days 4. Health Plan 4. All of the above. 4. D. An authorized agent to act on behalf of the legal company 4. Continuous servicing of the policy 4. Client information gathering skills.

340 Ch 9 341 Ch 9

342 Ch 10

343 Ch 10

344 Ch 10

345 Ch 10 346 Ch 10 347 Ch 10 348 Ch 10

1. Term & Children Plan 2. Annuity Plan 1. Role of Agent 1. A legal person to act on behalf of the reinsurer 1. Regular reminders about the premium to the customer 2. Product Design. 2. B.A legal person to act on behalf of the insurer 2. Flexibility of Premium payment to the customer 2. Listening skills.

349 Ch 10

350 ch 10

After undertaking financial planning exercise, the prospective client said that he does 1. Objection handling not have funds for investments. To resolve this query, which skill of an agent would be skills. tested? When client declines the recommendation by the insurance adviser even after resolving the concerns, the adviser should What key benefit high persistency ratios have on insurance adviser?

351 ch 10

2. Should ask for 1. Persuade the client to reference who might be 3. Should never approach 4. Should do nothing. purchase the policy. the client ever again. interested in financial planning. 1. High renewal income. 2. Less renewal income. 3. Fewer client bases. 4. Unsatisfied clients.

2 1

352 ch 10

353 ch 10

354 Ch 10 355 Ch 10

356 Ch 10

Amit & Rashmi are newly married. Both are working couple. They want to invest their 1. Ruining the long term savings of 100,000 annually to build corpus to make down payment for their house 5 reputation of company. years from now. An adviser sold than a unit link product to meet their requirement. This may result in Under which one of the following acts the maximum remuneration that can be given to 1. Income Tax Act insurance agents described? 1. Helps the client in Which one of the following is not a benefit of persistency? achieving goals 1. Satish should check Satish as an insurance advisor while recommending to his client Ramesh is not the Ramesh s suitable policies commitment to the needs Why a building long term relationship with clients is necessary? 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. Which of the following falls under voidable contract? 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 Family floater health Insurance plan covers Who is a regulator, supervisor and monetary authority of the financial system in India? An individual is said to be competent to enter into a contract if they are For tax Saving Someone wants to fixed deposit in bank. What duration is required for it? Pure risk is classified under 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 .. 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 Vinay doesnt 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 ______ What is meant by a claim under insurance policy? Who will take the initiation to settle the maturity claim process? Which is the right statement regarding claim enquiry? A missing person will be presumed to be dead only after. 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.......... Detailed Investigation will be triggered in case of...... In insurance, if a person is not heard for .......years his is presumed to be dead. In the process of settling maturity claims.... 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? Mr. sham had taken a term plan in 2008 . He died of cancer in 20 Investigation about his death revealed that he was deducted cancer in 200What will happen to his death claim? 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? Mr.Sampath has taken a policy on January 10th 2006 for a term of 12 years. Due to financial instability he discontinued to pay the premium from 201 He died on August 13th 201 What will happen to his death claim ?

2. Opportunity of new business for adviser. 2. Indian Contract Act 2. Reduction in costs

3. Bad reputation of the individual adviser. 3. Insurance Act 1938 3. Increased client satisfaction

4. Financial burden on the couple. 4. IRDA Act 1999 4. Decreased revenues

2 3 4 4

357 Ch 10

4. Should advised him to surrender all the polices which are not buy from satish. 4. Introduction of a new 1. A satisfied client may 2. Reviewing financial 3. Agent has the option to insurance product or a be the source of other needs and plans are recommending highest change in a clients potential clients necessary with changes commission at any time. Circumstance 1. It was assigned. 1. It was lost. 1. Misrepresentation 1. Fraudulent claim 1. All members of a Family 1. IRDA 1. 18 year old 1. 3 years 1. Economic risk 1. Consumer Forum 1. Less than 10000 1. Transfer 1. A demand to fulfill the policyholders obligations. 1. Client 2. It was paid up. 2. It was paid up. 2. Lack of insurable interest 3. It was lost. 3. It was lapsed. 3. Fraud 4. It was surrendered. 4. It was surrendered. 4. None of the above 4. Pending decision from Ombudsman 4. Children Only 4. SBI 4. 25 year old 4. 2 years 4. Insurable risk 4. Life Insurance Council 4. More than 20000 4. Avoidance 4. All of the above.

2. Satish should outline 3. Satish should check the the reasons for acceptance or rejection of recommendation for a the recommendation. particular policy

3 3 1 1 2 1 3 1 2 4 1 3 3 2 4 1 3 2 3 3 2

358 Ch 11 359 Ch 11 360 Ch 11 361 Ch 11 362 Ch 11 363 Ch 11 364 Ch 11 365 Ch 11 366 Ch 11 367 Ch 11

2. Indisputability clause 3. Redressal procedure 2. Husband and Wife only 2. SEBI 2. 21 year old 2. 5 years 2. Speculative risk 2. COPA 2. More than 10000 2. Control 3. Parents only 3. RBI 3. 23 year old 3. 7 years 3. Financial risk 3. Sebi 3. Less than 20000 3. Retaining 3. Any demand made by the policyholder on the insurer. 3. Advisor

368 Ch 11

369 Ch 11

370 Ch 11 371 Ch 11 372 Ch 11 373 Ch 11 374 Ch 11 375 Ch 11 376 Ch 11

2. A demand to fulfill the insurers obligations. 2. IRDA 2. The insurance 1. The insurance company makes company makes enquire enquire on maturity only on death claims. claims only. 1. Three years 2. Five years. 1. Normal death claim 1. Maturity claims 1. 5 years 1. the company will wait until the claimant comes to office to demand the claim 1. claim of critical illness and 10 lakh from term policy will be settled 1. Claim will be rejected 1. Total 7 lakhs will be paid as death had taken place 2. Early death claim 2. All death claims 2. 6 years 2. the process is initiated by the company well in advance of the maturity date 2. claim of hospital charge Rs 20,000 and 1 lakh for death will be settled 2. Claim will be settled as Cancer was not deducted in 2008 2. Total 4 lakhs will be paid as death had happened due to car accident

4. Insurance company 4. Enquiry will be done if 3. Enquiry will be done on death happens before one both Maturity and Death year from policy inception Claims. date. 3. Seven years. 4. Nine years. 3. Abnormal death claim 3. Early death claims 3. 7 years 4. Unnatural death claim 4. Rider benefit claims. 4. 8 years

377 Ch 11

4. If the claimant does not 3. it is the responsibility of come within a month the the claimant to approach entire maturity amount will the company be forfeited. 3. Claim will not be settled as he died due to cancer 4. Claim will be settled as per the instructions of underwriter

378 Ch 11

379 Ch 11

3. Claim will be settled as 4. Claim will be delayed he died in 2010 3. Total 11 lakhs will be paid 4. Total 7 lakhs will be paid without any deduction.

380 Ch 11

381 Ch 11

1. Eligible for claim as 3. Claim will be settled 4. Claim will be settled 2. Not eligible for Claim the premium was paid after deducting the unpaid after the deduction of settlement from 2006 to Dec 2010. premium unpaid loan amount

382 ch 11 383 ch 11 384 ch 11 385 ch 11

The agents duties and responsibilities ends Insurer will not pay the claim unless 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 Pranab is not able to pay premium for continue his policy due to some Financial problem, so he rather than surrendering the policy, what Option he has to convert .?

1. When the clients policy is issued. 1. The policyholder makes a demand.

2. When the clients needs have been established. 2. The nominee makes a demand.

3. When the nominee has changed. 3. The event insured against happens.

4. When the maturity/claim is settle4. 4. The insurer completes the enquiry.

4 3 1 2 1

1. The policy was not in 2. This condition is force. excluded in the policy. 1. The claim may not be genuine. 1. In to paid up and reduced Sum Assured would be payable on maturity. 2. The policy may be pledged.

4. The claim is an early 3. The claim is fraudulent. claim. 4. There is no nomination. 4. Policy was subject to lien.

386 Ch 11

387 Ch 11

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 Maturity .what would be payable 1. only Sum assured on maturity? 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. Which one of the following report is not considered in case of Pankaj Bought a plan in 2009 & died in road accident in 2011 : If a case is already before the consumer forum, then the ombudsman should Indisputability clause can be enforced by the insurance company during the Ashish is looking at different plans of insurance for protection at the lowest premium. Which is the best plan for him? What is the major reason for conducting fact finding exercise? The guidelines for annual assumed growth rate are given by Pricing element is done by As per AML regulation, it allows cash premium not over than Which is the not part of KYC norms? Remuneration to Agents includes Which is the 2
nd

388 Ch 11 389 Ch 11 390 Ch 12 391 Ch 12 392 Ch 12 393 Ch 12 394 Ch 12 395 Ch 12 396 Ch 12 397 Ch 12 398 Ch 12 399 Ch 12 400 Ch 12 401 Ch 12 402 Ch 12

1. Accidental death benefit (ADB) 1. Policy first information report. 1. Give a recommendation 1. First five years of policy 1. Term plan 1. Need analysis 1. Life Insurance Council 1. IRDA 1. Rs.20000 1. Photographs 1. First Year Commission 1. Layering

3. The facts were misrepresented. 3. Deduct the underpaid 2.Return of Premium on premium from Sum maturity assured and payable on Maturity 3. Sum assured plus vested bonus minus any 2.Sum Assured + Bonus outstanding loan/premium & Interest. 2. Critical illness (CI) 2. Advisor confidential report 2. Give a joint decision with the consumer forum 2. First Two years of policy 2. Endowment plan 2. Understand about company 2. IRDA 2. Insurance Company 2. Rs.25000 2. Proof of identity 2. Renewal Commission. 2. Placement 3. Hospital Care (HC) 3. Post Mortem Report. 3. Dismiss the case 3. Claim 3. Whole life plan 3. Introduction of agent 3. Actuaries 3. Life Insurance Council 3. Rs.5000 3. Proof of address. 3. Both of the above.

4. Paid up value only. 4. Term Rider. 4.Coroners Report 4. Give an award. 4. Inception of the policy 4. Money back plan. 4. Understanding the Customer 4. Underwriter 4. CII 4. Rs.50000 4. Lapsed policy details. 4. Salary and Reimbursement. 4. Amalgamation.

3 3 2 3 2 1 1 2 2 4 4 3 1 3 1 1

stage in Money Laundering?

As per the IRDA circular an insurance agent....... In the case of agent's death, the commission payable will be paid to......... Which one of the section deals with the licensing of an agent?

1. need not disclose the 2. need to disclose the amount of commission amount of commission 1. his legal heirs 1. Section 42 of the insurance act 1938 1. Need to complete 25 hours of practical training and paying Rs.50 for the issuance of duplicate license 1. The Life Assured. 1. Insurance Company. 2. to his nominee 2. Section 42 of the insurance act 1936 2. Need to complete 50 hours of practical training and paying Rs.100 for the issuance of duplicate license 2. The beneficiaries. 2. Designated Person. 2. Married Man

3. Integration 3. need to disclose the amount of commission on 4. Should not disclose. demand 4. Paid in lump sum to the 3. will stop automatically survivors. 3. License section of 4. License section of Insurance act 1938 insurance agent act 1938 3. Need to complete 25 hours of practical training and paying Rs.100 for the issuance of duplicate license 3. The trustee. 3. Branch Operations Team. 3. Married Son 4. Need to complete 50 hours of IRDA training and paying Rs.50 for the issuance of duplicate license 4. The administrator. 4. Actuary. 4. Married Daughter 4. Only Hospital bill will be paid 4. No benefit 4. 6 months 4. Insurance Institute of India 4. 50% of SA max. 4. 25 days 4. Income protection

403 Ch 12

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 ? Under Married Womens Property Act, 1874 a policyholder is Who has the authority in insurance company to issue/cancel the agents license

404 ch 12 405 ch 12 406 Ch 12

3 2 2 3 1 1 2 2 2 4

Married Womans Property Act 1874 provides that a life insurance Policy that has been 1. Married Woman taken out by:

407 Ch 13

408 Ch 13 409 Ch 13 410 Ch 13 411 Ch 13 412 Ch 13 413 Ch 13

3. A fixed amount on a How the Daily hospitalization cash benefit will provide benefits to policyholder who is 1. Entire charges are 2. Entire charges less daily basis is paid hospitalized? refunded. bed charges will be paid irrespective of the actual cost of treatment If there is no claim in a year than what will be the benefit to the customer as NO 1. Discount in next year 2. Increase in Sum 3. Loans facility CLAIM BONUS premium Assured next year Ombudsman passes an award within which time 1. 1 month 2. 2 months 3. 3 months 1. Life Insurance Which body has created a call center for logging a complaint 2. IRDA 3. Insurance Association Council One person wants to take term plan for 20 lakh and wants to take ADB rider, he is not 3. Any Amount he can 1. Needs to take sure of how much sum assured he needs to take for ADB rider. What is your 2. Equal to base cover take if he is ready to pay experts suggestion suggestion? premium Insurance companies are required to honor the awards passed by the Insurance 1. 10 days 2. 15 days 3. 20 days Ombudsman within how may days 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 1. Childs education 2. Marriage 3. Emergency funds and emergency funds.

414 Ch 13 415 Ch 13 416 Ch 13

If a valid claim is delayed by the insurer then the interest for the same will have to be 1. 10 days paid by the insurance after how many days from the date of admission of the claim? _____ controls monetary system in India What is the maximum stake can foreign company has in one insurance company in India? Who controls and regulate the rates, advantages, terms and conditions that may be offered by insurers in the respect of general insurance business. According to IRDA regulations the maximum percentage of first year commission to be paid to an insurance advisor is............. Issuance of a license to a person has been stipulated in................Act The foreign direct Investment (FDI) in Indian Insurance Industry is allowed up to..... The Insurance Institute of India (III) was formed in..... Which official body decides to increase the interest rates? Which of the following team represents the members of GBIC ? 1. RBI 1. 74%

2. 20days 2. IRDA 2. 26%

3. 30 days 3. SEBI 3. 24% 3. Tariff Advisory Committee. 3. 40% 3. Section 12 of the Insurance Act 1922 3. 26% 3. 1955 3. Reserve bank of country

4. 60 days 4. Constitution 4. 76% 4. Insurance Institute of India. 4. 45% 4. Section 34 of the Insurance Act 1932 4. 27% 4. 1947 4. Central bank of country 4. Representatives from Insurance institute of India 4. General insurance council 4. Agent will be qualified for the contest 4. Customer will complain to Ombudsman 4. Insurance Institute of India. 4.Insurance Institute of India 4.49%

3 1 2 3 2 2 3 3 2 1 1

417 Ch 13

1. Insurance Regulatory 2. Reserve Bank of and Development India. Authority. 1. 30 % 1. Section 43 of the Insurance Act 1939 1. 50% 1. 1956 2. 35% 2. Section 42 of the Insurance Act 1938 2. 25%

418 Ch 13 419 Ch 13 420 Ch 13 421 Ch 13 422 Ch 13 423 Ch 13

2. 1999 2. Reserve bank of 1. Central bank of India India

1. Representatives from 2. Representatives from 3. Representatives from all insurance companies all government bodies IRDA 3. National Insurance council 3. Agent will be terminated 3. Raghav License will be cancelled 3. Chartered Insurance Institute. 3. Insurance Regulatory Development Authority 3.74%

424 Ch 13

Which council among the following focus on creating a positive image of the insurance 2. Consumer insurance 1. Life insurance council industry and would also like to enhance the Consumers confidence on the same ? council Mrs. Hansa an agent, has planned to sell maximum products within a short span of 1. It will benefit both time by giving maximum rebates to the customer to complete the contest target of the the company and the company. customer Mr.Raghav is an expert in fact finding .Mr.Raghav helps his brother in his job by sharing the information of his clients after the fact finding he does to procure insurance. What will be the outcome ? Which organization was formed with purpose to promote insurance education and training in India? The face of the life Insurance industry in India is ..? At what percentage FDI allowed in life Insurance sector by Govt. If a policy holder buys a policy from the advisor and lodges a complaint, it should be treated as : Group Insurance can be taken in following relationship Maximum time for investigation in disputed claim? The Ombudsmans powers are restricted to insurance contracts of value not exceeding? What amount of insurable interest does an individual have in his own life? 1. Raghav will be promoted to the next level 1. Institute of Actuaries of Indi1. 1. Life Insurance Council 1.26% 1. Same for all policies sold by advisor 1. employee- employer 1. 1 month 1. 50 lakhs 1. 20,000 2. Reputation of the company will be high due to offers to the customer 2. Raghav will be terminated 2. National Insurance Academy. 2. Life Insurance Corporation 2.24%

425 Ch 13

426 Ch 13 427 ch 13 428 Ch 13 429 Ch 13 430 Ch 14 431 Ch 14 432 Ch 14 433 Ch 14 434 Ch 14 435 Ch 14 436 Ch 14

3 4 1 1 1 1 4 4 4 3 4

2. Same for all policies 3.Only for policy for which sold by the advisor 4.None applicable complaint has been given except corporate clients 2. husband-wife 2. 2 months 2. 30 lakhs 2. 50,000 2. Endowment plan. 2. Decreases 2. Those Insurer who did not created Insurance Ombudsman System 2. Decrease 3. family members 3. 3 months 3. 25 lakhs 3. Up to the sum assured taken in the plan 3. Money back plan. 3. Reaches at a level as per industry trends 3. All insurer 3. Slightly higher 4. society members 4. 6 months 4. 20 lakhs 4. Unlimited 4. Wholelife plan. 4. Insurance can price their product on their self past experiences. 4. It is optional 4. Slightly lower 4. Only Non-life insurance 4. Decreased Life fund 4. Only one fourth of the fund can be withdrawn 4. Inspection by Auditor General 4. 20000 4. Mutual Fund Company 4. 15 4. Consumer Protection Department (CPD) 4. General insurers.

Harshs policy matured, however he was paid only 25% of the sum insured in spite of 1. Term plan. all his premiums been paid on time. This indicates that his policy is a De- tarrification is a process by which pricing of Insurance As per Regulation for protection of Policyholders interest 2002 (IRDA), Which insurer will have a grievance redressal System What will be lien amount in 3rd year as compared to the 4th year of lien. Pooling of insurance applies to What is the disadvantage to the insurer in case the persistency falls For annuity plans, before receiving regular/periodic annuity payments, the individual can make a lump sum withdrawal. This is known as commutation. Up to what proportion of the accumulated fund can be withdrawn? AML Program of every insurer to include _______________, apart from Procedure, Training and audit. What is the minimum Sum Assured allowed for Micro Insurance? Where would you have to go if you wanted to buy a Kisan Vikas Patra? How many ombudsmen offices located in India? What the name of department that is established by IRDA to deal with customer complaints? The insurance ombudsman has been appointed to protect the interest of....... 1. Rises

437 Ch 14 438 Ch 14 439 Ch 14 440 Ch 14 441 Ch 14

1. Some Specific Insurer 1. It is higher 1. all types insurance 1. Lower profits 1. The entire fund can be withdrawn 1. Inspection by IRDA 1. 5000 1. Any Nationalized Bank 1. 10 1. Customer Complaint Department (CCD) 1. policyholders

3 2 1 1 3 4 1 3 2 3 1

2. All types of insurance 3. Only life insurance except Motor insurance 2. Higher profits 2. Only half of the fund can be withdrawn 2. Audit by Finance Ministry 2. 10000 2. Insurance Company 2. 12 2. Customer Grievance Department (CGD) 2. shareholders 3. Increased Liability 3. Only one third of the fund can be withdrawn 3. Appointment of Principal Compliance Officer 3. 15000 3. Post Office 3. 14 3. Consumer Affairs Department (CAD) 3. insurers

442 Ch 14 443 Ch 14 444 Ch 14 445 Ch 14 446 Ch 14 447 Ch 14

448 Ch 14 449 Ch 14 450 Ch 14 451 Ch 14 452 Ch 14 453 Ch 14 454 Ch 14 455 Ch 14 456 Ch 15 457 Ch 15

The charges were not fully disclosed to the customers" is a common complaint against..... Which regulations take care of the settlement of claims ? If any consumer is dissatisfied with the customer care cell of any insurance company to whom they can escalate their grievances. 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

1. IRDA 1. Protection of Policy holder Interests

2. Agents 2. IRDA claim protection regulation 2002

3. Shareholders 3. C.IRDA policy settlement regulation 2004

4. Underwriters 4. D. Protection of claim settlement regulation 2002 4. Compliance officer

2 1 1 2 1 4 1 2 1 1

regulation 2002
1. Nodal officer 1. Policyholder grievance Regulation 1. 10 Days.

2. Grievance call center 3. Compliance cell 2. Policyholders Protection regulation 2. 15 days.

3. Ombudsman Regulation 4. Compliance Regulatory 3. 20 Days. 3. Grievance Redressal Officer. 3.25 Days 3.14 3. Pass on to the superior 4. 30 Days. 4. Consumer Affairs Department. 4.10 Days 4.16 4. Pass on to the other agent

458 Ch 15

459 Ch 15

460 Ch 15 461 Ch 15 462 Ch 15 463 Ch 15 464 Ch 15

2. Internal Grievance 1. Integrated Grievance To ensure that the customers complaints are handled effectively, IRDA has established Redressal Cell of the Management System. Insurer. If policy holder is not satisfy with term and condition the policy which She/he has 1.15 Days 2.20 Days received, then has option to return policy with in..? How Many offices of Ombudsmen the Government body has set up to Resolving 1.15 2.12 insured customers grievances. After doing the need analysis of the client, the agent advised the client to opt for 1. Enquire about the 2. Suggest an TROP product. But the client refused. According to ethical business practices what will refusal from the client alternative plan the agent do ? According to IRDA agents code of conduct, what is the best method of showing the 1. Signed copy of sales 2. Brochure amount of commission earned by the advisor illustration 2. Specified amount multiplied by the 1. 10% of the sum Under the hospital care rider what is the payout made number of days the assured policyholder is hospitalized Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers 1. Nil 2. 10% illness before maturity? 2. If the agent has 1. When the insurance worked with the When can an insurance company give more than 35% first year commission? company is in the first company for more than 10 years of operation 5 years A person suffering from lung cancer is a smoker. Here smoking can be termed as 1. Peril 2. Hazard Which of the following is a Non Standard Age Proof 1. PAN Card 2. Certificate of Baptism 2. 2014 2. Churning 2. Behavior that is based upon the moral judgments of an individual 2. Under selling of Insurance policies. 2. bad 2. unethical 2. Insurance Council 2. Surrendering the policy 2. IRDA Acts code of conduct. 2. Churning. 2. Life Insurance Corporation License of an agent was withdrawn in June 2010 due to malpractice. He can reapply 1. 2015 for his license in 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 1. Switching to Mr. Gayaram. This is called as Ethics can be defined as Which is not unethical behavior in below statements? For an insurance advisor churning is.............practice 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............ The code of conduct has been prescribed in India by........... 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 ? Rahul is a licensed insurance agent. As agent he must carry out his role in accordance with 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, Shankars action can be termed as For Insurance industry which association to take steps to Develop Education and research in insurance? Pankaj being a license insurance advisor has to follow code of Conduct provided by: 1. Those values we commonly hold to be good and right. 1. Over selling of Insurance policies. 1. good 1. ethical 1. IRDA 1. Churning of the policy 1. Companys code of conduct. 1. Underselling of insurance policies. 1. Life Insurance Council

3.Hand written declaration 4.Verbal communication to by agent customer 3. expenses incurred per day multiplied by no. of days stay in the hospital 3. 20% 4. 100% of Sum Assured

4. 30%

1 1 3 3 1 2

3. If the agent has worked 4. If the agent is doing with the company for more than 3 policies in a more than 10 years month. 3. Risk 3. Certificate from Village Panchayat 3. 2013 3. Redirecting. 4. Uncertainty 4. Certificate from School or College 4. 2017 4. Shifting.

465 Ch 15

3. A study of what makes ones own actions right or 4. All of the above. wrong. 3. Explaining all details of 4. Churning. the policy to customer. 3. compulsory 4. appreciable 3. professional 3. Insurance Institute of India 3. Switching the policy 3. IRDA Regulations code of conduct. 4. Perfect. 4. Government of India. 4. Claiming the policy 4. Insurance Acts code of conduct.

4 3 2 2 1 1 3 3 1 1

466 Ch 15 467 Ch 15 468 Ch 15 469 Ch 15

470 Ch 15

471 ch 15 472 ch 15 473 Ch 15 474 Ch 15

3. Overselling of insurance 4. Ethical practice by an policies. adviser. 3. Insurance institute of India 3. Reserve Bank of India 4. Insurance Institute of India 4. SEBI.

1. Insurance Regulatory 2. Life Insurance Development Authority Company