Mock Test – 4

1. The Cash value component in traditional products is

A. Pre-planed
B. Well defined
C. Not well defined
D. Not pre-defined

2. Some common terms in health insurance

A. Inpatient
B. Out patient
C. Day care centre
D. All the above

3. Ajay had taken an insurance plan with critical illness rider (policy commencement date year 2007)
unfortunately he has diagnosed of critical illness. What will happen to his insurance policy now?
A. Policy contract continues even after the rider payment
B. Policy terminates after rider payment
C. Policy sum assured to the extent of rider payment
D. None of the above

4. What is the waiting period for hospitalization in a regular health insurance policy?
A. 12 hrs
B. 6 months
C. 30 days
D. 24 hrs

5. Amruta is pregnant. She has applied for a term insurance plan. Which of the below option will be the best
option to disclose for an underwriter to offer insurance to Amruta? Choose the most likely option.
A. Acceptance at ordinary rates
B. Acceptance with extra premium
C. Decline the proposal
D. Acceptance with a restrictive clause

6. Which among the following is not an objective of tax planning?

A. Maximum tax benefit
B. Reduced tax burden as a result of prudent investments
C. Tax evasion
D. Full advantage of tax breaks

7.-—-—--—-—-—-- refers to a hospital health care provider enlisted by an insurer to provide medical
services to an insured on payment by a cashless facility.
A. Day care centre
B. Network provider
C. TPA
D. Domiciliary

8. Which among the following options cannot be insured by Ramesh?

A. Rajesh’s house
B. Ramesh’s spouse
C. Ramesh’s friend
D. Ramesh’s parents

9. Non-forfeiture provision is special provision under Indian Insurance act

 A. Section 113
B. Section 38
C. Section 39
D. None of the above

10. Which plan leaves the policyholder with the satisfaction that he/she not lost anything in case he/she survives the
term.
A. Term insurance with return of premiums.
B. Cash return insurance plan
C. Pure endowment plan
D. Pure endowment with return of premiums

11. Keyman insurance indemnify incurred but compensates with fixed monetary sum as specified on the Insurance
policy.
A. Actual loss
B. Actual expenses
C. Early premiums
D. Fixed monetary sum as specify on the insurance policy

12. Mr.Rohit has already opted for Deferred Annuity however he wants to know how much amount can he
withdraw as lump sum before the start of annuity phase
A. Accumulated Value
B. Fund value
C. 1/3 of Fund Value
D. He can withdraw the entire amount if need be

13) Shankar bought 10 years ULIPs. If he dies before the maturity of the policy which of the below will be paid.
A. Lower of sum assured or fund value
B. Higher of sum assured or fund value
C. Premiums paid will be returned with 2% higher interest rate as compared to a bank’s savings deposit
D. Surrender value

14. Mr. Amit is nearing retirement, he has a lump sum amount to invest, he requires regular cash flow to help cover
basic living expenses, which type of plan Amit should purchases
A. Deferred Annuity
B. Money back annuity
C. Immediate annuity
D. Assured annuity

15. IRDA has decided to implement guidelines on persistency from

A. 1st July 2011
B. 1st July 2012
C. 1st July 2013
D. 1st July 2014

16. Includes preparing of budget, analyzing and income flow and predicting the future monthly income & expenses
A. Estate planning
B. Investment planning
C. Retirement planning
D. Cash planning

17. Component of premium are

A. Mortality & interest
B. Bonus loading
 C. Reserves & expenses of management
D. All the above

18. Family history does not involve any of these factors

A. Family’s residing environment
B. Average longevity of the family
C. Religion of the family
D. Family’s heredity

19. Which of the below statements is correct?

A. The prime purpose of insurance regulation is to protect the insurance companies
B. The prime purpose of insurance regulation is to protect the policyholder
C. The prime purpose of insurance regulation is to protect the insurance intermediaries
D. The prime purpose of insurance regulation is to protect the Government

20. Mr. Jay Singh is 50 years of age and wants a life insurance with high sum assured. Which additional documents
will be required to process the case?
A. Medical examination Reports
B. Pan Card
C. Bank Pass Book
D. Property Document

21. Rajesh had taken life insurance policy for Sum Assured of 1 Lakh for 20 yrs while returning home he met with a
road accident and died. His death claim was not settled as he did not disclose his age correctly. This is known as
breach of
A. Confederation
B. Insurable Interest
C. Offer and acceptance
D. Utmost Good Faith

22. A Life Assured is missing for the last 7 years, on which basis will the death claim be settled?
A. Court Declaration
B. Declaration by Nominee
C. Declaration by Agent
D. Declaration by Employer

23. Guiding principles for determining amount of loading are

A. Adequacy
B. Equity
C. Competitiveness
D. All of the above

24. Which of the below statement is correct with regards to the territorial jurisdiction of the Insurance
Ombudsman?
A. Insurance Ombudsman has National jurisdiction
B. Insurance Ombudsman has State jurisdiction
C. Insurance Ombudsman has District jurisdiction
D. Insurance Ombudsman operates only within the specified territorial limits

25. In Fire insurance if the proposer discloses the following information at the time of insurance contract - 1)
Construction of building & age, 2) nature of goods in building premises. Then as per the insurance contract which
information is he disclosing
A. Material Fact
B. Insurable Interest
 C. Proximate Clause
D. Contract of Adhesion

26. All of the following are characteristics of variable life insurance EXCEPT:
A. Flexible premium payments
B. Cash value is not guaranteed
C. Policy ‘owner selects where savings reserve is invested
D. Minimum Death benefit is guaranteed

27. Which plan leaves the policyholder with the satisfaction that he/she has not lost anything in case he/she survives
the term?
A. Term insurance with return of premiums.
B. Cash return insurance plan.
C. Pure Endowment Plan.
D. Pure Endowment with return of premiums.

28. Which is the prime cause of financial distress in financial planning?

A. Risk Tolerance
B. Unplanned
C. Time Horizon
D. Planned

29. Is a rise in the general level of prices of goods and services in an economy over a period of time.
A. Deflation
B. Inflation
C. Stagflation
D. Hyperinflation

30. Is a term used to refer pensions that have some level of Government administration?
A. Insurance Pension Fund
B. Public Pension Fund
C. Private Pension Fund
D. Market Pension Fund

31. Interest paid by the insurer for delay in claim settlement would be
A. 0.02
B. 2% above the bank rate
C. No Interest payable
D. 0.06

32. Which of the following is not a case of moral hazard

A. A proposal is submitted at a branch located far away place of residence of the proposed insured
B. A medical examination is done elsewhere even when a qualified medical examiner is available near one by
place of residence
C. A stuntman of a film offered high sum assured
D. When a proposal is made on another without having dear insurable interest

33. Rights & privileges which are applicable under the policy are given in
A. Specific policy provisions
B. Policy schedule
C. Standard provisions
D. None of the above
34 ------is the feature in which a health insurance policy holder can transfer his policy with gained credit and time
bound exclusion from one insurer to another.
A. Network Provider
B. Portability
C. TPA
D. Mediclaim

35. Mortgage redemption insurance (MRI) can be categorized under

A. Increasing term life assurance
B. Decreasing term life assurance
C. Variable life assurance
D. Universal life assurance

36. Who devised the concept of HLV?

A. Dr. Martin Luther King
B. Warren Buffet
C. Prof. Hubener
D. George Soros

37. Praveen died in a car accident. The beneficiary submits documents for death claim. Which of the below document
is an additional document required to be submitted in case of accidental death as compared to natural death.
A. Certificate of burial or cremation
B. Treating physician's certificate
C. Employer’s certificate
D. Inquest Report

38. Which forum has the jurisdiction to entertain complaints upto Rs 20 lacs.
A. District forum
B. State forum
C. National forum
D. Municipal forum

39.Life Insurers are required to maintain as a condition for writing the business
A. Goodwill
B. Market share
C. Statutory reserve
D. Credit notes

40_What are the sources of occupational hazards

A. Accident
B. Health Hazard
C. Moral Hazard
D. All of the above

41. An immensely valuable asset possessed by an human being which is also the source of his productive
earning capacity is called
A. Human Income
B. Human Life Value
C. Human Capital
D. Human Asset

42. Which of the following statement is correct?

A. Higher the mortality rate in the mortality table, higher the premiums would be
B. Higher the interest rate assumed, lower the premium
 C. None of the above
D. Premium would remain unaffected

43. Mortgage Redemption Insurance facilitate

A. Higher Mortgage Rate
B. Cheaper Mortgage Rate
C. Higher Interest Rate
D. Higher Profits

44. Which among the following is a wealth transactional product?

A. Bank Loans
B. Shares
C. Term Insurance Policy
D. Savings Bank Account

45. Miss Julie is an employee of the network 5 and works as a customer’s service executive there. Currently she is not
associated with any business loss, can company take a keyman insurance for Miss Julie
A. Yes the company can take key man insurance
B. No they cannot take key man insurance as she is not the key member
C. Some concessions Gin be mad e
D. Her designation does not qualify for the same

46. Ajay Singh is saving in an insurance policy since the past 4 years. Ever since he has purchased the policy for every
query he has to visit the branch, hence whenever he visits the branch he is irritated... What according to you is
missing in the client Advisor relationship
A. Mr. Singh’s Advisor is never present -when he needs him for a policy query
B. The Advisor has given incomplete information to the customer
C. Active listening from the Advisors missing
D. None of the above A Bank deposits

47. If a person is concentrating more on health plan and retirement plan then at which stage of life is he in.
A. Young unmarried
B. Young unmarried
C. Young married with Kids
D. Pre retirement

48. A policy holder needs to have a_____ to avail the benefit of cashless facility under Health insurance policy.
A. Employees ID aid
B. Identification card
C. Policy document
D. Smart Card

49. How many life insurance companies are operating in India currently?
A. 26
B. 23
C. 24
D. 20

50. Identify the form of insurance that is depicted in the following scenario.
Scenario: Patient pays the health provider and is subsequently reimbursed by the health insurance company.
A. Service Benefit
B. Direct marketing
C. Indemnity
D. Casualty
 Mock Test – 4
Answers
Sno ANS Sno ANS Sno ANS Sno ANS
1 B 16 B 31 B 46 A
2 D 17 D 32 A 47 D
3 A 18 C 33 C 48 D
4 C 19 B 34 B 49 C
5 D 20 A 35 B 50 C
6 C 21 D 36 C
7 B 22 A 37 D
8 C 23 D 38 A
9 A 24 D 39 C
10 A 25 A 40 A
11 D 26 C 41 B
12 C 27 A 42 A
13 B 28 B 43 B
14 A 29 B 44 B
15 D 30 B 45 B