1 Which of the following is not the element in a valid insurance contract?

a) Offer & acceptance

b) Capacity to contract
c) Consideration
d)Coercion
2 Multiple choices of investments have made financial planning important because
a) Each investment avenue has its own sets of risks attached to it
b) The family is not aware of all the investments avenue available
c) The family must always like to invest in guaranteed investment options
d) All of the above
3 Surrender value in case of _________ plans are much higher than ________ plans.
a) Traditional, Non traditional
b) Non Traditional, Traditional
c) Investment Linked, Non Traditional
d) Whole Life, Traditional
4 Choose the correct statement
a) Higher the rate of interest assumed, lower the premium
b) Higher the mortality rate in mortality table, higher the premium
c) Both of these
d) Either of these
5 During the ___________ period, if the policyholder has bought a policy and doesn’t want it, he/she
can return it and get a refund.
a) Free Evaluation
b) Free look
c) Cancellation
d) Free trail
6 The premium paid for whole life insurance is _______ than the premium paid for term assurance.
a) Higher
b) Lower
c) Equal
d) Substantially higher
7 How does the diversification reduce risks in financial market?
a) Collecting funds from multiple sources and investing them in one place
b) Investing fund across various asset classes
c) Maintaining time difference between investments
d) Investing in safe assets
8 Which among the following scenarios warrants insurance
a) The sole bread winner of a family might die untimely
b) A person may lose his wallet
c) Stock prices may fall drastically
d) a house may lose value due to natural wear and tear
9 Which of the following can be attributed to moral hazard?
a) Increased risky behavior following the purchase of insurance
b) Increased risky behavior prior to the purchase of insurance
c) Decreased risky behavior following the purchase of insurance
d) Engaging in criminal acts post being insured
10 Which among the following is a secondary burden of risk?
a) Business interruption cost
b) Goods damage cost
 c) Setting aside reserves as a provision for meeting potential losses in the future
d) Hospitalization costs as a result of heart attack
11 The district forum is empowered to send its order/ decree for execution to appropriate _______
a) Civil Court
b) Crimal Court
c) High Court
d) Supreme court
12 Provisions of which act governs all contracts in India including insurance contracts?
a) Insurance Act 1932
b) Indian contract Act 1872
c) IRDA Act 1999
d) Contract Act 1948
13 ___________ means the capacity to absorb losses while investing.
a) Liquidity
b) Marketability
c) Diversification
d) Risk tolerance
14 ___________ trend involves separation of protection and saving element and consequently the
development of products.
a) Transparency
b) Investment linkage
c) Unbundling
d) All of the above
15 What is surplus?
a) It is excess of value of assets over the liabilities
b) It is the same as sum of the values of assets
c) It is the same as sum of the values of liabilities
d) It is the same as bonus
16 If one losses or misplace a policy document, does it effect the contract?
a No, it doesn’t
b) Yes, it becomes voidable
c) No, not completely, but for the date of commencement and duration
d) Depending upon the conditions mentioned in the original policy document.
17 What are the correct pulse rate?
a) Lower value of 50 beats per minute
b) Higher value of 90 beats per minute
c) An average of 72 beats per minute
d) All of the above
18 The directorate general of health services is the principle advisory body to the union government in
which all matters
a) Medical and public health matters
b) Research and developments matters
c) Health & sanitation matters
d) Health and family welfare matters
19 In which policy cover may be provided to dependent insured under single policy with a separate sum
insured chosen for each insured person.
a) Top-up
b) Individual coverage
c) Family floater
 d) Family coverage
20 IRDAI has launched __________ which acts as a central repository of insurance grievance and for
monetary grievance redress in the industry.
a) IDMS
b) DOCM
c) IGMS
d) IMGS
21 Chose the correct statement
a) Insurer can appoint any principal agent/ chief agent/ special agent
b) No insurer shall appoint any corporate agent/ broker
c) No insurer shall appoint any designated officer to appoint agent
d) No insurer shall appoint any principal agent/ chief agent/ special agent.
22 Premium paid protection premium is
a) Reserves
b) Cash value element
c) Life fund
d) Any of the above
23 Participating policies participate in the profits of the
a) Insured
b) Agent
c) Intermediator
d) Life Insurer
24 Mortgage insurance policy is suggested for whom
a) People who have settled the loan
b) People whose dependents may need assistance in clearing their debt incase of unexpected death
of policyholder
c) People who have applied for loan
d) All of the above
25 What does PMLA stand for?
a) Parliament member legislative assembly
b) Prevention of money laundering act
c) Prevention of money lottery act
d) Protection and monitoring laundering activities
26 Who can make the nomination
a) Insurer
b) Policyholder
c) Assignee
d) Appointee
27 What is the role of an agent during claim processing
a) he will render all possible service to the nominee/ legal heir/ beneficiary
b) he will help in filling up the claim form accurately
c) he will assist in submitting the claim form and the accompanied documents to the insurance office
d) All of the above
28 ________ is important essential and relevant information for underwriting of the risks to be covered
by the insurer.
a) Policy term
b)Policy conditions
c) Material facts
d) Material information
29 Basic principles of underwriting are_______
a) Utmost good faith
b) Insurable Interest
c) Indemnity
d) all the above
30 ______________ provide the bread and butter of the business and no enterprise can afford to treat
them indifferently.
a) Customers
b) Employers
c) Employees
d) Stakeholders
31 Which of the following is not the example of material facts
a) Construction of building
b) Type of occupancy
c) Nature of good stored
d)Nature of employers
32 Mortality charges would be at least in which of the following.
a) A person in the age group 35-40
b) A person the age group 30-35
c) A person in the age group 21-25
d) A person in the age group 40-45
33 On which basis the benefit under the life insurance policy can be varied by the insured?
a) Changing need of the insured
b) Changing needs of insurer
c) Affordability
d) Only a & c
34 Key man is the term insurance policy where the sum insured is not linked to
a) Company' profitability
b) Key man own income
c) Business history
d) Only b & c
35 Bears the investment risk in case of ULIP.
a) Insurer
b) Policyholder
c) Government
d) IRDA
36 A policy may be said to be lapsed if the premiums have not been paid even during the ___________.
a) Grace Period
b) Term of policy
c) Free look period
d) Revival period
37 __________ is a demand the the insurer should make good the promise specified in the contract.
a) A contract
b) An agreement
c) A claim
d) A Notice
38 Out of the pocket expenditure incurred by the people in India on their health is _____________ than
other countries.
a) Lower
 b) Higher
c) Equal
d) Healthier
39 IRDAI issued guidelines on standardization of health insurance in which year?
a) 2014
b) 2012
c) 2013
d) 2010
40 Which is the oldest insurance company in India
a) The Oriental Insurance Company Ltd
b) National Insurance company Ltd
c) Bombay mutual assurance society ltd
d) Triton Insurance company ltd
41 An applicant seeking appointment as an insurance agent shall submit. To the designated officer of
insurer
a) Form 1a
b) Form 1b
c) Form 1 c
d) Form 1d
42 Financial planning deals with
a) Future financial goals
b) managing the portfolio to achieve the financial goal
c) current as well as the future needs
d) All of the above
43 Assumptions under traditional plans are
a) well defined
b) well organized
c) quite arbitrary
d) well calculated
44 The tabular rates of premium are known as
a) Standard rates'
b) Ordinary rates
c) Normal rates
d) Special rates
45 What are the purpose of underwriting
a) to prevent the anti selection against the insurer
b) to classify the risks and ensure equity among risks
c) to increase the number of customers
d) a & b
46 Why was Malhotra Committee set up in the year 1993?
a) to regulate the insurance companies
b) reintroduction of an element of competition among the companies
c) to explore and recommend changes for development of the industry
d) all the above
47 __________ after a product has been accorded file and use approval the appointed actuary shall
review the performance of health insurance products.
a) 3 Years
b) 5 Years
c) 7 Years
 d) 10 Years
48 What are the features of primary health centers (PHC)
a) It is a referral unit of six sub centers
b) PHS have been established for every 30000 population
c) All PHC provides outpatient serves and have 4 to 6 beds
d) all the above
49 Caveat emptor means
a) Buyer beware
b) Seller beware
c) Indemnity
d) Insured beware
50 Which are the types of assignments?
a) conditional assignment
b b) absolute assignment
c) Special assignment
d) a & b