Ic33 Print Out _660_english

Sr. No.1 2 3 4 5 6 7 8 9 10 Chap ter No 1 1 1 1 1 1 1 1 1 1 1 Question Sanjeev is an insurance expert who has rich experience in determining premium levels for product, what is his profile like The Non Government organizations(NGO) helps the insurance industry immensely in Investment by foreign direct investors in to Insurance co's is restricted to Which market does the Micro Insurance Concentrate on ? What facility do the insurer use to cover Risk beyond their Limits ? what is the max level under which micro insurance can be done Who is the customer of a Re insurer Insurance company transfers the insurance which cannot bear by them to What is the main objective of taking the life insurance policy What is the maximum sum assured under a micro insurance 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? Ans Option 1 an actuary Promotional activities 12% People with large families Re Insurance 5000 High Networth Individual Bancassurance Tax benefit 10000 Actuary Ans Option 2 loss adjuster Drafting new regulations 25% People with Low Income Banca assurance 25000 Insurance Companies Reinsurance Savings 25000 Underwriter The client represent the broker and the insurer remunerate the broker Life Insure Who work for customers Cashed in for investment into other assets Corporate agent Broker Insured Ans Option 3 risk manager Linking buyers and sellers 40% Government Employees NGO 50000 Licenced Insurance Agents TPAs Investment 50000 Claim Department Insurer represent both client and broker remuneration Reinsurer Intermediaries NA Bank NGO Policy Holder Ans Option 4 underwriter Linking third party administrators 26% people living in Metro cities RBI 1 lac Non Government Organisation Actuaries Protection 100000 Accounts Broker only service the client Any Insurer Who works for their own interest. NA Broker Bank Insured person to obtain loan as when required to meet financial obligations Interest yield and variable income Assured transactions 4. Company – Based Selling. 4. Health and Saving Insurance Markets 4. None of the above. 4. through internet 4. market values of assets 4. Death is the solution. 4. At the time when Advisor takes the decision 4. The life of the nominee 4. D. An authorized agent to act on behalf of the legal company 11 1 12 13 14 15 16 17 18 1 1 1 1 1 1 Insurance broker represent the client According to Insurance Brokers Association of India, what is the most and the insurer remunerate the broker appropriate relationship between Insurer and Broker? If a client needs Mediclaim to cover health insurance which insurer he Non life insurer needs to apply. Insurance agents are Any assets, which are no longer suitable or are earning fewer returns than expected, should be If a client wants to compare between all financial products then the best person he can approach is If the customer wants to seek information about all products, then he can avail the services of To identify suitable products their main features and their tax treatments is the role of: Who work only for insurance company Reviewed Individual agent Agent Agent 1 19 20 21 22 1 1 1 1 23 24 25 26 27 1 1 1 1 1 28 29 1 What is Bancassurance? 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.................. The timing of death is uncertain, so when one should take life insurance? Insurance Protects which of the following? The main purpose of buying an insurance policy normally is The basic elements of life insurance are: Transactions of sale of life insurance products to the insurable clients are viewed in the Insurance market mostly as A Professional insurance market carries….. Insurance Market divided into to develop the habit of savings to obtain Income Tax benefits for protection of financial security Accident benefit and riders. Sales transactions 1. Need – Based Selling 1. Endowment and Money Back Insurance 1. Giving insurance policies to Banks. 1. individual agents 1. physical values of assets 1. death is certain 1. At the time of uncertainty 1. The life of the person paying compensation 1. A legal person to act on behalf of the re-insurer Pension and monthly income. Relationship transactions 2. Product – Based Selling 2. Life and General (non-life) Insurance 2. Selling insurance policies through Banks. 2. bancassurance 2. economic values of assets 2. death is uncertain 2. At an early age 2. The risk retained person 's family 2. B.A legal person to act on behalf of the insurer Death cover and maturity benefit. Monetary transactions 3. Commission – Based Selling 3. Government and Private Insurance Markets 3. Giving guarantee to policies by Banks. 3. insurance brokers 3. metaphysical values of assets 3. the timing of death is uncertain 3. Anytime in life 3. The financial goal of the insured 3. C.A legal person to act on behalf of the contract 1 30 Agent who is a licensed intermediary is actually is ? 31 32 33 34 1 1 2 2 2 E-sales refers to sales of insurance products through Insurance business is classified into three main types: lung cancer and smoking . The type of risk that can be insured against is 1. Insurance brokers. 1. Life, Non –life, Micro Insurance. lung cancer is peril and smoking is moral hazard Speculative Risk The premium collected & deposited in a pool Economic risk Pure risk Calculate the premium Physical 2. Bancassurance. 2. Life, Non Life, Miscellaneous smoking is peril and lung cancer is hazard Pure Risk All similar risks are pooled together Speculative risk Financial risk Increase the profitability Moral 3. Individual agents. 3. Life, Non life, Re-insurance. Death is certain Pure & Speculative risk Premium is pool to make claims Financial risk Particular risk Ascertain the death ratio Occupation 4. Internet. 4.Life, Health, Micro Insurance Is occupational hazard Non Financial Risk Contribution of insurance company Insurable risk Physical hazard Declare the bonus NA Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout Randomness As per company policy 35 36 37 38 39 2 2 2 2 Pooling of risk in insurance means Pure risk is classified under The consequences of these risks which will affect specific individuals or local communities in nature is called as Law of Large number helps the insures to A person with a criminal background due to Financial fraud would come under which hazard 2 Perils are medical factors which Perils are risks that policyholders will die influence the risk of dying and hazards before a specified date and hazards are factors are lifestyle activities which influence which could influence that risk. the risk of dying. How are perils and hazards normally distinguished under term insurance policies? Law of large numbers is worked out by which of the following? With pooling of risks an insurance company pools the premium collected from several individuals to insure them against similar risks. At what circumstances will the insurance companies pool the risk of a life insurance and health insurance together? In life insurance industry which mechanism operates so as to enable the individuals to reduce the impact of risks Law of large numbers help in calculating the Which is the best option to manage risk? Vinay doesn‟t 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 ______ Insurance is a mechanism through which risk of an individual can normally be Perils are factors which affect the risk being insured and hazards are the size of the risk being insured. 40 41 2 Pooling of risk Maintaining insurable interest With utmost good faith 2 42 43 44 45 2 2 2 2 46 47 2 Under no circumstances Under conditions of the reinsurer As directed by actuary Pooling of risk severity of risk Retain Transfer Transfer of risk physical hazard Transfer Control Prevention of risk moral hazard Avoid Retaining Sharing of risk Probability of risk None Avoidance transferred prevented avoided reduced Peril is the event, Risk is the likely occurrence of the event and the Hazard increases the chances of happening of the event. the speculative risks 4. Only Non-life insurance 4. All of the above. 4. Pooling of Risk 4. All of the above. 4. Risk tolerance 4. A teacher working in a primary school. 4. mathematical data 2 In the context of Insurance terminology, how the meaning of „Peril‟, „Risk‟ and „Hazard‟ is best described? Pooling of risks is one of the fundamental principles of insurance where the Insurers pool the premium collected from Pooling of insurance applies to The “Risk” contains…. Grouping the similar risks by Insurance Company is called as…. The function of Insurance works on….. Mr. Mahesh is a software engineer. He has taken a term insurance for Rs. 30,000,00/- for 30 years. This is an example for----------------Which of the following can be an example of moral hazard? Life insurance the risk is determined on the basis of .......... Peril, Risk and Hazard are of the same meaning Peril is the event, Risk is the loss of event and Peril is the event, Risk is the cause of event Hazard is the wrongful even and the Hazard is an event of dangerous nature 48 49 50 51 52 53 2 2 2 2 2 2 54 2 55 56 2 all types of financial risks 1. all types insurance 1. Peril and Hazard 1. Grouping of Risk 1. Risk Transfer 1. Risk retention the homogeneous risks 2. All types of insurance except Motor insurance 2. Level 2. Risk Grading 2. Risk avoid 2. Risk transfer the heterogeneous risks 3. Only life insurance 3. Uncertainty 3. Risk Assessment 3. Risk retention. 3. Risk avoidance 1. a family history of heart disease 1. future data 2. a person working in a chemical factory 2. past data 3. a person consuming alcohol 3. statistical data 2 57 2 58 59 60 2 2 Which one of the following is possible in retaining the risk? On 6th August there was a typhoon. Mr.Augustin who had insurance died in typhoon. Now how will the insurance company will categories this particular risk ? Life insurance company determine the level of risk based on Ram works in a Fire cracker factory. He stocks the cracker in his house. He runs which type of risk. In Insurance terms, pooling of risk is 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 ... Harish takes a life insurance policy for Ramesh. Which of the following statement best describes the principle of Insurable Interest. what is the min age to enter into the contract of insurance In a whole life plan - The policyholider's responsibility to give disclosure 1. Retaining the ownership in the policy 2. Not possible as life has many risks. 3.Is possible by transferring risk to the policy holder 4.Is possible by Reinsuring oneself 4. Under the category of Risk Transfer 4. Targeted bonus rates. 4. Fundamental. 4. Using the same pool for paying claims of life insurance. 4. Sharing of Risk 4. Insurable Risk 4. Uncertinity 1. Under the category of Pure risk 2. Under the category of peril risk 3. Under the category of particular risk 1. Future expenses. 1. Speculative. 1. Using the same pool for paying claims of car & life insurance. 1. Pure Risk 1. Pure Risk. 1. Peril 2. Claim experiences. 2. Particular. 3. Present expenses. 3. Financial. 2 61 62 2 2 63 64 2 2. Using different pool for paying claims of life 3. Using the same pool for paying claims of life insurance. & house insurance. 2. Pooling of Risk 2. Particular Risk. 2. Hazard 3. Insuraable Risk 3. Financial Risk. 3. Physical hazards 3:1 65 66 3:1 67 3:1 3:1 68 69 3:1 Ramesh declares all his liabilities 16 at the beginning of the contract Every time premium is paid Principle of utmost good faith will operate in existing policy Both the parties to a contract must agree and understand the same thing and in the same sense which is called In case of life insurance, Insurable interest must exist Group Insurance can be taken in following relationship What amount of insurable interest does an individual have in his own life With reference to the principle of indemnity a life insurance policy is a. If Insurable interest does not exists at the time of inception of the life insurance policy then, life insurance contract is If a contract is signed by a 15 years old boy, this contract will be 1. If the employer has insurable interest in the life of an employee, what kind of policy is this? The concept of indemnity is based on the key principle that policyholders should be prevented from Employee has insurable interest in the life of their employer to the extent of Mr Rohan takes an insurance policy due to heavy Debt on his business with an intention of committing suicide. This is an example of the following Feature of a valid contract An insurer can invoke indisputability clause in case of death only in A proposer shows his age lesser than his actual age. This will be termed as Mr. Mehra wants to insure his wife. Previously his proposal was rejected by another company, but this time he submits the proposal form without showing this to a new company. This is In which type of insurance Insurable Interest exists at the time of claim? Harish suffers financial loss Ramesh is elder than Harish Ramesh owes money form Harish incase of death of Ramesh 18 20 21 beginning of through out the contract Revival stage renewal If the insured If the insured person falls sick and is admitted If the policy has lapsed and it has to be revived person changes his to hospital job Legality of an object Not needed Husband-wife 50,000 Indemnity contract. Invalid Invalid B. Keyman Insurance C. Consensus ad idem At the time of claim family members Up to the sum assured taken in the plan Value contract. Valid Voidable Partnership Insurance Acceptance Any time during the contract society members Unlimited Major life contract Null & voidable Valid D. Debtor Insurance Profiting from insurance. Till Gratuity Offer and acceptance NA NA Innocent misrepresentation of material facts Travel Insurance Emotional relationship between the Proposer and the Life assured NA Consideration At inception of policy employee- employer 20,000 Insurance contract. Voidable Null and void A. Surety insurance 3:1 70 71 3:1 72 73 3:1 3:1 3:1 74 75 3:1 76 77 78 3:1 3:1 3:1 3:1 79 80 81 3:1 3:1 3:1 82 83 3:1 Insuring existing losses. Yearly Salary Capacity to Contract Non payment of due premium Breach of utmost good faith Non-disclosure of material facts Liability Insurance Making false insurance claims. Monthly Salary Legality of object Breach of duty of disclosure of material facts Breach of trust Concealment of material facts Marine Insurance Paying excessively for insurance cover. Probation Period Capability of performance NA NA Fraudulent misrepresentation of material facts Motor Insurance 3:1 84 85 3:1 A proposal of life insurance is not accepted in the absence of Insurable interest which mainly depends on the Principle of utmost good faith is expected for max up to which stage blood relation between the Proposer and the Life assured Proximity of relationship between the Proposal and the Life assured Financial relationship between the Proposer and the Life assured Before the contract is concluded NA NA 3:1 86 A contract comes into existence when……… 1. One party makes an offer which the other party accepts unconditionally. 2. One party makes an offer which the other party put extra conditions. 4. One party makes 3. One party makes an offer where other party an offer which the gives counter offer. other party receives the offer. 3:1 87 88 89 90 91 3:1 3:1 3:1 3:1 Mr. Kumar‟s wife is suffering from blood cancer. Doctors lost their hope on her live. Mr. Kumar would like to take Life Insurance policy on wife‟s name in order to get monitory benefit. Insurance company rejects this proposal on the grounds of……. Under this situation may leads to breach of the duty of utmost good faith. The principle of utmost good faith is not applicable to Where do you not find insurable interest in the following options......... The principle of utmost good faith applies to........... 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? Mr.Karan who has to go to abroad for 6 months on an official work decides to leave his car with his friend Mr. Jim. What will be the validity of the insurable interest in this case ? Mr. Josh was filling the proposal form but as his mother was sitting beside him, even though he drinks and smokes he ticked “NO” in smoking & drinking column of proposal form. This indicates ? A contract exists between insurer and proposer when 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? 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 with his company for group policy claim, which was rejected. The reason for rejection is. Life Insurance also known as: 1. Anti Money Laundry 2. Legality of object or purpose 3. Capacity of paying future premiums. 4. All of the above 1. Non disclosure of material facts. 1. Facts of common knowledge 1. surety-co surety 1. only insurers 2. Concealment of a material fact 2. Facts of law 2. employee-employer 2. only proposer 3. Fraudulent misrepresentation of facts. 3. Facts those are not material. 3. husband-wife 3. both insurers and proposer 4. All of the above. 4. All of the above. 4. brother-sister 4. neither insures nor proposer 4. Offer and Acceptance in the contract 4. The insurable interest between the car and Jim is valid until Karan‟s return 4. He had done an innocent misrepresentation 4. An insurer has made another proposal. 4. Non-Disclosure. 3:1 92 1. Consideration in the contract 2. Capacity to contract 3. Consensus ad idem 3:1 93 3:1 94 3:1 95 3:1 96 1. The insurable interest between the car and jim is valid for 6 months 2. The insurable interest between the car and karan is valid for 6 months 3. The insurable interest between the car and karan is valid until he owns it 1. He has breached the non-disclosure 2. He has breached the company by concealing 3. He has breached the company by fraudulent of the fact the facts information 1. A proposal has been accepted by insurer. 2. A policy document has been stamped by insurer. 3. A policy document has been received by the policyholder. 1. Innocent misrepresentation. 2. Fraudulent misrepresentation. 3. Concealment. 3:1 97 98 3:1 1. Indemnity contract. 2. Value contract. 3. Deemed contract. 4. Rolling contract. 1. Value Contract. 1. Plan offer insurance coverage for two person in one policy 2. Indemnity 3. Commercial Contract 4. Speculative 4. A joint life policy may cover a partner in business under one policy. Only Non-life insurance 30 days from the date of receipt of the policy document Absolute & Conditional Financial assessment Agent accepts money Endorsement 3:1 99 100 3:1 Which option is not correct with regard to joint life insurance plan? 2. This plan is ideal for brother & sister. 3. Each life will be underwritten separately. Pooling of insurance applies to all types insurance 15 days from the date of receipt of the policy document Absolute SA Submission of proposal form Operative Clause All types of insurance except Motor insurance 20 days from the date of receipt of the policy document Term assignment Risk assessment FPR issued Preamble Only life insurance 25 days from the date of receipt of the policy document Conditional Identity verification Policy issued Proviso 3:1 101 102 103 104 105 3:2 3:2 3:2 3:2 The proposer can withdraw from the contract, if they disagree with the terms and conditions of the Policy, within a „free look-in period‟ of Types of assignment why does an insurer insist on age proof document . To assess Mr A submitted the proposal form . When will the risk begins for the company? The obligation of the insurer for the whole life policy is mentioned in Asvath is illiterate. He wants to take policy and surya is a friend of his 3:2 help him is answering questions and answers and also fills proposal . In addition to this requirement is 106 For Logging a Policy , a person gives Baptism CERTIFICATE & Ration Card . What is this ? To be a valid contract ,the declaration is necessary in which document Mr. ABC buying Term insurance policy, insurer should mention Ombudsman address in which part of policy document? Zainab takes insurance in the life of Jasmeet. Zainab will be called as Mr.Suresh dies one day before the grace period without paying the premium, what is th claim payable Loan is available for a policy in which there is a feature of Appointee's role how many nominees can be attached to a term insurance policy if a policy has two nominee mentioned what should be the Min allocation a Policy holder takes a insurance contract for 30 years and the SA reduces after 25 years what could be the likely reason A life insurance policy can only be made paid up if what particular policy feature exists? Reasons for surrender of the policy If a life insurance policy is issued with a lien, it will be mention in Available Loan amount under a life Insurance policy is generally based on If a customer has mentioned he is a drinker in the proposal form, the insurance company can exclude this hazard and mention it in which part of the policy document? 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 bonus accumulated and if not bonus accumulated? Whose signature is required on attestation of the policy? The mutual obligation of the parties is laid down in? The Insurance companies allow modification/alteration of the original policy documents through... 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? Asvath photograph asvath thump impression Only policy document need to be registered Left thumb Impressionof Asvath along with a declaration of his friend Baptism Certificate is Non Standard & Ration card is Standard Age Proof RPR schedule Trust Sum Assured less the latest premium Surrender when Nominee is Minor many No such conditions Its a Ulip Plan Savings element. Has Financial Problems Endorsement Paid up value Terms and Conditions 3:2 107 108 109 110 3:2 3:2 3:2 Both are Standard Age Proof Both are Non standard Age Proof Baptism Certificate is Standard & Ration Card is Non Standard Age Proof Policy Document operative clause Proposer No claims payable Fund switch Signature on the proposal one Each nominee to get Min 10% No bonus accumulated Indexing contribution. SA Proviso Total paid premium Provisio proposal form Preamble Nominee All premiums paid Savings Element Medical exams two Each Nominee to get Min 25% Age proof was substantially wrong Nomination facility. advisor induced Schedule Sum Assured Endorsements FPR Information statement Appointee Sum assured Partial withdrawal insurable interest three the first nominee should have more than second Policy has become paid up Rider benefits. no commission Terms & conditions Surrender value Operative clause 3:2 111 112 3:2 113 114 3:2 115 116 117 118 119 120 3:2 3:2 3:2 3:2 3:2 3:2 3:2 121 3:2 122 123 3:2 124 3:2 125 3:2 3:2 126 3:2 213333 & 273333 Agent Operative Clause Surrender Reinstatement Fee and Proof of continuing good health A‟s health was better than B 213333 & 229333 Policy holder Heading Paid Up Premium cheque and health declaration 229333 & 273333 Authorized officials of insurer Proviso Endorsement Only health certificate 229333 & 293333 Proposer Attestation Assignment Premium cheque with arrears A and B start their policies on the same date and surrender on 22 nd 3:2 anniversary of the policy. But A‟s surrender value is higher than B. the reason was ; 127 Which from the following would help best the underwriter to know 3:2 whether the proposer had applied previously and his application was rejected 128 3:2 129 A policyholder wants to change the nomination after 5 years of the policy. What would happen A‟s term was longer than B B‟s term was longer than A NA Medical reports Proposal form Policy document NA A simple application would do. He can‟t take loan from whole life policy but can avail loan from Money back policy NA 5000 Change not allowed Can be done through endorsement Can be done through an affidavit sworn in 3:2 130 131 3:2 3:2 132 Mr. Anil has a money back policy and a whole life policy. He is planning to take some loan from both the policies as he was regularly paying the premium. What is your suggestion? When does nomination get invalidated 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? He regularly pays premium so he can take loan from both the policies He can surrender whole life policy and can take loan from Money back policy He can‟t take loan from money back but can avail loan from Whole life policy On assignment 60000 If more than one person is nominated 75000 NA 100000 What can be the best solution from the following ? Payment of premium and sum assured are laid down in 1. His policy 1. Kumar can do received the policy bond. Number of premiums payable. because be he is not satisfied with the policy benefits. 2. He has recently shifted his home from New Delhi to Noida. Preamble. When cheque amount is deposited in insurer account. Mr. Heading of policy document. the proposal was not accepted.. 3. He can file a complaint against insurance company in court. Schedule. 3:2 138 Mr. as 15 days period is over Yes. 3:2 139 When an illiterate person wants to have a policy. 17 years old. Policy will be surrendered by the heir 4. as 20 days period is over Yes. 2. Moneys will be forfeited. Advertisements.3:2 133 Vijay received his policy bond on 11th June. Proviso of policy. NA 2. Endorsement. 3. In the absence of an essential ingredient of a valid contract. 4.1 lac to AB Insurance Co. Raj has taken a policy of 15 year term. 3. 2. Date the last premium will be paid 4. Policy will be surrendered by the insurer 1. Terms & Condition. He has paid premium for 10 years and now the policy is in force. as it is within 1 year No. He wants the address to be changed. Can he cancel or return the policy? Rohit. submitted a proposal for Endowment plan of Rs. 4.Shanth has taken an endowment policy of 15 years with ABC insurance company. 3. under this situation? 3. Shanth will not be granted any loan 1. When cheque is posted/couriered by the insure4. Date the policy matures Mr. Converting the policy to whole Life 4. Operative clause. Converting the policy to Term policy pay the premium. an impression of the left thumb is taken and the advisor has to attest it 3:2 140 Mr. Converting the policy to Paid up 3. 4. All of the above. 1.. First Premium Receipt is issued. Date of commencement of last premium 3. Converting the policy to money back 2. Nomination can be done either at the time the more than one person as nominees. The life insured can nominate one or 2. There is no concept of loan in insurance policy 3. 2011. He is unable to 1. 2. Proposal Form is signed. an impression of the left thumb is sufficient to sign on behalf of and need not be attested that illiterate person. Telephonic conversations. 3.Shwetha has taken a loan from her policy. But now unfortunately he has lost his job. NA 3. 1. A person having a policy on the life of another should make a nomination. Mr. Due to some personal problems he has decided to cancel the policy on 8th July. Now which of the following options will apply to him? Which of the following statement is not true in connection with nomination? 1. Number of year‟s premium paid. Sum Assured NA 4. But 1. Mr. He has paid the premium for 9 years. When insured writes a cheque in favor of insurer. Assignee cannot make fresh nomination in the policy 2. 4. Acquires paid up value. Conditional assignment and absolute assignment are one and the same. 4. He can not do any thing. Schedule of policy document. method and frequency of premium payment 3. 4.. This change in policy document will be effective through? Lalu Yadav is having a saving plan with 20 years tenure. Shanth can renew the policy 3. the policy may be renewed on different only on the terms and conditions approval of the insurer 3. In the 7th year he approaches the company to renew the policy. What Mr. He has paid premium for 4 years and he could not pay premium for 5th and 6th year. Which factor caused the insurer for non-acceptance of the proposal? A nomination is not required if What is the main source for insurance company to get information of proposer? What are the factors involved in calculating Surrender Value of the Policy? No. 2. What will happen to her policy? Which of the following information does not appear in the First Premium Receipt? 1. He can send back the policy document to 4. loans are allowed only in term plans 4. Kumar is taken one life insurance policy with ABC Company. Serve notice to insurance company with in 15 days from policy insurance company receiving date. 2. 3:2 142 3:2 143 3:2 144 3:2 145 3:2 146 147 3:2 Which of the following statements in correct in connection with assignment? Mr. Conducting interviews. Mr. 4. 1. 4. The policy will be renewed on the existing terms and conditions. He has paid 5 annual premiums but due to financial crisis is unable to make future premium. Shanth has taken an endowment policy of 20 years. Shanth cannot renew the policy 3:2 141 1. The section 39 of the Insurance Act 1938 speaks about the nomination. 3:2 148 3:2 149 3:2 150 3:2 151 An insurance contract commences when 1. Quotation is signed by proposer. 1. When is premium considered / deemed to be paid? Ram Lal is an insurance policyholder. At this point of time can Shanth take loan? Mrs.. When the cheque is deposited with insurer office. Proposal form. 4. Policy will be surrendered by the nominee 1. 2. Shanth can take loan which should be certain percentage of the surrender value of the policy. assignment. 2. policy is bought or later. 2011. Acquires surrender value. on policy benefits. Policy will be surrendered by the company 2. Policy Document is received by policyholder. The assignor need not be major at the time of 3. 2. A relative of the illiterate person has 3. . 4. an impression of the left thumb is taken and third party has to attest it 2. Later stage she neither paid back neither the loan nor she paid the premium for a very long time. 2. Section 45 of the insurance act speaks about assignment. 3. as it is within 3 months 3:2 134 135 3:2 136 137 3:2 3:2 Capability of performance Legality of object Capacity to contract Offer Policy is taken under joint life basis 1. Contract comes to an end. NA Compounding. Estimated life expectancy 8320 To verify the Plan proposed 15th Year Physical Hazard financial risk Agent Surrender Acceptance moral hazard report Occupational Hazard 2. Sum assured plus vested bonus minus any outstanding loan/premium & Interest. Loan Agreement 2. Nomination does not transfer the title while assignment does.Return of Premium on maturity 2. Nomination need not be informed but assignment needs to be informe4.if he took a Loan after 5th of commencement of policy and died before 2 year of 1. the one is take home salary and other is Annual premium of insurance product is Rs.00% 20 days of receiving the proposal Investment Will be considered as non standard age proof Decrease Reduces A Fradulent Claim Premium minus interest earning 5.what would be payable on maturity? While calculating Human life value (HLV) two components need to be Bank Fixed deposit rate kept in mind . 4. Lien Clause Assured by Pranab is not able to pay premium for continue his policy due to 1.Sum Assured + Bonus discount rate 8000 To Calculate the commission due for the agent 10th Year Occupational Hazard Moral Hazard Insuranc eCo Bonus Rejection Client confidentiality report Medical Hazard Premium plus interest earning Net premium is equal to Where annually increasing flexible premiums operate under a life insurance policy. When an individual gets older. Loan assignment agreement Of when Loan is fully paid.What type of Risk this will be categorized Into ? Mr A wants insurance cover .50% 15 days of receiving the proposal Loading Will be considered as standard age proof It is higher Increases A policy Assignment Risk premium plus interest earning 3.persist ency Bonus is paid at the end of While Underwriting Mr X proposal . 2. increments in salary what is also to be taken in to account? The correct cover needed to compensate Emotion Loss can be compensated for economical loss to their family in case of death of the earning member Inflation.? Ajay has bought an endowment with profit plan for 20 year . Payment of Premium by Life assured & payment of Sum 1. no of years of work. But he is drinks alcohol frequently . 4. Schedule of Policy 4.10 lac. only Sum assured Maturity . policy title will be revert back to name of Manish is called: Which clause lays down the mutual obligation of the parties regarding.00% 25 days of receiving the proposal Frequency Will not be accepted Slightly higher Remains same A steep rise in inflation A lump sum amount that the person will get from the insurance company Discount rate HLV is used as a Yardstick to determine While calculating HLV along with future income. Absoulte Assignment 4. 4% loading on 7680 Quarterly mode of payment What is the quarterly premium? why ACR In a 20 year with profit policy. 4.3:2 152 3:2 153 3:2 154 3:2 155 3:2 156 157 158 4 4 4 159 160 4 4 161 162 163 164 165 166 4 4 4 4 4 4 167 4 168 169 4 4 170 171 172 173 174 4 4 4 4 4 175 4 176 4 177 How assignment distinguishes itself from nomination? 1. what Option he has to convert ………. In to paid up and reduced Sum some Financial problem. Assured would be payable on maturity. what rate of increase will generally apply The regulations issued by the IRDA. Nomination is made after policy is issued while assignment is done before it is issued. Proviso Clause 3.10 lac as a security with the 1. its found that there has been CRIMINAL case against him in Fraudulent act . 3. so he rather than surrendering the policy. Deduct the underpaid premium from Sum assured and payable on Maturity 3. Policy was subject to lien. Conditional Assignment 3. Estimated amount at retirement 8500 To help the underwriter to asses the Risk 20th Year Moral Hazard Pure risk Actuary Accidental death Time barred medical report Physical Hazard Risk premium minus interest earning 7. Nomination transfers the title while assignment does not. Interest. 32. chances of obtaining life and health protection will be What key event is most likely to prevent insurer from ensuring that each insured person brings a fair premium to the pool for the risk presented? 2.50% 30 days of receiving the proposal NA NA Slightly lower Depends on insurer A sudden illness Manish took a loan from Pankaj of Rs. require that the decision on the proposal must be conveyed to the proposer within If bonus is given under a plan the additional premium added is known as Certificate from the village panchayat What will be lien amount in 3rd year as compared to the 4th year of lien. what is the risk assessed To calculate Premium 1st Year Fraudulent Hazard Physical hazard Underwriter Lien Clause HLV report Moral Hazard 2. Paid up value only. . Opertaive Clause 3. What kind of hazard you may categorize? Who IS the primary underwriter of the customer? Claim was settled however full Sum assured not paid though the policy was in force due to Lien can be considered an alternative of which of the following what is the special report that is asked by the underwriter from the officer of the insurer As per the norms of risk assessment by U/W both the parents of a policy holder died in their early 30s due to Heart disease.000. Pankaj transferred his Insurance policy to Manish of Rs. the underwriter should ask Physical Hazard beyond agent‟s confidential report. Ethical hazard. what is bonus amount? The underwriter can get the required information about the proposer in. Present value of previous earnings.. Main Underwriter 3. 2500/- 2.. 4. Discount rate 4. which is the most common factor that is likely to exist throughout the life span of an individual? While calculating HLV along with future income.. 2. the details relating to the previous subject application. physical hazard 2.. Kunal used to participate in Car race.. Income replacement methods equates Human Life Value (HLV) to Agent will be called as…. Compounding. 1. 2.. the risk associated might be general . the risk associated might not be harmful 4.. 4. What are different should be the reasons for this difference? Sum assured Compound reversionary bonus of 4 % will be calculated on A lien is generally used as a substitute to charging In a process of completion of an insurance proposal. Present value of future earnings.. the risk associated might increase 2. mental hazard 3.. Mr.. Mr. While taking up the Insurance policy he disclosed this information.. 5000/- 1. 250000/- 1. which have been accepted as non-standard. Company declared 5% Simple Reversionary bonus. moral hazard 1. annual report 4. Rajesh has taken policy from ABC insurance company for Rs. Medical and Personal History of Proposer... Risk profile of both the policyholder The commission of one of the policy is more than the other. What will be most possible reason? Mr. an agent finds that the intention of the proposer was not genuine. So he is exposed to.000 premium per year.. 3. no of years of work.4 178 4 179 180 181 4 4 4 182 4 183 184 4 4 185 4 186 4 187 188 4 Vishal and sandeep applied for a health plan in XYZ Life Insurance Sandeep has taken another policy from Company. 3. Primary Underwriter 2. Rs. Ramesh works in a mining company. Sum assured minus bonuses paid till date NA Inform the insurer Age of both the candidate are different Sum assured plus bonus till date for reduction in sum assured Issue a wrong note Premiums paid till date NA Refuse to proceed Quotation Request Form Proposal Form Policy Document Claim Form A clause 20 times annual salary To see that the proposal is accepted by the underwriter at OR A Lien 500000 To ensure that his client is not burdened with extra premium A Loading 1500000 To give truthful report to the Insurer all about the life to be insured Level Premium 4000000 To see that the plan as proposed by the client is not changed on underwriting Present value of the future earnings less personal expenses is the HLV of the proposer 4 189 What role an agent is likely to play in the process of underwriting? 4 In insurance. the underwriter felt that the risk associated with the person would decrease with time. Rs. Intentions and attitude of Proposer. Occupation and Residence of Proposer. What kind of hazard Physical hazard does it refers to If the sum assured remains the same. How the meaning of HLV can best be described in relation to a income earning proposer? Out of all the factors that affect the needs of different life stages of an individual.. 1. Information Underwriter. In a case.. the risk associated might decrease 3. In this case what should the agent do? The documents likely to provide the underwriter of an insurance company. Sum assured is the HLV of the proposer Yearly income is the HLV of the proposer Difference between the Assets and Liabilities is the HLV of the proposer 190 4 191 4 192 4 193 4 194 195 4 Employment Age Marital Status Liability 1. brochure 3. 4. what will be impact of net It rises premium if the age of the policyholder increases For which of the following reasons. He declares the commission to each of them.. Interest.. HLV is a known abbreviated term. Lien is imposed on a policy when underwriter feels that.. renewal receipt 2. Rs.. 25000/- 3. Rs. Future value of Present earnings. Future value of previous earnings. then he would accept the case with Maximum Life cover a high premium for a high risk Contact the Regulators Vishal is older than Sandeep Sandeep is earning more then Vishal Vishal is working in a MNC Fraudulent representation It falls Moral Hazard Moral hazard It remains constant SA is too high One has chosen Single premium policy and other has chosen regular premium policy Peril Gross premiums increases Pure Risk Both have chosen different kind of policies. 500000 Sum Assured by paying Rs. Proposal form. Inflation. An insurance agent sold two policies to two different persons having the same policy term. 3. Vishal is asked to undergo a medical checkup but Sandeep XYZ Life Insurance Company is not asked to do so. Chief Underwriter. 1. increments in salary what is also to be taken in to account? Moral Hazard reflects the ……... 4.. 2. 50. 4. Habits and Hobbies of Proposer. 4 196 197 198 4 4 4 199 1.. Proof of Income tax payer 4.at the later stage of the life Higher than the average risk.who is concerned person to do! ACR better than average risk. Standard Age proof 2. what will be the lien period 5 A gave an offer to B and B made changes to the same and returned it modified acceptance to A.there is possibility of An underwriter accepts the proposal with certain modified terms and coditions. 4. Underwriter 3. No underwriting Postpontment Investment expenses Higher than the average risk at the later stage of life 4 202 4 203 204 205 4 4 1. Level Premium. Net Premium 4. Lien. Financial Inspection agencies 1. Credit worth inspection agencies 3. Tables of details of actuarial calculation on death 4. 4. Actuary who analysis the risk 4. Tables of details of various probabilities of death 2. so insurance can be given 2. Risk Premium. Physical Hazard Lien Mortality 2. The financial history of his family 3.Santhosh working as a head master who is around 52 years had requested for an Insurance cover for Rs. Medical of examination report 4. as coverage is high and brother‟s son is the nominee 1.the risk will classified as per underwriting standards Sarath is the client and looking for large SA. Physical hazard. The income that he earns 4 206 207 208 209 When an underwriter may consider Moral Hazard? 1. It will be called Hari wants a constant life cover till his 31st birthday. He can take insurance after submitting health certificate Mr. 4. Loading of Premium. Insurance agent 3. as he is old 2. Human Life Value 4. Cannot give insurance for health reason 4. But he cant afford to pay high premiums. 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? 4. Moral hazard. He insisted that his brother‟s son should be the nominee not his wife. Assignment. Compound Revisionary bonus 2. 3. 1. Major Possible Loss. as he is a head master and 52 years old 4. Specialized inspection agencies 2. Simple Revisionary bonus 1. 2. The Company will accept or reject the proposal only after confirming from one of the following agencies. Maximum Possible Loss. Moral hazard. What is your suggestion? Mr. Guptha is recently detected with lung cancer. 1.at the early stage Sarath nominee Superior of the Sarth's insurance agent If a person have motoring sport as hobby before taking insurance Moral hazard is Sport and it influence policy. neighbor of proposer 210 211 212 4 4 4 213 4 214 215 216 4 4 1. Only lung is affected so health insurance can be given. Classification of Risk Department 2. Tables of details of underwriter‟s calculation on death 3. Level Premium 2. Moral Hazard Counter offer Admin expenses 3. 3. Risk Premium 3. 3.What it denotes Loading in a term plan is more likely beacause of Morbidity 3. 4 4 4 4 Level Premium is calculated based on MPL abbreviates What is generally considered as a substitute to charging a high premium for a high risk? Jyoti is submitting is copy of permanents account number card as age proof for buying an money back plan . He would like to take an insurance. Gross Premium 1. Minor Possible Loss. Tables of death occurring in various circumstances 1. Risk Analysis Department 1.1 crore. 1. The best suited products for him would Pure Endowment be At the time of maturity . D. 2. Moral hazard. Clause. C. A . Insurance is taken out by an individual with dependents.then what it implicates the risk of life If a policy of term 30yrs is imposed with lien. Net Premium. Insurance Investigation Agencies 4. A medical checkup is carried out nearby place of residence. Non Standard Age Proof 1. 4. Proposal Form 2. B.at the early stage of life better than the average risk . and the proposal to be certified in the context of confidentiality report with relavent to moral hazard.4 200 4 201 What does the mortality tables contains ? 1. as he is 52 years old and wife is not the nominee 3. 2. quarter of the SA is paid though the policy Endowment was in force Weekly premiums are generally collected for which type/range of Banca assurance palns motoring sport is risk and influences moral hazard 10 Counter offer Anticipated endowment Lien Health plans motoring sport is risk and influences physical hazard 15 Rectified offer term plan Money back Micro Insurance Insurance company motoring sport is a physical hazard and it influences risk 20 Rectified Acceptance ULIP Surrender Term Insurance . Time of death is uncertain. Underwriter will verify this case for which one of the following: Mr. Minimum Possible Loss. Medical Decline 4 217 4 218 4 219 220 221 4 4 5 222 223 224 5 5 In case of lien.her age consider as a 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 ten 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 . 2. Interim bonus 4. 3. 1. A nominee is not a dependent. an Address proof 3.Feroz has applied for an insurance cover of Rs. An individual is proposing SA 15 times his annual income. The occupation of the person 2. Gross Premium. Persistency Bonus 3.4 crores. .. Under which policy he will get these benefits Prashant buys an Endowment Plan with a sum assured of Re.. in case of Client pays the premium of 5000/. The income of an individual can be protected with the help of. In a child plan: Which tax rate is applicable.50 lacs Joint life policy Has physical ailment NA NA Policy was lapsed on the time of maturity Whole of Life Medical history of group Ulip He has switched his fund He has opted for Settlement option He has redirected his past premium Endowment Group lifestyle Endowment plan Term Employees ROP plan Money Back Age of the group Whole life plan Less than 10000 1 lakh 6% and 10% More than 10000 1. Which one will be the best plan? What is the minimum Sum Assured allowed for Micro Insurance? Children Plan Nil 500000 Retirement Plan 10% 50000 Ulip Plan 20% 100000 Term Insurance 30% 300000 95% on Life Insurance Premium & 5% on PPF Tax fully exempted 226 227 5 5 228 5 229 5 230 231 5 5 232 5 233 5 234 5 235 236 5 5 237 5 238 239 240 5 5 Life Insurance Premium PPF 50% on each Fully taxable 10% 20% ULIP fund switching 1 lac Term partial with drawl 3 lacs Money Back premium holiday 2 lacs Health riders 1.children education What tax rate. Kartik got a job recently. 3. 100000 and wants to make use of tax benefit under the policy for whole SA. The agent can use the benefit illustration document to show the client the projected growth of investment at the rate of – Suresh has adequate reserve capital with him and he wishes to protect his income.if any. what will be the tax implication on his maturity amount without submitting any form of claim. How much premium would help him avail this benefit What is the ceiling of tax exemption under 80 c. Low Returns 2. Only Tax Benefit. which of the following information is the most critical Term Insurance Plan will give…..per annum for his ULIP policy. 4. he can‟t 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.000 and what could be the max tax efficiency he is entitles to Ram has Invested Rs 5000 in PPF & Rs 1 Lakh in Life insurance premium . Only Death Benefit. Moderate Returns 3. 2. during his absence 2.and suffers illness before maturity? For assessing the risk of a group health insurance policy.will be applicable to a life insurance policy holder for the maturity proceeds of a Rs 5000 life insurance policy A policy holder can pay the premium of Rs 5. Group lifestyle 1. 10000 On vesting date policy has to be assigned to the life assured.225 5 5 Mr A is planning to invest and his needs are :1 Protection for is Income .. an endowment policy Pick the wrong answer. Only Maturity Benefit. Nil 1. 1. a term life policy 15000 After vesting the contract is between the insurer and the life assured. 2. In which he will get maximum Tax Benefit Mr. What should be the SA in case he wants to avail the tax benefits Suresh is suffering from Asthma and the policy in been done on joint life basis and the need for nomination under the plan is less as After maturity In a Unit Linked Life Insurance Policy. 10% 2. What type of policy is this ? For assessing the risk of a group health insurance policy. 30% 4. Low risk products give…. 3.. 20% 3. which of the following information is the most critical 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.00..Sumesh takes a policy and pays premium of 20000 with a sum assured of 300000. 4. a money back policy 5 243 244 5 5 245 246 247 248 249 250 5 5 5 5 5 Convertible Endowment plan Convertible Term plan Convertible pure Endowment 5000 Deferred date is a policy anniversary. Good Returns 4. a unit linked policy . customer does not get received Maturity in a lump sum. Medical history of group 4. Only Bonus Benefit.. 1.a life insurance policy holder received payments of survival then what type of policy he is holding what is the special feature of ulip that ensures customer risk profile for long time insurance policies Kamal is willing to pay 60000/. moreover he feels that if he does not die then he would need the amount. Employees 2. What type of plan should he opt for? Frequent switching is not advisable in ULIP plan because it increase Mr. Age of the group 3.5 lakhs 5% and 10% Less than 20000 2 lakhs 6% and 12% More than 20000 3 lakhs 5% and 12% 5 241 242 5 Term Insurance Plan Endowment plan Return of premium plan Pension plan Investment Risk Risk of death Uncertainty of return Chances of lapse Convertible money back plan 20000 Deferred date is date on which the risk commences. What is the possibility of receiving it in installments if it is not a annuity plan A customer gets periodic benefits without any claim and then when he dies during the term of the policy.. High Returns 1. his nominees gets the sum insured. where should he look for Investing other than FD RBI increased interest rates 2 times then the stock prices A person Wants to invest in a FD for Tax benefit . Term Plan.251 252 5 5 5 Mr. 1. Employee & Insurer Go for a low investment tranchee Equities volatile 3 Year 28000 Remain Constant 50-100 gms interest rates Internet Interest tax same efficiency for both 100000 Reduce his encasement for next six months Stable income Cumulative deposits Half Yearly Discounted Value with persistency bonus Interest rate 4. Term & Annuity Plan he would like to avail Loan from: In Group insurance plans contract of insurance between …………? The best way to overcome the problem of investment decision depends mainly on peer influence is A person who has a temporary job Loss . He can take Business Partner insurance 2.in relation to access. 2. A person is holding 100 GOLD ETF certificates . 3. What type of plan is SSS? Manmohan has recently purchased a house worth ` 50..000.he is ideally looking for With this type of deposit the bank pays the principal and the total interest at the end of the term In Cumulative bank deposit the interest that in normally compounded on what basis 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.. He can take Key man Insurance 3. Salary insurance plan 3.. 75. Not a specific plan 2. Master Policy holder & insurer By Canvassing wide peer group Debt Funds of MF increase 5 year 20000 Increase gradually 10. Creditors & Debtors Postponement of investment decision Gold same 2 Year 32000 Change as per market fluctuation 10 gms tenure Mutual Fund Office Tenure Both do not give tax benefits 200000 Insurance against Uncertainties Savings income Term Deposits Annually Principle with persistency bonus Market Risk His investment would be deducted from taxable income 10% Liquidity Regularly for fixed period of time 253 254 5 5 255 256 257 258 5 5 5 6 259 260 261 262 263 6 6 6 6 6 264 265 266 267 268 269 270 271 272 273 274 6 6 6 6 6 6 6 6 6 6 6 275 276 6 6 277 278 279 6 6 6 280 An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. Its the impact in his taxation If a policy with premium of Rs 5000 has matured. Whole Life Plan. Annuity Plan 4. Fixed deposits 1. when he dies 1. how much will be deducted when the maturity claim arises When a person is investing in Debt Mutual Fund. Which insurance product you as an adviser will suggest? To avail the income tax benefit at investment stage. He Can take company insurance 4. The interest rate was set at 6%... 1. Money Back Plan 3. 2. 4. It can be paid to him. when he loses his job 4. He can take Surety insurance 1. Salary Specific plan 4.000 on loan. Money Back Plan.. Shanth has got a pure endowment policy for 30 years for the sum assured of Rs.20 gms Taxation Insurance Branch frequency of interest calculation in ULIP policy 50000 not hedge against Inflation Equity return Traditional deposits Monthly Discounted Value Administrative charge 2. Endowment plans 4. what can be the reason 1. Money back.00/-. If his net return is 3%. Endowment Plan 1. 00. when he survives the term 2.difference will be in A policy holder pays identical premium amount for ULIP and EPF where he gets max tax efficiency Investing in ULIP plans exempts a maximum up to what limit for Income Tax Suresh wants to transfer his physical gold to gold exchange traded fund. Term Insurance 3. 4. How many grams of GOLD does he Have ? A customer while investing in to Recurring deposit or Cumulative deposit what are the key factors which will matter A person planning to invest in Kisan Vikas Patra will go to If a person chooses Cumulative deposit than Recurring deposit . when he is hospitalized 3.. Employer & Employee Seeking professional advise Govt Securities decrease 4 year 24000 Decrease gradually 20. 40% of SA. Salary saving Life plan 1. Varun who own a multi chain company would like to take an insurance. Unit linked Insurance plans 2. 3. Mr. What will be the effect of rate in going years. Endowment Plan.. premium should be maximum Rakesh has bought an Endowment. what is the primary objective Payment/Investments in Kishan Vikash Patra under post office schemes He will get tax benefit up to 5000 He will get tax benefit up to 25% He will get a reduction in tax slab Nil Good Returns Regularly with no fixed term 1% Regular Income Lump Sum with no fixed term 5% Safety Lump Sum for fixed period of time . 10% of S1. What will he get? Anand received post taxation 5% return on his fixed deposit in a bank.000 what as a best practice should be the maximum EMI Ramesh has invested in Post office Monthly Income Scheme. 30% of SA.this change will An Investor has invested in Debt mutual fund.50 gms frequency of payment Post Office Tax in EPF 75000 Decrease his liquidity Fixed Income Recurring deposits Quarterly Principle amount Inflation 3. Term Plan 2. How many years he has to take the term of the FD ? aditya wants to take home loan and his monthly take home is 80. 20% of SA. What will be the best option for him from the following ? Mr. Flexibility like partial withdrawal and taking premium holidays is possible with. Kumar decides that his employees should have SSS scheme. . 00. Shares 3. Capital Benefit 3. Inflation only. His investment may be in. what can be the reason Who will maintain Mutual Fund Schemes? Which is the primary saving need among all saving needs? Mr. 3.The result directly reflect Commutation Option the which feature available with this policy what frequencies can one take annuity monthly.yearly Look in period Mutual Fund KVP Taxation Open Market option Yearly Only Guaranteed period option fortnightly. call centers 6 296 297 298 299 300 301 302 303 304 6 6 6 6 6 6 6 6 6 305 6 306 307 308 6 6 7 309 310 7 1.What had happened to his share? Which of the following can‟t 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? The savings needs of a particular individual is majorly determined by For his investment need. 3. Sheela received some amount out of her husband‟s death. Infrastructure Bonds 4. 2. the annual bonus amount 3. Current assets. He has been informed clearly about the tenure. He would like to get some returns from this money in these 9 months period. Life Insurance 2. Contingency/ Emergency Fund. 4.due to what implication ? Investment Frequency Omkar Started a pension policy with provider A but ended up in taking the annuity payment from provider B. Insurance 2. 4. 2.. What is the best option to park his money? The disposable income means. 2. Interest rate 3. Suresh wants to transfer his physical gold to gold exchange traded fund.281 282 283 284 285 286 287 288 289 290 6 6 6 6 6 6 6 6 6 6 6 What is the similarity between Recurring Deposits & cumulative deposits in a bank Mrs. Traditional Deposit Fixed Deposit Interest Rate Differed Annuity Option fortnightly. Purchasing House Tenure Investment management Debt mutual fund Purity Reduce his ability to encash for next six months Increased Quarterly NA NA 3. the sum of one's all investment 4. Inflation 2.110 and he sold when it was Rs.. Market Risk 4.Cumlative deposit 3. 10. Capital Profit 2. Risk Sharing insurance 4. Capital Appreciation 1.Mutual Fund 3. Life Insurance co. 3. Bombay Share exchange 1. Mutual Funds. 4. 4. Agent advises him to keep it in equity based mutual fund. Ravi has parked funds in equity. this change will A client has his investment in equity shares. yearly . the surplus amount that can be invested 1. Moderate Risk. Shares 3. No Risk. Post office 2. through internet 3.. Corporate Bond taxable income In which of the following Bank pays the Interest on the deposit‟s fund on monthly /quarterly /half yearly/ yearly basis as chosen by 1.half yearly. 1. through individual agents 2. Pension Funds 1.monthly . an individual should make provisions for Time deposit account is issued by: Guarantees Savings Equity market Liquidity Increase his liquidity Diversified Monthly Monthly Prinipal amount 1. 2... If his net return is 3%. This will make the risk Bank interest is accumulated Bank savings account earn cumulative interest at what frequency If I invest in a G sec partway(ignore periodic interest payments). High Risk. The returns from this form of investment can be categorized as While calculating the expected returns from investments and savings.quarterly. 3.monthly. Duration of investment. Interest paid on education loan 4. Public Provident Fund 2.630.. The concept of Risk diversification is applicable in which of the following instrument ? Ajay bought a share for Rs. Administrative charge 1.000 cash with him. 1. Saving Deposit depositor fund: Sanjeev in a lumsum investment is getting benefit of multiple securities Bonds If the client prefers bank fixed deposit rather than cumulative deposit . Taxation only. Fixed Deposit 1. Rajgopal has invested some money. Infrastructure Bond 3. Employee Gratuity Fund 3. Mutual Fund Management Systems. Bank deposits 4. Health Insurance Pankaj want to save tax over and above the deduction allowed under section 80C of the income tax act 1961. Mutual Fund 1. Mutual Fund Management Societies 1. Asset Management Companies. Risk Diversified Insurance 2. Which of the following ways is easier for a person to take a saving product? Mr. No provision is require4. Current liabilities. Low Risk.half yearly. Mutual fund 3. Lock in periods Planning for pension FD More conversion value Create a future exit liability NA Once in 6 months NA NA 4. Shares 4. 291 292 6 6 293 6 294 295 6 1. He would like to use this amount for his daughter‟s marriage which is going to happen with in Nine months.I will get on Maturity Anand received post taxation 5% return on his fixed deposit in a bank. Stock brokers 3. Investment. Amount of disposable income. 1. Share brokers 4. Rao has Rs. corporate agents 4. Bombay Stock exchange 2. Capital Variation 4. Taxation & inflation both. 2.. Asset Maintenance Company Limite4. 1. 4.quarterly.Bank 2. which allow deduction from 1. In such a situation what will be her prime focus? 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. Fixed Deposit in Bank 4. Insurance Taxation Insurance ULIP More gold in value Decrease his liquidity Lessened Yearly NA NA 2. interest rate and method of payment of interest at the inception of the investment itself. the amount that can be paid towards one's EMIs 2.in relation to access.. he is not sure of how much sum assured he needs to take for ADB rider.311 312 313 314 315 316 7 7 7 7 7 7 7 All ULIP pension plans have to give how much percentage as Guaranteed returns Yash wants to take open market option in Pension plan. the policy holder will get annuity till 6% To save tax 25% annuity Age discrepancy cash encashment Only Danny 9% To switch the underlying fund 50% joint life policy Pre existing illness discount in the next premium Danny & his Wife 4. Sharma buy term insurance policy along with Accident and Disability benefits rider cost restricted upto the base premium of the policy? Mr.His children 10% To continue life cover 33% policy of another person premium certain policy exclusions Danny's family and his parents On the expenses incurred daily due to critical illness 15% New critical Illness Rider has to be added to base Policy 4 Lac 50% 20% premium payment term 40% of the premium on the base policy Rider is like Preamble Only surgery expenses are included in daily hospitalization benefi No change in policy Children Only Only Hospital bill will be paid 40% of base policy premium NA NA Lump sum amount what he has incurred Need to switch to the another insurer Nonlife and life respectively. Vesting age 317 7 318 319 7 Fixed amt daily one sixth SA one third Amt for particular diseases daily 25% 7 320 321 7 7 322 323 324 7 7 7 325 7 326 Reduced the the base SA terminated continues as it is 1 Lac 20% 33% entire life term 10% of the premium on the base policy 2 Lac 30% Pension plan is not eligible for tax exemption till 5 years and continue till annuitant lives 20% of the premium on the base policy 3 Lac 40% 100% annuity only for 5 years 30% of the premium on the base policy The Premium on all riders put together should not exceed How riders will help the customer in life insurance allows policyholders to customize their insurance cover with additional benefits The daily amount paid is fixed and will never be more or less than the cost of actual treatment CI benefit will cease All members of a Family Entire charges are refunded 15% of base policy premium 10% of the sum assured Needs to take expert‟s suggestion Number of days admitted in hospital & surgery expenses in full Need to spend and Get claim from the insurer Life and non life respectively Insurance coverage Rider is like a clause Operative clause 7 327 328 329 330 331 332 7 7 7 7 7 7 333 7 334 7 335 336 337 7 7 In Daily hospitalization cash benefit scheme The insurance company may pay an additional amount on a daily basis if the insured is admitted to the Intensive Care Unit (ICU) CI benefit reduced from existing sum assured Husband and Wife only Entire charges less bed charges will be paid 25% of base policy premium Specified amount multiplied by the number of days the policyholder is hospitalized Equal to base cover Number of days admitted in hospital & surgery expenses in partial Need to add that hospital as TPA Both life insurance Annuity part The insurance company will pay for doctor consultation fees incurred prior to hospitalization CI benefit continues Parents only A fixed amount on a daily basis is paid irrespective of the actual cost of treatment 30% of base policy premium NA NA Treatment cost of surgery subject to terms & conditions Need not to claim Both non life insurance Guaranteed and non guaranteed part In term insurance if Critical illness rider claim happens then what will happen to existing policy Family floater health Insurance plan covers How the Daily hospitalization cash benefit will provide benefits to policyholder who is hospitalized The premium for accidental death benefit rider must not exceed Under the hospital care rider what is the payout made One person wants to take term plan for 20 lakh and wants to take ADB rider. What is the maximum amount he can withdraw Critical illness rider was taken and the rider benefit has been claimed . What is your suggestion? What are the benefits to the policyholder Under Surgical care rider? Health insurance policy holder takes treatment in a hospital which doesn‟t have cashless facility. In a Guaranteed annuity option of 5 years . His parents are aged 68 &70 . Who all can be included in Family floater option of a health plan Implication of Daily Hospitalisation benefit paln Rupkumar wants to take Commutation option. what is the percentage he can avail as exemption in Income tax.Ramesh invested Rs:50000 in pension policy. What is the maximum Critical Illness Rider he can take Mr. How the policy holder will get benefited Health insurance rider and critical illness rider in classified under In a pension plan illustration what are the parts which shows the benefit for an annuitant. His wife . What is the benefit? Commutation option allows the annuity policy holder to with draw commutation is a feature of which type of policy Waiting period in a health insurance policy is to address Under a health insurance policy. how can that be done Danny is married and has two children aged 6 & 10 .if a policy holder needs to avail his no claim bonus. the rider benefit now gets A person has taken a term insurance of 4 Lac. .50% For improved annuity rate 40% pure endowement policy risk increase in the cover level Danny . Accidental Benefit Rider 1. 1. Premium paid for Health Insurance Plan. Children. He would like to utilize commutation benefit before taking pension. Pension Phase.. Rs. Taking Medi-claim plan with Life Insurance. till he die 1. not remembered 4.00. Taking Hospital Benefit Plan with Endowment Plan. Collection Phase. Suresh purchase one pension plan and accumulated Rs. Govind. 2. 4. Advisor with ABC life insurance company find out one client is seeking solutions for health care and inheritance planning. 4. 00. Equity Linked Saving Schemes. What are the options available to Mr. 4. 3. 3. Taking Life Insurance plan with Critical Illness Rider.. National Saving Certificates.000/- 1. Rs. Accumulation Phase 2. Hospitalization Care Rider 3. . 4. They met with an accident and had a hospital bill of 6 lacs. Critical Illness Rider 2. 2. 9. Some Health Plans will give coverage for family members also.000/- 2. 3. annuity will be continued for next 5 Years 50% each Accidental Benefit Rider X with wife and kids 7 349 350 7 7 351 352 7 7 353 7 354 7 355 7 356 357 358 7 7 7 359 7 360 Daily hospitalisation benefit: ADB rider premium cannot exceed Customer has opted for a 5 yrs guaranteed annuity option. Rs. 85. income tax act 196 Mr. 4. 3. We call this phase as….7 338 339 7 What is commutation of installments Health Insurance is needed because Rajan and Rajini has taken a Family Floater health insurance Plan of 4 lacs. What will happen to annuity. 4. 50. 1. X is married with wife. Exclusion NA NA 2. Surgical Care Rider 4. Young Unmarried. if the customer survives for 5 years after the end of guarantee period? The rider which is given by the Insurance company pays for the treatment costs in the event of hospitalization of the insured person is called Which of the following product not comes under Section 80 ( C ). Primary Phase. 2. Which is true for this situation: Open market option under Annuity policy would extend which of the following benefit? Ajit and vijit are 2 friends paying same premium for health insurance. Mr. We will call these plans as….5 % is applicable when the plan is The lump sum withdrawal before receiving periodic installments of annuity Life is very uncertain They would get the claim of 6 lacs since the individual cover is 8 lacs Ensure Better annuity rate Ajit is above 65years of age whereas vijit is below 65 Gratuity amount Indexed The lump sum withdrawal before receiving maturity benefit Cost of healthcare has increased significantly The lump sum withdrawal before receiving Survival benefit Premium increases with age The lump sum withdrawal before receiving Death benefit NA Rajan will get a claim of 3 lacs and Rajini will get 1 lacs Switch of Funds NA NA NA The insurance cover is shared amongst the family members in no fixed Proportion No Proportion Surgical Care Rider X with all Person receives benefit only if he is hospitalized for 3 days minimum Waiting period NA NA 4. 468/- 7 340 341 342 7 7 7 343 344 7 The claim will depend on the surveyor The maximum claim will be of 4 lacs Increase in the range Ajit is NRI and vijit is Indian His standard of living Guaranteed Increase in return Ajit‟s health is better than vijit NA Unit linked 7 345 346 7 7 347 348 7 Which of the following is true regarding Family Floater Health Insurance Plan? In what proportion is the cover in a Family Floater Plan shared? The rider which is given by the Insurance company pays for the treatment costs in the event of hospitalization of the insured person is called Mr. paid up to 75 Yrs No claim bonus NA NA 3. Why ajit has higher tax exemption eligibility than vijit While calculating retirement fund required for a self employed person which of the following option will automatically be ruled out In case of pension plans a guaranteed minimum return of 4. 2 children and aged parents Health premium is allowed for A Family Floater Plan is the same as a Individual Plan Only self and spouse can be covered in this plan Any number of people may be covered in this plan. 4. Cashless facility No of days spent in hospital multiplied by Daily hospitalisation benefit 30% of the base premium 1.000 amount in his pension fund. Insurance Plan separately. Total Protection Policies. 1. Hitesh would like to get health coverage along with Life Insurance. Family Floater Health Insurance Plans. Rs. 2. Taking Health Plan. Family Rakshak Health Plans. Hitesh to fulfill his need with a little cost? Mr. Retirement. 3. Principle component of home loan. Which main life stage he most likely to fall into? Hospitalization rider has the following benefit: In a Health insurance plan what the particular feature is likely to cause the Insurer to decrease the Renewal premium? Person receives a fixed amount of 1000 daily. Young married with children. 3. 25% each Critical Illness Rider X only Person receives fixed amt daily for no of days in hospital 15% each Hospitalization Care Rider X with wife Person receives an amount equal to the expense. 90. What is amount Mr.000/- 3. Family Health Insurance Plans 1. Suresh can withdraw as commutation? Customer has to pay the amount in regular intervals to create purchase price or Pension Fund. .Feroz has taken policy for critical illness worth Rs.. Nominal cost & flexibility 3. joint life annuity 4. This type of pension plan is known as.. 20 lac 3. He is in need of finances to make down payment of car he wants to purchase. Paraplegia 2. this is due to Under daily hospitalisation cash benefit scheme the amount payable is increased due to what reason Insurance addresses the needs of people with risk of living too long by. Equity. 2.which should be his priority 1. Life annuity 3. 1/3rd of accumulated amount. due to death or disability plans 1..5 lac 7 363 7 364 365 7 7 366 7 367 7 368 7 369 1.He is the earning member and not having life cover. Guaranteed period annuity 2. Before advising him to take health policy..Unfortunately he died after 3 days of treatment.... 4. His job requires him to travel across states. The premium remains constant with increasing age.30 lac 1. Critical illness (CI) 3... 4. Ranga's family member will be in critical illness 4. Ranga is diagnosed a critical illness 3. Deferred Annuity 1. 2. These challenges can be covered through Anand has purchased a pension plan which is nearing completion of accumulation phase. 1/5th of accumulated amount. To purchase a medical plan.. 3. Coma 3.10 lac 2. maximum rider premium can be %age of base premium In a pension policy if agent says the cost would be 120% of present value if he invests for 10 years. When Mr. Mr. 4. The premium may increase or decrease with the increasing age. He is planning of covering his additional risk involved while travelling and a savings plan.Feroz was hospitalized after he was detected with cancer . The benefits of the policy can be used for If a health rider is taken in a policy.. Ranga dies due to severe road accident. 3. immediate annuity 1. Customization and tax benefit. Ramakant is 35 years old. In which of the following scenarios the insurance company will pay him. What will happen to his monthly disposable income after 15 years of job Samir is married and he has only one partner.1 lakh in health policy. what he should be advised.with dependant parents and no child. Brain Surgery 4. To purchase an accidental rider with a savings insurance plan. When Mr. 7 370 371 7 7 372 7 373 374 375 376 377 378 379 380 7 7 7 7 7 7 7 1.. To save through fixed deposits in bank. subject to term & Condition of the rider. one of 6 years and other 8 years. Providing additional cover 1. Savings insurance plan. Bank fixed deposits. deferred annuity 3. Yash has taken an annuity on 25th August 201The benefit of the plan will start from 25th August 201 What type of annuity plan is this? Rohit is working as sales manager with an FMCG company. Why do Self Employed Individual have the need to buy Medical Insurance rather than People working in public Sectors Mohit has two kinds.. Claim will be settled as per the instructions of underwriter 4. Term Rider. 4. claim of critical illness and 10 lakh from term policy will be settled 2. 3. He has bought retirement plan for 20 years. 2/3rd of accumulated amount... Mr. Blindness 1. 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. 4. died in road accident after 10th year how much money claimant would be payable: Under what kind of Rider the insurance company pays the treatment cost in the event of hospitalization of the insured... At the end of accumulation phase how much he can make tax free withdrawal? 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. life annuity 2. The risk of unemployment is covered with what benefit in the policy In Surgical benfit rider what would be the payout procedure A Critical Illness claim is settled in a policy. He also has a term plan worth Rs. 4. Manoj a 26 year old is having 7 years old son. Ranga dies due to critical illness 2.. Maturity benefit 2.7 361 362 7 Which of the following is not a feature of WOP rider? Mr. 1. When Mr. To purchase a health plan along with a savings insurance plan. the policy holder. Accidental death benefit (ADB) 2.. 2. 2. 3. 1. Hospital Care (HC) 4. Claim will not be settled as he died due to cancer 1. claim of hospital charge Rs 20. This rider is ideal for helping to prevent a 4. Immediate annuity 4. How the claim will be settled? Which one of the following cannot be covered under Critical illness rider? Mr. WOP rider can be 3.. 2/5th of accumulated amount. The premium decreases with increasing age. Health insurance plan.10 lakhs. 1. Ranga has taken Critical Illness Rider.. The main strength of WOP is the payment of the event of the disability or death of policy lapsing due to non-payment of premiums offered with all full sum assured. The rider waives future premiums in 2.000 and 1 lakh for death will be settled 3. Mr.. This also brings along challenges. The premium increases with increasing age. Rider Continouation Subsidiary discount Per day Hospital Cash Benefit Respective Per today the Hospital surgery made Cash Benefit irrespective to the Will surgery get lumsum made benefit respective to surgery have Irrespective been made to the sugery Only for Illness 25% Charges Change in hospital Extensive documentation For Repairing house 50% Compounding Special consultant charges Restricting the max age at entry Public sector employees enjoy Medical Insurance Covers related to Job Only For Doctors fees 75% Taxation Admission to ICU Extensive underwriting at inception Retirement and pension plans Loans are available faster for Public sector EMPLOYEES Life Insurance policy for himself will remain same long term savings Not specified 100% Premium increase 8 381 8 382 383 384 8 8 Public Sectors do not get Sick often Self Employed people do not have Sick Leave Health policy for child Marginally decrease income protection Health policy for wife Singnifcantly increase inheritance planning Life insurance policy for wife less than after 15 years investment efficiency . When Mr. although that will not be a priority for Vijay? Young married couple Retirement Childhood Charges Young Term plan Risk apatite of client Shailesh is very older than ankit. Real needs are identified by the insurance agent and perceived needs are identified by the client. child investment & retirement plans for their better future as a family but at present condition which aspect should be kept at lowest priority? After completing a Fact Finding activity for a client. child education Pre Retirement Inflation Retirement Whole life plan Commitment to need NA Retirement life cover Retirement Taxation children Money back plan. They want to plan for savings. Fill up the proposal form ULIP Group health insurance plan Depends upon the amount needed NA Moneyback a money back policy Retirement Quantify clients need Money Back A family floater Margin money The inflation rate Endowment a unit linked policy Priorities Clients Need Term Plan Life insurance Retirement plan The interest rate Term a term life policy Recommending Product Endowment Plan Individual cover Depends upon his actual age and years left for retirement His income Whole life an endowment policy 8 405 8 406 407 408 409 8 8 8 Child Investment Health Insurance Life Insurance It affects the basic cost of cover Health plan Save Tax Need analysis Dictate the Rider Benefit should be recommended Child Plan Fluctuating income Understand about company Helps to quantify the client‟s attitude to risk Life Insurance High Returns Introduction of agent Influence the tax status Retirement Plan Protection Understanding the Customer . who is self employed. Shyam is having 9 year old child. This reduction reflect the impact of Life insurance is the most important for which age group Ashish is looking at different plans of insurance for protection at the lowest premium. health care Young Married Interest Pre. Savings. Willingness to pay NA 8 393 8 394 Childs education Marriage Emergency funds Income protection Retirement plan Health insurance for parents Term Assurance Endowment Plan 8 In the context of financial planning. He wants good amount of life insurance cover along with savings element with no defined term. Which main life stage is he most likely to fall into? A Couple has 7 years old son. Which need Ajay must take care of on priority. Real needs are actual needs and perceived needs are based on a client‟s thoughts and desires. What should be his priority While planning for retirement fund to calculate the required amount needed at that time we should consider as priority Ajay is 35 years old. 395 396 8 Real needs are needs which satisfy an objective and perceived needs are needs which do not satisfy an objective. Education. Which is the best plan for him? During Fact finding. Pre retirement Young unmarried Young married Young married with Kids 8 397 398 8 8 399 400 8 8 401 402 8 8 403 404 8 Marriage. Why? During financial planning session if the agent finds out the following needs. What will be the next step after Identifying clients need Akash is an Unmarried person and employed with company ABC and drawing a handsome salary. This Indicates Shailesh and ankit want to retire in the age of 65yrs. He has no liabilities. Ajay has dependant Parent. Which product is not to be given priority? What is the major reason for self employed to take insurance. the main reason why it is important to record the type of work that he is involved in is… Mr. But shailesh pays more monthly payment than ankit. health insurance. which one should be given the top priority. Childs education. Needs: Income protection. What is the major reason for conducting fact finding exercise? Real needs are financial needs and perceived needs are non-financial needs. He wishes to have health cover for himself and his wife. Which plan should be suggested The income of an individual can be protected with the help of A married couple having 9 year old child have to consider life insurance. child education/marriage and their retirement and protection of income. What kind of plan can be suggested to him? Sumit is having 2 children. rating is mentioned „3‟.8 385 386 387 8 8 8 388 389 390 391 392 8 8 8 8 The sole focus during a client‟s fact-find session was healthcare requirements and estate planning. Ajay and Vijay both are unmarried. Protection. What solution would they be looking for In which of the recognized life stages an individual does not required any protection cover Benefit Illustration given to a customer quantifies an amount by which investment return is reduced. how is the difference between real needs and perceived needs best described? If a person is concentrating more on health plan and retirement plan then at which stage of life is he in. marriage and emergency funds. Which should be their lowest priority? During fact finding. Manish and Manisha is a married couple with one child.retirement Endowment plan His future aspiration Shailesh‟s income is more than Ankit‟s income Pre-retirement. Which suits him the most? A client has got some funds and wants to provide for retirement and margin money. Young married with children. the superior 4. Risk decreases and the Risk appetite decreases Education Fund By addition of Premium waiver rider to the proposed Endowment assurance plan A Government employee NA 4. Investment and retirement 1. Investment and life needs 4... Selling what adviser wish to sell. Emergency funds 1. Likely to increase.. 1. 3. 3. Identify & Quantify Needs... which need you prioritize first? The Central Bank has recently announced the decrease in interest rates.As an agent. Private sector employees 3. For drawing a financial plan for savings needs of an individual without capital.This is: During financial planning session if the agent finds out the following needs... Risk decreases and the Risk appetite increases Age increases. How his proposal will suitably be dealt with? A provision for superannuation is normally taken a high need to A person has 6 months of emergency funds. Important need 4. Which relation is most likely to be acceptable? Regular savings creates a fund to meet adverse incidents in future.. as Naveen and Ram are of same age. Tax planning need. Prioritize. 3. 2. Employment stage Retirement fund Emergency fund Fund for untimely death 8 413 414 415 8 8 8 416 417 8 8 418 419 420 8 8 Mr. Need analysis involves identifying……… By offering another Endowment assurance plan By addition of Accident Benefit rider to the proposed Endowment assurance plan By addition of Term assurance rider to the proposed Endowment assurance plan a Public sector employee Reasonable 1. Risk increases and the Risk appetite decreases Age increases. Prioritize.. Naveen referred Prasad to Ram. Risk increases and the Risk appetite increases Age increases. the higher 3. Pre-retirement stage 2. Health Insurance 3. normal 3.. 8 411 8 412 There is a relation between Age. Ramachandra's son Mr... All of the above 1. Liabilty Insurance 4. Real need 1. Retirement need. Imagined to be important by client. 4. Childs education. When the members of a family do not work at all. 2. Is it the right advice? Why? Yes. 3. is the sole bread winner for his family. Quantify & Identify Needs. 2. Financial security need. as there is an age difference. Risk and Risk appetite. 4. 4. 2. marriage and emergency funds.. 4. Identify & Prioritize Needs. Marriage A self-employed person NA 3. Mr. Prasad is also teacher. he is advised to approach to: What do you mean by Double Income Family? A Proposer asks for double death benefit in an Endowment assurance plan for 15 years. Imagined to be important by Advisor. 4. Quantify. aged 30 years and married. customers needs are different Yes. He is a teacher by profession..... Likely to decrease..their liabilities will be. the smarter 8 421 8 422 423 8 8 424 8 425 426 8 8 427 428 8 1.. Here Mr.stage. Asset building nee4. 2.. Life Insurance 2. Property Insurance 1. When the income of a family is just the double of income of another family. Bharat has just employed as a software engineer. 1.. Selling what customer requirement is. 4. Needs: Income protection. Now Mr. what is the Fund which comes first? Age increases. 1. Ramachandra is now in the . 1. When a person of the family is involved in double businesses or jobs. Childs education an unmarried young NA 2. The prices of bonds are During the fact finding session as an agent you should follow which one of the following process? Amit is looking for term insurance plan for protection of his family. Will fluctuate. 1. Existing insurance plans. Investment and savings 3.. Shanth is in his early 20s and has just started earning.... When both the life partners are earning members of the family.. Identify.. Married with older children stage 1. Perceived need 2.. Short term needs.. The younger the age of an individual... high 1. has taken money back plan... Vinodh has lot of inconvenience to reach office every day. Ram who is an agent advised Prasad to take money back plan as he is of same age (33 years). Post retirement stage 3. Family and Employment details. aged 32 years. 3.... He is saving enough with banks. 2. Long term needs. the lower 2. Ramachandra is free from his burden. 4. 3.. as both are teachers No.8 410 Naveen. Capacity to pay the premiums in future.. Selling what IDRA wants company to sell. Mr. Perceived needs are those…... Neutral. No change is likely.. His risk appetite is expected to be. So Mr... which one should be given the top priority. Professionals & Businessmen 8 429 430 8 In which of the following case there is no defined retirement age? . 4. So he wants to buy an expensive car when he will have sufficient fund.. Imaginary need 3. 1. Vinodh's need is. Financial provision to meet predictable and unpredictable needs. 4. Selling what company wish to sell. No.. 3. 2. Quantify & Prioritize Needs. Which are the two primary needs of any customer in any point of life? The concept of need based selling involves Vijay. low 2.. daughter Anusha has got married. Investment and Protection 2.. Public sector employees 2. Income protection 4. recommend the new product the company has recently launched 3.. C. Client‟s business details . Which one of the following documents he would have Fact Finding document used to explain the same? Naresh is married and his daughter Sneha is 3 years old. Every individual‟s income and expenditure pattern is same. recommend to wait some days to invest Sickness Investment in shares and mutual fund 3. Every individual‟s income and expenditure pattern is different. however his financial planning shows that he cannot afford car as of now . Personal and financial data sheet 4.Harsha an agent wants do a thorough Fact Finding for his client to Mr. Proof of address. 2. an agent was explaining to his customer the guaranteed benefits of the product. It is likely to emerge from the incident of Which one is not an asset During Fact finding. Lapsed policy details.. professional data and financial data Mr. Photographs 1. Closed Ended Questions 1. 3. An individual‟s income and expenditure has no relation. Fact Finding document 2. 4. Recommend to take his own time to take a decision. Client‟s business records What should an agent do in order to understand the mental state of Fact finding client in respect to his investments in saving products During product recommendation the agent should explain the product The needs that came to fore in fact find in relation to process An agent was explaining to his customer the guaranteed benefits of the product. Client‟s Profits and Withdrawals from business 2. B. Clarification Questions. An individual should not keep in mind his income while planning his expenditure. 4. they are planning for estate planning. In which of the following an agent will collect the customer‟s Personal data. 3. recommend the products that best meet the client's needs 1. then the agent should ask the client.Kishan who is a business man. Willingness to pay 4. Which one of the following documents he would have used to explain the same? Mr. Proof of identity 2.Mohith.This amount is considered as Adequate Inadequate too low 8 433 8 434 435 436 437 438 439 440 441 8 9 9 9 9 9 9 9 442 443 9 9 444 445 9 XYZ client wants to buy a car in future .8 431 432 8 Which one of the following is true? 1. Which plan Term & Children Plan can he take? Ask the client to fill the proposal form 9 446 9 447 448 449 450 451 9 9 9 9 9 452 9 453 9 454 9 455 If the recommendation of the agent has been rejected by the client. Open Ended Questions. 3. Fact Finding Sheet Unemployment House loan 2.KYC document 3. too high Ram has set a provision for contigency which can survive for 6 month .. which life Young married with single income no stage do they belong to kids objective of fact finding Fact finding sheet allows the agent to Mr A has been approached by the Agent and on fact finding the score is 3 . Customer Data sheet 2. this represents To ensure that the premiums are paid out of a legitimate source of funds cash is accepted With effect from 1st July 2010 all insurers have to disclose in the benefit illustration document the... Benefit illustration document 1. client need analysis Analyze customer needs Low Risk Taking Up to Rs 50000 Commission Pay to their agents To pay the premium Explain him difference between Explain him difference between financial & non Explain him difference between important & short term & long financial need unimportant need term need Young Married with children and Young Married with no children and Double Young Married with children and Single income Double income income family family family Retirement Product Pitching Select the product High Risk Taking Up to 99990 Detail of charges To fill in the proposal form Consulting the client‟s parents Benefits of the products KYC document Annuity Plan Childhood for completing ACR Proof Moderate Risk Taking Up to 100000 Both of the above To ask the documents Consulting the family of the client Commission on the products Benefit illustration document Whole Life Plan Must try to convince the client to follow his recommendation Pre retirement Finding out Moral hazards Reference Zero risk Taking Without any limit None of the above None of the above Reviewing his existing investments NA Client benefit document Health Plan Must try to force the client to follow his recommendation Education All of them 4. Risk apatite of client 1.As a financial planner you should Explain him difference between real need & perceived Young Married with no children and Which is suitable life stage to buy Unit linked insurance plan? Single income family X and Y are married. the agent should: Financial planning may not be taken as complete till inclusion of the predictable needs of the clients. Commitment to need 3. 4. His future aspiration 2.. D. 2. Which of the following information will be helpful to know about the earnings and Expense of Kishan? Find out the reasons for refusal Disability House 1. This Indicates Which type of questioning is very useful to gather information from clients? Which is the not part of KYC norms? During the recommendation stage the advisor needs to. rating is mentioned „3‟.. If the client accept the recommendation. Interrogative Questions. Client‟s Expense statement 3. Advisor Confidential Sheet 1. Client benefit document 4. 4. Provide for anticipated changes 1. Provide the 3. 2. 4. Individuals have same financial needs at different stages of the life cycle. Benefit illustration documents Check the client's commitment to the need & continue with process 3. To resolve this query. Provide Benefit illustration documents to client. This may result in To prove one‟s identity in accordance with KYC process. If client approves the recommendation what should be the next xtep 1. Bad reputation of the individual adviser. That means What key impact will the agent have in low persistency A customer surrenders his policy on Feb 2011. Both are working couple. As per Agents code of conduct. Fact-finding sheet Should take some more time to conclude the sale Discuss with proposer about future life which of the following is the final stage of fact finding with the client? prospects and changes Completion of Proposal form a policy holder takes two insurance policy and the premium amount is identical and he gets lesser commission in one of contract the one policy has more SA ONE POLICY has more term reason is likely to be An agent reveals his commission received from insurance sales to X has brought other limited premium X&Y . They want to invest their savings of 100. Financial details Should close the discussion then & there Coming to mutual agreement with objective for Solutions One of the policy has higher Premium Y is Single Should avoid the topic From ticked column of proposal form Insurance companies get good branding Cost Partially Higher S. Why is commission of X far Y has brought a single premium product product higher that that of Y Customer asks the agent to disclose the commission .Surrendering the existing policies for selling new one 4. Provide the product brochure to the client. Provide the terms and conditions document website address to to the client. 3. 4. Discourse saving in a purposeful and need based manner. an agent can get a new policy from this customer from Feb which year When should an agent disclose the commission which he will earn from the product which he is going to sell Ask the insurer to give a policy endorsement letter Agents earn Lower Commission on churning risk Increase More productivity more lapsation Increase more business 2011 From the fact details Recommending Solutions one policy is a single premium X is married Should call up the Insurer From signed copy of benefit illustration Policyholders suffer due to surrender charges and benefits Flexibility Will not affect Higher Profits less lapsation Will improve reputation 2013 Policyholder gets more benefits suitability Decrease Higher attrition more attrition Increase in the agents earning 2012 When the customer asks him After the fact finding process After quantifying the need . Both identify clients‟ needs & gather information. 2. 2. To explain the benefits of a product. Matching the product with Ramesh„s financial need. 4.000 annually to build corpus to make down payment for their house 5 years from now. the customer needs to submit following document excluding ………. 3. 9 460 9 461 1. Providing him emergency fund. Communication skills. Identify only the client‟s needs. An Age Proof 2. based on which aspect what over riding criteria an insurance agent consider while proposing a solution Sales Target is reduced .Both plans are of same duration . 1. Ram has presented the product to the client in te second meeting .? 1. Individuals understand their real needs and can prioritize them. 1. Ruining the long term reputation of company. the insurance adviser should Amit & Rashmi are newly married. 4. 4. 4. Churning will Higher persistency to the insurer ensures what ? Persitency =has increased from 82 % in previous year to 86 % this year . Gathering client data 3. Identify needs 2. An Identity Proof 3. Gather Clients Information only. 2. 2.A No profits Will have impact in his commission 2014 After the product is recommended to the client 9 462 9 463 464 9 9 465 9 466 10 467 10 468 469 10 10 470 10 471 472 473 474 475 476 10 10 10 10 10 10 477 10 478 Vinod being an insurance agent can offer assistance to his client Ramesh by: 1. Individuals‟ real and perceived needs are same. Client information gathering skills. 1. Recommendation of product with highest return. An adviser sold than a unit link product to meet their requirement. Objectives of fact-finding do not includeWhich one of the following documents distinguishes between Guaranteed and non-guaranteed benefits? After fact finding . the client. 3.9 456 9 457 9 458 9 459 As an adviser why is it essential for you to carry out the financial planning exercise with the prospective clients? After undertaking financial planning exercise. the prospective client said that he does not have funds for investments. To provide solution of company‟s choice. Financial burden on the couple. Objection handling skills. Education Proof 4. 3. KYC documents Ask the client to sign the contract of relationship 2. Opportunity of new business for adviser. 3. An Address Proof 4. which skill of an agent would be tested? The objective of Fact Finding is to 1. 2. Listening skills. The agent disclose on demand Not disclose should The best way to prove that customer of a ULIP policy is given awareness about the commission paid to the agent is Churning is bad . Individuals do not understands their real needs and cannot prioritize them. Churning 3. Dispatching Discharge voucher to the customer 10 497 10 498 10 499 10 500 501 10 10 502 1.. When the client is enjoying good financial status. When the nominee has changed.479 480 10 10 What is the disadvantage to the insurer in case the persistency falls A low persistency ratio for the insurance company means that: Lower profits The customers are satisfied with the products Higher profits The company is acquiring more business and new customers NA A large numbers of policies have lapsed / surrendered resulting in loss of profit Ask the proposer‟s doctor to send details to the insurer Should ask for a future date from the client Give a child plan and revisit the client on a later date NA The company will not declare bonus Respect this confidentiality by not disclosing it to anyone Should review once again Give the lead to another agent Pass on to the other agent Offering premium collection facility to client 10 481 482 10 10 483 10 484 10 485 486 10 10 487 488 10 If a person already suffering from some disease and had not Notify the insurer of this matter Refuse to act for the customer benefit mentioned it in the proposal form then as per IRDA code of conduct the agent should If the client does not wish to proceed with the recommendations right Should ask for the reason for not going with the Insist on taking the product right away at the moment the agent should recommendation During a fact finding process the need analyzed were income replacement and children‟s education. 2. First Year Commission Issuing reminders need to disclose the amount of commission Doing a financial planning The company is acquiring more business and new customers a rebate on the price amount like other sales NA 2. Pass on to the superior Offering credit facility to client needs to disclose the amount of commission Should not disclose on demand Churning A large numbers of policies have lapsed / surrendered resulting in loss of profit a breach of IRDA‟s code of conduct NA 3. Fact Finding The company will not declare bonus a breach of a provision of the Insurance Act. Gayaram. appreciable 4. Mr.Raghav helps his brother in 1. 2. Mr. compulsory 3. But the client refused.practice Which one of the following factor does not help in the Persistency ? Mr. Role of Agent 1. Switching 2. the adviser should Under what circumstances the surrender of a policy should be recommended by the agent? 1.. 3. . 10 489 490 491 10 10 10 492 10 493 494 495 10 10 10 496 1.. 2.1938 NA 4. Gayaram.Raghav is an expert in fact finding . 1. But the customer insists on Do the fact finding exercise again Insist with the client to take a term plan only a child plan for the time being and asks the agent to give him a child plan. 4.. Hansa an agent. 3.Mr. Switching the policy Mrs. Should do nothing.. This is called as ? Explaining charge structure need not disclose the amount of commission Switching The customers are satisfied with the products a kind of gift for purchasing insurance products Providing service to the clients 1. Advisor who advised the customer to close the old policy and take new one. It will benefit both the company and short span of time by giving maximum rebates to the customer to the customer complete the contest target of the company. Shifting. When the policy has been mis-sold and do not match his needs. Raghav License will be cancelled 2.. All of the above. Renewal Commission. But new policy does not have any extra benefits but it will give more commission to Mr. Client and Insurance Company 1. Claiming the policy 4. When the client‟s needs have been established. What is the factor which has influence on persistency? For an insurance advisor churning is.. 1. Raghav will be promoted to the next his job by sharing the information of his clients after the fact finding level he does to procure insurance. 1. What will be the outcome ? The agents duties and responsibilities ends When client declines the recommendation by the insurance adviser even after resolving the concerns. Salary and Reimbursement. Policy Servicing 3. has planned to sell maximum products within a 1. 4. Agent will be terminated 2. When the clients policy is issued. Product Design. According to Suggest an alternative plan client ethical business practices what will the agent do ? Which of the following act from agent will be specifically useful in case of annual premium policies compared to monthly mode policies As per the IRDA circular an insurance agent If the agent recommends the client to terminate an endowment plan and take a whole life in order to earn higher commission its termed as A low persistency ratio for the insurance company means that: An agent offered his client that 75% of the first premium will be paid by him out of commission. Insurance and Reinsurance company.. 4. When a client is holding a product having good value for money. This offer of rebate on premium will be treated as Persistency can be improved by: Remuneration to Agents includes Mr. This is called as…… An insurance agent is intermediary between….. 4. Persuade the client to purchase the policy. The agent should. 4. Churning of the policy 2. David had advised him to surrender this policy and to apply for a lower premium policy. bad 2. 3. Insurance Company and IRDA 2. Surrendering the policy 3. Agent will be qualified for the contest 4. When the maturity/claim is settle4. Client and IRDA 3.. Both of the above. Redirecting. good 1. Customer will complain to Ombudsman 4. When a client have been sold the right solution. 2. Raghav will be terminated 3. 4. Flexibility of Premium payment to the customer 3. Srinivasan to take an endowment policy on Feb 200As srinivasan was finding it difficult to pay the premium. Continuous servicing of the policy 4. the agent advised the Enquire about the refusal from the client to opt for TROP product. Should ask for reference who might be interested in financial planning. Regular reminders about the premium to the customer 2. After doing the need analysis of the client. David an agent had helped Mr. Should never approach the client ever again... Reputation of the company will be high due to offers to the customer 3. Get second opinion Ask the client to put the query in writing NA 10 days 7years 8% 30 days Body not found 180 days Inception of the policy NA 60 days 20 days from the receipt It was surrendered.20% 20 days Death was due to Accident 120 days Claim Claim not admissible 30 days 15 days from the receipt It was lost.000 for a term of 15 years. Survival benefit was due on 4. Less renewal income. 2.2011 Survival claim will not be paid and only Both the survival claim and the death claim will without receiving the survival benefit amount. 10. Fraud Premiums paid or not After clearly identifying 2 needs from fact finding. Satish should check the Ramesh „s commitment to the needs 2. Agent has the option to recommending highest commission at any time. If the claim needs to be excluded basis the exclusion cause what could be the cause According to IRDA guidelines. Insurance Normal Fraudulent company will not treat this claim as ________ claim. What will be the death claim will be paid to the Nominee be paid to the Nominee legitimate procedure to pay out the claim? Early General Bothe claims will be paid to the Legal heirs Survival claim will be paid to the Legal heirs and the death claim to the Nominee . What should Nikhil Decline to act for the client do? While on sales of an Insurance plan Mr…. how long does an insurance company have to complete its investigation of a claim Indisputability clause can be enforced by the insurance company during the Incase of presumption of death If a valid claim is delayed by the insurer then the interest for the same will have to be paid by the insurance after how many days from the date of admission of the claim? Under the IRDA guidelines for Claim settlement. what should the agent do now Do a fact finding again Nikhil was in the process of closing a unit linked plan sale and the customer put a query which Nikhil does not know.. 10 507 10 508 509 10 10 510 10 511 512 513 514 515 516 10 11 11 11 11 11 517 518 519 520 11 11 11 11 521 522 523 524 525 11 11 11 11 11 526 11 527 11 528 Why a building long term relationship with clients is necessary? 1.but the client insist on investment plan for the financial planning.% if the present bank interest rate is 5. client agrees to go for one and gives the reason. Introduction of a new insurance product or a change in a client‟s Circumstance Report to the senior and seek his Guidance Surplus decreases 504 505 10 10 506 Satish as an insurance advisor while recommending to his client Ramesh is not suitable policies – 1.. Satish should outline the reasons for recommendation for a particular policy 3. High renewal income.Agent Recommends protection Plan.2% A claim was submitted & in how many days company should ask for additional documents if required Vivek takes insurance policy and dies after 8 months . None of the above NA Misrepresentation Lack of insurable interest Which of the following falls under voidable contract? As per claims assessment process if a claim arises within a few days of the start of the policy which factor should the insurer check in the Age admission Disclosure of material fact first place? Ajay has bought an endowment insurance plan with a cover of Rs. 3. Due to the category of customer 3 days 5years 7% 15 days suicide 30 days First five years of policy Not necessary to pay premium until court decree 10 days 5 days from the receipt It was assigned.. Should advised him to surrender all the polices which are not buy from satish.5. Refuse to proceed Direct him to the product booklet the customer demanded 15 days 8years 9% 10days murder 90 days First Two years of policy Necessary to pay premium until court decree 20days 10 days from the receipt It was paid up.503 10 10 What key benefit high persistency ratios have on insurance adviser? Under which one of the following acts the maximum remuneration that can be given to insurance agents described? Which one of the following is not a benefit of persistency? 1. 4. It was lapsed.then Recommend both the plans policy reserve increases Propose an investment plan and discuss with him regard to discomfort of term plan Reserve decreases Refuse to act with client Remains constant Proceed with agreed need and document the rejection Ask his Supervisor and clarify Due to the profile of the customer 30 days 12 years 7. Ajay died after 4 years. Unsatisfied clients. any queries or additional documents can asked from the claimant within A claim was paid in a policy and it was advertised in the newspaper also. IRDA Act 1999 4. Ranjan died on 6. 1. It was paid up.5. It was surrendered. Had to show his license What is the maximum Time in which The insurer should settle a claim when all documents are submitted A missing person is considered to be dead after The delay in settling claim by any insurance co. Reviewing financial needs and plans are necessary with changes 3. This indicates that the policy was. Decreased revenues 4.2011. Income Tax Act 1.what an agent should do! Insurers observe high persistency ratio. Indian Contract Act 2. A satisfied client may be the source of other potential clients 2. as per IRDA norms has to pay. An indemnity bond was signed in a policy when the claim was paid. It was lost. Insurance Act 1938 3. This indicates that the policy was. Increased client satisfaction 4. As per agents code of conduct. Ranjan took out a 20 years Money Back plan on his own life 5 years ago. Satish should check the acceptance or rejection of the recommendation. 4. Helps the client in achieving goals 2. Fewer client bases. 00. Reduction in costs 3. .A is absolute assignment and B is conditional assignment. Legal heir of life Assured 3. Client 2.. Detailed Investigation will be triggered in case of. Normal death claim 1. if Death claim arises before the payment of the 1. Any demand made by the policyholder on the insurer. 4. 8 years 4. The insurer completes the enquiry. Lien Commutation Loan Facility A loan amount and oustanding premium is pending A outstanding premium is pending A sign on discharge form . if any.. If the claimant does not come within a month the entire maturity amount will be forfeited. will be paid as death claim 3. The policy may be pledged. The life assured is major. 3. 4. Insurance company 4.Baskar had taken a Term plan for a sum assured of Rs. What is the possibility of receiving it in installments if it is not a annuity plan Incase of presumption of death What is meant by a claim under insurance policy? Who will take the initiation to settle the maturity claim process? A regret letter will go intimating that nothing is payable as death claim 1. A demand to fulfill the policyholder‟s 2. 4 lakhs. Policy was lapsed on the time of maturity 4. The insurance company makes enquire on maturity claims only. Claim not admissible 3. Not necessary to pay premium until 2. Total 7 lakhs will be paid as death had taken place 2.Coroners Report 11 531 532 533 534 11 11 11 1. The policy was not in force. 3. This condition is excluded in the policy. 5 years 2. 1. Post Mortem Report. Enquiry will be done on both Maturity and Death Claims. 4. Legal heir of the life assured 3. Depends on case to case 4. Total 11 lakhs will be paid 1. 2. forfeited the Premium 4. The claim is fraudulent. What could be the reason for deduction when all the due premiums were paid Paid up option Two policy Matures at the same time for an insurance company.. The claim is an early claim. 2. customer does not get received Maturity in a lump sum. 4. Enquiry will be done if death happens before one year from policy inception date. 4. He has opted for Settlement option 3. Mr. The nominee makes a demand. If there be any claim. if a person is not heard for . Chintamani has taken a policy from ABC Company on 2nd March 2010. it is the responsibility of the claimant to approach the company Mr. Necessary to pay premium until court decree court decree 1.. 2. but not able to get the Signature of her appointee due to unavailability of his 1. 4... 1. Debotrs 2. Early death claims 3. Abnormal death claim 3. All of the above. Misrepresentation Full sum assured will be paid as death claim Paid up value.... Total 4 lakhs will be paid as death had happened due to car accident 3. He has he has redirected his past premium.. Lack of insurable interest Full sum assured less deduction of unpaid premium will be paid 4. The nominee files a claim and is rejected because When a policy is lost...what are the other requirment for maturity with respect to policy. Nominee surrender value... IRDA 3. The insurance company makes enquire only on death claims. the process is initiated by the company well in advance of the maturity date 3. The policyholder makes a demand. Total 7 lakhs will be paid without any deduction. 1.. will be Payable to Saanvi (Nominee) at the age of 18th 4. obligations. Maturity claims 1.. 4. 11 546 547 11 11 548 11 549 On foreclosure. Advisor confidential report 3. He died in road accident. 7 years 11 539 11 540 11 541 11 542 543 11 In the process of settling maturity claims. There is no nomination.. 4. 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. 2. Advisor 11 535 11 536 537 538 11 11 Which is the right statement regarding claim enquiry? 1. He had nominated his 1 year old daughter Saanvi. He has switched his fund 2. How much will be the death claim settlement? Insurer will not pay the claim unless Aman has taken a term plan for 20 years.. He also has an ADB rider worth Rs. Early death claim 2. now claim money would be payable to: Which one of the following report is not considered in case of Pankaj 1. None of the above 4. The event insured against happens. 3. Bought a plan in 2009 & died in road accident in 2011 : Insurer has deducted Rs 3000 from the death claim of Ram. Representation of facts by the policyholders is true. Fraud 2. the company will wait until the claimant comes to office to demand the claim 2.pending requirment in relation with B A loan and interest is outstanding 3. Unnatural death claim 4. 7 lakhs. The circumstances are legitimate. There is no insurable interest attached to the policy. 3. 6 years 3. The claim may not be genuine. 1. In insurance. how the claim will normally be dealt with? Which of the following falls under voidable contract? After maturity In a Unit Linked Life Insurance Policy..years his is presumed to be dead. 3. 4. All death claims 2.. but unfortunately he died on 18th August 201 His death claim is considered as. 1.11 529 530 11 A life assured died after 40 days from the payment of his monthly premium. Unfortunately Baskar died in a car accident. insurance company take utmost care while settling maturity claims because What key event is most likely to make an insurance contract not a valid contract? 1.. 1. A demand to fulfill the insurer‟s obligations. Appointee Only 2. Policy first information report. 2. the payment would be payable to: Gaurav is working in MNC at the age of 32 bought an Endowment Plan. Rider benefit claims.. 2. The facts were misrepresented. Nominee only spouse . 11 544 545 11 1.after 5 year. If the policy is endorsed under MWP ... 4.. Representatives from IRDA 2. 45% 4.. the person who is authorised to process the mediclaim is known as Underwriter Maturity benefit is equal to Sum assured plus reversionary bonus minus ? Claim within 1st anniversary An advisor while explaining the policy and to sell he accepts to give a 10% part of his Agents commission. will stop automatically 2% Constitution Policy holder 4.Sunil is doing premium calculation for his company...Why? he was less than 21 at that time Mr.. As agent he must carry out his role in accordance with Under Married Women‟s Property Act. what is th limits Consumer Forum at district level will hear complaints up to 20L How much is the rebate allowed by IRDA to client Nil the controller of insurance in india is A insurer advertises through daily news paper .. 2. as per which Council of Actuaries authority is his profession related to . Representatives from all government bodies 3. The trustee.. 2. Married Man 3. 1. Company‟s code of conduct. Designated Person.... The administrator...550 551 552 553 554 555 556 557 558 559 11 11 11 12 12 12 12 12 12 12 12 Maturity benefit is equal to Sum assured plus reversionary bonus minus ? Persistency bonus In a non life policy. The Life Assured. License section of insurance agent act 1938 4. What is the max contribution of one organisation 2. Married Woman 2. Married Son 60000 1. Insurance Company.crimnal offence in the past. Section 43 of the Insurance Act 1939 Which official body decides to increase the interest rates? Which one of the section deals with the licensing of an agent? 1. Insurance Acts code of conduct.. The beneficiaries. IRDA Acts code of conduct. 1. to his nominee Cannot rebate at all SEBI Trustee 3. the commission payable will be paid to.... Amalgamation. claim is paid to Which is the 2 stage in Money Laundering? According to IRDA regulations the maximum percentage of first year commission to be paid to an insurance advisor is. D. Section 42 of the Insurance Act 1938 2.. IRDA claim protection regulation 2002 3. What type of marketing is Investment by NRI(Non Resident Indian) will be MWP. Branch Operations Team.. Representatives from Insurance institute of India 4. 1.IRDA policy settlement regulation 2004 Which of the following team represents the members of GBIC ? Rahul is a licensed insurance agent.given IRDA license. 1874 a policyholder is Who has the authority in insurance company to issue/cancel the agents license Married Woman‟s Property Act 1874 provides that a life insurance Policy that has been taken out by: Premium Income earned by an agent holding a composite license is 600000. Actuary. In such a case what is the percentage of commission which he can rebate so as to beat the competition _____ controls monetary system in India In MWP Act Policy.. IRDA Regulations code of conduct. Protection of claim settlement regulation 2002 4... Section 34 of the Insurance Act 1932 4. Married Daughter Issuance of a license to a person has been stipulated in.. Representatives from all insurance companies 1. Reserve bank of country 3. Placement 2. 2. 40% 3. nd When the insurance company is in the first 10 years of operation If the agent has worked with the company for more than 5 years If the agent has worked with the company for more than 10 years Maximum 10% RBI Nominee 1. Section 42 of the insurance act 1938 1. 4. 4. 3. In the case of agent's death.... 560 12 561 12 562 563 564 565 566 12 12 12 12 12 567 12 568 569 12 12 570 12 571 12 572 573 574 575 576 12 12 12 12 12 577 578 579 12 13 When can an insurance company give more than 35% first year commission? An agent recommends a term plan in keeping with the ethical standards since it was suitable to client‟s needs.Act 1.then the beneficiaries are wife and ? If the license of an agent has been disqualified by a designated authority in 2010 then the person can apply for a license in which year IRDA cross selling No risk parents 2013 Outstanding premium + interest Third party administrator Claim within 1st calendar year 20% 40L 5% RBI direct selling Low risk ex wife 2015 Outstandin premiums Actuary Claim befor the valuation date He cannot offer any commission 1Cr 10% SEBI Solicitation of Policy Medium risk children 2017 Claim after the valuation date He can offer up to 50% 10L 35% Insurance ombusdmen Brand building High risk mother 2020 If the agent is doing more than 3 policies in a month.. Reserve bank of India 2. 4.. 3. 35% 2.. Integration 3. 30 % 1.. Paid in lump sum to the survivors... Layering 1. C.2 lac atleast 5 yrs hav passed since the sentence Insurance institiute of India 3 lac exception IRDA License criteria.5 lac offence had a punishment of less that 2000 Insurance council of India 1. 3. Central bank of India 1. Central bank of country 4. License section of Insurance act 1938 Which regulations take care of the settlement of claims ? 2. his legal heirs Half of the commission IRDA Assignee 2... Section 12 of the Insurance Act 1922 3. 4. Protection of Policy holder Interests regulation 2002 1. Section 42 of the insurance act 1936 3. .1938 Rs 1000 for 7 year from the date of judgment 13 592 593 594 595 596 13 13 13 13 13 597 598 13 13 599 600 13 13 601 13 602 603 13 13 604 605 13 An agent is not required to obtain the prior approval of the insurer before placing an advertisement when: The Institute of insurance and risk management along with insurance education does what more Pricing element is done by What does MDRT Stand for? As per AML regulation. 1. 4. Regulation IRDA Million Dollar Round Table Rs. 300 for life Domicile status Has the power to supersede the IRDA by issuing a bill in parliament 26% Nodal officer He can design the advertisement without the concern of insurer. What percent of stake can a foreign partner hold? Rahul is appointed as director of life insurance company. Research Life Insurance Council Major Dollar Round Tag Rs. sound mind & graduate Insurance Institute of India To regulate sound mind & good income level Life Insurance Council To advise Government Age and income level Insurance Broker Association To undertake training activities Policy matters IRDA IRDA complex technical issues SEBI Tariff Advisory Committee Promotional activities RBI National Insurance Academy His contacts in the market to solicit Insurance General Insurance Council To Advertise globally on Indian Insurance Licensing of Insurance companies SBI LIC Insurance can price their product on their self past experiences. Central Government Under the prevailing FDI laws for insurance.50000 Indian Contract Act. implement and operate an insurance training Basing on which criteria the qualification of Agent is determined? If IRDA is unable to discharge its functions or duties. 2. Tariff Advisory Committee.. The disqualification stands valid Central govt has authority of Direction to IRDA on It is the bounden duty of the Insurers to protect the interests of their policyholders from proposal acceptance to claim payment because of the Policy matter Behavioral requirements of EGovernance a behavior that is based upon the positive judgment of an individual Research 1. 20% Insurance Advisor It contains only statements that mention the agents name.13 580 581 13 13 582 13 583 584 585 13 13 basic qualifications of agent Which Institution was Constituted by Insurance Act 1938 What is the role of National Insurance Academy? According to IRDA act 1999. he will be disqualified to act as an insurance agent. 2000 Rs500 for 10 years from the date of disqualification To present statement of IRDA act in Parliament Market competition NA Has the power to supersede the IRDA by issuing draft 49% Chief actuary Were all his information published to enhance his business.1872 Any of them for 5 years since completion of the sentence imposed All of them. 1955 .1999 Rs. central governments involve in insurance industry over Who is a regulator. a behavior that is based upon the legal judgment of an individual NA 2. 1956 May issue notification Requirements of the Life Insurance Council In the context of IRDA‟s code of conduct. Insurance Regulatory and Development Authority. it allows cash premium not over than Which Act or Regulation provides that the Renewal commission is payable to the legal heirs of the Insurance agent in case of his death? Agent offering rebate may be fined If an Insurance agent is found guilty of breach of trust. domestic private companies are allowed to form joint ventures with foreign partners.20000 IRDA Act. logo & phone number.25000 IRDA Regulations. Redressal Insurance Company Major Double Rupees Tag Rs. The Insurance Institute of India (III) was formed in. Regulations of IRDA a behavior that is based upon the moral judgment of an individual NA 4. 1999 a behavior that is based upon the ritual judgment of an individual NA 3. Reserve Bank of India.. Regulate the investment of funds by Life Insurance company NA Can make changes in IRDA law 51% Underwriter Describe the benefits which do not match the policy provisions Repository CII Mean Disposition Residence Time Rs. 1947 13 586 De. terms and conditions that may be offered by insurers in the respect of general insurance business. 3.. he cannot be an Address of the agent Has the power to supersede the IRDA by issuing notification. advantages.tarrification is a process by which pricing of Insurance Rises Decreases Reaches at a level as per industry trends 13 587 588 13 13 589 13 590 591 13 What is the key function of NIA Provide suggestion for Premium calculation To be an active link between Global market & Indian Life Insurance Industry Design. Insurance Institute of India. the term Ethical behavior can be best described as IIRM is in areas of education and Who controls and regulate the rates. supervisor and monetary authority of the financial system in India The insurance act of 1938 created which of these.5000 Insurance Act. What is the solution for Mr. Institute of Actuaries of Indi1. Training and audit.000. Life insurance council 2.Varun taken up his agency in July 5th 200 His lost his IRDA license while travelling. then the ombudsman should Generally insurance companies do not hold the premium in case of a fraud or misrepresentation.. Insurance ombudsmen 25 lac 3 months when he sells term insurance 4. Need to complete 25 hours of practical training and paying training and paying Rs. Insurance Regulatory Development Authority 3..50 for the issuance of duplicate license 2. The guidelines for annual assumed growth rate are given by AML Program of every insurer to include _______________. Pending decision from Ombudsman 14 630 14 631 632 633 14 14 Fraudulent claim Indisputability clause Redressal procedure 6 weeks Life Insurance Council Inspection by IRDA 1 month IRDA Audit by Finance Ministry 2 months Actuaries Appointment of Principal Compliance Officer 6 months Underwriter Inspection by Auditor General .000 It is optional Insurance Institute of India Five years 25 days By all insurers. due to which of the following circumstances the insurer can retain the premium of the policyholder A policy holder is not satisfied with the services of the insurer and complains to ombudsman. Insurance companies are required to honor the awards passed by the Insurance Ombudsman within how may days As per IRDA regulations IGMS should be mandatory set up by For the customer whose claim has been refused by the company. However. Life Insurance Council 1. What is the stipulated time frame within which an insurer is supposed to respond after receiving any communication from its policyholders? The functions of the Insurance Ombudsman include: If a case is already before the consumer forum. Complaint council bodies other than IRDA grievance readdress forum & COPA What are the ways by which a policy holder can make complaints what are the ways in which IRDA can be contacted . apart from Procedure. Life Insurance Council RBI Ombudsman email email 20 lac 2months under all circumstances 2.00. IRDA Customer Grievance Cell and ………………………. Insurance Institute of India SEBI FERA Email or Toll free Number Through Agents 50 lac 6 months when he sells pension policies He takes up with the higher authorities NA 1.Varun ? 1. Consumer insurance council 3.00.? For Insurance industry which association to take steps to Develop Education and research in insurance? Which is the body who provides grant to Insurance Regulatory Develompent Authoruty to carry out activites. One is thru toll free number and other is what is the maximum level of complaint that can be considered and taken action by ombudsmen What is the period of award passed to the customer decided by ombudsman? Raju is a certified license holder under what circumstances he needs to hold his certified license with him that is issued by irda 1. 2.00.50 for the duplicate license issuance of duplicate license 3. Need to complete 50 hours of practical training and paying Rs. Chartered Insurance Institute.100 for the issuance of Rs. National Insurance Academy.00.13 606 Which council among the following focus on creating a positive image of the insurance industry and would also like to enhance the Consumer‟s confidence on the same ? 1. Life Insurance Corporation 2. As per Regulation for protection of Policyholder‟s interest 2002 (IRDA). 10. His agency has also expired.100 for the issuance of duplicate license 607 608 609 610 611 612 613 614 615 616 13 13 13 13 14 14 14 14 14 14 617 14 618 619 620 621 622 623 624 625 14 14 14 14 14 14 14 14 626 14 627 628 629 14 14 Which organization was formed with purpose to promote insurance education and training in India? The face of the life Insurance industry in India is ………. 3. Life Insurance Corporation LIC Insurance Institute of India Toll free No. National Insurance council 4. Those Insurer who did not created Insurance Ombudsman System IRDA Two years 15 days Only by non life COPA 24 hours Conciliation and making awards Give a recommendation 1 day Counseling Give a joint decision with the consumer forum 10 days Repudiation of claim Dismiss the case 30 days Evaluating claim settlement Give an award.Insurance Institute of India 4. 1. Need to complete 25 hours of practical training and paying Rs.000 All insurer Insurance Association Three years 20 days Some life and non life Sebi 4. Some Specific Insurer Life Insurance Council One year 10 days Only by few selected insurers Consumer Forum he plans to change the plan Consumer Forum 20.000. Which insurer will have a grievance redressal System Which regulatory body has created a call center for logging a complaints of insurance Customers Within how many years a complaint can be made through consumer protection act. In how many days from receipt of the complaint the ombudsman should pass the recommendation. the three places where he/she should follow up are – Ombudsman. Life Insurance Council A policy has been rejected by the company under direct intimation to he has to inform the customer that the the customer and copy to the Agent. Insurance Institute of India. Need to complete 50 hours of IRDA 3. Insurance institute of India Central Government Insurance Association Newpaper visiting regional office 30 lac 5 months when he represents himself as another insurer He has to explain the reasons for rejection to the customer NA 50. General insurance council 13 Mr. what is the next action of the co has broken relationship with the Agent customer Where one can approach in case of dispute IRDA The Authority of COPA is limited to what amount at the district level. 4.00. now which will apply by insurer: How Many offices of Ombudsmen the Government body has set up to Resolving insured customer‟s grievances. a number of Authorities have been formed. 10 1. To meet his month target he explains only the good points of newly launched plan to his customer. Consumer Protection Department (CPD) 4. Perfect.gov.. 3.Principal of Indemnity apply 2. Policyholder‟s Protection regulation 3. Customer Complaint Department (CCD) 1.. an adviser. 4. Sharma is a newly recruited insurance advisor. the client. Underwriters 4.14 if the complainant decides to proceed legally Switching Doing a financial planning Insurance Agent It will bring a smaller premium Excessive Premium 2. Reserve Bank of India 75% less transparent NA . 2.. The charges were not fully disclosed to the customers" is a common complaint against.in 4. 12. What is the maximum Premium/Income he can NA earn from 1 insurer? 3. 2. ethical [email protected] 1. policyholders 1. 1. 1. Underselling of insurance policies. Which of the Following authorities has been empowered to hear the complaints and adjudicate? 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. The code of conduct has been prescribed in India by... 3. 4.. Churning Insurance company Tax exemption will be lesser SA ceased too early 3. Here Mr. 15 days. General insurers. 4. Compliance officer 4. 00. insurers 3.000 from insurer. A client demands the information on the current status of a policy indicating accrued bonus. 4. 20 Days.14 634 14 635 636 14 14 637 638 639 14 14 14 640 14 641 14 642 14 643 644 14 14 645 646 14 14 647 15 648 649 650 15 15 15 651 652 653 15 15 Ravi was expecting a claim amount of Rs. 15 4. Overselling of insurance policies. Policyholder grievance Regulation 2. 100% more transparetn NA 1. 10 Days. Integrated Grievance Management System. Consumer Affairs Department (CAD) 3..Utmost good faith apply 4. 2.. Internal Grievance Redressal Cell of the Insurer. 3.. 4..ird1. All of the above. Shankar‟s action can be termed as 1. 12 2. Consumer Affairs Department.. Shareholders 3. IRDA 1... Which consumer forum can he approach? For redress of grievances of the policyholders. 3. Shankar. Those values we commonly hold to be “good” and “right”. Sharma's behavior is.16 if the insurer decides to proceed legally NA Insured person NA Tax concession opportunity could be lost forever 4. Agents 2. Ombudsman Regulation 1...in 2. Under selling of Insurance policies. Government of India. Compliance Regulatory 4. 4. Consequently. 4... Over selling of Insurance policies... 1.Lien Clause 3.. IRDA has established Insured can contact to seek the resolution of grievances they have against insurer to IRDA through: Parvesh bought a policy an endowment plan but after one year insurer.irdacomplaints@gov. Insurance Council 3.12 if it is acceptable to the insurer 3. Explaining all details of the policy to customer. Behavior that is based upon the moral judgments of an individual 2... He is a composite agent.. professional Insurance Agent & company It might fell short of actual needed and Underselling life insurance comes under unethical practices because family would suffer The main reason why an agents act of underselling insurance is treated as a unethical behavior is Ethics can be defined as… Which is not unethical behavior in below statements? Benefit could fall short of the financial liabilities 1. 15 654 655 15 Mr. If there is no agreement or settlement and the recommendation is also not acceptable to the complainant. in this case the Ombudsman will grant an award If the agent recommends the client to terminate an endowment plan and take a whole life in order to earn higher commission its termed as Unethical behavior can affect the reputation National Commission District Level State Level Mandal Level Insurance Ombudsman 1. who is unmarried and has no dependent. Found he had Aorta Surgery . shareholders 2. gov.in 3. Pankaj being a license insurance advisor has to follow code of 1. If any consumer is dissatisfied with the customer care cell of any insurance company to whom they can escalate their grievances. sold a term insurance policy and unit-linked insurance policy (ULIP) to Amar.. The insurer should provide communication within To ensure that the customers complaints are handled effectively. He feels that it is repudiated on wrong reasons. Life Insurance Company Conduct provided by: Authority 25% 50% In case of term plan the premium for CI rider shall not exceed Reduced target of agent will have what impact on churning more likely less likely An agent does 6 lacs of new business premium /Income in a year. 1. Insurance Institute of India 15 656 657 658 659 15 15 15 9 660 1.insurancecomplaints@irda.. Indisputability Clause (Section 45) apply 1. 3. 14 3.. Churning. But it was rejected. Insurance Regulatory Development 2.. Churning. A study of what makes one‟s own actions right or wrong. Grievance call center Consumer Affairs department 3. Grievance Redressal Officer. IRDA 2. Nodal officer Consumer Grievance Redress Forum 2. Compliance cell IRDA 4. 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. 30 Days. Ethical practice by an adviser.15 If it is acceptable to the complainant 2... unethical 4. Customer Grievance Department (CGD) 2.. SEBI.Complaints@irda. Correct Ans / option 1 3 4 2 1 3 2 2 4 3 1 1 1 3 2 4 2 1 3 3 2 1 2 2 3 2 3 2 3 2 . 4 3 1 2 2 4 3 3 2 2 1 1 2 1 2 3 1 4 2 1 4 4 1 2 3 2 . 2 1 2 3 4 2 1 2 4 2 1 2 3 1 1 4 3 2 2 2 4 2 2 2 1 2 2 3 1 . 1 2 4 4 4 3 4 3 2 1 4 1 1 2 1 1 4 2 2 1 . 4 3 2 3 1 4 2 4 4 4 3 4 4 2 3 4 1 3 1 3 1 3 2 2 3 1 2 . 1 3 1 2 4 3 1 3 3 1 2 1 2 2 3 2 2 3 4 . 1 2 2 1 3 1 3 4 4 4 1 3 1 1 3 4 3 3 1 1 2 2 2 2 2 3 . 2 1 3 3 4 2 1 3 2 2 1 3 4 2 3 1 2 1 2 1 2 2 . 4 4 3 4 3 4 3 1 4 3 2 3 2 3 2 2 3 3 4 1 2 3 3 3 . 3 1 3 1 4 3 1 2 1 2 3 3 2 3 1 1 3 1 2 1 2 1 3 1 2 2 . 2 2 3 2 4 2 1 1 2 1 2 1 4 3 3 3 2 1 1 3 4 4 3 2 1 2 4 1 4 3 . 1 3 3 1 1 1 4 1 1 2 3 4 3 1 2 4 1 1 3 2 4 1 3 1 2 3 3 1 4 1 . 3 3 4 1 2 2 4 1 2 2 4 2 1 2 3 1 1 1 1 3 3 2 2 3 1 2 3 . 1 2 3 2 1 1 3 4 4 2 4 1 3 1 1 2 2 4 1 2 3 1 3 . 4 3 2 1 4 4 1 4 3 2 2 2 3 1 3 4 4 2 3 4 2 4 2 1 . 4 3 1 1 1 1 1 1 4 2 2 4 1 1 4 1 3 1 3 2 4 3 4 4 1 . 2 2 2 3 3 1 4 3 1 2 1 1 2 2 3 3 2 2 2 2 2 . 2 1 1 2 4 1 1 3 1 1 2 1 1 3 1 2 4 2 1 2 4 1 1 3 1 . 3 1 4 2 2 4 2 4 2 2 4 3 2 1 3 3 2 2 3 3 4 1 1 . 1 3 1 3 3 1 2 3 3 1 4 1 3 2 1 4 2 3 1 3 3 4 2 3 . 1 3 4 4 3 2 1 3 3 2 3 4 3 1 1 4 2 2 3 3 3 1 1 2 3 3 . 4 1 2 2 2 4 1 2 3 3 2 3 3 1 2 4 2 2 2 4 3 . 2 2 3 1 1 1 3 4 3 2 1 3 1 3 1 2 1 2 2 1 1 1 3 3 2 2 NA 3 1 . 1 2 3 3 3 2 4 3 2 1 2 1 1 3 2 1 4 3 2 4 4 4 4 1 3 3 . 1 1 4 1 1 3 1 4 1 1 2 1 3 2 2 3 2 2 2 4 1 3 1 3 2 2 2 4 . 2 2 2 3 1 2 1 2 1 4 4 1 2 1 3 1 1 1 4 3 2 1 3 1 4 2 1 . 9C RING 9 27 18 10 5 6 18 12 9 B C BP D C 16MM 12 10 8 . 8 47 48 49.5 12690 8910 4700 2475 8460 5940 .3000 35 35 38 290 9000 47.