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SRQUESTION Option --1 Option--2 Option--3 Banca assurance Health plans Micro Insurance Bancassurance Reinsurance Life insurance Council People with large families people with low income people employed with the government 4 Insurance company selling products through newspaper Indirect Selling advertisements is called 5 If a client wants to compare between all financial products Individual agent then the best person he can approach is 6 In life insurance business if a person is working in calculating institutes of actuaries of India premium rates of insurance products, then he is mostly likely a member of Awareness Direct Selling Corporate agent Bank insurance institute of India Charted institute of insurance 7 In term insurance if Critical illness rider claim happens then what will happen to existing policy 8 If insured gets the two advance payment in the 5yrs & 10th yr and in the maturity he gets rest of sum assured. What type of policy it is CI benefit will cease CI benefit reduced from existing sum assured CI benefit continues Money back policy Convertible plan Term plan Making false insurance claims. Paying excessively for insurance cover. Age of the group 1 Weekly premiums are generally collected for which type/range of plans 2 If insurer want to cover the risk which is beyond their limits they will approach 3 Which market areas do Micro Insurance product concentrate 9 The concept of indemnity is based on the key principle that Insuring existing losses. policyholders should be prevented from 10 For assessing the risk of a group health insurance policy, Group lifestyle which of the following information is the most critical 11 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? Employees 60000 75000 100000 12 Current regulation allows the bank to act as Insurance agent for 13 Party “A” makes offer to “B” & “B” conditionally accepts the offer than the action is considered as Giving insurance policies to Banks. Selling insurance policies through Banks. Giving guarantee to policies by Banks. Counter offer Response offer Partial acceptance 14 An insurance agent is intermediary between…. Client and Insurance Company Insurance Company and IRDA Client and IRDA 15 Which of the following do not include the channel of indirect marketing? individual agents bancassurance insurance brokers 16 Human beings need life insurance because.................. death is certain death is uncertain the timing of death is uncertain 17 Life insurance the risk is determined on the basis of .......... future data past data statistical data 18 Life insurance company determine the level of risk based on 19 Insurance business is classified into three main types: 20 Amit is looking for term insurance plan for protection of his family, he is advised to approach to: Future expenses. Life, Non –life, Micro Insurance. Property Insurance Claim experiences. Life, Non Life, Miscellaneous Life Insurance Present expenses. Life, Non life, Re-insurance. Health Insurance 21 Insured can contact to seek the resolution of grievances they [email protected] have against insurer to IRDA through: [email protected] [email protected] 22 23 24 25 Increase the profitability Non-Life Insurers only Bancassurance. At an early age Ascertain the death ratio non-life and life insurers Individual agents. Anytime in life 26 27 28 29 30 31 Law of Large number helps the insures to Micro insurance is transacted by E-sales refers to sales of insurance products through The timing of death is uncertain, so when one should take life insurance? What is the maximum cover that can be provided in micro insurance? Non Government organization operate in insurance market to When insurers sell through advertisements it is What main expense is eliminated if insurer moves to selling online If insurer want to cover the risk which is beyond their limits they will approach Sahil was recently appointed as a director of a life insurance company. In accordance of IRDA code of conduct, this will prevent him from carrying out the role of Calculate the premium Life Insurers only Insurance brokers. At the time of uncertainty 5000 10000 50000 to make regulations indirect selling Commission to help IRDA direct selling Income Tax to connect the buyer and seller through intermediaries Marketing Cost Bancaassurance reinsurance Life Insurance council Chief Actuary Insurance Agent Nodal Officer QB-ENG-Page 1 of 54 Option--4 ANS Term Insurance 3 IRDA 2 people with high income 2 Wrong Selling 3 Broker 4 Insurance institute of risk management 1 No change in policy. 1 Endowment policy 1 Profiting from insurance. 4 Medical history of group 3 5000 2 None of the above. 2 Modified acceptance 1 Insurance and Re-insurance company. 1 through internet 4 Death is the solution. 3 mathematical data 2 2 3 Targeted bonus rates. Life, Health, Micro Insurance Liabilty Insurance 2 [email protected] Declare the bonus Self help group Internet. At the time when Advisor takes the decision 100000 to make premiums through brokers Reinsurance IRDA 4 1 3 4 2 3 3 2 1 2 Underwriting manager 2 QB-ENG-Page 2 of 54 32 What main expense is eliminated if insurer moves to selling online 33 Who is the customer of a Re insurer Commission Income Tax Marketing Cost High Net worth Individual Insurance Companies Licensed Insurance Agents 34 Law of large number helps Insurer to analyse which key area Administrative expenses in fixing the correct premium to remove adverse selection 35 categorising between Lung cancer and smoking 36 What is the death benefit if the person has multiple sums assured under different policies? 37 Which of the following risks are insurable? lung cancer is peril and smoking is a hazard Sum Assured will be paid as total of all insurance plans Financial Risk smoking is peril and lung cancer is hazard Sum Assured will be paid for only one plan with highest SA Non-financial Risk Both the statement is correct 38 Sahil & Vijay , both health status same, however Vijay was triggered with medicals. What are the reasons? Difference in age Difference in family health status Difference in hobbies 39 The type of risk that can be insured against is 40 In insurance terms, the risk of suffering a disability is best described as what type of risk? 41 How are perils and hazards normally distinguished under term insurance policies? Speculative Risk Financial. Pure Risk Fundamental. Pure & Speculative risk Homogenous. Perils are medical factors which influence the risk of Perils are risks that policyholders will die before a dying and hazards are lifestyle activities which specified date and hazards are factors which could influence the risk of dying. influence that risk. Perils are factors which affect the risk being insured and hazards are the size of the risk being insured. 42 The Institute of insurance and risk management along with insurance education does what more 43 Mr. Kunal used to participate in Car race. While taking up the Insurance policy he disclosed this information. What kind of hazard does it refers to 44 Law of large numbers is worked out by which of the 45 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? 46 What is the main objective of taking the life insurance policy? Regulation Redressal Research Physical hazard Fraudulent representation Moral hazard Pooling of risk Maintaining insurable interest With utmost good faith Under no circumstances Under conditions of the reinsurer As directed by actuary Tax benefit Savings Investment 47 Vijay received his policy bond on 11th June, 201 Due to some No, as 15 days period is over personal problems he has decided to cancel the policy on 8th July, 201 Can he cancel or return the policy? Yes, as it is within 1 year No, as 20 days period is over 48 49 50 51 No SA will be Paid. Both are correct The “Risk” contains…. Grouping the similar risks by Insurance Company is called as….function of Insurance works on….. The 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----------------52 Which of the following can be an example of moral hazard? certainty of event Grouping of Risk Risk Transfer Risk retention Uncertainty & level Risk Grading Risk avoid Risk transfer certainty and frequency Risk Assessment Risk retention. Risk avoidance a family history of heart disease a person working in a chemical factory a person consuming alcohol 53 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 ? Under the category of Pure risk Under the category of peril risk Under the category of particular risk 54 Ram works in a Fire cracker factory. He stocks the cracker in Speculative. his house. He runs which type of risk. 55 An Insurance company pools the premium collected from Pure Risk several Individual to insure them against similar risk is called: Particular. Financial. Pooling of Risk Insuraable Risk 56 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: 57 which of the following refers to specific event which might cause a loss ... 58 The consequences of these risks which will affect specific individuals or local 59 Pure risk is classified under 60 A person suffering from lung cancer is a smoker. Here smoking can be termed as 61 Moral hazard reflects the .... Pure Risk. Particular Risk. Financial Risk. Peril Hazard Physical hazards Pure risk Financial risk Particular risk Economic risk Peril Speculative risk Hazard Financial risk social need intention and attitude of proposer habit and hobbies of proposer occupation and residence of proposer 62 Mr X has Pancreatic cancer due to drinking .What is Alcohol for him a hazard a hazard & peril a risk QB-ENG-Page 3 of 54 Reinsurance Non Government Organization Non of the above Both the statement is incorrect None of the above None of them 1 2 2 1 1 1 All of the above Non Financial Risk Speculative. Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout Repository 4 2 1 2 3 Peril Randomness 3 4 As per company policy 1 Protection 4 Yes, as it is within 3 months emotional loss Pooling of Risk All of the above. Risk tolerance 1 2 4 1 2 A teacher working in a primary school. 3 Under the category of Risk Transfer 1 Fundamental. 4 Sharing of Risk 2 Insurable Risk 1 Uncertainty Physical hazard Insurable risk Uncertainty medical and personal history of proposer a peril 1 3 4 1 1 1 QB-ENG-Page 4 of 54 63 A client has taken an endowment policy with SA- 800000 and vested bonuses- 60000. He paid 8 annual premiums in the 30 year plan. Calculate paid-up SA? 64 The cooling period allows the policyholder to withdraw the policy witin 15 days of ? 65 Under what type of insurance policy dose insurable interest need only exist only at the time of claim 66 A policy has two nominations. What amount should be given to the two nominees 67 Mr. X is illiterate and is buying insurance. Mr. Y fill up the proposal form on behalf of Mr. X and also endorses and signs an attestation in the proposal form. In addition to all document what else should be taken 89333 273333 289333 risk commence proposal form filling stage after policy received Liability Insurance Marine insurance Motor insurance 10% to each nominee 25% to each nominee Mr. X photograph Mr. Y photograph Nominee one should not be paid more than nominee two Mr. X thumb impression It is a money back policy It is paid up Premium with Interest Premium less charges 68 On Maturity of an insurance policy only 25% of the amount It is assigned can is paid. This is due to 69 A person paying 1 lakh yearly premium discontinue the policy Premium Return after the first year premium and surrender the same on the second year what will be the surrender value 70 Jay buys a policy on the life of Nazia. Who is Jay? 71 A Client can withdraw the policy on receiving under free look period within ____ number of days 72 For Logging a policy , which of these is a standard age proof Baptism Certificate or Ration Card ? Life Assured Nominee Ration Card Baptism Certificate Ration card and baptism certificate are Standard age proof 73 The risk commencement date of policy is 74 Principle of Indemnity applicable to 75 Party “A” makes offer to “B” & “B” conditionally accepts the offer than the action is considered as 76 The condition that the policy holder should pay the premiums regularly is mentioned in 77 Except Surrender, how one policy holder can transfer money to a third party , barring Nominee? 78 Insurance Contract without any Insurable Interest will result as 79 a Policy holder takes a insurance contract for 30 years and the SA reduces after 25 years what could be the likely reason After the U/W process Life Insurance Counter offer Premium receipted General Insurance Response offer Policy is dispatched Both a & b Partial acceptance Policy document Prospectus Proposal form By Will By doing Assignment Claim Wagering Contract Legal Contract Void Contract No bonus accumulated Age proof was substantially wrong Policy has become paid up 80 Amit is illiterate. He wants to take policy & his friend Surya helps him in knowing the question and filling the proposal form. Apart from Amit's left thumb impression , what should Surya should do ? 81 A life insurance policy can only be made paid up if what particular policy feature exists? 82 Harish takes a life insurance policy for Ramesh. Which of the following statement best describes the principle of Insurable Interest. 83 Limit of nominees can be attached to a term insurance policy Surya's Photograph Surya also has to put his left thumb impression along Surya has to give his age proof along with amits thumb impression with amit's age proof Indexing contribution. Nomination facility. Rider benefits. Ramesh declares all his liabilities Ramesh is elder than Harish Ramesh owes money form Harish one two three 84 In a whole life plan - The policyholder's responsibility to give at the beginning of the contract disclosure 85 Mr. ABC buying Term insurance policy, insurer should mention operative clause Ombudsman address in which part of policy document? through out the contract Revival stage Preamble Information statement 86 One of the genuine Reason for surrender of the policy could be 87 To be a valid contract ,the declaration is necessary in which document 88 Types of assignment 89 The insurer requires the age proof for calculating the __ new product from competition advisor entices the policyholder to surrender Wants to buy a car Policy Document proposal form FPR Absolute SA Term assignment Risk assessment Conditional Identity verification 30 Proposer 15 QB-ENG-Page 5 of 54 50 Y thumb impression 3 Any one of the above 2 Nothing as surrender is not allowed before 5 policy years 4 3 Appointee 20 Ration card and baptism certificate are both Non standard age proof policy is received Neither a nor b Modified acceptance First premium Receipt not possible to transfer non voidable contract 2 2 2 2 1 1 2 1 Its a ULIP Plan 3 Only a deceleration has to be given by Surya 4 Savings element.219333 3 on premium being paid 3 Travel insurance 2 There is no specified limit like that 4 Mr. Harish suffers financial loss incase of death of Ramesh not specific Beginning and also at revival stage 4 3 4 1 schedule 3 Has Financial Problems RPR Absolute & Conditional Financial assessment 4 2 4 2 QB-ENG-Page 6 of 54 . Consensus ad idem. same thing and in the same sense which is called Legality of an object. But the Surrender Value in policy A was higher as compared to policy B because 92 If someone of age group 15 /16 having a contract with insurance companies that contract would fall under which category 93 The obligation of the insurer for the whole life policy is mentioned in 94 In which kind of policy the insurable interest should exist at the time of claim only 95 The clause of indisputable is applicable from inception of policy to 96 Insurable interest on one's own life limited upto Policy A has a higher term than Policy B Policy B has a higher term than Policy A Policy A has been assigned Valid Invalid Void operative clause Preamble Proviso Motor insurance Marine insurance Liability insurance 4 years 2 years 3 years 20 times of Gross Annual income limit depends upon the insurance company 10 times the families annual income 97 The concept of indemnity is based on the key principle that policyholders should be prevented from Insuring existing losses. this would be mentioned in which part of the policy document ? Proviso Schedule Terms & conditions 113 In a pension plan illustration what are the parts which shows the benefit for an annuitant. 106 Net premium is equal to Premium plus interest earning Risk premium plus interest earning Premium minus interest earning 107 Principle of utmost good faith will operate in existing policy Every time premium is paid If the policy has lapsed and it has to be revived. his wife Income protection Nelima and no child. Operative clause. Open market option part Annuity part Guaranteed and non guaranteed part QB-ENG-Page 7 of 54 . Preamble. 2011. In which main section of the policy document will this normally appear? Attestation. The insurance company rejects the proposal form on what ground ? the residence proof is not from the India sachin is not attained legal age to enter a contract Endowment policy do not have with profit feature 99 When will the Principle of Utmost Good faith apply in Term insurance plan? 100 Insurance company comes to know that Mr A had been issued a policy earlier with extra premium charged . Making false insurance claims. Which document was referred by the insurer to come to this conclusion 101 An agent surrendered the policy of a client on 10 Feb. The revival procedure would require the which of the following 105 In a life insurance policy it is later found that the person doesn‟t have insurable interest then the contract is payment of outstanding premium with interest . when can this client buy new plan? 102 When does insurable interest exist in life insurance contract ? Throughout the policy contract before premium deposit before receiving policy document Proposal form Medical reports Client confidential reports After 5 years within one year of surrendering can never buy another policy At the inception of the contract At time of death claims during the survival benefit payouts 103 If the sum assured remains the same. Paying excessively for insurance cover. Only reinstatement fees has to be paid proof of good health & in some cases reinstatement fees expired reviewed Upto two years the premium with penalty can be waived off . If the insured person falls sick and is admitted to hospital. what will be impact of net premium if the age of the policyholder increases It rises It falls It remains constant 104 In case the customer has stopped making payment for the premium of the policy. What will he get? 111 When net premium is adjusted in order to calculate the gross Loading premium . 91 Policy A and Policy B were surrendered on the same day after paying the 22nd instalment of the premium. this process would be known as what ? Inheritance planning Investment efficiency Principle amount Discounted Value with persistency bonus Discount mortality charges 112 A life insurance policy is issued with a Lien . Void 108 Both the parties to a contract must agree and understand the Consideration. which should be his priority in investments? 110 Amit has taken a G-Sec and has parted with it mid way as he Discounted Value required the money with the intention of not getting the interest. 109 Amitabh is married and he has as his dependants .90 A policy document for a money-back policy includes the statement „the proposal and declaration signed by the proposer form the basis of the contract‟. 98 Sachin who is 17 years wants to buy an endowment with profit policy . Submitted KYC documents are not valid for Sachin After receiving the policy document 4 2 1 Medical referees report 1 wherever he wants to buy 4 Through out the Term of the plan 1 Gross premiums increases No revival is possible when the policy iis lapsed Valid 3 1 3 Risk premium minus interest earning 3 If the insured person changes his job. 3 Policy B has been assigned 2 Illegal 3 Endorsement 1 Travel insurance 2 5year 2 No limit to self life 4 Profiting from insurance. Long term savings Principle with persistency bonus Interest add ups Endorsement commutation part 3 1 1 1 2 3 QB-ENG-Page 8 of 54 .Terms and conditions. 2 Acceptance. He has paid premium for 4 years and he could not pay premium for 5th and 6th year. 124 The principle of utmost good faith applies to. Insurance can not be used to make a profit Insurance should not taken by high risk people. 119 The principle of utmost good faith is not applicable to Facts of common knowledge Facts of law Insurance can not taken by politicians.... Now which of the following options will apply to him? The policy will be renewed on the existing terms and conditions. He feels that it is repudiated on wrong reasons. 127 Which of the following statements in correct in connection with assignment? Assignee cannot make fresh nomination in the policy The assignor need not be major at the time of assignment.. Manish has a money back policy and a whole life policy. Which consumer forum can he approach? National Commission District Level State Level 116 Rajesh is 34 years old and having 2 sons.. He Mr.. Rajesh belongs is _______.000 from insurer. a foreclosure notice Policy will continue to the end of term and Mrs Swetha would get back her maturity claim after deduction of loan amount He can‟t take loan from money back but can avail loan from Whole life policy He regularly pays premium so he can take loan 133 Mr. What is your suggestion? He can surrender whole life policy and can take loan from Money back policy QB-ENG-Page 9 of 54 . 12.Akash filled the proposal form but before submitting to the Consideration in the contract company he discussed with the agent that he is not sure whether he can pay for 15 years . 25000/- Rs. even though he drinks and smokes he ticked “NO” in smoking & drinking column of proposal form.. In the 7th year he approaches the company to renew the policy. Josh was filling the proposal form but as his mother was sitting beside him.. What will valid for 6 months be the validity of the insurable interest in this case ? The insurable interest between the car and karan is valid for 6 months The insurable interest between the car and karan is valid until he owns it 131 Mr. Shanth can take loan which should be certain percentage of the surrender value of the policy.. Rajesh has taken policy from ABC insurance company for Rs. Middle Level Top Level Low Level Non disclosure of material facts. What will happen to her policy? He has breached the contract with non-disclosure of He has breached the contract with concealing the the fact facts He has breached the contact by fraudulent information Policy will be foreclosed by the insurer after sending Policy has to be surrendered only my Mrs Swetha.. 2500/- Rs.. Vineeth and Sumith. 128 Mr.Shwetha has taken a loan from her policy. Shanth has taken an endowment policy of 20 years. At this point of time can Shanth take loan? Mr. Jim. 50. A person having a policy on the life of another should make a nomination. Mr. amount of premium being paid If it is a proposer case. is bought or later.. what is bonus amount? 122 In an insurance contract 'consideration' means. Section 45 of the insurance act speaks about assignment... There is no concept of loan in insurance policy 129 Mr.. mode of premium payment Rs. 120 The factor involved in calculating Surrender Value of the Policy would be 121 Mr..000 premium per year. 250000/- proposal form Advisors confidential report premium 123 a classic example of Non Existing Insurable interest would be .Karan who has to go to abroad for 6 months on an official The insurable interest between the car and jim is work decides to leave his car with his friend Mr.Shanth has taken an endowment policy of 15 years with ABC insurance company. Later stage she neither paid back neither the loan nor she paid the premium for a very long time. 500000 Sum Assured by paying Rs.... This attitude affects which part of the contract? Capacity to contract Consensus ad idem 130 Mr. Shanth cannot renew the policy the policy may be renewed on different terms and conditions 126 Which of the following statement is not true in connection with nomination? The life insured can nominate one or more than one Nomination can be done either at the time the policy person as nominees. Which type of plan can ABC propose on Mr Janki's Life ? Surety insurance Keyman Insurance Partnership Insurance 115 Ravi was expecting a claim amount of Rs. This indicates ? 132 Mrs. Facts those are not material. Company declared 5% Simple Reversionary bonus. The level of risk appetite.114 The employer ABC has an insurable interest on his employee Mr Janki who is their chief financial executive . 00. Shanth will not be granted any loan has paid premium for 10 years and now the policy is in force. surety-co surety employee-employer husband-wife only insurers only proposer both insurers and proposer 125 Mr. Concealment of a material fact Fraudulent misrepresentation of facts.. 118 Principle of Indemnity denotes…. But it was rejected. He is planning to take some loan from both the policies as he from both the policies was regularly paying the premium. 117 Under this situation may leads to breach of the duty of utmost good faith. 1 loans are allowed only in term plans 2 Offer and Acceptance in the contract 4 The insurable interest between the car and Jim is valid until Karan‟s return He had done an innocent misrepresentation Policy can be converted into non profit plan and closed by Mrs Swetha He can‟t take loan from whole life policy but can avail loan from Money back policy 3 2 1 3 QB-ENG-Page 10 of 54 . Shanth can renew the policy only on the approval of the insurer 3 The section 39 of the Insurance Act 1938 speaks about the nomination. 5000/2 claim 3 brother-sister 4 neither insures nor proposer 3 Mr.Debtor Insurance 2 Mandal Level 2 High Level 1 All of the above. 1 Policy should have a saving element 4 4 Rs. 3 Conditional assignment and absolute assignment are one and the same. 4 Indemnity bond to be signed with every life insurance proposal form All of the above. now claim money would be payable to: Opertaive Clause Proviso Clause Legal heir of the life assured Appointee Only 149 Parvesh bought a policy an endowment plan but after one year. He has paid the premium for 9 years. Contract comes to an end. Also. Moneys will be forfeited. His hospital bill ran to Rs 50. Payment of Premium by Life assured & payment of Sum Assured by 148 Gaurav is working in MNC at the age of 32 bought an Nominee only Endowment Plan. Operative clause. 140 Lalu Yadav is having a saving plan with 20 years tenure. He falls sick and got hospitalized. He calls his agent to suggest under which of his policy he could take a loan from .134 Mr. He died in road accident. He has paid 5 annual premiums but due to financial crisis is unable to make future premium. Value contract. He had nominated his 1 year old daughter Saanvi. the insurance company found that Parvesh had undergone Aorta Surgery . Nomination transfers the title while assignment does not. Money back. 142 Under what circumstances the surrender of a policy should be When a client have been sold the right solution. Now he needs to take a loan for personal requirement. He claimed this amount from his individual policy. This would be classified into which type of assignment : When a client is holding a product having good value for Representation of facts by the policyholders is true. When cheque amount is deposited in insurer account. A policy document has been stamped by insurer. the payment would be payable to: Legal heir of life Assured Debtors 147 Which clause lays down the mutual obligation of the parties Lien Clause regarding. Raj has taken a policy of 15 year term. but not able to get the Signature of her appointee due to unavailability of his spouse . he placed the request with his company for group policy claim. 139 When is premium considered / deemed to be paid? When insured writes a cheque in favour of insurer. if Death claim arises before the payment of the surrender value. When the cheque is deposited with insurer office. Deemed contract.In this case the insurance company will make the contract null and void based under which of the clauses/ principles of Insurance act ? Principal of Indemnity clause Lien Clause Standard Age proof Government authentication proof 10th year 15th year Nominee Indisputability Clause (Section 45) apply 150 Jyoti is submitting is copy of PAN card as age proof for buying Non Standard Age Proof A money back plan . Proposal Form is signed. Pankaj Loan assignment assigned his Insurance policy to Manish of Rs. The agent would suggest from which of the plans of Rakesh ? Term Plan Money Back Plan 146 On foreclosure.000.after 5 year. not a valid contract? 144 Manish took a loan from Pankaj for Rs. which was rejected. 136 Shamsher has a health insurance policy of Rs 1. 141 How assignment distinguishes itself from nomination? Nomination does not transfer the title while assignment does. Conditional Assignment Loan Agreement 145 Rakesh has bought an Endowment. First Premium Receipt is issued. Nomination is made after policy is issued while assignment is done before it is issued. 00. The reason for rejection is.000 individually and from his company for Rs 2. His policy Acquires surrender value. But now unfortunately he has lost his job. 137 Payment of premium and sum assured are laid down in Heading of policy document. Indemnity contract.000. 138 An insurance contract commences when Quotation is signed by proposer. What can be the best solution from the following ? Converting the policy to Term policy Converting the policy to Paid up Converting the policy to money back 135 A contract exists between insurer and proposer when A proposal has been accepted by insurer. Term & Endowment Plan Annuity Plan .This would be categorised into which type of age proof ? 151 In a 20 year with profit policy. persistency Bonus is paid at 1 year the end of QB-ENG-Page 11 of 54 .10 lac. When the policy has been miss sold and do The life assured is major. 00. Proviso of policy. A policy document has been received by the policyholder.10 lac as a security with the agreement Of when Loan is fully paid.. He is unable to pay the premium. policy title will be revert back to name of Manish . recommended by 143 What key event is most likely to make an insurance contract The circumstances are legitimate. 3 Policy Document is received by policyholder. Absolute Assignment 1 3 4 2 Annuity Plan 1 forfeited the Premium Schedule of Policy 2 2 will be Payable to Saanvi (Nominee) at the age of 18th 2 Principle of Utmost good faith 1 Proof of Income tax payer 20th year 2 4 QB-ENG-Page 12 of 54 . 1 Rolling contract. 2 3 4 Nomination need not be informed but assignment needs to be informed to insurer. When the client is enjoying good There is no insurable interest attached to the policy. When cheque is posted/couriered by the insure. 1 Schedule of policy document. Acquires paid up value.Converting the policy to whole Life 2 An insurer has made another proposal. the first one is net monitory contribution to the family per annum and the second would be ? 165 TWO FRIENDS HAVE TAKEN SAME POLICY BUT THEIR PREMIUMS ARE DIFFERENT WHY? 166 Till what period is the interim bonus valid 167 Annual premium of insurance product is Rs.000. the contract will be Consideration Consensus ad idem Capability to perform Invalid unconditional valid 158 Mr xyz accepted the contract formed by Mr Y . A's surrender value is higher than B. After payment of 22nd premium both surrender the policy Mr.Is this a consideration an offer & acceptance voidable contract 159 Mr. He The Policy was issued with a Lien died in eight months from the inception date . what is the risk assessed Bank Fixed deposit rate discount rate Estimated life expectancy AGE MEDICAL SA as long as the policy is inforce Till the next declaration of bonus 7680 Moral Hazard Till the next validation date 8000 8320 Medical Hazard Occupational Hazard 169 In accordance to money laundry regulation. The insurance company would consider this as which of the following ? Not standard & will accept the proposal Will reject the proposal 153 If a customer has mentioned he is a drinker in the proposal form. A wants insurance cover . A & B started an endowment [policy on the same date paying same premium on quarterly mode. the NRI should No Risk be categorized to what type of customer? 170 Mr. What could be the reason . X proposal form it is found out that there is a criminal case against him for fraudulent activities. both the parents of a policy holder died in their early 30s due to Heart disease.152 Vikas submitted an Age proof from Village Panchayat while Standard and accept the proposal taking a Term plan for Rs 5 Lakh SA . as per Council of Actuaries which authority is his profession related to Low Risk medium Risk Insurance council of India Insurance institute of India 171 what is the special report that is asked by the underwriter HLV report from the officer of the insurer? 172 The insurer requires agent confidentiality report in order to ? To calculate Premium Agents confidential report moral hazard report To Calculate the commission due for the agent To verify the Plan proposed 173 A human being is An economic asset 174 Suraj had taken an endowment plan for Rs 10 Lakh SA . What type of risk would this fall in schedule Preamble Terms & conditions Nominee is spouse Nominee is Minor LA is minor Fundamental risk Physical hazard Moral Hazard 163 How much insurance can be given to a working person ? As per Human life Value 10L 50L 164 While calculating Human life value (HLV) in simple method two components need to be kept in mind . What kind of hazard you may categorize? Moral Hazard financial risk Physical hazard QB-ENG-Page 13 of 54 . what could be the reason A's term is more than B B's term is more than A A is healthy & b is not 160 Payment of SA on happening of an event of dates premium payment . the insurance company can exclude this hazard and mention it in which part of the policy document? Provisio Endorsements Operative clause 154 What to be considered while taking first policy 155 Which of the following is a Non Standard Age Proof Personal Details PAN Card Family Details Certificate of Baptism Employment details Certificate from Village Panchayat 156 In the insurance contract the risk cover is given in return of the 157 If a life insurance contract is established without any insurable interest in existence .all form part of 161 When is An appointee is required in the Life Insurance plan . The Insurance company did not pay the Full SA . But he is drinks alcohol frequently . the reason could be ? 162 While underwriting Mr. 32.nominees . Has a capacity to generate the income The bonus for the policy had not yet declared Has a finite life span The policy had only maturity claim provision 175 Mr. Instead paid out Rs 5Lakh .lien . 4% loading on Quarterly mode of payment What is the quarterly premium? 168 As per the norms of risk assessment by underwriting.Sunil is doing premium calculation for his company. Will accept with a lower SA 2 Terms and Conditions 4 All of the above Certificate from School or College 4 Unconditional acceptance 1 3 voidable 1 consensus ad idem 2 A' financial condition is better than B 2 Endorsements 1 All cases 2 No Risk 3 1 Crore 1 Estimated amount at retirement 2 ALL THE ABOVE 4 2 none of the above 8500 3 Physical Hazard 4 High Risk IRDA 4 1 medical report 3 To help the underwriter to asses the Risk All of the above The death was due to accident 4 4 1 Pure risk 2 QB-ENG-Page 14 of 54 . But shailesh pays more monthly payment than ankit for same amount of policy. Conducting interviews... Occupation and Residence of Proposer. Value contract.1 crore. 183 Micro insurance is made specifically for people from.. Why? 187 In a case. Non Voidable Middle class. Physical hazard. Proposal form. Habits and Hobbies of Proposer. so insurance can be given Only lung is affected so health insurance can be given. Underwriter will verify this case for which one of the following: QB-ENG-Page 15 of 54 .. as he is old years had requested for an Insurance cover for Rs.. Kumar‟s wife is suffering from blood cancer. this contract will be 186 Shailesh and ankit want to retire in the age of 65yrs. Invalid Low income. Doctors lost their hope on her live. This normally represents a bonus covering what period Policy start date to the 1st Anniversary Policy start date to the end of the 1st calendar year Previous valuation date to claim date 179 While calculating HLV in the incremental method ... renewal receipt brochure moral hazard physical hazard mental hazard the risk associated might increase the risk associated might decrease 195 What does the mortality tables contains ? Tables of death occurring in various circumstances Tables of details of various probabilities of death the risk associated might not be harmful Tables of details of underwriter‟s calculation on death 196 Mr.. Moral hazard. Indemnity contract.. the underwriter should ask beyond agent‟s confidential report. Present value of future earnings. the decision on the proposal has to be communicated to the Proposer within how many days of receiving the proposal by the insurance company Actuary Underwriters Sales Officer 7 days 10 days 15 days 178 When an interim bonus is paid under with profit policy. the underwriter felt that the risk associated with the person would decrease with time.176 Insurer appoints a candidate of this professional qualification . Proposal form. as coverage is high and brother‟s son is the nominee 197 Which of the following information does not appear in the method and frequency of premium payment First Premium Receipt? 198 Mr. life insurance contract is Sandeep has taken another policy from XYZ Life Insurance Company Vishal is older than Sandeep Sandeep is earning more then Vishal Physical Hazard Moral Hazard SA is too high Insurance contract. along with future income.... Null and void Invalid Voidable Shailesh is older than Ankit. 193 Mr.who decides the amount of premium in insurance products 177 as per IRDA regulation . He would like to take an insurance. Shailesh‟s income is more than Ankit‟s income Shailesh family is larger than ankit's family A clause A Lien A Loading Anti Money Laundry Moral Hazard Capacity of paying future premiums. Intentions and attitude of Proposer. What will be most possible reason? 181 For which of the following reasons.. Vishal is asked to undergo a medical check up but Sandeep is not asked to do so. 189 What is the main source for insurance company to get information of proposer? 190 Moral Hazard reflects the ……. Insurance company rejects this proposal on the grounds of…….. What is your suggestion? Time of death is uncertain. 182 With reference to the principle of indemnity a life insurance policy is a. He can take insurance after submitting health certificate Date of commencement of last premium Date the policy matures B.. 184 If Insurable interest does not exists at the time of inception of the life insurance policy then. Mr.Santhosh working as a head master who is around 52 A .. He insisted that his brother‟s son should be the nominee not his wife. Interest.. Moral hazard. High income. 191 Income replacement methods equates Human Life Value (HLV) to 192 The underwriter can get the required information about the proposer in. Ramesh works in a mining company. 194 Lien is imposed on a policy when underwriter feels that. So he is exposed to.. Advertisements. number of years of work & future value of earning potential which is the other most important factor taken into consideration ? Inflation. Future value of Present earnings. Valid 185 If a contract is signed by a 15 years old boy. Guptha is recently detected with lung cancer. then he would accept the case with 188 Mr.. Present value of previous earnings. Kumar would like to take Life Insurance policy on wife‟s name in order to get monitory benefit.. as he is 52 years old and wife is not the nominee C... Discount rate 180 Vishal and sandeep applied for a health plan in XYZ Life Insurance Company. Advisor 1 30 days 3 claim date to next valuation date 3 Compounding. 2 the risk associated might be general 2 Tables of details of actuarial calculation on death 4 Cannot give insurance for health reason Date the last premium will be paid D. Moral hazard. Null 3 Valid 1 Shailesh is a Businessman and ankit is a government employee 1 Level Premium 2 2 Physical Hazard 2 Telephonic conversations. 3 Vishal is working in a MNC 2 Pure Risk 3 Major life contract. as he is a head master and 52 years old 2 4 2 3 QB-ENG-Page 16 of 54 . 3 Affluent class. 1 annual report 1 Ethical hazard. Future value of previous earnings. 2 Medical and Personal History of Proposer. Also he wants Term Plan a modest amount if he survives through the term.2 50000 100000 Convertible plan . This amount is called: 209 Which one of the following is not source of information about Proposal Form the proposer required by the Underwriter . Simple Revisionary bonus Insurance is taken out by an individual with dependent Net Premium. Compound Revisionary bonus A nominee is not a dependent. Minimum Possible Loss. Preamble. He has recently shifted his home from New Delhi to Noida.000 life insurance policy 221 What is maximum level of Insurance premium for which Income Tax benefit is available 222 Mr. X wants a life cover for the term of 20 Yrs. claim form Proposal Form . has not insured himself . Is it a 215 ACR is prepared by Insurance agent. under how much time the 7 days insurance company has to revert to the proposer with its decision? 217 Anil is going to take life insurance policy in which total annual Premium is Rs 32000/. Minor Possible Loss. so as to reflect bonuses is called Indemnifying Indexing Loading 219 Underwriter is assessing the risk for the individual who already is already a policyholder and previous policy was accepted at non standard rates. The insurers rejected the claim. 220 What tax rate. While writing a proposal form he hide that he practices mountaineering. Persistency Bonus 10 days 7820 15 days 8000 8320 218 The process of adjusting the amount of Life Insurance premium. if any.Feroz has applied for an insurance cover of Rs. Sadly he died in an accident while climbing Mount Everest. Which plan would you suggest to Mr X? 25000 Endowment plan QB-ENG-Page 17 of 54 0. 203 Ram Lal is an insurance policyholder. Level Premium Risk Premium Insurance agent confidentiality report Names and address of the proposers friends and colleagues 210 Manish being a sole earning member of his family . a certificate from the Village Panchayat. He pays the Gross Premium same Amount in every year through out the policy term . What will be the quarterly premium ? Loading of Premium.and there is 4% frequency loading for quarterly mode. This could fall under which category os Hazard in insurance ? 211 Who is the primary underwriter of the clients 212 Certificate from the village panchayat 213 What will be lien amount in 3rd year as compared to the 4th year of lien. What is the reason for rejection? Risk Analysis Department Classification of Risk Department Underwriter The occupation of the person The financial history of his family The income that he earns Innocent misrepresentation. The Company will accept or reject the proposal only after confirming from one of the following agencies Financial Inspection agencies Specialized inspection agencies Credit worth inspection agencies 200 The responsibility for classification and analysis of the proposal form lies with whom? 201 In underwriting the economic value of the person is determined by what? 202 Rakesh purchased a life insurance policy. He wants the address to be changed. If Mr X wants a higher SA then the underwriter would ask for additional report apart from ACR .1 0. 208 Ramesh bought an endowment plan for ten year. Concealment. Major Possible Loss. Risk Premium. Endorsement.4 Cr. But he is looking for insurance for his son who is student . will be applicable to a life insurance Nil policy holder for the maturity proceeds of a Rs 50.199 Mr. the branch head will have to do what ? Physical Hazard Moral Hazard Occupational hazard Insurer's doctor Will be considered as standard age proof It is higher Underwriter Will be considered as non standard age proof Decrease Agent Will not be accepted Slightly higher Standard Age Proof Non Standard Age Proof Prepare a more detailed report Prepare a Moral Hazzard report Standard. 214 A person submits as age proof. This change in policy document will be effective through? 204 When an underwriter may consider Moral Hazard? Terms & Condition. which of the following documents will be helpful to assess the risk premium Quotation . An individual is proposing SA 15 times his annual income. if accompanied by agents signature Prepare a detailed investigation Report 205 Level Premium is calculated based on 206 MPL abbreviates 207 Which one of the following bonuses is given by insurer as an incentive to the insured to for long term: 216 After receiving the proposal form. Fraudulent misrepresentation. Insurance Investigation agencies 2 Actuary who analysis the risk 3 Human Life Value 4 Non-Disclosure. Maximum Possible Loss.3 150000 ULIP 3 2 3 QB-ENG-Page 18 of 54 . 1 0. 3 Schedule. Interim bonus Net Premium 3 1 4 3 2 Medical of examination report 3 Medical hazard 2 Nominee Will be verified first Slightly lower 2 2 Village panchayant does not issue Age proofs Prepare a Client Confidential Report 3 2 3 30 days 3 8200 3 Reviving 3 Policy Document. Gross Premium. 3 A medical check up is carried out nearby place of residence. whom he dreams will one day become a doctor.00% Commitment to need .00% His future aspiration QB-ENG-Page 19 of 54 5. for the death claim of the policyholder . where should the agent' principal loyalty lay? 236 Hari wants a constant life cover till his 31st birthday. one person pays more premium because 233 Adverse selection occurs when a group of individuals try to Married Wife Younger Health deterioration cover only particular members of the group to cover all members have uniform coverage 234 If raju wants to accumulate a lump sum for 20 yrs but does not require life cover.. Whose responsible in the contract? 231 If a person has taken a Pure Endowment Policy. a Loan can be availed by a policyholder ? 224 Which plan will suits a customer need who is just looking for protection of family. The commission of one of the policy is more than the other. what rate of increase will generally apply? 248 During Fact finding. What type of insurance plan would this be ? 239 Rahul has taken a joint life policy with his wife . rating is mentioned „3‟. the insurance company would be paying the nominee:SA plus Bonus & Minus ? 244 Which factor needs to be kept in mind before deciding a child policy ? 245 Frequent switching is not advisable in ULIP plan because it increase 246 An insurance agent sold two policies to two different persons having the same policy term. and his parents are retired and dependent on him. then what will be the death benefit if he dies during term of policy? Health Policies Term Policies Endowment Policies Term Insurance ULIP Endowment 50000 75000 62500 5000 10000 50000 Convertible plan Term Insurance Endowment Plan Only ULIP Plans Only Endowment Policies only Term Plans term plan health plan endowment plan Insurer Proposer Proposer & Wife No Death Benefit Sum Assured will be paid Both are correct 232 Two People of the same policy Term. He has an endowment plan with a cover of 2Lakhs only. Which is the best suitable policy for his Son? 229 Ajay is 35 years old and works for a multinational corporation (MNC). He has a ten-year-old son. He declares the commission to each of them. They belong to which category 243 In endowment policy . which policy will be suitable? Term insurance plan Money back pure endowment policy 235 In a joint life plan for a husband & wife. What should be the reasons for this difference? 247 Where annually increasing flexible premiums operate under a life insurance policy. . What is most immediate need for Insurance 230 Client has taken Joint Life Policy. A has a son who is 5 yrs and he wants to save funds for his education. Ajay has a home loan of 40Lakhs.Who is responsible for premium payment ? 240 Krishna and Laxmi are married having 7 years old child. The best suited products for him would be 237 what is the special feature of ULIP that ensures customer risk profile for long time insurance policies 238 At the time of maturity . quarter of the SA is paid though the policy was in force. Which plan is suitable for them? 228 A Couple has 7 year kid & wants to Buy some Policy. Ajay‟s spouse is a housewife. Both the parents are risk averse . 225 If 50000 is invested in Single Premium ULIP than what will be the minimum SA applicable? 226 What is the maximum cover that can be provided in micro insurance? 227 Mr.50% Risk apatite of client 3. This Indicates Insurance company Husband only Husband & wife Pure Endowment Anticipated endowment Term plan fund switching partial with drawl premium holiday Endowment Lien Money back Rahul His wife children Endowment Money back Term Insurance home loan Same Age education needs Employees marriage of kids Family Outstanding premium Commission outstanding Persistency bonus Mode of the premium Inflation Maturity Value Investment Risk Risk of death Uncertainty of return Risk profile of both the policyholder are different Age of both the candidate are different One has chosen Single premium policy and other has chosen regular premium policy 2. Which policy will satisfy the long term protection needs for both 241 Term insurance if best suited for the following need 242 A group of people insured in a policy .223 In which category of Insurance plans . Vijay. But he cant afford to pay high premiums. 50% Willingness to pay 3 3 1 QB-ENG-Page 20 of 54 . 7. money-back plans or ULIPs traditional plan 4 1 Insurer and both the Life Insured 2 both are incorrect 1 Higher Age 4 None of the above 1 Whole life 3 Insurance company. husband & wife ULIP 4 3 riders 1 Surrender 3 Both a & b 1 Child Investment policy 3 1 Retirement needs same grade 2 Interest 1 Vesting Age 2 Chances of lapse 1 Both have chosen different kind of policies.All of the above 1 Moneyback 3 100000 3 100000 3 ULIP Plan 3 Child insurance plans can be taken out in the form of endowment plans. Only Maturity Benefit.. Endowment Plan. buys a 25 year Term Age Insurance cover on Joint Life basis. 75. But he is not satisfied with the policy benefits. Only Bonus Benefit. Lien. in relation to access.000 on loan. Low Returns Equity Linked Saving Schemes. Moderate Returns Principle component of home loan. What type of plan is SSS? 265 What is generally considered as a substitute to charging a high premium for a high risk? 266 Manmohan has recently purchased a house worth rs 50. Assignment.. 263 Mr. Kumar is taken one life insurance policy with ABC Company.249 Incase of presumption of death Not necessary to pay premium until court decree Necessary to pay premium until court decree Claim not admissible 250 Within how many years a complaint can be made through consumer protection act. 256 The two basic elements of most life insurance plans are Guaranteed Benefit and Non-guaranteed Benefit. What will reduce the need for him to use nomination facility? Policy Type Joint Life Option 270 Vijay wants life cover for 20 years and a modest saving for his child at the end What kind of plan is suitable for him? Term Plan Whole Life Endowment 271 Weekly premiums are generally collected for which type/range of plans 272 Suresh wants to transfer his physical gold to gold exchange traded fund. Master Policy holder & insurer Employer & Employee Employee & Insurer Plan offer insurance coverage for two person in one This plan is ideal for brother & sister. What Mr. income tax act 196 260 The income of an individual can be protected with the help of. Major Double Rupees Tag He can file a complaint against insurance company in court.. 251 Basing on which criteria the qualification of Agent is determined? 252 Payment/Investments in Kishan Vikash Patra under post office schemes is done by the way of ? 253 Whose signature is required on attestation of the policy documents ? 254 What does MDRT Stand for? 255 Mr. Whole Life Plan.000.00/-... 257 Term Insurance Plan will give…. Which insurance product you as an adviser will suggest? 267 In Group insurance plans contract of insurance between …………? 268 Which option is not correct with regard to joint life insurance plan? Only Death Benefit. policy Each life will be underwritten separately. 259 Which of the following product not comes under Section 80 ( C ). this change will Banca assurance Health plans Micro Insurance Increase his liquidity Decrease his liquidity Reduce his encashabilty for next six months 273 ULIP & NSC which is giving more tax benefit ULIP NSC Both with same benefit Taxation Look-in Period 274 The advantage/disadvantages within cumulative and fixed Returns traditional deposits pertain to275 Ajay is 35 years old and works for a multinational corporation (MNC) **Ajay salary is 80. Shanth has got a pure endowment policy for 30 years for the sum assured of Rs. Money Back Plan. Interest Benefit and Bonus Benefit. 261 Mr...000 he want home loan . Vinu got a job recently. Death Benefit and Maturity Benefit. a unit linked policy a term life policy an endowment policy when he dies when he survives the term when he is hospitalized Fixed deposits Unit linked Insurance plans Term Insurance Convertible Endowment plan Convertible Term plan Convertible pure Endowment Salary saving Life plan Not a specific plan Salary insurance plan Clause.. Kumar can do under this situation? One year Two years Three years Address of the agent Domicile status Qualification of Agent Regularly with no fixed term Lump Sum with no fixed term Lump Sum for fixed period of time Agent Policy holder Authorized officials of insurer Million Dollar Round Table He can not do any thing. It can be paid to him. High Returns National Saving Certificates... he can‟t afford to pay the higher premium as of now but in future once he settles down with his job he can pay higher premium.... 269 Shaan. Major Dollar Round Tag He can send back the policy document to insurance company with in 15 days from policy receiving date. because be received the policy bond... Kumar decides that his employees should have SSS scheme. what is maximum EMI he can pay per month as per financial experts ? 276 between ULIP & NSC which of them give tax benefit u/s ULIP 80C ? 8000 16000 NSC QB-ENG-Page 21 of 54 24000 ULIP & NSC .. suffering from Asthama. Which one will be the best plan? 264 Mr. 262 Flexibility like partial withdrawal and taking premium holidays is possible with. 00. 258 Low risk products give…. Age 22.. 2 Health 3 Money Back 3 Term Insurance 3 Create a future exit liability 1 None of them having any tax benefit 1 Investment Frequency 1 32000 4 None of them 3 QB-ENG-Page 22 of 54 . 1 2 a money back policy 2 when he loses his job 3 4 2 Endowment plans 2 Convertible money back plan 1 Salary Specific plan 2 Level Premium. 1 Bonus Benefit and Tax Benefit. 3 Only Tax Benefit. 4 Creditors & Debtors 1 A joint life policy may cover a partner in business under one policy. 3 Term Plan.Depends on case to case 2 Five years 2 DOB of Agent 2 Regularly for fixed period of time 3 Proposer 3 Mean Disposition Residence Time Serve notice to insurance company on policy benefits. Good Returns Premium paid for Health Insurance Plan. Fixed income Tax Benefits 296 What is the similarity between Recurring Deposits & cumulative deposits in a bank 297 If a person want to maintain emergency funds . on share prices. health . retirement and child investment policy Raj is married and akshat is single Raj is above 65 years and Akshat is below 65 years Raj is in the good health and akshat is in poor health Life Insurance Health Insurance cover Retirement plan 293 What is the frequency of interest in Cumulative deposit Monthly account 294 If RBI increases the interest rates then what will be the effect Shares will be more attractive. What will happen to his monthly disposable income after 15 years of job 286 Ramesh has invested in Post office Monthly Income Scheme. Debt Funds of MF then what is the ideal instrument to invest money apart from Bank FD? 280 Mr. 295 What is purpose of investing money in debt mutual fund? Easy access Quarterly Half Yearly Shares will be less attractive.20 gms 20. If the Reserve Bank of India announces a series of significant interest rate increases. the prices of these shares are most likely to Guarantees Taxation Tenure Equity market ULIP Debt mutual fund Liquidity More gold in value Purity Become volatile Decrease Increase He has opted for Settlement option He has he has redirected his past premium. 299 An investor holds a wide range of shares.difference will be in 288 Kishan Vikas 's payment gets cleared at 289 RBI increased interest rates 2 times. 80D S. 80C S 80E 278 What period of time a client has to be invested to get tax 10 Years benefit under postal scheme? 279 If a person is going to face job loss for a temporary period. the best place is a bank or 298 What is the advantage of converting physical gold assets to gold ETFs. What should be the last priority for him among the life. then the stock prices will 290 Rahul switches from direct holding of shares to equity based mutual funds. X Invested in a Bank FD with 6% Return. what is the 5 year minimum term he should take while investing in FIXED DEPOSIT 283 A customer while investing in to Recurring deposit or Taxation Cumulative deposit what are the key factors which will matter 4 year 3 Year frequency of payment interest rates 284 A person is holding 100 units of GOLD ETF certificates . The interest rate was set at 6%. What is the possibility of receiving it in instalments if it is not a annuity plan QB-ENG-Page 23 of 54 . He has switched his fund customer does not get received Maturity in a lump sum. The impact on risk would be Marginally decrease Significantly increase less than after 15 years Increase gradually Decrease gradually Remain Constant frequency of interest calculation Tax Interest tax Bank increase Post office decrease Insurance company volatile Less transparent More diversified Less return 291 Raj and akshat of are paying the same annual premium for the health policy taken on the same date for the same term.277 Under which section of the Income Tax Act can an individual get a deduction from taxable income for the health plans S. However his Inflation actual returns deemed to be 4% What are the reasons ? 8 years 6 years NSC Corporate bonds Charges Current Market Scenario 281 A person planning to invest in Kisan Vikas Patra will go to Post Office Internet 282 A person Wants to invest in a FD for Tax benefit . Fixed deposits will be more attractive. Age 9 and 11 years. How many grams of GOLD does he Have ? 10. What will be the effect of rate till the maturity. Insurance Branch 300 After maturity In a Unit Linked Life Insurance Policy. But raj is getting higher deduction for income tax as compared to akshat 292 Raj is married with two children.50 gms 50-100 gms 285 Manoj a 26 year old is having 7 years old son. 287 If a person chooses Cumulative deposit than Recurring deposit . 2 Liquidity 4 Lock in periods 1 FD 3 More conversion value 1 Remain unchanged 2 Policy was lapsed on the time of maturity 2 QB-ENG-Page 24 of 54 .S. 80F 5 years Govt Bonds All of the above Mutual Fund Office 2 Year tenure 10 gms will remain same Change as per market fluctuation 2 4 1 1 2 1 2 3 2 3 Tenure 3 Any one of the above same 2 Steep rise Raj is earning more and akshat is earning less 2 2 2 Child Investment policy 3 Yearly 2 Fixed deposits will be less attractive. under the new guidelines. but his disposable income and future expected income estimates make this desire unreasonable.. Likely to decrease. 305 Mr. Shares Capital Appreciation Capital Profit Capital Benefit Current & Future Needs Financial & Non-Financial Needs Identify and Quantify needs nil 320 As per the income tax act how much total premium is deducted from the taxable income under sec 80 c would be 0.. Is it adequate Low 323 In a Unit Linked Insurance Plan. Matching the product with Ramesh„s financial need. Under which policy he will get these benefits Endowment plan Term insurance with Return of purchase price Whole life plan 302 In what proportion is the cover in a Family Floater Plan shared? 303 Who will maintain Mutual Fund Schemes? 25% each 15% each 50% each Mutual Fund Management Societies Mutual Fund Management Systems. what is the minimum life cover that a customer will have to take? 3 Lakhs 4 Lakhs 324 KVP is an ideal investment for what kind of customer Monthly Investment Annual Investment Single Investment QB-ENG-Page 25 of 54 . 304 Which is the primary saving need among all saving needs? Insurance Purchasing House Investment. An agent should clarify the difference between 318 After paying premium of 5k the customer received a maturity amt. What is the best option to park his money? Shares Fixed Deposit in Bank 306 Which of the following avenues makes it easier for a person to take a saving product? 307 Mr. 319 As per new guidelines for a Sum Assured of Rs 1 Lakh what is the minimum Annual Premium which one must take? Saving Deposit Cumulative deposit Traditional Deposit Providing him emergency fund.60. through individual agents through internet corporate agents Life Insurance Mutual fund Shares 308 Which of the following can‟t be deducted under section 80 c from taxable income? 309 Who act as an intermediary by offering a trading platform for buying and selling of shares? 310 The Central Bank has recently announced the decrease in interest rates.What had happened to his share? 317 A client wants to save up to buy an expensive car.. 10. it was found that a customer had provided for 6 High months of expenses as emergency funds. Mutual Fund Risk Diversified Insurance Recommendation of product with highest return.000. Rao has Rs. interest rate and method of payment of interest at the inception of the investment itself. at what rate will it be taxed ?. He would like to get some returns from this money in these 9 months period.110 and he sold when it was Rs. Will fluctuate..2 20000 10000 50000 25000 50000 1lac 321 If the bank paid a cumulative interest in fixed deposit scheme Monthly then what is a mode of interest paid Quarterly Half Yearly 322 In a fact find. Post office Corporate Bond Bank Infrastructure Bond Mutual Fund Health Insurance 313 In which of the following Bank pays the Interest on the deposit‟s fund on monthly /quarterly /half yearly/ yearly basis as chosen by depositor fund: 314 Vinod being an insurance agent can offer assistance to his client Ramesh by: 315 The concept of Risk diversification is applicable in which of the following instrument ? 316 Ajay bought a share for Rs. His investment may be in. 00.301 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. which allows deduction from taxable income Pension Funds Public Provident Fund Employee Gratuity Fund Bombay Share exchange Bombay Stock exchange Stock brokers Likely to increase.1 0. Asset Management Companies. He would like to Insurance use this amount for his daughter‟s marriage which is going to happen with in Nine months. where the annual premium is 2 Lakhs Rs.000 cash with him. Rajgopal has invested some money. The prices of bonds are 311 Time deposit account is issued by: 312 Pankaj wants to save tax over and above the deduction allowed under section 80C of the income tax act 1961.630. He has been informed clearly about the tenure. 3 Contingency/ Emergency Fund. Risk Sharing insurance 2 Capital Variation 1 1 Real & Perceived Needs 4 0.3 100000 2lac Yearly Inadequate 1 2 3 2 2 5 Lakhs 2 Monthly investment at regular interval 1 QB-ENG-Page 26 of 54 .Ulip 2 No Proportion 4 Asset Maintenance Company Limite4. Interest paid on education loan 1 2 Fixed Deposit 3 Discourse saving in a purposeful and need based manner. 2 Life Insurance co. 3 call centers 2 Bank deposits 4 Infrastructure Bonds 3 Share brokers 3 No change is likely. 4 Mutual Funds. Who all can be included under the family floater health plan 331 Critical illness rider was taken and the rider benefit has been claimed .325 Suresh has transferred his physical gold to gold ETF.Ramesh invested Rs:50000 in pension policy.The result directly reflects which of the feature available in this policy ? 8 years 6 years one-third one-fifth Differed Annuity Option Guaranteed period option 330 Denny is married and has 2 children age 6 and 10. Sharma buys a term insurance policy along with Accident and Disability benefits rider.quarterly.monthly. This will increase the liquidity decrease the liquidity attract tax at maturity 326 The investment performance of a customer's singe lump-sum Corporate Bonds payment will reflect the performance of a wide range of different securities under what type of product? Kisan Vikas Patra Mutual Fund 327 What period of time a client has to be invested to get tax 10 Years benefit under postal scheme? 328 What is the amount of money a client can take out as a lump.06 1 Lac 345 commutation is a feature of which type of policy 346 Mr.3333 Pension plan is not eligible for tax exemption 1 0. the policy holder will get annuity till 333 What frequencies can one take in annuity Denny only Denny and his wife Denny.quarterly. Immediate Annuity Deferred Annuity Anticipated Endowment 338 An individual need a lump sum at the age of retirement. what is the percentage he can avail as exemption in Income tax. His parents are alive and are 70 and 68.4 0. the the deferment period amount he need to invest annually for the goal will depend on amount which required investment tools used for investment 339 What are the Special features of Health plan? 340 What will be maturity benefit under health insurance plan Covers disease expenses Fund value Helps in Tax Benefits Paid premium covers hospitalization cost Paid premium with interest 341 Which is the suitable savings plan for a senior citizen Term insurance plan Money back ULIP Plan 342 Claim Amount received under CIBR Rider .One-tenth sum from a pension policy? 329 Omkar Started a pension policy with provider A but ended up Commutation Option in taking the annuity payment from provider B. yearly Nature of risk 335 How is No Claim Bonus is given in a Health Insurance Policy By way of Cash Discount Discount in Renewal Premium Free Renewable 336 What is importance of Health insurance? meet any medical emergencies Major hospitalisation and treatment expenses meet expenses post hospitalisation due to loss of income 337 A person retiring within 3 months needs return as pension.can be spend for Health Expenses Only Household expenses Only Unspecified reason 343 What could be the percentage of guaranteed return in all ULIP pension plan. The rider cost would be restricted up to what percentage of the base premium of the policy? 347 Mr.half yearly. what will be the tax implication on his maturity amount 349 Yash wants to take open market option in Pension plan. the rider benefit now gets 332 In a Guaranteed annuity option of 5 years .Sumesh takes a policy and pays premium of 20000 with a sum assured of 300000. yearly fortnightly.045 pure endowment policy 0. What is the benefit? 350 In rising life expectancy the need for pension policy is increasing as retirement planning is 351 Ramesh wants to buy 15 years pension plan for retirement while calculating gaps required at the end the gratuity amount was completely ignored because he is Fully taxable 0.085 2 Lac 3 Lac joint life policy 0.3 0.half yearly. His wife and children Reduced the base SA terminated continues as it is entire life term till 5 years and continue till annuitant lives annuity only for 5 years monthly. What is the maximum Critical Illness Rider he can take 0. 344 A person has taken a term insurance of 4 Lac.2 0.1 0. monthly .2 save more tax switch the underlying fund improved annuity rate Less expensive Less Transparent More necessary self employed Widower Savings are significantly higher QB-ENG-Page 27 of 54 . annuity 348 Mr. What kind of investment plan he needs to choose .yearly 334 Why is there a waiting period in health insurance policies? Pre-existing illnesses Change in premium terms fortnightly. reduces inflation 1 Recurring Deposit 3 5 years 4 half 2 Open Market option 4 Denny. His wife and children and parents 4 will discontinue for 1 months 2 None of the above 2 None of the above 1 Cooling off period for insurers 1 Free increase in Sum Assured 2 All of the above 4 ULIP 1 All of the above 4 All of the above No maturity benefit 4 Pension plan 4 to pay the further premium of base 3 4 0.5 2 will depend on his income slab Tax fully exempted 1 4 To continue life cover 3 Tax efficient 3 Govt employee 1 QB-ENG-Page 28 of 54 .1 4 Lac 3 4 1 policy of another person 0. What type of policy is this ? He will get tax benefit up to 5000 He will get tax benefit up to 25% He will get a reduction in tax slab Number of days admitted in hospital & surgery expenses in full Endowment Number of days admitted in hospital & surgery expenses in partial Term Treatment cost of surgery subject to terms & conditions Money Back 365 To identify suitable products with main features and their tax Agent treatments is the role of: 366 The rider which is given by the Insurance company pays for Critical Illness Rider the treatment costs in the event of hospitalization of the insured person is called 367 Customer has to pay the amount in regular intervals to create Collection Phase.. What is the tax benefit he receives? 354 Mr.....352 While calculating pension figures. one for himself & one for his wife.. We will call these plans as…. purchase price or Pension Fund. We call this phase as…. Ranga has taken Critical Illness Rider.Arvind has 2 children aged 13 & 15.. The insurance company will pay for doctor consultation fees incurred prior to hospitalization 359 Customer has opted for a 5 yrs guaranteed annuity option. Yash has taken an annuity on 25th August 2011 The benefit of the plan will start from 25th August 2011 What type of annuity plan is this? Taking Medi-claim plan with Life Insurance. rider is like a clause Operative clause.. What will happen to annuity... Family Health Insurance Plans Taking Life Insurance plan with Critical Illness Rider.. This rider is ideal for helping to prevent a policy lapsing due to non-payment of premiums due to death or disability life annuity The main strength of WOP is the payment of full sum assured. What are the options available to Mr. QB-ENG-Page 29 of 54 deferred annuity . This type of pension plan is known as. Ranga's family member will be in critical illness Blindness Paraplegia Coma Guaranteed period annuity Life annuity Deferred Annuity The rider waives future premiums in the event of the disability or death of the policy holder... Family Floater Health Insurance Plans. This will impact in which way for him ? 363 What are the benefits to the policyholder Under Surgical care rider? 364 A customer gets periodic benefits without any claim and then when he dies during the term of the policy. Hitesh would like to get health coverage along with Life Insurance. 369 Mr... When Mr.. what will you recommend. required at the time of retirement.5% guarantee on Pension ? 356 With this type of deposit the bank pays the principal and the total interest at the end of the term. Ranga is diagnosed a critical illness When Mr.. Hitesh to fulfill his need with a little cost? 370 Which of the following is not a feature of WOP rider? Total Protection Policies. 371 Mr. he wants to buy 2 health plans. Amt will be deducted from taxable income upto 1 lakh Family floater Rs 1000 will be deducted 10% of the amt will be deducted Health plan Endowment plan unit linked pension plan traditional pension plan POST OFFICE pension plans Traditional deposits Recurring deposits Cumulative deposits 357 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. Health Insurance Group Insurance Micro Insurance 362 An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. In which of the When Mr.. Insured Policy Holder Hospitalization Care Rider Accidental Benefit Rider Accumulation Phase Pension Phase.... Taking Health Plan. 372 Mr. The insurance company may pay an additional amount on a daily basis if the insured is admitted to the Intensive Care Unit (ICU). 368 Some Health Plans will give coverage for family members also. One is taxation and other is Health Charges Inflation 353 A invested money in Sr Citizen scheme. if the customer survives for 5 years after the end of guarantee period? paid up to 75 Yrs annuity will be continued for next 5 Years paid till he is alive 360 Which is correct in relation to Insurance Broker? Insurance broker is represents insurance buyer and Insurance broker is represents insurance buyer and remunerated by the insurance company remunerated by the Client Insurance Broker gets money from both Insurance company as well as from Client fo selling Insurance 361 In which plan weekly premium payments are accepted... his nominees gets the sum insured. 355 Which fund needs to be selected to receive a 4. 358 In Daily hospitalization cash benefit scheme. 373 Which one of the following cannot be covered under Critical illness rider? 374 Mr.. Ranga dies due to critical illness following scenarios the insurance company will pay him. two factors should be considered while planning. He has bought retirement plan immediate annuity for 20 years. Ramakant is 35 years old. Insurance Plan separately. 1 2 2 Family Rakshak Health Plans. Only surgery expenses are included in daily hospitalization benefit Will stop after 5 years guaranteed period is over 1 1 1 3 1 2 2 None are correct 1 Macro Insurance 3 His investment would be deducted from taxable income 4 Lump sum amount what he has incurred 3 Whole of Life 3 Insured person Surgical Care Rider Primary Phase. Ranga dies due to severe road accident. 3 Taking Hospital Benefit Plan with Endowment Plan. 1 WOP rider can be offered with all plans joint life annuity 4 3 When Mr. 2 Brain Surgery 4 Immediate annuity 4 QB-ENG-Page 30 of 54 .Interest rates 3 20% of the amt will be deducted Term Plan BANK Term Deposits Rider is like Preamble. Childhood Young Married Pre Retirement Public sector employees do not get sick very often public sector employees enjoy medical cover related to the Job Self employed person fall sick quite often Protection plan child plan Saving plan convertible plan pension plan 397 Rajiv is married & has 4 year old son. Krishan is getting tax benefit for higher premium than Mohan. These health challenges can be covered through Bank fixed deposits.wife and two children aged 6 and 10 . 30% of SA. an individual should make provisions for 20% of SA. Health insurance plan. determined by? 377 While calculating the expected returns from investments and Taxation only. What suggestion would you give him as an agent? 394 In which of the recognized life stages an individual does not required any protection cover 395 Why need do self employed people have to buy medical insurance than that of a person employed with a public sector company 396 A family consisting of husband. What could be the reason for it 390 Omkar Started a pension policy with provider A but ended up in taking the annuity payment from provider B. How the policy holder will get benefited 383 Which of the following is true regarding Family Floater Health A Family Floater Plan is the same as a Individual Insurance Plan? Plan Need to add that hospital as TPA Need not to claim Only self and spouse can be covered in this plan Any number of people may be covered in this plan. His job requires him to travel across states. Which insurance plan is Child plan suitable for him? QB-ENG-Page 31 of 54 . 378 The general need for purchasing a health insurance plan at an The premium decreases with increasing age.25 0. savings. early age results from which of the following factors? The premium remains constant with increasing age.75 One -fourth One -third Half To purchase an accidental rider with a savings insurance plan. This also brings along health challenges. what kind of insurance plan can be suggested ? 0.5 0.375 To avail the income tax benefit at investment stage. should be maximum 376 The savings needs of a particular individual is largely Amount of disposable income. premium 10% of S1.The result directly reflect the which feature available with this policy Rs 1 lakh Rs 2 lakh Rs 3 Lakh close relative Annuity Plan fellow employees Joint life friends On the others life krishan is married & mohan is not Mohan is married and krishan is not krishan is NRI and Mohan is resident Indian Commutation Option Differed Annuity Option Guaranteed period option 391 To comply with the Insurance Regulatory Development Authority Regulations . well above 60 years. What is your suggestion? Husband and Wife only Equal to base cover Parents only Any Amount he can take if he is ready to pay premium 386 A customer has taken a Term Plan of Rs 4 Lakh what is the max SA of Rider which can be taken 387 In Group health insurance plan the insured are 388 In Harish's Policy commutation option is being used. Current assets. Current liabilities. Krishan & Mr Mohan bought health insurance product and are paying the same premium. 392 What is the Cash Value which can be taken from Pension Plan at vesting that is tax free would be ? 393 Rohit is working as sales manager with an FMCG company. what kind of health Policy he bought it…………? Group health insurance Family floater Insurance Plan Individual health insurance plan 381 Which of the following is not a feature & benefit of rider? Providing additional cover Maturity benefit Nominal cost & flexibility 382 Health insurance policy holder takes treatment in a hospital Need to spend and Get claim from the insurer which doesn‟t have cashless facility. the premium for a health -related rider is limited to what maximum proportion of the base premium of a term Insurance policy. he is not sure of how much sum assured he needs to take for ADB rider. what kind of policy is this 389 Mr. To save through fixed deposits in bank. Inflation only. To purchase a health plan along with a savings insurance plan. He is planning of covering his additional risk involved while travelling and a savings plan. 380 Due to some medical problem Neeraj got hospitalized and insurance Company paid him a fixed amount on daily basis. 384 Family floater health Insurance plan covers All members of a Family 385 One person wants to take term plan for 20 lakh and wants to Needs to take expert‟s suggestion take ADB rider. Taxation & inflation both. 379 The life expectancy in India is constantly improving and is Equity. The premium may increase or decrease with the increasing age. 1 Retirement 1 Self employed person give more priorities to health 2 All of the above ULIP Plan 4 1 QB-ENG-Page 32 of 54 . 4 1 4 Rs 4 lakh 4 not known Term policy 2 1 Krishan is above 65yrs of age and Mohan is below 65yrs 4 Open Market option 4 1 4 Nil 2 To purchase a medical plan.40% of SA. 1 No provision is require4. 2 Duration of investment. 3 The premium increases with increasing age. Children Only 50% of SA max. 3 Daily hospitalization cash benefit plan 4 Customization and tax benefit. 4 Savings insurance plan. 2 Need to switch to the another insurer 1 The insurance cover is shared amongst the family members in no fixed Proportion. his family. Individuals have same financial needs at different stages of the life cycle. Which main life stage is he most likely to fall into? 400 The main protection need of a 19-year-old is most likely to be self-protection.. the amount that can be paid towards one's EMIs the annual bonus amount 411 Mr. child education/marriage and their retirement and protection of income... which should be his priority inheritance planning investment efficiency 399 The sole focus during a client‟s fact-find session was Young married couple healthcare requirements and estate planning. Ramachandra is free from his burden. protection of Dependants.. is the sole bread winner for Retirement need. Sheela received some amount out of her husband‟s death. 401 With profit policies can be given to 402 In the context of financial planning. Young married with children.. high His risk appetite is expected to be. want to plan for savings.... Tax planning need. Ramachandra's son Mr. Vinodh's need is. Selling what customer requirement is.... When both the life partners are earning members of the family. the surplus amount that can be invested Capacity to pay the premiums in future.. 410 The disposable income means.. Which should be their lowest priority? Endowment plan Return of premium plan Savings. Individuals do not understands their real needs and cannot prioritize them. Selling what adviser wish to sell... Pre-retirement.. Financial security need. 406 Mrs. What type of plan should he opt for? 405 Manish and Manisha is a married couple with one child.. Existing insurance plans..... based on a client‟s thoughts and desires. Shanth is in his early 20s and has just started earning.. 413 Mr. 419 Vijay. Now Mr. how is the difference between real needs and perceived needs best described? surety keyman Real needs are financial needs and perceived needs Real needs are actual needs and perceived needs are are non-financial needs. 421 What do you mean by Double Income Family? When a person of the family is involved in double businesses or jobs.. QB-ENG-Page 33 of 54 . moreover he feels that if he does not die then he would need the amount. partner Real needs are identified by the insurance agent and perceived needs are identified by the client. Vinod has lot of inconvenience to reach office every day... The High Risk. He is saving enough with banks... Education..... home loan protection. As an agent. Here Mr. Commission – Based Selling Imagined to be important by client.. 416 Which are the two primary needs of any customer in any point of life? 417 The concept of need based selling involves clients financial need clients personal problems clients hereditary diseases Investment and retirement Investment and Protection Investment and savings Selling what company wish to sell.... 403 If a person is concentrating more on health plan and retirement plan then at which stage of life is he in.their liabilities the lower will be. which need you prioritize first? 420 As an adviser why is it essential for you to carry out the Individuals understand their real needs and can financial planning exercise with the prospective clients? prioritize them........ 418 For his investment need.. In such a situation what will be her prime focus? buy High return Investment plans Buy protection manage the asset and preserve it 407 A Professional insurance market carries…... 409 Need analysis involves identifying……… Financial provision to meet predictable and unpredictable needs.. They RETIREMENT. When the income of a family is just the double of income of another family. Ramachandra is now in the .. Moderate Risk. So he wants to buy an expensive car when he will have sufficient fund. So Mr.. 408 Perceived needs are those which are ….. 412 The younger the age of an individual. Need – Based Selling Short term needs.. Bharat has just employed as a Pre-retirement stage software engineer....... low normal the higher the smarter Post retirement stage Married with older children stage 414 Mr. daughter Anusha has got married.... Young unmarried Young married Young married with Kids 404 Suresh has adequate reserve capital with him and he wishes Term Insurance Plan to protect his income.. Product – Based Selling Imagined to be important by Advisor.stage... Real need Perceived need Imaginary need 415 Fact finding enables the insurance advisor to identify the. aged 30 years and married...398 Samir is married and he has only one partner. returns from this form of investment can be categorized as Low Risk. Ravi has parked funds in equity. with dependant income protection parents and no child.. long term savings Retirement 1 4 protection of children‟s future. No Risk. 1 Plan for pension 3 Company – Based Selling. 1 the sum of one's all investment 1 Neutral. 3 Asset building need. 1 Family and Employment details. Long term needs. 1 3 Individuals‟ real and perceived needs are same. 1 Investment and life needs 2 Selling what IDRA wants company to sell. 3 When the members of a family do not work at all. 4 Pre retirement 2 4 Pension plan 2 Protection. 1 the superior 1 3 Employment stage 1 Important need 2 Clients‟ social background. 2 QB-ENG-Page 34 of 54 . 1 Individual Real needs are needs which satisfy an objective and perceived needs are needs which do not satisfy an objective. This reduction reflect the impact of 427 Fact Find Process helps to Charges Interest Inflation Ensure a sale is achieved Identify Client need 428 A Person Need to do Estate Planning would be in which period of his life stage 429 A plan suggested by an agent should be based upon which of the following ? 430 In a fact find. But the customer insists on only a child plan for the time being and asks the agent to give him a child plan. a couple discovered their need to be estate planning? In what life stage will they be in? 431 Mr. The benefit illustration passed to his client will therefore use assumed annual growth rates of health care child education Premium receipt Product Brochure 5% and 10% 6% and 8% 436 The rates of assumed annual growth to be shared in the IRDA benefit illustration has been decided by which of the authority Life insurance council The Royal Bank 437 While recommending a solution to the client.422 In which of the following case there is no defined retirement age? 423 Which one of the following is true? Public sector employees Private sector employees Professionals & Businessmen Every individual‟s income and expenditure pattern is same. X fact find shows he need a term insurance for his future Term Insurance income protection. What solution would they be Retirement looking for 434 The commission payable in a ULIP plan to the Advisors is Benefit Illustration mention in. client needs and Advisor need Product features Client income 438 A 38 year old married with 2 children. and their term plan income will increase with time horizon and suggest investment plan? 440 During fact finding. the advisor should. establish the link between. her husband dies and left huge legacy behind. endowment annuity Priorities Clients Need Recommending Product Insist with the client to take a term plan Give a child plan and revisit the client on a later date 442 Akash is an Unmarried person and employed with company ABC and drawing a handsome salary. What should be top priority? estate plan loan protection pension 439 A young couple wants to invest for their daughter. 435 An agent has recommended an investment product with non. before opting Health Insurance for Spouse for Health Insurance Plan Which other need he need to take care of? 425 Mr. An individual‟s income and expenditure has no relation. Which of these is the first priority Health Insurance for child Protection plan for spouse Medical Insurance Children's Policy 426 Benefit Illustration given to a customer quantifies an amount by which investment return is reduced. What will be the next step after Quantify clients need Identifying clients need 441 During a fact finding process the need analyzed were income Do the fact finding exercise again replacement and children‟s education. What will be sanju‟s preference over vikram‟s preference? Young Person 30-40 years age group Create an audit trail for future complaints Married A Plan based on needs to the Client A plan based on paying capacity of the client A Plan based on the clients dreams Married Married with children Married with older children Short term long term Medium term Investment Health Insurance cover Life insurance cover 433 A Couple has 7 years old son.. The agent should. Prasanth 25 Age has a Government job & he is Unmarried how many years policy can be given 432 Sanju & vikram are both 22 yrs old.5% and 8% guaranteed benefits.. A family health plan to cover medical needs. 424 Ajay 28 years old has spouse and two children . a children's plan to cover his son's education and a endowment policy for his daughter's marriage. What kind of plan can be suggested to him? Term Plan Endowment Plan 443 What should an agent do in order to understand the mental Fact finding state of client in respect to his investments in saving products Consulting the client‟s parents Consulting the family of the client 444 Which is the best option to manage risk? Transfer Avoid Money Back Retain QB-ENG-Page 35 of 54 . Sanju has dependent parents and vikram has no dependants. He has no liabilities. Every individual‟s income and expenditure pattern is different. All of the above An individual should not keep in mind his income while planning his expenditure. protection plan for self 3 2 4 Endowment Policy 1 Taxation 1 Provide regulatory body about agents data base About to get retired 2 None of the Above 1 Retirement 4 Plan cannot be given 2 4 No preference 3 life cover 3 Proposal Form 1 6% and 10% 4 SEBI Client expenditure wealth creation flexible Ulip plan Fill up the proposal form 2 2 2 4 4 Give the lead to another agent 1 ULIP 3 Reviewing his existing investments None 4 1 QB-ENG-Page 36 of 54 . Retirement. What should he do? 463 Churning is considered bad for a customer. 449 Insurance Protects which of the following? 450 Mr. Quantify.445 Naveen. aged 32 years. Advisor with ABC life insurance company find out Young Unmarried. Benefit illustration document Client‟s Profits and Withdrawals from business Client‟s Expense statement Client‟s business details 452 During the fact finding session as an agent you should follow which one of the following process? 453 Objectives of fact-finding do not include- Prioritize. Which one of the following documents he would have used to explain the same? 451 Mr. Identify & Quantify Needs.Harsha an agent wants do a thorough Fact Finding for his client to Mr. had a Insurance cover of 10.000/. Govind. customers needs are different Yes. Ram who is an agent advised Prasad to take money back plan as he is of same age (33 years). as Naveen and Ram are of same age. one client is seeking solutions for health care and inheritance planning. Identify. Naveen referred Prasad to Ram. He is a teacher by profession. He was approached by an advisor who made some analysis and told him that his Insurance need is higher than 10. Why is it? the commission is low Ask the customer to check it himself the commission is high tell him what ever he thinks Customer asks for it Refer to the product brochure Impact of charges on customer fund Higher commission to advisor Customers get new plans 464 Churning is bad . 00. Prasad is also teacher. Why is commission of X far higher than commission received for Y From the fact details From signed copy of benefit illustration Only Y has a Single premium Product X is married and Y is Single 461 An agent should disclose the commission if 462 Nikhil explaining ULIP plan to a customer doesn't know answer of a doubt regarding the product that the customer has. from clients? 448 During the recommendation stage the advisor needs to. based on which aspect Agents earn Lower Commission on churning Policyholder gets more benefits 465 What would Higher persistency to the insurer ensure? More productivity Higher attrition Policyholders suffer due to surrender charges and benefits Higher Profits 466 Persistency has increased from 82 % in previous year to 86 % this year ... as both are teachers Young married with children. Both are for the same duration. has taken money back plan..000 and suggested that he surrenders the existing policy and buys a new one. This is an example of Churning Proposing Benefit illustration of endowment product A large numbers of policies have lapsed / surrendered resulting in loss of profit Underwriting recommend the new product the company has recently launched 459 The best way to prove that customer of a ULIP policy is given Ask the insurer to give a policy endorsement letter awareness about the commission paid to the agent would be ? 460 An agent reveals the commission received from Insurance Only X has bought other product from the agent sales to X and Y.. 32.. recommend the products that best meet the client's recommend to wait some days to invest needs Interrogative Questions. Identify & Prioritize Needs. an agent was explaining to his customer the guaranteed benefits of the product.. Which main life stage he most likely to fall into? No. Is it the right advice? Why? Yes.This indicates which key reason ? more lapsation more attrition less lapsation 467 A satisfied client will lead to Word of mouth publicity for the agent Chances of up selling 468 An Agent can receive maximum of ________ %of the premium as commission in the first year Thirty Percent Twenty percent More reference generation for the agent Thirty Five Percent QB-ENG-Page 37 of 54 .KYC document The financial goal of the insured C. Quantify & Prioritize Needs. 446 Mr.Mohith. Which of the following information will be helpful to know about the earnings and Expense of Kishan? The life of the person paying compensation Fact Finding document The risk retained person 's family B. 00. Identify needs Gathering client data Provide for anticipated changes 454 Which one of the following documents distinguishes between Guaranteed and non-guaranteed benefits? 455 What key impact will the agent have in low persistency KYC documents Benefit illustration documents Fact-finding sheet Increase more business Increase in the agents earning Will improve reputation 456 In which one of the following statement an agent‟s commission will be disclosed to the customer ? 457 A low persistency ratio for the insurance company means that: Customer Statement of the product Benefit illustration of unit linked product The customers are satisfied with the products The company is acquiring more business and new customers 458 Venu. aged. 447 Which type of questioning is very useful to gather information Closed Ended Questions Open Ended Questions.Kishan who is a business man. 4 Customer data sheet with the product 2 The company will not declare bonus 2 3 Switching 1 From ticked columns of proposal form 3 Y is young 2 customer not asks for it must not shown any interest in the doubt 3 Agent will get angry and would not give service Insurance companies get good branding 1 Higher S.A 3 No profits 3 3 3 All the above 4 fifteen percent 3 QB-ENG-Page 38 of 54 . Client benefit document 3 3 Client‟s business records 1 Prioritize. as there is an age difference. 2 Surrendering the existing policies for selling new one Financial details 4 Will have impact in his commission. 2 Recommend to take his own time to take a decision. 3 Clarification Questions. 2 Children. Quantify & Identify Needs. 1 The life of the nominee D.No. This is an example for ? disclose on demand Not disclose Should call up the Insurer Increase switching Decrease Building long term relations Will not affect Revisit the financial planning 472 Sometimes an agent resorts to churning his /her customers existing plans . The agent should 470 If Sales Target get reduced then Churning will 471 Advisor motivates the client to surrender the existing Endowment plan and buy new Whole life policy for gaining higher commission. the client can check the agent commission 488 if an insurance agent churns the policy the main reason for this action is likely to be the desire to 489 NRI is classified in which category as per the KYC guideline? Higher Lower Agent has the option to recommending highest commission at any time. Should never approach the client ever again. what is the most appropriate relationship between Insurer and Broker? 476 Naresh is married and his daughter Sneha is 3 years old. It means that 491 Under KYC Regulation. An adviser sold than a unit link product to meet their requirement. No change EBI policy document prospectus Avoid customer complaints Minimise administrative paper work Obtain value for money High Risk Low Risk Average Risk More Commission has been paid Less no of Policies Lapsed/Surrendered 490 Persistency of an Insurance Product has increased from 82 % More policies lapsed/surrendered in previous year to 86 % this year .000 annually to build corpus to make down payment for their house 5 years from now. 482 Amit & Rashmi are newly married. 483 Under which one of the following acts the maximum remuneration that can be given to insurance agents described? 484 Which one of the following is not a benefit of persistency? Income Tax Act Indian Contract Act Insurance Act 1938 Helps the client in achieving goals Reduction in costs Increased client satisfaction 485 Why building long term relationship with clients is necessary? A satisfied client may be the source of other potential clients Reviewing financial needs and plans are necessary with changes 486 An insurer showing continuously low persistency then its impact on front cost of policies will be 487 From which document . Which plan can he take? 477 What is the factor which has influence on persistency? Insurance broker represent the client and the insurer remunerate the broker The client represent the broker and the insurer remunerate the broker Insurer represent both client and broker remuneration Term & Children Plan Annuity Plan Whole Life Plan Role of Agent Product Design. To resolve this query. 481 When client declines the recommendation by the insurance Persuade the client to purchase the policy. client said that he does not have funds for investments. Policy Servicing 478 Agent who is a licensed intermediary is actually is ? A legal person to act on behalf of the re-insurer A legal person to act on behalf of the insurer Regular reminders about the premium to the 479 Which one of the following factor does not help in the Persistency ? customer 480 After undertaking financial planning exercise. which skill of an agent would be tested? Flexibility of Premium payment to the customer Listening skills. without keeping the customers needs in mind . Bad reputation of the individual adviser. adviser even after resolving the concerns. What is Max amount of cash client can deposit 492 What is direct impact on advisor if there is low persistency Renewal commission will decrease ratio in policies ? 493 A claim intimation leads to the publishing of an advertisement Policy is assigned in the newspaper. This would be done for what reason ? Avoid a customer complaint Minimize paper work Service the customer 473 What are the key aspects of advisors do for better persistency? 474 If the client does not wish to proceed with the recommendations right at the moment the agent should Selling product as per need & policy servicing Surrender Insist on taking the product right away Should ask for the reason for not going with the recommendation Selling products having higher Commission Should ask for a future date from the client 475 According to Insurance Brokers Association of India. This means 10000 15000 25000 commission will increase Low cost to company Policy document is lost Policy is in lien QB-ENG-Page 39 of 54 . This may result in Opportunity of new business for adviser.469 Customer asks the agent to disclose the commission . They want to invest their savings of 100. the adviser should Should ask for reference who might be interested in financial planning. A legal person to act on behalf of the contract Dispatching Discharge voucher to the customer Communication skills. Both are working couple. Ruining the long term reputation of company. the prospective Objection handling skills. 1 IRDA Act 1999 3 Decreased revenues 4 Introduction of a new insurance product or a change in a client‟s Circumstance 1 no impact 1 proposal form 1 Receive extra commission 4 No Risk 1 No Bonus Declared 3 50000 4 Agent can do more policy 1 Any one of the above 2 QB-ENG-Page 40 of 54 . 4 An authorized agent to act on behalf of the legal company Continuous servicing of the policy 2 3 Client information gathering skills.Should avoid the topic 1 Partially Churning 2 4 To earn extra commission 4 Not keeping in touch with client 1 Should review once again 3 Broker only service the client 1 Health Plan 1 All of the above. 2 Financial burden on the couple. 1 Should do nothing. Ajay died after 3 years. what is the claim payable 15 days 30 days 45 days No claims payable All premiums paid Sum assured 504 The delay in settling claim by any insurance co. paid. 495 If a person is missing then after how many years will he be considered as dead & SA paid to the nominee..072 15 days 30 days 506 During claim insurer deduct Rs. the benefit is paid in the form of 508 Under Indian Evidence Act 1872. In which category he is not Murder eligible for claim .07 0. Customer has taken a policy and died before receiving the Entitled for full claim document which was dispatched by the insurer. This indicates that the policy was.Suresh dies one day before the grace period without paying the premium. It was lapsed. 10. It was paid up. This comes under Risk ______ 516 What is meant by a claim under insurance policy? Consumer Forum COPA Sebi Less than 10000 More than 10000 Less than 20000 Transfer Control Retaining A demand to fulfill the policyholder‟s obligations. Any demand made by the policyholder on the insurer. 00. It was assigned. A demand to fulfill the insurer‟s obligations. What could be the reason ? No amount will be paid Deep Illness Sum of all SA in different policies would be paid Accident 498 Mr. the three places where he/she should follow up are – Ombudsman. 514 Prashant buys an Endowment Plan with a sum assured of Re. How much premium would help him avail this benefit 515 Vinay doesn‟t want to take insurance on himself. 511 Which of the following falls under voidable contract? Misrepresentation It was paid up.2% 505 What is the maximum Time in which The insurer should settle 3 days a claim when all documents are submitted 0. However. IRDA Customer Grievance Cell and ………………………. Entitled for partial claim Not entitled 499 In a claim.. it was a with profit plan Investment Frequency Nature of Death ULIP Term Money Back 10 years 20 years 7 years 502 No of days in which the death claim has to be paid after the necessary documents have been received 503 Mr. after which year presumption clause will apply if the person is not heard of Premium Rate increase Loan facility Mode of Payment Life time annuity Lump sum sum assured plus accidental sum assured Sum Assured 6 years 7 years 10 years 509 A claim was paid in a policy and it was advertised in the newspaper also.. 10. This indicates that the policy was. QB-ENG-Page 41 of 54 . a life insurance policy holder received payments of maturity then what type of policy he is holding 501 If a person is absconding then after how many years will he be considered as dead & SA paid to the nominee. It was lost.000 in spite of having no Lien and all due premiums are paid.% if the present bank interest rate is 5.. What are the other reason for deducting the same? 507 In case of confirmed accidental death. due to which of the following circumstances the insurer can retain the premium of the policyholder Fraudulent claim Indisputability clause Redressal procedure 513 For the customer whose claim has been refused by the company.000 for a term of 15 years. Lack of insurable interest Fraud 512 Generally insurance companies do not hold the premium in case of a fraud or misrepresentation.085 0. as per IRDA norms has to pay. Insurance company will not treat this claim as ________ claim.494 Ajay has bought an endowment insurance plan with a cover of Rs. Why? 500 Without submitting any form of claim. Normal Fraudulent Early 5 7 10 Death Benefit will be the amount with highest SA 496 What is the death benefit if the person has multiple sums assured under different policies? policy 497 Client died in 89th day from DOC. the customer got much more than the Sum Assured. 100000 and wants to make use of tax benefit under the policy for whole SA. He feels that his family will survive with the funds available in the bank and monthly rentals received from village. 510 An indemnity bond was signed in a policy when the claim was It was lost. 2 QB-ENG-Page 42 of 54 .082 10 days Loading Lump Sum plus life time annuity 12 years It was surrendered. 3 12 Not more than 20lacs 2 3 Suicide 4 Return of Premium 1 Survival Benefits 1 Health 3 12 years 3 60 days 2 Sum Assured less the undue premium 0. 1 None of the above 1 Pending decision from Ombudsman 2 Life Insurance Council 2 More than 20000 3 Avoidance 3 All of the above.General. 4 3 3 2 2 2 3 It was surrendered. Feroz has taken policy for critical illness worth Rs. When the client‟s needs have been established.. Pankaj Bought a plan in 2009 & died in road accident in 2011 : 534 At the time of death claim within how much time insurance 30 days company can ask for any documents which they require to verify ? 535 Following the death of a policyholder.000 and 1 lakh for health policy. How much will be the death claim settlement? 525 Mr.if only Sum assured he took a Loan after 5th of commencement of policy and died before 2 year of Maturity . 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. Unfortunately Baskar died in a car accident. Chintamani has taken a policy from ABC Company on 2nd Normal death claim March 2010. the policy. The nominee files a claim and is rejected because The policy was not in force. to pay the premium from 201 He died on August 13th 201 What will happen to his death claim ? Total 4 lakhs will be paid as death had happened due to car accident Total 11 lakhs will be paid Not eligible for Claim settlement Claim will be settled after deducting the unpaid premium 526 The agents duties and responsibilities ends When the clients policy is issued. The facts were misrepresented. 4 lakhs. 15 days 45 days Lack of insurable interest Loan QB-ENG-Page 43 of 54 . what Option he has to convert ………. but unfortunately he died on 18th August 2011 His death claim is considered as.Feroz was hospitalized after he was detected with cancer . Return of Premium on maturity Deduct the underpaid premium from Sum assured and payable on Maturity 531 Ajay has bought an endowment with profit plan for 20 year . He also has a term plan worth Rs. while settling maturity claims because 530 Pranab is not able to pay premium for continue his policy due In to paid up and reduced Sum Assured would be to some Financial problem.. 527 Insurer will not pay the claim unless The policyholder makes a demand. He died of cancer Claim will be rejected in 2010 Investigation about his death revealed that he was deducted cancer in 2000 What will happen to his death claim? Claim will be settled as Cancer was not deducted in 2008 Claim will be settled as he died in 2010 524 Mr. Critical illness (CI) Hospital Care (HC) 533 Which one of the following report is not considered in case of Police first information report. so he rather than surrendering payable on maturity. Sum Assured + Bonus Sum assured plus vested bonus minus any outstanding loan/premium & Interest. will be settled death will be settled Mr..Baskar had taken a Term plan for a sum assured of Rs. sham had taken a term plan in 2008 .. The event insured against happens... The insurance company makes enquire on maturity claims only. Early death claim Abnormal death claim 520 Detailed Investigation will be triggered in case of.. Rs. 7 Total 7 lakhs will be paid as death had taken place lakhs. the company will wait until the claimant comes to office to demand the claim the process is initiated by the company well in advance of the maturity date it is the responsibility of the claimant to approach the company 522 Mr. 519 Mr.10 lakhs. How the claim will be settled? Claim will not be settled as he died due to cancer 523 Mr. Why was the deduction made? Advisor confidential report Post Mortem Report. 529 When a policy is lost.. The nominee makes a demand.. He also has an ADB rider worth Rs. insurance company take utmost care The claim may not be genuine.. When the nominee has changed. 528 Aman has taken a term plan for 20 years. The claim is fraudulent.what would be payable on maturity? 532 Under what kind of Rider the insurance company pays the Accidental death benefit (ADB) treatment cost in the event of hospitalization of the insured. subject to term & Condition of the rider..? The policy may be pledged..1 lakh in claim of critical illness and 10 lakh from term policy claim of hospital charge Rs 20.Sampath has taken a policy on January 10th 2006 for a Eligible for claim as the premium was paid from term of 12 years. The policy did not have a lien and all due premiums had been paid.. This condition is excluded in the policy. Maturity claims All death claims Early death claims 521 In the process of settling maturity claims...517 Who will take the initiation to settle the maturity claim process? 518 Which is the right statement regarding claim enquiry? Client IRDA Advisor The insurance company makes enquire only on death claims.Unfortunately he died after 3 days of treatment. Enquiry will be done on both Maturity and Death Claims.10000 was deducted Commutation from the claim.. Due to financial instability he discontinued 2006 to Dec 2010.. 1 There is no nomination. 3 Coroners Report 60 days 2 2 Premium Rate Increase 3 QB-ENG-Page 44 of 54 . Claim will be settled after the deduction of unpaid loan amount 3 2 When the maturity/claim is settle4. If the claimant does not come within a month the entire maturity amount will be forfeited. 3 Term Rider. 4 The insurer completes the enquiry. 1 Paid up value only.Insurance company 4 Enquiry will be done if death happens before one year from policy inception date. 2 Policy was subject to lien. 4 Unnatural death claim 2 Rider benefit claims. 3 The claim is an early claim. Claim will be settled as per the instructions of underwriter 3 2 1 Claim will be delayed 1 Total 7 lakhs will be paid without any deduction. . the agents license 562 Married Woman‟s Property Act 1874 provides that a life Married Woman insurance Policy that has been taken out by: 563 As per Anti Money Laundering guidelines. Which is the best plan for him? 0.. 1874 a policyholder is The Life Assured...077 0..100 for the issuance of duplicate license 560 Under Married Women‟s Property Act.50 for the issuance of duplicate license paying Rs. 558 Which one of the section deals with the licensing of an agent? Section 42 of the insurance act 1938 559 Mr. the commission payable will be his legal heirs paid to.067 0. Designated Person.? 541 License of candidate passing insurance exam is valid for ___ years? 542 The controller of insurance in India is 543 Who is regulating Advisor's Licensing 544 If the policy is endorsed under MWP Act . What is max time given by regulator to insurance company for investigation ? 539 When a policy is lost. Placement to his nominee Life Insurance Council Proof of address. Insurance company take utmost care while settling maturity claim because 540 To prove one‟s identity in accordance with KYC process.536 Death claim is delayed due to investigations which were to be made.Varun taken up his agency in July 5th 2000 His lost his IRDA license while travelling.. Married Man Married Son 561 Who has the authority in insurance company to issue/cancel Insurance Company.terms and conditions of general insurance business 566 If IRDA is unable to discharge its functions or duties. If at that point of time the bank rate is 5.. Branch Operations Team. first year as well as renewal commission Integration will stop automatically Section 42 of the insurance act 1936 License section of Insurance act 1938 556 Which is the 2nd stage in Money Laundering? Layering 557 In the case of agent's death. The beneficiaries.072 discontinued the company can waive off the premium 30 days 3 months The Claim may not be genuine The policy may be assigned The fact was misrepresented An Age Proof An Identity Proof An Address Proof 1 3 5 IRDA IRDA parents RBI Insurance Act 1938 ex wife SEBI LIC Act 1956 children 20L 40L 1Cr 2013 2014 2015 SEBI RBI IRDA Give a recommendation Give a joint decision with the consumer forum Dismiss the case First five years of policy First Two years of policy Claim Term plan Endowment plan Whole life plan 551 What is the major reason for conducting fact finding exercise? Need analysis Understand about company Introduction of agent 552 The guidelines for annual assumed growth rate are given by Life Insurance Council IRDA Actuaries 553 Pricing element is done by 554 Which is the not part of KYC norms? 555 Remuneration to Agents includes IRDA Photographs First Year Commission Insurance Company Proof of identity Renewal Commission.Varun ? Need to complete 25 hours of practical training and Need to complete 50 hours of practical training and paying Rs. Has the power to supersede the IRDA by issuing a bill Has the power to supersede the IRDA in parliament by issuing draft QB-ENG-Page 45 of 54 . In which of the year again he will apply for insurance license? 547 Who is regulatory body of money laundering in insurance sector? 548 If a case is already before the consumer forum.then the beneficiaries are wife and ? 545 Consumer Forum at district level will hear complaints up to 546 Mr. then the ombudsman should 549 Indisputability clause can be enforced by the insurance company during the 550 Ashish is looking at different plans of insurance for protection at the lowest premium. The trustee. the customer needs to submit following document excluding ……….2 % then what would be interest rate paid by the insurer to claimant on the claim amount 537 if the person is missing and the insurance comp is waiting for continued to be paid the court to issue a decree of death.advantages . premium deposit in cash is maximum allowed upto 564 Which institution was incorporated by the Insurance Act 1938 Insurance Institute of India 565 Who controls and regulates the rates..100 for the issuance of duplicate license Need to complete 25 hours of practical training and paying Rs. Central Government 10000 20000 25000 Insurance brokers association of India Life Insurance Council Insurance regulatory and development authority Reserve bank of India Tariff advisory committee Has the power to supersede the IRDA by issuing notification. His agency has also expired. ABC cleared the IRDA exam on 2010 got license but he did not work . What is the solution for Mr. Then the premium payment needs to be ? 538 There is claim recieved by insurance company which is very 15 days complex in nature and need investigation. Salary and Reimbursement.0. 2 4 Amalgamation. 3 Inception of the policy 2 Money back plan. Paid in lump sum to the survivors. 1 Actuary.50 for the issuance of duplicate license 1 The administrator.082 3 optional to the nominee to pay or not to pay 1 6 months 4 There is no Nominations 2 Education Proof 4 7 2 1 2 Insurance ombudsmen None of the Above mother 3 10L 1 2016 1 TRAI 3 Give an award. 2 Married Daughter 2 3 50000 1 1 4 National Insurance Academy 3 Insurance Institute of India 3 Can make changes in IRDA law 1 QB-ENG-Page 46 of 54 . 1 License section of insurance agent act 1938 Need to complete 50 hours of IRDA training and paying Rs. 1 Understanding the Customer 1 Underwriter 1 CII Lapsed policy details. 576 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? Childs education Marriage Emergency funds 10 days 20days 30 days 577 Who controls and regulate the rates. has planned to sell maximum products It will benefit both the company and the customer within a short span of time by giving maximum rebates to the customer to complete the contest target of the company. advantages. Tariff Advisory Committee..... marriage and emergency funds.Raghav helps his brother in his job by sharing the information of his clients after the fact finding he does to procure insurance. as per regulations.....12 18 Insurance Association Age and income level 0. Childs education. What or how would insurance company react to this ? Reputation of the company will be high due to offers to the customer Agent will be terminated 583 Mr.. terms and conditions that may be offered by insurers in the respect of general insurance business.. then he is mostly likely a member of 586 WHAT IS THE ROLE OF NIA 587 Which body formulates the Monetary Policy in India 588 Ombudsman has to give his decision within how many days? institutes of actuaries of India insurance institute of India Insurance Regulatory Development Authority Charted institute of insurance TRAINING FOR INSURANCE SECTOR Institute of Actuaries 15 Days REGLATORY BODY RBI 30 Days INSURANCE UNDER WRITING SEBI 2 Months Licensing of agents by IRDA Controlling Premium rates by IRDA centrally 10 days 589 As per IRDA regulations setting up IGMS would help in Claims by insurance companies effectively handling what ? 590 What is the stipulated time frame within which an insurer is 24 hours supposed to respond after receiving any communication from its policyholders? 591 Karthik written to his insurer about non settlement of a maturity claim..25 0. Reserve Bank of India..Act 579 The Insurance Institute of India (III) was formed in.4 To regulate To advise Government To undertake training activities 573 Ombudsman has to pass the award within how much time of the complaint being registered before him ? 1 month 2 months 3 months 574 Which body has created a call center for logging a complaint Life Insurance Council IRDA Insurance Association 575 During financial planning session if the agent finds out the following needs. Insurance Regulatory and Development Authority..Mr.567 Which is the training institute for providing training to insurance agents? 568 What is the eligible age for applying for agents license in insurance company ? 569 Board of Insurance is related to 570 basic criteria of agent would be ? 571 Investment by foreign direct investors in to Insurance co's is restricted to 572 What is the role of National Insurance Academy? Insurance Institute of India IRDA 16 SEBI sound mind & graduate RBI 15 IRDA sound mind & good income level 0.. 578 Issuance of a license to a person has been stipulated in. Needs: Income protection.. which one should be given the top priority..Raghav is an expert in fact finding .. the insurer has to reply to this within how many working days 592 When was Ombudsmen Created? 1 day 3 5 7 1998 1986 1989 QB-ENG-Page 47 of 54 . Hansa an agent.? Life Insurance Council Life Insurance Corporation 585 In life insurance business if a person is working in calculating premium rates of insurance products.. Section 43 of the Insurance Act 1939 Section 42 of the Insurance Act 1938 Section 12 of the Insurance Act 1922 1956 1999 1955 580 Which of the following team represents the members of GBIC Representatives from all insurance companies ? 581 Which council among the following focus on creating a Life insurance council positive image of the insurance industry and would also like to enhance the Consumer‟s confidence on the same ? Representatives from all government bodies Representatives from IRDA Consumer insurance council National Insurance council 582 Mrs... What will be the outcome ? Raghav will be promoted to the next level Raghav will be terminated Raghav License will be cancelled 584 The face of the life Insurance industry in India is ………. 3 Section 34 of the Insurance Act 1932 2 1947 3 Representatives from Insurance institute of India General insurance council 1 1 Agent will be qualified for the contest 3 Customer will complain to Ombudsman 2 Insurance Institute of India 1 Insurance institute of risk management 1 ACTURIAL VALUATION Tariff Advisory Committee 3 Months 1 2 Grievance of the customers 4 2 30 days 3 10 1990 4 1 QB-ENG-Page 48 of 54 .SEBI 1 17 3 2 Insurance actuary of india His contacts in the market to solicit Insurance 1 0.26 4 To Advertise globally on Indian Insurance 6 months 3 Insurance Institute of India 2 3 Income protection 4 60 days 3 Insurance Institute of India. .. 25 lakhs 20 days insurance contracts of value not exceeding Rs. 614 The charges were not fully disclosed to the customers" is a common complaint against. Grievance Redressal Officer.. Some Specific Insurer Those Insurer who did not created Insurance Ombudsman System Reaches at a level as per industry trends All insurer all types insurance Inspection by IRDA All types of insurance except Motor insurance Audit by Finance Ministry 599 Regulation issued by IRDA required that the decision on the proposal must be conveyed to the proposer within 610 What is the minimum Sum Assured allowed for Micro Insurance? 611 How many ombudsmen offices located in India? 612 What the name of department that is established by IRDA to deal with customer complaints? 613 The insurance ombudsman has been appointed to protect the interest of.other than IRDA grievance readdress forum & COPA.. apart from Procedure.. Which insurer will have a grievance redressal System 608 Pooling of insurance applies to 609 AML Program of every insurer to include _______________.. 617 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. Within how many days they can return the poly? 596 Consumer can call Toll free No..employer Same for all policies sold by the advisor except corporate clients husband-wife Only for policy for which complaint has been given family members 606 De. What is he dealing into ? 5000 10 Only life insurance Appointment of Principal Compliance Officer 10000 15000 12 Customer Complaint Department (CCD) Customer Grievance Department (CGD) 14 Consumer Affairs Department (CAD) policyholders shareholders insurers IRDA Agents Shareholders Protection of Policy holder Interests regulation 2002 IRDA claim protection regulation 2002 Nodal officer Grievance call center C. 615 Which regulations take care of the settlement of claims ? 616 If any consumer is dissatisfied with the customer care cell of any insurance company to whom they can escalate their grievances. can a complainant go to get his grievances against insurance company ? Forum at district level Forum at state level National commission Ombudsman Insurance Institute of India Insurance Association 602 What are the ways by which a policy holder can make complaints 603 If the complainant is disagreeing with the decision of the company on the claim then he can approach to ombudsman in 604 If a policy holder buys a policy from the advisor and lodges a complaint.IRDA policy settlement regulation 2004 Compliance cell Policyholder grievance Regulation Policyholder‟s Protection regulation Ombudsman Regulation Integrated Grievance Management System. 20 lakhs 15 days insurance contracts of value not exceeding Rs. IRDA has established 619 Life Insurance policyholder is entitled to refer complaint to insurance ombudsman referral is made in maximum period of one year from 620 Mr A Is working as Nodal Officer in Insurance company. Original complaint event on which complaint is based response by insurer handling complaints assessing risk Licensing of agents QB-ENG-Page 49 of 54 . they have the option to return the policy stating the reasons for their objection. Internal Grievance Redressal Cell of the Insurer. 30 lakhs 1 month 600 Whom should customer contact in case of any dispute for a claim more than 20 lakhs 601 Which other Complaint council body .. 618 To ensure that the customers complaints are handled effectively.593 Insurance companies are required to honor the awards passed by the Insurance Ombudsman 594 What all grievances can be taken up to the Ombudsmen 15 days 10 days 20 days partial or total repudiation of claims by the insurer dispute with regard to premium paid or payable delay in settlement of claims 595 When the insured disagrees with any of the terms or conditions of the policy after the policy is issued. it should be treated as : 605 Group Insurance can be taken in following relationship email Toll free No. Newspaper 1 Year 6 weeks 12 weeks Same for all policies sold by advisor employee.tarrification is a process by which pricing of Insurance Rises Decreases 607 As per Regulation for protection of Policyholder ‟s interest 2002 (IRDA)... for any Grievance or he can also contact 597 What is the free look time available after receiving policy Documents? 598 What is the limit of Ombudsman claim settlement? 30 Consumer Affairs Department of the IRDA 15 Insurance Ombudsman 20 Insurance Company 30 15 20 insurance contracts of value not exceeding Rs.. Training and audit. It is optional 4 Only Non-life insurance Inspection by Auditor General 1 3 3 20000 1 15 Consumer Protection Department (CPD) 2 General insurers.3 days 1 ALL THE ABOVE 4 25 2 All of the above 4 45 2 insurance contracts of value not exceeding Rs. 1 Underwriters 2 D. Protection of claim settlement regulation 2002 Compliance officer 1 3 1 Compliance Regulatory 2 Consumer Affairs Department. 50 lakhs no time bar 1 Ombudsman 2 1 FERA 1 Email or Toll free Number 4 2 months 1 None applicable 1 society members 1 Insurance can price their product on their self past experiences. expiry of policy Managing administration for the branch 4 3 1 QB-ENG-Page 50 of 54 . . IRDA Regulations code of conduct.621 Mr. the agent advised the client to opt for TROP product. what is the broken relationship with the customer next action of the Agent 624 An advisor while explaining the policy and to sell he accepts to give a part of his Agents commission. Within how much time the Ombudsman has to give his recommendation from the date of receipt of complaint? 15 Days 622 On submission of complaint against an insurer to the 10 days ombudsman... the client. this will often be apparent by noting the impact of which key static Average premium size Expense ratio 639 Why does an Insurer insists on age proof documents? To calculate SA For risk Assessment For Identification Proof 640 Mr A submitted the proposal form . Over selling of Insurance policies. As agent he must carry ethical unethical professional Company‟s code of conduct.. A is not satisfied with solutions provide by Insurer so he approaches Ombudsman... Explaining all details of the policy to customer. the declaration is necessary in which document 642 Mr ABC buying is TERM insurance policy .. Behavior that is based upon the moral judgments of an individual Under selling of Insurance policies. Maximum no. Sharma is a newly recruited insurance advisor.. who is unmarried and has no dependent. But the client refused.practice good bad A study of what makes one‟s own actions right or wrong. Shankar ‟s action can be termed as Pankaj being a license insurance advisor has to follow code of Conduct provided by: If the sales target for an insurance agent is significantly reduced .. what is the limits one month 2 Months 15 days 20 days he plans to change the plan He has to explain the reasons for rejection to the customer 0. According to ethical business practices what will the agent do ? 628 Under the hospital care rider what is the payout made Insurance Institute of India Insurance Regulatory & Development Authority Indian penal code Enquire about the refusal from the client Suggest an alternative plan Pass on to the superior 10% of the sum assured Specified amount multiplied by the number of days the policyholder is hospitalized expenses incurred per day multiplied by no.. compulsory 632 Mr.... Consequently... Overselling of insurance policies.. this tends to indicate that ethical practices by the company called as ? QB-ENG-Page 51 of 54 . Here Mr. Churning.. the insurer should mentioned ombudsman address in which part of policy Zainab takes Insurance in the life of jasmeet . Rahul is a licensed insurance agent. To meet his month target he explains only the good points of newly launched plan to his customer. Sharma's behavior 633 is....1 0. this should normally have what impact on the activity of churning? if there is a significant reduction in the proportion of an Insurer's Policies which are returned during free look period. sold a term insurance policy and unitlinked insurance policy (ULIP) to Amar. Zainab will be 643 document On submission of proposal form When FPR is issued Policy issued Policy document proposal form FPR Operative clause preamble Information statement Proposer Nominee appointee 634 635 636 637 out his role in accordance with Shankar. an adviser. when will the risk begins for the company 641 To be valid Contract . 631 For an insurance advisor churning is. Underselling of insurance policies. Insurance Regulatory Development Authority Life Insurance Company Reserve Bank of India Less likely More likely Less Transparent have worsened have improved focus mostly on internal activities 638 When insufficient emphasis is placed on the long term nature Average policy term of Life Insurance policies during selling process.. of days stay in the hospital 629 Ethics can be defined as… 630 Which is not unethical behaviour in below statements? Those values we commonly hold to be “good” and “right”.2 He cannot offer any commission 625 Raju is a certified license holder under what circumstances he when he sells term insurance needs to hold his certified license with him that is issued by IrDA when he represents himself as another insurer when he sells pension policies 626 ___________ has laid down the Code of Conduct for all agents 627 After doing the need analysis of the client. decision is made in favour of the policyholder. IRDA Acts code of conduct... of days the insurer must honour the ombudsman's verdict: 623 A policy has been rejected by the company under direct he has to inform the customer that the co has intimation to the customer and copy to the Agent. 2 Insurance Acts code of conduct. More Transparent 1 1 focus mostly on external activities 1 Persistency ratio 4 for financial assessment 2 when agent accepts the money 2 RPR 2 Schedule Trust 3 1 QB-ENG-Page 52 of 54 . 4 Churning. 3 Ethical practice by an adviser.3 Months 2 25 days 2 He takes up with the higher authorities He can offer up to 50% under all circumstances Reserve bank of India 3 3 4 2 Pass on to the other agent 1 100% of Sum Assured 2 All of the above. 3 appreciable 2 Perfect. 3 SEBI. What's the weight of Gold for 100 units ? 656 Insurer transfers the risk which it cannot bear to whom ? 5/10 gms 50/100 gms 15/20 gms Reinsurance company Bancassurance Third party admiration 657 What overriding criteria an insurance agent consider while proposing a solution 658 Vivek takes insurance policy & dies after 8 months . In relation to exchange this would help him in which way ? Harish is elder than ramesh RAMESH is working in oil company and is rich Ramesh owes money to Harish Decrease his liquidity Reduce his encashments will give insurance against certainty 666 Implication of Daily hospitalization benefit plan will be which of theses ? 667 Ram has taken an Endowment plan for Rs 4LK SA . its found that there has been criminal charges against him in fraudulent act . what could be the reason policyholder can pay the premium of Rs 5. Invested in ETF . What 652 A Branch underwriter Clause Sales Manager Rejection Actuary acceptance Partial withdrawal done earlier Lien had been imposed its a money back policy could be the maximum Tax benefit he can avail under sec 80 ? has invested Rs 5000 in PPF and Rs 1 Lk in life 653 C Ram Life Insurance premium Insurance premium .644 Loan is available for a policy in which there is a feature of ? Fund switch saving element partial withdrawal 645 The appointee's role would be when 646 If policy has to be made Paid Up . This would be ? Consideration Consensus ad idem Capability 50000 100000 QB-ENG-Page 53 of 54 200000 .000 . What type of Hazard this will be categorised into ? Occupational Physical to help the underwriter to asses the risk Moral 649 Who is the primary underwriter ? 650 Lien can be considered as an alternative to which of the following ? 651 At the time of maturity of the policy . what could be the maximum SA he can take for a critical Illness rider ? 668 Why would self employed individuals have the need to buy medical insurance rather than individuals working in Public sector ? 669 In which stage of life an individual does not require any protection cover 670 Mr y has been approached by an agent and on fact finding the score of 3 would indicate what risk appetite for Mr y ? Fixed & daily only on selected hospitalization for surgeries Only in case of critical illness Rs 2 LK Rs 50000 Rs 4 Lk Public sector individuals don‟t fall sick Self employed individuals do not have sick leaves Public sector individuals enjoy medical insurance covers related to job Childhood Retirement Pre Retirement High Risk Low risk Moderate risk 671 Both parties to a contract agree and understand the same thing and in the same sense . then the basis of the exclusion would be which ? 659 According to IRDA 1999 . the Policyholder received just quarter of SA and bonus . If the claim needs to be excluded . Which of the following statements best describes the insurable interest ? 664 Investing In ULIP can get exemption up to what limit in Sec 80 c ? 665 Suresh wants to transfer his physical gold into Gold ETF . what particular feature should exist 647 Why is ACR important ? Medical check up for policyholder is there when nominee is minor Indexation contribution Nomination facility when loan has to be taken by policyholder Rider Benefits To calculate commission for the agent to verify the plan proposed 648 While Underwriting MR X proposal . In which he gets maximum tax benefit ? 500000 300000 200000 PPF 50% IN BOTH 654 The best way to overcome the problem of investment decision depends mainly on peer influence is ? By canvassing wide peer group seeking professional advise go for low investment tranche 655 As an investment diversification Mr B . central government involvement in insurance sector would be ? 660 Complaint council bodies other than IRDA grievance redressal forum & COPA would be which one ? 661 Which other way IRDA can be contacted apart from toll free number ? 662 Raju is certified license holder under what circumstances he needs to hold his license with him that is issued by IRDA ? Risk Suitability Flexibility Murder Body not found Accident death In advertisement In legal handling of IRDA problems Licensing of Insurance companies Ombudsman Insurance institute of india Life insurance council Branch office of insurer Email Insurance Ombudsman Under all circumstances When he sells term Insurance When he is selling in different city 663 Harish takes a life insurance policy on life of RAMESH who is his friend .00. surrender 2 for signing declaration while taking the policy on children name Saving Element 2 to calculate the premium 3 4 Financial 3 4 Agent Time barred 2 It is a Term plan with return of purchase price 100000 95% IN Life insurance premium and 5% in PPF Postpone of investment decision 3 4 4 2 10/20 gms 2 actuaries 1 Cost 2 Suicide 4 issuing grants 4 FERA 1 Head office of Insurer 2 when he is selling ULIP plans Harish Owes Money to Ramesh Nil Hedge against Inflation SA Rs 1 Lk 1 3 2 3 1 3 Self employed individual wants to take best of the hospital benefits 3 Young married 1 No risk Capacity 3 2 QB-ENG-Page 54 of 54 .