eng test 4

1.        Mr. shailsh has an endowment policy with 30 years policy term, he has paid for eight years.  The sum assured Rs.8,00,000/- and accumulated bonus Rs.60,000/-. What is the paid up value if bonus accumulated and if not bonus accumulated?
A.      213333 & 273333
B.       213333 & 229333
C.       229333 & 273333
D.      229333 & 293333

2.        The consequences of these risks which will affect specific individuals or local communities in nature is called as
A.      Pure risk
B.       Financial risk
C.      Particular risk
D.      Physical hazard

3.        What is the disadvantage to the insurer in case the persistency falls
A.      Lower profits
B.       Higher profits

4.        For the customer whose claim has been refused by the company, the three places where he/she should follow up are – Ombudsman, IRDA Customer Grievance Cell and ………………………..
A.      Consumer Forum
B.       COPA
C.       Sebi
D.      Life Insurance Council

5.        If a policy with premium of Rs 5000 has matured, how much will be deducted when the maturity claim arises
A.      Nil
B.       1%
C.       5%
D.      10%

6.        When a person is investing in Debt Mutual Fund, what is the primary objective
A.      Good Returns
B.       Regular Income
C.       Safety
D.      Liquidity

7.        If the employer has insurable interest in the life of an employee, what kind of policy is this?
A.      Surety insurance
B.       Keyman Insurance
C.       Partnership Insurance
D.      Debtor Insurance

8.        In the sales illustration, the reduction of the actual benefit amount is mainly due to deduction of
A.      Commission
B.       Charges
C.       Non guaranteed benefits
D.      Reversionary Bonus

9.        The concept of indemnity is based on the key principle that policyholders should be prevented from
A.      Insuring existing losses.
B.       Making false insurance claims.
C.       Paying excessively for insurance cover.
D.      Profiting from insurance.

10.     The client of reinsurer are
A.      Insurance companies
B.       Banks
C.       Asset Management Companies

11.     A customer gets periodic benefits without any claim and then when he dies during the term of the policy, his nominees gets the sum insured. What type of policy is this ?
A.      Endowment
B.       Term
C.      Money Back
D.      Whole of Life

12.     For assessing the risk of a group health insurance policy, which of the following information is the most critical
A.      Group lifestyle
B.       Employees
C.      Age of the group
D.      Medical history of group

13.     According to Insurance Brokers Association of India, what is the most appropriate relationship between Insurer and Broker?
A.      Insurance broker represent the client and the insurer remunerate the broker
B.       The client represent the broker and the insurer remunerate the broker
C.       Insurer represent both client and broker remuneration
D.      Broker only service the client

14.     A low persistency ratio for the insurance company means that:
A.      The customers are satisfied with the products
B.       The company is acquiring more business and new customers
C.      A large numbers of policies have lapsed / surrendered resulting in loss of profit
D.      The company will not declare bonus



15.     For annuity plans, before receiving regular/periodic annuity payments, the individual can make a lump sum withdrawal. This is known as commutation. Up to what proportion of the accumulated fund can be withdrawn?
A.      The entire fund can be withdrawn
B.       Only half of the fund can be withdrawn
C.      Only one third of the fund can be withdrawn
D.      Only one fourth of the fund can be withdrawn

16.     What is the stipulated time frame within which an insurer is supposed to respond after receiving any communication from its policyholders?
A.      24 hours
B.       1 day
C.      10 days
D.      30 days

17.     For an insurance agent, a low persistency ratio means :
A.      Loss of renewal commission
B.       High client satisfaction
C.       Higher reputation
D.      More earning of First Year Commission

18.     The proposer can withdraw from the contract, if they disagree with the terms and conditions of the Policy, within a ‘free look-in period’ of
A.      15 days from the date of receipt of the policy document
B.       20 days from the date of receipt of the policy document
C.       25 days from the date of receipt of the policy document
D.      30 days from the date of receipt of the policy document

19.     In the case of life insurance, insurable interest should exist
A.      At the inception of the policy
B.       At the time of a claim
C.       At the time of every renewal premium payment
D.      All the above occasion

20.     In which of the following plan remaining part of the Sum Assured is paid on maturity?
A.      Endowment Plan
B.       Convertible Plan
C.      Money Back plan
D.      Term Plan

21.     Rakesh wants to buy a policy primarily for Risk Cover but at the end of the term he wants to get at least some return. Under which policy he will get these benefits
A.      Endowment plan
B.       ROP plan
C.       Whole life plan

D.      Ulip

1.        Payment/Investments in Kishan Vikash Patra under post office schemes is done
A.      Regularly with no fixed term
B.       Lump Sum with no fixed term
C.      Lump Sum for fixed period of time
D.      Regularly for fixed period of time

2.        Prashant buys an Endowment Plan with a sum assured of Re. 100000 and wants to make use of tax benefit under the policy for whole SA. How much premium would help him avail this benefit
A.      Less than 10000
B.       More than 10000
C.      Less than 20000
D.      More than 20000

3.        Under the IRDA guidelines for Claim settlement, any queries or additional documents can asked from the claimant within
A.      5 days from the receipt
B.       10 days from the receipt
C.      15 days from the receipt
D.      20 days from the receipt

4.        Law of Large number helps the insures to
A.      Calculate the premium
B.       Increase the profitability
C.      Ascertain the death ratio
D.      Declare the bonus

5.        A person with a criminal background due to Financial fraud would come under which hazard
A.      Physical
B.       Moral
C.       Occupation

6.        Whose signature is required on attestation of the policy?
A.      Agent
B.       Policy holder
C.      Authorized officials of insurer
D.      Proposer

7.        What is the ceiling of tax exemption under 80 c.
A.      1 lakh
B.       1.5 lakhs
C.       2 lakhs
D.      3 lakhs

8.        If customer has applied for a policy with 1 Lac SA then what is maximum Premium on which he can save Taxes
A.      Maximum 20000
B.       Maximum 100000
C.      Maximum 120000
D.      Maximum 150000

9.        If Ombudsman makes a recommendation and is accepted by Complainant then it would be
A.      Binding on the insurer
B.       Binding on Court Of Law
C.      Binding on IRDA
D.      Binding of Insured

180.  In India almost each and every sector is having regulatory agencies for following up the companies and institution operating in the sector. Likely, regulatory agency for insurance sector is known as - 
A.      SEBI
B.       ICAR
C.      IRDA
D.      RBI

181.  Govt. of India has full control on IRDA. Ultimately Govt. of India which of the following matters/issues of IRDA on an ongoing basis –
A.      Formation of IRDA
B.       Staffing pattern of IRDA
C.      Policy matters
D.      It is an autonomous body. Govt of India has no control over IRDA

182.   Mr. Rahul is having a life insurance policy. After 8 months he was died. But when the claim is returned by the Insurance Company as the claim cannot be settled because of a specific clause mentioned in the policy document. Which is the most likely clause? 
A.      Special clause
B.       Suicide Clause
C.       Lien clause
D.      Paid up clause

183.  Mr. Ramesh has taken a life police as recommended by an insurance agent. Now the role of Agent’s Principal lies
with –
A.      The insured
B.       Insurance Company only
C.       Ramesh only, none else
D.      IRDA, since entire insurance is under control of IRDA

184.  From Insurance Company’s point of view, most important aspect in a Term Insurance Policy lies with –
A.      Good ethics
B.       Fact findings
C.       The proposal
D.      Underwriting process

185.  Mr. Purusottam has joined as Director of Insurance Company. Now as per the IRDA act he is not allowed to play the role of which of the following:
A.      Agent
B.       Chief Actuary
C.       Under writer
D.      None of these

186.  Mr. Amar has taken a Term Insurance Policy from Insurance Company.  A term insurance is basically what kind of contract?
A.      Indemnity Contract
B.       Insurance Contract

187.  There are two most widely used mode of lodging complaints against insurance company by the insured. One is toll free phone call. Name which of following will be 2nd most widely used method among the following alternatives.
A.      Insurance ombudsman
B.       Direct visit to IRDA office
C.       Comparison website
D.      E mail

188.  XYZ Insurance Company has started promoting their insurance products mostly through television and news paper advertisements. Hence, the said company is operating through –
A.      Direct channel
B.       Indirect channel
C.      Using both the channels
D.      Agent channel

189.  ABC Insurance Company has appointed many agents. They are helping in underwriting process to the underwriters. However, Mr. Vimal, an agent has done adverse selections. From insurance company’s point of view, which among the following is most likely considered to be the adverse selection?
A.      Obtaining a policy from a very poor person
B.       Obtaining policy from a rich man
C.       Vimal has obtained most of his policies from railway porters
D.      In certain cases material facts are changed to obtain higher claims

190.  Vikash a 30 years unmarried young man has invested a pretty good amount in shares. Recently he is shifting his investments Gold ETF. Now state which of the following is the most likely motive of Mr. Vikash by doing so?
A.      He is interested in savings only
B.       He prefers both regular savings as well as capital appreciation
C.       He prefers capital growth only
D.      Recently he is going to marry that is why he is more interest in Gold to keep the gold of his would be wife in Gold ETF

191.  It has been observed that, most of the policies issued by M/S XYZ Insurance Company have been forfeited by the insured during the free look period. What may be the most likely reason so far ethics is concerned?
A.      The company has no ethics
B.       The company has only internal ethics but not external
C.       The company has external ethics but not internal
D.      The company has both the ethics

192.  An insurance company has issued a policy document to one of its policy holder. In the policy document they have mentioned the payment of premium by the insured, payment of SA by the insurance company on the happening of insured event etc. which part of the policy document is most likely to contain such matter?
A.      Preamble
B.       Schedule
C.       Terms and conditions
D.      Operative clause

193.  The lung cancer is aggravated by smoking. In terms of insurance, these are respectively known as –
A.      Hazard & peril
B.       Peril & hazard
C.       Effect & cause
D.      Either peril or hazard

194.  Sohan and Amit are 30 years old unmarried persons. Sohan is having dependent mother where as Amit has no dependent. Which type of policy most likely to be chosen by Sohan?
A.      Health insurance for mother
B.       Life insurance policy
C.       Liability insurance policy
D.      Retirement policy

195.  Ashok is a young married man with beautiful young wife and two kids. He should select which types of insurance projects?
A.      Contingency funding
B.       Health insurance
C.       Housing Loan insurance
D.      Retirement benefit insurance

196.  Underwriting is an important aspect of insurance business. In which of the following situations underwriter must be most cautious? 
A.      Low age, low sum assured
B.       Low age, high sum assured
C.      High age, high sum assured
D.      High age, low sum assured





197.  A Govt. employee after retirement has chosen to take 10% of his pension benefit in cash. Which of the following options shall be applicable to the person so far income tax payment is concern?
A.      It is absolutely tax free
B.       He has to pay 10% TDS on the amount taken in cash
C.       He has to pay 30% TDS on the amount taken in cash
D.      He is not allowed to take in cash.

198.  Amit has decided to invest Rs. 1,00,000/- every year in ULIP where as Ramesh has decided to invest the same amount in PF in order to get IT exemption in 80C. In this view which of the following is correct?
A.      Both the investments have same impact.
B.       In ULIP IT exemption u/s 80C is not available.
C.       PF is also not eligible for IT exemption u/s Sec. 80C.
D.      Both are taxable as per Income tax Act 1961

199.  Ram and Shyam, both have taken life policy from same company through same agent for same period. During the process of disclosure, the agent has revealed that he obtains more commission from Ram. What may be the probable reason for the same?
A.      Shyam has taken more number of policy that is why he has been given concession.
B.       Ram’s policy is having rider
C.      Ram is older than Shyam
D.      Ram is having wife and children, where as Shyam is unmarried.

200.  Ramesh is a brother of Rakesh, in which circumstances Rakesh can propose a policy on Ramesh’s name
A.      If Ramesh owes him money
B.       IF Ramesh gives a declaration
C.      If Ramesh proves that he need the money
D.      If ramesh want to invest by his brothers’ name.