1.
How are perils and hazards
normally distinguished under term insurance policies?
A. Perils are medical factors which influence the risk
of dying and hazards are lifestyle activities which influence the risk of
dying.
B.
Perils are risks that policyholders will
die before a specified date and hazards are factors which could influence that
risk.
C. Perils are factors which affect the risk being
insured and hazards are the size of the risk being insured.
D.
Perils are factors which could
influence an insured event occurring and hazards are the actual events which
will trigger a payout
2.
In the context of financial planning, how is the difference
between real needs and perceived needs best described?
A.
Real needs are financial needs and perceived needs are
non-financial needs.
B. Real needs are actual needs and perceived needs
are based on a client’s thoughts and desires.
C.
Real needs are identified by the insurance agent and
perceived needs are identified by the client.
D.
Real needs are needs which satisfy an objective and
perceived needs are needs which do not satisfy an objective.
3.
If a person is concentrating more on health plan and
retirement plan then at which stage of life is he in.
A.
Young unmarried
B. Young
married
C. Young
married with Kids
D.
Pre retirement
4.
The Institute of insurance and risk management along with
insurance education does what more
A. Regulation
B. Redressal
C.
Research
D. Repository
5.
If the client does not wish to proceed with the
recommendations right at the moment the agent should
A. Insist
on taking the product right away
B.
Should ask for the reason for not going with the recommendation
C. Should
ask for a future date from the client
D. Should
review once again
6.
Suresh has adequate reserve capital with him and he wishes
to protect his income, moreover he feels that if he does not die then he would
need the amount. What type of plan should he opt for?
A. Term
Insurance Plan
B. Endowment
plan
C.
Return of premium plan
D. Pension
plan
7.
A claim was paid in a policy and it was advertised in the
newspaper also. This indicates that the policy was.
A.
It was assigned.
B.
It was paid up.
C.
It was
lost.
D.
It was surrendered.
8.
An indemnity bond was signed in a policy when the claim was
paid. This indicates that the policy was.
A.
It was
lost.
B.
It was paid up.
C.
It was lapsed.
D.
It was surrendered.
9.
Manish and Manisha is a married couple with one child. They
want to plan for savings, child education/marriage and their retirement and
protection of income. Which should be their lowest priority?
A.
Marriage.
B.
Savings.
C.
Education.
D.
Protection.
10.
While calculating HLV along with future income, no of years
of work, increments in salary what is also to be taken in to account?
A.
Inflation.
B.
Interest.
C.
Discount
rate
D.
Compounding.
11.
If RBI increases the interest rates then what will be the
effect on share prices.
A.
Shares will be more attractive.
B.
Shares
will be less attractive.
C.
Fixed deposits will be more attractive.
D.
Fixed deposits will be less attractive.
12.
Vishal and sandeep applied for a health plan in XYZ Life
Insurance Company. Vishal is asked to undergo a medical checkup but Sandeep is
not asked to do so. What will be most possible reason?
A.
Sandeep has taken another policy from XYZ Life Insurance
Company
B.
Vishal
is older than Sandeep
C.
Sandeep is earning more then Vishal
D.
Vishal is working in a MNC
13.
During fact finding, What will be the next step after
Identifying clients need
A.
Quantify
clients need
B.
Priorities Clients Need
C.
Recommending Product
D.
Fill up the proposal form
14.
What is purpose of investing money in debt mutual fund?
A.
Easy access
B.
Fixed income
C.
Tax Benefits
D.
Liquidity
15. 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?
A. 213333
B. 229333
C. 273333
D. 293333
16. What is the similarity between
Recurring Deposits & cumulative deposits in a bank
A. Guarantees
B. Taxation
C. Tenure
D. Lock in periods
17. Mrs. Sheela received some amount
out of her husband’s death. In such a situation what will be her prime
focus?
A. Savings
B. Insurance
C. Investment
management
D. Planning for pension
18. 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
A. Physical
hazard
B. Fraudulent representation
C. Moral hazard
D. Peril
19.
Which of the following falls under voidable contract?
A.
Misrepresentation
B.
Lack of insurable interest
C.
Fraud
D.
None of the above
20.
Law of large numbers is worked out by which of the
following?
A.
Pooling of risk
B.
Maintaining insurable interest
C.
With utmost good faith
D.
Randomness
21.
If a client wants to
compare between all financial products then the best person he can approach is
A.
Individual agent
B.
Corporate agent
C.
Bank
D.
Broker
22.
If a person want to maintain emergency funds the best place
is a bank or
A.
Equity market
B.
ULIP
C.
Debt
mutual fund
D.
FD
23.
During a fact finding process the need analyzed were income
replacement and children’s education. But the customer insists on only a child
plan for the time being and asks the agent to give him a child plan. The agent
should.
A.
Do the fact finding exercise again
B.
Insist with the client to take a term plan
C.
Give a
child plan and revisit the client on a later date
D.
Give the lead to another agent
24.
If a case is already before the consumer forum, then the
ombudsman should
A.
Give a recommendation
B.
Give a joint decision with the consumer forum
C.
Dismiss
the case
D.
Give an award.
25.
If the sum assured remains the same, what will be impact of
net premium if the age of the policyholder increases
A.
It rises
B.
It falls
C. It remains constant
D.
Gross premiums increases
26.
What is the advantage of converting physical gold assets to
gold ETFs.
A. Liquidity
B.
More gold in value
C.
Purity
D.
More conversion value
27.
For which of the following reasons, the underwriter should
ask beyond agent’s confidential report.
A.
Physical Hazard
B.
Moral Hazard
C. SA is too high
D.
Pure Risk
28. After doing the
need analysis of the client, the agent advised the client to opt for TROP
product. But the client refused. According to ethical
business practices what will the agent do ?
A. Enquire about the refusal from the client
B.
Suggest an alternative plan
C.
Pass on to the superior
D.
Pass on to the other agent
29.
Generally insurance companies do not hold the premium in
case of a fraud or misrepresentation. However, due to which of the following
circumstances the insurer can retain the premium of the policyholder
A.
Fraudulent claim
B. Indisputability clause
C.
Redressal procedure
D.
Pending decision from Ombudsman
30.
According to IRDA agent’s code of conduct, what is the best
method of showing the amount of commission earned by the advisor
A. Signed copy of sales illustration
B.
Brochure
C.
Sales Communication
D.
Press releases
31.
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?
A. Under no circumstances
B.
Under conditions of the reinsurer
C.
As directed by actuary
D.
As per company policy
32.
In case the customer has stopped making payment for the
premium of the policy. What are the two most important things required in order
to reinstate the policy?
A. Reinstatement Fee and Proof of continuing good
health
B.
Premium cheque and health declaration
C.
Only health certificate
D.
Premium cheque with arrears
33.
If the customer has invested money in a pension plan from
company A and buys an annuity from company B, what is the nature of
transaction?
A.
Life Long Annuity
B. Open Market
C.
Reinsuring Annuity
34.
If a policy holder buys a policy from the advisor and lodges
a complaint, it should be treated as :
A. Same for all policies sold by advisor
B.
Same for all policies sold by the advisor except corporate
clients
35.
An investor holds a wide range of shares. If the Reserve
Bank of India announces a series of significant interest rate increases, the
prices of these shares are most likely to
A.
Become volatile
B.
Decrease
C.
Increase
36.
In life insurance business if a person is working in
calculating premium rates of insurance products, then he is mostly likely a
member of
A.
institutes
of actuaries of India
B.
insurance institute of India
C.
Charted institute of insurance
D.
Insurance institute of risk management
37.
In a life insurance policy it is later found that the person
doesn’t have insurable interest then the contract
is
A.
expired
B.
reviewed
C.
Void
D.
Valid
38.
If both parents of proposer died in their thirties due to
heart attack what is the kind of peril or hazard the proposer has?
A.
Insurable hazard
B.
moral hazard
C.
non insurable hazard
D.
Physical
hazard
39.
Raunak earns 80,000 per month as salary. He has taken a
House loan of Rs. 500000. What will be the maximum amount of EMI that can be
charged by the Bank to recover the loan amount?
A. Rs. 32000 per month
B.
Rs. 24000 per month
C.
Rs. 40000 per month
D.
Rs. 48000 per month
[Chapter 6/13 -
Care should be taken to ensure that EMIs do not exceed 40% of the monthly take
home salary.]
40.
Frequent switching is not advisable in ULIP plan because it
increase
A.
Investment
Risk
B.
Risk of death
C.
Uncertainty of return
D.
Chances of lapse
41.
According to
insurance terminology which of the following is correct?
A.
Lung cancer is a hazard whereas smoking is a peril
B.
Smoking
is a hazard and lung cancer is a peril
C.
Lung cancer is a peril and smoking is a moral hazard
D.
Smoking is a moral hazard whereas lung cancer is a peril.
[Chapter 2/5 - If lung cancer is a
peril then smoking can be a hazard that may increase the chance that the peril
(lung cancer) will occur.]
42.
An insurance agent sold two policies to two different
persons having the same policy term. He declares the commission to each of
them. The commission of one of the policy is more than the other. What should
be the reasons for this difference?
A.
Risk profile of both the policyholder are different
B.
Age of both the candidate are different
C.
One has chosen Single premium policy and other has chosen
regular premium policy
D.
Both
have chosen different kind of policies.
43.
Open market option under Annuity policy would extend which
of the following benefit?
A.
Ensure
Better annuity rate
B. Increase in the range
C.
Increase
in return
D.
Switch
of Funds
44.
Akash is an Unmarried person and employed with company ABC
and drawing a handsome salary. He has no liabilities. What kind of plan can be
suggested to him?
A.
Money
Back
B.
Term
Plan
C.
Endowment
Plan
D. ULIP
45.
What should an agent do in order to understand the mental
state of client in respect to his investments in saving products
A. Fact finding
B.
Consulting
the client’s parents
C.
Consulting
the family of the client
D.
Reviewing
his existing investments
46.
47.
Net premium is equal to
A.
Premium plus interest earning
B.
Risk premium plus interest earning
C.
Premium
minus interest earning
D.
Risk premium minus interest earning
48.
Pooling of risk in insurance means
A.
The premium collected & deposited in a pool
B.
All
similar risks are pooled together
C.
Premium is pool to make claims
D.
Contribution of insurance company
49.
Principle of utmost good faith will operate in existing
policy
A.
Every time premium is paid
B.
If the
policy has lapsed and it has to be revived.
C.
If the insured person falls sick and is admitted to
hospital.
D.
If the insured person changes his job.
50.
Both the parties to a contract must agree and understand the
same thing and in the same sense which is called
A.
Consideration.
B.
Legality of an object.
C.
Consensus
ad idem.
D.
Acceptance.