Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Which market areas do Micro Insurance product concentrate?
a. People with large families c. people employed with the government
b. people with low income d. people with high income
ANSWER: B
2. Insurance works on the principle of?
a. Trust c. Randomness
b. Sharing d. All of the above
ANSWER: D
3. Insurance covers situations when?
a. The consequence of the happening are
beneficial
c. The consequences are immaterial
b. The consequence are harmful d. The consequences of the happening
are beneficial
ANSWER: B
4. Life insurance is better than other avenues of saving in respect of?
a. Appreciation c. usefulness in emergency
b. Tax benefits d. All the above
ANSWER: C
5. Lung cancer and smoking is considered as?
a. Occupational Hazard c. Smoking is peril and lung cancer is
hazard
b. Death is certain d. Lung cancer is peril and lung cancer is
hazard
ANSWER: D
6. The consequences of risk which will affect specific individuals or local communities in
nature is called?
a. Pure risk c. Particular risk
b. Financial risk d. Physical Hazard
ANSWER: C
7. Which risk is associated with those events which are not in control of an individual and
no possibility of making profit?
a. Pure risk c. Financial risk
b. Particular risk d. Insurable risk
ANSWER: A
8. What key event is most likely to make an insurance contract not a valid contract?
a. The circumstances are legitimate c. The life assured is major
b. Representation of facts by
policyholder is true
d. There is no insurable interest attached
to policy
ANSWER: D
9. Where insurable interest is missing, it means it is?
a. Surety-co surety c. Husband-wife
b. Employee-employer d. Brother-sister
ANSWER: D
10. Before submitting the proposal to company, Shyam informs his agent that he is not sure
whether he can pay the premium for 15 yrs. How will it affects the contract?
a. Consideration c. Consensus ad idem
b. Capacity d. Offer and acceptance:
ANSWER: D
11. What does indemnity mean?
a. To compensate a loss c. To-encash probability of loss
b. To prevent a loss d. To avoid a loss
ANSWER: A
12. What are the factors involved in calculating surrender value?
a. Number of year's premium paid c. Sum assured
b. Number of premium payable d. All of above
ANSWER: D
13. Saurav is 32 years old and is working in an MNC. He bought an end plan. He has
nominated his 1 yrs old daughter as a nominee and his wife as an appointee. After 5 year,
he dies in a road accident. To whom will the claimed money be payable?
a. Nominee only c. Appointee only
b. Legal heir of life assured d. Will be payable to Sanvi at the age of
18th
ANSWER: B
14. Jyoti is submitting a copy of her permanent account number as age proof for buying a
money back plan. Her document will be considered as:
a. Non-standard age proof c. Valid address proof
b. Standard age proof d. Proof of income tax
ANSWER: B
15. Income replacement methods equates human life value (HLV) to?
a. Future value of present earning c. Present value of previous earning
b. Present value of future earning d. Future value of previous earning
ANSWER: A
16. Which one of the following bonuses is given by insurer as an incentive to the insured for
long term?
a. Simple revisionary bonus c. Persistency bonus
b. Compound revisionary bonus d. Interim bonus
ANSWER: C
17. Ramesh bought an endowment plan for ten years. He pays same amount every year, this
kind of premium is called?
a. Gross premium c. Risk premium
b. Level premium d. Net premium
ANSWER: B
18. If a person consumes alcohol, what type of hazard is it?
a. Moral c. Ethical
b. Physical d. Ethical and Moral both
ANSWER: B
19. A customer has opted for a 5 yrs. guaranteed annuity option. What will happen to the
annuity, if the customer survives for 5 yrs. after the end of guarantee period?
a. It will be paid up to 75yrs c. It will continue till he dies
b. It will be continued for next 5 years d. It will be cancelled
ANSWER: C
20. Term Insurance plan will give only?
a. Death benefit c. Bonus benefit
b. Maturity benefit d. Tax benefit
ANSWER: A
21. Which of the following options is not correct with regard to joint life insurance plan?
a. Plan offer insurance coverage for two
persons in one policy
c. Each life will be underwritten
separately
b. This plan is ideal for brother & sister d. A joint life policy may cover a partner
in business under one policy
ANSWER: B
22. A person wants to invest in a FD for Tax benefits. For how many years will he have to
take the term of the FD?
a. 5 year c. 3 Year
b. 4 year d. 2 Year
ANSWER: A
23. Suresh wants to transfer his physical gold to gold exchange traded fund. In relation to
access this change will?
a. Not hedge against inflation c. Reduce his encashment for next six
month
b. Decrease his liquidity d. Provide insurance against uncertainties
ANSWER: D
24. Under which type of deposit does the bank pay the principal and total interest at the end
of the term?
a. Traditional deposits c. Cumulative deposit
b. Recurring deposit d. Term deposit
ANSWER: C
25. In which of the following does bank pay the interest on deposits on monthly
quarterly/half yearly/yearly basis as chosen deposit or fund?
a. Saving Deposit c. Traditional Deposit
b. Cumulative Deposit d. Fixed Deposit
ANSWER: C
26. Who maintains mutual fund schemes?
a. Mutual fund management societies c. Assets management companies
b. Mutual fund management system d. Assets management company ltd
ANSWER: C
27. What is the amount of money a client can take out as a lump-sum from a pension policy?
a. One-tenth c. One-fifth
b. One-third d. Half
ANSWER: B
28. What will be the maturity benefit under health insurance plan?
a. Fund value c. Paid premium with interest
b. Paid premium d. No maturity benefit
ANSWER: D
29. Claim Amount received under CIBR Rider, can be spend for?
a. Health expenses only c. Unspecified reason
b. Household expenses only d. To pay further premium of base plan
ANSWER: C
30. In daily hospitalisation cash benefit scheme is?
a. The daily amount paid is fixed and
will never be more or than the cost of
actual treatment
c. The insurance company will pay for
doctor consultation incurred prior to
hospitalisation
b. The insurance company may pay an
additional amount on daily basis if the
insured is admitted to the intensive
care (ICU)
d. Included in daily hospitalisation
ANSWER: A
31. A lump sum withdrawal allowed as commutation in pension is?
a. 1/3 of the accumulated fund c. 1/2 of the accumulated fund
b. 1/4 of the accumulated fund d. Full withdrawal is allowed
ANSWER: A
32. What are the benefits to the policyholder under surgical care rider?
a. Number of days admitted in hospital
and surgery expenses in full
c. Treatment cost of surgery subject to
terms & condition
b. Number of days admitted in hospital
and surgery expenses in partial
d. Lump sum amount for what he has
insured
ANSWER: C
33. Which one of the following cannot be covered under critical illness rider?
a. Blindness c. Coma
b. Paraplegia d. Brain Surgery
ANSWER: D
34. In what situation 'waiting period' is applicable in health insurance?
a. Immediate Care c. Pre-existing illness
b. Medical Examination d. Permanent exclusion E9
ANSWER: C
35. Why does a self-employed individual need to buy medical insurance, rather than a person
working in public sectors?
a. Public sectors employees do not get
sick often
c. Self-employed people do not have sick
leave
b. Public sector employees enjoy medical
insurance covers related to job
d. Loans are available faster for public
sector employees
ANSWER: B
36. Objective of fact-finding is for?
a. Conducting client need analysis c. For completing ACR
b. Product pitching d. To find out moral hazard
ANSWER: A
37. Mr. Alexzender has been approached by the agent and on fact finding his score comes to
3. This represents that his risk taking capacity is?
a. Low c. Moderate
b. High d. Zero
ANSWER: C
38. A satisfied client will lead to?
a. Word of mouth publicity for the agent c. More reference generation for the
agent
b. Chances of up selling d. All the above
ANSWER: D
39. For an insurance agent, a low persistency ratio means?
a. Loss of renewal commission c. Higher reputation
b. High client satisfaction d. More earning of first year commission
ANSWER: A
40. Avoiding short-term surrender is persistency benefit to whom?
a. Insurer c. Client
b. Agent d. All above
ANSWER: D
41. If a person goes missing, then after how many years will he be considered as dead & sum
assured be paid to the nominee?
a. 5 c. 10
b. 7 d. 12
ANSWER: B
42. Client died on the 89th day from DOC. In which category he is not eligible for claim?
a. Murder c. Accident
b. Deep Illness d. Suicide
ANSWER: D
43. Mr. Customer has taken a policy and died before receiving the document which was
dispatched by the insurer. He is entitled for?
a. Full claim c. Not entitled for any claim
b. Partial claim d. Return of Premium
ANSWER: A
44. After maturity in a ULIP customer does not get maturity amount in lump sum. What is
the possibility of receiving it in instalments if it is not an annuity plan?
a. He has switched his fund c. He has redirected his past premium
b. He has opted for settlement option d. Policy was lapsed at the time of
maturity
ANSWER: B
45. Pankaj bought a plan in 2009 and died in a road accident in 2011. Which one of the
report is not considered in this case?
a. Police first information report c. Post mortem report
b. Advisor confidential report d. Coroner's report
ANSWER: B
46. What are the circumstances in which the insurer may refuse to pay claim?
a. If policy was not inforce when event
occurred
c. The claim was fraudulent
b. An excluded condition applied to loss d. Any or all of above
ANSWER: D
47. The controller of insurance in India is?
a. IRDA c. SEBI
b. RBI d. Insurance ombudsmen
ANSWER: A
48. What is the role of National Insurance Academy?
a. To regulate c. To undertake training activities
b. To advise Government d. To Advertise globally on Indian
Insurance
ANSWER: C
49. The face of the life insurance industry in India is?
a. Life Insurance Council c. IRDA
b. Life Insurance Corporation d. Insurance int. of India
ANSWER: A
50. Complaint council bodies other than IRDA grievance readdress forum & COPA is?
a. Ombudsman c. Insurance Association
b. Insurance Institute of India d. FERA
ANSWER: A
0 Comments