QUESTIONS ASKED IN RECENT TEST by A2u4DNV

VIEWS: 7 PAGES: 3

									QUESTIONS ASKED IN RECENT TEST

1) Sec.41 of the Insurance Act, 1938 mentions about
a) Prohibition of payment of commission or other form of remuneration to any person other than a licensed
agent.
b) Prohibition of any rebate being allowed by any agent to any clients as an inducement to take or renew
insurance.
c) The limits on the commission that can be paid to an insurance agent
d) The limits for expenses of management of life insurance business

2. The term “Money-Laundering” refers to the process of
a) Carrying money from office to the Bank
b) Turning “dirty” or illegal money into “claim” or legal money
c) Keeping the cash or gold or silver bars in the Bank lockers
d) Buying articles using credit card

3. Which of the following statements is not correct in respect of a policy taken out under provisions of Sec.6 of
the Married Women’s property Act 1874?
a) Such a policy shall be deemed to be a trust
b) Such a policy will be outside the control of the life insured, his creditors, and court attachments.
c) Such a policy can be taken by a married woman for the benefit of her parents
d) Consent of the trustee to act as such should be taken and added to the policy as an endorsement
4. Which of the following statements is not correct in respect of licensing of agents by I.R.D.A.?
a) The license fee payable along with the application is Rs.250/-
b) The applicant for license must be at least a graduate of recognized university.
c) The applicant for license must undergo training for at least 50 hours, at an approved institution.
d) The applicant for license needs to pass the pre-recruitment examination

5. As per the I.R.D.A. regulation, within how many days from the receipt of proposals, the decision of the insurer
regarding acceptance or otherwise of the proposal should be communicated
a) 60 days b) 30 days c) 15 days d) 7 days

6) The Purpose of creating the institution of Insurance ombudsman was to
a) Reduce the gaps created by direct marketing system.
b) Create a central repository of industry-wide insurance grievance data
c) Resolve insured customer’s grievances quickly, in a cost- effective, impartial and efficient manner
d) Resolve the complaints of agents against insurers.

7) Sushil was under tremendous pressure to achieve his target. He suggested a newly launched product to all his
prospective clients, whether that product is suitable for them or not. He was able to convince two of his clients
by only highlighting some of the good benefits and hiding certain vital details about the product. This behaviour
of the agent could be described as
a) Ethical behaviour b) unethical behaviour c) egoistic behaviour d) aggressive behaviour

8) Which of the following will be considered as an unethical practice on the part of an agent?
a) Reminding the policyholder well before the due date of renewal premium and ensuring regular payment of
premium by the policy holder.
b) Suggesting to clients only products that will help the agent earn a high commission irrespective of the fact that
the product might not be suitable for the client.
c) Advising the proposer to give correct and complete answer to all questions found in the proposal form.
d) Assisting the policyholder in getting a change of nomination registered with insurer.

9) The I.R.D.A. has prescribed the code of conduct for insurance agents in the
a) I.R.D.A (Licensing of Insurance Agents) Regulation 2000
b) I.R.D.A (Protection of Policy holders Interests) Regulation 2001
c) I.R.D.A (conditions of service of officers and other Employees) Regulations 2000
d) Insurance surveyors and Loss Assessors (Licensing Professional requirement and code of conduct) Regulation
2000.

10) Ankur Arora, a 24 year old civil engineer drawing a monthly income of Rs.18000 as his net salary. He is
unmarried and living with his parents who are earning. When he approaches an insurance agent, the agent
would do well to advise him to take up
a) A whole – life policy b) Unit Linked Money-back policy
c) An immediate annuity policy d) Convertible term insurance policy

11) The insurance plan best suited for people with short career span will be
a) Whole-life policy b) Long term Endowment Policy
c) Limited payment Endowment d) Convertible term assurance Policy

12) Financial Planning Review has to be done regularly by the agent and the client for
a) Identifying the protection needs b) Quantification and prioritization of needs
c) Examining whether the financial needs have changed consequent on change in life cycle phase
d) Replacing new policies with old policies

13) What will be impact of a low persistency ratio on the insurer?
a) Loss of renewal commission
b) Loss of profits and a reduction in the accumulation of reserve
c) Loss of insurance cover
d) Increased client satisfaction

14) On the maturity of the policy, a reduced sum assured becomes payable because of
a) Discounting of the policy b) commutation of the policy
c) Surrender of the policy d) making the policy paid-up

15) Where there is a delay on the part of the insurer in processing a claim beyond the prescribed time limit
insurer has to pay interest for delayed payment at
a) Bank rate b) Savings Bank interest rate
c) 2% above the bank rate d) Interest rate payable under senior citizens savings account

16) When a money back policy is reported lost when the survival benefit has become payable
a) The claim will be rejected b) The survival benefit will be made only at the time of maturity.
c) A duplicate policy will be provided after obtaining indemnity bond and payment will be made
d) The survival benefit will be made only on production of original policy
17) Which of the following statement is correct?
a) Death claim payment will always be made immediately on death.
b) Death claim payment will always be made in one lump sum
c) Under whole life policies, the benefit is paid on death regardless of when it occurs.
d) Death claim amount payable will always be a fixed amount.

18) What a professional agent is supposed to do when the client states that the product does not meet his
needs?
a) Assert that the product is goods and he will be the loser if he doesn’t buy that product.
b) Ask the client some open ended questions to know his concern and provide more information on the product
or alternatively suggest another suitable to his needs.
c) Take leave of the client stating that he will call him later with more details.
d) Take a few references from him and leave.
19) The Claims settlement ratio indicates
a) The number of claims settled to every 100 policies issued during the year.
b) The number of claims settled to every 100 policies in force
c) The number of claims settled to every 100 Claims arising during the period
d) The number of claims settled to every 100 policies received during the period

20) Which of the following statement is not correct in respect of settlement of life insurance claims on the basis
of presumption of death?
a) Claim can be settled on the basis of a decree of the court
b) The date of death will be the date of court order
c) As per the Indian Evidence Act 1872, a person can be presumed to be dead only after 5 years from the date of
missing
d) Where strong evidence exists that the life insured could not have survived a fatal accident or calamity decree
of the court will not be insisted.

21) For which of the reasons an early death claim could not be rejected?
a) The policy is in a lapsed condition without acquiring paid-up value.
b) During investigation it was found that a material fact was suppressed.
c) The policy bond was lost
d) Death is caused by something excluded from the cover under the policy

22) Which of the following does not form part of the purpose of medical examination?
a) To ascertain information required for assessing the risk by the underwriter
b) To reduce the chances of adverse selection by the company
c) To ascertain whether a more comprehensive medical check-up involving special reports is warranted
d) To avoid lapsation of the policy

23) Moral hazard relates to the
a) Physical characteristics of the risk
b) Living conditions and environment of the proposer
c) Conduct, attitude and intentions of the proposer.
d) None of the above.

24) Human life value concept is applied
a) In financial underwriting to cap the amount of life insurance an individual can get
b) In medical underwriting to assess the risk
c) In non-medical underwriting where risk is assessed on the basis of personal statement of the proposer.
d) In group insurance to determine the insurance cover.

25) Rajesh is aged 35 years and is having remaining period of service of 25 years. He is earning an annual
income of Rs.4 Lakhs. After deducting taxes and other fixed deductions, his net annual contribution to family is
Rs.3,00,000 pa. At the current rate of interest (viz) 8% p.a. if someone invests Rs.37,50,000 in Bank F.D. it will
fetch an annual interest of Rs.3,00,000. The Human Life Value calculated using the simple income replacement
method will be
a) Rs.10,00,000 b) Rs.75,00,000 c) Rs.37,50,000 d) Rs.90,00,000



1- b 2-b 3-c 4-b 5- c 6-c
7-b 8-b 9-d 10-b 11-c 12-c
13-b 14-d 15-c 16-c 17-c 18-b
19-d 20-d 21-c 22-d 23-c 24-a

								
To top