CSC VLE Insurance & RAP Exam Question Answer Key
100% Pass Guarantee
Q. What is the maximum cover that can be provided in
micro-insurance?
Ans. 50,000
Q. The Non-Government Organisations (NGOs) help the
insurance industry immensely in:
Ans. Promotional activities
Q. ........ means before loss what was his financial
status and for the same financial status to bring him is
called:
Ans. An indemnity
Q. Insurance Agents are
Ans. Intermediaries
Q. Mr.Varun who owns a multi-chain company would like to
take an insurance. What will be the best option for him from the
following?
Ans. He can take company insurance
Q. Insurance c option because:
Ans. Insurance products offer flexibility to the
policyholders
Q. Amit is looking for term insurance plan for
protection of his family he is advised to approach for:
Ans. Life Insurance
Q. Which of the following is not a type of insurance
organization?
Ans. Ombudsman
The constituents who participate in deeper penetration of
micro-insurance and awareness of insurance in rural areas
are:
Ans. Non- Governmental Organizations
Q. In life insurance business if a person is working in
calculating premium rates of insurance products then he is mostly likely a
member of:
Ans. Insurance institute of risk management
Q. A Risk transfer provides a sense of:
Ans. Financial security
Q. _________ is an insurer for the insurance company:
Ans. Reinsurance company
Q. Mr. Mahesh is a software engineer. He has taken a term
insurance for Rs. 30,00,000/- for 30years. This is an example
for:
Ans. Risk transfer
Q. Currently, major percentage of insurance
sales in India takes place through:
Ans. Individual insurance agents
Q. I.R.D.A was incorporated as a Statutory
body in:
Ans. Dec-1999
Q. What facility do insurers use to cover
risks beyond their exposure
limits:
Ans. Both a & b
Q. One of the most sought after advantage of
Insurance is:
Ans. Tax benefits on payment of premium and all the
pay-outs
Q. Vinay doesn’t want to take insurance on
himself. He feels that his family will survive with the funds available in the
bank and monthly rentals received from village. This comes under Risk ______:
Ans. Retaining
Q. Why is Insurance required?
Ans. All of the above
Q. The main role of an underwriter in a non-life
insurance company is normally to: Ans. assess the acceptability of
particular risks
Q. The concept of insurance involves a transfer
of:
Ans. risk
Q. How are perils and hazards normally distinguished
under term insurance policies?
Ans. Perils are risks that policyholders will die
before a specified date and hazards are factors which could influence that
risk.
Q. In insurance terms, the risk of suffering a disability
is best described as what type of risk?
Ans. Financial.
Q. For a household insurance policy, insurable interest
need only exist at outset and at what other point?
Ans. The date a claim occurs.
Q. Rahul is employed by Sunny. In respect of this
employment, Rahul automatically has insurable interest in Sunny’s life up to
what limit, if any?
Ans. Rahul’s monthly salary.
Q. Akshat is a relatively cautious person. In insurance
terms, this will normally increase the likelihood that he will:
Ans. require insurance cover
Q. Arun started a 20-year term insurance policy. Once
established, when, if at all, is the insurer next entitled to ask him for proof
of continuing good health?
Ans. When a lapsed policy is revived.
Q. Once an absolute assignment is effected under a life
insurance policy, who will be the titleholder(s) of this policy?
Ans. The assignee in all cases.
Q. How long is the free look-in period under a term
insurance policy from the date of receipt of the policy document?
Ans. 15 days.
Q. A life insurer issued a quotation on 10 February,
guaranteed for 14 days, which was accepted by the customeron day 10.
Consequently, the insurer can only decline this risk if the:
Ans. material facts change.
Q. 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’. In which main section of the policy document will this
normallyappear?
Ans. Preamble.
Q. The consequences of these risks which will affect
specific individuals or local communities in nature are called as?
Ans. particular risk
Q. Pooling of insurance applies to?
Ans. All Type insurance (Only life insurance, only
non-life insurance)
Q. Both the parties to a contract must agree and
understand the same thing and in the same sense which is called
Ans. Consensus ad idem.
Q. A contract exists between insurer and proposes when
Ans. A proposal has been accepted by insurer.
33. A life insurance policy can only be made
paid up if what policy feature exists?
Ans. Savings element.
Q. The main reason why a life insurance proposal
form often asks for the proposer’s height is to enable a reasonable comparison
with the proposer’s:
Ans. weight.
Q. The concept of indemnity is based on the key
principle that policyholders should be prevented from:
Ans. profiting from insurance.
Q. Where annually increasing flexible premiums
operate under a life insurance policy, what rate of increase will generally
apply?
Ans. 5.0%
Q. The amount paid out by the insurer under a
30-year life insurance policy exceeded the sum insured plus revisionary
bonuses. The excess is likely to result from?
Ans. terminal bonus.
Q. What normally happens to the sum insured under a
life insurance policy once the period of the lien expires?
Ans. It increases.
Q. The main protection need of a 19-year-old is most
likely to be:
Ans. self-protection.
Q. The need for investment advice from an insurance
agent normally results from what overriding key factor?
Ans. Lack of market knowledge.
Q. When undertaking financial planning for
individuals without capital, what savings need is likely to beaddressed in
every single case?
Ans. Emergency funds.
Q. Naveen is addressing his income needs by
investing directly in corporate bonds. In what form will he receivethis income?
Ans. Interest payments.
Q. Raunak recently arranged a life insurance policy
under which he is classed as the master policyholder. This addresses his role
as:
Ans. an employer.
Q. Nikhil is looking for tax-efficient savings
methods for his disposable income. He is considering an equity-linked savings
scheme, national savings certificates and an endowment insurance policy.
Premiums for which of these investments are allowed to be deducted from his
taxable income?
Ans. The equity-linked savings scheme, the national
savings certificates and the endowment insurance policy.
Q. An investor holds a wide range of shares. If the
Reserve Bank of India announces a series of significantinterest rate increases,
the prices of these shares are most likely to
Ans. decrease.
Q. The changes in healthcare costs over recent years
has had what general impact on healthcare insurance?
Ans. A rise in the need for cover.
Q. What is the main objective of taking the life
insurance policy?
Ans. Protection
Q. Any assets, which are no longer suitable or are
earning fewer returns than expected, should be?
Ans.Cashed in for investment into other assets.
Q. The business of insurance is connected with?
Ans. Economic value of assets.
Q. Appointer’s Role
Ans. When nominee is minor
Q. Payment of premium and sum assured are laid down in
Ans. Operative clause
Q. Which clause lays down the mutual obligation the
parties regarding, payment of premium by life assured & payment sum assured
by?
Ans. Operative clause
Q. The general need for a pension policy results
from the existence of what key problem?
Ans. Anticipated fall in income.
Q. The sole focus during a client’s fact-find
session was healthcare requirements and estate planning. Which main life stage
is he most likely to fall into?
Ans. Retirement.
Q. Apart from the salary level, what other key
feature of Alok’s job is likely to have a major impact on the level ofhis
pension, life insurance and health insurance needs?
Ans. Whether the job is in the public or private
sector.
Q. In the context of financial planning, how is the
difference between real needs and perceived needs bestdescribed?
Ans. Real needs are actual needs and perceived needs
are based on a client’s thoughts and desires.
Q. To fulfil the ‘know your customer’ procedures, at
what stage in the financial planning process is theinsurance agent most likely
to request a copy of the customer’s photograph?
Ans. At the end of the presentation meeting.
Q. An agent has recommended an investment product
with non-guaranteed benefits. The benefit illustration passed to his client
will therefore use assumed annual growth rates of:
Ans. 6% and 10%
Q. The main purpose of including commission details
in the documentation to clients is to increase:
Ans. transparency.
Q. Yash pays health insurance premiums for himself,
his wife and his two children aged 13 and 8. Premiums for which of these
individuals will qualify as deductible from Yash’s taxable income?
Ans. Yash, his wife and both his children.
Q. A client has been recommended a low-risk
investment product by his insurance agent, but the client insiststhe agent
arranges for the money to be invested in a higher risk product. What action
should the agent take?
Ans. Carry out these instructions, but document that
this contradicts the recommendation.
Q. An insurance agent has advised a client to
surrender an existing investment product and start a newinvestment product.
What key indicator should be used to determine whether this advice was ethical?
Ans. The best interests of the client.
Q. What key impact will low persistency levels have
on insurance policyholders?
Ans. A reduction in benefits.
Q. A claim under a term insurance policy is
submitted by an individual who has substantially understated his age.As an
alternative to paying out the full claim the insurer is most likely to take
what action?
Ans. Reject the claim on the grounds of
misrepresentation.
Q. On the maturity of an endowment policy, a reduced
sum insured is paid out. What is the most likely reasonfor this?
Ans. The policy was made paid up during the policy
term.
Q. What key event is most likely to prevent insurers
from ensuring that each insured person brings a fairpremium to the pool for the
risk presented?
Ans. A fraudulent claim.
Q. An insurance agent served an insurer continually
and exclusively for 20 years, after which he retired fromwork. In accordance
with Section 44 of the Insurance Act 1938, renewal commission due to him after
the termination of his agency can only be withheld if:
Ans. there is fraud involved.
Q. Legislation gives which body the power to specify
a code of conduct for surveyors and loss assessors?
Ans. Insurance Regulatory and Development Authority.
Q. What key legacy has been left by the activities
of the Tariff Advisory Committee?
Ans. Standard policy wordings.
Q. Raju died 5 years before the end of his 30-year
endowment insurance policy. What factor most likely causedthe insurer to
investigate the claim using the early death claim procedures?
Ans. The policy had lapsed and was revived shortly
before he died.
Q. Apart from conducting a comprehensive fact-find,
the other main action that an insurance agent can take atoutset to minimise the
risk of subsequently receiving a customer complaint is to:
provide detailed disclosures.
Q. An award made by the Insurance Ombudsman will
only be binding on the insurer if the:
Ans. complainant accepts this decision.
Q. A policyholder asked his insurance agent for
guidance on submitting a claim for the maturity benefit under hislife insurance
policy. Due to pressure of work, the agent declined to assist. Consequently,
this action is deemed to be a breach of the:
Ans. Insurance Regulatory and Development
Authority’s Code of Conduct.
Q. During the process of applying for life
insurance, the customer discloses confidentially to the insurance agentthat he
had a mild stroke four months ago, however this was NOT mentioned on the
application form. In accordance with the Insurance Regulatory and Development
Authority’s Code of Conduct, how should the insurance agent deal with this
information?
Ans. Notify the insurer of this matter.
Q. Which of the following cannot be
insured?
Ans. Speculative risk
Q. 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:
Ans. Occupational Hazard
Q. On 6thAugust, there was a typhoon.
Mr.Augustin who had insurance died in typhoon. Now how willthe insurance
company categorise this
risk?
Ans. Under the category of Pure risk
Q. Law of large numbers is worked out by which of
the following?
Ans. Pooling of risk
Q. Pure risks are those risks where there
is:
Ans. Loss or no loss
Q. The type of risk that can be insured against
is:
Ans. Pure Risk
Q. 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:
Ans. Physical hazardorOccupational Hazard
Q. Which statement is
correct?
Ans. lung cancer is peril and smoking is a hazard
Q. There are two different groups of 100 people. The
first group isbetween 30-39 years of age. Of these one person dies before the
age26 Probability of death in this case is 1%. The second group is aged 60-69
years of these 15 die before the age of the probability of death in this case
is 15%.
Ans. This shows that frequency of death is high in
higher age
Q. Insurance contract is valid because?
Ans. Contract enforceable by law
Q. Which of the following types of insurances is not
a contract of indemnity:
Ans. Life Insurance
Q. Ajay does not consume alcohol for a month to not
detect during medical test is:
Ans. Concealment of a material fact
Q. Amit is illiterate. He wants to take policy his
friend Surya help him in knowing the question and filling the proposal form.
What extra requirement is required in this case:
Ans. Left thumb Impression of Amit along with a
declaration of his friend
Q. Insurance companies apply law of _________ to
determine the cost of total annual claims:
Ans. Large numbers
Q. Mr. Josh was filling the proposal form but as his
mother was sitting beside him even though hedrinks and smokes he ticked “NO” in
smoking & drinking column of proposal form. This
indicates?
Ans. He has breached the duty of disclosure by concealing
the facts
Q. Which of the following is not a type of
bonus?
Ans. Inception bonus
Q. The most important features of a Valid contract
are:
Ans. Consideration and legality of object
Q. Rohit is working as sales manager with an FMCG
company. His job requires him to travel across states. He is planning of
covering his additional risk involved while traveling and a saving plan. What
suggestion would you give him as an agent?
Ans. To purchase an accidental rider with a saving
insurance plan.
Q. To sale focus during a client’s fact find session was
healthcare requirements and estate planning.
Ans. Retirement
Q. In which at the recognized life stages an individual
does not require any protection cover
Ans. Childhood
Q. Ajay and Vijay both are unmarried. Ajay has dependant
parent. Which need Ajay must take care of on priority, although that will not
be a priority for Vijay.
Ans. Health insurance for parents
Q. Mr. Nikhil makes an offer of Rs 20 lacs SA to
Insurance Co. XYZ. Inresponse to this Insurance co. XYZ offers a SA to the tune
of max. Rs10 lacs (counter offer). At this stage Nikhil and Company X can enterinto
a valid contract?
Ans. Nikhil and Insurance Co. can enter into a valid
contract if Nikhil unconditionally accepts the offer.
Q. Policy taken by husband and wife jointly is
called as…..:
Ans. Joint life policy
Q. Mr.Akash filled the proposal form but before
submitting to the company he discussed with theagent that he is not sure
whether he can pay for 15 years. This attitude affects which part of
thecontract?
Ans. Capacity to contract
Q. Human life is exposed to different type of risks.
Which of these risks is not currently covered by Indian
insurers?
Ans. Unemployment not caused by disability
Q. Rishabh Agarwal is a 40 years businessman. He
leads a healthylifestyle. Every morning he practices yoga and abstains from
smoking tobacco and alcohol. There is a family history of diabetes and both
hisparents suffer from it. But Rishabh himself is not diagnosed withdiabetes.
Based on this case which of the following statement is true?
Ans. He can be given insurance as he maintains a
healthy lifestyle
Q. Which of the following cannot be
insured?
Ans. Speculative risk
Q. If a person consumes alcohol regularly and does
not disclose the same in proposal form - what is the type of
hazard?
Ans. Moral
Q. In insurance terms the risk of suffering a
disability is best described as what type of risk?
Ans. Financial.
Q. Akshat is a relatively cautious person. In
insurance terms this will normally increase the likelihood that he
will:
Ans. require insurance cover
Q. Level of risk is determined by:
The probability of the occurrence of a certain event and
the extent of losses likely to Ans. be suffered due to the occurrence
of the event.
Q. Which of the following risks are insurable?
Ans. Financial Risk
Q. Insurance Companies provide cover only
for:
Specified Risks
Q. Insurance relates
to:
Ans. Pooling of risk
Q. Loss of Life
needs:
Ans. To provide a steady source of income to
dependants after death
Q. A hazard can be defined
as:
Ans. A condition that either increases the chance of
a peril happening or cause its effect to be worse
Q. Which of the following is individual’s
assets?
Ans. His properties
Q. The type of risk that can be insured against
is:
Ans. Pure Risk
Q. Which category of insurance has nature of low
frequency but high severity?
Ans. Airline Insurance
Q. Law of large numbers is worked out by which of
the following?
Ans. Pooling of risk
Q. Policy document
is:
Ans. Legal contract
Q. In life insurance which principle does not
apply?
Ans. Insurable interest
Q. Kailash is working with an MNC and has a
co-worker Ramesh who helps him in his work. In the absence of Ramesh Kailash’s
work would suffer significantly and he has to work on his own to complete his
assignments. Which of the statement is true with regard
to
Ans. Insurable Interest exists between Kailash and
Ramesh
Q. What amount of insurable interest does an
individual have in his own life?
Ans. Up to the sum assured taken in the plan
Q. The insurance company issues ________________
after accepting proposal
Ans. First Premium Receipt
Q. The __________ of the policy states that the
proposal declaration signed by the proposer forms the basis of
contract:
Ans. Preamble
Q. Certificate from the village
panchayat:
Ans. Will be considered as non-standard age proof
Q. What are the 2 types of Age proof
documents?
Ans. Standard & Non-Standard
Q. Who fills up proposal
form?
Ans. Proposer
Q. When the life assured and the policyholder are
one and the same how the policy will be known?
Ans. Policy on own
life
Q.____________ refers to the transfer of the title rights
interest of the insurance policy
Ans. Assignment
Q. Appointee's role
Ans. when Nominee is Minor
Q. Even though the insurer may avoid the contract
entirely “ab initio” for the reason of misrepresentation or non-disclosure the
Insurance Act 1938 gives a protection to the policy holder making the policy in
disputable after 2 years (excepting for fraud)
Ans. Sec. 45 of the Insurance Act 1938
Q. Shamsher has a health insurance policy of
1,00,000 individually and from his company for 2,00,000. He falls sick and got
hospitalized. His hospital bill ran to 50,000. He claimed this amountfrom his
individual policy. Also, he placed the request with his company. His company
has rejected the claim. What type of contract is this?
Ans. Deemed contract
Q. Nomination can be in favor of how many
people?
Ans. It can be any number
Q. Insurable Interest is deemed to exist in which of
the following relationship?(i) Husband and wife (ii) Parent and children (iii)
Employer and employees(iv) Brother and Sister.
Ans. (i), (ii) and (iii)
Q. If a policy holder is not satisfied with terms
and conditions of the policy which she/he has received, then there is an option
to return policy for cancellation within...days from the date of receipt for
policy by policyholder.
Ans. 15Days
Q. Types of assignment:
Ans. Absolute & Conditional
Q. Material facts are those:
Ans. That would influence the decision of the
underwriter in accepting the risk
Q. The main supplier of the material facts
is:
Ans. The proposer as he is alone in the possession
of full information about himself
Q. Duty of disclosure of material information rests
with:
Ans. Insured and Insurer both
Q. In case of life insurance, the insurable interest
should exist:
Ans. At the time of taking the policy
Q. A & B in enters into a Contract & B
accepts the Contract with a condition. Will this be considered as a Contract
Between A& B?
Ans. Contract is created only when the acceptance is
unconditional.
Q. Proposal form & the Declaration signed by the
proposer are called of the contract: Ans. Basis
Q. In which kind of policy the insurable interest
should exist at the time of claim:
Ans. Marine insurance
Q. When does insurable interest exist in a life
insurance contract?
Ans. inception of the contract
Q. ______________ comes into existence when one
party makes an offer which the other party accepts
unconditionally:
Ans. A Contract
Q.. If a contract is signed by a 15 years old boy this
contract will be:
Ans. Invalid
Q. Mr. ABC buying Term insurance policy insurer
should mention Ombudsman address in which part of policy
document?
Ans. Information statement
Q. If a contract is signed by a 15 years old boy
this contract will be:
Ans. Invalid
Q. The condition that the policy holder should pay
the premiums regularly is mentioned in:
Ans. All of the above
Q. For Quarterly mode of payment days of grace
is:
Ans. 30 days
Q. Both the parties to a contract must agree and
understand the same thing and in the same sense which is
called:
Ans. Consensusadidem
Q. Who should attest the thumb impression on the
proposal form?
Ans. Proposer himself
Q. The process of making changes in the terms and
conditions of the policy once it is issued is
called:
Ans. Amendments
Q. Utmost good faith envisages a positive duty to
disclose accurately all information that are:
Ans. Facts which are material to the risk being
proposed
Q. The process of making changes in the terms and
conditions of the policy once it is issued is
called:
Ans. Endorsements
Q. When an interim bonus is paid under with profit
policy This normally represents a bonus covering what period:
Ans. Previous valuation date to claim date
Q. The insurance contract is mainly an
Ans. Agreement enforceable by law
Q. Which of the following falls under voidable
contract?
Ans. Fraud
Q. A policy has two nominations. What amount should
be given to the two nominees?
Ans. There is no specified limit like that
Q. Till what period is interim bonus
valid:
Ans. Till the next declaration of bonus
Q. Insurable interest on one's own life limited
upto:
20 times of Gross Annual income
Ans. Unlimited
Q. Except Surrender how one policy holder can
transfer money to a third party barring
Nominee?
Ans. By doing Assignment
Q. Two people with same term one person had more
premium than other because:
Ans. Health detioration
Q. Moral Hazard reflects
the:
Ans. Habits and hobbies of proposer
Q. Annual premium of an insurance product is Rs.
32,000 with 4% loading on Quarterly mode of payment. What is the quarterly
premium?
Ans. 8,320
Q. Income replacement methods equates Human Life
Value (HLV) to:
Present value of future earnings
Q. If the annual premium for a plan is 32000 and a
frequency loading of 4% is added in a quarterly premium what is the instalment
premium that needs to be paid.
Ans. 8,320
Q. A human being
is:
Ans. All of the above
Q. What is the special report that is asked by the
underwriter from the officer of the insurer?
Ans. Client confidential report
Q. What role an agent is likely to play in the
process of underwriting?
Ans. To give truthful report to the insurer all
about the life to be insured
Q. Who is the primary
Underwriter?
Ans. Agent
Q. Mr Sunil is doing premium calculation for his
company as per which authority is his profession related
to:
Ans. Council of Actuaries
Q. In a 20 year with profit policy persistency Bonus
is paid at the end of:
Ans. 20th year
Q. Two friends have taken same policy but their
premiums are different. Why?
Ans. All the above
Q. Compound reversionary bonus of 4% will be
calculated on:
Ans. Sum assured plus bonus till date
Q. As per the norms of risk assessment U/W both the
parents of a policy holder died in their early 30s due to Heart disease. What
is the risk assessed?
Ans. Physical Hazard
Q. While calculating Human life value (HLV) two
components need to be kept in mind the one is take home salary and other
is:
Ans. Estimated life expectancy
Q. Claim was settled. However full Sum assured not
paid though the policy was in force due
to:
Lein
Ans.
Q. HLV is used as a Yardstick to determine:
The correct cover needed to compensate economical loss to
their family in case of Ans. death of the earning member
Q. In insurance HLV is a known abbreviated term. How
the meaning of HLV can best be described in relation to an income earning
proposer?
Present value of the future earnings less personal
expenses is the HLV of the proposer
Q. Mr A wants insurance cover. But he is drinks
alcohol frequently. What kind of hazard you may categorize?
Ans. moral hazard
Q. Insurer appoints a candidate of this professional
qualification who decides the amount of premium in insurance
products:
Ans. Actuary
Q. While calculating HLV along with future income no
of years of work increments in salary what is also to be taken in to
account?
Ans. Discount rate
Q. Mr. A has a son who is 5 yrs and he wants to save
funds for his education. Both the parents are risk adverse. Which plan is
suitable for them?
Ans. Endowment Plan
Q. Most plans offered by Indian insurance companies
are a combination of:
Ans. Term insurance and whole life
Q. Why Annuities are reverse of Life
Insurance?
Ans. Annuities cover contingency of Survival whereas
Life insurance covers the contingency of death
Q. Main Protection need of a
client...:
Ans. Protection of Income
Q. Basic elements of an insurance plan are:
Ans. Maturity benefit and Death cover
Q. When maturity benefit is payable under a joint
life Plan?
Ans. On survival of both or either of the life
insured.
Q. Which plan covers the risk of living too
long?
Ans. Retirement plan
Q. Income Tax Act 1961 provides for tax relief for
various investments under Section?
Ans. 80C
Q. Group insurance is a contract between…:
Ans. Employer & Insurance Company
Q. Who deducts premium in Salary Savings
Scheme?
Ans. Employer
Q. The date on which the Title/rights under a policy
passes on to the child on age 18 is
called….:
Ans. Vesting date
Q. Which plan is suitable for those who cannot
afford higher premium now but can afford to pay higher premium
later?
Ans. Convertible Term insurance
Q. Which is the most basic simplest & cheapest
form of insurance?
Ans. Term insurance
Q. Why insurance needs require to be
prioritized?
Ans. Resources are limited.
Q. Mr A submitted the proposal form. When will the
risk begins for the company?
Ans. On receipt of payment by agent
Q. Two People of the same policy Term one person
pays more premium because:
Ans. Higher Age
Q. What is maximum level of Insurance premium for
which Income Tax benefit is available:
Ans. 1,00,000
Q. Client has taken Joint Life Policy. Who are
responsible in the
contract?
Ans. Proposer & Wife
Q. Term insurance if best suited for the following
need
Ans. education needs
Q. A Couple has 7 year kid & wants to Buy some
Policy. Which is the best suitable policy for his
Son?
Ans. Child insurance plans can be taken out in the
form of endowment plans money-back plans or ULIPs
Q. Children policies come in 3 forms. What are
they?
Ans. Endowment Money back & ULIP
Q. At the time of maturity quarter of the SA is paid
though the policy was in
force:
Ans. Money back
Q. Mr. X wants a life cover for the term of 20 Yrs.
Also, he wants a modest amount if he survives through the term. Which plan
should he buy?
Ans. Endowment plan
Q. Hari wants a constant life cover till his 31st
birthday. But he can’t afford to pay high premiums. The best suited products for
him would be:
Ans. Term plan
Q. The option to receive maturity benefit in
instalments under a ULIP is called..:
Ans. Settlement Option
Q. The period which does not provide risk cover in a
Child plan is
called…:
Ans. Commencement period
Q. To avail income tax exemption for premium paid
sum insured under a policy should be...:
Ans. 10 times
Q. Which life insurance plan offers both the
benefits of Risk cover and Investment?
Endowment policy
Ans. ULIP
Q. In endowment policy, we give SA + Bonus-
:
Ans. Outstanding premium
Q. What is
Inflation?
Ans. Increase in cost of living
Q. Samir is married and he has only one partner with
dependant parents and no child. Which should be his priority?
Ans. income protection
Q. With-profit policies can be given
to:
Ans. Individual
Q. Out of all the factors that affect the needs of
different life stages of an individual which is the most common factor that is
likely to exist throughout the life span of an
individual?
Ans. Liability
Q. There is a family of four people both the husband
and the wife are working. They have two kinds aged 6 and 11 years. There is a
tragedy in the family and the husband passes away due to an accident. Which of
the following saving options should the wife go for post the death of her
husband?
Ans. Children education planning
Q. A family consisting of husband wife and two
children aged 6 and 10 what kind of insurance plan can be
suggested?
Ans. All of the above
Q. The main protection need of a 19-year-old is most
likely to be:
Ans. self-protection.