CSC VLE Insurance & RAP Exam Question Answer
Key
100% Pass Guarantee
Q. An Investor has invested in Debt mutual fund he
is ideally looking for:
Ans. Savings Income
Q. Regular savings creates a fund to meet adverse
incidents in future. For drawing a financial plan for savings needs of an
individual without capital what is the Fund which comes
first?
Ans. Retirement fund
Q. Why IRDA allows free look in period cancellation?
Ans. To save clients from unethical agents
Q. Embedding Ethics means
that:
Ans. Ensuring practice of ethics at all levels
consistently and coherently
Q. Raju is a certified license holder under what
circumstances he needs to hold his certified license with him that is issued by
IRDA:
Ans. under all circumstances
Q. Who monitors and evaluates the ethical practices
of insurers?
Ans. Both the above
Q. A policy has been rejected by the company under
direct intimation to the customer and copy to the Agent. What is the next
action of the Agent?
Ans. He has to explain the reasons for rejection to
the customer
Q. More surrenders, lapses and cancellations during
free look in period raises doubts that the Company is doing
_______sales:
Ans. Unethical
Q. To redress the Grievances of the Policy Holders,
a number of authorities have been formed. Which of the following authorities
has been empowered to hear the complaints and adjudicate?
Ans. Consumer Grievance Redressal Forum
Q. Agent offering rebate may be fined
with:
Ans. Rs. 500
Q. AML program of every insurer to include
___________ apart from procedure, training and audit:
Ans. Appointment of Principal Compliance Officer
Q. To ensure that the premiums are paid out of a
legitimate source of funds, cash is accepted:
Ans. Upto 1,00,000
Q. Ethical practices lead
to…...:
Ans. Positive image for the company
Q. An Insurer advertises through daily newspaper.
What type of marketing is this?
Ans. Direct Selling
Q. Investments by NRI (Non-Resident Indian) will be:
Ans. High Risk
Q. An advisor while explaining the policy and to
sell he accepts to give a part of his Agent's Commission. What is the
limit?
Ans. He cannot offer any commission
Q. The authority of COPA is limited to what amount
at the District Level?
Ans. 20,00,000 /-
Q. It is the bounden duty of the Insurers to protect
the interest of their policyholders from proposal acceptance to claim payment
because of the:
Ans. Regulations of IRDA
Q. Who can cancel the licence of an Agent if Agent
violates code of conduct?
Ans. Life Insurance Council
Q. In MWP Act policy claim is paid to:
Ans. Trustee
Q. Consumer Forum at District level will hear
complaints upto:
Ans. 20 lakhs
Q. For renewal of licence an Agent has to complete
practical training for �. Hours
Ans. 25 hours
Q. How much is the rebate allowed by IRDA to
client?
Ans. Nil
Q. If a policy is endorsed under MWP Act the
beneficiaries are wife and
Ans. Children
Q. Ravi was expecting a claim amount of Rs.
12,00,000 from insurer. But it was rejected. He feels that the claim has been
repudiated on wrong reasons. Which consumer forum can he approach?
Ans. District Level
Q. An Agent offered his client that 75% of the first
premium will be paid by him out of commission. This offer of rebate on premium
will be treated as: :
Ans. a breach of IRDA's code of conduct
Q. Mr.Suresh dies one day before the grace period
without paying the premium. What is the claim
payable?
Ans. Sum Assured less the undue premium
Q. What is the maturity claim payable under a
ROP?
Ans. Return of Premium
Q. What is the main requirement for settlement of a
death claim?
Ans. Proof of death
Q. What is a Claim?
Ans. A demand of the Insured to the Insurer
Q. What is recovery made from final claim
settlement?
Ans. All the above
Q. An Insurer advertises through daily newspaper.
What type of marketing is this?
Ans. Direct Selling
Q. Payment of premiums by cash cannot exceed
____________:
Ans. Rs. 1,00,000
Q. The controller of insurance in India
is:
Ans. IRDA
Q. Which is a
claim?
Ans. All the above
Q. If there is no insurable interest, then the
contract is:
Ans. Invalid contract
Q. Client died in 89th day from DOC. In which
category he is not eligible for claim?
Ans. Suicide
Q. When an insurance claim is
valid?
Ans. All the above
Q. Mr. Customer has taken a policy and died before
receiving the document which was dispatched by the insurer? He is:
Ans. Entitled for full claim
Q. When annuity payments start under a deferred
annuity plan?
Ans. Vesting date
Q. What is the death claim payable in case of
ULIP?
Ans. Sum insured or Fund Value whichever is higher
Q. In a claim the customer got much more than
theSumAssured. Why?
Ans. Nature of payment
Q. If a person is absconding, then after how many
years will he be considered as dead & SA paid to the nominee:
Ans. 7 years
Q. A contract entered into a drunken person is
….:
Ans. Invalid contract
Q. A contract which has no effect on either of the
contracting parties is:
Ans. Void contract
Q. What is the maximum time in which the insurer
should settle a claim when all documents are submitted?
Ans. 30 days
Q. When insurance contract is
voidable?
Ans. Both the above
Q. Without submitting any form of claim a life
insurance policy holder received payments of maturity then what type of policy
he is holding?
Ans. Money Back
Q. If notification of death is received 3 years
after death then the claim can be declared:
Ans. Death claim
Q. What is the death benefit if the person has
multiple sums assured under different policies?
Ans. Sum of all SA in different policies
Q. In case of confirmed accidental death, the
benefit is paid in the form
of:
Ans. Lump sum assured plus accidental sum assured
Q. If the policyholder dies before receipt of
Survival Benefit claim then to whom the Survival Benefit claim monies are
payable?
Ans. Nominee
Q. The delay in settling claim by any insurance co
as per IRDA norms has to pay....% if the present bank interest rate is
5.2%:
Ans. 0.07%
Q. The policy under death claim is paid regardless
of when death occurs is:
Ans. Endowment plan
Q. The latin term 'void ab initio'
means:
Ans. null& void from the beginning
Q. No of days in which the death claim has to be
paid after the necessary documents have been
received:
Ans. 30 days
Q. How much proportion of accumulated fund can be
commuted in case of annuity policies?
Ans. Upto 1/3rd
Q. If a person is missing, then after how many years
will he be considered as dead & SA paid to the
nominee?
Ans. 7
Q. In case of Conditional Assignment, the claim
monies can be paid to:
Ans. Assignee
Q. In case of a Paid up policy, what is the claim
payable?
Ans. Fund value
Q. Third party insurance is compulsory under:
Ans. Motor vehicle Act 1988
Q. The Ombudsman can:
Ans. All the above
Q. In case of no fault liability the minimum
compensation that will be paid to the person injured due to motor vehicle
without proving the fault of the driver is
Ans. Rs. 50,000/- for death and Rs 25,000/-for
grievous hurt.
Q. A customer can approach an Ombudsman
if:
Ans. The value of the claim is not above Rs 20 lakh
Q. The Consumer Protection Act was passed
in:
Ans. 1986
Q. Protection of Policyholder's Interest guidelines
is published by:
Ans. IRDA
Q. LokAdalats were set up in June, 1985 with a view
to:
Ans. All the above
Q. HIT and run cases
means:
Ans. Vehicle and driver disappear after the accident
and the liability is not known
Q. Consumer Court is a:
Ans. Quasi-judicial machinery
Q. A defect or deficiency is
a:
Ans. All the above
Q. A Life Insurance Policy should
contain:
Ans. All the above
Q. Free look option should be exercised within:
Ans. 15 days of purchase of the policy
Q. A survey or should submit his report generally
within:
Ans. Within 30 days of appointment
Q. A General Insurance policy should contain:
Ans. All the above
Ans. Q. A Policy holder can register the following
in his Policy:
All the above
Q. In case of delay of Claim settlement under Life
Insurance Policy the company shall:
Ans. Pay interest on the claim amount at a rate
which is 2% above the bank rate
Q. In case of General Insurance Policy Claims, the
company will appoint:
Ans. Surveyor for assessing the loss
Q. When a customer cancels a policy under Free Look
condition, the insurer will refund:
Ans. The risk premium;
Q. Medical underwriting is necessary to prevent
people from purchasing health insurance coverage only when they
are:
Ans. All the above
Q. Policy Bond is a very important document for the
customer because:
Ans. It is a legal document containing the terms and
conditions of the contract.
Q. Free look of an Insurance Policy means:
Ans. Policy holder can cancel the policy after
purchasing it.
Q. RAP should
NOT:
Ans. All the above
Q. RAP should conduct ethical business with:
Ans. All the above
Q. An underwriter is a professional who has the
ability to:
Ans. Understand the risks to which the underwritten
object is exposed
Q. After sales service in insurance includes the
following:
Ans. All the above
Q. Cold canvassing in Insurance refers
to:
Ans. Meeting a person not known and with whom he
does not have any introduction or any meeting in past
Q. Agents act as an intermediary between the:
Ans. Insurer and the Policyholder.
Q. An Insurance company should be a:
Ans. All the above
Q. Corporate agent Is a corporate body which acts
as:
Ans. Agent for all Life and General Insurers
Q. A VLE can sell policies
of:
Ans. All Life, Non-Life and health Insurance
companies
Q. A public-sector company specialized for Risk
Related to Crop insurance is:
Ans. Agriculture Insurance Company of India Limited
Q. A public-sector companythatspecializesin risks
related to export credit
is:
Ans. Export Credit and Guarantee Corporation of
India
Q. Who manages the employees provident fund?
Ans. EPFO
Q. Unethical selling
includes:
Ans. All the above
Q. RAP can do the
following:
Ans. All the above
Q. Fact finding sheet allows the agent
to:
Ans. Analyse customer needs
Q. The rates of assumed annual growth to be shared
in the benefit illustration has been decided by which of the
authority:
Ans. Life Insurance Council
Q. In order to fulfil the Know Your Customer
Procedures, at what stage in the financial planning process is the insurance
agent most likely to request a copy of the Customer's
photograph?
Ans. At the end of the presentation meeting
Q. A fact find is not intended to:
Ans. Reveal client's personal secrets
Q. The agent can use the benefit illustration
document to show the client the projected growth of investment at the rate
of:
Ans. 6% and 10%
Q. The client's job profile and workplace play an
important role in:
Ans. Fact find
Q. During fact finding what will be the next step
after identifying clients need:
Ans. prioritize client needs
Q. What should an agent do in order to understand
the mental state of client in respect to his investment in savings products
Ans. Reviewing his existing Investments
Q. Assessment of needs does not
include:
Ans. priorities of the agent
Q. Which plan should an agent
suggest?
Ans. A plan based on needs of the client
Q. What is the period of award passed to the customer
decided by
ombudsman?
Ans. 3 months
Q. For Logging a policy which document is more
preferable - Baptism Certificate or
Ans. Baptism Certificate
Q. What is the min age to enter into the contract of
insurance?
Ans. 18
Q. Why does an insurer insist on age proof document?
To assess:
Ans. Risk assessment
Q. In a joint life plan for a husband & wife,
where should the agent' principal loyalty lay?
Ans. Insurance company, husband & wife
Q. Term insurance if best suited for the following
need:
Ans. home loan
Q. What is to be considered while taking first
policy?
Ans. All the above
Q. In fact-finding, why client's income analysis is
necessary?
To do financial planning according to the needs of the
client
Q. What does the liabilities section list
contain?
Ans. List the amounts of all the client's debts
Q. The advantage/disadvantages within cumulative and
fixed traditional deposits pertain to-
Ans. Returns
Q. Mr.Ramesh invested Rs:50000 in pension policy,
what is the percentage he can avail as:
Ans. will depend on his income slab
Q. A satisfied client will lead to:
Ans. All the above
Q. Insurance Contract without any Insurable Interest
will result?
Ans. Wagering Contract
Q. Benefit illustration is used to:
Ans. Show the client the nature of the product and
its benefits
Q. Suresh wants to transfer his physical gold to
gold exchange traded fund in relation to access this change will:
Ans. Insure against uncertainties
Q. Suresh wants to transfer his physical gold to
gold exchange traded fund in relation to access this change will:
Ans. Increase his liquidity
Q. 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?
Ans. Pension plan
Q. A person wants to invest in a FD for Tax benefit.
How many years he has to take the term of the
FD?
Ans. 5 Years
Q. KishanVikas’s payment gets cleared
at:
Ans. Post office
Q. Where would you have to go if you wanted to buy a
KisanVikasPatra?
Ans. Post Office
Q. Bank interest is accumulated:
Ans. Monthly
Q. What is the frequency of the crediting the
interest which is given to the customer in a cumulative
deposit?
Ans. quarterly
Q. In the Life Insurance segment, there
is:
Ans. One Life Insurance Company in the public sector
Q. Corporate agent Is a corporate body which acts
as:
Ans. Agent for all Life and General Insurers
Q. Customer asks the agent to disclose the
commission. The agent should:
Ans. disclose on demand
Q. Which is the training institute for providing
training to insurance agents?
Ans. Insurance Institute of India
Q. In a cashless Medi-claim policy the claim amount
is paid by the Insurance company to the:
Ans. TPA
Q. TPA's are authorized by the Insurer
to:
Ans. all the above
Q. TPA should
provide:
Ans. All the above
Q. Third Party Administrators operating in Health
insurance sector are licensed by IRDA
under:
Ans. IRDA(Third Party-Health Services) Regulations
of 2001
Q. Third Party Administrators are intermediaries
providing:
Ans. Health insurance services on behalf of
Insurance Companies
Q. Network Hospital in Health Insurance refers
to:
Ans. Hospitals with which TPAs tie-up for cash less
treatment
Q. If an Insurance company appoints a TPA under
health Insurance:
Ans. The liability to settle the claim remains with
the insurers
Q. The Ombudsman's powers are restricted to
insurance contracts of what value?
Ans. 20 Lakhs
Q. License of an agent was withdrawn in June 2010
due to malpractice. He can reapply for his license
in:
Ans. 2015
Q. What is the stipulated time frame within which an
insurer is supposed to respond after receiving any communication from its
policyholder?
Ans. 10 days
Q. 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 :
Ans. Consumer Forum
Q. Karthik written to his insurer about
non-settlement of a maturity claim. As per regulations the insurer should reply
to this within how many working days?
Ans. 10
Q. A policy holder submits cancellation of his term
insurance policy. The insurer accepts the form and fails to give the benefits.
Policy holder writes to IRDA post which the settlement should be made
within?
Ans. 15 days
Q. Health ID cards are provided to all their policy
holders to validate their identity at the time of admission
by:
Ans. Hospital
Q. The major duty of the TPA
is
Ans. Claim Management
Q. Third Party Administrators operating in Health
insurance sector are licensed by:
Ans. IRDA
Q. As per IRDA regulations IGMS should be mandatory
set up by:
Ans. By all insurers
Q. Ombudsman has to give his decision within how
many days?
Ans. 3 Months
Q. An Award is passed by Ombudsman. In how many days it
should be honored by Insurance Co
Ans. 15 days
Q. The functions of the Insurance Ombudsman
include
Ans. Conciliation and making awards
Q. IGMS is a platform for registering complaints
& mandatorily to be used by
Ans. all insurers
Q. What are the ways by which a policy holder can make
complaints
Ans. E mail or Toll free Number
Q. Ombudsman has to pass an award within how much
time
Ans. 3 months
Q. If a person chooses cumulative deposit than
Recurring deposit difference will be in:
Ans. Frequency of interest calculation
Q. If a person want to maintain emergency funds the
best place is a bank or:
Ans. ULIP
Q. What period of time a client has to be invested
to get tax benefit under postal
scheme?
Ans. 5 years
Q. What is purpose of investing money in debt mutual
fund?
Liquidity
Q. Anand received post taxation 5% return on his
fixed deposit in a bank. If his net return is 3% what can be the
reason?
Ans. Inflation
Q. If an Agent focusses on Commission, then it
is:
Ans. Unethical
Q. Which body has created a call centre for logging
a complaint?
Ans. IRDA
Q. A client has got some funds and wants to provide
for retirement and margin money. What should be his priority?
Ans. Depends upon his actual age and years left for
retirement
Q. A customer while investing in to Recurring
deposit or Cumulative deposit. What are the key factors which will
matter?
Ans. interest rates
Q. An agent reveals his commission received from
insurance sales to X&Y. Both plans are of same duration. Why is commission
of X far higher that of
Y?
Ans. Y has brought a single premium product
Q. A customer surrenders his policy on Feb 2011. As
per Agents code of conduct an agent can get a new policy from this customer
from Feb which year?
Ans. 2011
Q. Persistency has increased from 82% in previous
year to 86% this year. That means:
Ans. Less Lapsation
Q. After doing the need analysis of the client the
agent advised the client to opt for ROP product. But the client refuse.
According to ethical business practices, what will the agent
do?
Ans. Enquire about the refusal from the client
Q. What key impact will the agent have in low
persistency?
Ans. Will have impact in his commission
Q. Complaint council bodies other than IRDA grievance
readdress forum & COPA
Ans. Ombudsman
Q. As per the IRDA circular an insurance
agent:
Ans. needs to disclose the amount of commission on
demand
Q. Transactions of sale of life insurance products
to the insurable clients are viewed in the insurance market mostly
as:
Ans. Relationship transactions
Q. What is meant by Higher persistency to the
insurers?
Ans. Higher Profits
Q. If Sales Target get reduced, then Churning will:
Ans. Decrease
Q. An advisor will do a churn to:
Ans. To earn extra commission
Q. Churning is bad, based on which aspect:
Ans. Policyholders suffer due to surrender charges
and benefits
Q. If the agent recommends the client to terminate
an endowment plan and take a whole life in order to earn higher commission, it
is termed as:
Ans. Churning
Q. According to IRDA agent’s code of conduct, what
is the best method of showing the amount of commission earned by the
advisor?
Ans. Signed copy of sales illustration
Q. What are the key aspects that advisors do for
better
persistency?
Ans. Selling product as per need & policy
servicing
Q. If the client does not wish to proceed with the
recommendations right at the moment, the agent
should:
Ans. Should ask for a future date from the client
Q. During the recommendation stage the advisor needs
to:
Ans. recommend the products that best meet the
client’s needs
Q. Insurer has rejected an insurance proposal with
intimation along with reasons to client and with copy to agent. What should
agent do?
Ans. Explain to client the reasons of rejection
Q. The best way to prove that customer of a ULIP
policy is given awareness about the commission paid to the Agent
is:
Ans. From signed copy of benefit illustration
Q. During product recommendation, the agent should
explain the product in relation to:
Ans. The needs that came to fore in fact find
process
Q. What is the reason that an advisor is getting
more than 35% Commission in the 1st Year?
Ans. Alternate channel
Q. An Agent can receive maximum of ________ %of the
premium as commission in the first
year
Ans. Thirty Five Percent
Q. Lien can be considered an alternative of which of the
following
Ans. Clause.
Q. What is the special report that is asked by the
underwriter from the officer of the insurer?
Ans. Moral hazard report
Q. The responsibility for classification and analysis of
proposal form lies with whom
Ans. Underwriter
Q. Time deposit account is issued by
Ans. Post Office
Q. All ULIP pension plans have to give how much
percentage as guaranteed returns
Ans. 4.50%
Q. How the Daily Hospitalization cash benefit will
provide benefits to policyholder who is hospitalized
Ans. A fixed amount on a daily basis is paid irrespective
of the actual cost of treatment.
Q. What are the benefits to the policyholder under
surgical car rider?
Ans. Treatment cost of surgery subject to term &
Condition
Q. In a pension plan illustration what are the parts
which shows the benefit for an annuitant
Ans. Guaranteed and non guaranteed part
Q. Open market option under annuity policy would extend
which of the following benefit
Ans. Increase in the range
Q. Some health plans will give coverage for family member
also we will call these plans as
Ans. Family floater health insurance plans
Q. 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?
Ans. Marriage
Q. A provision for superannuation is a normally taken a
high need to
Ans. a Self employed person
Q. During the recommendation stage the advisor needs to
Ans. Recommend the products that best meet the client’s
need
Q. Mr. Harsh an agent wants do a through fact finding for
his client to Mr.Kishan who is a business man. Which of the following
information will be helpful to know about the earnings and expense at kishan?
Ans. Client’s profit and withdrawal’s from business
Q. Higher persistency to the insurer ensure what
Ans. Higher profits
Q. Persistency has increased from 82% in previous year to
86% this year that means
Ans. Less Lapsation
Q. When should an agent disclose the commission which he
will earn from the product which he is going to sell?
Ans. When the customer asks him
Q. Which one of the following factors does not help in
the persistency
Ans. Dispatching discharge voucher to the customer
Q. Under married women’s property act, 1874 a
policyholder is
Ans. the trustee
Q. Married women’s property act 19874 provides that a
life insurance policy that has been taken out by
Ans. Married man
Q. What is the role of National insurance Academy?
Ans. To undertake training activities
Q. De-tarrification is a process by which pricing of
insurance
Ans. insurers can price their product on their self past
experiences
Q. As per IRDA regulations IGMS Should be mandatory setup
by
Ans. By all insurers
Q. Generally insurance companies do not hold the premium
in case of a fraud or misrepresentation. However, due to which of the following
circumstances by insurer can retain the premium the policyholder
Ans. Indisputability clause
Q. A policy holder is not satisfied with the services at
the insurer and complains to ombudsman. In how many days from receipt of the
complaint the ombudsman should pass the recommendation
Ans. 1 month
Q. The premium on all riders put together should not
exceed.
Ans. 30% of the premium on the base policy.
Q. How riders will help the customer in life insurance
Ans. Allow policyholder to customize their insurance
cover with accidental benefits
Q. In daily hospitalization cash benefit scheme
Ans. The insurance company may pay an additional amount
on a daily basis if the insured is admitted to the intensive care unit (ICU).
Q. What is the main objective of taking the life
insurance policy?
Ans. Protection
Q. Group insurance can be taken in following relationship
Ans. Employee- Employer
Q. If a person consuming alcohol- what is the type of
Hazard
Ans. Moral
Q. Life Insurance is the most important for which age
group
Ans. Pre- retirement
Q. While on sales of an insurance plan Mr…. Had to show
his license
Ans. The customer demanded
Q. Which one of the following reports in not considered
in case of pankaj bought a plan in 2009 & died in road accident in 2011.
Ans. advisor confidential report
Q. In the case of agent’s death, the commission payable
will be paid to
Ans. His legal heirs
Q. Which one of the section deals with the licensing of
an agent
Ans. Section 42 of the insurance act 1938
Q. How are perils and hazards normally distinguished
under therm insurance policies?
Ans. Perils are risk that policyholders will die before a
specified date and hazards are factors which could influence that risk.
Q. Where one can approach in case of dispute
Ans. Consumer forum
Q. The regulations issued by the IRDA, require that the
decision on the proposer must be conveyed to the proposer within
Ans. 15 days of receiving the proposal
Q. According to IRDA guidelines, how long does an
insurance company have to complete its investigation of claim?
Ans. 180 days
Q. Who is the regulator supervisor and monetary authority
of the financial system in India?
Ans. RBI
Q. Indisputability clause can be enforced by the
insurance company during the
Ans. First two years of policy
Q. To ensure that the premiums are paid out of a
legitimate source at funds cash is accepted
Ans. Up to 50,000
Q. If there is no claim in a year then what will be the
benefit to the customer as no clam BOUNS
Ans. Discount in next year premium
Q. Maximum time for investigation in disputed claim
Ans. 3 months
Q. A lump sum withdrawal allowed as commutation in
pension plan is.
Ans. 1/3 of the accumulation fund
Q. Customer has opted for a 5 year guaranteed annuity
option. What will happen to annuity, if the customer survives for 5 years after
the end of guarantee period?
Ans. Till he die
Q. In term insurance if critical illness rider claim
happens then what will happen to existing policy.
Ans. CI benefits will case
Q. The Ombudsman’s powers are restricted to insurance
contracts of value not exceeding
Ans. 20Lakhs
Q. In which section of policy document, information about
the location at insurance Ombudsman had written
Ans. Information statement
Q. Ombudsman passes an award within which time
Ans. 3 months
Q. If the license of an agent has been disqualified by a
designated authority in 2010 then the person can apply for a license in which
year
Ans. 2015
Q. Under the hospital care rider what is the payout mode.
Ans. Specified amount multiplied by the number at days
the policyholder is hospitalized.
Q. M.rSamad has taken a G-Sec and has parted with it mid
way as he required the money with the intention at not getting the interest
what will he get
Ans. Discounted value
Q. If bonus is given under a plan the additional premium
added is known as
Ans. Loading
Q. Nomination can be in favor of how may people
Ans. It can be any number
Q. Mr.Balaji is suffering from Asthma and the policy in
been done on joint life basis and the need for nomination under the plan is
less as
Ans. Joint life policy
Q. What key impact will the agent have in low
persistency?
Ans. Will have impact in his commission
Q. Within how many days will the underwriter needs to
inform the policyholder regarding the status at the policy.
Ans. 15 days
Q. Ravi was expecting a claim amount of Rs. 12, 00,000
from insurer but it was rejected. He feels that it is repudiated on wrong
reasons. Which consumer forum can be approach?
Ans. District level
Q. If any consumer is dissatisfied with the customer care
cell of any insurance company to whom they can escalate their grievances
Ans. Nodal Officer
Q. With this type of deposit the bank pays the principal
and the total interest at the end of the term.
Ans. Cumulative deposits
Q. Certificate from the village panchayat
Ans. Will be considered as non standard age proof
Q. Varun wishes to pursue a career in insurance and
wishes to be in a department which calculates the level of premium. In which
department should he join.
Ans. Actuary
Q. Aswin is looking at different plans of insurance for
protection at the lowest premium. Which is the best plan for him?
Ans. Term plan
Q. The insurance act of 1938 created which of these
Ans. Traiff Advisory Committee
Q. The premium for accidental death benefit rider must
not exceed
Ans. 30% of base policy premium
Q. If the annual premium for a plan is 32000 and a
frequency loading at 4% is added in a quarterly premium what is the amount that
needs to be paid
Ans. 8320
Q. What amount of insurable interest does an individual
have in his own life
Ans. Unlimited
Q. Kalyan is an illiterate person and his proposal form
was filled by simaran, then what is the additional requirement to be taken
along with the documents
Ans. Thumb impression of kalian has to be taken
Q. Harsh’s policy matured, however he was paid only 25%
of the sum insured in spite at all his premiums been paid on time . This
indicates that his policy is a
Ans. Money back plan
Q. The Authority at COPA is limited to what amount at the
district level
Ans. 20, 00,000
Q. If a person is concentrating more on health plan and
retirement plan then at which stage at life is he in
Ans. Pre Retirement
Q. The Institute of Insurance and Risk Management along
with insurance education does what more
Ans. Research
Q. A claim was paid in a policy and it was advertised in
the newspaper also. This indicates that the policy was
Ans. It was lost
Q. An indemnity bond was signed in a policy when the
claim was paid. This indicates that the policy was
Ans. It was lost
Q. Payment of premium and sum assured are laid down in
Ans. Operative clause
Q. What is the role of National Insurance Academy?
Ans. To undertake training activities
Q. Which is the primary saving need among all saving
needs?
Ans. Contingency/Emergency fund
Q. Sanjeev is an insurance expert who has rich experience
in determining premium levels for product, what is his profile like
Ans. Any actuary
Q. The Non Government Organizations (NGO) helps the
insurance industry immensely in
Ans. Linking Buyers & Sellers
Q. Investment by foreign direct investors in to insurance
co’s is restricted to
Ans. 26%
Q. Which market does the Micro Insurance Concentrate on?
Ans. People with low income
Q. What is the similarity between Recurring Deposits
& Cumulative deposits in a bank?
Ans. Guarantees
Q. What facility do the insurers use to cover Risk beyond
their Limits?
Ans. Re Insurance
Q. Lung cancer and smoking.
Ans. Lung cancer is peril and smoking is moral hazard
Q. The type of risk that can be insured against is
Ans. Pure Risk
Q. Pooling of risk in insurance means
Ans. All similar risk are pooled together
Q. Pure risk is classified under
Ans. Insurable risk
Q. The consequences of these risks which will affect
specific individuals or local communities in nature is called as
Ans. Particular risk
Q. Harish takes a life insurance policy for Rames. Which
of the following statement best describes the principle of insurable interest.
Ans. Harish suffers financial loss incese of death of
Ramensh
Q. What is the min age to enter into the contract of
insurance?
Ans. 18
Q. In a whole life plan- The policyholder’s
responsibility to give disclosure
Ans. At the beginning of the contract
Q. Principle of utmost good faith will operate in
existing policy
Ans. If the policy has lapsed and it has to be revived
Q. Why does an insurer insist on age proof document? To
assess
Ans. Risk Assessment
Q. Mr. A Submitted the proposal form. When will the risk
begins for the company?.
Ans. FPR issued
Q. The obligation of the insurer for the whole life
policy is mentioned in
Ans. Operative Clause
Q. All Ulip Pension Plans have to give how much
percentage as guaranteed returns
Ans. 4.50%
Q. Yash wants to take open market option in pension plan.
What is the benefit?.
Ans. For improved annuity rate
Q. Asvath is illiterate. He wants to take policy anssurya
is a friend of his help him is answering questions and answers and also fills
proposal. In addition to this requirement is
Ans. Left thumb impression of asvath along with a
declaration of his friend
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. Bank fixed deposit rate
Q. Annual premium of insurance product is Rs.32, 000, 4%
loading on Quarterly mode of payment what is the quarterly premium?
Ans. 8320
Q. Why ACR
Ans. To help the underwriter to assess the Risk
Q. In a 20 year with profit policy, persist ency Bonus is
paid at the end of
Ans. 20th year
Q. Hari Wants a constant life cover till his 31 st
birthday. But he cant afford to pay high premiums. The best suited products for
him would be
Ans. Term Plan
Q. At the time of maturity, quarter of the SA is paid
though the policy was in force
Ans. Money back
Q. Weekly premiums are generally collected for which
type/range of plans
Ans. Micro Insurance
Q. What tax rate, if any, will be applicable to a life
insurance policy holder for the maturity proceeds of a Rs 5000 life insurance
policy
Ans. Nil
Q. The best way to overcome the problem of investment
decision depends mainly on peer influence is
Ans. Seeking Professional Advice
Q. A person who has a temporary job Loss, where should he
look for investing other than FD
Ans. Debt Funds of MF
Q. RBI increased interest rates 2 times then the stock
prices
Ans. decrease
Q. A person wants to invest in a FD for Tax benefit, how
many years he has to take the term of the FD?
Ans. 5 year
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. Types of assignment
Ans. Absolute & Conditional
Q. Aditya wants to take home loan and his monthly take
home is 80,000 what as a best practices should be the maximum EMI
Ans. 32,000
Q. Omkar Started a pension policy with provider a but
ended up in taking the annuity payment from provider B. The result directly
reflect the which feature available with this policy
Ans. Open Market Option
Q. During financial planning session if the agent finds
out the following needs which one should be given the top priority. Needs:
Income protection Childs education marriage and emergency funds
Ans. Income protection
Q. What frequencies can one take annuity?
Ans. Monthly, Quarterly, Half Yearly
Q. Commutation option allows the annuity policy holder to
with draw
Ans. 33%
Q. Why do self employed individual have the need to buy
Medical Insurance rather than People working in public Sectors.
Ans. Public sector employees enjoy Medical Insurance Covers
Related to job
Q. Mohit has two kids, one of 6 years and other 8 years.
He is the earning member and not having life cover. Before advising him to take
health policy, what he should be advised?
Ans. Life Insurance Policy for himself
Q. Manoj a 26 year old is having 7 years old son, what
will happen to his monthly disposable income after 15 years of job
Ans. significantly increase
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. 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. Objective of fact finding
Ans. Client needs analysis Q. Fact finding sheet allows
the agent to Ans. Analyze customer needs
Q. Mr. A has approached by the Agent and on fact finding
the score is 3, this represents
Ans. Moderate Risk Taking
Q. To ensure that the premiums are paid out of a
legitimate source of funds cash is accepted
Ans. Up to Rs 50000
Q. With effect from 1st July 2010 all insurers have to
disclose in the benefit illustration document the.
Ans. Commission Pay to their agents.
Q. Which Act or Regulation provides that the Renewal
Commission is payable to the legal heirs of the insurance Agent ?
Ans. Insurance Act 1938