IC 33 Exam Mock Test 12


 
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Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 

What facility do insurers use to cover risks beyond their exposure limits
a.
Bancassurance
c.
Both a & b
b.
Reinsurance
d.
Neither a nor b
 

 2. 

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
 

 3. 

What is IRDA stands for & year of Incorporation
a.
Insurance Regulatory and Development Authority (IRDA) . The IRDA was incorporated as an autonomousbody in April 1999
c.
IRDA is an independent body constituted to address the grievances of the insurance policy holder
b.
Insurance Regulatory and Development Authority (IRDA) was constituted in 1956
d.
None of the above
 

 4. 

The amount of insurance depends on
a.
The penil
c.
Neither the penil nor the risk
b.
The risk
d.
Both the penil and the risk
 

 5. 

A human being's value is measured by
a.
The income that he generates
c.
His academic qualification
b.
The value of the goods that he produces
d.
All of the above
 

 6. 

The bussiness of insurance affects
a.
Availability of capital for bussiness
c.
The safety of equipments in factories
b.
The life span of individuals
d.
All these three
 

 7. 

An agent is intermediary between
a.
Client and insurance company
c.
Client and IRDA
b.
Insurance Company & IRDA
d.
Insurance and Reinsurance Company
 

 8. 

Which statement is correct?
a.
lung cancer is peril and smoking is a hazard
c.
Both the statement is correct
b.
smoking is peril and lung cancer is hazard
d.
Both the statement is incorrect
 

 9. 

Ramkumar is habitual car racer. What kind of hazard is this?
a.
Physical hazard
c.
Moral hazard
b.
Fraudulent representations
d.
Peril
 

 10. 

Which of following refers to specific event which might cause a loss
a.
Peril
c.
Physical hazard
b.
Hazard
d.
Uncertainty
 

 11. 

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
 

 12. 

Insurance Contract without any  Insurable Interest  will result?
a.
Wagering Contract
c.
Void Contract
b.
Legal Contract
d.
All of the above
 

 13. 

To be a valid contract ,the declaration is necessary in which document
a.
Policy Document
c.
FPR
b.
proposal form
d.
RPR
 

 14. 

Changes in policy can be made by
a.
Issuing a new policy
c.
Corrections on the policy
b.
Endorsement
d.
Not allowed
 

 15. 

In which kind of policy the insurable interest should exist at the time of claim only
a.
Motor insurance
c.
Liability insurance
b.
Marine insurance
d.
Travel insurance
 

 16. 

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
 

 17. 

Policies as he was regularly paying the premium. What is your suggestion?
a.
Due to regular premium he can take loan from both the policies
c.
No loan from money back but can take loan from whole life
b.
He can surrender whole life and take loan.from money back policy
d.
He can't take loan from whole life policy but can avail loan from money back policy
 

 18. 

Ramlal is an insurance policyholder. He has recently shifted his home from New Delhi to Noida. He wants the address to be changed. This change in policy document will be effective through?
a.
Terms & condition
c.
Endorsement
b.
Preamble
d.
Schedule
 

 19. 

ii Moral hazard reflects the
a.
Intentions and attitude of proposer
c.
Occupation and residence of proposer
b.
Habits and Hobbies of proposer,
d.
Medical and personal history of proposer
 

 20. 

Mr. Gupta is recently detected with lung cancer. He would like take an insurance. Wht is your suggestion?
a.
Time of death is uncertain, so insurance can be given
c.
He can take insurance after submitting health certificate
b.
only lung is affected so health insurance can be given
d.
Cannot be given insurance for health reason
 

 21. 

Ajay is 35 years old and works for a multinational corporation (MNC). He has a ten-year-old son, Vijay, whom he dreams will one day become a doctor. Ajay’s spouse is a housewife, and his parents are retired and dependent on him. Ajay has a home loan of 40
a.
term plan
c.
endowment plan
b.
health plan
d.
traditional plan
 

 22. 

Open market option under annuity policy would extend which of the following benefit
a.
Ensure better annuity rate
c.
increase in return
b.
Increase in range
d.
Switch of funds
 

 23. 

Alumpsum withdrawal allowed as commutation in pension plan is
a.
1/3 of accumulated fund
c.
1/2 of accumulated fund
b.
114 of accumulated fund
d.
Full withdrawal is allowed
 

 24. 

If a person chooses Cumulative deposit than Recurring deposit ,difference will be in
a.
frequency of interest  calculation
c.
Interest tax
b.
Tax
d.
Tenure
 

 25. 

Rahul switch from direct holding of shares to equity based mutual funds. The impact on risk  would be
a.
Less transparent
c.
Less return
b.
More diversified
d.
Steep rise
 

 26. 

What is similarity between recurring deposits and cumulati deposit in a bank
a.
Guarantee
c.
Tenure
b.
Taxation
d.
Lock in periods
 

 27. 

In cumulative bank deposit the interest unit is normally compound on what basis
a.
Monthly
c.
Half yearly
b.
Quarterly
d.
Annually
 

 28. 

What frequencies can one take in annuity
a.
monthly,quarterly,half yearly, yearly
c.
fortnightly, monthly ,half yearly, yearly
b.
fortnightly,quarterly,monthly,yearly
d.
None of the above     
 

 29. 

What are the Special features of Health plan?
a.
Covers disease expenses
c.
covers hospitalization cost
b.
Helps in Tax Benefits
d.
All of the above
 

 30. 

How riders will help the customer in life insurance
a.
Allow policy holders to customise their insuranceCoVerW addl. benefit
c.
Operative clause
b.
Rider is like aclause
d.
Rider is like preamble
 

 31. 

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?
a.
Young married couple
c.
Pre-retirement.
b.
Young married with children.
d.
Retirement
 

 32. 

With profit policies can be given to
a.
surety
c.
partner     
b.
keyman
d.
Individual
 

 33. 

Acouple has 7 year old son. What solution would they be looking for
a.
Retirement
c.
Child education
b.
Health care
d.
Life cover
 

 34. 

Mrs. Sheela received some amount out of her husband's d In such a situation what will be her prime focus
a.
Saving
c.
Investment management
b.
Insurance
d.
Planning for pensi
 

 35. 

Under S 80C the maximum tax deduction that can be gainpremium paid Rs._in a financial year
a.
Rs. 75,000
c.
Rs. 1,20,000
b.
Rs. 1, 10,000
d.
Rs. 1,00,000
 

 36. 

Perceived needs are
a.
Short term needs
c.
Imagined to be important by client
b.
Imagined to be important by advisor
d.
Long term needs
 

 37. 

Fact find process helps to
a.
Ensure a salesIs achieved
c.
Create an audit trail for future complaints
b.
Identify client need
d.
Provide regulatory body about agents database
 

 38. 

Which type of questioning is very useful to gather information from clients?
a.
Close ended question
c.
Interrogative question
b.
Open ended question
d.
Clarification question
 

 39. 

Higher persistency to the insurer ensures what ?
a.
More productivity
c.
Higher Profits
b.
Higher attrition
d.
Higher S.A
 

 40. 

An agent reveals his commission received from insurance sale$ to X and Y. Both plans are of same duration. Why is commission ofXa higherthan that ofY
a.
'X' has bought other limited premium product
c.
‘X’ is married
b.
'Y' has bought a single premium product
d.
'Y' is single
 

 41. 

Amit & Rashmi are newly married. Both are working couple,Thl want to invet their savings 1,00,000 annually to build corpu$ I make down payment for their house in 5 years from noW,A adviser sold them a Uhp to meet their requirement this may resUlt I
a.
Ruining the long term reputation of company
c.
Bad reputation of individual adviser
b.
Opportunity of new business for adviser
d.
Financial burden on the couple
 

 42. 

Without submitting any form of claim, a life insurance policy holder received payments of maturity then what  type of policy he is holding
a.
ULIP
c.
Money Back
b.
Term
d.
Health
 

 43. 

What is the maximum time in which the insurer should settle a claim when all documents are submitted
a.
3 days
c.
30 days
b.
15 days
d.
10 days
 

 44. 

The delay in settling claim by any insurance company as Pø: IRDA norms has to pay _% if the bank rate was 5.2% durin9 the claim pd.
a.
0.07
c.
0.072
b.
0.09
d.
0.08
 

 45. 

An indemnity bond was signed in a policy whön the claim was paid. This indicates that the policy was
a.
lt wasl ost
c.
It was lapsed
b.
It was paid up
d.
It was surrendered
 

 46. 

Mr. Bhaskar,had:taken atermi plan 2008 for Rs. 7 lac.. He has anADBrider'worthRS.;4 lac. UnfortunatelyBhaskar died u car accident How much will,he tle.death claim?
a.
Total 7 lac will be paid as death claim
c.
Total 11 lac will be paid
b.
Total 4 lac will be paiasdeathcIaim due tocar accident.
d.
Total 7 lac will be paid without any deduction
 

 47. 

In a MWP policy the beneficiaries under the plan, other than wife can be
a.
Ex wife
c.
Parents
b.
Sibling
d.
Children
 

 48. 

Board of Insurance is related to
a.
SEBI
c.
Insurance Association
b.
IRDA
d.
None of the above
 

 49. 

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
a.
he has to inform the customer that the co has broken relationship with the customer
c.
He has to explain the reasons for rejection to the customer
b.
he plans to change the plan
d.
He takes up with the higher authorities
 

 50. 

Sh. Gayaram advisor who advised the customer to close the old policy and take new one. But new policy does not have any extra benefits but it will give more commission to Sh. Gayaram. This is called
a.
Switching
c.
Redirecting
b.
Churning
d.
Shifting
 



 
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