IC 33 Exam Mock Test 14


 
Name: 
 


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

 1. 

Insurance is necessary because
a.
Assets deprciate over time and through usage
c.
Name of the above reasons
b.
Assets may be damagedby external causes
d.
None of the above reasons
 

 2. 

Insurance works on the principle of
a.
Mutual help
c.
Both of the above
b.
charity
d.
Neirther of the above
 

 3. 

An insurer as a trustee, to give priority to
a.
Policyholders, as a class
c.
The claimant's financial condition
b.
An individual policyholder's difficulties
d.
All of the above
 

 4. 

The probability of an event is mentioned
a.
As a ratio
c.
Neither as a percentage nor as a ratio
b.
As a percentage
d.
Either is a percentage or as a ratio
 

 5. 

Purpose of taking life insurance would be
a.
To save tax
c.
Investment
b.
Saving habit
d.
Protection
 

 6. 

Aprofessional insurance marketcarnies
a.
Need based selling
c.
Commission based selling
b.
Product based selling
d.
Company based selling
 

 7. 

Moral hazard is
a.
History of heart disease
c.
Consuming alcohol
b.
Working in chemical factory.
d.
Teacher in primary school
 

 8. 

Principle of Indemnity applicable to
a.
Life Insurance
c.
Both a & b
b.
General Insurance
d.
Neither a nor b
 

 9. 

A & B in enters into a Contract & B accepts the Contract with a condition. Will this be considered as a Contract Between A & B?
a.
Contract is created only when the acceptance isunconditional.
c.
Both are Correct
b.
Contract is created only when the acceptance isconditional.
d.
Both are Incorrect
 

 10. 

When will the Principle of Utmost Good faith apply in Term insurance plan?
a.
Throughout the policy contract
c.
before receiving policy document
b.
before premium deposit
d.
After receiving the policy document
 

 11. 

Earning Pooling of risk in insurance means
a.
Premium collected & deposited in a pool
c.
Premium is pool to make claim
b.
All similar risks are pooled together
d.
Contribution of insurance company
 

 12. 

Utmost good faith will operate in existing policy
a.
Every time premium is paid
c.
If insured person falls sick and admitted to hospital
b.
If policy has lapsed and it has to be revived
d.
If the insured person changes his job
 

 13. 

Insurer appoints a candidate of this professional qualification ,who decides the amount of premium in insurance products
a.
Actuary
c.
Sales Officer
b.
Underwriters
d.
Advisor
 

 14. 

Proposal decision to be communicated to the client with in
a.
7 days
c.
15 days
b.
10 days
d.
30 days
 

 15. 

Where annually increasing flexible premium operate ur insurable what rate of increase will generally apply?
a.
0.025
c.
0.05
b.
0.03
d.
0.075
 

 16. 

Claim was settled however full sum assured not paid th policy was in force due to
a.
Lien
c.
Surrender
b.
Bonus
d.
Accidental death
 

 17. 

Mr. Sumesh takes a policy and pays premium Rs. 20,000with• sum insured of Rs. 3 lac what will be the tax implication on hi: maturity amount
a.
Fully taxable
c.
0.2
b.
0.1
d.
tax fully exempted
 

 18. 

Suresh has adequate reserve capital with him and he wishes to protect his income, moreover he feels that if he does not die than he would need the amount what type of plan should he opt for
a.
Term insurance plan
c.
Return of premium plan
b.
Endowment plan
d.
Pension plan
 

 19. 

Flexibility like partial withdrawals and taking premium holidays is possible with
a.
Fixed deposit
c.
Term Insurance
b.
ULIP
d.
Endowment
 

 20. 

Manmohan has recently purchased a house worth Rs. 50 lac on loan. Which insurance plan you an advisor will suggest?
a.
Endowment plan
c.
Whole life plan
b.
Money back plan
d.
Term plan
 

 21. 

VMr. Kumar decides that his employees should have sss. whit type of plan is SSS
a.
Salary saving life plan
c.
Salary insurance plan
b.
Not a specific plan
d.
VSalary specific plan
 

 22. 

Under which section of the Income Tax Act can an individual get a deduction from taxable income for the
a.
S. 80D
c.
S 80E
b.
S. 80C
d.
S. 80F
 

 23. 

A person planning to invest in Kisan Vikas Patra will go to
a.
Insurance Branch
c.
Internet
b.
Post Office 
d.
Mutual Fund Office
 

 24. 

A customer while investing in to Recurring deposit or Cumulative deposit what are the key factors which will matter
a.
Taxation
c.
interest rates
b.
frequency of payment
d.
tenure
 

 25. 

Ramesh has invested in post office monthly income scheme. The interest rate was set at 6%. What will be the effect of rate in going years
a.
Increase gradually
c.
Remain constant
b.
Decrease grdually
d.
Chang as per market fluctuation
 

 26. 

Vinod being an insurance agent can offer assistance to his cli Ramesh by
a.
Providing him emergency fund
c.
Recommendation of product with highestreturn
b.
Matching the product with Ramesh need
d.
Discourse saving in. a purposeful and need based manner
 

 27. 

If customer has invested money in a pension plan from compafl A and buys an annuity from company B what is the nature transaction?
a.
Lifelong annuity
c.
Reinsuring annuity
b.
Open market
d.
Deferred annuity
 

 28. 

To identify suitable products their main features and their tax treatment is role of
a.
Agent
c.
Pelicyholder
b.
Insured
d.
Insured person
 

 29. 

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

 30. 

The sole focus during a clients fact-find session was health care 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
 

 31. 

In which of the recognised life stages an indivlducl does not required any protection cover
a.
Childhood
c.
Pre retirement
b.
Young married
d.
Retirement
 

 32. 

A Person Need to do Estate Planning when
a.
Young Person
c.
Married
b.
30-40 years age group
d.
About to get retired
 

 33. 

Which plan should an agent suggest
a.
A Plan based on needs to  the Client
c.
A Plan based on the clients dreams
b.
A plan based on paying capacity of the client
d.
None of the Above
 

 34. 

The rates of assumed annual growth to be shared in the benefit illustration has been decided by which of the authority
a.
IRDA
c.
The Royal Bank
b.
Life insurance council
d.
SEBI
 

 35. 

The best way to prove that customer of a ULIP policy is given awareness about the commission paid to the agent is
a.
Ask the insurer to give a policy endorsement letter
c.
From signed copy of benefit illustration
b.
From the fact details
d.
From ticked columns of proposal form
 

 36. 

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
 

 37. 

If a person is missing then after how many years will he be considered as dead & SA paid to the nominee.
a.
5
c.
10
b.
7
d.
12
 

 38. 

Client died in 89th day from DOC. In which category he is not eligible for claim
a.
Murder
c.
Accident
b.
Deep Illness
d.
Suicide
 

 39. 

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%
a.
0.07
c.
0.072
b.
0.085
d.
0.082
 

 40. 

During claim insurer deduct Rs. 10,000 in spite of having  no Lien and all due premiums are paid. What are the other reason for deducting the same?
a.
Premium Rate increase
c.
Mode of Payment
b.
Loan facility
d.
Loading
 

 41. 

Vikas takes insurance policy and dies after B months. If claim needs to be rejected basis of the rejection would be
a.
Suicide
c.
Death due to accident
b.
Murder
d.
Body notfound
 

 42. 

lnsurer will not pythe.ç.aim unless
a.
Policyholder makes a demand.
c.
`Event insured against happens
b.
Policyholder makes a demand
d.
lriSurer. comptes'theenqui
 

 43. 

The agents duties and responsibility ends
a.
When the clients policy is issued
c.
When the nominee has changed
b.
When the clients needs have been established
d.
When the maturity claimissettled
 

 44. 

Which is the training institute for providing training to insurance agents?
a.
Insurance Institute of India
c.
RBI
b.
IRDA
d.
SEBI
 

 45. 

Regulation issued by IRDA required that the decision on the proposal must be conveyed to the proposer within
a.
15 days
c.
1 month
b.
20 days
d.
no time bar
 

 46. 

Complaint council bodies other than IRDA grievance readdress forum & COPA
a.
Ombudsman
c.
Insurance Association
b.
Insurance Institute of India
d.
FERA
 

 47. 

What is the period of award passed to the customer decided by ombudsman?
a.
2months
c.
5 months
b.
3 months
d.
6 months
 

 48. 

Mrs. Hansa, an agent has planned to sell maximum product within a short span of time by giving maximum rebates tocustomer to complete the context target of the company. Her action
a.
Will benefit both the company and the customer
c.
Agent will be terminated
b.
Reputation of the company will be high due to offers to the customer
d.
Agent will be qualified for the contest
 

 49. 

According to Insurance broker association of India, what is the most appropriate relationship between insurer and broker
a.
Insurance broker represents the client and insurer, remunerate the broker
c.
Insurer represent both client and broker remuneration
b.
The client represents broker and insurer remunerate broker
d.
Broker only .service the client
 

 50. 

A policy has been rejected by the company under direct intimation to the customer and copy to agent what is the next action of agent
a.
He has to inform the customer that company has broken relationship
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 auth.
 



 
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