IC 33 Exam Mock Test 2


 
Name: 
 


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

 1. 

When was IRDA formed??
a.
2000
c.
2001
b.
1999
d.
1998
 

 2. 

Micro insurance can be transacts by
a.
Life insurance only
c.
Both life and non life insurers
b.
Non life insurance only
d.
Only by specify created insurers
 

 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. 

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

 5. 

Foreign Direct Investments in Insurance allowed to the extent of
a.
0.15
c.
0.51
b.
0.25
d.
0.26
 

 6. 

Why do people need life insurance?
a.
To help take care of their obligations should they die prematurely
c.
To maintain their status in society
b.
To avail tax benefit with saving of amount for investment
d.
To comply mandatory obligations.ofemploymentterrns
 

 7. 

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
 

 8. 

The consequences of risk which will affect specific individuals or local communities in nature is called as
a.
Pure risk
c.
Particular risk
b.
Financial risk
d.
Physical Hazard
 

 9. 

Mr. X is illiterate and is buying insurance. Mr. Y fill up the proposal form on behalf of Mr. X and also endorses and signs an attestation in the proposal form. In addition to all document what else should be taken
a.
Mr. X photograph
c.
Mr. X thumb impression
b.
Mr. Y photograph
d.
Mr. Y thumb impression
 

 10. 

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

 11. 

Two endowment policies A and B are issued in the same time on the quarterly mode. In both the policies 22 quarterly installments are paid. Both are surrendered immediately after paying 22nd installment. But in policy A surrender value is significantly hig
a.
Term of A policy is higher than B policy
c.
Policy A is assigned and B is not assigned
b.
Term of B policy is higher than A policy
d.
Policy B is assigned and A is not assigned
 

 12. 

Krishna takes a life insurance policy forArjun. Which of following statement best describes the principle of insurable interest
a.
Arjun declares all his liabilities
c.
Arjun owes money from Krishna
b.
Arjun is okierthan Krishna
d.
Krishna suffers financial loss in case of death ofArjun
 

 13. 

Before submitting the proposal. f= i m to company, Shyam informed his agent that he is not sure whether he can pay premium for 15 yrs. How it affects the contract
a.
Consideration
c.
Consensus ad idem
b.
Capacity
d.
Offer and acceptance:
 

 14. 

To prove one's identity in accordance with KYC process, the customer needs to submit following documents excluding
a.
An age proof
c.
An address proof
b.
An identity proof
d.
Education proof
 

 15. 

A policyholder takes a insurance contract for 30 yrs and threduces after25 yrs. What could be the likely reason
a.
Bonus not accumulated
c.
Policy made paid up
b.
Age proof was wrong substantially
d.
ltisaULlP
 

 16. 

Two People with same term, one person had more premium than others because
a.
Married
c.
Health deterioration
b.
Wife Younger
d.
Dirrerence in caste
 

 17. 

Till what period is the interim bonus valid
a.
as long as the policy is inforce
c.
Till the next validation date
b.
Till the next declaration of bonus
d.
none of the above
 

 18. 

While calculating HLV with future income, number of years work, increments in salary what is also to be taken in to accouni
a.
Inflation
c.
Discount rate
b.
Interest
d.
Compounding
 

 19. 

Income replacement methods equates human life value (HLV) to
a.
Future value of present earning
c.
Present value of previous earning
b.
Present value of future earning
d.
Future value of previous earning
 

 20. 

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
a.
Term Plan
c.
Convertible plan
b.
Endowment plan
d.
ULIP
 

 21. 

Which plan will suits a customer need who is just looking for protection of family.
a.
Term Insurance
c.
Endowment
b.
ULIP
d.
Moneyback
 

 22. 

If 50000 is invested in Single Premium ULIP than what will be the minimum SA applicable?
a.
50000
c.
62500
b.
75000
d.
100000
 

 23. 

Without submitting any form of claim a life insurance policy holder received payments of survival then what type of policy he is holding
a.
ULI P
c.
Money back
b.
Tem
d.
Health
 

 24. 

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

 25. 

Manoj a 26 year old is having 7 years old son. What will happen to his monthly disposable income after 15 years of job
a.
Marginally decrease
c.
less than after 15 years
b.
Significantly increase
d.
will remain same
 

 26. 

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

 27. 

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
 

 28. 

A person retiring within 3 months need return as pension. What kind of investment plan he need to choose.
a.
Immediate Annuity
c.
Anticipated Endowment
b.
Deferred Annuity
d.
ULIP
 

 29. 

In rising life expectancy the need for pension policy is increasing as retirement planning is
a.
Less expensive
c.
More necessary
b.
Less Transparent
d.
Tax efficient
 

 30. 

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
 

 31. 

Which of following is not a feature of WOP rider
a.
The rider waives future premiums in the event of disability or death of policy holder
c.
The main strength of WOP is the payment of full sum assured
b.
This rider is ideal for helping to prevent a policy lapsing duto non-payment of premiums-due to death or disability
d.
WOP rider can be offered with all plans
 

 32. 

Gaurav bought an endowment plan for 20 yrs of 10 lacADB rider, die in road accident after 10th year. How much møfli claimant would be paid
a.
10 lac
c.
30 lac
b.
20 lac
d.
5lac
 

 33. 

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

 34. 

Manish and Manisha is a married couple with one child. plan for savings/child education/marriage and their retire and protection of income. Which should be their lowest priori
a.
Marriage
c.
Education
b.
Savings
d.
Protection
 

 35. 

Mr. Raj is married and having 2 children which plan can he that can cover his whole family
a.
Health insurance
c.
Life insurance
b.
Family floater
d.
Retirement
 

 36. 

Need analysis involves identifying
a.
Financial provision to meet predictable and unpredictable needs
c.
Existing insurance plans
b.
Capacity to pay the premiums in future
d.
Family & employment details
 

 37. 

In which of the following case there is no defined retirement age?
a.
Public sector employees
c.
Professional & businessmen
b.
Pvt. sector employees
d.
All of above
 

 38. 

While recommending a solution to the client, the advisor should, establish the link between, client needs and
a.
Advisor need
c.
Client income
b.
Product features
d.
Client expenditure
 

 39. 

Mr. Alexzender has been approached by the agent and on fact finding the score is 3, this represents
a.
Low risktaking
c.
Moderate risk taking
b.
nigh nsktaking
d.
Zero risk taking
 

 40. 

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
 

 41. 

A satisfied client will lead to
a.
Word of mouth publicity for the agent
c.
More reference generation for the agent
b.
Chances of up selling
d.
All the above
 

 42. 

Which change to a client's circumstances that may generate need to reviewtheirfinanàial planning?
a.
Marriage and birth of a child
c.
Moving house
b.
Change of job
d.
All of above
 

 43. 

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
 

 44. 

A claim was paid in a policy and it was advertised In the newspaper also:This indicates that the policy was
a.
ltwas assigned
c.
it was lost
b.
It was paid up
d.
It was surrendered
 

 45. 

According to IRDA Act 1999 central govt involve insurance industry over
a.
Policy matter
c.
Promotional activities
b.
Complex tech. issues
d.
Licencingof insurance companies
 

 46. 

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.
 

 47. 

What is the free look time available after receiving policy Documents?
a.
30
c.
20
b.
15
d.
45
 

 48. 

What is the name of department that is established by IRDA to deal with customer complaint?
a.
Customer complaint department (CCD)
c.
Consumer affair department (CAD)
b.
Customer grievance department (CGD)
d.
Consumer protection department (GPO)
 

 49. 

Complaint body other than IRDA grievance redress forum and COPA
a.
Ombudsman
c.
Insurance association
b.
Ill
d.
FERA
 

 50. 

What is NOT the part of prospectus
a.
Extent of insurance cover
c.
Premiums on riders
b.
Commission to be paid
d.
Exceptions and conditions of cover
 



 
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