IC 33 Exam Mock Test 3


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

 1. 

Insurance works on the principle of
a.
Sharing
c.
Large numbers
b.
Probabilities
d.
All of the above
 

 2. 

Life insurance is arranged because
a.
some one may die
c.
Of both the above reasons
b.
Some one may live
d.
Of neither of the above reasons
 

 3. 

Vishakha is keen to join insurance industry and takes interest in product's premium. She is suitable for which department
a.
Underwriter
c.
Claim Deptt.
b.
Actuary
d.
AcountDeptt.
 

 4. 

Relation between insurer and Broker means
a.
Client represents the broker and the insurer remunerate the broker
c.
Broker represent the client and insurer remunerate the broker
b.
Insurer represent both client and broker remuneration
d.
Brokerserve the client
 

 5. 

E-Sales lefers to sales of insurance product through
a.
Insurance broker
c.
Individual agent
b.
Bancassurance
d.
Internet
 

 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. 

What is the death benefit if the person has multiple sums assured under different policies?
a.
Sum Assured will be paid as total of all insurance plans
c.
No SA will be Paid.
b.
Sum Assured will be paid for only one plan with highest SA
d.
None of the above
 

 8. 

a Policy holder takes a insurance contract for 30 years and the SA reduces after 25 years what could be  the likely reason
a.
No bonus accumulated 
c.
Policy has become paid up 
b.
Age proof was substantially wrong
d.
Its a ULIP Plan
 

 9. 

Insurable interest on one's own life limited upto
a.
20 times of Gross Annual income
c.
Assets
b.
Liabilities
d.
Unlimited
 

 10. 

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
 

 11. 

If found later that insurable interest is missing the contract is
a.
Expired
c.
Void
b.
Reviewed
d.
Invalid
 

 12. 

Certificate from village panchayat
a.
Will be considered as standard age proof
c.
Will not be accepted
b.
Will be considered as nonstandard age proof
d.
Will be accepted
 

 13. 

Mrs. Sweta has taken a loan from her policy. She could-not back the loan nor she paid premium for a very long time. What happen to her policy?
a.
Policy will be surrender by insurer
c.
Policy will be surrender by company
b.
Policy will be surrender by nominee
d.
Policy will be surrender by heir
 

 14. 

While underwriting Mr. X proposal form it is found out that there is a criminal case against him for fraudulent activities. What type of risk would this fall in
a.
Fundamental risk
c.
Moral Hazard
b.
Physical hazard
d.
No Risk
 

 15. 

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
 

 16. 

As per the norms of risk assessment by U/W both the parents of a policy holder died in their early 30s due to Heart disease, what is the risk assessed
a.
Moral Hazard
c.
Occupational Hazard
b.
Medical Hazard
d.
Physical Hazard
 

 17. 

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

 18. 

Within how many days will the underwriter needs to inform policyholder regarding the status of the policy?
a.
10 days
c.
30 days
b.
15 days
d.
45 days
 

 19. 

What is the main source of insurance company to get information of proposer
a.
Advertisement
c.
Conducting Interview
b.
Proposal form
d.
Telephonic conversation
 

 20. 

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

 21. 

Ram has invested Rs. 5000 in PPF and Rs. 1 lac in life insuranc premium in which he will get maximum tax benefit
a.
Life insurance premium
c.
50% on each
b.
PPF
d.
95% on life insurance and 5% on PPF
 

 22. 

A policy holder can pay the premium of Rs.. 5 lac and what COUI: I be the maximum tax efficiency he is entitle
a.
Rs. 5 lac
c.
Rs. 1 lac
b.
Rs. 50,000
d.
Rs. 3 lac
 

 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. 

De tarrification is a process by which pricing of insurance
a.
Rises
c.
Reaches at a level as per industry trends
b.
Decreases
d.
Insurance can price their product on their SE experiences
 

 25. 

Two Basic elements of most life insurance plans are
a.
Guaranteed benefit and Non guaranteed benefits
c.
Death benefit and maturity benefit
b.
Interest Benefit and Bonus benefit
d.
Bonus benefit and tax benefit
 

 26. 

In money back plan the nomination can be done
a.
Outset stage only
c.
Outset and policy anniversary only
b.
Policy anniversary only
d.
Anytime
 

 27. 

aditya wants to take home loan and his monthly take home is 80,000 what as a best practice should be the maximum EMI
a.
20000
c.
28000
b.
24000
d.
32000
 

 28. 

Ramesh has invested in Post office Monthly Income Scheme. The interest rate was set at 6%. What will be the effect  of rate till the maturity.
a.
Increase gradually
c.
Remain Constant
b.
Decrease gradually
d.
Change as per market fluctuation
 

 29. 

In which of the following bank pays the interest on deposits fu on monthly quarterly/half yearly/yearly basis as chosen depositorfund.
a.
Saving Deposit
c.
Traditional Deposit
b.
Cumulative Deposit
d.
Fixed Deposit
 

 30. 

Mr. Rajgopal has invested some money. He has been informed clearly about the tenure, interest rate and method of payment of interest at the inception of the investment itself. His investment may be in
a.
Life insurance
c.
Share
b.
Mutual fund
d.
Bank deposit
 

 31. 

commutation is a feature of which type of policy
a.
annuity
c.
pure endowment policy
b.
joint life policy
d.
policy of another person
 

 32. 

Mr.Ramesh invested  Rs:50000 in pension policy, what is the percentage he can avail as exemption in Income tax.
a.
0.3333
c.
1
b.
Pension plan is not eligible for tax exemption
d.
will depend on his income slab
 

 33. 

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

 34. 

While calculating the expected returns from investment and savings an individual should make provisions for
a.
Taxationonly
c.
Taxation & Inflation both
b.
Inflation only
d.
No provision is required
 

 35. 

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
 

 36. 

Fact Find Process helps to
a.
Ensure a sale is achieved
c.
Create an audit trail for future complaints
b.
Identify Client need
d.
Provide regulatory body about agents data base
 

 37. 

A 38 year old married with 2 children, her husband dies and left huge legacy behind. What should be top priority?
a.
estate plan
c.
pension
b.
loan protection
d.
wealth creation
 

 38. 

To understand mental stateof client for investment what to do
a.
Fact finding
c.
Consulting family of client
b.
Consulting clients parent
d.
Reviewing his existing investment
 

 39. 

Churning is considered bad for a customer. Why is it?
a.
Impact of charges on customer fund
c.
Both a & b
b.
Higher commission to advisor
d.
Neither a nor b
 

 40. 

What is the reason , that an advisor is getting more than 35% Commission in the 1st Year?
a.
Not possible
c.
Mis-selling
b.
Alternate channel
d.
Higher charge products
 

 41. 

What is the death benefit if the person has multiple sums assured under different policies?
a.
Death Benefit will be the amount with highest SA policy
c.
Sum of all SA in different policies
b.
No amount will be paid
d.
Not more than 20lacs
 

 42. 

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
 

 43. 

No of days in which the death claim has to be paid after the necessary documents have been received
a.
15 days
c.
45 days
b.
30 days
d.
60 days
 

 44. 

Mr. Sham had taken a term plan in 2008 He died of cancer 2010. lnvéstigàtioA 'about ,his deathrevealed' that he v detected .cancerin 2006.' What will happen to his death claim
a.
Claim will be rejected
c.
Claim will be settled as he died in 2010
b.
Claim will be settled as can cer was not detected in 2006
d.
Claim willbedelayed
 

 45. 

As perAML regulation, it allows cash premiums not over than
a.
20000
c.
5000
b.
25000
d.
50000
 

 46. 

Baring on which criteria the qualification of agent is determined?
a.
Address of the agent
c.
Health Status
b.
Domicile status
d.
Bank Status
 

 47. 

Mr. Raghav is an expert in fact finding Mr. Raghav helps his brother in his job by sharing the information of his clients after the fact finding his does to procure insurance. What will be the outcome?
a.
Rahav will be promoted to next level
c.
Rahav licence will be cancelled
b.
Rahav will be terminated
d.
Customer will complaint to ombudsman
 

 48. 

Raju is a certified license holder under what circumstances he needs to hold his certified license with him that is issued by IRDA
a.
when he sells term insurance
c.
when he sells pension policies
b.
when he represents himself as another insurer
d.
under all circumstances
 

 49. 

Insurance companies are required to honour the awards passed by the insurance ombudsman within how many days
a.
10 days
c.
20 days
b.
15 days
d.
25 days
 

 50. 

How many ombudsman officesare located in India
a.
10
c.
14
b.
12
d.
15
 



 
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