IC 33 Exam Mock Test 5


 
Name: 
 


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

 1. 

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

 2. 

Basic principle of indemnity is that policyholder be restricted from
a.
Profiting from insurance
c.
Insuring existing losses
b.
Paying excessively for cover
d.
Making false claim
 

 3. 

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

 4. 

A claim intimation leads to the publishing of an advertisement in the newspaper. This means
a.
Policy is assigned
c.
Policy is in lien
b.
Policy document is lost
d.
Any one of the above
 

 5. 

The risk commencement date of policy is
a.
After the U/W process
c.
Policy is dispatched
b.
Premium receipted
d.
policy is received
 

 6. 

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
 

 7. 

A policy document for a money-back policy includes the statement ‘the proposal and declaration signed by the proposer form the basis of the contract’. In which main section of the policy document will this normally appear?
a.
Attestation.
c.
Preamble.
b.
Operative clause.
d.
Terms and conditions.
 

 8. 

If age of policyholder increases, find impact of net premium In case the sum assured is same
a.
Itrises
c.
It remain constant
b.
It falls
d.
Gross premium increasei
 

 9. 

Where insurable interest is missing
a.
Surety-cosurety
c.
Husband-wife
b.
Employee-errployer
d.
Brother-sister
 

 10. 

Saurabh has taken an endowment policy of 15 yrs with insurance company. He paid premium for4 yrs and could not premium for 5th, 6th yrs. In 7th yrs he approaches the comp to renew the policy. Which option will apply
a.
Policy will be renewed on existing term & condition
c.
Policy maybe renewed on different terms/conditions
b.
Saurabh cannot renew the policy
d.
Saurabh can renew the policy on approval of insurer
 

 11. 

Alva has taken a policy of 15 yrs and paid premium for 9 yrs. Dueto losing his job he failed is pay premium further. What would be best solution
a.
Converting policy to term policy
c.
Converting policy to money back
b.
Converting policy to paid up
d.
Converting policy to whole life
 

 12. 

Zainab takes insurance in the life of Jasmeet. Zainab will be called as
a.
Proposer
c.
Appointee
b.
Nominee
d.
Trust
 

 13. 

What is done in the free look in period or cooling off period
a.
Returning policy by speed post
c.
Not issuing receipt
b.
Delaying the payment
d.
Withdrawing from contract within 15 days
 

 14. 

TWO FRIENDS HAVE TAKEN SAME POLICY BUT THEIR PREMIUMS ARE DIFFERENT WHY?
a.
AGE
c.
SA
b.
MEDICAL
d.
ALL THE ABOVE
 

 15. 

A group of people insured in a policy . They belong to which category
a.
Same Age
c.
Family
b.
Employees
d.
Acc to height
 

 16. 

What tax rate if any will be applicable to a life insurance polic holder for the maturity proceeds of a Rs. 5000 life insuran policy
a.
NIL
c.
0.2
b.
0.1
d.
0.3
 

 17. 

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
 

 18. 

If insured gets two advance payment in 5 yrs and in mat gets rest of sum assured what type of policy it is
a.
Money back policy
c.
Term plan
b.
Corivertible plai
d.
Endowmentpol
 

 19. 

Low risk product give
a.
High return
c.
Moderate returns
b.
Low return
d.
Good returns
 

 20. 

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
 

 21. 

What period of time a client has to be invested to get tax benefit under postal scheme?
a.
10 Years
c.
6 years
b.
8 years
d.
5 years
 

 22. 

Investing in ULIP plan exempts a maximum up to what limit fol( income tax
a.
50000
c.
100000
b.
75000
d.
200000
 

 23. 

The central bank has recently announced the decrease interest rate. The prices of bonds are
a.
Likely to increase
c.
Will fluctuate
b.
Likely to decrease
d.
No change is likely
 

 24. 

Critical illness rider was taken and the rider benefit has been claimed , the rider benefit now gets
a.
Reduced the  base SA
c.
continues as it is
b.
terminated
d.
will discontinue for 1 months
 

 25. 

How is No Claim Bonus is given in a Health Insurance Policy
a.
By way of Cash Discount
c.
Free Renewbality
b.
Discount in Renewal Premium
d.
Free increase in Sum Assured
 

 26. 

An individual need a lump sum at the age of retirement, the amount he need to invest annually for the goal will depend on
a.
the deferment period
c.
investment tools used for investment
b.
amount which required
d.
All of the above
 

 27. 

Mr.Sumesh takes a policy and pays premium of 20000 with a sum assured of 300000, what will be the tax implication on his maturity amount
a.
Fully taxable
c.
0.2
b.
0.1
d.
Tax fully exempted
 

 28. 

A invested money in Sr Citizen scheme. What is the tax benefit he receives?
a.
Amt will be deducted from taxable income upto 1 lakh
c.
10% of the amt will be deducted
b.
Rs 1000 will be deducted
d.
20% of the amt will be deducted
 

 29. 

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
 

 30. 

Samir is married and he has only one partner, with dependant parents and no child, which should be his priority
a.
income protection
c.
investment efficiency
b.
inheritance planning
d.
long term savings
 

 31. 

Vijay aged 30 years and married is the sole bread winner for his family. He is saving enough with banks. As an agent which need, you priorities first?
a.
Retirement need
c.
Financial security need
b.
Tax planning need
d.
Assets Building need
 

 32. 

The concept of need based selling involves
a.
Selling what company wish to sell
c.
Selling what customer requirement is
b.
Selling what advisor wish to sell
d.
Selling what lRDAwants company to sell.
 

 33. 

Mr. Prasanth 25 Age Govt: job, Bachelor - how many years policy can be given
a.
Short term
c.
As per his goal
b.
long term
d.
both b & c
 

 34. 

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
 

 35. 

If Sales Target get reduced then Churning will
a.
Increase
c.
Will not affect
b.
Decrease
d.
Partially
 

 36. 

Churning is bad, based on which aspect
a.
Agents earn lower commission on churning
c.
Policy holder suffer due to surrender charges and benefits
b.
Policyholder gets more benefits
d.
Insurance companies get good branding
 

 37. 

What ever riding criteria an insurance, agent consider whil proposing a solution
a.
Risk
c.
Flexibility
b.
Suitability
d.
Cost
 

 38. 

After undertaking financial planning exercise, the prospective client said that he does not have funds for investments. To resolve this query which skill of an agent would be tested?
a.
Objection handling skills
c.
Communication skills
b.
Listening skill
d.
Client information gathering skill
 

 39. 

What key benefit high persistency ratios have on insurafl advisor?
a.
High renewal income
c.
Fewer client oases
b.
Less renewal income
d.
Unsatisfieduituis
 

 40. 

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
 

 41. 

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
 

 42. 

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
 

 43. 

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

 44. 

Married Woman Property Act Policy is taken out by a married man on whose life
a.
His wife
c.
Trustee
b.
His children
d.
None of above
 

 45. 

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

 46. 

If I RDA is unable to discharge its functions or duties, central govt.
a.
Has power to supersede the IRDAby issuing notification
c.
Has power to supersede the IRDA by issuing draft
b.
Has power to supersede the IRDA by issuing a bill in parliament
d.
Can make changes inlRDAlaw
 

 47. 

Mr. Sunil is doing premium calculation for his company, as per which authority is his profession related to
a.
Council of actuaries
c.
Insurance institute ofIndia
b.
Insurance council of India
d.
IRDA
 

 48. 

Raju is a certified licence holder. Under what circumstance he needs to hold his certified licence with him that is issued by IRDA
a.
Under all circumstance
c.
When he represents himself to another insurer
b.
When he sells term insurance
d.
When he sells pension policies
 

 49. 

After doing need analysis the client is advised to take certain product but he refused. According to ethical business practice whatwill agent do
a.
Enquire about refusal from client
c.
Pass onto superior
b.
Suggestan alternate plan
d.
Pass onto other agent
 

 50. 

Ombudsman passes an award within which time
a.
1 month
c.
3 month
b.
2 month
d.
6 month
 



 
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