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Question Sanjeev is an insurance expert who has rich experience in determining premium levels for product, what is his profile like The Non Government organizations(NGO) helps the insurance industry immensely in Investment by foreign direct investors in to Insurance co's is restricted to Which market does the Micro Insurance Concentrate on ? What facility do the insurer use to cover Risk beyond their Limits ? what is the max level under which micro insurance can be done Who is the customer of a Re insurer Insurance company transfers the insurance which cannot bear by them to What is the main objective of taking the life insurance policy What is the maximum sum assured under a micro insurance Varun wishes to pursue a career in insurance and wishes to be in a department which calculates the level of premium. In which department should he join?

Ans Option 1 an actuary Promotional activities 12% People with large families Re Insurance 5000 High Networth Individual Bancassurance Tax benefit 10000 Actuary

Ans Option 2 loss adjuster Drafting new regulations 25% People with Low Income Banca assurance 25000 Insurance Companies Reinsurance Savings 25000 Underwriter The client represent the broker and the insurer remunerate the broker Life Insure Who work for customers Cashed in for investment into other assets Corporate agent Broker Insured

Ans Option 3 risk manager Linking buyers and sellers 40% Government Employees NGO 50000 Licenced Insurance Agents TPAs Investment 50000 Claim Department Insurer represent both client and broker remuneration Reinsurer Intermediaries NA Bank NGO Policy Holder

Ans Option 4 underwriter Linking third party administrators 26% people living in Metro cities RBI 1 lac Non Government Organisation Actuaries Protection 100000 Accounts Broker only service the client Any Insurer Who works for their own interest. NA Broker Bank Insured person to obtain loan as when required to meet financial obligations Interest yield and variable income Assured transactions 4. Company Based Selling. 4. Health and Saving Insurance Markets 4. None of the above. 4. through internet 4. market values of assets 4. Death is the solution. 4. At the time when Advisor takes the decision 4. The life of the nominee 4. D. An authorized agent to act on behalf of the legal company

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Insurance broker represent the client According to Insurance Brokers Association of India, what is the most and the insurer remunerate the broker appropriate relationship between Insurer and Broker? If a client needs Mediclaim to cover health insurance which insurer he Non life insurer needs to apply. Insurance agents are Any assets, which are no longer suitable or are earning fewer returns than expected, should be If a client wants to compare between all financial products then the best person he can approach is If the customer wants to seek information about all products, then he can avail the services of To identify suitable products their main features and their tax treatments is the role of: Who work only for insurance company Reviewed Individual agent Agent Agent

1 19 20 21 22 1 1 1 1 23 24 25 26 27 1 1 1 1 1 28 29 1 What is Bancassurance? Which of the following do not include the channel of indirect marketing? The business of Insurance is connected with................ Human beings need life insurance because.................. The timing of death is uncertain, so when one should take life insurance? Insurance Protects which of the following? The main purpose of buying an insurance policy normally is The basic elements of life insurance are: Transactions of sale of life insurance products to the insurable clients are viewed in the Insurance market mostly as A Professional insurance market carries.. Insurance Market divided into

to develop the habit of savings

to obtain Income Tax benefits

for protection of financial security

Accident benefit and riders. Sales transactions 1. Need Based Selling 1. Endowment and Money Back Insurance 1. Giving insurance policies to Banks. 1. individual agents 1. physical values of assets 1. death is certain 1. At the time of uncertainty 1. The life of the person paying compensation 1. A legal person to act on behalf of the re-insurer

Pension and monthly income. Relationship transactions 2. Product Based Selling 2. Life and General (non-life) Insurance 2. Selling insurance policies through Banks. 2. bancassurance 2. economic values of assets 2. death is uncertain 2. At an early age 2. The risk retained person 's family 2. B.A legal person to act on behalf of the insurer

Death cover and maturity benefit. Monetary transactions 3. Commission Based Selling 3. Government and Private Insurance Markets 3. Giving guarantee to policies by Banks. 3. insurance brokers 3. metaphysical values of assets 3. the timing of death is uncertain 3. Anytime in life 3. The financial goal of the insured 3. C.A legal person to act on behalf of the contract

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Agent who is a licensed intermediary is actually is ?

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E-sales refers to sales of insurance products through Insurance business is classified into three main types: lung cancer and smoking . The type of risk that can be insured against is

1. Insurance brokers. 1. Life, Non life, Micro Insurance. lung cancer is peril and smoking is moral hazard Speculative Risk The premium collected & deposited in a pool Economic risk Pure risk Calculate the premium Physical

2. Bancassurance. 2. Life, Non Life, Miscellaneous smoking is peril and lung cancer is hazard Pure Risk All similar risks are pooled together Speculative risk Financial risk Increase the profitability Moral

3. Individual agents. 3. Life, Non life, Re-insurance. Death is certain Pure & Speculative risk Premium is pool to make claims Financial risk Particular risk Ascertain the death ratio Occupation

4. Internet. 4.Life, Health, Micro Insurance Is occupational hazard Non Financial Risk Contribution of insurance company Insurable risk Physical hazard Declare the bonus NA Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout Randomness As per company policy

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Pooling of risk in insurance means Pure risk is classified under The consequences of these risks which will affect specific individuals or local communities in nature is called as Law of Large number helps the insures to A person with a criminal background due to Financial fraud would come under which hazard

Perils are medical factors which Perils are risks that policyholders will die influence the risk of dying and hazards before a specified date and hazards are factors are lifestyle activities which influence which could influence that risk. the risk of dying. How are perils and hazards normally distinguished under term insurance policies? Law of large numbers is worked out by which of the following? With pooling of risks an insurance company pools the premium collected from several individuals to insure them against similar risks. At what circumstances will the insurance companies pool the risk of a life insurance and health insurance together? In life insurance industry which mechanism operates so as to enable the individuals to reduce the impact of risks Law of large numbers help in calculating the Which is the best option to manage risk? Vinay doesnt want to take insurance on himself. He feels that his family will survive with the funds available in the bank and monthly rentals received from village. This comes under Risk ______ Insurance is a mechanism through which risk of an individual can normally be

Perils are factors which affect the risk being insured and hazards are the size of the risk being insured.

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Pooling of risk

Maintaining insurable interest

With utmost good faith

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Under no circumstances

Under conditions of the reinsurer

As directed by actuary

Pooling of risk severity of risk Retain Transfer

Transfer of risk physical hazard Transfer Control

Prevention of risk moral hazard Avoid Retaining

Sharing of risk Probability of risk None Avoidance

transferred

prevented

avoided

reduced Peril is the event, Risk is the likely occurrence of the event and the Hazard increases the chances of happening of the event. the speculative risks 4. Only Non-life insurance 4. All of the above. 4. Pooling of Risk 4. All of the above. 4. Risk tolerance 4. A teacher working in a primary school. 4. mathematical data

2 In the context of Insurance terminology, how the meaning of Peril, Risk and Hazard is best described? Pooling of risks is one of the fundamental principles of insurance where the Insurers pool the premium collected from Pooling of insurance applies to The Risk contains. Grouping the similar risks by Insurance Company is called as. The function of Insurance works on.. Mr. Mahesh is a software engineer. He has taken a term insurance for Rs. 30,000,00/- for 30 years. This is an example for----------------Which of the following can be an example of moral hazard? Life insurance the risk is determined on the basis of ..........

Peril, Risk and Hazard are of the same meaning

Peril is the event, Risk is the loss of event and Peril is the event, Risk is the cause of event Hazard is the wrongful even and the Hazard is an event of dangerous nature

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all types of financial risks 1. all types insurance 1. Peril and Hazard 1. Grouping of Risk 1. Risk Transfer 1. Risk retention

the homogeneous risks 2. All types of insurance except Motor insurance 2. Level 2. Risk Grading 2. Risk avoid 2. Risk transfer

the heterogeneous risks 3. Only life insurance 3. Uncertainty 3. Risk Assessment 3. Risk retention. 3. Risk avoidance

1. a family history of heart disease 1. future data

2. a person working in a chemical factory 2. past data

3. a person consuming alcohol 3. statistical data

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Which one of the following is possible in retaining the risk? On 6th August there was a typhoon. Mr.Augustin who had insurance died in typhoon. Now how will the insurance company will categories this particular risk ? Life insurance company determine the level of risk based on Ram works in a Fire cracker factory. He stocks the cracker in his house. He runs which type of risk. In Insurance terms, pooling of risk is An Insurance company pools the premium collected from several Individual to insure them against similar risk is called: Which of the following Risk is associated with those events which are not in control of an individual and also no possibility of making profit: which of the following refres to specific event which might cause a loss ... Harish takes a life insurance policy for Ramesh. Which of the following statement best describes the principle of Insurable Interest. what is the min age to enter into the contract of insurance In a whole life plan - The policyholider's responsibility to give disclosure

1. Retaining the ownership in the policy

2. Not possible as life has many risks.

3.Is possible by transferring risk to the policy holder

4.Is possible by Reinsuring oneself 4. Under the category of Risk Transfer 4. Targeted bonus rates. 4. Fundamental. 4. Using the same pool for paying claims of life insurance. 4. Sharing of Risk 4. Insurable Risk 4. Uncertinity

1. Under the category of Pure risk

2. Under the category of peril risk

3. Under the category of particular risk

1. Future expenses. 1. Speculative. 1. Using the same pool for paying claims of car & life insurance. 1. Pure Risk 1. Pure Risk. 1. Peril

2. Claim experiences. 2. Particular.

3. Present expenses. 3. Financial.

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2. Using different pool for paying claims of life 3. Using the same pool for paying claims of life insurance. & house insurance. 2. Pooling of Risk 2. Particular Risk. 2. Hazard 3. Insuraable Risk 3. Financial Risk. 3. Physical hazards

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Ramesh declares all his liabilities 16 at the beginning of the contract Every time premium is paid

Principle of utmost good faith will operate in existing policy Both the parties to a contract must agree and understand the same thing and in the same sense which is called In case of life insurance, Insurable interest must exist Group Insurance can be taken in following relationship What amount of insurable interest does an individual have in his own life With reference to the principle of indemnity a life insurance policy is a. If Insurable interest does not exists at the time of inception of the life insurance policy then, life insurance contract is If a contract is signed by a 15 years old boy, this contract will be 1. If the employer has insurable interest in the life of an employee, what kind of policy is this? The concept of indemnity is based on the key principle that policyholders should be prevented from Employee has insurable interest in the life of their employer to the extent of Mr Rohan takes an insurance policy due to heavy Debt on his business with an intention of committing suicide. This is an example of the following Feature of a valid contract An insurer can invoke indisputability clause in case of death only in A proposer shows his age lesser than his actual age. This will be termed as Mr. Mehra wants to insure his wife. Previously his proposal was rejected by another company, but this time he submits the proposal form without showing this to a new company. This is In which type of insurance Insurable Interest exists at the time of claim?

Harish suffers financial loss Ramesh is elder than Harish Ramesh owes money form Harish incase of death of Ramesh 18 20 21 beginning of through out the contract Revival stage renewal If the insured If the insured person falls sick and is admitted If the policy has lapsed and it has to be revived person changes his to hospital job Legality of an object Not needed Husband-wife 50,000 Indemnity contract. Invalid Invalid B. Keyman Insurance C. Consensus ad idem At the time of claim family members Up to the sum assured taken in the plan Value contract. Valid Voidable Partnership Insurance Acceptance Any time during the contract society members Unlimited Major life contract Null & voidable Valid D. Debtor Insurance Profiting from insurance. Till Gratuity Offer and acceptance NA NA Innocent misrepresentation of material facts Travel Insurance Emotional relationship between the Proposer and the Life assured NA

Consideration At inception of policy employee- employer 20,000 Insurance contract. Voidable Null and void A. Surety insurance

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Insuring existing losses. Yearly Salary Capacity to Contract Non payment of due premium Breach of utmost good faith Non-disclosure of material facts Liability Insurance

Making false insurance claims. Monthly Salary Legality of object Breach of duty of disclosure of material facts Breach of trust Concealment of material facts Marine Insurance

Paying excessively for insurance cover. Probation Period Capability of performance NA NA Fraudulent misrepresentation of material facts Motor Insurance

3:1 84 85 3:1 A proposal of life insurance is not accepted in the absence of Insurable interest which mainly depends on the Principle of utmost good faith is expected for max up to which stage

blood relation between the Proposer and the Life assured

Proximity of relationship between the Proposal and the Life assured

Financial relationship between the Proposer and the Life assured

Before the contract is concluded

NA

NA

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A contract comes into existence when

1. One party makes an offer which the other party accepts unconditionally.

2. One party makes an offer which the other party put extra conditions.

4. One party makes 3. One party makes an offer where other party an offer which the gives counter offer. other party receives the offer.

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Mr. Kumars wife is suffering from blood cancer. Doctors lost their hope on her live. Mr. Kumar would like to take Life Insurance policy on wifes name in order to get monitory benefit. Insurance company rejects this proposal on the grounds of. Under this situation may leads to breach of the duty of utmost good faith. The principle of utmost good faith is not applicable to Where do you not find insurable interest in the following options......... The principle of utmost good faith applies to........... Mr.Akash filled the proposal form but before submitting to the company he discussed with the agent that he is not sure whether he can pay for 15 years . This attitude affects which part of the contract? Mr.Karan who has to go to abroad for 6 months on an official work decides to leave his car with his friend Mr. Jim. What will be the validity of the insurable interest in this case ? Mr. Josh was filling the proposal form but as his mother was sitting beside him, even though he drinks and smokes he ticked NO in smoking & drinking column of proposal form. This indicates ? A contract exists between insurer and proposer when Rakesh purchased a life insurance policy. While writing a proposal form he hide that he practices mountaineering. Sadly he died in an accident while climbing Mount Everest. The insurers rejected the claim.What is the reason for rejection? Shamsher has a health insurance policy of ` 1, 00,000 individually and from his company for ` 2, 00,000. He falls sick and got hospitalized. His hospital bill ran to ` 50,000. He claimed this amount from his individual policy. Also, he placed the request with his company for group policy claim, which was rejected. The reason for rejection is. Life Insurance also known as:

1. Anti Money Laundry

2. Legality of object or purpose

3. Capacity of paying future premiums.

4. All of the above

1. Non disclosure of material facts. 1. Facts of common knowledge 1. surety-co surety 1. only insurers

2. Concealment of a material fact 2. Facts of law 2. employee-employer 2. only proposer

3. Fraudulent misrepresentation of facts. 3. Facts those are not material. 3. husband-wife 3. both insurers and proposer

4. All of the above. 4. All of the above. 4. brother-sister 4. neither insures nor proposer 4. Offer and Acceptance in the contract 4. The insurable interest between the car and Jim is valid until Karans return 4. He had done an innocent misrepresentation 4. An insurer has made another proposal. 4. Non-Disclosure.

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1. Consideration in the contract

2. Capacity to contract

3. Consensus ad idem

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1. The insurable interest between the car and jim is valid for 6 months

2. The insurable interest between the car and karan is valid for 6 months

3. The insurable interest between the car and karan is valid until he owns it

1. He has breached the non-disclosure 2. He has breached the company by concealing 3. He has breached the company by fraudulent of the fact the facts information 1. A proposal has been accepted by insurer. 2. A policy document has been stamped by insurer. 3. A policy document has been received by the policyholder.

1. Innocent misrepresentation.

2. Fraudulent misrepresentation.

3. Concealment.

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1. Indemnity contract.

2. Value contract.

3. Deemed contract.

4. Rolling contract.

1. Value Contract. 1. Plan offer insurance coverage for two person in one policy

2. Indemnity

3. Commercial Contract

4. Speculative 4. A joint life policy may cover a partner in business under one policy. Only Non-life insurance 30 days from the date of receipt of the policy document Absolute & Conditional Financial assessment Agent accepts money Endorsement

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Which option is not correct with regard to joint life insurance plan?

2. This plan is ideal for brother & sister.

3. Each life will be underwritten separately.

Pooling of insurance applies to

all types insurance 15 days from the date of receipt of the policy document Absolute SA Submission of proposal form Operative Clause

All types of insurance except Motor insurance 20 days from the date of receipt of the policy document Term assignment Risk assessment FPR issued Preamble

Only life insurance 25 days from the date of receipt of the policy document Conditional Identity verification Policy issued Proviso

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The proposer can withdraw from the contract, if they disagree with the terms and conditions of the Policy, within a free look-in period of Types of assignment why does an insurer insist on age proof document . To assess Mr A submitted the proposal form . When will the risk begins for the company? The obligation of the insurer for the whole life policy is mentioned in

Asvath is illiterate. He wants to take policy and surya is a friend of his 3:2 help him is answering questions and answers and also fills proposal . In addition to this requirement is 106 For Logging a Policy , a person gives Baptism CERTIFICATE & Ration Card . What is this ? To be a valid contract ,the declaration is necessary in which document Mr. ABC buying Term insurance policy, insurer should mention Ombudsman address in which part of policy document? Zainab takes insurance in the life of Jasmeet. Zainab will be called as Mr.Suresh dies one day before the grace period without paying the premium, what is th claim payable Loan is available for a policy in which there is a feature of Appointee's role how many nominees can be attached to a term insurance policy if a policy has two nominee mentioned what should be the Min allocation a Policy holder takes a insurance contract for 30 years and the SA reduces after 25 years what could be the likely reason A life insurance policy can only be made paid up if what particular policy feature exists? Reasons for surrender of the policy If a life insurance policy is issued with a lien, it will be mention in Available Loan amount under a life Insurance policy is generally based on If a customer has mentioned he is a drinker in the proposal form, the insurance company can exclude this hazard and mention it in which part of the policy document? Mr. shailsh has an endowment policy with 30 years policy term, he has paid for eight years. The sum assured Rs.8,00,000/- and accumulated bonus Rs.60,000/-. What is the paid up value if bonus accumulated and if not bonus accumulated? Whose signature is required on attestation of the policy? The mutual obligation of the parties is laid down in? The Insurance companies allow modification/alteration of the original policy documents through... In case the customer has stopped making payment for the premium of the policy. What are the two most important things required in order to reinstate the policy?

Asvath photograph

asvath thump impression Only

policy document need to be registered

Left thumb Impressionof Asvath along with a declaration of his friend Baptism Certificate is Non Standard & Ration card is Standard Age Proof RPR schedule Trust Sum Assured less the latest premium Surrender when Nominee is Minor many No such conditions Its a Ulip Plan Savings element. Has Financial Problems Endorsement Paid up value Terms and Conditions

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Both are Standard Age Proof

Both are Non standard Age Proof

Baptism Certificate is Standard & Ration Card is Non Standard Age Proof

Policy Document operative clause Proposer No claims payable Fund switch Signature on the proposal one Each nominee to get Min 10% No bonus accumulated Indexing contribution. SA Proviso Total paid premium Provisio

proposal form Preamble Nominee All premiums paid Savings Element Medical exams two Each Nominee to get Min 25% Age proof was substantially wrong Nomination facility. advisor induced Schedule Sum Assured Endorsements

FPR Information statement Appointee Sum assured Partial withdrawal insurable interest three the first nominee should have more than second Policy has become paid up Rider benefits. no commission Terms & conditions Surrender value Operative clause

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213333 & 273333 Agent Operative Clause Surrender Reinstatement Fee and Proof of continuing good health As health was better than B

213333 & 229333 Policy holder Heading Paid Up Premium cheque and health declaration

229333 & 273333 Authorized officials of insurer Proviso Endorsement Only health certificate

229333 & 293333 Proposer Attestation Assignment Premium cheque with arrears

A and B start their policies on the same date and surrender on 22 nd 3:2 anniversary of the policy. But As surrender value is higher than B. the reason was ; 127 Which from the following would help best the underwriter to know 3:2 whether the proposer had applied previously and his application was rejected 128 3:2 129 A policyholder wants to change the nomination after 5 years of the policy. What would happen

As term was longer than B

Bs term was longer than A

NA

Medical reports

Proposal form

Policy document

NA A simple application would do. He cant take loan from whole life policy but can avail loan from Money back policy NA 5000

Change not allowed

Can be done through endorsement

Can be done through an affidavit sworn in

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Mr. Anil has a money back policy and a whole life policy. He is planning to take some loan from both the policies as he was regularly paying the premium. What is your suggestion? When does nomination get invalidated If 5% bonus is given every year then for a SA of 1 lakh, what will be the payout after 15 years in a simple revisionary bonus system?

He regularly pays premium so he can take loan from both the policies

He can surrender whole life policy and can take loan from Money back policy

He cant take loan from money back but can avail loan from Whole life policy

On assignment 60000

If more than one person is nominated 75000

NA 100000

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Vijay received his policy bond on 11th June, 2011. Due to some personal problems he has decided to cancel the policy on 8th July, 2011. Can he cancel or return the policy? Rohit, 17 years old, submitted a proposal for Endowment plan of Rs.1 lac to AB Insurance Co. In the absence of an essential ingredient of a valid contract, the proposal was not accepted. Which factor caused the insurer for non-acceptance of the proposal? A nomination is not required if What is the main source for insurance company to get information of proposer? What are the factors involved in calculating Surrender Value of the Policy?

No, as 15 days period is over

Yes, as it is within 1 year

No, as 20 days period is over

Yes, as it is within 3 months

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Capability of performance

Legality of object

Capacity to contract

Offer

Policy is taken under joint life basis 1. Advertisements. 1. Number of years premium paid.

NA 2. Proposal form. 2. Number of premiums payable. 2. He can file a complaint against insurance company in court.

NA 3. Conducting interviews. 3. Sum Assured

NA 4. Telephonic conversations. 4. All of the above.

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Mr. Kumar is taken one life insurance policy with ABC Company. But 1. He can not do any thing, because be he is not satisfied with the policy benefits. What Mr. Kumar can do received the policy bond. under this situation?

3. He can send back the policy document to 4. Serve notice to insurance company with in 15 days from policy insurance company receiving date. on policy benefits. 4. A relative of the illiterate person has 3. an impression of the left thumb is sufficient to sign on behalf of and need not be attested that illiterate person. 4. Mr. Shanth can renew the policy 3. the policy may be renewed on different only on the terms and conditions approval of the insurer 3. A person having a policy on the life of another should make a nomination. 4. The section 39 of the Insurance Act 1938 speaks about the nomination. 4. Conditional assignment and absolute assignment are one and the same. 4. loans are allowed only in term plans 4. Policy will be surrendered by the heir 4. Date the last premium will be paid 4. Converting the policy to whole Life 4. Schedule of policy document. 4. Policy Document is received by policyholder. 4. When cheque is posted/couriered by the insure4. 4. Schedule.

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When an illiterate person wants to have a policy.....

1. an impression of the left thumb is taken and third party has to attest it

2. an impression of the left thumb is taken and the advisor has to attest it

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Mr.Shanth has taken an endowment policy of 15 years with ABC insurance company. He has paid premium for 4 years and he could not pay premium for 5th and 6th year. In the 7th year he approaches the company to renew the policy. Now which of the following options will apply to him? Which of the following statement is not true in connection with nomination?

1. The policy will be renewed on the existing terms and conditions.

2. Mr. Shanth cannot renew the policy

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1. The life insured can nominate one or 2. Nomination can be done either at the time the more than one person as nominees. policy is bought or later.

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Which of the following statements in correct in connection with assignment? Mr. Shanth has taken an endowment policy of 20 years. He has paid premium for 10 years and now the policy is in force. At this point of time can Shanth take loan? Mrs.Shwetha has taken a loan from her policy. Later stage she neither paid back neither the loan nor she paid the premium for a very long time. What will happen to her policy? Which of the following information does not appear in the First Premium Receipt?

1. Assignee cannot make fresh nomination in the policy

2. The assignor need not be major at the time of 3. Section 45 of the insurance act speaks about assignment. assignment. 2. Mr. Shanth can take loan which should be certain percentage of the surrender value of the policy. 2. Policy will be surrendered by the nominee

1. Mr. Shanth will not be granted any loan 1. Policy will be surrendered by the insurer 1. method and frequency of premium payment

3. There is no concept of loan in insurance policy 3. Policy will be surrendered by the company

2. Date of commencement of last premium

3. Date the policy matures

Mr. Raj has taken a policy of 15 year term. He has paid the premium for 9 years. But now unfortunately he has lost his job. He is unable to 1. Converting the policy to Term policy pay the premium. What can be the best solution from the following ? Payment of premium and sum assured are laid down in 1. Heading of policy document.

2. Converting the policy to Paid up

3. Converting the policy to money back

2. Proviso of policy.

3. Operative clause.

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An insurance contract commences when

1. Quotation is signed by proposer.

2. First Premium Receipt is issued.

3. Proposal Form is signed.

When is premium considered / deemed to be paid? Ram Lal 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? Lalu Yadav is having a saving plan with 20 years tenure. He has paid 5 annual premiums but due to financial crisis is unable to make future premium. His policy

1. When insured writes a cheque in favor of insurer.

2. When cheque amount is deposited in insurer account.

3. When the cheque is deposited with insurer office.

1. Terms & Condition.

2. Preamble.

3. Endorsement.

1. Acquires surrender value.

2. Contract comes to an end.

3. Moneys will be forfeited.

4. Acquires paid up value.

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How assignment distinguishes itself from nomination?

1. Nomination does not transfer the title while assignment does.

2. Nomination transfers the title while assignment does not.

3. Nomination is made after policy is issued while assignment is done before it is issued.

4. Nomination need not be informed but assignment needs to be informe4. 4. Absoulte Assignment 4. Schedule of Policy 4. Policy was subject to lien. 4. Paid up value only. Estimated amount at retirement 8500 To help the underwriter to asses the Risk 20th Year Moral Hazard Pure risk Actuary Accidental death Time barred medical report Physical Hazard Risk premium minus interest earning 7.50% 30 days of receiving the proposal NA NA Slightly lower Depends on insurer A sudden illness

Manish took a loan from Pankaj of Rs.10 lac, Pankaj transferred his Insurance policy to Manish of Rs.10 lac as a security with the 1. Loan assignment agreement Of when Loan is fully paid, policy title will be revert back to name of Manish is called: Which clause lays down the mutual obligation of the parties regarding, Payment of Premium by Life assured & payment of Sum 1. Lien Clause Assured by Pranab is not able to pay premium for continue his policy due to 1. In to paid up and reduced Sum some Financial problem, so he rather than surrendering the policy, Assured would be payable on maturity. what Option he has to convert .? Ajay has bought an endowment with profit plan for 20 year .if he took a Loan after 5th of commencement of policy and died before 2 year of 1. only Sum assured Maturity .what would be payable on maturity? While calculating Human life value (HLV) two components need to be Bank Fixed deposit rate kept in mind , the one is take home salary and other is Annual premium of insurance product is Rs. 32,000, 4% loading on 7680 Quarterly mode of payment What is the quarterly premium? why ACR In a 20 year with profit policy,persist ency Bonus is paid at the end of While Underwriting Mr X proposal , its found that there has been CRIMINAL case against him in Fraudulent act .What type of Risk this will be categorized Into ? Mr A wants insurance cover . But he is drinks alcohol frequently . What kind of hazard you may categorize? Who IS the primary underwriter of the customer? Claim was settled however full Sum assured not paid though the policy was in force due to Lien can be considered an alternative of which of the following what is the special report that is asked by the underwriter from the officer of the insurer 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 To calculate Premium 1st Year Fraudulent Hazard Physical hazard Underwriter Lien Clause HLV report Moral Hazard

2. Conditional Assignment

3. Loan Agreement

2. Opertaive Clause

3. Proviso Clause 3. Deduct the underpaid premium from Sum assured and payable on Maturity 3. Sum assured plus vested bonus minus any outstanding loan/premium & Interest. Estimated life expectancy 8320 To verify the Plan proposed 15th Year Physical Hazard financial risk Agent Surrender Acceptance moral hazard report Occupational Hazard

2.Return of Premium on maturity

2.Sum Assured + Bonus discount rate 8000 To Calculate the commission due for the agent 10th Year Occupational Hazard Moral Hazard Insuranc eCo Bonus Rejection Client confidentiality report Medical Hazard

Premium plus interest earning Net premium is equal to Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply The regulations issued by the IRDA, require that the decision on the proposal must be conveyed to the proposer within If bonus is given under a plan the additional premium added is known as Certificate from the village panchayat What will be lien amount in 3rd year as compared to the 4th year of lien. When an individual gets older, chances of obtaining life and health protection will be What key event is most likely to prevent insurer from ensuring that each insured person brings a fair premium to the pool for the risk presented? 2.50% 15 days of receiving the proposal Loading Will be considered as standard age proof It is higher Increases A policy Assignment

Risk premium plus interest earning 3.00% 20 days of receiving the proposal Investment Will be considered as non standard age proof Decrease Reduces A Fradulent Claim

Premium minus interest earning 5.00% 25 days of receiving the proposal Frequency Will not be accepted Slightly higher Remains same A steep rise in inflation A lump sum amount that the person will get from the insurance company Discount rate

HLV is used as a Yardstick to determine While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account?

The correct cover needed to compensate Emotion Loss can be compensated for economical loss to their family in case of death of the earning member Inflation. Interest.

NA

Compounding.

4 178 4 179 180 181 4 4

4 182 4 183 184 4 4 185 4 186 4 187 188 4

Vishal and sandeep applied for a health plan in XYZ Life Insurance Sandeep has taken another policy from Company. Vishal is asked to undergo a medical checkup but Sandeep XYZ Life Insurance Company is not asked to do so. What will be most possible reason? Mr. Kunal used to participate in Car race. While taking up the Insurance policy he disclosed this information. What kind of hazard Physical hazard does it refers to If the sum assured remains the same, what will be impact of net It rises premium if the age of the policyholder increases For which of the following reasons, the underwriter should ask Physical Hazard beyond agents confidential report. An insurance agent sold two policies to two different persons having the same policy term. He declares the commission to each of them. Risk profile of both the policyholder The commission of one of the policy is more than the other. What are different should be the reasons for this difference? Sum assured Compound reversionary bonus of 4 % will be calculated on A lien is generally used as a substitute to charging In a process of completion of an insurance proposal, an agent finds that the intention of the proposer was not genuine. In this case what should the agent do? The documents likely to provide the underwriter of an insurance company, the details relating to the previous subject application, which have been accepted as non-standard.. In a case, the underwriter felt that the risk associated with the person would decrease with time, then he would accept the case with Maximum Life cover a high premium for a high risk Contact the Regulators

Vishal is older than Sandeep

Sandeep is earning more then Vishal

Vishal is working in a MNC

Fraudulent representation It falls Moral Hazard

Moral hazard It remains constant SA is too high One has chosen Single premium policy and other has chosen regular premium policy

Peril Gross premiums increases Pure Risk Both have chosen different kind of policies. Sum assured minus bonuses paid till date NA Inform the insurer

Age of both the candidate are different

Sum assured plus bonus till date for reduction in sum assured Issue a wrong note

Premiums paid till date NA Refuse to proceed

Quotation Request Form

Proposal Form

Policy Document

Claim Form

A clause 20 times annual salary To see that the proposal is accepted by the underwriter at OR

A Lien 500000 To ensure that his client is not burdened with extra premium

A Loading 1500000 To give truthful report to the Insurer all about the life to be insured

Level Premium 4000000 To see that the plan as proposed by the client is not changed on underwriting Present value of the future earnings less personal expenses is the HLV of the proposer

4 189 What role an agent is likely to play in the process of underwriting?

4 In insurance, HLV is a known abbreviated term. How the meaning of HLV can best be described in relation to a income earning proposer? Out of all the factors that affect the needs of different life stages of an individual, which is the most common factor that is likely to exist throughout the life span of an individual? While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account? Moral Hazard reflects the .

Sum assured is the HLV of the proposer

Yearly income is the HLV of the proposer

Difference between the Assets and Liabilities is the HLV of the proposer

190 4 191 4 192 4 193 4 194 195 4

Employment

Age

Marital Status

Liability

1. Inflation.

2. Interest.

3. Discount rate

4. Compounding. 4. Medical and Personal History of Proposer. 4. Future value of previous earnings. 4. Information Underwriter. 4. Rs. 5000/-

1. Intentions and attitude of Proposer.

2. Habits and Hobbies of Proposer.

3. Occupation and Residence of Proposer.

Income replacement methods equates Human Life Value (HLV) to Agent will be called as.. Mr. Rajesh has taken policy from ABC insurance company for Rs. 500000 Sum Assured by paying Rs. 50,000 premium per year. Company declared 5% Simple Reversionary bonus, what is bonus amount? The underwriter can get the required information about the proposer in..... Mr. Ramesh works in a mining company. So he is exposed to.............. Lien is imposed on a policy when underwriter feels that......

1. Future value of Present earnings. 1. Primary Underwriter

2. Present value of future earnings. 2. Main Underwriter

3. Present value of previous earnings. 3. Chief Underwriter.

4 196 197 198 4 4 4 199

1. Rs. 2500/-

2. Rs. 25000/-

3. Rs. 250000/-

1. Proposal form. 1. moral hazard 1. the risk associated might increase

2. renewal receipt 2. physical hazard 2. the risk associated might decrease

3. brochure 3. mental hazard 3. the risk associated might not be harmful

4. annual report 4. Ethical hazard. 4. the risk associated might be general

4 200 4 201

What does the mortality tables contains ?

1. Tables of death occurring in various circumstances 1. Time of death is uncertain, so insurance can be given

2. Tables of details of various probabilities of death 2. Only lung is affected so health insurance can be given.

3. Tables of details of underwriters calculation on death 3. He can take insurance after submitting health certificate

Mr. Guptha is recently detected with lung cancer. He would like to take an insurance. What is your suggestion? Mr.Santhosh working as a head master who is around 52 years had requested for an Insurance cover for Rs.1 crore. He insisted that his brothers son should be the nominee not his wife. Underwriter will verify this case for which one of the following: Mr.Feroz has applied for an insurance cover of Rs.4 crores. The Company will accept or reject the proposal only after confirming from one of the following agencies. The responsibility for classification and analysis of the proposal form lies with whom? In underwriting the economic value of the person is determined by what?

4. Tables of details of actuarial calculation on death 4. Cannot give insurance for health reason 4. D. Moral hazard, as he is a head master and 52 years old 4. Insurance Investigation Agencies 4. Actuary who analysis the risk 4. Human Life Value 4. A medical checkup is carried out nearby place of residence. 4. Gross Premium. 4. Maximum Possible Loss. 4. Level Premium. 4. Proof of Income tax payer 4. Interim bonus 4. Net Premium 4. Medical of examination report 4. No underwriting Postpontment Investment expenses Higher than the average risk at the later stage of life

4 202 4 203 204 205 4 4

1. A . Physical hazard, as he is old

2. B. Moral hazard, as he is 52 years old and wife is not the nominee

3. C. Moral hazard, as coverage is high and brothers son is the nominee

1. Financial Inspection agencies 1. Risk Analysis Department 1. The occupation of the person

2. Specialized inspection agencies 2. Classification of Risk Department 2. The financial history of his family

3. Credit worth inspection agencies 3. Underwriter 3. The income that he earns

4 206 207 208 209

When an underwriter may consider Moral Hazard?

1. An individual is proposing SA 15 times his annual income. 1. Risk Premium. 1. Minimum Possible Loss. 1. Clause. 1. Non Standard Age Proof 1. Simple Revisionary bonus 1. Gross Premium 1. Proposal Form

2. Insurance is taken out by an individual with dependents. 2. Net Premium. 2. Major Possible Loss. 2. Assignment. 2. Standard Age proof 2. Compound Revisionary bonus 2. Level Premium 2. Insurance agent

3. A nominee is not a dependent.

4 4 4 4

Level Premium is calculated based on MPL abbreviates What is generally considered as a substitute to charging a high premium for a high risk? Jyoti is submitting is copy of permanents account number card as age proof for buying an money back plan .her age consider as a Which one of the following bonuses is given by insurer as an incentive to the insured to for long term: Ramesh bought an endowment plan for ten year he pays the same Amount in every year is called: Which one of the following is not source of information about the Manish being a sole earning member of his family not insured himself But looking for insurance for his son who is student .there is possibility of An underwriter accepts the proposal with certain modified terms and coditions,What it denotes Loading in a term plan is more likely beacause of Morbidity

3. Loading of Premium. 3. Minor Possible Loss. 3. Lien. 3. an Address proof 3. Persistency Bonus 3. Risk Premium 3. neighbor of proposer

210 211 212 4 4 4 213 4 214 215 216 4 4

1. Physical Hazard Lien Mortality

2. Moral Hazard Counter offer Admin expenses

3. Medical Decline

4 217 4 218 4 219 220 221 4 4 5 222 223 224 5 5

In case of lien,the risk will classified as per underwriting standards Sarath is the client and looking for large SA, and the proposal to be certified in the context of confidentiality report with relavent to moral hazard,who is concerned person to do! ACR

better than average risk,at the early stage of life

better than the average risk ,at the later stage of the life Higher than the average risk,at the early stage

Sarath nominee

Superior of the Sarth's insurance agent

If a person have motoring sport as hobby before taking insurance Moral hazard is Sport and it influence policy,then what it implicates the risk of life If a policy of term 30yrs is imposed with lien, what will be the lien period 5 A gave an offer to B and B made changes to the same and returned it modified acceptance to A. It will be called Hari wants a constant life cover till his 31st birthday. But he cant afford to pay high premiums. The best suited products for him would Pure Endowment be At the time of maturity , quarter of the SA is paid though the policy Endowment was in force Weekly premiums are generally collected for which type/range of Banca assurance palns

motoring sport is risk and influences moral hazard 10 Counter offer Anticipated endowment Lien Health plans

motoring sport is risk and influences physical hazard 15 Rectified offer term plan Money back Micro Insurance

Insurance company motoring sport is a physical hazard and it influences risk 20 Rectified Acceptance ULIP Surrender Term Insurance

225

5 5

Mr A is planning to invest and his needs are :1 Protection for is Income , during his absence 2.children education What tax rate,if any,will be applicable to a life insurance policy holder for the maturity proceeds of a Rs 5000 life insurance policy A policy holder can pay the premium of Rs 5,00,000 and what could be the max tax efficiency he is entitles to Ram has Invested Rs 5000 in PPF & Rs 1 Lakh in Life insurance premium . In which he will get maximum Tax Benefit 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 without submitting any form of claim,a life insurance policy holder received payments of survival then what type of policy he is holding what is the special feature of ulip that ensures customer risk profile for long time insurance policies Kamal is willing to pay 60000/- per annum for his ULIP policy. What should be the SA in case he wants to avail the tax benefits Suresh is suffering from Asthma and the policy in been done on joint life basis and the need for nomination under the plan is less as After maturity In a Unit Linked Life Insurance Policy, customer does not get received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity plan A customer gets periodic benefits without any claim and then when he dies during the term of the policy, his nominees gets the sum insured. What type of policy is this ? For assessing the risk of a group health insurance policy, which of the following information is the most critical Rakesh wants to buy a policy primarily for Risk Cover but at the end of the term he wants to get at least some return. Under which policy he will get these benefits Prashant buys an Endowment Plan with a sum assured of Re. 100000 and wants to make use of tax benefit under the policy for whole SA. How much premium would help him avail this benefit What is the ceiling of tax exemption under 80 c. The agent can use the benefit illustration document to show the client the projected growth of investment at the rate of Suresh has adequate reserve capital with him and he wishes to protect his income, moreover he feels that if he does not die then he would need the amount. What type of plan should he opt for? Frequent switching is not advisable in ULIP plan because it increase Mr. Kartik got a job recently, he cant afford to pay to pay the higher premium as of now but in future once he settles down with his job he can pay higher premium. Which one will be the best plan? What is the minimum Sum Assured allowed for Micro Insurance?

Children Plan Nil 500000

Retirement Plan 10% 50000

Ulip Plan 20% 100000

Term Insurance 30% 300000 95% on Life Insurance Premium & 5% on PPF Tax fully exempted

226 227 5

5 228 5 229 5 230 231 5 5 232 5 233 5 234 5 235 236 5 5 237 5 238 239 240 5 5

Life Insurance Premium

PPF

50% on each

Fully taxable

10%

20%

ULIP fund switching 1 lac

Term partial with drawl 3 lacs

Money Back premium holiday 2 lacs

Health riders 1.50 lacs

Joint life policy

Has physical ailment

NA

NA Policy was lapsed on the time of maturity Whole of Life Medical history of group Ulip

He has switched his fund

He has opted for Settlement option

He has redirected his past premium

Endowment Group lifestyle Endowment plan

Term Employees ROP plan

Money Back Age of the group Whole life plan

Less than 10000 1 lakh 6% and 10%

More than 10000 1.5 lakhs 5% and 10%

Less than 20000 2 lakhs 6% and 12%

More than 20000 3 lakhs 5% and 12%

5 241 242 5

Term Insurance Plan

Endowment plan

Return of premium plan

Pension plan

Investment Risk

Risk of death

Uncertainty of return

Chances of lapse Convertible money back plan 20000 Deferred date is date on which the risk commences. 4. 30% 4. Medical history of group 4. Only Tax Benefit. 4. Good Returns 4. a money back policy

5 243 244 5 5 245 246 247 248 249 250 5 5 5 5 5

Convertible Endowment plan

Convertible Term plan

Convertible pure Endowment

5000 Deferred date is a policy anniversary.

10000 On vesting date policy has to be assigned to the life assured. 2. 10% 2. Employees 2. Only Maturity Benefit. 2. Low Returns 2. a term life policy

15000 After vesting the contract is between the insurer and the life assured. 3. 20% 3. Age of the group 3. Only Bonus Benefit. 3. Moderate Returns 3. an endowment policy

Pick the wrong answer. In a child plan: Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness before maturity? For assessing the risk of a group health insurance policy, which of the following information is the most critical Term Insurance Plan will give. Low risk products give.. The income of an individual can be protected with the help of.........

1. Nil 1. Group lifestyle 1. Only Death Benefit. 1. High Returns 1. a unit linked policy

251 252

5 5 5

Mr. Shanth has got a pure endowment policy for 30 years for the sum assured of Rs. 75,000,00/-. It can be paid to him...... Flexibility like partial withdrawal and taking premium holidays is possible with.... Mr. Varun who own a multi chain company would like to take an insurance. What will be the best option for him from the following ? Mr. Kumar decides that his employees should have SSS scheme. What type of plan is SSS? Manmohan has recently purchased a house worth ` 50, 00,000 on loan. Which insurance product you as an adviser will suggest? To avail the income tax benefit at investment stage, premium should be maximum Rakesh has bought an Endowment, Money back, Term & Annuity Plan he would like to avail Loan from: In Group insurance plans contract of insurance between ? The best way to overcome the problem of investment decision depends mainly on peer influence is A person who has a temporary job Loss , where should he look for Investing other than FD RBI increased interest rates 2 times then the stock prices A person Wants to invest in a FD for Tax benefit , How many years he has to take the term of the FD ? aditya wants to take home loan and his monthly take home is 80,000 what as a best practice should be the maximum EMI 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 person is holding 100 GOLD ETF certificates . How many grams of GOLD does he Have ? A customer while investing in to Recurring deposit or Cumulative deposit what are the key factors which will matter A person planning to invest in Kisan Vikas Patra will go to If a person chooses Cumulative deposit than Recurring deposit ,difference will be in A policy holder pays identical premium amount for ULIP and EPF where he gets max tax efficiency Investing in ULIP plans exempts a maximum up to what limit for Income Tax Suresh wants to transfer his physical gold to gold exchange traded fund,in relation to access,this change will An Investor has invested in Debt mutual fund,he is ideally looking for With this type of deposit the bank pays the principal and the total interest at the end of the term In Cumulative bank deposit the interest that in normally compounded on what basis Amit has taken a G-Sec and has parted with it mid way as he required the money with the intention of not getting the interest. What will he get? Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason

1. when he dies 1. Fixed deposits 1. He can take Surety insurance 1. Salary saving Life plan 1. Endowment Plan. 1. 10% of S1. 1. Endowment Plan 1. Master Policy holder & insurer By Canvassing wide peer group Debt Funds of MF increase 5 year 20000 Increase gradually 10- 20 gms Taxation Insurance Branch frequency of interest calculation in ULIP policy 50000 not hedge against Inflation Equity return Traditional deposits Monthly Discounted Value Administrative charge

2. when he survives the term 2. Unit linked Insurance plans 2. He can take Business Partner insurance 2. Not a specific plan 2. Money Back Plan. 2. 20% of SA. 2. Term Plan 2. Employer & Employee Seeking professional advise Govt Securities decrease 4 year 24000 Decrease gradually 20- 50 gms frequency of payment Post Office Tax in EPF 75000 Decrease his liquidity Fixed Income Recurring deposits Quarterly Principle amount Inflation

3. when he is hospitalized 3. Term Insurance 3. He can take Key man Insurance 3. Salary insurance plan 3. Whole Life Plan. 3. 30% of SA. 3. Money Back Plan 3. Employee & Insurer Go for a low investment tranchee Equities volatile 3 Year 28000 Remain Constant 50-100 gms interest rates Internet Interest tax same efficiency for both 100000 Reduce his encasement for next six months Stable income Cumulative deposits Half Yearly Discounted Value with persistency bonus Interest rate

4. when he loses his job 4. Endowment plans 4. He Can take company insurance 4. Salary Specific plan 4. Term Plan. 4. 40% of SA. 4. Annuity Plan 4. Creditors & Debtors Postponement of investment decision Gold same 2 Year 32000 Change as per market fluctuation 10 gms tenure Mutual Fund Office Tenure Both do not give tax benefits 200000 Insurance against Uncertainties Savings income Term Deposits Annually Principle with persistency bonus Market Risk His investment would be deducted from taxable income 10% Liquidity Regularly for fixed period of time

253 254 5 5 255 256 257 258 5 5 5 6 259 260 261 262 263 6 6 6 6 6 264 265 266 267 268 269 270 271 272 273 274 6 6 6 6 6 6 6 6 6 6 6 275 276 6

6 277 278 279 6 6 6 280

An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. Its the impact in his taxation If a policy with premium of Rs 5000 has matured, how much will be deducted when the maturity claim arises When a person is investing in Debt Mutual Fund, what is the primary objective Payment/Investments in Kishan Vikash Patra under post office schemes

He will get tax benefit up to 5000

He will get tax benefit up to 25%

He will get a reduction in tax slab

Nil Good Returns Regularly with no fixed term

1% Regular Income Lump Sum with no fixed term

5% Safety Lump Sum for fixed period of time

281 282 283 284 285 286 287 288 289 290

6 6 6 6 6 6 6 6 6 6 6

What is the similarity between Recurring Deposits & cumulative deposits in a bank Mrs. Sheela received some amount out of her husbands death. In such a situation what will be her prime focus? If a person want to maintain emergency funds the best place is a bank or What is the advantage of converting physical gold assets to gold ETFs. Suresh wants to transfer his physical gold to gold exchange traded fund,in relation to access, this change will A client has his investment in equity shares. Agent advises him to keep it in equity based mutual fund. This will make the risk Bank interest is accumulated Bank savings account earn cumulative interest at what frequency If I invest in a G sec partway(ignore periodic interest payments).I will get on Maturity Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason Who will maintain Mutual Fund Schemes? Which is the primary saving need among all saving needs? Mr. Rao has Rs. 10, 00,000 cash with him. He would like to use this amount for his daughters marriage which is going to happen with in Nine months. He would like to get some returns from this money in these 9 months period. What is the best option to park his money? The disposable income means...... Which of the following ways is easier for a person to take a saving product? 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..... The concept of Risk diversification is applicable in which of the following instrument ? Ajay bought a share for Rs.110 and he sold when it was Rs.630.What had happened to his share? Which of the following cant be ducted under section 80 c from taxable income? Who act as an intermediary by offering a trading platform for buying and selling of shares? The savings needs of a particular individual is majorly determined by For his investment need, Ravi has parked funds in equity. The returns from this form of investment can be categorized as While calculating the expected returns from investments and savings, an individual should make provisions for Time deposit account is issued by:

Guarantees Savings Equity market Liquidity Increase his liquidity Diversified Monthly Monthly Prinipal amount 1. Administrative charge 1. Mutual Fund Management Societies 1. Insurance

Taxation Insurance ULIP More gold in value Decrease his liquidity Lessened Yearly NA NA 2. Inflation 2. Mutual Fund Management Systems. 2. Purchasing House

Tenure Investment management Debt mutual fund Purity Reduce his ability to encash for next six months Increased Quarterly NA NA 3. Interest rate 3. Asset Management Companies. 3. Investment.

Lock in periods Planning for pension FD More conversion value Create a future exit liability NA Once in 6 months NA NA 4. Market Risk 4. Asset Maintenance Company Limite4. 4. Contingency/ Emergency Fund.

291 292 6

6 293 6 294 295 6

1. Insurance

2. Shares

3. Fixed Deposit in Bank

4. Mutual Funds.

1. the surplus amount that can be invested 1. through individual agents

2. the amount that can be paid towards one's EMIs 2. through internet

3. the annual bonus amount 3. corporate agents

4. the sum of one's all investment 4. call centers

6 296 297 298 299 300 301 302 303 304 6 6 6 6 6 6 6 6 6 305 6 306 307 308 6 6 7 309 310 7

1. Life Insurance

2. Mutual fund

3. Shares

4. Bank deposits 4. Risk Sharing insurance 4. Capital Variation 4. Infrastructure Bonds 4. Share brokers 4. Duration of investment. 4. No Risk. 4. No provision is require4. 4. Life Insurance co. 4. Interest paid on education loan 4. Fixed Deposit

1. Mutual Fund 1. Capital Appreciation 1. Pension Funds 1. Bombay Share exchange 1. Amount of disposable income. 1. High Risk. 1. Taxation only. 1. Post office

2. Risk Diversified Insurance 2. Capital Profit 2. Public Provident Fund 2. Bombay Stock exchange 2. Current assets. 2. Low Risk. 2. Inflation only. 2.Bank 2. Infrastructure Bond

3. Shares 3. Capital Benefit 3. Employee Gratuity Fund 3. Stock brokers 3. Current liabilities. 3. Moderate Risk. 3. Taxation & inflation both. 3.Mutual Fund 3. Health Insurance

Pankaj want to save tax over and above the deduction allowed under section 80C of the income tax act 1961, which allow deduction from 1. Corporate Bond taxable income In which of the following Bank pays the Interest on the deposits fund on monthly /quarterly /half yearly/ yearly basis as chosen by 1. Saving Deposit depositor fund: Sanjeev in a lumsum investment is getting benefit of multiple securities Bonds If the client prefers bank fixed deposit rather than cumulative deposit ,due to what implication ? Investment Frequency Omkar Started a pension policy with provider A but ended up in taking the annuity payment from provider B.The result directly reflect Commutation Option the which feature available with this policy what frequencies can one take annuity monthly,quarterly,half yearly,

2.Cumlative deposit

3. Traditional Deposit

Fixed Deposit Interest Rate Differed Annuity Option fortnightly,quarterly,monthly,yearly Look in period

Mutual Fund

KVP Taxation Open Market option Yearly Only

Guaranteed period option fortnightly,monthly ,half yearly, yearly

311 312 313 314 315 316

7 7 7 7 7 7 7

All ULIP pension plans have to give how much percentage as Guaranteed returns Yash wants to take open market option in Pension plan. What is the benefit? Commutation option allows the annuity policy holder to with draw commutation is a feature of which type of policy Waiting period in a health insurance policy is to address Under a health insurance policy,if a policy holder needs to avail his no claim bonus, how can that be done Danny is married and has two children aged 6 & 10 , His parents are aged 68 &70 . Who all can be included in Family floater option of a health plan Implication of Daily Hospitalisation benefit paln Rupkumar wants to take Commutation option. What is the maximum amount he can withdraw Critical illness rider was taken and the rider benefit has been claimed , the rider benefit now gets A person has taken a term insurance of 4 Lac. What is the maximum Critical Illness Rider he can take Mr. Sharma buy term insurance policy along with Accident and Disability benefits rider cost restricted upto the base premium of the policy? Mr.Ramesh invested Rs:50000 in pension policy, what is the percentage he can avail as exemption in Income tax. In a Guaranteed annuity option of 5 years , the policy holder will get annuity till

6% To save tax 25% annuity Age discrepancy cash encashment Only Danny

9% To switch the underlying fund 50% joint life policy Pre existing illness discount in the next premium Danny & his Wife

4.50% For improved annuity rate 40% pure endowement policy risk increase in the cover level Danny , His wife ,His children

10% To continue life cover 33% policy of another person premium certain policy exclusions Danny's family and his parents On the expenses incurred daily due to critical illness 15% New critical Illness Rider has to be added to base Policy 4 Lac 50% 20% premium payment term 40% of the premium on the base policy Rider is like Preamble Only surgery expenses are included in daily hospitalization benefi No change in policy Children Only Only Hospital bill will be paid 40% of base policy premium NA NA Lump sum amount what he has incurred Need to switch to the another insurer Nonlife and life respectively. Vesting age

317 7 318 319 7

Fixed amt daily one sixth

SA one third

Amt for particular diseases daily 25%

7 320 321 7 7 322 323 324 7 7 7 325 7 326

Reduced the the base SA

terminated

continues as it is

1 Lac 20% 33% entire life term 10% of the premium on the base policy

2 Lac 30% Pension plan is not eligible for tax exemption till 5 years and continue till annuitant lives 20% of the premium on the base policy

3 Lac 40% 100% annuity only for 5 years 30% of the premium on the base policy

The Premium on all riders put together should not exceed How riders will help the customer in life insurance allows policyholders to customize their insurance cover with additional benefits The daily amount paid is fixed and will never be more or less than the cost of actual treatment CI benefit will cease All members of a Family Entire charges are refunded 15% of base policy premium 10% of the sum assured Needs to take experts suggestion Number of days admitted in hospital & surgery expenses in full Need to spend and Get claim from the insurer Life and non life respectively Insurance coverage Rider is like a clause Operative clause

7 327 328 329 330 331 332 7 7 7 7 7 7 333 7 334 7 335 336 337 7 7

In Daily hospitalization cash benefit scheme

The insurance company may pay an additional amount on a daily basis if the insured is admitted to the Intensive Care Unit (ICU) CI benefit reduced from existing sum assured Husband and Wife only Entire charges less bed charges will be paid 25% of base policy premium Specified amount multiplied by the number of days the policyholder is hospitalized Equal to base cover Number of days admitted in hospital & surgery expenses in partial Need to add that hospital as TPA Both life insurance Annuity part

The insurance company will pay for doctor consultation fees incurred prior to hospitalization CI benefit continues Parents only A fixed amount on a daily basis is paid irrespective of the actual cost of treatment 30% of base policy premium NA NA Treatment cost of surgery subject to terms & conditions Need not to claim Both non life insurance Guaranteed and non guaranteed part

In term insurance if Critical illness rider claim happens then what will happen to existing policy Family floater health Insurance plan covers How the Daily hospitalization cash benefit will provide benefits to policyholder who is hospitalized The premium for accidental death benefit rider must not exceed Under the hospital care rider what is the payout made One person wants to take term plan for 20 lakh and wants to take ADB rider, he is not sure of how much sum assured he needs to take for ADB rider. What is your suggestion?

What are the benefits to the policyholder Under Surgical care rider? Health insurance policy holder takes treatment in a hospital which doesnt have cashless facility. How the policy holder will get benefited Health insurance rider and critical illness rider in classified under In a pension plan illustration what are the parts which shows the benefit for an annuitant.

7 338 339 7 What is commutation of installments Health Insurance is needed because Rajan and Rajini has taken a Family Floater health insurance Plan of 4 lacs. They met with an accident and had a hospital bill of 6 lacs. Which is true for this situation: Open market option under Annuity policy would extend which of the following benefit? Ajit and vijit are 2 friends paying same premium for health insurance. Why ajit has higher tax exemption eligibility than vijit While calculating retirement fund required for a self employed person which of the following option will automatically be ruled out In case of pension plans a guaranteed minimum return of 4.5 % is applicable when the plan is

The lump sum withdrawal before receiving periodic installments of annuity Life is very uncertain They would get the claim of 6 lacs since the individual cover is 8 lacs Ensure Better annuity rate Ajit is above 65years of age whereas vijit is below 65 Gratuity amount Indexed

The lump sum withdrawal before receiving maturity benefit Cost of healthcare has increased significantly

The lump sum withdrawal before receiving Survival benefit Premium increases with age

The lump sum withdrawal before receiving Death benefit NA Rajan will get a claim of 3 lacs and Rajini will get 1 lacs Switch of Funds NA NA NA The insurance cover is shared amongst the family members in no fixed Proportion No Proportion Surgical Care Rider X with all Person receives benefit only if he is hospitalized for 3 days minimum Waiting period NA NA 4. not remembered 4. Surgical Care Rider 4. Premium paid for Health Insurance Plan. 4. Rs, 4, 85, 468/-

7 340 341 342 7 7 7 343 344 7

The claim will depend on the surveyor

The maximum claim will be of 4 lacs

Increase in the range Ajit is NRI and vijit is Indian His standard of living Guaranteed

Increase in return Ajits health is better than vijit NA Unit linked

7 345 346 7 7 347 348 7 Which of the following is true regarding Family Floater Health Insurance Plan? In what proportion is the cover in a Family Floater Plan shared? The rider which is given by the Insurance company pays for the treatment costs in the event of hospitalization of the insured person is called Mr. X is married with wife, 2 children and aged parents Health premium is allowed for

A Family Floater Plan is the same as a Individual Plan

Only self and spouse can be covered in this plan

Any number of people may be covered in this plan.

25% each Critical Illness Rider X only Person receives fixed amt daily for no of days in hospital

15% each Hospitalization Care Rider X with wife Person receives an amount equal to the expense. Exclusion NA NA 2. annuity will be continued for next 5 Years

50% each Accidental Benefit Rider X with wife and kids

7 349 350 7 7 351 352 7 7 353 7 354 7 355 7 356 357 358 7 7 7 359 7 360 Daily hospitalisation benefit: ADB rider premium cannot exceed Customer has opted for a 5 yrs guaranteed annuity option. What will happen to annuity, if the customer survives for 5 years after the end of guarantee period? The rider which is given by the Insurance company pays for the treatment costs in the event of hospitalization of the insured person is called Which of the following product not comes under Section 80 ( C ), income tax act 196 Mr. Suresh purchase one pension plan and accumulated Rs. 9,00,000 amount in his pension fund. He would like to utilize commutation benefit before taking pension. What is amount Mr. Suresh can withdraw as commutation? Customer has to pay the amount in regular intervals to create purchase price or Pension Fund. We call this phase as.. Some Health Plans will give coverage for family members also. We will call these plans as.. Mr. Hitesh would like to get health coverage along with Life Insurance. What are the options available to Mr. Hitesh to fulfill his need with a little cost? Mr. Govind, Advisor with ABC life insurance company find out one client is seeking solutions for health care and inheritance planning. Which main life stage he most likely to fall into? Hospitalization rider has the following benefit: In a Health insurance plan what the particular feature is likely to cause the Insurer to decrease the Renewal premium?

Person receives a fixed amount of 1000 daily.

Cashless facility No of days spent in hospital multiplied by Daily hospitalisation benefit 30% of the base premium 1. paid up to 75 Yrs

No claim bonus NA NA 3. till he die

1. Critical Illness Rider

2. Hospitalization Care Rider

3. Accidental Benefit Rider

1. National Saving Certificates.

2. Equity Linked Saving Schemes.

3. Principle component of home loan.

1. Rs. 3, 00,000/-

2. Rs. 4, 50,000/-

3. Rs. 90,000/-

1. Collection Phase. 1. Family Health Insurance Plans 1. Taking Life Insurance plan with Critical Illness Rider. 1. Young Unmarried.

2. Accumulation Phase 2. Total Protection Policies. 2. Taking Health Plan, Insurance Plan separately. 2. Young married with children.

3. Pension Phase. 3. Family Floater Health Insurance Plans. 3. Taking Medi-claim plan with Life Insurance.

4. Primary Phase. 4. Family Rakshak Health Plans. 4. Taking Hospital Benefit Plan with Endowment Plan. 4. Children.

3. Retirement.

7 361 362 7

Which of the following is not a feature of WOP rider? Mr. Ramakant is 35 years old. He has bought retirement plan for 20 years. This type of pension plan is known as.................. Mr. Ranga has taken Critical Illness Rider. In which of the following scenarios the insurance company will pay him...... Mr.Feroz has taken policy for critical illness worth Rs.1 lakh in health policy. He also has a term plan worth Rs.10 lakhs. Mr.Feroz was hospitalized after he was detected with cancer .Unfortunately he died after 3 days of treatment. How the claim will be settled? Which one of the following cannot be covered under Critical illness rider? Mr. Yash has taken an annuity on 25th August 201The benefit of the plan will start from 25th August 201 What type of annuity plan is this? Rohit is working as sales manager with an FMCG company. His job requires him to travel across states. He is planning of covering his additional risk involved while travelling and a savings plan. What suggestion would you give him as an agent? The general need for purchasing a health insurance plan at an early age results from which of the following factors? The life expectancy in India is constantly improving and is well above 60 years. This also brings along challenges. These challenges can be covered through Anand has purchased a pension plan which is nearing completion of accumulation phase. He is in need of finances to make down payment of car he wants to purchase. At the end of accumulation phase how much he can make tax free withdrawal? Which of the following is not featured and benefit of rider? Gaurav bought an endowment plan for 20 year of 10 lac SA with ADB Rider, died in road accident after 10th year how much money claimant would be payable: Under what kind of Rider the insurance company pays the treatment cost in the event of hospitalization of the insured, subject to term & Condition of the rider. The risk of unemployment is covered with what benefit in the policy In Surgical benfit rider what would be the payout procedure A Critical Illness claim is settled in a policy. The benefits of the policy can be used for If a health rider is taken in a policy, maximum rider premium can be %age of base premium In a pension policy if agent says the cost would be 120% of present value if he invests for 10 years, this is due to Under daily hospitalisation cash benefit scheme the amount payable is increased due to what reason Insurance addresses the needs of people with risk of living too long by.. Why do Self Employed Individual have the need to buy Medical Insurance rather than People working in public Sectors Mohit has two kinds, one of 6 years and other 8 years.He is the earning member and not having life cover. Before advising him to take health policy, what he should be advised. Manoj a 26 year old is having 7 years old son. What will happen to his monthly disposable income after 15 years of job Samir is married and he has only one partner,with dependant parents and no child,which should be his priority

1. The rider waives future premiums in 2. This rider is ideal for helping to prevent a 4. WOP rider can be 3. The main strength of WOP is the payment of the event of the disability or death of policy lapsing due to non-payment of premiums offered with all full sum assured. the policy holder. due to death or disability plans 1. immediate annuity 1. When Mr. Ranga dies due to critical illness 2. life annuity 2. When Mr. Ranga is diagnosed a critical illness 3. deferred annuity 3. When Mr. Ranga's family member will be in critical illness 4. joint life annuity 4. When Mr. Ranga dies due to severe road accident. 4. Claim will be settled as per the instructions of underwriter 4. Brain Surgery 4. Immediate annuity 4. To purchase a medical plan. 4. The premium increases with increasing age. 4. Savings insurance plan. 4. 2/3rd of accumulated amount. 4. Customization and tax benefit. 4.5 lac

7 363

7 364 365 7 7 366 7 367 7 368 7 369

1. claim of critical illness and 10 lakh from term policy will be settled

2. claim of hospital charge Rs 20,000 and 1 lakh for death will be settled

3. Claim will not be settled as he died due to cancer

1. Blindness 1. Guaranteed period annuity

2. Paraplegia 2. Life annuity

3. Coma 3. Deferred Annuity

1. To purchase an accidental rider with a savings insurance plan. 1. The premium decreases with increasing age. 1. Equity.

2. To purchase a health plan along with a savings insurance plan. 2. The premium remains constant with increasing age. 2. Bank fixed deposits.

3. To save through fixed deposits in bank.

3. The premium may increase or decrease with the increasing age. 3. Health insurance plan.

7 370 371 7 7 372 7 373 374 375 376 377 378 379 380 7 7 7 7 7 7 7

1. 1/5th of accumulated amount.

2. 1/3rd of accumulated amount.

3. 2/5th of accumulated amount.

1. Providing additional cover 1.10 lac

2. Maturity benefit 2. 20 lac

3. Nominal cost & flexibility 3.30 lac

1. Accidental death benefit (ADB)

2. Critical illness (CI)

3. Hospital Care (HC)

4. Term Rider.

Rider Continouation Subsidiary discount Per day Hospital Cash Benefit Respective Per today the Hospital surgery made Cash Benefit irrespective to the Will surgery get lumsum made benefit respective to surgery have Irrespective been made to the sugery Only for Illness 25% Charges Change in hospital Extensive documentation For Repairing house 50% Compounding Special consultant charges Restricting the max age at entry Public sector employees enjoy Medical Insurance Covers related to Job Only For Doctors fees 75% Taxation Admission to ICU Extensive underwriting at inception Retirement and pension plans Loans are available faster for Public sector EMPLOYEES Life Insurance policy for himself will remain same long term savings Not specified 100% Premium increase

8 381 8 382 383 384 8 8

Public Sectors do not get Sick often

Self Employed people do not have Sick Leave

Health policy for child Marginally decrease income protection

Health policy for wife Singnifcantly increase inheritance planning

Life insurance policy for wife less than after 15 years investment efficiency

8 385 386 387 8 8 8 388 389 390 391 392 8 8 8 8

The sole focus during a clients fact-find session was healthcare requirements and estate planning. Which main life stage is he most likely to fall into? A Couple has 7 years old son, What solution would they be looking for In which of the recognized life stages an individual does not required any protection cover Benefit Illustration given to a customer quantifies an amount by which investment return is reduced. This reduction reflect the impact of Life insurance is the most important for which age group Ashish is looking at different plans of insurance for protection at the lowest premium. Which is the best plan for him? During Fact finding, rating is mentioned 3. This Indicates Shailesh and ankit want to retire in the age of 65yrs. But shailesh pays more monthly payment than ankit. Why? During financial planning session if the agent finds out the following needs, which one should be given the top priority. Needs: Income protection, Childs education, marriage and emergency funds. Ajay and Vijay both are unmarried. Ajay has dependant Parent. Which need Ajay must take care of on priority, although that will not be a priority for Vijay?

Young married couple Retirement Childhood Charges Young Term plan Risk apatite of client Shailesh is very older than ankit.

Young married with children. health care Young Married Interest Pre- retirement Endowment plan His future aspiration Shaileshs income is more than Ankits income

Pre-retirement. child education Pre Retirement Inflation Retirement Whole life plan Commitment to need NA

Retirement life cover Retirement Taxation children Money back plan. Willingness to pay NA

8 393 8 394

Childs education

Marriage

Emergency funds

Income protection

Retirement plan

Health insurance for parents

Term Assurance

Endowment Plan

8 In the context of financial planning, how is the difference between real needs and perceived needs best described? If a person is concentrating more on health plan and retirement plan then at which stage of life is he in. Manish and Manisha is a married couple with one child. They want to plan for savings, child education/marriage and their retirement and protection of income. Which should be their lowest priority? During fact finding, What will be the next step after Identifying clients need Akash is an Unmarried person and employed with company ABC and drawing a handsome salary. He has no liabilities. What kind of plan can be suggested to him? Sumit is having 2 children. He wishes to have health cover for himself and his wife. Which suits him the most? A client has got some funds and wants to provide for retirement and margin money. What should be his priority While planning for retirement fund to calculate the required amount needed at that time we should consider as priority Ajay is 35 years old. He wants good amount of life insurance cover along with savings element with no defined term. Which plan should be suggested The income of an individual can be protected with the help of A married couple having 9 year old child have to consider life insurance, health insurance, child investment & retirement plans for their better future as a family but at present condition which aspect should be kept at lowest priority? After completing a Fact Finding activity for a client, who is self employed, the main reason why it is important to record the type of work that he is involved in is Mr. Shyam is having 9 year old child. Which product is not to be given priority? What is the major reason for self employed to take insurance. What is the major reason for conducting fact finding exercise?

Real needs are financial needs and perceived needs are non-financial needs.

Real needs are actual needs and perceived needs are based on a clients thoughts and desires.

Real needs are identified by the insurance agent and perceived needs are identified by the client.

395 396 8

Real needs are needs which satisfy an objective and perceived needs are needs which do not satisfy an objective. Pre retirement

Young unmarried

Young married

Young married with Kids

8 397 398 8 8 399 400 8 8 401 402 8 8 403 404 8

Marriage.

Savings.

Education.

Protection. Fill up the proposal form ULIP Group health insurance plan Depends upon the amount needed NA Moneyback a money back policy Retirement

Quantify clients need Money Back A family floater Margin money The inflation rate Endowment a unit linked policy

Priorities Clients Need Term Plan Life insurance Retirement plan The interest rate Term a term life policy

Recommending Product Endowment Plan Individual cover Depends upon his actual age and years left for retirement His income Whole life an endowment policy

8 405 8 406 407 408 409 8 8 8

Child Investment

Health Insurance

Life Insurance

It affects the basic cost of cover Health plan Save Tax Need analysis

Dictate the Rider Benefit should be recommended Child Plan Fluctuating income Understand about company

Helps to quantify the clients attitude to risk Life Insurance High Returns Introduction of agent

Influence the tax status Retirement Plan Protection Understanding the Customer

8 410

Naveen, aged 32 years, has taken money back plan. He is a teacher by profession. Naveen referred Prasad to Ram. Prasad is also teacher. Ram who is an agent advised Prasad to take money back plan as he is of same age (33 years). Is it the right advice? Why?

Yes, as Naveen and Ram are of same age.

No, customers needs are different

Yes, as both are teachers

No, as there is an age difference.

8 411 8 412 There is a relation between Age, Risk and Risk appetite. Which relation is most likely to be acceptable? Regular savings creates a fund to meet adverse incidents in future. For drawing a financial plan for savings needs of an individual without capital, what is the Fund which comes first?

Age increases, Risk increases and the Risk appetite increases

Age increases, Risk increases and the Risk appetite decreases

Age increases, Risk decreases and the Risk appetite increases

Age increases, Risk decreases and the Risk appetite decreases Education Fund By addition of Premium waiver rider to the proposed Endowment assurance plan A Government employee NA 4. Income protection 4. Long term needs. 4. Family and Employment details. 4. Neutral. 4. the superior 4. Employment stage

Retirement fund

Emergency fund

Fund for untimely death

8 413 414 415 8 8 8 416 417 8 8 418 419 420 8 8 Mr. Shanth is in his early 20s and has just started earning. His risk appetite is expected to be..... The younger the age of an individual..............their liabilities will be. Mr. Ramachandra's son Mr. Bharat has just employed as a software engineer, daughter Anusha has got married. Now Mr. Ramachandra is free from his burden. So Mr. Ramachandra is now in the ...................stage. Mr. Vinodh has lot of inconvenience to reach office every day. So he wants to buy an expensive car when he will have sufficient fund. Here Mr. Vinodh's need is............. Which are the two primary needs of any customer in any point of life? The concept of need based selling involves 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 prioritize first? The Central Bank has recently announced the decrease in interest rates. The prices of bonds are During the fact finding session as an agent you should follow which one of the following process? Amit is looking for term insurance plan for protection of his family, he is advised to approach to: What do you mean by Double Income Family? A Proposer asks for double death benefit in an Endowment assurance plan for 15 years. How his proposal will suitably be dealt with? A provision for superannuation is normally taken a high need to A person has 6 months of emergency funds.This is: During financial planning session if the agent finds out the following needs, which one should be given the top priority. Needs: Income protection, Childs education, marriage and emergency funds. Perceived needs are those. Need analysis involves identifying

By offering another Endowment assurance plan

By addition of Accident Benefit rider to the proposed Endowment assurance plan

By addition of Term assurance rider to the proposed Endowment assurance plan

a Public sector employee Reasonable 1. Childs education

an unmarried young NA 2. Marriage

A self-employed person NA 3. Emergency funds

1. Short term needs. 1. Financial provision to meet predictable and unpredictable needs. 1. high 1. the lower

2. Imagined to be important by Advisor. 2. Capacity to pay the premiums in future. 2. low 2. the higher

3. Imagined to be important by client. 3. Existing insurance plans. 3. normal 3. the smarter

8 421 8 422 423 8 8 424 8 425 426 8 8 427 428 8

1. Pre-retirement stage

2. Post retirement stage

3. Married with older children stage

1. Real need 1. Investment and retirement 1. Selling what company wish to sell.

2. Perceived need 2. Investment and Protection 2. Selling what adviser wish to sell.

3. Imaginary need 3. Investment and savings 3. Selling what customer requirement is.

4. Important need 4. Investment and life needs 4. Selling what IDRA wants company to sell. 4. Asset building nee4. 4. No change is likely. 4. Prioritize, Quantify & Identify Needs. 4. Liabilty Insurance 4. When the members of a family do not work at all. 4. All of the above

1. Retirement need. 1. Likely to increase. 1. Prioritize, Identify & Quantify Needs. 1. Property Insurance 1. When a person of the family is involved in double businesses or jobs. 1. Public sector employees

2. Tax planning need. 2. Likely to decrease. 2. Identify, Quantify & Prioritize Needs. 2. Life Insurance 2. When both the life partners are earning members of the family. 2. Private sector employees

3. Financial security need. 3. Will fluctuate. 3. Quantify, Identify & Prioritize Needs. 3. Health Insurance 3. When the income of a family is just the double of income of another family. 3. Professionals & Businessmen

8 429 430 8

In which of the following case there is no defined retirement age?

8 431 432 8

Which one of the following is true?

1. Every individuals income and expenditure pattern is same.

2. Every individuals income and expenditure pattern is different.

3. An individuals income and expenditure has no relation.

4. An individual should not keep in mind his income while planning his expenditure. too high

Ram has set a provision for contigency which can survive for 6 month .This amount is considered as

Adequate

Inadequate

too low

8 433 8 434 435 436 437 438 439 440 441 8 9 9 9 9 9 9 9 442 443 9 9 444 445 9

XYZ client wants to buy a car in future , however his financial planning shows that he cannot afford car as of now .As a financial planner you should

Explain him difference between real need & perceived

Young Married with no children and Which is suitable life stage to buy Unit linked insurance plan? Single income family X and Y are married, they are planning for estate planning, which life Young married with single income no stage do they belong to kids objective of fact finding Fact finding sheet allows the agent to Mr A has been approached by the Agent and on fact finding the score is 3 , this represents To ensure that the premiums are paid out of a legitimate source of funds cash is accepted With effect from 1st July 2010 all insurers have to disclose in the benefit illustration document the.. If the client accept the recommendation, then the agent should ask the client.. client need analysis Analyze customer needs Low Risk Taking Up to Rs 50000 Commission Pay to their agents To pay the premium

Explain him difference between Explain him difference between financial & non Explain him difference between important & short term & long financial need unimportant need term need Young Married with children and Young Married with no children and Double Young Married with children and Single income Double income income family family family Retirement Product Pitching Select the product High Risk Taking Up to 99990 Detail of charges To fill in the proposal form Consulting the clients parents Benefits of the products KYC document Annuity Plan Childhood for completing ACR Proof Moderate Risk Taking Up to 100000 Both of the above To ask the documents Consulting the family of the client Commission on the products Benefit illustration document Whole Life Plan Must try to convince the client to follow his recommendation Pre retirement Finding out Moral hazards Reference Zero risk Taking Without any limit None of the above None of the above Reviewing his existing investments NA Client benefit document Health Plan Must try to force the client to follow his recommendation Education All of them 4. Willingness to pay 4. Clarification Questions. 4. Lapsed policy details. 4. Recommend to take his own time to take a decision. 4. Personal and financial data sheet 4. D. Client benefit document 4. Clients business records

What should an agent do in order to understand the mental state of Fact finding client in respect to his investments in saving products During product recommendation the agent should explain the product The needs that came to fore in fact find in relation to process An agent was explaining to his customer the guaranteed benefits of the product. Which one of the following documents he would have Fact Finding document used to explain the same? Naresh is married and his daughter Sneha is 3 years old. Which plan Term & Children Plan can he take? Ask the client to fill the proposal form

9 446 9 447 448 449 450 451 9 9 9 9 9 452 9 453 9 454 9 455

If the recommendation of the agent has been rejected by the client, the agent should: Financial planning may not be taken as complete till inclusion of the predictable needs of the clients. It is likely to emerge from the incident of Which one is not an asset During Fact finding, rating is mentioned 3. This Indicates Which type of questioning is very useful to gather information from clients? Which is the not part of KYC norms? During the recommendation stage the advisor needs to...... In which of the following an agent will collect the customers Personal data, professional data and financial data Mr.Mohith, an agent was explaining to his customer the guaranteed benefits of the product. Which one of the following documents he would have used to explain the same? Mr.Harsha an agent wants do a thorough Fact Finding for his client to Mr.Kishan who is a business man. Which of the following information will be helpful to know about the earnings and Expense of Kishan?

Find out the reasons for refusal

Disability House 1. Risk apatite of client 1. Closed Ended Questions 1. Photographs 1. recommend the products that best meet the client's needs 1. Fact Finding Sheet

Unemployment House loan 2. His future aspiration 2. Open Ended Questions. 2. Proof of identity 2. recommend to wait some days to invest

Sickness Investment in shares and mutual fund 3. Commitment to need 3. Interrogative Questions. 3. Proof of address. 3. recommend the new product the company has recently launched 3. Customer Data sheet

2. Advisor Confidential Sheet

1. Fact Finding document

2. B.KYC document

3. C. Benefit illustration document

1. Clients Profits and Withdrawals from business

2. Clients Expense statement

3. Clients business details

9 456 9 457 9 458 9 459

As an adviser why is it essential for you to carry out the financial planning exercise with the prospective clients? 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? The objective of Fact Finding is to

1. Individuals understand their real needs and can prioritize them. 1. Objection handling skills.

2. Individuals have same financial needs at different stages of the life cycle. 2. Listening skills.

3. Individuals do not understands their real needs and cannot prioritize them. 3. Communication skills.

4. Individuals real and perceived needs are same. 4. Client information gathering skills. 4. Both identify clients needs & gather information.

1. Gather Clients Information only.

2. Identify only the clients needs.

3. To provide solution of companys choice.

To explain the benefits of a product, the insurance adviser should Amit & Rashmi are newly married. Both are working couple. They want to invest their savings of 100,000 annually to build corpus to make down payment for their house 5 years from now. An adviser sold than a unit link product to meet their requirement. This may result in To prove ones identity in accordance with KYC process, the customer needs to submit following document excluding .?

1. Provide the product brochure to the client.

2. Provide Benefit illustration documents to client.

4. Provide the 3. Provide the terms and conditions document website address to to the client. the client. 4. Financial burden on the couple.

9 460 9 461

1. Ruining the long term reputation of company.

2. Opportunity of new business for adviser.

3. Bad reputation of the individual adviser.

1. An Age Proof

2. An Identity Proof

3. An Address Proof

4. Education Proof 4. Discourse saving in a purposeful and need based manner. 4.Surrendering the existing policies for selling new one 4. Financial details Should close the discussion then & there Coming to mutual agreement with objective for Solutions One of the policy has higher Premium Y is Single Should avoid the topic From ticked column of proposal form Insurance companies get good branding Cost Partially Higher S.A No profits Will have impact in his commission 2014 After the product is recommended to the client

9 462 9 463 464 9 9 465 9 466 10 467 10 468 469 10 10 470 10 471 472 473 474 475 476 10 10 10 10 10 10 477 10 478

Vinod being an insurance agent can offer assistance to his client Ramesh by:

1. Providing him emergency fund.

2. Matching the product with Rameshs financial need.

3. Recommendation of product with highest return.

Objectives of fact-finding do not includeWhich one of the following documents distinguishes between Guaranteed and non-guaranteed benefits? After fact finding , Ram has presented the product to the client in te second meeting . If client approves the recommendation what should be the next xtep

1. Identify needs

2. Gathering client data

3. Provide for anticipated changes

1. KYC documents Ask the client to sign the contract of relationship

2. Benefit illustration documents Check the client's commitment to the need & continue with process

3. Fact-finding sheet Should take some more time to conclude the sale

Discuss with proposer about future life which of the following is the final stage of fact finding with the client? prospects and changes Completion of Proposal form a policy holder takes two insurance policy and the premium amount is identical and he gets lesser commission in one of contract the one policy has more SA ONE POLICY has more term reason is likely to be An agent reveals his commission received from insurance sales to X has brought other limited premium X&Y .Both plans are of same duration . Why is commission of X far Y has brought a single premium product product higher that that of Y Customer asks the agent to disclose the commission . The agent disclose on demand Not disclose should The best way to prove that customer of a ULIP policy is given awareness about the commission paid to the agent is Churning is bad , based on which aspect what over riding criteria an insurance agent consider while proposing a solution Sales Target is reduced . Churning will Higher persistency to the insurer ensures what ? Persitency =has increased from 82 % in previous year to 86 % this year . That means What key impact will the agent have in low persistency A customer surrenders his policy on Feb 2011. As per Agents code of conduct, an agent can get a new policy from this customer from Feb which year When should an agent disclose the commission which he will earn from the product which he is going to sell Ask the insurer to give a policy endorsement letter Agents earn Lower Commission on churning risk Increase More productivity more lapsation Increase more business 2011 From the fact details

Recommending Solutions one policy is a single premium

X is married Should call up the Insurer From signed copy of benefit illustration Policyholders suffer due to surrender charges and benefits Flexibility Will not affect Higher Profits less lapsation Will improve reputation 2013

Policyholder gets more benefits suitability Decrease Higher attrition more attrition Increase in the agents earning 2012

When the customer asks him

After the fact finding process

After quantifying the need

479 480

10 10

What is the disadvantage to the insurer in case the persistency falls A low persistency ratio for the insurance company means that:

Lower profits The customers are satisfied with the products

Higher profits The company is acquiring more business and new customers

NA A large numbers of policies have lapsed / surrendered resulting in loss of profit Ask the proposers doctor to send details to the insurer Should ask for a future date from the client Give a child plan and revisit the client on a later date

NA The company will not declare bonus Respect this confidentiality by not disclosing it to anyone Should review once again Give the lead to another agent Pass on to the other agent Offering premium collection facility to client

10 481 482 10

10 483 10 484 10 485 486 10 10 487 488 10

If a person already suffering from some disease and had not Notify the insurer of this matter Refuse to act for the customer benefit mentioned it in the proposal form then as per IRDA code of conduct the agent should If the client does not wish to proceed with the recommendations right Should ask for the reason for not going with the Insist on taking the product right away at the moment the agent should recommendation During a fact finding process the need analyzed were income replacement and childrens education. But the customer insists on Do the fact finding exercise again Insist with the client to take a term plan only a child plan for the time being and asks the agent to give him a child plan. The agent should. After doing the need analysis of the client, the agent advised the Enquire about the refusal from the client to opt for TROP product. But the client refused. According to Suggest an alternative plan client ethical business practices what will the agent do ? Which of the following act from agent will be specifically useful in case of annual premium policies compared to monthly mode policies As per the IRDA circular an insurance agent If the agent recommends the client to terminate an endowment plan and take a whole life in order to earn higher commission its termed as A low persistency ratio for the insurance company means that: An agent offered his client that 75% of the first premium will be paid by him out of commission. This offer of rebate on premium will be treated as Persistency can be improved by: Remuneration to Agents includes Mr. 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 Mr. Gayaram. This is called as An insurance agent is intermediary between. What is the factor which has influence on persistency? For an insurance advisor churning is.............practice Which one of the following factor does not help in the Persistency ? Mr. David an agent had helped Mr. Srinivasan to take an endowment policy on Feb 200As srinivasan was finding it difficult to pay the premium, Mr. David had advised him to surrender this policy and to apply for a lower premium policy. This is called as ? Explaining charge structure need not disclose the amount of commission Switching The customers are satisfied with the products a kind of gift for purchasing insurance products Providing service to the clients 1. First Year Commission Issuing reminders need to disclose the amount of commission Doing a financial planning The company is acquiring more business and new customers a rebate on the price amount like other sales NA 2. Renewal Commission.

Pass on to the superior

Offering credit facility to client

needs to disclose the amount of commission Should not disclose on demand Churning A large numbers of policies have lapsed / surrendered resulting in loss of profit a breach of IRDAs code of conduct NA 3. Both of the above. Fact Finding The company will not declare bonus a breach of a provision of the Insurance Act,1938 NA 4. Salary and Reimbursement. 4. Shifting. 4. Insurance and Reinsurance company. 4. All of the above. 4. appreciable 4. Continuous servicing of the policy 4. Claiming the policy 4. Agent will be qualified for the contest 4. Customer will complain to Ombudsman 4. When the maturity/claim is settle4. 4. Should do nothing. 4. When the client is enjoying good financial status.

10 489 490 491 10 10

10 492 10 493 494 495 10 10 10 496

1. Switching

2. Churning

3. Redirecting.

1. Client and Insurance Company 1. Role of Agent 1. good 1. Regular reminders about the premium to the customer

2. Insurance Company and IRDA 2. Product Design. 2. bad 2. Flexibility of Premium payment to the customer

3. Client and IRDA 3. Policy Servicing 3. compulsory 3. Dispatching Discharge voucher to the customer

10 497 10 498 10 499 10 500 501 10 10 502

1. Churning of the policy

2. Surrendering the policy

3. Switching the policy

Mrs. Hansa an agent, has planned to sell maximum products within a 1. It will benefit both the company and short span of time by giving maximum rebates to the customer to the customer complete the contest target of the company. Mr.Raghav is an expert in fact finding .Mr.Raghav helps his brother in 1. Raghav will be promoted to the next his job by sharing the information of his clients after the fact finding level he does to procure insurance. What will be the outcome ? The agents duties and responsibilities ends When client declines the recommendation by the insurance adviser even after resolving the concerns, the adviser should Under what circumstances the surrender of a policy should be recommended by the agent? 1. When the clients policy is issued. 1. Persuade the client to purchase the policy. 1. When a client have been sold the right solution.

2. Reputation of the company will be high due to offers to the customer

3. Agent will be terminated

2. Raghav will be terminated

3. Raghav License will be cancelled

2. When the clients needs have been established. 2. Should ask for reference who might be interested in financial planning. 2. When a client is holding a product having good value for money.

3. When the nominee has changed. 3. Should never approach the client ever again. 3. When the policy has been mis-sold and do not match his needs.

503

10 10

What key benefit high persistency ratios have on insurance adviser? Under which one of the following acts the maximum remuneration that can be given to insurance agents described? Which one of the following is not a benefit of persistency?

1. High renewal income. 1. Income Tax Act 1. Helps the client in achieving goals

2. Less renewal income. 2. Indian Contract Act 2. Reduction in costs

3. Fewer client bases. 3. Insurance Act 1938 3. Increased client satisfaction

4. Unsatisfied clients. 4. IRDA Act 1999 4. Decreased revenues 4. Should advised him to surrender all the polices which are not buy from satish. 4. Introduction of a new insurance product or a change in a clients Circumstance Report to the senior and seek his Guidance Surplus decreases

504 505 10

10 506

Satish as an insurance advisor while recommending to his client Ramesh is not suitable policies

1. Satish should check the Ramesh s commitment to the needs

2. Satish should outline the reasons for recommendation for a particular policy

3. Satish should check the acceptance or rejection of the recommendation.

10 507 10 508 509 10 10 510 10 511 512 513 514 515 516 10 11 11 11 11 11 517 518 519 520 11 11 11 11 521 522 523 524 525 11 11 11 11 11 526 11 527 11 528

Why a building long term relationship with clients is necessary?

1. A satisfied client may be the source of other potential clients

2. Reviewing financial needs and plans are necessary with changes

3. Agent has the option to recommending highest commission at any time.

As per agents code of conduct,Agent Recommends protection Plan,but the client insist on investment plan for the financial planning,what an agent should do! Insurers observe high persistency ratio,then

Recommend both the plans policy reserve increases

Propose an investment plan and discuss with him regard to discomfort of term plan Reserve decreases

Refuse to act with client Remains constant Proceed with agreed need and document the rejection Ask his Supervisor and clarify Due to the profile of the customer 30 days 12 years 7.20% 20 days Death was due to Accident 120 days Claim Claim not admissible 30 days 15 days from the receipt It was lost. It was lapsed. Fraud Premiums paid or not

After clearly identifying 2 needs from fact finding, client agrees to go for one and gives the reason, what should the agent do now Do a fact finding again Nikhil was in the process of closing a unit linked plan sale and the customer put a query which Nikhil does not know. What should Nikhil Decline to act for the client do? While on sales of an Insurance plan Mr. Had to show his license What is the maximum Time in which The insurer should settle a claim when all documents are submitted A missing person is considered to be dead after 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 claim was submitted & in how many days company should ask for additional documents if required Vivek takes insurance policy and dies after 8 months . If the claim needs to be excluded basis the exclusion cause what could be the cause According to IRDA guidelines, how long does an insurance company have to complete its investigation of a claim Indisputability clause can be enforced by the insurance company during the Incase of presumption of death If a valid claim is delayed by the insurer then the interest for the same will have to be paid by the insurance after how many days from the date of admission of the claim? Under the IRDA guidelines for Claim settlement, any queries or additional documents can asked from the claimant within A claim was paid in a policy and it was advertised in the newspaper also. This indicates that the policy was. An indemnity bond was signed in a policy when the claim was paid. This indicates that the policy was. Due to the category of customer 3 days 5years 7% 15 days suicide 30 days First five years of policy Not necessary to pay premium until court decree 10 days 5 days from the receipt It was assigned. It was lost.

Refuse to proceed Direct him to the product booklet the customer demanded 15 days 8years 9% 10days murder 90 days First Two years of policy Necessary to pay premium until court decree 20days 10 days from the receipt It was paid up. It was paid up.

Get second opinion Ask the client to put the query in writing NA 10 days 7years 8% 30 days Body not found 180 days Inception of the policy NA 60 days 20 days from the receipt It was surrendered. It was surrendered. None of the above NA

Misrepresentation Lack of insurable interest Which of the following falls under voidable contract? As per claims assessment process if a claim arises within a few days of the start of the policy which factor should the insurer check in the Age admission Disclosure of material fact first place? Ajay has bought an endowment insurance plan with a cover of Rs. 10, 00,000 for a term of 15 years. Ajay died after 4 years. Insurance Normal Fraudulent company will not treat this claim as ________ claim. Ranjan took out a 20 years Money Back plan on his own life 5 years ago. Survival benefit was due on 4.5.2011. Ranjan died on 6.5.2011 Survival claim will not be paid and only Both the survival claim and the death claim will without receiving the survival benefit amount. What will be the death claim will be paid to the Nominee be paid to the Nominee legitimate procedure to pay out the claim?

Early

General Bothe claims will be paid to the Legal heirs

Survival claim will be paid to the Legal heirs and the death claim to the Nominee

11 529 530 11

A life assured died after 40 days from the payment of his monthly premium. If there be any claim, how the claim will normally be dealt with? Which of the following falls under voidable contract? After maturity In a Unit Linked Life Insurance Policy, customer does not get received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity plan Incase of presumption of death What is meant by a claim under insurance policy? Who will take the initiation to settle the maturity claim process?

A regret letter will go intimating that nothing is payable as death claim 1. Misrepresentation

Full sum assured will be paid as death claim

Paid up value, if any, will be paid as death claim 3. Fraud

2. Lack of insurable interest

Full sum assured less deduction of unpaid premium will be paid 4. None of the above 4. Policy was lapsed on the time of maturity 4. Depends on case to case 4. All of the above. 4. Insurance company 4. Enquiry will be done if death happens before one year from policy inception date. 4. Unnatural death claim 4. Rider benefit claims. 4. 8 years 4. If the claimant does not come within a month the entire maturity amount will be forfeited. 4. Total 7 lakhs will be paid without any deduction. 4. The insurer completes the enquiry. 4. The claim is an early claim. 4. There is no nomination. 4. There is no insurable interest attached to the policy. 4. forfeited the Premium 4. will be Payable to Saanvi (Nominee) at the age of 18th 4.Coroners Report

11 531 532 533 534 11 11 11

1. He has switched his fund

2. He has opted for Settlement option

3. He has he has redirected his past premium.

1. Not necessary to pay premium until 2. Necessary to pay premium until court decree court decree 1. A demand to fulfill the policyholders 2. A demand to fulfill the insurers obligations. obligations. 1. Client 2. IRDA

3. Claim not admissible 3. Any demand made by the policyholder on the insurer. 3. Advisor

11 535 11 536 537 538 11 11

Which is the right statement regarding claim enquiry?

1. The insurance company makes enquire only on death claims.

2. The insurance company makes enquire on maturity claims only.

3. Enquiry will be done on both Maturity and Death Claims.

Mr. Chintamani has taken a policy from ABC Company on 2nd March 2010, but unfortunately he died on 18th August 201 His death claim is considered as.......... Detailed Investigation will be triggered in case of...... In insurance, if a person is not heard for .......years his is presumed to be dead.

1. Normal death claim 1. Maturity claims 1. 5 years

2. Early death claim 2. All death claims 2. 6 years

3. Abnormal death claim 3. Early death claims 3. 7 years

11 539 11 540 11 541 11 542 543 11

In the process of settling maturity claims....

1. the company will wait until the claimant comes to office to demand the claim

2. the process is initiated by the company well in advance of the maturity date

3. it is the responsibility of the claimant to approach the company

Mr.Baskar had taken a Term plan for a sum assured of Rs. 7 lakhs. He also has an ADB rider worth Rs. 4 lakhs. Unfortunately Baskar died in a car accident. How much will be the death claim settlement? Insurer will not pay the claim unless Aman has taken a term plan for 20 years. In the 3rd year he suffered financial crisis due to which he was unable to pay premium within grace period and died after 1 month. The nominee files a claim and is rejected because When a policy is lost, insurance company take utmost care while settling maturity claims because What key event is most likely to make an insurance contract not a valid contract?

1. Total 7 lakhs will be paid as death had taken place

2. Total 4 lakhs will be paid as death had happened due to car accident

3. Total 11 lakhs will be paid

1. The policyholder makes a demand.

2. The nominee makes a demand.

3. The event insured against happens.

1. The policy was not in force.

2. This condition is excluded in the policy.

3. The claim is fraudulent.

1. The claim may not be genuine.

2. The policy may be pledged. 2. Representation of facts by the policyholders is true. 2. Legal heir of life Assured

3. The facts were misrepresented.

11 544 545 11

1. The circumstances are legitimate.

3. The life assured is major.

11 546 547 11 11 548 11 549

On foreclosure, if Death claim arises before the payment of the 1. Nominee surrender value, the payment would be payable to: Gaurav is working in MNC at the age of 32 bought an Endowment Plan. He had nominated his 1 year old daughter Saanvi, but not able to get the Signature of her appointee due to unavailability of his 1. Nominee only spouse .after 5 year. He died in road accident, now claim money would be payable to: Which one of the following report is not considered in case of Pankaj 1. Policy first information report. Bought a plan in 2009 & died in road accident in 2011 : Insurer has deducted Rs 3000 from the death claim of Ram. What could be the reason for deduction when all the due premiums were paid Paid up option Two policy Matures at the same time for an insurance company,what are the other requirment for maturity with respect to policy.A is absolute assignment and B is conditional assignment.pending requirment in relation with B A loan and interest is outstanding

3. Debotrs

2. Legal heir of the life assured

3. Appointee Only

2. Advisor confidential report

3. Post Mortem Report.

Lien

Commutation

Loan Facility

A loan amount and oustanding premium is pending

A outstanding premium is pending

A sign on discharge form

550 551 552 553 554 555 556 557 558 559

11 11 11 12 12 12 12 12 12 12 12

Maturity benefit is equal to Sum assured plus reversionary bonus minus ? Persistency bonus In a non life policy, the person who is authorised to process the mediclaim is known as Underwriter Maturity benefit is equal to Sum assured plus reversionary bonus minus ? Claim within 1st anniversary An advisor while explaining the policy and to sell he accepts to give a 10% part of his Agents commission, what is th limits Consumer Forum at district level will hear complaints up to 20L How much is the rebate allowed by IRDA to client Nil the controller of insurance in india is A insurer advertises through daily news paper . What type of marketing is Investment by NRI(Non Resident Indian) will be MWP- If the policy is endorsed under MWP - then the beneficiaries are wife and ? If the license of an agent has been disqualified by a designated authority in 2010 then the person can apply for a license in which year IRDA cross selling No risk parents 2013

Outstanding premium + interest Third party administrator Claim within 1st calendar year 20% 40L 5% RBI direct selling Low risk ex wife 2015

Outstandin premiums Actuary Claim befor the valuation date He cannot offer any commission 1Cr 10% SEBI Solicitation of Policy Medium risk children 2017 Claim after the valuation date He can offer up to 50% 10L 35% Insurance ombusdmen Brand building High risk mother 2020 If the agent is doing more than 3 policies in a month.

560 12 561 12 562 563 564 565 566 12 12 12 12 12 567 12 568 569 12 12 570 12 571 12 572 573 574 575 576 12 12 12 12 12 577 578 579 12 13

When can an insurance company give more than 35% first year commission? An agent recommends a term plan in keeping with the ethical standards since it was suitable to clients needs. In such a case what is the percentage of commission which he can rebate so as to beat the competition _____ controls monetary system in India In MWP Act Policy, claim is paid to Which is the 2 stage in Money Laundering? According to IRDA regulations the maximum percentage of first year commission to be paid to an insurance advisor is............. In the case of agent's death, the commission payable will be paid to.........
nd

When the insurance company is in the first 10 years of operation

If the agent has worked with the company for more than 5 years

If the agent has worked with the company for more than 10 years

Maximum 10% RBI Nominee 1. Layering 1. 30 % 1. his legal heirs

Half of the commission IRDA Assignee 2. Placement 2. 35% 2. to his nominee

Cannot rebate at all SEBI Trustee 3. Integration 3. 40% 3. will stop automatically

2% Constitution Policy holder 4. Amalgamation. 4. 45% 4. Paid in lump sum to the survivors. 4. Section 34 of the Insurance Act 1932 4. Central bank of country 4. License section of insurance agent act 1938 4. D. Protection of claim settlement regulation 2002 4. Representatives from Insurance institute of India 4. Insurance Acts code of conduct. 4. The administrator. 4. Actuary. 4. Married Daughter

Issuance of a license to a person has been stipulated in................Act 1. Section 43 of the Insurance Act 1939 Which official body decides to increase the interest rates? Which one of the section deals with the licensing of an agent? 1. Central bank of India 1. Section 42 of the insurance act 1938 1. Protection of Policy holder Interests regulation 2002 1. Representatives from all insurance companies 1. Companys code of conduct. 1. The Life Assured. 1. Insurance Company. 1. Married Woman

2. Section 42 of the Insurance Act 1938 2. Reserve bank of India 2. Section 42 of the insurance act 1936

3. Section 12 of the Insurance Act 1922 3. Reserve bank of country 3. License section of Insurance act 1938

Which regulations take care of the settlement of claims ?

2. IRDA claim protection regulation 2002

3. C.IRDA policy settlement regulation 2004

Which of the following team represents the members of GBIC ? Rahul is a licensed insurance agent. As agent he must carry out his role in accordance with Under Married Womens Property Act, 1874 a policyholder is Who has the authority in insurance company to issue/cancel the agents license Married Womans Property Act 1874 provides that a life insurance Policy that has been taken out by: Premium Income earned by an agent holding a composite license is 600000. What is the max contribution of one organisation

2. Representatives from all government bodies

3. Representatives from IRDA

2. IRDA Acts code of conduct. 2. The beneficiaries. 2. Designated Person. 2. Married Man

3. IRDA Regulations code of conduct. 3. The trustee. 3. Branch Operations Team. 3. Married Son

60000

1.5 lac offence had a punishment of less that 2000 Insurance council of India

1.2 lac atleast 5 yrs hav passed since the sentence Insurance institiute of India

3 lac exception IRDA

License criteria,crimnal offence in the past.given IRDA license.Why? he was less than 21 at that time Mr.Sunil is doing premium calculation for his company, as per which Council of Actuaries authority is his profession related to

13 580 581 13 13 582 13 583 584 585 13 13

basic qualifications of agent Which Institution was Constituted by Insurance Act 1938 What is the role of National Insurance Academy? According to IRDA act 1999, central governments involve in insurance industry over Who is a regulator, supervisor and monetary authority of the financial system in India The insurance act of 1938 created which of these.

sound mind & graduate Insurance Institute of India To regulate

sound mind & good income level Life Insurance Council To advise Government

Age and income level Insurance Broker Association To undertake training activities

Policy matters IRDA IRDA

complex technical issues SEBI Tariff Advisory Committee

Promotional activities RBI National Insurance Academy

His contacts in the market to solicit Insurance General Insurance Council To Advertise globally on Indian Insurance Licensing of Insurance companies SBI LIC Insurance can price their product on their self past experiences. Regulate the investment of funds by Life Insurance company NA Can make changes in IRDA law 51% Underwriter Describe the benefits which do not match the policy provisions Repository CII Mean Disposition Residence Time Rs.50000 Indian Contract Act,1872 Any of them for 5 years since completion of the sentence imposed All of them. Regulations of IRDA a behavior that is based upon the moral judgment of an individual NA 4. Insurance Institute of India. 4. 1947

13 586 De- tarrification is a process by which pricing of Insurance

Rises

Decreases

Reaches at a level as per industry trends

13 587 588 13 13 589 13 590 591 13

What is the key function of NIA

Provide suggestion for Premium calculation

To be an active link between Global market & Indian Life Insurance Industry

Design, implement and operate an insurance training

Basing on which criteria the qualification of Agent is determined? If IRDA is unable to discharge its functions or duties, Central Government Under the prevailing FDI laws for insurance, domestic private companies are allowed to form joint ventures with foreign partners. What percent of stake can a foreign partner hold? Rahul is appointed as director of life insurance company, he cannot be an

Address of the agent Has the power to supersede the IRDA by issuing notification. 20% Insurance Advisor It contains only statements that mention the agents name, logo & phone number. Regulation IRDA Million Dollar Round Table Rs.20000 IRDA Act,1999 Rs. 300 for life

Domicile status Has the power to supersede the IRDA by issuing a bill in parliament 26% Nodal officer He can design the advertisement without the concern of insurer. Redressal Insurance Company Major Double Rupees Tag Rs.25000 IRDA Regulations, 2000 Rs500 for 10 years from the date of disqualification To present statement of IRDA act in Parliament Market competition

NA Has the power to supersede the IRDA by issuing draft 49% Chief actuary Were all his information published to enhance his business. Research Life Insurance Council Major Dollar Round Tag Rs.5000 Insurance Act,1938 Rs 1000 for 7 year from the date of judgment

13 592 593 594 595 596 13 13 13 13 13 597 598 13 13 599 600 13 13 601 13 602 603 13 13 604 605 13

An agent is not required to obtain the prior approval of the insurer before placing an advertisement when: The Institute of insurance and risk management along with insurance education does what more Pricing element is done by What does MDRT Stand for? As per AML regulation, it allows cash premium not over than Which Act or Regulation provides that the Renewal commission is payable to the legal heirs of the Insurance agent in case of his death? Agent offering rebate may be fined If an Insurance agent is found guilty of breach of trust, he will be disqualified to act as an insurance agent. The disqualification stands valid Central govt has authority of Direction to IRDA on It is the bounden duty of the Insurers to protect the interests of their policyholders from proposal acceptance to claim payment because of the

Policy matter Behavioral requirements of EGovernance a behavior that is based upon the positive judgment of an individual Research 1. Insurance Regulatory and Development Authority. 1. 1956

May issue notification Requirements of the Life Insurance Council

In the context of IRDAs code of conduct, the term Ethical behavior can be best described as IIRM is in areas of education and Who controls and regulate the rates, advantages, terms and conditions that may be offered by insurers in the respect of general insurance business. The Insurance Institute of India (III) was formed in.....

a behavior that is based upon the legal judgment of an individual NA 2. Reserve Bank of India. 2. 1999

a behavior that is based upon the ritual judgment of an individual NA 3. Tariff Advisory Committee. 3. 1955

13 606

Which council among the following focus on creating a positive image of the insurance industry and would also like to enhance the Consumers confidence on the same ?

1. Life insurance council

2. Consumer insurance council

3. National Insurance council

4. General insurance council

13

Mr.Varun taken up his agency in July 5th 200 His lost his IRDA license while travelling. His agency has also expired. What is the solution for Mr.Varun ?

1. Need to complete 25 hours of practical training and paying Rs.50 for the issuance of duplicate license

2. Need to complete 50 hours of practical training and paying Rs.100 for the issuance of duplicate license

607 608 609 610 611 612 613 614 615 616 13 13 13 13 14 14 14 14 14 14 617 14 618 619 620 621 622 623 624 625 14 14 14 14 14 14 14 14 626 14 627 628 629 14 14 Which organization was formed with purpose to promote insurance education and training in India? The face of the life Insurance industry in India is ..? For Insurance industry which association to take steps to Develop Education and research in insurance? Which is the body who provides grant to Insurance Regulatory Develompent Authoruty to carry out activites. Complaint council bodies other than IRDA grievance readdress forum & COPA What are the ways by which a policy holder can make complaints what are the ways in which IRDA can be contacted . One is thru toll free number and other is what is the maximum level of complaint that can be considered and taken action by ombudsmen What is the period of award passed to the customer decided by ombudsman? Raju is a certified license holder under what circumstances he needs to hold his certified license with him that is issued by irda 1. Institute of Actuaries of Indi1. 1. Life Insurance Council 1. Life Insurance Council RBI Ombudsman email email 20 lac 2months under all circumstances 2. National Insurance Academy. 2. Life Insurance Corporation 2. Life Insurance Corporation LIC Insurance Institute of India Toll free No. Insurance ombudsmen 25 lac 3 months when he sells term insurance

4. Need to complete 50 hours of IRDA 3. Need to complete 25 hours of practical training and paying training and paying Rs.100 for the issuance of Rs.50 for the duplicate license issuance of duplicate license 3. Chartered Insurance Institute. 3. Insurance Regulatory Development Authority 3. Insurance institute of India Central Government Insurance Association Newpaper visiting regional office 30 lac 5 months when he represents himself as another insurer He has to explain the reasons for rejection to the customer NA 50,00,000 All insurer Insurance Association Three years 20 days Some life and non life Sebi 4. Insurance Institute of India. 4.Insurance Institute of India 4. Insurance Institute of India SEBI FERA Email or Toll free Number Through Agents 50 lac 6 months when he sells pension policies He takes up with the higher authorities NA 1,00,00,000 It is optional Insurance Institute of India Five years 25 days By all insurers. Life Insurance Council

A policy has been rejected by the company under direct intimation to he has to inform the customer that the the customer and copy to the Agent, what is the next action of the co has broken relationship with the Agent customer Where one can approach in case of dispute IRDA The Authority of COPA is limited to what amount at the district level. As per Regulation for protection of Policyholders interest 2002 (IRDA), Which insurer will have a grievance redressal System Which regulatory body has created a call center for logging a complaints of insurance Customers Within how many years a complaint can be made through consumer protection act. Insurance companies are required to honor the awards passed by the Insurance Ombudsman within how may days As per IRDA regulations IGMS should be mandatory set up by For the customer whose claim has been refused by the company, the three places where he/she should follow up are Ombudsman, IRDA Customer Grievance Cell and .. What is the stipulated time frame within which an insurer is supposed to respond after receiving any communication from its policyholders? The functions of the Insurance Ombudsman include: If a case is already before the consumer forum, then the ombudsman should Generally insurance companies do not hold the premium in case of a fraud or misrepresentation. However, due to which of the following circumstances the insurer can retain the premium of the policyholder A policy holder is not satisfied with the services of the insurer and complains to ombudsman. In how many days from receipt of the complaint the ombudsman should pass the recommendation. The guidelines for annual assumed growth rate are given by AML Program of every insurer to include _______________, apart from Procedure, Training and audit. 10,00,000. Some Specific Insurer Life Insurance Council One year 10 days Only by few selected insurers Consumer Forum

he plans to change the plan Consumer Forum 20,00,000. Those Insurer who did not created Insurance Ombudsman System IRDA Two years 15 days Only by non life COPA

24 hours Conciliation and making awards Give a recommendation

1 day Counseling Give a joint decision with the consumer forum

10 days Repudiation of claim Dismiss the case

30 days Evaluating claim settlement Give an award. Pending decision from Ombudsman

14 630 14 631 632 633 14 14

Fraudulent claim

Indisputability clause

Redressal procedure

6 weeks Life Insurance Council Inspection by IRDA

1 month IRDA Audit by Finance Ministry

2 months Actuaries Appointment of Principal Compliance Officer

6 months Underwriter Inspection by Auditor General

14 634 14 635 636 14 14 637 638 639 14 14 14 640 14 641 14 642 14 643 644 14 14 645 646 14 14 647 15 648 649 650 15 15 15 651 652 653 15 15

Ravi was expecting a claim amount of Rs. 12, 00,000 from insurer. But it was rejected. He feels that it is repudiated on wrong reasons. Which consumer forum can he approach? For redress of grievances of the policyholders, a number of Authorities have been formed. Which of the Following authorities has been empowered to hear the complaints and adjudicate? How many ombudsmen offices located in India? What the name of department that is established by IRDA to deal with customer complaints? The insurance ombudsman has been appointed to protect the interest of....... The charges were not fully disclosed to the customers" is a common complaint against..... If any consumer is dissatisfied with the customer care cell of any insurance company to whom they can escalate their grievances. Which is the Regulation that insists that all the insurance companies should provide the information about the insurance ombudsman of that region while sending the policy documents. A client demands the information on the current status of a policy indicating accrued bonus. The insurer should provide communication within To ensure that the customers complaints are handled effectively, IRDA has established Insured can contact to seek the resolution of grievances they have against insurer to IRDA through: Parvesh bought a policy an endowment plan but after one year insurer. Found he had Aorta Surgery .now which will apply by insurer: How Many offices of Ombudsmen the Government body has set up to Resolving insured customers grievances. If there is no agreement or settlement and the recommendation is also not acceptable to the complainant, in this case the Ombudsman will grant an award If the agent recommends the client to terminate an endowment plan and take a whole life in order to earn higher commission its termed as Unethical behavior can affect the reputation

National Commission

District Level

State Level

Mandal Level

Insurance Ombudsman 1. 10 1. Customer Complaint Department (CCD) 1. policyholders 1. IRDA 1. Nodal officer

Consumer Grievance Redress Forum 2. 12 2. Customer Grievance Department (CGD) 2. shareholders 2. Agents 2. Grievance call center

Consumer Affairs department 3. 14 3. Consumer Affairs Department (CAD) 3. insurers 3. Shareholders 3. Compliance cell

IRDA 4. 15 4. Consumer Protection Department (CPD) 4. General insurers. 4. Underwriters 4. Compliance officer 4. Compliance Regulatory 4. 30 Days. 4. Consumer Affairs Department. 4.Complaints@irda. gov.in 4.Utmost good faith apply 4.16 if the insurer decides to proceed legally NA Insured person NA Tax concession opportunity could be lost forever 4. All of the above. 4. Churning.

1. Policyholder grievance Regulation

2. Policyholders Protection regulation

3. Ombudsman Regulation

1. 10 Days. 1. Integrated Grievance Management System. 1.Complaint@gov.ird1.in 1. Indisputability Clause (Section 45) apply 1.15 If it is acceptable to the complainant

2. 15 days. 2. Internal Grievance Redressal Cell of the Insurer. 2.insurancecomplaints@irda.gov.in 2.Principal of Indemnity apply 2.12 if it is acceptable to the insurer

3. 20 Days.

3. Grievance Redressal Officer. 3.irdacomplaints@gov.in 3.Lien Clause 3.14 if the complainant decides to proceed legally

Switching

Doing a financial planning Insurance Agent It will bring a smaller premium Excessive Premium 2. Behavior that is based upon the moral judgments of an individual 2. Under selling of Insurance policies.

Churning Insurance company Tax exemption will be lesser SA ceased too early 3. A study of what makes ones own actions right or wrong. 3. Explaining all details of the policy to customer. 3. professional

Insurance Agent & company It might fell short of actual needed and Underselling life insurance comes under unethical practices because family would suffer The main reason why an agents act of underselling insurance is treated as a unethical behavior is Ethics can be defined as Which is not unethical behavior in below statements? Benefit could fall short of the financial liabilities 1. Those values we commonly hold to be good and right. 1. Over selling of Insurance policies.

15 654 655 15

Mr. Sharma is a newly recruited insurance advisor. To meet his month target he explains only the good points of newly launched plan to his customer. Here Mr. Sharma's behavior is............ The code of conduct has been prescribed in India by........... Shankar, an adviser, sold a term insurance policy and unit-linked insurance policy (ULIP) to Amar, the client, who is unmarried and has no dependent. Consequently, Shankars action can be termed as

1. ethical

2. unethical

4. Perfect. 4. Government of India. 4. Ethical practice by an adviser. 4. SEBI. 100% more transparetn NA

1. IRDA

2. Insurance Council

3. Insurance Institute of India

15 656 657 658 659 15 15 15 9 660

1. Underselling of insurance policies.

2. Churning.

3. Overselling of insurance policies.

Pankaj being a license insurance advisor has to follow code of 1. Insurance Regulatory Development 2. Life Insurance Company Conduct provided by: Authority 25% 50% In case of term plan the premium for CI rider shall not exceed Reduced target of agent will have what impact on churning more likely less likely An agent does 6 lacs of new business premium /Income in a year. He is a composite agent. What is the maximum Premium/Income he can NA earn from 1 insurer?

3. Reserve Bank of India 75% less transparent NA

Correct Ans / option 1 3 4 2 1 3 2 2 4 3 1

1 1 3 2 4 2 1

3 2 1 2 2 3 2 3 2 3

4 3 1 2 2 4 3 3 2

2 1 2 3

2 1 4 4 1 2

3 2

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2 1 2

4 2 1 2 3 1 1 4 3 2 2 2 4 2 2 2 1 2 2

4 4 4 3

4 2 2 1

2 3 1 4 2 4 4 4 3 4 4 2 3 4

1 3 1 3 1

1 2

1 2 4

3 1 3 4 4 4 1 3 1 1 3 4

3 3 1 1 2 2 2 2

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3 1 3

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2 2 3 2 4 2 1 1 2 1 2 1 4 3 3 3 2 1 1 3 4 4 3 2 1 2

1 4 3

1 3 3 1 1 1 4 1 1 2 3 4

1 2

1 1 3 2 4 1 3 1 2

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3 3 4 1 2 2 4

1 2

4 2 1 2 3

1 1 3 3 2 2

1 2 3

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4 2 4

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4 3 1 1 1 1 1 1

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3 2 2 2

4 1 1 3 1 1 2 1 1 3 1

4 2 1 2 4 1

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1 3

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1 3 4

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3 2 3 4 3 1 1 4 2 2 3 3 3 1 1 2

2 2 4

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2 2

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2 2 1

3 3 2 2 NA

3 1

1 2 3

3 3 2

2 1

2 1

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4 1 1 3 1 4 1 1 2 1

3 2 2 3 2 2 2 4 1

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4 4 1 2 1

3 1 1 1 4 3

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9C RING

9 27 18

10 5

6 18 12

B C BP D C

16MM 12 10 8

3000 35 35 38 290

9000

47.8 47 48 49.5

12690 8910

4700 2475

8460 5940