IC 33 Exam Questions

1. How are perils and hazards normally distinguished under term insurance policies?
A. Perils are medical factors which influence the risk of dying and hazards are lifestyle activities
which influence the risk of dying.
B. Perils are risks that policyholders will die before a specified date and hazards are factors
which could influence that risk.
C. Perils are factors which affect the risk being insured and hazards are the size of the risk being
insured.
D. Perils are factors which could influence an insured event occurring and hazards are the actual
events which will trigger a payout

2. In the context of financial planning, how is the difference between real needs and perceived needs best
described?
A. Real needs are financial needs and perceived needs are non-financial needs.
B. Real needs are actual needs and perceived needs are based on a clients thoughts and desires.
C. Real needs are identified by the insurance agent and perceived needs are identified by the client.
D. Real needs are needs which satisfy an objective and perceived needs are needs which do not
satisfy an objective.

3. If a person is concentrating more on health plan and retirement plan then at which stage of life is he in.
A. Young unmarried
B. Young married
C. Young married with Kids
D. Pre retirement

4. The Institute of insurance and risk management along with insurance education does what more
A. Regulation
B. Redressal
C. Research
D. Repository

5. If the client does not wish to proceed with the recommendations right at the moment the agent should
A. Insist on taking the product right away
B. Should ask for the reason for not going with the recommendation
C. Should ask for a future date from the client
D. Should review once again

6. 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?
A. Term Insurance Plan
B. Endowment plan
C. Return of premium plan
D. Pension plan

7. A claim was paid in a policy and it was advertised in the newspaper also. This indicates that the policy was.
A. It was assigned.
B. It was paid up.
C. It was lost.
D. It was surrendered.

8. An indemnity bond was signed in a policy when the claim was paid. This indicates that the policy was.
A. It was lost.
 B. It was paid up.
C. It was lapsed.
D. It was surrendered.

9. 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?
A. Marriage.
B. Savings.
C. Education.
D. Protection.

10. While calculating HLV along with future income, no of years of work, increments in salary what is also to
be taken in to account?
A. Inflation.
B. Interest.
C. Discount rate
D. Compounding.

11. If RBI increases the interest rates then what will be the effect on share prices.
A. Shares will be more attractive.
B. Shares will be less attractive.
C. Fixed deposits will be more attractive.
D. Fixed deposits will be less attractive.

12. Vishal and sandeep applied for a health plan in XYZ Life Insurance Company. Vishal is asked to undergo a
medical checkup but Sandeep is not asked to do so. What will be most possible reason?
A. Sandeep has taken another policy from XYZ Life Insurance Company
B. Vishal is older than Sandeep
C. Sandeep is earning more then Vishal
D. Vishal is working in a MNC

13. During fact finding, What will be the next step after Identifying clients need
A. Quantify clients need
B. Priorities Clients Need
C. Recommending Product
D. Fill up the proposal form

14. What is purpose of investing money in debt mutual fund?

A. Easy access
B. Fixed income
C. Tax Benefits
D. Liquidity

15. 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?
A. 213333
B. 229333
C. 273333
D. 293333
16. What is the similarity between Recurring Deposits &
cumulative deposits in a bank
A.Guarantees
B.Taxation
C.Tenure
D.Lock in periods

17. Mrs. Sheela received some amount out of her husbands

death. In such a situation what will be her prime focus?
A.Savings
B.Insurance
C.Investment management
D.Planning for pension

18. Mr. Kunal used to participate in Car race. While taking up

the Insurance policy he disclosed this information. What
kind of hazard does it refers to
A.Physical hazard
B.Fraudulent representation
C.Moral hazard
D.Peril

19. Which of the following falls under voidable contract?

A.Misrepresentation
B.Lack of insurable interest
C.Fraud
D.None of the above
20. Law of large numbers is worked out by which of the
following?
A. Pooling of risk
B.Maintaining insurable interest
C.With utmost good faith
D.Randomness

21. If a client wants to compare between all financial products

then the best person he can approach is
A.Individual agent
B.Corporate agent
C.Bank
D.Broker

22. If a person want to maintain emergency funds the best

place is a bank or
A.Equity market
B.ULIP
C.Debt mutual fund
D.FD

23. During a fact finding process the need analyzed were

income replacement and childrens education. But the
customer insists on only a child plan for the time being and
asks the agent to give him a child plan. The agent should.
A.Do the fact finding exercise again
B.Insist with the client to take a term plan
C.Give a child plan and revisit the client on a later
date
D.Give the lead to another agent
24. If a case is already before the consumer forum, then the
ombudsman should
A.Give a recommendation
B.Give a joint decision with the consumer forum
C.Dismiss the case
D.Give an award.

25. If the sum assured remains the same, what will be impact of
net premium if the age of the policyholder increases
A.It rises
B.It falls
C.It remains constant
D.Gross premiums increases

26. What is the advantage of converting physical gold assets to

gold ETFs.
A.Liquidity
B.More gold in value
C.Purity
D.More conversion value

27. For which of the following reasons, the underwriter should

ask beyond agents confidential report.
A.Physical Hazard
B.Moral Hazard
C.SA is too high
D.Pure Risk

28. After doing the need analysis of the client, the agent
advised the client to opt for TROP product. But the client
 refused. According to ethical business practices what will
the agent do ?
A.Enquire about the refusal from the client
B.Suggest an alternative plan
C.Pass on to the superior
D.Pass on to the other agent

29. 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.Fraudulent claim
B.Indisputability clause
C.Redressal procedure
D.Pending decision from Ombudsman

30. According to IRDA agents code of conduct, what is the

best method of showing the amount of commission earned
by the advisor
A.Signed copy of sales illustration
B.Brochure
C.Sales Communication
D.Press releases

31. 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?
A.Under no circumstances
B.Under conditions of the reinsurer
 C.As directed by actuary
D.As per company policy

32. 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?
A.Reinstatement Fee and Proof of continuing good
health
B.Premium cheque and health declaration
C.Only health certificate
D.Premium cheque with arrears

33. If the customer has invested money in a pension plan from

company A and buys an annuity from company B, what is
the nature of transaction?
A.Life Long Annuity
B.Open Market
C.Reinsuring Annuity

34. If a policy holder buys a policy from the advisor and lodges
a complaint, it should be treated as :
A.Same for all policies sold by advisor
B.Same for all policies sold by the advisor except
corporate clients

35. An investor holds a wide range of shares. If the Reserve

Bank of India announces a series of significant interest rate
increases, the prices of these shares are most likely to
A.Become volatile
B.Decrease
C.Increase
36. In life insurance business if a person is working in
calculating premium rates of insurance products, then he is
mostly likely a member of
A.institutes of actuaries of India
B.insurance institute of India
C.Charted institute of insurance
D.Insurance institute of risk management

37. In a life insurance policy it is later found that the person

doesnt have insurable interest then the contract is
A.expired
B.reviewed
C.Void
D.Valid

38. If both parents of proposer died in their thirties due to heart

attack what is the kind of peril or hazard the proposer has?
A.Insurable hazard
B.moral hazard
C.non insurable hazard
D.Physical hazard

39. Raunak earns 80,000 per month as salary. He has taken a

House loan of Rs. 500000. What will be the maximum
amount of EMI that can be charged by the Bank to recover
the loan amount?
A.Rs. 32000 per month
 B.Rs. 24000 per month
C.Rs. 40000 per month
D.Rs. 48000 per month
[Chapter 6/13 - Care should be taken to ensure that
EMIs do not exceed 40% of the monthly take home
salary.]

40. Frequent switching is not advisable in ULIP plan because it

increase
A.Investment Risk
B.Risk of death
C.Uncertainty of return
D.Chances of lapse

41. According to insurance terminology which of the

following is correct?
A.Lung cancer is a hazard whereas smoking is a peril
B.Smoking is a hazard and lung cancer is a peril
C.Lung cancer is a peril and smoking is a moral hazard
D.Smoking is a moral hazard whereas lung cancer is a
peril.
[Chapter 2/5 - If lung cancer is a peril then smoking can
be a hazard that may increase the chance that the peril
(lung cancer) will occur.]

42. An insurance agent sold two policies to two different

persons having the same policy term. He declares the
commission to each of them. The commission of one of the
policy is more than the other. What should be the reasons
for this difference?
A.Risk profile of both the policyholder are different
 B.Age of both the candidate are different
C.One has chosen Single premium policy and other has
chosen regular premium policy
D.Both have chosen different kind of policies.

43. Open market option under Annuity policy would extend

which of the following benefit?
A.Ensure Better annuity rate
B.Increase in the range
C.Increase in return
D.Switch of Funds

44. 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?
A.Money Back
B.Term Plan
C.Endowment Plan
D.ULIP

45. What should an agent do in order to understand the mental

state of client in respect to his investments in saving
products
A.Fact finding
B.Consulting the clients parents
C.Consulting the family of the client
D.Reviewing his existing investments
46.

47. Net premium is equal to

A.Premium plus interest earning
B.Risk premium plus interest earning
C.Premium minus interest earning
D.Risk premium minus interest earning

48. Pooling of risk in insurance means

A.The premium collected & deposited in a pool
B.All similar risks are pooled together
C.Premium is pool to make claims
D.Contribution of insurance company

49. Principle of utmost good faith will operate in existing

policy
A.Every time premium is paid
B.If the policy has lapsed and it has to be revived.
C.If the insured person falls sick and is admitted to
hospital.
D.If the insured person changes his job.

50. Both the parties to a contract must agree and understand the
same thing and in the same sense which is called
A.Consideration.
B.Legality of an object.
C.Consensus ad idem.
D.Acceptance.

51. In case of life insurance, Insurable interest must exist

 A.At inception of policy
B.Not needed
C.At the time of claim
D.Any time during the contract

52. With this type of deposit the bank pays the principal and
the total interest at the end of the term.
A.Traditional deposits
B.Recurring deposits
C.Cumulative deposits
D.Term Deposits

53. The Premium on all riders put together should not exceed
A.10% of the premium on the base policy
B.20% of the premium on the base policy
C.30% of the premium on the base policy
D.40% of the premium on the base policy

54. How riders will help the customer in life insurance?

A.allows policyholders to customize their insurance
cover with additional benefits
B.rider is like a clause
C.Operative clause.
D.Rider is like Preamble.

55. In Daily hospitalization cash benefit scheme,

A.The daily amount paid is fixed and will never be more
or less than the cost of actual treatment.
B.The insurance company may pay an additional
amount on a daily basis if the insured is admitted
to the Intensive Care Unit (ICU).
 C.The insurance company will pay for doctor
consultation fees incurred prior to hospitalization
D.Only surgery expenses are included in daily
hospitalization benefit

56. A lump sum withdrawal allowed as commutation in

pension plans is
A.1/3rd of the accumulation fund
B. 1/4 of the accumulation fund
th

C.1/2 of the accumulation fund

nd

D.Full withdrawal is allowed

57. 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?
A. paid up to 75 Yrs
B. annuity will be continued for next 5 Years
C. till he die
D. not remembered

58. In term insurance if Critical illness rider claim happens then what will happen to existing policy
A. CI benefit will cease
B. CI benefit reduced from existing sum assured
C. CI benefit continues
D. No change in policy.

59. What is the main objective of taking the life insurance policy?
A. Tax benefit
B. Savings
C. Investment
D. Protection

60. If person consumes alcohol- what is the type of hazard?

A.Moral
B. Physical
C. Occupational
D.Professional
61. Group Insurance can be taken in following relationship
A. employee- employer
B. husband-wife
C. family members
D. society members

62. Where one can approach in case of dispute?

 A. IRDA
B. Consumer Forum

63. Life insurance is the most important for which age group
A. Young
B. Pre- retirement
C. Retirement
D. children

64. Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase
will generally apply?
A. 2.5%
B. 3.0%
C. 5.0%
D. 7.5%

65. 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?
A. 1 lacs
B. 3 lacs
C. 2 lacs
D. 1.50 lacs

66. The regulations issued by the IRDA, require that the decision on the proposal must be conveyed to the
proposer within
A. 15 days of receiving the proposal
B. 20 days of receiving the proposal
C. 25 days of receiving the proposal
D. 30 days of receiving the proposal

67. Family floater health Insurance plan covers

A. All members of a Family
B. Husband and Wife only
C. Parents only
D. Children Only

68. According to IRDA guidelines, how long does an insurance company have to complete its investigation of
a claim?
A. 30 days
B. 90 days
C. 120 days
D. 180 days

69. How the Daily hospitalization cash benefit will provide benefits to policyholder who is hospitalized?
A. Entire charges are refunded.
B. Entire charges less bed charges will be paid
C. A fixed amount on a daily basis is paid irrespective of the actual cost of treatment
D. Only Hospital bill will be paid

70. Who is a regulator, supervisor and monetary authority of the financial system in India?
A. IRDA
B. SEBI
C. RBI
D. SBI

71. Indisputability clause can be enforced by the insurance company during the
 A. First five years of policy
B. First Two years of policy
C. Claim
D. Inception of the policy

72. To ensure that the premiums are paid out of a legitimate source of funds cash is accepted
A. Up to 50000
B. Up to 99990
C. Up to 100000
D. Without any limit

73. If there is no claim in a year than what will be the benefit to the customer as NO CLAIM BONUS
A. Discount in next year premium
B. Increase in Sum Assured next year
C. Loans facility
D. No benefit

74. An individual is said to be competent to enter into a contract if they are

A. 18 year old
B. 21 year old
C. 23 year old
D. 25 year old

75. Maximum time for investigation in disputed claim?

A. 1 month
B. 2 months
C. 3 months
D. 6 months

76. The Ombudsmans powers are restricted to insurance contracts of value not exceeding?
A. 50 lakhs
B. 30 lakhs
C. 25 lakhs
D. 20 lakhs

77. In which section of Policy document, Information about the location of the insurance Ombudsman had
written?
A. Operative clause
B. Attestation
C. Information statement
D. Endorsements

78. In Cumulative bank deposit the interest that in normally compounded on what basis.
A. Monthly
B. Quarterly
C. Half Yearly
D. Annually

79. The premium for accidental death benefit rider must not exceed
A. 15% of base policy premium
B. 25% of base policy premium
C. 30% of base policy premium
D. 40% of base policy premium
80. If the annual premium for a plan is 32000 and a frequency loading of 4% is added in a quarterly premium
what is the amount that needs to be paid.
A. 8000
B. 8320
C. 9456
D. 9240

81. What amount of insurable interest does an individual have in his own life?
A. 20,000
B. 50,000
C. Up to the sum assured taken in the plan
D. Unlimited

82. Ombudsman passes an award within which time

A. 1 month
B. 2 months
C. 3 months
D. 6 months

83. 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.
A. 2013
B. 2015
C. 2017
D. 2020

84. Under the hospital care rider what is the payout made
A. 10% of the sum assured
B. Specified amount multiplied by the number of days the policyholder is hospitalized

85. 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. Switching
B. Doing a financial planning
C. Churning

86. Mr. Denny is married and has 2 children and his parents are alive. He has taken a family floater plan. Under
the plan who all will be covered.
A. Denny
B. Denny and his wife
C. Denny, his wife and children
D. Denny, his wife, his children and his parents

87. 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?
A. Discounted Value
B. Principle amount
C. Discounted Value with persistency bonus
D. Principle with persistency bonus

88. If bonus is given under a plan the additional premium added is known as
A. Loading
B. Investment
C. Frequency
89. Nomination can be in favor of how many people?
A. One person
B. Two persons
C. Three persons
D. It can be any number

90. 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
A. Joint life policy
B. Has physical ailment

91. What key impact will the agent have in low persistency
A. Increase more business
B. Increase in the agents earning
C. Will improve reputation
D. Will have impact in his commission.

92. Within how many days will the underwriter needs to inform the policyholder regarding the status of the
policy.
A. 10 days
B. 15 days
C. 30 days
D. 45 days

93. Certificate from the village panchayat

A. Will be considered as standard age proof
B. Will be considered as non standard age proof
C. Will not be accepted

94. What is the maximum sum assured under a micro insurance

A. 10000
B. 25000
C. 50000
D. 100000

95. 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?
A. Actuary
B. Underwriter
C. Claim Department
D. Accounts

96. If Naresh wishes to take the tax benefit of the full premium paid which is 60000, what amount of sum
assured should he avail in a ULIP plan.
A. 2 lacs
B. 3 lacs
C. 5 lacs
D. 6 lacs

97. Ashish is looking at different plans of insurance for protection at the lowest premium. Which is the best
plan for him?
A. Term plan
 B. Endowment plan
C. Whole life plan
D. Money back plan.

98. The insurance act of 1938 created which of these.

A. IRDA
B. Tariff Advisory Committee
C. National Insurance Academy
D. LIC

99. Ashu is an illiterate person and his proposal form was filled by Nishu, then what is the additional
requirement to be taken along with the documents.
A. The policy needs to be advertised in the newspaper.
B. Nishu has to sign an indemnity bond.
C. Thumb impression of Ashu has to be taken.
D. Ashu needs to be medically examined.

100.Harshs policy matured, however he was paid only 25% of the sum insured in spite of all his premiums
been paid on time. This indicates that his policy is a
A. Term plan.
B. Endowment plan.
C. Money back plan.
D. Wholelife plan.

101.The Authority of COPA is limited to what amount at the district level.

A. 10,00,000.
B. 20,00,000.
C. 50,00,000
D. 1,00,00,000.

102.In case of a term plan the maximum premium of the accidental rider can be.
A. 100% of basic premium.
B. 50% of basic premium.
C. 30% of basic premium.
D. 35% of basic premium.

103.With reference to the principle of indemnity a life insurance policy is a.

A. Insurance contract.
B. Indemnity contract.
C. Value contract.
D. Major life contract.

104.In the personal statement, Ramesh declares that he consumes alcohol twice every week. This is a
A. Moral hazard.
B. Moral peril.
C. Physical hazard.
D. Physical peril.

105.Micro insurance is made specifically for people from.

A. High income.
B. Middle class.
C. Low income.
D. Affluent class.
106.The reduction in the benefit illustration shows what.
A. Charges.
B. Mortality.
C. Interest.
D. Inflation.

107.If Insurable interest does not exists at the time of inception of the life insurance policy then, life insurance
contract is
A. Voidable
B. Invalid
C. Valid
D. Null & voidable

108.If a contract is signed by a 15 years old boy, this contract will be

A. Null and void
B. Invalid
C. Voidable
D. Valid

109.If a life insurance policy is issued with a lien, it will be mention in

A. Proviso
B. Schedule
C. Terms & conditions
D. Endorsement

110.Available Loan amount under a life Insurance policy is generally based on

A. Total paid premium
B. Sum Assured
C. Surrender value
D. Paid up value

111. De- tarrification is a process by which pricing of Insurance

A. Rises
B. Decreases
C. Reaches at a level as per industry trends
D. Insurance can price their product on their self past experiences.

112.As per Regulation for protection of Policyholders interest 2002 (IRDA), Which insurer will have a
grievance redressal System
A. Some Specific Insurer
B. Those Insurer who did not created Insurance Ombudsman System
C. All insurer
D. It is optional

113.Which body has created a call center for logging a complaint

A. Life Insurance Council
B. IRDA
C. Insurance Association
D. Insurance Institute of India

114.What is the key function of NIA

A. Provide suggestion for Premium calculation
B. To be an active link between Global market & Indian Life Insurance Industry
C. Design, implement and operate an insurance training
 D. Regulate the investment of funds by Life Insurance company

115.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. He has switched his fund
B. He has opted for Settlement option
C. He has he has redirected his past premium.
D. Policy was lapsed on the time of maturity

116.Gautam wants to purchase a Kisan Vikas Patra. What is the most suitable place to purchase it
A. Bank
B. Insurance Company
C. Post Office
D. Share Market

117.Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be
the reason
A. Administrative charge
B. Inflation
C. Interest rate
D. Market Risk

118.During Fact finding, rating is mentioned 3. This Indicates

A. Risk apatite of client
B. His future aspiration
C. Commitment to need
D. Willingness to pay

119.Raunak wants to purchase a cheapest plan which can provide financial security to his dependent. Which
plan should be offered
A. Term Plan
B. Term Plan with return of premium
C. Pure Endowment plan
D. Unit Linked Plan

120.For tax Saving Someone wants to fixed deposit in bank. What duration is required for it?
A. 3 years
B. 5 years
C. 7 years
D. 2 years

121. Incase of presumption of death

A. Not necessary to pay premium until court decree
B. Necessary to pay premium until court decree
C. Claim not admissible

122.If insured gets the two advance payment in the 5yrs and in the maturity he gets rest of sum assured. What
type of policy it is
A. Money back policy
B. Convertible plan
C. Term plan
D. Endowment policy

123.Which is correct in relation to Insurance Broker?

A. Insurance broker is represents insurance buyer and remunerated by the insurance company
B. Insurance broker is represents insurance buyer and remunerated by the Client
124.Shailesh and ankit want to retire in the age of 65yrs. But shailesh pays more monthly payment than ankit.
Why?
A. Shailesh is very older than ankit.
B. Shaileshs income is more than Ankits income

125.What will be lien amount in 3rd year as compared to the 4th year of lien.
A.It is higher
B. Decrease
C. Slightly higher
D.Slightly lower
126.Within how many years a complaint can be made through consumer protection act.
A. One year
B. Two years
C. Three years
D. Five years

127.In which plan weekly premium payments are accepted.

A. Health Insurance
B. Group Insurance
C. Micro Insurance

128.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?
A. Needs to take experts suggestion
B. Equal to base cover

129.Basing on which criteria the qualification of Agent is determined?

A. Address of the agent
B. Domicile status

130.Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness before
maturity? (wrong)
A. Nil
B. 10%
C. 20%
D. 30%

131.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
A. 2011
B. 2012
C. 2013
D. 2014

132.If we hold 100 units in gold ETF, It means that how much grams we have in physical
A.5 or 10 grams
 B. 10 or 15 grams
C. 15 or 25 grams
D.50 or 100 grams
133.In case of life insurance, the insurable interest should exist
A.At the time of taking the policy
B. At the time of claim
C. At the time policy matures
D.At the time of taking the policy & claim
134.Pooling of insurance applies to
A.all types insurance
B. All types of insurance except Motor insurance
C. Only life insurance
D.Only Non-life insurance
135.Insurance companies are required to honor the awards passed by the Insurance Ombudsman within how
many days
A. 10 days
B. 15 days
C. 20 days
D. 25 days

136.If IRDA is unable to discharge its functions or duties, Central Government

A. Has the power to supersede the IRDA by issuing notification.
B. Has the power to supersede the IRDA by issuing a bill in parliament
C. Has the power to supersede the IRDA by issuing draft
D. Can make changes in IRDA law

137.An elderly person wants to use tax efficient investment and invests in senior citizen saving scheme. Its the
impact in his taxation
A. He will get tax benefit up to 5000
B. He will get tax benefit up to 25%
C. He will get a reduction in tax slab
D. His investment would be deducted from taxable income

138.What are the benefits to the policyholder Under Surgical care rider?
A. Number of days admitted in hospital & surgery expenses in full
B. Number of days admitted in hospital & surgery expenses in partial
C. Treatment cost of surgery subject to terms & conditions
D. Lump sum amount what he has incurred

139.Health insurance policy holder takes treatment in a hospital which doesnt have cashless facility. How the
policy holder will get benefited
A. Need to spend and Get claim from the insurer
B. Need to add that hospital as TPA
C. Need not to claim
 D. Need to switch to the another insurer

140.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.
A.Childs education
B. Marriage
C. Emergency funds
D.Income protection
141.National insurance academy has the following main functions
A.Calculating premium
B. Interact with the government
C.Training
D.Mortality assumptions
142.Health insurance rider and critical illness rider in classified under
A. Life and non life respectively
143.Both life insurance
A.Both non life insurance
B. Nonlife and life respectively.
144.Pure risk is classified under
A.Economic risk
B. Speculative risk
C. Financial risk
D.Insurable risk

145.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?
A.10 days
B. 20days
C.30 days
D.60 days
146.As per IRDA regulations IGMS should be mandatory set up by
A.Only by few selected insurers
 B. Only by non life
C. Some life and non life
D.By all insurers.
147.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?
A.Provisio
B. Endorsements
C. Operative clause
D.Terms and Conditions
148.When can an insurance company give more than 35% first year commission?
A.When the insurance company is in the first 10 years of operation
B. If the agent has worked with the company for more than 5 years
C. If the agent has worked with the company for more than 10 years
D.If the agent is doing more than 3 policies in a month.
149.When should an agent disclose the commission which he will earn from the product which he is going to
sell
A.When the customer asks him
B. After the fact finding process
C. After quantifying the need
D.After the product is recommended to the client
150.In a pension plan illustration what are the parts which shows the benefit for an annuitant.
A.Insurance coverage
B. Annuity part
C.Guaranteed and non guaranteed part
D.Vesting age
151.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?
A.213333 & 273333
B. 213333 & 229333
C. 229333 & 273333
D.229333 & 293333
152.The consequences of these risks which will affect specific individuals or local communities in nature is
called as
A.Pure risk
B. Financial risk
C.Particular risk
D.Physical hazard
153.What is the disadvantage to the insurer in case the persistency falls
A. Lower profits
B. Higher profits

154.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 ..
A. Consumer Forum
B. COPA
C. Sebi
D. Life Insurance Council

155.If a policy with premium of Rs 5000 has matured, how much will be deducted when the maturity claim
arises
A. Nil
B. 1%
C. 5%
D. 10%

156.When a person is investing in Debt Mutual Fund, what is the primary objective
A. Good Returns
B. Regular Income
C. Safety
D. Liquidity

157.If the employer has insurable interest in the life of an employee, what kind of policy is this?
A. Surety insurance
B. Keyman Insurance
C. Partnership Insurance
D. Debtor Insurance

158.In the sales illustration, the reduction of the actual benefit amount is mainly due to deduction of
A. Commission
B. Charges
C. Non guaranteed benefits
D. Reversionary Bonus

159.The concept of indemnity is based on the key principle that policyholders should be prevented from
A. Insuring existing losses.
B. Making false insurance claims.
C. Paying excessively for insurance cover.
D. Profiting from insurance.

160.The client of reinsurer are

A. Insurance companies
B. Banks
 C. Asset Management Companies

161.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 ?
A. Endowment
B. Term
C. Money Back
D. Whole of Life

162.For assessing the risk of a group health insurance policy, which of the following information is the most
critical
A. Group lifestyle
B. Employees
C. Age of the group
D. Medical history of group

163.According to Insurance Brokers Association of India, what is the most appropriate relationship between
Insurer and Broker?
A. Insurance broker represent the client and the insurer remunerate the broker
B. The client represent the broker and the insurer remunerate the broker
C. Insurer represent both client and broker remuneration
D. Broker only service the client

164.A low persistency ratio for the insurance company means that:
A.The customers are satisfied with the products
B. The company is acquiring more business and new customers
C.A large numbers of policies have lapsed / surrendered resulting in loss of profit
D.The company will not declare bonus

165.For annuity plans, before receiving regular/periodic annuity payments, the individual can make a lump sum
withdrawal. This is known as commutation. Up to what proportion of the accumulated fund can be
withdrawn?
A.The entire fund can be withdrawn
B. Only half of the fund can be withdrawn
C.Only one third of the fund can be withdrawn
D.Only one fourth of the fund can be withdrawn
166.What is the stipulated time frame within which an insurer is supposed to respond after receiving any
communication from its policyholders?
A.24 hours
B. 1 day
C.10 days
 D.30 days
167.For an insurance agent, a low persistency ratio means :
A.Loss of renewal commission
B. High client satisfaction
C. Higher reputation
D.More earning of First Year Commission
168.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
A.15 days from the date of receipt of the policy document
B. 20 days from the date of receipt of the policy document
C. 25 days from the date of receipt of the policy document
D.30 days from the date of receipt of the policy document
169.In the case of life insurance, insurable interest should exist
A.At the inception of the policy
B. At the time of a claim
C. At the time of every renewal premium payment
D.All the above occasion
170.In which of the following plan remaining part of the Sum Assured is paid on maturity?
A. Endowment Plan
B. Convertible Plan
C. Money Back plan
D. Term Plan

171.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
A. Endowment plan
B. ROP plan
C. Whole life plan
D. Ulip

172.Payment/Investments in Kishan Vikash Patra under post office schemes is done

A. Regularly with no fixed term
B. Lump Sum with no fixed term
C. Lump Sum for fixed period of time
D. Regularly for fixed period of time

173.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
A. Less than 10000
B. More than 10000
 C. Less than 20000
D. More than 20000

174.Under the IRDA guidelines for Claim settlement, any queries or additional documents can asked from the
claimant within
A. 5 days from the receipt
B. 10 days from the receipt
C. 15 days from the receipt
D. 20 days from the receipt

175.Law of Large number helps the insures to

A. Calculate the premium
B. Increase the profitability
C. Ascertain the death ratio
D. Declare the bonus

176.A person with a criminal background due to Financial fraud would come under which hazard
A. Physical
B. Moral
C. Occupation

177.Whose signature is required on attestation of the policy?

A. Agent
B. Policy holder
C. Authorized officials of insurer
D. Proposer

178.What is the ceiling of tax exemption under 80 c.

A. 1 lakh
B. 1.5 lakhs
C. 2 lakhs
D. 3 lakhs

179.If customer has applied for a policy with 1 Lac SA then what is maximum Premium on which he can save
Taxes
A.Maximum 20000
B. Maximum 100000
C. Maximum 120000
D.Maximum 150000
180.If Ombudsman makes a recommendation and is accepted by Complainant then it would be
A.Binding on the insurer
B. Binding on Court Of Law
C. Binding on IRDA
D.Binding of Insured

180.In India almost each and every sector is having regulatory agencies for following up the companies and
institution operating in the sector. Likely, regulatory agency for insurance sector is known as -
 A. SEBI
B. ICAR
C. IRDA
D. RBI

181.Govt. of India has full control on IRDA. Ultimately Govt. of India which of the following matters/issues of
IRDA on an ongoing basis
A. Formation of IRDA
B. Staffing pattern of IRDA
C. Policy matters
D. It is an autonomous body. Govt of India has no control over IRDA

182. Mr. Rahul is having a life insurance policy. After 8 months he was died. But when the claim is returned by
the Insurance Company as the claim cannot be settled because of a specific clause mentioned in the policy
document. Which is the most likely clause?
A. Special clause
B. Suicide Clause
C. Lien clause
D. Paid up clause

183.Mr. Ramesh has taken a life police as recommended by an insurance agent. Now the role of Agents
Principal lies
with
A. The insured
B. Insurance Company only
C. Ramesh only, none else
D. IRDA, since entire insurance is under control of IRDA

184.From Insurance Companys point of view, most important aspect in a Term Insurance Policy lies with
A. Good ethics
B. Fact findings
C. The proposal
D. Underwriting process

185.Mr. Purusottam has joined as Director of Insurance Company. Now as per the IRDA act he is not allowed to
play the role of which of the following:
A. Agent
B. Chief Actuary
C. Under writer
D. None of these

186.Mr. Amar has taken a Term Insurance Policy from Insurance Company. A term insurance is basically what
kind of contract?
A. Indemnity Contract
B. Insurance Contract

187.There are two most widely used mode of lodging complaints against insurance company by the insured.
One is toll free phone call. Name which of following will be 2 nd most widely used method among the
following alternatives.
A. Insurance ombudsman
B. Direct visit to IRDA office
C. Comparison website
D. E mail
188.XYZ Insurance Company has started promoting their insurance products mostly through television and
news paper advertisements. Hence, the said company is operating through
A. Direct channel
B. Indirect channel
C. Using both the channels
D. Agent channel

189.ABC Insurance Company has appointed many agents. They are helping in underwriting process to the
underwriters. However, Mr. Vimal, an agent has done adverse selections. From insurance companys point
of view, which among the following is most likely considered to be the adverse selection?
A. Obtaining a policy from a very poor person
B. Obtaining policy from a rich man
C. Vimal has obtained most of his policies from railway porters
D. In certain cases material facts are changed to obtain higher claims

190.Vikash a 30 years unmarried young man has invested a pretty good amount in shares. Recently he is
shifting his investments Gold ETF. Now state which of the following is the most likely motive of Mr.
Vikash by doing so?
A. He is interested in savings only
B. He prefers both regular savings as well as capital appreciation
C. He prefers capital growth only
D. Recently he is going to marry that is why he is more interest in Gold to keep the gold of his
would be wife in Gold ETF

191.It has been observed that, most of the policies issued by M/S XYZ Insurance Company have been forfeited
by the insured during the free look period. What may be the most likely reason so far ethics is concerned?
A. The company has no ethics
B. The company has only internal ethics but not external
C. The company has external ethics but not internal
D. The company has both the ethics

192.An insurance company has issued a policy document to one of its policy holder. In the policy document
they have mentioned the payment of premium by the insured, payment of SA by the insurance company on
the happening of insured event etc. which part of the policy document is most likely to contain such matter?
A. Preamble
B. Schedule
C. Terms and conditions
D. Operative clause

193.The lung cancer is aggravated by smoking. In terms of insurance, these are respectively known as
A. Hazard & peril
B. Peril & hazard
C. Effect & cause
D. Either peril or hazard

194.Sohan and Amit are 30 years old unmarried persons. Sohan is having dependent mother where as Amit has
no dependent. Which type of policy most likely to be chosen by Sohan?
A. Health insurance for mother
B. Life insurance policy
C. Liability insurance policy
D. Retirement policy

195.Ashok is a young married man with beautiful young wife and two kids. He should select which types of
insurance projects?
 A. Contingency funding
B. Health insurance
C. Housing Loan insurance
D. Retirement benefit insurance

196.Underwriting is an important aspect of insurance business. In which of the following situations underwriter
must be most cautious?
A. Low age, low sum assured
B. Low age, high sum assured
C. High age, high sum assured
D. High age, low sum assured

197.A Govt. employee after retirement has chosen to take 10% of his pension benefit in cash. Which of the
following options shall be applicable to the person so far income tax payment is concern?
A. It is absolutely tax free
B. He has to pay 10% TDS on the amount taken in cash
C. He has to pay 30% TDS on the amount taken in cash
D. He is not allowed to take in cash.

198.Amit has decided to invest Rs. 1,00,000/- every year in ULIP where as Ramesh has decided to invest the
same amount in PF in order to get IT exemption in 80C. In this view which of the following is correct?
A. Both the investments have same impact.
B. In ULIP IT exemption u/s 80C is not available.
C. PF is also not eligible for IT exemption u/s Sec. 80C.
D. Both are taxable as per Income tax Act 1961

199.Ram and Shyam, both have taken life policy from same company through same agent for same period.
During the process of disclosure, the agent has revealed that he obtains more commission from Ram. What
may be the probable reason for the same?
A. Shyam has taken more number of policy that is why he has been given concession.
B. Rams policy is having rider
C. Ram is older than Shyam
D. Ram is having wife and children, where as Shyam is unmarried.

200.Ramesh is a brother of Rakesh, in which circumstances Rakesh can propose a policy on Rameshs name
A. If Ramesh owes him money
B. IF Ramesh gives a declaration
C. If Ramesh proves that he need the money
D. If ramesh want to invest by his brothers name.