1.

Why income and expenses are calculated?

(1) To find affordability
(2) To sell products
(3) To find excess earning
(4) To calculate Profit/Loss

2.

3.

4.

Mr. Client wants to invest in Kisan Vikas Patra,

which of the following deals with KVP
(1) Bank

(2) Post Office Saving Scheme

(3) LIC of India

(4) Mutual Funds

Who is primary underwriter?

(1) Agents

(2) Insurer

(3) Broker

(4) IRDA

IRDA is controlled by ------------(1) Central Government

(2) Life Insurance Corporation
(3) Ombudsman
(4) RBI

5.

IRDA has call centre to promote ------------ body

(1)
(3)

Ombudsman
IRDA Council

(2) Consumer Forum

(4) Consumer Grievances

6.

Mr.

X is taking life insurance policy on Mr. Y,

then Mr. X is

7.

8.

9.

(1)

Appointee

(2) Assignee

(3)

Proposer

(4) Lender

Mr. X takes life insurance, sum assured is 4 lakhs,

what will be the maximum sum assured that he can
take on critical illness rider
(1) 1 lakh

(2) 2 lakhs

(3) 3 lakhs

(4) 4 lakhs

Mr. X has taken 1 Lakh endowment policy, he wants

to increase his tax benefit. How much should he pay
the premium to enjoy maximum tax benefit
(1) min 10,000

(2) max 10,000

(3) min 20,000

(4) max 20,000

Mr. X is taking life insurance

Mr. Y, under insurable interest if

on

his

brother

(1) Mr. X owes money to Mr. Y

(2) Mr. X will affect adversely if Mr. Y died.
(3) No Insurance Interest between Mr. X and Mr. Y
(4) None of the above

10. Mr. X , married, having two children, only income

provider to his family, wants to take health
insurance, but he has no protection, he should take
------------------------- policy instead of health
insurance
(1) Term

(2) Health with rider

(3) Group Policy

(4) Endowment Policy

11. Mr. X, married, wants to save money for his child

education, what plan should he choose

12.

(1) Endowment Plan

(2) Term Plan

(3) Children Plans

(4) Health Insurance

Mr. X saved some money for his retirement, how

money can he take, when his retirement starts
(1) 1/3

(2) 2/3

(3) 1/4 (4) 2/4

13. Mr. X has retirement plan under open market

facility, his plan has switch facility, the
advantage of switch facility
(1) More Life Cover
(2) More Returns
(3) He can switch the fund from one insurer to
another
(4) More pension

14. Mr.
Client
is
not
satisfied
on
the
plan,
recommended by Mr. agent, what does the agent do
now?
(1)
(2)
(3)
(4)
15.

Cancel the deal

Convince the client to take policy
Review the plan according to clients need
Recommend next best plans.

Mr. X aged 23 yrs, is in good job,

dependent. What plan should he choose
(1) Term
(3) Endowment

has

no

(2) ULIP
(4) Pension Plans

16. Mr. Client is asking so many doubts regarding the

plan but Mr. Agent doesnt know the answer then
(1)
(2)
(3)
(4)

Refer the textbook

Taking the help of his superior
Asks Mr. Client to solve his doubt himself.
Convincing him by telling something

17. wife of Mr. X got only a part of sum assured after

the death of Mr. X, even though the premium is paid
on time. Mr. X plan has
(4) Lien
(3) Rider

(2) ULIP Features

(4) Paid up Value

18. National Insurance Academy does

(1) Insurance sales
(2) Training
(3) Checking code of conducts of agents
(4) Research

19. According to Insurance, the risk of NRI belongs to

(1) No Risk
(3) Medium Risk

(2) High Risk

(4) Low Risk

20. There is standard time for insurance training. But

insurance training enhanced by 50% in ---------Case
(1)
(2)
(3)
(4)

Trainee is NRI
Trainee is above 50 yrs.
Trainee undergoing composite training
Brokers

21. when does award happening, if ----------(1) The claimant refuses the Ombudsman
recommendations
(2) Insurer refuses the Ombudsman recommendations
(3) Answer (1) is correct
(4) Both (1) & (2) correct
22. Mr. X wants a life cover for the term of 20 yrs,
also he wants a modest amount if he survives thru
the term. Which plan should he buy
(1) Term Insurance
(3) ULIP

(2) Endowment Plan

(4) Returns
of
Premium

23. Mr. X offers the plan. Mr. Y accepts the order with
condition. The action of Mr. Y refers to
(1) Counter offer
(3) Partial acceptance

(2) Response offer

(4) No acceptance

24. Any queries or additional documents can be asked

from the claim within -----days.
(1) 5 days

(2) 10 days

(3) 15days (4) 20 days.

25. Indemnity pertains to

(1)
(2)
(3)
(4)

Only to Health Insurance

Only to Term Insurance
General Insurance
Money Back Policy

26. Mr. Client is confused on real need and perceived

need on financial planning process. What does the
agent do now
(1)
(2)
(3)
(4)

To conduct fact finding

To sell more products
He has to do what he likes
None of the above

27. Usage of fact finding is

(1)
(2)
(3)
(4)

Idenifying the needs

Prioritising the needs
Quantifying the needs
All of the above

28. To satisfy the IRDA code of conduct. Mr. Agent

(1)
(2)
(3)
(d)

Mr. Agent to shows his licence to Mr. Client

Mr. Agent shows his licence if Mr. Client asks
Tell about the Commission if Mr. Client asks
No need to tell the commission

29. When does Mr. Agent tell his commission

(1) When selling the product
(b) When client asks his commission
(3) Dont tell all the time

(4) Can tell at any time.

30. what are the charges to be told charged by insurer,
while selling the product
(1)
(2)
(3)
(4)

First year charges

Second year charges
All charges
Agents Commission

31. --------- are considered/taken into account while

recommending policy
(1) Income
(3) Age

(2) No. of dependants

(4) All the above

32. Expand POMIS

(1)
(2)
(3)
(4)

Post
Post
Post
Post

Office Mutual Fund

Office Insurance Scheme
Office Monthly Income Scheme
Management Information system

33. In post office schemes, Mr. X wants to invest some

money to get tax deduction. For how many years
should he invest to get tax deduction
(1) 2 yrs

(2) 3yrs

(3)5 yrs (4) 6 yrs

34. Under what circumstances Mr. Insurer follow utmost

good faith
(1)
(2)
(3)
(4)

While issuing the policy

While settling the claim
All circumstances
AT time of giving policy details

35. Mr. Client has diabetics, he doesnt mention it in

proposal form by innocently. This refer to
(1)
(2)
(3)
(4)
36. Law
(1)
(2)
(3)
(4)

Breach of utmost good faith

Policy will be accepted
Partial claim will be settled
Claim wont be settled
of large no. helps insurer to analyze
To find out the total claims settled in a year
To calculate the premium
To give Bonus
To find out the Management Expenses

37. When should an appointee required?

(1) Proposer
(3) Minor

Life assured is

(2) wife of life Proposer

(4) Nominee is a Minor

38. Mr. Client has criminal case against him, refers to

------------ Risk
(1) Fundamental Risk
(3) Moral Risk

(2) Financial Risk

(4) Fraudulent Risk

39. Mr. X has critical illness rider with his base

plan, he claimed the CI rider, now CI is
(1) Assigned
(3) Paid up

(2) Pledged
(4) to give the SA of CI

40. If a claim is settled by indemnity clause what does

it means
(1) Settle the claim for the loss
(2) Policy bond is lost
(3) Expenses incurred will be given

41. Mr. Agent should act in the interest of

(1)
(3)

Insurer
IRDA

(2) Client
(4) ombudsman

42. Money Back Policy is

(1)
(2)
(3)
(4)

Savings and Insurance

Survival Benefit Scheme
Both the above answers
Whole Life plan

43. Whose signature is required on attestation of the

Policy
(1) Agent
(2) Underwriter
(3) Authorized official of insurer
(4) Grievance Redressal Officer
44. Life insured on Mr. X, but other 2 persons details
are required to mention in proposal form why?
(1) Joint Life Plan
(2) Father and Mother
(3) Assignor & Assignee
(4) Minor Nominee & Appointee
45. Who can Supercede the IRDA?
(1)
(2)
(3)
(4)

The
The
The
All

Controller & Auditor General of India

State Government of Andhra Pradesh
Central Government
the above.

10

46. Who is
India?
(1)
(2)
(3)
(4)

The
The
The
Any

responsible

for

Actuaries

Profession

in

Institute of Actuaries of India

IRDA
Insurer
of the above.

47. Duties of an agent after a customer purchasing a

policy is
(1) Need not contact the customer after the sales
is over
(2) If policyholder has a grievance resolve with
insurer quickly
(3) Both are Correct
(4) Both are incorrect
48. Which of the following statement is incorrect?
(1) A copy of the proposal form given to the
insured after acceptance of Proposal
(2) Forms and documents made available in languages
recognized under the Constitution of India
(3) Proposal
form
is
not
used,
record
the
information obtained orally in writing &
confirm within 15 days & onus with insurer.
(4) Insurer to communicate the decision of the
underwriting not exceeding 15 days of receipt
of proposals by the insurer.

11

49. Which of the following statement is incorrect with

complaints
(1) Lack of disclosure
products & procedures
(2)

of

Overstating/understating
policy

information
the

regarding

benefits

of

the

(3) Recording the incorrect responses on the proposal

form
(4) All the above.

50. Which of the following statement refers churning

(1) Withdrawing invested funds and reinvesting in new
policy
(2) This may incur a loss on their investment and may
not even the original investments.
(3) Both statements are correct
(4) Both statements are wrong.

51. Whether
the
following
will
disqualification of the agent

be

treated

as

(1) Any violation of the code of conduct

(2) Found guilty of Criminal Misappropriation.
(3) Any
wrong
detrimental
company

doing
to the

or
misconduct
which
is
interests of the insurance

(4) All the above situations.

12

52. Risk transfer may be

(1)

Going on transfer to other places

(2)

Travelling expenses risk

(3) Transfer risks to someone who can handle them

properly is called insurance
(4) None of the above

53. Insurance can

(1) Prevent the event happening
(2) Indemnify fully the loss happened
(3) Provide compensation for the loss that comes as
a result of the event
(4) Compensate to the full extent of the family
income
54. Which one of the following is correct
(1) Foreign companies can start insurance business
individually
(2) Under current regulation foreign partner cannot
hold more than 26% Stake in the joint venture
(3) Key objectives
premium
(4) IRDA has
business

no

of

the

powers

IRDA
to

is

to

regulate

increase
insurance

13

55. Husband insuring the life of wife and to kill and

present as an accident. How to deal this situation
in insurance contract?
(1) Object of insurance
relationship.

is

to

create

legal

(2) Purpose of contract should be legal

(3) Above act is illegal on the part of the husband
(4) All the above statements are correct.

56. In insurance contracts

interest is dealt with

the

element

of

insurable

(1) Marital relationship between husband and wife

(2) Payment of interest on the sum assured
(3) Insurable interest is one of the element to
create valid insurance contract
(4) All the above statements are correct.

57. Rajesh took 50 lacs policy manipulating his age 5

years lesser than his correct age, died in a road
accident.
Komal,
wife
claimed
the
benefits.
Choose the correct statement from the following.
(1) Insurance company will pay the death claim with
accident benefit.
(2) Claim will be kept pending.
(3) Declare the policy null and void and reject the
claim made.
(4) None of the above

14

58. Indisputability
applies
to
the
following
statements.
(1) This rule applies during the first year of the
policy
(2) Policy need not be made null and void but
premium can be paid to the client in case of
breach of duty disclosure arises.
(3) Both statements are wrong
(4) Both statements are right.

59. The principle of indemnity makes sure that the

insured is compensated only to the extent they have
suffered a loss. Choose the right statement.
(1) Suresh took health policy sum of Rs.2 lacs.
Spent Rs.40000. Claims Rs.2 lacs from the
insurance company.
(2) Rajesh has taken 1 lac health cover and another
1 lac with his employer. Spent Rs.25000/- but
claims from both insurance.
(3) Principle of indemnity ensures that insurance
cannot be used to make a Profit.
(4) All the statements are correct.

60. How the insurance

customers.

products

are

bought

by

(1) When they have excess money

(2) In the month of March for tax benefits only
(3) Based on their needs
(4) None of the above.

the

15

61. What is a proposal Form?

(1) Proposed layout of the insurance office
(2) Contractual document signed and stamped
(3) Document containing the details of the proposer
& his request and application for Insurance
(4) None of the above.
62. Following proofs are required for KYC process
(1) An Age Proof
(2) Identity Proof
(3) An address Proof & Income Documents
(4) All the above.

63. Preamble deals with following

(1) Rights and duties of policyholder
(2)

Terms and conditions of the policy

(3) Declaration signed by the proposer forms the

basis of contract
(4) Eligibility
for
foreclosure etc

loan,

surrender

value,

64. Paid up value will be

(1) The sum assured is reduced to an amount based
on the amount of Premium paid.
(2) No. of premiums paid by no. of premiums payable
into sum assured plus bonus if any.
(3) Insurance co. insists on a minimum amount that
must be acquired as paid up value.
(4) All the above

16

65. Loans against insurance policies at a certain

percentage of surrender value for the following
policies are available.
(1) Term insurance policies
(2) Against policies in which a part of the sum
assured needs to be paid
(3) Whole life policies and endowment policies*
(4) All the above statements