IC33 - Practice Test

Insurance Institute of India , Pre Agency Examination
Name Branch 1 a b c d 2 a b c d 3 a b c d 4 a b c d 5 a b c d 6 a b c d 7 a b c d 8 a b c d
Practice Paper 1 SDM Name Marks
State which of the following statements is correct Insurance prevents the risk Insures compensates losses in full Both the above statements are correct Both the above statements are wrong Insurance is necessary because Assets depreciate over time and through usage Assets may be damaged by external causes Assets may break down and become unusable None of the above reasons Insurance works on the principle of Sharing Probabilities Large numbers All of the above Which one of the following statements is correct in life insurance? The principle of good faith continues to operate till the policy becomes a claim Facts which happen after the policy has commenced, need not be reported Illnesses after the policy has commenced must be informed to the insurer All the above three statements are correct. Which one of the following statements is correct, with reference to life insurance? The claim payable is subject to the principle of indemnity The claim payable will depend on the Sum Assured The claim payable will depend on the income of the deceased person The claim payable will depend on the size of the family left behind The principle of utmost good faith will operate in an existing policy Every time the premium is paid If the policy has lapsed and it has to be revived If the insured person falls sick and is admitted to hospital If the insured person changes his job The premium is loaded because of Interest likely to be earned Likely expenses Likely claims Age of the insured person Which one of the following statements is correct? Bonus is paid along with the survival benefit in a money back policy Bonus is paid when the money back policy matures Both the statements above are wrong Both the statements above are correct.
9 a b c d 10 a b c d 11 a b c d 12 a b c d 13 a b c d 14 a b c d 15 a b c d 16 a b c d 17 a b c d
Which one of the following statements is correct? The sum of all the premiums paid will be more than the Sum Assured The sum of all the premiums paid will be less than the Sum Assured Both the above statements are wrong Both the above statements are correct Which one of the following statements is correct? Convertible plan policies do not participate in bonuses Money back policies are not convertible plan policies Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? In industrial assurance plans, the premium is deducted from the pay roll In salary savings scheme plans, the premium is deducted from the pay roll Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? In life insurance, the word rider means the person taking part in horse races In life insurance, the word rider refers to additional clauses Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? In group insurance, there is only one proposal to insure many In group insurance, there is only one policy covering many Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? Convertible plans allow whole life plans to be altered to endowment plans The option of conversion can be exercised whenever the policyholder chooses to Both the statements above are wrong Both the statements above are correct State which one of the following statements is correct? The members covered by a group insurance policy changes every year The amount of insurance for any member may change from year to year Both the statements above are correct Both the statements above are wrong The system of non medical underwriting is introduced because Medical examiners are not available in all areas Most of the cases are found to be standard lives acceptable at OR Of both the above reasons Of some other reasons Moral hazard may be suspected in cases where The life to be insured is old The insurance is for a very large amount In both the above cases In neither of the above cases
Which one of the following statements is correct? A clause restricts the benefits under the policy A clause is the same as a rider Both the statements above are correct Both the statements above are wrong The FPR is issued when The first premium is adjusted in the office The first premium is deposited in the office The underwriter makes his decision Consent of the proposer is received Which one of the following statements is correct? An endorsement may be placed on the policy at the very beginning The nomination may be made later by an endorsement Both the statements above are correct Both the statements above are wrong Which of the following are confidential and will not be given to the proposer? The medical report The agents confidential report to the insurer The medical referees advice All of the above Which one of the following statements is correct? A change of nomination is an alteration requiring insurers consent A change of mode of premium requires insurers consent Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The nominee can make a further nomination under the policy The assignee can make a nomination Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The nominee can make a further nomination under the policy The assignee can make a nomination Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? An assignment is effective as soon as it made A nomination is effective when it is registered by the insurer Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? In an assignment, property is transferred When a nomination is made, property is transferred Both the statements above are correct Both the statements above are wrong
Which one of the following statements is correct? Brothers and sisters cannot be beneficiaries under the MWP Act A policy under the MWP Act is the property of the life insured Both the statements above are correct Both the statements above are wrong Which of these is not enough to claim policy monies? Succession certificate Probate of will A court decree An agreement between the heirs Which one of the following statements is correct? Accident and disability benefits are payable along with maturity claims Accident and disability benefits are payable along with death claims only Both the statements above are correct Both the statements above are wrong What is meant by a claim under an insurance policy? Any demand made by the policyholder on the insurer A demand to fulfill the policyholders obligations A demand to fulfill the insurers obligations All the three above Which one of the following statements is correct? Accident and disability benefits are payable along with maturity claims Accident and disability benefits are payable along with death claims only Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The insurer need not contest court orders relating to policy moneys The insurers should not sit on judgment between rival claims to policy moneys Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A claim may be paid in instalments only if there is a prior request A maturity claim may be payable years after the date of maturity Both the statements above are correct Both the statements above are wrong State which of the following statements is correct In ULIPs, the SA must not be less than 1.25 times single premium In ULIPs, the SA must not be less than 5 times instalment premium Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs, one can pay additional premium in any year for investment In ULIPs, if one increases the premium, the SA must also be increased. Both the above statements are correct Both the above statements are wrong
36 a b c d 37 a b c d 38 a b c d 39 a b c d 40 a b c d 41 a b c d 42 a b c d 43
State which of the following statements is correct ULIPs provide for flexibility ULIPs are better than traditional policies Both the above statements are correct Both the above statements are wrong State which one of the following statements is correct An agent should not admit that he does not have a particular information An agent cannot know everything that the proposer wants to know Both the statements above are correct Both the statements above are wrong Which of the following statements is not correct? A life insurance agent should carry the literature with him A life insurance agent should carry his licence with him always A life insurance agent should not appear shabby All the above statements are correct State which one of the following statements is correct When vital information is not disclosed, the policyholder is benefited When a claim is repudiated, the agents trustworthiness is affected Both the statements above are correct Both the statements above are wrong The Insurance Association Conducts examination for agents Is constituted by the IRDA act Is constituted by the Insurance Act Is none of the above State which one of the following statements is correct? It is an offence if an agent gives a rebate It is an offence if an insurer gives a rebate Both the statements above are correct Both the statements above are wrong Which of the following matters can be referred to the Ombudsman? Dispute on whether a premium had been paid in time or not Dispute on whether the policy should be treated lapsed or not Complaint that the enquiries being made are unjustified and delaying the claim All of the above Premium Calculation Calculate quarterly premium (rounded off to the next higher rupee) on the basis of the following data. S.A Rs. 50,000/- , Date of maturity 24.12.2036. - Term 30 years. Date of birth - 28.06.1979, Mode rebate for yearly Rs 1.50 per thousand, half yearly Rs. 1.00, quarterly nil and monthly 5 % extra. SA Rebate Rs. 1.50 per thousand for SA Rs. 50,000/- and above. Tabular premium For age nearer birthday 26 -Rs. 26.46 For age nearer birthday 27 -Rs. 27.08 For age nearer birthday 28 -Rs. 28.15 a b c d 312 320 331 339
44
Calculation on PV or SV or Loan Find out loan available at 90% of surrender value on the basis of following data, (the answer to be rounded off to the next lower rupee)
SA. Rs 30,000 DOC 15.6.1992 Endowment with profit - 30 years

a b c d Due date of last premium paid 15-06-2007 mode half yearly Accrued bonus Rs.750/- per thousand SA. SV factor 23% 3303 3388 7866 None of these
45
Claim Calculation
Calculate death claim amount on the basis of data given below if life assured dies in the 25th year of the policy. Money back policy SA Rs, 50000. Term 25 years Survival benefits of 15% each paid at the end of 5th, 10th, 15th, and 20th years. Accrued bonus Rs 965 per thousand SA. Interim bonus Rs 25 per thousand SA
a b c d 68250 69500 98250 99500
Correct Answers 1d 2b 3d 4b 5b 6b 7b 8b 9c 10 b 11 b 12 b 13 c 14 a 15 c
Practice Paper 16 c 17 c 18 a 19 a 20 c 21 d 22 d 23 d 24 d 25 c 26 a 27 a 28 d 29 d 30 c
1 31 d 32 c 33 b 34 c 35 a 36 a 37 b 38 d 39 b 40 c 41 c 42 d 43 b 44 c 45 d
Your Answers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Practice Paper 16 17 18 19 20 21 22 23 24 25 26 27 28 29 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 31 32 33 34 35 36 37 38 39 40 41 42 43 44 0 0 0 0 0 0 0 0 0 0 0 0 0 0
15
30
45
Total Marks
RESULT
FAIL
Name Branch 1 a b c d 2 a b c d 3 a b c d 4 a b c d 5 a b c d 6 a b c d 7 a b c d
The asset, which is a human being, perishes when He dies He becomes disabled to work He retires from work In all the above situations Life insurance is better than other avenues of savings in respect of Marketability Liquidity Transferability All the three above Insurance works on the principle of Trust Sharing Randomness All of the above Which one of the following statements is correct? People hesitate to buy life insurance because they are not aware of their needs People hesitate to buy life insurance because they prefer to enjoy the present Both the statements are correct Both the statements are wrong Which one of the following statements is correct? Declaration at the end of the proposal form has no legal sanctity Declaration at the end of the proposal is a warranty Both the statements are correct Both the statements are wrong Which one of the following statements is correct? Capacity to contract applies to both parties. Consent to the contract can b e implicit Both the statements are correct Both the statements are wrong When interest rates fall, the premium charged by an insurer are likely to Increase Decrease Remain the same Neither increase or decrease
8 a b c d 9 a b c d 10 a b c d 11 a b c d 12 a b c d 13 a b c d 14 a b c d 15 a b c d
The premium rates printed in the promotional literature are Risk premiums Net premiums Office premiums None of the above In life insurance, profit is determined by The accountant who prepares the balance sheet The actuary who makes a valuation The auditor who certifies the annual accounts None of the above three persons Which one of the following statements is correct? Every plan of insurance is a combination of two basic plans The name given to a plan indicates the benefits available under the plan Both the statements above are correct Both the statement s above are wrong Who is benefited if a policy is under the salary savings scheme? The policyholder The insurer The agent All the three above Which one of the following statements is correct? There is no difference between a term assurance plan and a Whole Life plan A Whole Life plan is a term assurance plan with an indefinite term Both the statements above are wrong Both the statements above are correct State which one of the following statements is correct? A master policy is issued in a group insurance policy Each member in a group policy pays the premium directly to the insurer Both the statements above are correct Both the statements above are wrong Which one of the following statements is true with regard to Childrens policies? The ownership of the policy changes on the deferred date The ownership of the policy changes on the vesting date Both the above statements are wrong Both the above statements are correct. Which one of the following statements is correct? A money back type of policy is a variable insurance policy A convertible policy is a variable insurance policy Both the statements above are correct Both the statements above are wrong
Which one of the following statements is correct? The agent is expected to make his report commenting on the risk factors The agents report is important for the underwriter Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The underwriter assesses the risk No policy can be issued without the underwriters decision Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A clause restricts the benefits under the policy A lien operates for a specific period Both the statements above are correct Both the statements above are wrong The date of issue of the FPR indicates The date when the risk effectively begins The date when the next premium falls due The date when the policy will commence None of the above Which one of the following statements is correct? An endorsement may be placed on the policy at the very beginning The nomination may be made later by an endorsement Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The proposal must be signed in the language in which it is printed The proposal can be signed in any language Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The policy has to be given to the insurer at the time of surrender The policy has to be given to the insurer at the time of taking a loan Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? On revival, the relevant SA for underwriting is the original SA On revival, the relevant SA for revival is the original SA less paid up value Both the statements above are correct Both the statements above are wrong
Which one of the following statements is correct? Vested bonus is also reduced along with SA in paid up cases Paid up option is effective from date of first unpaid premium Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? No alteration can be made without the request of the policyholder Some kind of alterations do not require the consent of the insurer Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? Foreclosure can be done only with the consent of the policyholder Foreclosure can be done only after informing the policyholder Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? If the nominee is a minor, the claim can be paid to the guardian If the nominee dies, the claim can be paid to the heirs of the nominee Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? If there is an assignment, the will is not valid If there is a nomination, the will is not valid Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The death claim is settled in favour of the nominee in MWP Act cases The death claim is settled in favour of the trustee in MWP Act cases Both the statements above are correct Both the statements above are wrong If the heirs allege that the insured person is mentally deranged, the insurer should Ask the heirs to produce a stay order from the court Ignore the allegation and pay the maturity claim Apply to the court for appropriate directions Ask the insured person for his observations Which one of the following statements is correct? An indemnity bond is asked for when there is no clear proof of title An indemnity bond is not necessary when there is a probate of a will Both the statements above are correct Both the statements above are wrong
Which one of the following statements is correct? The claim may be repudiated, if the age is found to be different Insurer need not wait for formal death intimation Both the statements above are correct Both the statements above are wrong Before paying a claim, which of the following have to be verified? Premiums paid till date Balance of loan, if any Title of claimant All the three mentioned above State which of the following statements is correct ULIPs cannot be issued as participating policies Loans are not given under ULIPs Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs, the best benefits come from growth funds In ULIPs, the best benefits come from the balanced funds Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs, the best benefits come from growth funds In ULIPs, the best benefits come from the balanced funds Both the above statements are correct Both the above statements are wrong A person is an insurance agent because of The licence given to him His knowledge His duties His salary Which of the following statements is not correct? An agent should be able to suggest a total financial package for the prospect An agent should be an expert only with regard to life insurance An agent should be up-to-date on the tax laws An agent should be aware of the IRDA regulations A licence for insurance agency will not be given unless the person Has passed an examination prescribed by the IRDA Is 21 years of age Has undergone training Satisfies all the above conditions
40 a b c d 41 a b c d 42 a b c d 43
The Insurance Association is A trade union of insurance employees A voluntary association of insurers to negotiate with the IRDA A body constituted by the IRDA Act None of the above State which one of the following statements is correct? The consumer forum can summon witnesses The Ombudsman can summon witnesses Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? A rural area is defined in the Constitution of India Business in the rural areas can be done only by rural agents Both the statements above are correct Both the statements above are wrong Calculate monthly premium (rounded off to next higher rupee) SA Rs 60,000/- endowment - 39 years, date of maturity 28.09.2045, Large sum assured rebate Rs. 1.50 for Rs. 50,000 and above. Date of Birth - 26.12. 1976 Premium per thousand SA For age next birthday 29 -Rs 27.46, 30-Rs 28.83, 31-Rs 29.37 137 140 141 142
a b c d
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a b c d 45
Given the following information, indicate which of the four options given below would be the correct premium to be deducted from the salary of a person born on 28.6.1974, who has taken an endowment policy on his life. Sum assured Rs. 40,000 Term 35 years Date of maturity 24.12.2037 Tabular premium for age nearest birthday 27- Rs.27.46 per thousand Tabular premium for age nearest birthday 28- Rs.27.83 per thousand Tabular premium for age nearest birthday 29- Rs.28.37 per thousand Premium adjustment - 5% extra for monthly mode, Re. 1 less for half yearly mode and Rs. 1.50 less for yearly mode SA Rebate Rs. 1.50 less for Rs. 50,000 and above 87.77 89.57 92.80 97.41 Find out the loan payable at 90% of surrender value as on 5.4.2007 on the basis of following data, (the answer to be rounded off to the next higher rupee)
SA. Rs 40,000 DOC 15.09.1991 Endowment without profit - 31 years

Due date of last quarterly premium paid 15-12-2006 Bonus vested Rs.34, 000 -, SV factor duration 14 yrs 22%, 15 yrs 25%, 16 yrs 30% a 8325 b 12150
c 14580 d None of these
Correct Answers 1d 2d 3d 4c 5b 6c 7a 8c 9b 10 a 11 d 12 b 13 a 14 b 15 d
Practice Paper 16 c 17 c 18 c 19 a 20 c 21 b 22 c 23 b 24 b 25 c 26 b 27 d 28 a 29 b 30 a
2 31 c 32 b 33 d 34 c 35 d 36 d 37 c 38 b 39 d 40 d 41 a 42 d 43 a 44 c 45 b
Name Branch 1 a b c d 2 a b c d 3 a b c d 4 a b c d 5 a b c d 6 a b c d 7 a b c d 8
Which of the following events are insurable in a life insurance policy? The child to be a born is not a male child The child, when born, has physical deformities Neither of the above situations Both the above situations A human beings value is measured by The income that he generates The value of the goods that he produces His academic qualifications All of the above State which of the following statements is correct Risk, if certain, cannot be insured. Risk refers to the loss that happens Both the above statements are correct Both the above statements are wrong In the case of life insurance, the risks Can be avoided Cannot be avoided Are avoidable through medical science Are avoidable through proper food habits Which one of the following statements is correct? Life insurance helps people to get loans for car or house Life insurance helps policyholders to save income tax Both the above statements are correct Both the above statements are wrong Which one of the following statements is correct? A person with an established business does not need life insurance Life insurance is necessary to save income tax Both the above statements are correct Both the above statements are wrong Which one of the following statements is correct? The sum of all the premiums paid will be more than the Sum Assured The sum of all the premiums paid will be less than the Sum Assured Both the above statements are wrong Both the above statements are correct The addition to the life fund arises because of the a Loading in the premium for bonus
b The practice of charging level premiums c Not having paid the claims on time d All the above reasons 9 a b c d 10 a b c d 11 a b c d 12 a b c d 13 a b c d 14 a b c d 15 a b c d 16 a b c d Which one of the following statements is correct? The sum of all the premiums paid will be more than the Sum Assured The sum of all the premiums paid will be less than the Sum Assured Both the above statements are wrong Both the above statements are correct Which one of the following statements is correct? Convertible plan policies do not participate in bonuses Money back policies are not convertible plan policies Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? The cover in a group policy could depend on the ages of the lives insured The cover could be a uniform flat rate for all employees of a certain category Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? If the option of conversion is not exercised, the policy will come to an end If the option of conversion is not exercised, the policy will continue as before Both the statements above are wrong Both the statements above are correct Which one of the following statements is correct? Only participating policies are entitled to the benefit of bonus A bonus is the return of additional premium paid by a participating policy Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? An annuity policy guarantees a pension An annuity policy is issued only after a medical examination Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A premium waiver option is allowed as a rider The premium on all riders depend on the age of the insured person Both the statements above are correct Both the statements above are wrong Under the system of non-medical underwriting There is no restriction on age There is no restriction on SA There is restriction on both the SA and age Only some towns are covered
17 a b c d 18 a b c d 19 a b c d 20 a b c d 21 a b c d 22 a b c d 23 a b c d 24 a b c d 25
Which one of the following statements is correct? Working women are treated on par with men Educated women are treated on par with men Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? If the underwriter feels that the risk is more, he will accept at OR If the underwriter feels that the risk is more, he may impose a lien Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A policy is specific and relevant only to a particular contract A policy is a specimen, applicable to all cases under a specified plan Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? Once the FPR is issued, the policyholder cannot back out of the contract Policies can be back dated to any date within the financial year FPR is evidence of the insurance contract All the three statements above are wrong Which one of the following statements is correct? In the case of SSS policies, the employer gets the renewal premium receipts In the case of SSS policies, FPRs are not issued Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A policy which is foreclosed can be reinstated Wife is automatically the beneficiary under a MWP Act policy Both the statements above are correct Both the statements above are wrong If a policy is under the MWP Act, It can be surrendered by the beneficiaries A loan can be taken by the trustees It can be made paid up It can be assigned A policy which has been assigned, will revert to the assignor If the assignor survives till maturity Whenever the assignor demands it When the conditions specified in a conditional assignment happen On maturity of the policy When a policy is foreclosed, it benefits a The policyholder b The insurer
c Both the policyholder and the insurer d Neither the policyholder nor the insurer 26 a b c d 27 a b c d 28 a b c d 29 a b c d 30 a b c d 31 a b c d 32 a b c d 33 a b c d 34 If the age proof submitted along with proposal is later found to be false, the insurer May declare the policy null and void ab initio May revise the premium on the basis of the actual age from the commencement May revise the premium and other terms of the contract May do any one of the three suggested above Which one of the following statements is correct? On revival, the original terms of the policy will not be affected On revival, the original terms of the policy may be changed Both the statements above are correct Both the statements above are wrong In which of the above cases, is the claimant likely to feel most anxious? Death claim within two years Surrender cases Applications for loans Survival benefit cases Which one of the following statements is correct? If there is an assignment, the will is not valid If there is a nomination, the will is not valid Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The insurer need not contest court orders relating to policy moneys The insurers should not sit on judgment between rival claims to policy moneys Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? When a claimant produces the original will, no further proof is necessary An affidavit filed before a court by the heirs is adequate evidence of title Both the statements above are correct Both the statements above are wrong If a claim is made in January 2007 under a policy, which commenced in May 2002, stating that the life insured had died in April 2004, Section 45 of the Act will not apply The claim can be treated as an early claim Foul play must be suspected All the three statements above are correct Which one of the following statements is correct? Frauds are more likely in death claim cases than in maturity cases If the life insured had died one month before maturity date, it is a death claim Both the statements above are correct Both the statements above are wrong State which of the following statements is correct
a b c d 35 a b c d 36 a b c d 37 a b c d 38 a b c d 39 a b c d 40 a b c d 41 a b c d 42
In ULIPs, the premium will be invested as per the offer price The offer price will always be higher than the bid price Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs the entire premium paid is invested in the chosen fund. The entire premium less cost of insurance is invested in the chosen fund Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs the entire premium paid is invested in the chosen fund. The entire premium less cost of insurance is invested in the chosen fund Both the above statements are correct Both the above statements are wrong When is the job of a life insurance agent over? As soon as the policy is issued When the claim arises under the policy When the claim is paid under the policy It is not over as long as the policyholder or any member of his family is alive Which of the following laws affect the working of an insurance agent? The Insurance Act The Contract Act The Income Tax Act All the three mentioned above When is the job of a life insurance agent over? As soon as the policy is issued When the claim arises under the policy When the claim is paid under the policy It is not over as long as the policyholder or any member of his family is alive State which one of the following statements is correct? The tax provisions are the same for all kinds of savings The tax provisions are included in the Constitution Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? Agents are appointed separately to work in the rural sector Any agent can do business from the rural areas Both the statements above are correct Both the statements above are wrong The Insurance Act deals with
a Registration of insurers b Investments of insurance funds c Licensing of agents
d All of the above
43
a b c d
On the basis of the following data S.A. Rs. 1, 00,000/- tabular premium. Rs. 33.10 Rebate Rs. 2/- per thousand for yearly mode. Re 1/- for half yearly, none for quarterly. SA Rebate Rs. 3/- per thousand for Rs. 1, 00,000 and above. DAB Re. 1/- per thousand Occupation extra Rs. 4/- per thousand. Calculate the yearly premium. 2810 3110 3310 3360
44
Find out the loan payable at 90% of surrender value on the basis of following data, (the answer to be rounded off to the next higher rupee)
SA. Rs 1, 00,000 DOC 14.11.2001 Endowment without profit - 20 years

a b c d Due date of last premium paid 14-05-2007 mode half yearly, SV factor 32% 7773 8370 9068 None of these
45
Given the following data, state which of the following is the correct amount of the claim payable under the policy. Plan and term Endowment 38 years Sum assured Rs. 50,000 Date of commencement 20.05.1989 Date of death of life assured 18.8.2002
Quarterly premium Rs. 320 due in August 2002 paid on 6th August 2002.
a b c d Bonus vested Rs. 36000. Interim bonus declared after valuation on 31.3.2001. Rs. 68 per thousand 85360 88760 86320 89720
Correct Answers 1c 2a 3c 4b 5c 6d 7c 8b 9c 10 b 11 c 12 b 13 a 14 a 15 a
Practice Paper 16 c 17 c 18 b 19 a 20 b 21 d 22 a 23 c 24 c 25 d 26 d 27 b 28 a 29 a 30 c
3 31 d 32 d 33 c 34 a 35 d 36 d 37 d 38 d 39 d 40 d 41 b 42 d 43 c 44 b 45 b
Name Branch 1 a b c d 2 a b c d 3 a b c d 4 a b c d 5 a b c d 6 a b c d 7 a b c d The business of insurance affects Availability of capital for business The life span of individuals The safety of equipments in factories All these three Insurance benefits replace
All physical losses, in full All physical losses, partly All monetary losses, in full The monetary losses, but only to some extent In a life insurance contract, the beneficiary may be the The policyholder The life insured The dependents of the life insured All the three mentioned above Which one of the following statements is correct? The principle of utmost good faith applies only to life insurance The principle of utmost good faith applies only to non-medical cases The principle of utmost good faith is operative only for two years All the above statements are incorrect An insurance contract is valid because It is not a wagering contract It promotes socially desirable causes It takes care of the destitute It provides Government with large funds Which one of the following statements is correct? It is difficult to accurately value a human life. It is possible to reasonably estimate the value of a human life. Both the statements are correct Both the statements are wrong The premium printed on the schedule of the policy is worked out from Net premiums Risk premiums Office premiums None of the above
The addition to the life fund arises because of the Loading in the premium for bonus The practice of charging level premiums Not having paid the claims on time All the above reasons Which one of the following statements is correct? The premium collected in the early years is less than what is required The premium collected in the early years is more than what is required The premium collected in any year is exactly what is required All the above statements are correct Which one of the following statements is correct? Convertible plans allow whole life plans to be altered to endowment plans The option of conversion can be exercised whenever the policyholder chooses to Both the statements above are wrong Both the statements above are correct State which one of the following statements is correct? A group insurance contract is between the insurer and the insured persons The extent of insurance cover is chosen by each individual member Both the statements above are correct Both the statements above are wrong Which of the following could be the basis of the cover in a group policy? Amount of annual income Level in the hierarchy Age of the person All the three above Which one of the following statements is true with regard to Childrens policies? The ownership of the policy changes on the deferred date The ownership of the policy changes on the vesting date Both the above statements are wrong Both the above statements are correct. Which one of the following statements is true with regard to Childrens policies? Risk cover begins on or after vesting date Risk cover begins immediately after the policy commences Both the statements above are wrong Both the above statements are correct For the same age, SA and term, the premium under an Endowment policy Will be the same as in a limited payment Endowment policy Will be more than in a limited payment Endowment policy Will be less than in a limited payment Endowment policy Can be same, more or less than in a limited payment Endowment policy
Which one of the following statements is correct? In the case of a lien, the amount payable on death will vary from year to year A lien operates till the policy matures Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? An underwriter acts in the interests of the policyholders as a whole An underwriter acts in the interests of the insurance company Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? In some cases, the underwriter consults the reinsurers before deciding The numerical method of underwriting is the best method Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? If policy document is lost, the insurance contract becomes void The family history appears in the personal statement Both the statements above are correct Both the statements above are wrong The FPR is issued when The first premium is adjusted in the office The first premium is deposited in the office The underwriter makes his decision Consent of the proposer is received The FPR is important Till the policy is issued Till the claim is settled As evidence of contract in case the original policy is lost To know the terms of acceptance Which one of the following statements is correct? Assignee is free from the assignors obligations under the policy A nomination is automatically cancelled when a loan is taken under the policy Both the statements above are correct Both the statements above are wrong When a policy is foreclosed, the insurer will Pay the balance moneys to the nominee Offer to reinstate the policy on original terms Pay balance surrender after adjustment of all outstanding dues Do none of the above
Which one of the following statements is correct? The amount of loan can be more than the surrender value Loans are available on paid up policies Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The Insurance Act does not protect those who try to cheat the insurer Section 45 does not apply if the policy had been revived within a year Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? When a loan is taken under the policy the nomination is cancelled A loan will be paid only when the policy is assigned to the insurer Both the statements above are correct Both the statements above are wrong If a policy is under the MWP Act, It can be surrendered by the beneficiaries A loan can be taken by the trustees It can be made paid up It can be assigned Which one of the following statements is correct? A death claim within two years of revival is treated as an early claim A death claim within two years of an alteration is treated as an early claim Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A survival benefit is paid only to the life insured A death claim can be paid only to the nominee Both the statements above are correct Both the statements above are wrong In the case of a life insured who is a defence personnel and is missing in action Presumption of death is automatic Presumption of death depends on the certificate of the military unit Presumption of death depends on the court orders Presumption of death will have to wait for seven years Which one of the following statements is correct? No claim can be paid without either the original or the duplicate policy No maturity claim can be paid without the life insureds signature Both the statements above are correct Both the statements above are wrong
In which of the following cases, is the maximum documents asked for? Death claim Maturity claim Survival benefits Annuity cases Which one of the following statements is correct? Rival claimants to policy moneys should resolve the dispute themselves The insurer need not examine the validity of rival claims to policy moneys Both the statements above are correct Both the statements above are wrong State which of the following statements is correct In ULIPs, loans are available In ULIPs, partial withdrawals are permitted periodically Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs, the death benefit may be integrated In ULIPs, the death benefit will be the basic SA only Both the above statements are correct Both the above statements are wrong State which of the following statements is correct ULIPs provide for flexibility ULIPs are better than traditional policies Both the above statements are correct Both the above statements are wrong A person is an insurance agent because of The nature of his duties His designation The training given to him All the three mentioned above Which of the following statements is true? An insurance agent is a full time employee of the insurer An insurance agent is a part time employee of an insurer An insurance agent is not an employee of an insurer An insurance agent is not allowed to have any other employment State which one of the following statements is correct Ethical behaviour leads to improved business and earnings Ethical behaviour is automatic when the policyholders interest are kept in mind Both the statements above are correct Both the statements above are wrong
40 a b c d 41 a b c d 42 a b c d 43
Which of the following matters can be referred to the Ombudsman? A complaint that the extra charged is not reasonable Grievance against the decision of a consumer forum Dispute on the amount offered by the insurer to settle a claim All of the above State which one of the following statements is correct? Tax benefits are part of policy conditions. Tax benefits available in the first year of the policy, do not change thereafter Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? Life insurance policies provide savings in taxes The income tax relief will be the same throughout the policy term Both the statements above are correct Both the statements above are wrong Calculate half yearly premium on the basis of the following data Date of birth 28.06.1978. Date of maturity 24.12.2041, SA Rs 1, 00,000 term 35 years. Tabular premium for age next birthday- age 27 Rs. 27.46, for age 28 Rs. 27.83 & for age 29 Rs. 28.37. Rebate 5 % extra for monthly, less Rs. 1/- for half yearly, Rs. 1.50 for yearly, SA rebate Rs. 1.50 for SA Rs. 50000/- and above. 1266.50 1267.00 1293.50 1294.00
a b c d
44
a b c d
Find out surrender value on 01.09.2007, on the basis of following data (the answer to be rounded off to the next lower rupee). SA Rs.50, 000 DOC- 13.7.2001, Endowment without profit 25 years Due date of last premium paid 13.07.2006 : Yearly mode SV factor 5 yrs 23.91%, 6 yrs 24.63%, 7 yrs 26.48% 2869 2955 3177 None of these
45
The life assured under an endowment without profits policy for 20 years
for Rs.1, 00,000/- SA. with DAB rider died on 30th June 2007 committing suicide. The policy was taken on 21st March 2007 and was backdated to 1st April 2006. Determine the amount of claim payable Nothing 100,000 200,000 Return of premium
a b c d
Correct Answers 1a 2d 3d 4d 5a 6c 7c 8b 9b 10 a 11 d 12 d 13 b 14 c 15 c
Practice Paper 16 a 17 c 18 a 19 b 20 a 21 a 22 d 23 c 24 b 25 c 26 c 27 c 28 a 29 d 30 b
4 31 d 32 a 33 a 34 b 35 c 36 a 37 a 38 c 39 c 40 c 41 d 42 a 43 c 44 b 45 a
Name Branch 1 a b c d 2 a b c d 3 a b c d 4 a b c d 5 a b c d 6 a b c d 7 a b c d 8 The business of insurance has
Social implications Impact on economic development of the country Impact on the economic well being of families All the above implications The competition for the business of life insurance is Non-life insurance Small savings House property None of these three State which of the following statements is correct Risk is uniform for all assets Life insurance improves standards of living Both the above statements are correct Both the above statements are wrong Which one of the following statements is correct? Duty to disclose applies till the claim arises in life insurance Insurers are responsible for adverse selection Both the statements are correct Both the statements are wrong Which one of the following statements is correct, with reference to life insurance? The claim payable is subject to the principle of indemnity The claim payable will depend on the Sum Assured The claim payable will depend on the income of the deceased person The claim payable will depend on the size of the family left behind Which of the following statements is correct? The principle of indemnity does not apply to life insurance policies The principle of indemnity does not apply to insurance on human beings The principle of indemnity does not apply to third party motor insurances All the above statements are wrong Which one of the following statements is correct? The annual premium must be twelve times the monthly premium The annual premium may be less than twelve times the monthly premium Both the above statements are wrong Both the above statements are correct The premium printed on the schedule of the policy is worked out from
a Net premiums
b Risk premiums c Office premiums d None of the above 9 a b c d 10 a b c d 11 a b c d 12 a b c d 13 a b c d 14 a b c d 15 a b c d 16 a b c d Which one of the following statements is correct? The life fund belongs to the policyholders The life fund belongs to the shareholders Both the statements above are correct Both the statements above are wrong A plan of insurance is said to be different from another if The date of maturity is different The date of commencement of risk is different The underwriter decides to charge extra premium in one case The conditions when the sum assured becomes payable are different Which one of the following statements is true with regard to Childrens policies? On the deferred date, the insured child has to be at least 15 years old On the deferred date, the insured child need not be a major On the deferred date, the policy must have been in force for at least ten years All the statements above are wrong In what ways does group insurance differ from salary savings schemes? Number of persons insured under a policy Responsibility of employer Issue of premium receipts In all the above three respects Which one of the following statements is correct? There is no difference between a term assurance plan and a Whole Life plan A Whole Life plan is a term assurance plan with an indefinite term Both the statements above are wrong Both the statements above are correct Who pays for the premium in the group policy? The insured persons only The person who has the master policy only Both the insured persons and policyholder jointly Any one of the three ways above State which one of the following statements is correct? A master policy is issued in a group insurance policy Each member in a group policy pays the premium directly to the insurer Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? By writing a truthful report, the agent is helping the insurer By writing a truthful report, the agent is helping the life to be insured Both the statements above are correct Both the statements above are wrong
Which one of the following statements is correct? The underwriter assesses the risk No policy can be issued without the underwriters decision Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? An underwriter is an actuary An underwriter uses financial and medical data Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The declaration in the proposal makes the principle of good faith operational The declaration in the proposal establishes insurable interest Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A copy of the proposal has to be given to the proposer A copy of the medical report has to be given to the proposer Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The policy is the basis of the insurance contract The proposal is the basis of the insurance contract Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A lapse is effectively a case of adverse selection A lapse should make the agent reflect on the correctness of the sale Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A nominee must be above 18 years of age A nominee must be a close relative Both the statements above are correct Both the statements above are wrong How does automatic advance of premium differ from extended term assurance? In the duration for which the policy will remain in force In the amount of SA payable on death In the ease of reviving the policy to original terms Likelihood of terminating without any cash payment to the policyholder In which of the following aspects do the three non-forfeiture options differ? a The extent of insurance cover b The amount of debt on the policy
c The amount payable on maturity d On all the above three 26 a b c d 27 a b c d 28 a b c d 29 a b c d 30 a b c d 31 a b c d 32 a b c d 33 a b c d 34 Which one of the following statements is correct? Outstanding amounts of loans are deducted from the claim amount Fresh loans cannot be taken till the earlier loan is repaid Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? Age is material information and may affect the terms of underwriting If age is found to be different, the only effect is on the premium rate Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The claim may be repudiated, if the age is found to be different Insurer need not wait for formal death intimation Both the statements above are correct Both the statements above are wrong When a court orders that a missing insured person is presumed to be dead, The premiums paid since his disappearance are returned along with the claim The date of death is taken to be the date of court order Enquiries will be made as in the case of early death claims Suicide clause will operate if the person was missing within one year of policy In which of the above cases, will the help of the agent be most useful? Death claims Maturity claims Survival benefits Annuity cases When a court orders that a missing insured person is presumed to be dead, The premiums paid since his disappearance are returned along with the claim The date of death is taken to be the date of court order Enquiries will be made as in the case of early death claims Suicide clause will operate if the person was missing within one year of policy Which one of the following statements is correct? Rival claimants to policy moneys should resolve the dispute themselves The insurer need not examine the validity of rival claims to policy moneys Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The insurer makes enquiries only in the case of death claims The insurer makes enquiries in the case of maturity claims also Both the statements above are correct Both the statements above are wrong State which of the following statements is correct
In ULIPs, if the policy is terminated earlier, a charge has to be paid In ULIPs, an administrative charge has to be paid every year Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs, the death benefit may be integrated In ULIPs, the death benefit will be the basic SA only Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs, one can pay additional premium in any year for investment In ULIPs, if one increases the premium, the SA must also be increased. Both the above statements are correct Both the above statements are wrong State which one of the following statements is correct Unethical behaviour can affect the settlement of the claim, if it is early Ethical behaviour is beneficial to the policyholder, but not to the agent Both the statements above are correct Both the statements above are wrong Which of the following laws affect the working of an insurance agent? The Insurance Act The Contract Act The Income Tax Act All the three mentioned above State which one of the following statements is correct An agent has to ensure that nominations are changed whenever necessary An agent is the agent of the proposer / policyholder Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? A rural area is defined in the IRDA Act A rural area is an area outside municipal limits Both the statements above are correct Both the statements above are wrong state which one of the following statements is correct? A consumers forum is set up exclusively for insurance matters There is no appeal against the decision of the consumer forum Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct?
a Every insurer has to do a minimum SA of business from the rural areas b Every insurer has to do a minimum number of policies from the rural areas c Both the statements above are correct
d Both the statements above are wrong 43 Given the following information, indicate which of the four options given below shows the monthly premium (rounded off to the nearest rupee) to be paid by a person born on 28.6.1974, who has taken an endowment policy on his life. Sum Assured Rs. 40,000 Term 35 years Date of maturity 24.12.2037 Tabular premium for age nearest birthday 27 - Rs.27.46 per thousand Tabular premium for age nearest birthday 28 - Rs.27.83 per thousand Tabular premium for age nearest birthday 29 - Rs.28.37 per thousand Premium adjustment - 5% extra for monthly mode, Re. 1 less for half yearly mode and Rs 1.50 less for yearly mode SA Rebate Rs. 1.50 less for Rs. 50,000 and above 97.00 97.40 97.50 None of the above (a) 97.00 (b) 97.40 (c) 97.50 (d) None of the above 44
a b c d
Find out the loan payable at 90% of surrender value on the basis of following data, (the answer to be rounded off to the next higher rupee) SA. Rs 50,000 DOC 19.02.2002 Endowment without profit - 20 years
a b c d Due date of last unpaid premium 19-02-2006 mode yearly Bonus declared Rs.60/- per thousand SA. Every year since 2001, SV factor 32% 2880 8784 9760 None of these Given the following data, state which of the following is the correct amount of the claim payable under the policy. Plan and term Endowment 40 years Sum assured Rs. 50,000 Date of commencement 20.02.1989 Date of death of life assured 18.02.2002
45
Quarterly premium Rs. 300 due in February 2002 paid on 6th February 2002.
a b c d Bonus vested Rs. 36,000. Interim bonus declared after valuation on 31.3.2001. Rs. 68 per thousand 86000 89400 86300 89700 Correct Answers 1d 2d 3b 4d 5b 6a 7b 8c 9a 10 d 11 b 12 d 13 b 14 d Practice Paper 16 c 17 c 18 b 19 a 20 a 21 b 22 c 23 d 24 a 25 d 26 a 27 a 28 b 29 b 5 31 b 32 a 33 a 34 c 35 c 36 a 37 a 38 d 39 c 40 d 41 d 42 b 43 a 44 a
15 a
30 a
45 d
Name Branch 1 a b c d 2 a b c d 3 a b c d 4 a b c d 5 a b c d 6 a b c d 7 a b c d 8 Insurance works on the principle of Trust Sharing Randomness All of the above Insurance is legitimate
when an adverse happening is likely When an adverse happening is unlikely When an adverse happening is certain In all the above three situations Insurance benefits replace All physical losses, in full All physical losses, partly All monetary losses, in full The monetary losses, but only to some extent Which one of the following statements is correct? People hesitate to buy life insurance because they are not aware of their needs People hesitate to buy life insurance because they prefer to enjoy the present Both the statements are correct Both the statements are wrong Which is the right time for taking life insurance? When you are about to get married Soon after you have got married Just when you are joined a new job All the three times are right Retention of risk may be done conveniently by Large corporations Small companies Single individuals None of the three A valuation is done by a life insurer because It is a statutory requirement It is necessary to be able to declare dividends to shareholders It tells the insurer how well it is managing the business All of the above The reason for charging level premiums is
a Risk increases as age increases
b It is convenient to the policyholder c It is convenient to the insurer d All the above reasons 9 a b c d 10 a b c d 11 a b c d 12 a b c d 13 a b c d 14 a b c d 15 a b c d 16 a b c d What does a premium depend upon? The place of worship visited by the person to be insured The state of health of the policyholder The decision of the underwriter The report of the agent State which one of the following statements is correct? In group insurance, a single policy is issued covering many persons A master policy covers servants of a master Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? In a limited payment policy, there is a maximum limit to the SA In a limited payment policy, there is a maximum limit to the term Both the statements above are wrong Both the statements above are correct Which one of the following statements is true with regard to Childrens policies? On vesting, the insured person has an option to change the term of the policy On vesting the insured person has an option to increase the SA Both the statements above are wrong Both the statements above are correct Which of the following could be the basis of the cover in a group policy? Height of the life insured Age of the life insured Size of the insureds family All the three above Which one of the following statements is true with regard to Childrens policies? On vesting, the insured person has an option to change the term of the policy On vesting the insured person has an option to increase the SA Both the statements above are wrong Both the statements above are correct Which one of the following statements is correct? Every plan of insurance is a combination of two basic plans The name given to a plan indicates the benefits available under the plan Both the statements above are correct Both the statement s above are wrong Which one of the following statements is correct? Underwriting is done only when there is a medical examination Medical examination is necessary before a policy can be issued Both the statements above are correct Both the statements above are wrong
Which one of the following statements is correct? The underwriter determines the premium to be charged The underwriter is an employee of the insurer Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? If the underwriter feels that the risk is more, he will accept at OR If the underwriter feels that the risk is more, he may impose a lien Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The schedule of a policy is not altered after the policy is issued Changes in the terms of the policy are made through endorsements Both the statements above are correct Both the statements above are wrong The date of issue of the FPR indicates The date when the risk effectively begins The date when the next premium falls due The date when the policy will commence None of the above Which one of the following statements is correct? In the case of SSS policies, renewal premium receipts are issued In the case of SSS policies, FPRs are issued Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? Assignee is free from the assignors obligations under the policy A nomination is automatically cancelled when a loan is taken under the policy Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The beneficiaries under the MWP Act can be any member of the family A policy can be taken under the MMWP Act for the benefit of parents Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? Foreclosure can be done only with the consent of the policyholder Foreclosure can be done only after informing the policyholder Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? a Revivals are not done unless the entire outstanding premium is paid b Revivals are not done unless the underwriter agrees
c Both the statements above are correct d Both the statements above are wrong 26 a b c d 27 a b c d 28 a b c d 29 a b c d 30 a b c d 31 a b c d 32 a b c d 33 a b c d 34 Which one of the following statements is correct? Foreclosure action cannot be taken till a notice is served on the policyholder When a foreclosure action is taken, nothing is payable to the policyholder Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The beneficiaries under the MWP Act can be any member of the family A policy can be taken under the MMWP Act for the benefit of parents Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A presumption of death is not the same as proof of death Presumption of death allows inheritance of property Both the statements above are correct Both the statements above are wrong When does a claim arise under an insurance policy? Whenever the policyholder feels the need for money When the insured events happen When a premium is not paid Whenever any of the three things mentioned above happen Which one of the following statements is correct? Maturity claim cheques are paid to the trustees in a MWP Act case Maturity claim cheques are paid to the beneficiaries in a MWP Act case Both the statements above are correct Both the statements above are wrong If a claim is made in January 2007 under a policy, which commenced in May 2002, stating that the life insured had died in April 2004, Section 45 of the Act will not apply The claim can be treated as an early claim Foul play must be suspected All the three statements above are correct Which one of the following statements is correct? A policy reported to be lost, may actually have been assigned A policy has no value after the payment of survival benefits Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The foreign exchange regulations apply if the life insured is a non-resident The foreign exchange regulations apply if the claimant is a non-resident Both the statements above are correct Both the statements above are wrong State which of the following statements is correct
ULIPs provide for flexibility ULIPs are better than traditional policies Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs, the offer bid spread is the difference between the two prices In ULIPs, the offer bid spread, will in some cases be zero Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs the insurance cover must be a minimum multiple of the premium ULIPs can be surrendered after two years Both the above statements are correct Both the above statements are wrong State which one of the following statements is correct Life insurance is the best savings scheme for all persons Life insurance is the best investment scheme for young persons Both the statements above are correct Both the statements above are wrong Which of the following statements is correct? An insurance agent has fixed working hours An insurance agent has to mark his attendance in office every day An insurance agent works according to his schedule An insurance agent cannot do any other work State which one of the following statements is correct When vital information is not disclosed, the policyholder is benefited When a claim is repudiated, the agents trustworthiness is affected Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? The social sector is not only in the urban areas The social sector includes the unorganized sector Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? The Ombudsmans authority is limited to claims matters only The Ombudsman is not a judicial authority Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct?
a The tax provisions are the same for all kinds of savings b The tax provisions are included in the Constitution c Both the statements above are correct
d Both the statements above are wrong 43 A proposal for SA of Rs. 10 lakhs with DAB for monthly mode under SSS. Proposer had a previous policy of Rs. 5 lakhs with DAB. Proposal was accepted with health extra of Rs. 2.75 per thousand SA premium for DAB Re 1 per thousand. 5% extra for monthly mode. large SA rebate of Rs 2/- per thousand for 1 lakh and above. Tabular premium Rs. 48.20 maximum total SA on which DAB is allowed is Rs. 10/- lakhs. Find monthly (SSS) premium, rounded off to the next higher rupee 4102 4121 4183 4195
a b c d
44
a b c d 45
Find out surrender value on the basis of following data (the answer to be rounded off to the next lower rupee). SA Rs.30, 000 DOC- 15.6.1992, Endowment with profit - 30 years Due date of last premium paid 15-06-2007 mode half yearly Accrued bonus Rs.750/- per thousand SA. SV factor 23% 3670 3765 8740 None of these A money back policy for SA. of Rs.50,000/- Matured after 25 years.
Survival benefits of 15% each had been paid at the end of 5th, 10th, 15th,
a b c d and 20th years. Bonus had accrued at Rs.965/- per Rs.1000/- SA. Interim bonus @ Rs.25/- per thousand SA is payable. What is the maturity claim amount? 68250 69500 98250 99500
Correct Answers 1d 2a 3d 4c 5d 6a 7d 8d 9c 10 a 11 c 12 c 13 b 14 c 15 a
Practice Paper 16 d 17 c 18 b 19 c 20 a 21 b 22 d 23 d 24 b 25 d 26 a 27 d 28 c 29 b 30 a
6 31 d 32 a 33 c 34 a 35 c 36 a 37 d 38 c 39 b 40 c 41 b 42 d 43 b 44 c 45 b
Name Branch 1 a b c d 2 a b c d 3 a b c d 4 a b c d 5 a b c d 6 a b c d 7 a b c d Insurance reduces the burden on The society Individual families Business houses All the three
Micro insurance can be transacted by Life insurers only Non-life insurers only Both life and non-life insurers Only by specially created insurers The asset, which is a human being, perishes when He dies He becomes disabled to work He retires from work In all the above situations In the case of life insurance, the principle of insurable interest operates In the same way as in marine insurance In the same way as in fire insurance In the same way as in motor insurance Differently than in other forms of insurances If the life to be insured falls sick, that fact has to be informed to the insurer If it happens within two years of commencement of risk If it happens before the first premium receipt is issued If it happens before the policy document is issued Only if there is a specific query from the insurer Which one of the following statements is correct? Many people think that they do not need life insurance Many people think that there is no hurry to buy life insurance Both the above statements are correct Both the above statements are wrong Which one of the following statements is correct? The premium collected in the early years is less than what is required The premium collected in the early years is more than what is required The premium collected in any year is exactly what is required All the above statements are correct
The policyholder is concerned with the Office premium Pure premium Net premium Risk premium The practice of charging level premiums has the benefit of Making it easy for the policyholder to maintain the insurance cover Increasing the returns to the policyholder Helping the agent in his sales effort All the above State which one of the following statements is correct? A master policy is issued in a group insurance policy Each member in a group policy pays the premium directly to the insurer Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? Any policy which promises a payment on a fixed date is an Endowment policy If the SA increases every year, it is a participating policy Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? In group insurance, a single policy is issued covering many persons A master policy covers servants of a master Both the statements above are correct Both the statements above are wrong Which of the following could be the basis of the cover in a group policy? Amount of annual income Level in the hierarchy Age of the person All the three above In what respect does group insurance differ from salary savings schemes? The person who pays the premium Responsibility to pay the premium Decision to take the policy In all the above three respects State which one of the following statements is correct? A trade union can take out a group insurance policy for its members The cover for an employee can be equal to his age multiplied by a fixed number Both the statements above are correct Both the statements above are wrong
Which one of the following statements is correct? An underwriter acts in the interests of the policyholders as a whole An underwriter acts in the interests of the insurance company Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? Underwriting is done only when there is a medical examination Medical examination is necessary before a policy can be issued Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? For a first class life, the premium charged is less than in the tabular rates For a first class life, the vested bonus will be more than in other cases Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The FPR acknowledges premium for the first year of the policy The second quarterly premium after commencement is called renewal premium Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The personal statement must be witnessed by the agent Personal statements are required only in medical cases Both the statements above are correct Both the statements above are wrong If a policyholder applies for cancellation of policy soon after he receives the FPR, The full premium will be refunded The full premium after some small deductions, will be refunded The policy will be treated as lapsed from the next premium due date He will be debarred from taking any further insurance policies Which one of the following statements is correct? A policy is made paid up only if the paid up value is of a minimum amount If the paid up value is not up to a level, the cash value is paid Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? Paid up value is subject to deduction of unpaid premiums When a policy is paid up, the surrender value option is lost Both the statements above are correct Both the statements above are wrong
Which one of the following statements is correct? When a policy lapses, the policyholder loses everything When a policy lapses, some benefits are protected Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A paid up policy is entitled to further bonuses A paid up policy is entitled to further bonuses if it is a with profits policy Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? When a nomination is made, the rights to the policy are transferred The assignee immediately becomes the policyholder Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The beneficiaries under the MWP Act can be any member of the family A policy can be taken under the MMWP Act for the benefit of parents Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? All maturity claims are paid in one lump sum All death claims are paid in one lump sum Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? An insurer makes enquiries to establish the fact of death The insurer makes enquiries to check facts stated in the proposal Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? Death certificate is required to be produced in all death claim cases Police inquest report is required in all death claim cases Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The claim may be repudiated, if the age is found to be different Insurer need not wait for formal death intimation Both the statements above are correct Both the statements above are wrong
Which one of the following statements is correct? Coroners report is necessary in all death claim cases Special reports are avoided in early death cases if death occurred in a hospital Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? An indemnity bond is necessary when the heirs challenge the nomination Heirs claiming the policy monies must be asked to obtain court decrees Both the statements above are correct Both the statements above are wrong State which of the following statements is correct In ULIPs, the death benefit may be integrated In ULIPs, the death benefit will be the basic SA only Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs, loans are available In ULIPs, partial withdrawals are permitted periodically Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs, the SA must not be less than 1.25 times single premium In ULIPs, the SA must not be less than 5 times instalment premium Both the above statements are correct Both the above statements are wrong When is the job of a life insurance agent over? As soon as the policy is issued When the claim arises under the policy When the claim is paid under the policy It is not over as long as the policyholder or any member of his family is alive Which of the following statements is true? An agent must look after the interests of the insurer An agent must look after the interests of the proposer Neither of the two statements is true Both the above statements are correct State which one of the following statements is correct Unethical behaviour can affect the settlement of the claim, if it is early Ethical behaviour is beneficial to the policyholder, but not to the agent Both the statements above are correct Both the statements above are wrong
40 a b c d 41 a b c d 42 a b c d 43
State which one of the following statements is correct? Matters referred to the Ombudsman may not be decided for years The Ombudsman cannot modify the terms of acceptance of the proposal Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? The surrender value is not treated as income The claim amount is not treated as income Both the statements above are correct Both the statements above are wrong Which of the following can a policyholder having a dispute with an insurer, approach? IRDA Ombudsman Consumers redressal forum Any of the above Calculate monthly premium (rounded off to next higher fifty paisa) SA Rs 30,000/- with DAB for Rs. 1/- per thousand and occupational extra of Rs. 1.75 per thousand. Data of Birth 21.10.1980. 5% extra for monthly mode of payment. Tabular premium Rs. 32.81 93.00 93.50 94.00 94.50
a b c d
44
Find out the surrender value on the basis of the following data, (the answer to be rounded off to the next higher rupee)
SA. Rs.60,000 DOC- 20.02.1993,

Endowment with profit - 20 years, Due date of last premium paid 20-05-2007, mode quarterly, Accrued bonus Rs.1095/- per thousand SA. SV factor 60% 23490 26100 65520 None of these
a b c d
45
a b c d
On the basis of the data given below, calculate the claim amount payable. Date of commencement 16.06.2002, SA Rs.50, 000/- with DAB. Endowment 20 years. Annual premium Rs.3000 Last premium paid, due 16.06.2006. Date of death 08.07.2007 due to road accident. 10000 20000 97000 100000
Correct Answers 1d 2c 3d 4d 5b 6c 7b 8a 9a 10 a 11 d 12 a 13 d 14 d 15 c
Practice Paper 16 c 17 d 18 d 19 b 20 d 21 b 22 c 23 d 24 b 25 d 26 b 27 d 28 d 29 b 30 a
7 31 b 32 d 33 b 34 c 35 b 36 c 37 d 38 d 39 a 40 b 41 c 42 d 43 a 44 c 45 c
Name Branch 1 a b c d 2 a b c d 3 a b c d 4 a b c d 5 a b c d 6 a b c d 7 a b c d
The probability of 50% for an event happening means that the event Will happen regularly every alternate occasion Will happen 50% of the time over a very large number of trials Will never exceed 50%, however large be the attempts made Will become closer to 50% as the attempts increase Insurance is meant to Prevent specified events Prevent damage to assets from specified events Compensate for losses from specified events Rebuild the assets lost because of specified events State which of the following statements is correct Risk is uniform for all assets Life insurance improves standards of living Both the above statements are correct Both the above statements are wrong Which one of the following statements is correct? The needs of people are different The needs of people vary according to life styles The needs of people depend on their upbringing All the three statements are correct Insurable interest is Defined in the Insurance Act Defined in the Contracts Act Defined by the IRDA Not defined in any written law In the case of life insurance, the risks Can be avoided Cannot be avoided Are avoidable through medical science Are avoidable through proper food habits Which one of the following statements is correct? The rate of premium charged can be less than the tabular rates The rate of premium can be more than the tabular rates Both the above statements are correct Both the above statements are wrong
Which one of the following statements is correct? The life fund belongs to the policyholders The life fund belongs to the shareholders Both the statements above are correct Both the statements above are wrong The surplus disclosed in a valuation means That the interests of the policyholders are safe That the funds of the insurer are adequate to meet its liabilities That the business is being managed well All of the above Which one of the following statements is incorrect? The SA payable on death can be more than the SA payable on maturity The SA payable on maturity can be more than the SA payable on death Both the statements above are correct Both the statement above are wrong Which one of the following statements is correct? The premium on a rider varies according to the basic plan The premium on riders cannot exceed specified limits of the basic premium Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The SA is always payable immediately on death or survival The SA payable on death may be paid long after the death of the insured Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? A rider modifies an existing condition in the policy A rider supplements or adds to an existing condition in the policy Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? In a deferred annuity policy, the premium has to be paid in a lump sum Annuities purchased during different years may all commence on the same date Both the statements above are correct Both the statements above are wrong A plan of insurance is said to be different from another if The date of maturity is different The date of commencement of risk is different The underwriter decides to charge extra premium in one case The conditions when the sum assured becomes payable are different
Under the system of non-medical underwriting There is no restriction on age There is no restriction on SA There is restriction on both the SA and age Only some towns are covered Which one of the following statements is correct? A medical referee examines the life to be insured The medical referee only sees the reports received by the insurer Both the statements above are correct Both the statements above are wrong Under the system of non-medical underwriting There is no restriction on age There is no restriction on SA There is restriction on both the SA and age Only some towns are covered Which one of the following statements is correct? The policy is the basis of the insurance contract The proposal is the basis of the insurance contract Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The FPR acknowledges premium for the first year of the policy The second quarterly premium after commencement is called renewal premium Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The proposal must be signed by a witness The answers in the proposal form should be written in English Both the statements above are correct Both the statements above are wrong If the premium was due on 15th July and 16th August is a Sunday The grace period will end on 14th August (Friday) The grace period will end on 15th August (Saturday) The grace period will end on 17th August (Monday) The grace period will end as per the discretion of the insurer If a policy is under the MWP Act, the policyholder is The life insured The beneficiaries The trustee The administrator
Which one of the following statements is correct? An assignment can be cancelled at any time by the assignor A nomination can be cancelled at any time by the life insured Both the statements above are correct Both the statements above are wrong In which of the following aspects do the three non-forfeiture options differ? The extent of insurance cover The amount of debt on the policy The amount payable on maturity On all the above three Which one of the following statements is correct? Age is important for the underwriter to consider the need for medical tests Age is material to decide on the plan that can be offered Both the statements above are wrong Both the statements above are correct Which one of the following statements is correct? The beneficiaries permitted under the MWP Act depend also on religion A MWP Act policy cannot be surrendered Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? When a claimant produces the original will, no further proof is necessary An affidavit filed before a court by the heirs is adequate evidence of title Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? The insurer should ignore a court attaching the moneys under a MWP Act policy, The insurer should not become a party to a dispute between rival claimants Both the statements above are correct Both the statements above are wrong Which one of the following statements is correct? Claims may be paid on the basis of indemnity, if title is not established Claims may be paid on the basis of indemnity, if original policy is lost Both the statements above are correct Both the statements above are wrong Why are enquiries made in the case of early claim? To ensure that there is no misstatement of facts To protect the interests of the community of policyholders To protect the interests of the insurers For all the above reasons
A missing person will be presumed to be dead only after Three years Five years Seven years Nine years Which one of the following statements is correct? A survival benefit is settled like a maturity claim A survival benefit is paid to the nominee if the policyholder dies Both the statements above are correct Both the statements above are wrong State which of the following statements is correct In ULIPs the premium is invested in a fund decided by the insurer In ULIPs the premium is invested in a fund decided by the policyholder Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs, a policyholder can switch between funds at any time In ULIPs, the premium to be invested in the fund can be increased in any year Both the above statements are correct Both the above statements are wrong State which of the following statements is correct In ULIPs, the NAVs are known only to the insurers In ULIPs, the NAVs are published regularly. Both the above statements are correct Both the above statements are wrong State which one of the following statements is correct When vital information is not disclosed, the policyholder is benefited When a claim is repudiated, the agents trustworthiness is affected Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct Ethical behaviour is prescribed in the IRDAs code of conduct Ethical behaviour is automatic when the policyholders interest are kept in mind Both the statements above are correct Both the statements above are wrong It is wrong to terminate an existing policy and take out a fresh one if The benefits under the new one are drastically different from the existing one The earlier policy was taken without fully understanding the implications of the MWP Act The agent who had recommended the earlier policy is not active any more It is done with a view to collect the higher first years commission
40 a b c d 41 a b c d 42 a b c d 43
State which one of the following statements is correct? The Ombudsmans recommendations are not binding on the complainant Insurers have to comply, if the complainant accepts what the Ombudsman says Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? Every insurer has to do a minimum SA of business from the rural areas Every insurer has to do a minimum number of policies from the rural areas Both the statements above are correct Both the statements above are wrong State which one of the following statements is correct? The social sector is only in the rural areas The social sector is only in the urban areas Both the statements above are correct Both the statements above are wrong Given the following information, indicate which of the four options given below would be the correct annual premium (rounded off to the nearest rupee) for an endowment policy on the life of a person born on 28.6.1974. Sum assured Rs. 50,000. Policy taken on 3rd March 2003, to be back dated by three months Tabular premium for age nearest birthday 27 - Rs.27.46 per thousand Tabular premium for age nearest birthday 28 - Rs.27.83 per thousand Tabular premium for age nearest birthday 29 - Rs.28.37 per thousand Premium adjustment - 5% extra for monthly mode, Re. 1 less for half yearly mode and Rs. 1.50 less for yearly mode SA Rebate Rs 1.50 less for Rs. 50,000 and above 1241.00 1241.50 1242.00 None of the above Find out loan available at 90% of surrender value as on 1.9.2007 on the basis of following data (the answer to be rounded off to the next lower rupee)
a b c d 44
SA Rs. 50,000 DOC- 13.7.2001,

a b c d 45 Endowment without profit = 25 years Due date of last premium paid 13.07.2096 : yearly mode SV factor 5 yrs 23.91%, 6 yrs 24.63%, 7 yrs 26.48% 2682 2660 2840 None of these Find out the loan payable at 90% of surrender value on the basis of following data, (the answer to be rounded off to the next higher rupee)
SA. Rs 50,000 DOC 13.07.1990 Endowment with profit - 25 years

Due date of last unpaid premium 13-04-2007 mode quarterly Premium amount Rs 450/- SV factor 56% Bonus is Rs 960 per thousand Interim bonus rate was Rs 75/a 35089 b 43815
c 47124 d None of these
Correct Answers 1d 2c 3b 4d 5d 6b 7b 8a 9d 10 c 11 b 12 b 13 b 14 b 15 d
Practice Paper 16 c 17 b 18 c 19 b 20 b 21 a 22 c 23 c 24 b 25 d 26 d 27 c 28 d 29 b 30 c
8 31 d 32 c 33 a 34 b 35 c 36 b 37 b 38 c 39 d 40 c 41 b 42 d 43 c 44 b 45 c
Your Answers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Practice Paper 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Marks
RESULT
FAIL

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IC33 - Practice Test

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Insurance Institute of India , Pre Agency Examination

Practice Paper 1 SDM Name Marks

SA. Rs 30,000 DOC 15.6.1992 Endowment with profit - 30 years

Insurance Institute of India , Pre Agency Examination

Practice Paper 2 SDM Name Marks

SA. Rs 40,000 DOC 15.09.1991 Endowment without profit - 31 years

c 14580 d None of these

Insurance Institute of India , Pre Agency Examination

Practice Paper 3 SDM Name Marks

a Registration of insurers b Investments of insurance funds c Licensing of agents

d All of the above

SA. Rs 1, 00,000 DOC 14.11.2001 Endowment without profit - 20 years

Insurance Institute of India , Pre Agency Examination

Practice Paper 4 SDM Name Marks

Insurance Institute of India , Pre Agency Examination

Name Branch 1 a b c d 2 a b c d 3 a b c d 4 a b c d 5 a b c d 6 a b c d 7 a b c d 8 The business of insurance has

Practice Paper 5 SDM Name Marks

Insurance Institute of India , Pre Agency Examination

Practice Paper 6 SDM Name Marks

a Risk increases as age increases

Insurance Institute of India , Pre Agency Examination

Practice Paper 7 SDM Name Marks

SA. Rs.60,000 DOC- 20.02.1993,

Insurance Institute of India , Pre Agency Examination

Practice Paper 8 SDM Name Marks

SA Rs. 50,000 DOC- 13.7.2001,

SA. Rs 50,000 DOC 13.07.1990 Endowment with profit - 25 years

c 47124 d None of these

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