Published July 2011
IC33 Exam Questions
1. Rishi is about to take a money back policy. At what stage he is allowed to make nomination
under the nomination facility of the policy?
a) At the outset of the policy
b) At the time of policy anniversary
c) At the time of outset and last policy anniversary
d) At any time
2. Mohit has two kids, one of 6 years and other 8 years. He is the earning member and not having
life cover. Before advising him to take health policy, what he should be advised?
a) Health policy for child
b) Health policy for wife
c) Life insurance policy for wife
d) Life Insurance policy for himself
3. Consensus ad idem specifically describes which feature of a valid contract?
a) Capacity to contract
b) Direct contact with each other
c) Same understanding
d) Consideration
4. Commutation option allows the annuity policy holder to with draw
a) 25%
b) 50%
c) 40%
d) 33%
5. Yash wants to take open market option in Pension plan. What is the benefit?
a) To save tax
b) To switch the underlying fund
c) For improved annuity rate
d) To continue life cover
6. What does a life insurance company save on while selling products exclusively through online?
a) Commission
b) Income Tax
c) Marketing Cost
d) Reinsurance premium
7. Ramesh has invested in Post office Monthly Income Scheme. The interest rate was set at 6%.
What will be the effect of rate in going years?
a) Increase gradually
b) Decrease gradually
c) Remain Constant
d) Change as per market fluctuation
8. A person wants to invest in a FD for Tax benefit, How many years he has to take the term of the
FD?
a) 5 year
b) 4 year
c) 3 Year
d) 2 Year
9. When can an insurance agent suggest a Young Married Couple to purchase a ULIP policy?
a) Young Married Couple with single income no children
b) Young Married Couple with double income no children
c) Young Married Couple with children and double income
d) Young Married Couple with children and single income
10. Who is the primary underwriter of the customer?
a) Underwriter
b) Insurance company
c) Agent
d) Actuary
11. If RBI increases the interest rates, the effect on share prices will be
a) More volatile
b) More attractive
c) Less attractive
d) More profitable
12. While Underwriting Mr X proposal, it is found that there has been CRIMINAL case against him
in fraudulent act. What type of Risk this will be categorized Into?
a) Fraudulent Hazard
b) Occupational Hazard
c) Physical Hazard
d) Moral Hazard
13. During investment diversification; an individual holds 100 units in gold Exchange Traded
Funds. How much grams of gold does he have?
a) 5 or 10 grams
b) 10 or 20 grams
c) 20 or 50 grams
d) 50 or 100 grams
14. Investment by NRI(Non Resident Indian) will be:
a) No risk
b) Low risk
c) Medium risk
d) High risk
15. In convertible policy; when can a policyholder Free look his policy?
a) After receiving First Premium Receipt
b) Any time during the term of the policy
c) After receiving the Policy Document
d) At the time of First Policy anniversary
16. A claim was submitted, in how many days company should ask for additional documents if
required
a) 15 days
b) 10days
c) 20 days
d) 30 days
17. Insurance companies are required to honor the awards passed by the insurance Ombudsman
within how many days?
a) 10 days
b) 15 days
c) 20 days
d) 25 days
18. An agent sells two insurance policy and the premium amount is identical but he gets lesser
commission in one of contract the reason is likely to be
a) one policy has more SA
b) ONE POLICY has more term
c) one policy is a single premium
d) One of the policy has higher Premium
19. Which is the valid reason for an underwriter to impose a lien?
a) An average risk because of occupation risk
b) Lower than average risk because of occupational risk
c) Higher than average risk due to physical characteristics
d) To charge higher premium from Insured
20. Amit has got a maturity amount at the end of the Policy Tenure and that is 1/4 of the Risk
Covered, this is due to:
a) Terminal Bonus
b) Money Back
c) Full Disclosures
d) Riders attached
21. Suresh Sharma has paid 8 early premiums for a 30 year endowment plan having sum assured of
800000. The bonus accrued in the policy is 60000. Calculate the paid value of the policy.
a) 217235
b) 272153
c) 273435
d) 273333
22. The time period within which as per the IRDA Guidelines the Insurer have to intimate the
Insured and compete the extra documentation formalities as required for passing the decision of
proposal acceptance is:
a) 10 Days
b) 12 Days
c) 15 Days
d) 20 Days
23. When another party wants to settle the claim on the behalf of an Insurer; it is called as:
a) IRDA
b) Second Part Administrator
c) Third Party Administrator
d) Life Insurance Council
24. Rohit died and was paid the claim, which was less though he had paid all the Premiums on time,
what is the reason for the same?
a) Lien was applied to the Policy
b) Term plan was taken
c) ADB Rider was attached
d) Policy was affected due to Moral Hazards
25. If the persistency of an Insurer increases from 83% to 86% then the key feature behind it would
be:
a) Policy is sold to wealthy customers
b) The number of surrender and lapsation of policies is less
c) Agent is earning higher commission
d) Company is earning higher profits
26. Anshu is married with Ankita and they have two kids and his Parents are in Sixties, which of the
following plan they can opt for jointly?
a) Family Medical Plan
b) Marriage Endowment Plan
c) Money Back Plan
d) Whole Life Plan
27. What is the key differentiator between the ‘Recurring Deposit & Cumulative Deposit’ taken by
a customer from ABC bank?
a) The amount invested.
b) The taxation
c) Time period.
d) The payment of interest
28. Anju is married with Akhilesh, they want to secure their unearned income, which plan should be
suggested to protect Income:
a) Endowment Plan
b) Term Plan
c) Children Plan
d) Limited Pay Plan
29. As per the Insurance Act 1938, which of below institution formed?
a) Tariff Advisory Committee
b) NIA National Insurance Academy
c) IRDA
d) Charted Insurance Institute
30. What is the need of doing the Fact Finding Analysis of a Customer:
a) To ensure and Increase Sale
b) Correct Need Analysis
c) To follow IRDA Guidelines
d) To relate the Monetary benefits
31. According to the Insurer; the Authenticity of an Assignment depends upon:
a) The type of policy
b) A separate deed
c) The type of Loan
d) The receiving of notice
32. Only a quartile of sum assured is paid to a person on maturity, while the entire premium was
paid and up to date, this is because of:
a) Term Plan
b) Endowment plan
c) Money Back plan
d) ULIP
33. A complainant can lodge a complaint to Ombudsman:
a) After 2 years from the date of rejection of his complaint by the Insurer
b) 6 months after the complaints made to the insurer
c) After One month of rejection of his complaint by the insurer
d) Any time whenever the Complaint wishes
34. Ajay is married with 2 kids 2 years and 4 years. After fact finding it is found that Ajay has few
needs like Income Protection, child Education, health & pension etc. for which he has no cover
so far. As an agent what you will suggest as his lowest priority?
a) Health Plan
b) Child Education Plan
c) Life Insurance Plan
d) Pension Plan
35. Insurance companies are required to honor the awards passed by the Insurance Ombudsman
within:
a) 10 Days
b) 15 days
c) 30 days
d) 180 days
36. Maximum tax benefit under sec 80 C, allowed to a person purchasing life Insurance is
a) 50000
b) 100000
c) 200000
d) 500000
37. Why does any insurance company require an age proof from the customer?
a) It’s a mandatory requirement.
b) To evaluate the risk
c) To improve persistency
d) To avoid adverse selection
38. Customer has opted for 5 yrs guaranteed annuity option. What will happen to annuity, if the
customer survives for 5 years after the end of guarantee period?
a) paid up to 75 Yrs
b) annuity will be continued for next 5 Years
c) till he die
d) not remembered
39. If a person gets involved in a dangerous Sport Activity, before the issuance of policy, which
statement is true in terms of Peril & Hazard?
a) Peril will increase the risk of Physical Hazard.
b) Physical hazard will increase the risk of Peril.
c) Peril will reduce the risk of Physical Hazard
d) Physical Hazard will reduce the risk of Peril.
40. If an agent is allowed to apply for fresh license after being disqualified from an authorized
designator, this could have happened because
a) He has paid the fees of Rs. 2000
b) He would have cleared the examination
c) His conviction of 5 years would have passed
d) He must have applied in different insurance company
41. If central Govt. decides to supersede the IRDA, then the Govt has to:
a) Appoint Additional Directors
b) Issue a notification
c) Form another Regulatory Body.
d) Seek approval from SEBI
42. If an insurance company or individual purchases insurance, it means that they want to
a) Retain the risk
b) Save some money
c) Transfer the risk
d) Tax benefit
43. Manoj & Rakesh both buy an endowment plan for the same quarterly premium and same SA.
Both surrender the plan after the same number of years, but Manoj gets a higher Surrender
Value as compared to Rakesh. This is because
a) Rakesh bought the policy for a longer term
b) Manoj bought the policy for a longer term
c) Manoj disclosed all material facts
d) It is a calculation error
44. According to insurance terminology which of the following is correct?
a) Lung cancer is a hazard whereas smoking is a peril
b) Smoking is a hazard and lung cancer is a peril
c) Lung cancer is a peril and smoking is a moral hazard
d) Smoking is a moral hazard whereas lung cancer is a peril.
45. Rajat and Ramesh buy a health plan with same premium but Rajat gets more tax advantage. The
reason could be
a) Rajat is more than 65 years of age and Ramesh is less than 65
b) Rajat is an NRI and Ramesh is not
c) Rajat has better health than Ramesh
d) Ramesh is richer than Rajat
46. Mohan died after 7 months when policy started. ABC insurance company has rejected the claim.
As per you what could be the possible reason for the rejection of claim?
a) Murder
b) Suicide
c) Presumption of Death
d) Missing
47. A claim has been given for an accidental benefit rider. It will be
a) Life time annuity
b) Lump sum money
c) Less lump sum money + lesser annuity
d) Annuity for some period only
48. In case of many nominees, how much percentage should be defined amongst the nominees for
the claims?
a) 10 % for each nominee
b) Equal sharing will be done
c) No Specific limit defined
d) Elder member of the family will decide about sharing
49. After issuing a policy; it was found that the age admitted was 3 years lesser than the actual age.
In such a scenario:
a) The contract would becomes void
b) The contract would becomes voidable
c) Higher premium would be charged
d) Age proof would not be required
50. While calculating HLV along with future income, no of years of work, increments in salary
what is also to be taken in to account?
a) Inflation.
b) Interest.
c) Discount rate
d) Compounding.
51. Looking at persistency, what does an agent need to do if the policy is on an annual mode rather
than in the monthly mode:
a) Explain the client about the charge structure
b) Remind the client about premium payment
c) Give the client a choice of different modes of payment
d) Advice the client to buy another policy
52. As per IRDA Regulations, in how many days an insurer has to settle the claim?
a) 20 Days
b) 30 Days
c) 40 Days
d) 50 Days
53. In case of insurance, consideration refers to:
a) Premium paid
b) Insurance acceptance
c) Age
d) Tenure of policy
54. What all modes are available in an Annuity Plan?
a) Monthly, fortnightly, quarterly, half yearly
b) Fortnightly, monthly, yearly, annually
c) Annually, quarterly, monthly, Fortnightly
d) Monthly, quarterly, Half Yearly, Annually
55. In ULIPs the agent commission is reflected in:
a) Benefit Illustration document
b) Policy document
c) Product brochure
d) Proposal form
56. In Life Insurance, Whole Life Plan is a
a) Indemnity plan
b) Life Insurance Contract
c) Post Insurance Contract
d) Valid Contract
57. The guaranteed and nonguaranteed values to be depicted in the Benefit illustration are in
accordance with regulation issued by:
a) Insurance Regulatory Development Authority
b) Life Insurance Council
c) IIRM
d) Insurance Institute of India
58. Mohan is looking for a life insurance for which he is not wishing for any life cover but wants to
have lump sum at maturity. Which plan will you suggest him?
a) Term Plan
b) Whole Life Plan
c) Pure Endowment Plan
d) Endowment Plan
59. In case the limit of risk of an insurer exceeds, he can opt for:
a) Reinsurance
b) Underwriting
c) No claim
d) Non payment of bonus
60. What is the date of the policy commencement?
a) When FPR is issued
b) When child reaches the age of 18
c) When customer signs the proposal
d) When customer assigns the policy
61. Arun is a nodal officer in an insurance company. His job involves
a) Addressing customer grievances
b) Deciding the premium to be charged
c) Imparting training
d) Looking after sales
62. General Insurance is a contract of indemnity that’s why life insurance is described as a:
a) Valid Contract
b) Specific Contract
c) Value Contract
d) Void Contract
63. While calculating the retirement corpus needed for an individual besides taxation and tenure; the
other factor that needs to be considered is
a) Inflation
b) Insurance
c) Contingency fund
d) Disposable income
64. Rajesh wants to invest Rs. 50000 annual premiums in ULIP & Suresh want to invest the same
amount in EPF Scheme, for having tax benefit. What tax benefit Rajesh & Suresh will make?
a) Both will get same benefit
b) Only Rajesh will get tax benefit
c) Only Suresh will get tax benefit
d) Both will get but up to the limit of Rs.80000
65. While calculating the retirement fund needed by Akhil, the agent does not consider the Gratutity
element. This is because Akhil is:
a) Public sector employee
b) Private sector employee
c) Self employed
d) Salaried employee
66. Customer paying Rs. 5,00,000 annual premium in ULIP policy from ABC life Insurance
company. How much tax benefit he can have in this ULIP policy?
a) Rs. 500000
b) Rs. 100000
c) No Tax Benefit
d) Rs. 50000
67. The underselling of insurance is considered detrimental because:
a) Financial benefits will not be compensated fully
b) Insurance will have no effect
c) More policies cannot be sold at a later stage
d) The insurance cover is given a lower premium
68. Who took over Controller of Insurance?
a) SEBI
b) IRDA
c) RBI
d) Central Government
69. In case of a self employed person it is important to know the work of the person because:
a) It helps in classifying the risk
b) It helps in determining moral hazard
c) It helps to determine approximate timing of death
d) It helps to determine chances of disability
70. In a Pension Plan 4.5% Guaranteed Return is fixed in which type of Policy:
a) Pure Endowment Plan.
b) ULIP Plan.
c) Money Back Plan.
d) Endowment Plan
71. During fact-finding, two needs were identified as margin money and planning for retirement.
Which of the two should be given preference?
a) Margin Money
b) Retirement
c) Current Age and Priority will decide about given preference
d) Customer wants will decide the preference
72. ABC Insurance Company gave more than 35% Commission to the Agent this was because of :
a) Insured age was more than 60 Years.
b) Company Generated extra Profit.
c) Company is in initial 10 Years of its operation.
d) Insurance Company sets its own rule.
73. An agent does fact finding for a married couple with 09 year old child. The agent identifies that
they need Life Insurance Protection, Child Insurance, Pension plan and Health Insurance. Which
of them should be given least preference?
a) Child Plan
b) Pension Plan
c) Health plan
d) Life insurance
74. A person age 28 yrs is looking for Term plan, Health Plan, Endowment Plan and Child Plan.
Which Plan is the most Important for him:
a) Health Plan.
b) Endowment Plan.
c) Child Plan.
d) Term Plan.
75. If in an endowment participating policy 4% compounding bonus is declared after some years.
What will be the amount of bonus declared?
a) 4% of basic sum assured amount
b) 4% of basic sum assured + bonus for premium years
c) 4% of accrued bonus + bonus for previous years
d) 4% of basic sum assured+ accrued bonus
76. Which need of the customer should be on the top priority?
a) Protection Needs
b) Investment
c) Power of Compounding
d) Premium and SA
77. Ajay took an insurance plan of sum assured 3 lakhs and premium 20000. After maturity, what
amount of tax will Ajay have to pay?
a) 10% of total sum assured
b) 30% of total sum assured
c) 40% of total sum assured
d) Nothing
78. A Person receives Discounted Claim in the context to:
a) Profit in Policy.
b) Duration of Policy.
c) Timing of Maturity
d) Interest
79. To attain higher persistency value what actions would be useful for annual mode:
a) Reminder for renewal premium
b) Easy credit facility for renewal
c) Annual account statement
d) Premium payment by agent
80. If a 15 year old child enters into a contract, the contract is said to be:
a) Voidable
b) Null & Void
c) Nil
d) Indisputability Clause.
81. What is the FDI Limit in the insurance sector?
a) 50%
b) 75%
c) 26%
d) 33%
82. A person has taken a lien. In which Part of the Policy Document will it be mentioned?
a) Proviso
b) Schedule.
c) Preamble
d) Terms and Conditions.
83. In a Term plan, if permission is taken from insurer how much rebate can be offered to the
customer by Agent:
a) 50% of your commission can be offered as rebate
b) 25% of commission can be offered as rebate
c) No rebate can be given
d) Will depend on age of proposer
84. Teja wants to get a low cost insurance cover, which Plan should he go for.
a) Term Plan.
b) ULIP Plan.
c) Money Back Plan.
d) Endowment Plan.
85. If both mother and father of the proposer die before the age of 30 due to heart diseases, it is a
case of:
a) Moral hazard
b) Physical hazard
c) Financial hazard
d) Occupational hazard
86. Under COPA the maximum amount that can be heard at the district level is,
a) 20,00,000
b) 80,00,000
c) 10,00,000
d) 50,00,000
87. Six months after the issue of policy; if it is found that the insurable interest did not exist then the
contract is:
a) Void
b) Voidable
c) Rejected
d) Invalid
88. In a sales call the agent identifies that customer needs health plan, what will be the next step,
a) Do a proper fact-finding
b) Making Recommendation.
c) Assessment and Analysis.
d) Quantifies the Monetary term.
89. If a policyholder complaints to the ombudsman that the insurer is not doing justice to him. In
how many days ombudsman should give their recommendation?
a) 30 days
b) 60 days
c) 90 days
d) 120 days
90. Sahil & Vijay buy an insurance plan for same SA , but only Vijay was called for medical
examination .Why?
1. Vijay is younger than Sahil.
2. Vijay is elder than Sahil.
3. Sahil has Kids & Vijay has No Kids.
4. Sahil is Self Employed
91. Most probable reason for product churning by an insurance agent could be:
a) For the benefit of the policy holder so that their goals are complete
b) For giving the policy holder more insurance products
c) For earning extra commission
d) For giving the policy holder more insurance cover
92. If a person makes up his mind to purchase the Kisan Vikas Patra, he should ideally contact
a) Asset Management Company
b) Share Market
c) Insurance Company
d) Post Office
93. If premium was not paid on due date and the insured dies during the grace period. The claim
a) Will not be paid as policy has lapsed
b) Will be paid
c) Will be paid after deducting the premiums due
d) Payment shall be at the discretion of the insurer
94. NIA’s main work is :
a) Calculating Premium.
b) Conducting Exams.
c) Training.
d) Give Certificates of Insurance.
95. If Renewal Terms of health insurance policy is accepted; then it is
a) A new contract
b) Renewed contract
c) Endorsement is placed on contract
d) Clause are put in contract
96. If a lien will apply it would lead to:
a) Decrease in Premium.
b) Increase in Premium.
c) Decrease in Claim amount.
d) Reduced Sum Assured
97. If a claim is delayed by an insurance company in spite of customer depositing all necessary
paper work within 15 days as required; then the company needs to pay interest on that. If
prevailing bank rates are 5.3% than the payment to customer will be
a) 7.3%
b) 6.3%
c) 5.3%
d) 8.3%
98. Person comes back to previous comfortable financial position after suffering with a loss this is
because of the following insurance Principle :
a) Proximity,
b) Insurable Interest,
c) Utmost Good faith,
d) Principle of Indemnity
99. In case an insured dies within a few months of the commencement of the policy; then which of
following will be closely scrutinized:
a) Premium payments
b) Assignment details
c) Nominee details
d) Disclosure details
100.A widow applies for a claim that gets rejected. Apart from approaching the ombudsman she can
approach
a) An IRDA authorized Lawyer
b) The District Court
c) The Insurance Company
d) The Reinsurer
101.When can an insurance company give more than 35% first year commission?
a) When the Insurance Company is in the first 15 years of operation.
b) If the agent has worked with the company for more than 10 years
c) If the agent is performing exceptionally well.
d) When the insurance company is in the first 10 years of operation
102.Ravi is not convinced with the premium offered. As an agent, how much maximum discount can
you give to convince Ravi?
a) 5% of the first year commission
b) 10% of the first year commission
c) 15% of the first year commission
d) No discount can be given
103.Ration Cards and Baptism certificate are considered as:
a) Standard Age Proof
b) Non Standard Age proof
c) Standard and non standard age proof respectively.
d) Non Standard and standard age proof respectively.
104.Which institute is concerned with training, education, research and publication in insurance and
risk management?
a) IRDA
b) National Insurance Academy (NIA)
c) III
d) LIC
105.Suresh recommends a child plan to Mitali after a need analysis. Mitali disagrees with the offered
plan. What will be the next step?
a) Enquire about the reason for disagreement
b) Suggest another plan
c) Ask for future date
d) Explain that this is the best plan
106.Under a term of 20 years, when will the persistency bonus be paid?
a) After each year
b) After 05 years
c) After 10 years
d) After 20years
107.Peter Rodriguez completes the proposal form and hands it to the agent- Guneesh. Guneesh asks
Peter for his College Records as a proof to certify his age. Peter somehow was unable to find
them. But Peter brought something that Guneesh accepted as a standard age proof document.
What could this be?
a) His Horoscope prepared at the time of birth
b) A ration card
c) A certificate of a name given at ceremony in a church
d) A certificate from the village panchayat
IC33 Exam Questions
1. Rishi is about to take a money back policy. At what stage he is allowed to make nomination
under the nomination facility of the policy?
a) At the outset of the policy
b) At the time of policy anniversary
c) At the time of outset and last policy anniversary
d) At any time
2. Mohit has two kids, one of 6 years and other 8 years. He is the earning member and not having
life cover. Before advising him to take health policy, what he should be advised?
a) Health policy for child
b) Health policy for wife
c) Life insurance policy for wife
d) Life Insurance policy for himself
3. Consensus ad idem specifically describes which feature of a valid contract?
a) Capacity to contract
b) Direct contact with each other
c) Same understanding
d) Consideration
4. Commutation option allows the annuity policy holder to with draw
a) 25%
b) 50%
c) 40%
d) 33%
5. Yash wants to take open market option in Pension plan. What is the benefit?
a) To save tax
b) To switch the underlying fund
c) For improved annuity rate
d) To continue life cover
6. What does a life insurance company save on while selling products exclusively through online?
a) Commission
b) Income Tax
c) Marketing Cost
d) Reinsurance premium
7. Ramesh has invested in Post office Monthly Income Scheme. The interest rate was set at 6%.
What will be the effect of rate in going years?
a) Increase gradually
b) Decrease gradually
c) Remain Constant
d) Change as per market fluctuation
8. A person wants to invest in a FD for Tax benefit, How many years he has to take the term of the
FD?
a) 5 year
b) 4 year
c) 3 Year
d) 2 Year
9. When can an insurance agent suggest a Young Married Couple to purchase a ULIP policy?
a) Young Married Couple with single income no children
b) Young Married Couple with double income no children
c) Young Married Couple with children and double income
d) Young Married Couple with children and single income
10. Who is the primary underwriter of the customer?
a) Underwriter
b) Insurance company
c) Agent
d) Actuary
11. If RBI increases the interest rates, the effect on share prices will be
a) More volatile
b) More attractive
c) Less attractive
d) More profitable
12. While Underwriting Mr X proposal, it is found that there has been CRIMINAL case against him
in fraudulent act. What type of Risk this will be categorized Into?
a) Fraudulent Hazard
b) Occupational Hazard
c) Physical Hazard
d) Moral Hazard
13. During investment diversification; an individual holds 100 units in gold Exchange Traded
Funds. How much grams of gold does he have?
a) 5 or 10 grams
b) 10 or 20 grams
c) 20 or 50 grams
d) 50 or 100 grams
14. Investment by NRI(Non Resident Indian) will be:
a) No risk
b) Low risk
c) Medium risk
d) High risk
15. In convertible policy; when can a policyholder Free look his policy?
a) After receiving First Premium Receipt
b) Any time during the term of the policy
c) After receiving the Policy Document
d) At the time of First Policy anniversary
16. A claim was submitted, in how many days company should ask for additional documents if
required
a) 15 days
b) 10days
c) 20 days
d) 30 days
17. Insurance companies are required to honor the awards passed by the insurance Ombudsman
within how many days?
a) 10 days
b) 15 days
c) 20 days
d) 25 days
18. An agent sells two insurance policy and the premium amount is identical but he gets lesser
commission in one of contract the reason is likely to be
a) one policy has more SA
b) ONE POLICY has more term
c) one policy is a single premium
d) One of the policy has higher Premium
19. Which is the valid reason for an underwriter to impose a lien?
a) An average risk because of occupation risk
b) Lower than average risk because of occupational risk
c) Higher than average risk due to physical characteristics
d) To charge higher premium from Insured
20. Amit has got a maturity amount at the end of the Policy Tenure and that is 1/4 of the Risk
Covered, this is due to:
a) Terminal Bonus
b) Money Back
c) Full Disclosures
d) Riders attached
21. Suresh Sharma has paid 8 early premiums for a 30 year endowment plan having sum assured of
800000. The bonus accrued in the policy is 60000. Calculate the paid value of the policy.
a) 217235
b) 272153
c) 273435
d) 273333
22. The time period within which as per the IRDA Guidelines the Insurer have to intimate the
Insured and compete the extra documentation formalities as required for passing the decision of
proposal acceptance is:
a) 10 Days
b) 12 Days
c) 15 Days
d) 20 Days
23. When another party wants to settle the claim on the behalf of an Insurer; it is called as:
a) IRDA
b) Second Part Administrator
c) Third Party Administrator
d) Life Insurance Council
24. Rohit died and was paid the claim, which was less though he had paid all the Premiums on time,
what is the reason for the same?
a) Lien was applied to the Policy
b) Term plan was taken
c) ADB Rider was attached
d) Policy was affected due to Moral Hazards
25. If the persistency of an Insurer increases from 83% to 86% then the key feature behind it would
be:
a) Policy is sold to wealthy customers
b) The number of surrender and lapsation of policies is less
c) Agent is earning higher commission
d) Company is earning higher profits
26. Anshu is married with Ankita and they have two kids and his Parents are in Sixties, which of the
following plan they can opt for jointly?
a) Family Medical Plan
b) Marriage Endowment Plan
c) Money Back Plan
d) Whole Life Plan
27. What is the key differentiator between the ‘Recurring Deposit & Cumulative Deposit’ taken by
a customer from ABC bank?
a) The amount invested.
b) The taxation
c) Time period.
d) The payment of interest
28. Anju is married with Akhilesh, they want to secure their unearned income, which plan should be
suggested to protect Income:
a) Endowment Plan
b) Term Plan
c) Children Plan
d) Limited Pay Plan
29. As per the Insurance Act 1938, which of below institution formed?
a) Tariff Advisory Committee
b) NIA National Insurance Academy
c) IRDA
d) Charted Insurance Institute
30. What is the need of doing the Fact Finding Analysis of a Customer:
a) To ensure and Increase Sale
b) Correct Need Analysis
c) To follow IRDA Guidelines
d) To relate the Monetary benefits
31. According to the Insurer; the Authenticity of an Assignment depends upon:
a) The type of policy
b) A separate deed
c) The type of Loan
d) The receiving of notice
32. Only a quartile of sum assured is paid to a person on maturity, while the entire premium was
paid and up to date, this is because of:
a) Term Plan
b) Endowment plan
c) Money Back plan
d) ULIP
33. A complainant can lodge a complaint to Ombudsman:
a) After 2 years from the date of rejection of his complaint by the Insurer
b) 6 months after the complaints made to the insurer
c) After One month of rejection of his complaint by the insurer
d) Any time whenever the Complaint wishes
34. Ajay is married with 2 kids 2 years and 4 years. After fact finding it is found that Ajay has few
needs like Income Protection, child Education, health & pension etc. for which he has no cover
so far. As an agent what you will suggest as his lowest priority?
a) Health Plan
b) Child Education Plan
c) Life Insurance Plan
d) Pension Plan
35. Insurance companies are required to honor the awards passed by the Insurance Ombudsman
within:
a) 10 Days
b) 15 days
c) 30 days
d) 180 days
36. Maximum tax benefit under sec 80 C, allowed to a person purchasing life Insurance is
a) 50000
b) 100000
c) 200000
d) 500000
37. Why does any insurance company require an age proof from the customer?
a) It’s a mandatory requirement.
b) To evaluate the risk
c) To improve persistency
d) To avoid adverse selection
38. Customer has opted for 5 yrs guaranteed annuity option. What will happen to annuity, if the
customer survives for 5 years after the end of guarantee period?
a) paid up to 75 Yrs
b) annuity will be continued for next 5 Years
c) till he die
d) not remembered
39. If a person gets involved in a dangerous Sport Activity, before the issuance of policy, which
statement is true in terms of Peril & Hazard?
a) Peril will increase the risk of Physical Hazard.
b) Physical hazard will increase the risk of Peril.
c) Peril will reduce the risk of Physical Hazard
d) Physical Hazard will reduce the risk of Peril.
40. If an agent is allowed to apply for fresh license after being disqualified from an authorized
designator, this could have happened because
a) He has paid the fees of Rs. 2000
b) He would have cleared the examination
c) His conviction of 5 years would have passed
d) He must have applied in different insurance company
41. If central Govt. decides to supersede the IRDA, then the Govt has to:
a) Appoint Additional Directors
b) Issue a notification
c) Form another Regulatory Body.
d) Seek approval from SEBI
42. If an insurance company or individual purchases insurance, it means that they want to
a) Retain the risk
b) Save some money
c) Transfer the risk
d) Tax benefit
43. Manoj & Rakesh both buy an endowment plan for the same quarterly premium and same SA.
Both surrender the plan after the same number of years, but Manoj gets a higher Surrender
Value as compared to Rakesh. This is because
a) Rakesh bought the policy for a longer term
b) Manoj bought the policy for a longer term
c) Manoj disclosed all material facts
d) It is a calculation error
44. According to insurance terminology which of the following is correct?
a) Lung cancer is a hazard whereas smoking is a peril
b) Smoking is a hazard and lung cancer is a peril
c) Lung cancer is a peril and smoking is a moral hazard
d) Smoking is a moral hazard whereas lung cancer is a peril.
45. Rajat and Ramesh buy a health plan with same premium but Rajat gets more tax advantage. The
reason could be
a) Rajat is more than 65 years of age and Ramesh is less than 65
b) Rajat is an NRI and Ramesh is not
c) Rajat has better health than Ramesh
d) Ramesh is richer than Rajat
46. Mohan died after 7 months when policy started. ABC insurance company has rejected the claim.
As per you what could be the possible reason for the rejection of claim?
a) Murder
b) Suicide
c) Presumption of Death
d) Missing
47. A claim has been given for an accidental benefit rider. It will be
a) Life time annuity
b) Lump sum money
c) Less lump sum money + lesser annuity
d) Annuity for some period only
48. In case of many nominees, how much percentage should be defined amongst the nominees for
the claims?
a) 10 % for each nominee
b) Equal sharing will be done
c) No Specific limit defined
d) Elder member of the family will decide about sharing
49. After issuing a policy; it was found that the age admitted was 3 years lesser than the actual age.
In such a scenario:
a) The contract would becomes void
b) The contract would becomes voidable
c) Higher premium would be charged
d) Age proof would not be required
50. While calculating HLV along with future income, no of years of work, increments in salary
what is also to be taken in to account?
a) Inflation.
b) Interest.
c) Discount rate
d) Compounding.
51. Looking at persistency, what does an agent need to do if the policy is on an annual mode rather
than in the monthly mode:
a) Explain the client about the charge structure
b) Remind the client about premium payment
c) Give the client a choice of different modes of payment
d) Advice the client to buy another policy
52. As per IRDA Regulations, in how many days an insurer has to settle the claim?
a) 20 Days
b) 30 Days
c) 40 Days
d) 50 Days
53. In case of insurance, consideration refers to:
a) Premium paid
b) Insurance acceptance
c) Age
d) Tenure of policy
54. What all modes are available in an Annuity Plan?
a) Monthly, fortnightly, quarterly, half yearly
b) Fortnightly, monthly, yearly, annually
c) Annually, quarterly, monthly, Fortnightly
d) Monthly, quarterly, Half Yearly, Annually
55. In ULIPs the agent commission is reflected in:
a) Benefit Illustration document
b) Policy document
c) Product brochure
d) Proposal form
56. In Life Insurance, Whole Life Plan is a
a) Indemnity plan
b) Life Insurance Contract
c) Post Insurance Contract
d) Valid Contract
57. The guaranteed and nonguaranteed values to be depicted in the Benefit illustration are in
accordance with regulation issued by:
a) Insurance Regulatory Development Authority
b) Life Insurance Council
c) IIRM
d) Insurance Institute of India
58. Mohan is looking for a life insurance for which he is not wishing for any life cover but wants to
have lump sum at maturity. Which plan will you suggest him?
a) Term Plan
b) Whole Life Plan
c) Pure Endowment Plan
d) Endowment Plan
59. In case the limit of risk of an insurer exceeds, he can opt for:
a) Reinsurance
b) Underwriting
c) No claim
d) Non payment of bonus
60. What is the date of the policy commencement?
a) When FPR is issued
b) When child reaches the age of 18
c) When customer signs the proposal
d) When customer assigns the policy
61. Arun is a nodal officer in an insurance company. His job involves
a) Addressing customer grievances
b) Deciding the premium to be charged
c) Imparting training
d) Looking after sales
62. General Insurance is a contract of indemnity that’s why life insurance is described as a:
a) Valid Contract
b) Specific Contract
c) Value Contract
d) Void Contract
63. While calculating the retirement corpus needed for an individual besides taxation and tenure; the
other factor that needs to be considered is
a) Inflation
b) Insurance
c) Contingency fund
d) Disposable income
64. Rajesh wants to invest Rs. 50000 annual premiums in ULIP & Suresh want to invest the same
amount in EPF Scheme, for having tax benefit. What tax benefit Rajesh & Suresh will make?
a) Both will get same benefit
b) Only Rajesh will get tax benefit
c) Only Suresh will get tax benefit
d) Both will get but up to the limit of Rs.80000
65. While calculating the retirement fund needed by Akhil, the agent does not consider the Gratutity
element. This is because Akhil is:
a) Public sector employee
b) Private sector employee
c) Self employed
d) Salaried employee
66. Customer paying Rs. 5,00,000 annual premium in ULIP policy from ABC life Insurance
company. How much tax benefit he can have in this ULIP policy?
a) Rs. 500000
b) Rs. 100000
c) No Tax Benefit
d) Rs. 50000
67. The underselling of insurance is considered detrimental because:
a) Financial benefits will not be compensated fully
b) Insurance will have no effect
c) More policies cannot be sold at a later stage
d) The insurance cover is given a lower premium
68. Who took over Controller of Insurance?
a) SEBI
b) IRDA
c) RBI
d) Central Government
69. In case of a self employed person it is important to know the work of the person because:
a) It helps in classifying the risk
b) It helps in determining moral hazard
c) It helps to determine approximate timing of death
d) It helps to determine chances of disability
70. In a Pension Plan 4.5% Guaranteed Return is fixed in which type of Policy:
a) Pure Endowment Plan.
b) ULIP Plan.
c) Money Back Plan.
d) Endowment Plan
71. During fact-finding, two needs were identified as margin money and planning for retirement.
Which of the two should be given preference?
a) Margin Money
b) Retirement
c) Current Age and Priority will decide about given preference
d) Customer wants will decide the preference
72. ABC Insurance Company gave more than 35% Commission to the Agent this was because of :
a) Insured age was more than 60 Years.
b) Company Generated extra Profit.
c) Company is in initial 10 Years of its operation.
d) Insurance Company sets its own rule.
73. An agent does fact finding for a married couple with 09 year old child. The agent identifies that
they need Life Insurance Protection, Child Insurance, Pension plan and Health Insurance. Which
of them should be given least preference?
a) Child Plan
b) Pension Plan
c) Health plan
d) Life insurance
74. A person age 28 yrs is looking for Term plan, Health Plan, Endowment Plan and Child Plan.
Which Plan is the most Important for him:
a) Health Plan.
b) Endowment Plan.
c) Child Plan.
d) Term Plan.
75. If in an endowment participating policy 4% compounding bonus is declared after some years.
What will be the amount of bonus declared?
a) 4% of basic sum assured amount
b) 4% of basic sum assured + bonus for premium years
c) 4% of accrued bonus + bonus for previous years
d) 4% of basic sum assured+ accrued bonus
76. Which need of the customer should be on the top priority?
a) Protection Needs
b) Investment
c) Power of Compounding
d) Premium and SA
77. Ajay took an insurance plan of sum assured 3 lakhs and premium 20000. After maturity, what
amount of tax will Ajay have to pay?
a) 10% of total sum assured
b) 30% of total sum assured
c) 40% of total sum assured
d) Nothing
78. A Person receives Discounted Claim in the context to:
a) Profit in Policy.
b) Duration of Policy.
c) Timing of Maturity
d) Interest
79. To attain higher persistency value what actions would be useful for annual mode:
a) Reminder for renewal premium
b) Easy credit facility for renewal
c) Annual account statement
d) Premium payment by agent
80. If a 15 year old child enters into a contract, the contract is said to be:
a) Voidable
b) Null & Void
c) Nil
d) Indisputability Clause.
81. What is the FDI Limit in the insurance sector?
a) 50%
b) 75%
c) 26%
d) 33%
82. A person has taken a lien. In which Part of the Policy Document will it be mentioned?
a) Proviso
b) Schedule.
c) Preamble
d) Terms and Conditions.
83. In a Term plan, if permission is taken from insurer how much rebate can be offered to the
customer by Agent:
a) 50% of your commission can be offered as rebate
b) 25% of commission can be offered as rebate
c) No rebate can be given
d) Will depend on age of proposer
84. Teja wants to get a low cost insurance cover, which Plan should he go for.
a) Term Plan.
b) ULIP Plan.
c) Money Back Plan.
d) Endowment Plan.
85. If both mother and father of the proposer die before the age of 30 due to heart diseases, it is a
case of:
a) Moral hazard
b) Physical hazard
c) Financial hazard
d) Occupational hazard
86. Under COPA the maximum amount that can be heard at the district level is,
a) 20,00,000
b) 80,00,000
c) 10,00,000
d) 50,00,000
87. Six months after the issue of policy; if it is found that the insurable interest did not exist then the
contract is:
a) Void
b) Voidable
c) Rejected
d) Invalid
88. In a sales call the agent identifies that customer needs health plan, what will be the next step,
a) Do a proper fact-finding
b) Making Recommendation.
c) Assessment and Analysis.
d) Quantifies the Monetary term.
89. If a policyholder complaints to the ombudsman that the insurer is not doing justice to him. In
how many days ombudsman should give their recommendation?
a) 30 days
b) 60 days
c) 90 days
d) 120 days
90. Sahil & Vijay buy an insurance plan for same SA , but only Vijay was called for medical
examination .Why?
1. Vijay is younger than Sahil.
2. Vijay is elder than Sahil.
3. Sahil has Kids & Vijay has No Kids.
4. Sahil is Self Employed
91. Most probable reason for product churning by an insurance agent could be:
a) For the benefit of the policy holder so that their goals are complete
b) For giving the policy holder more insurance products
c) For earning extra commission
d) For giving the policy holder more insurance cover
92. If a person makes up his mind to purchase the Kisan Vikas Patra, he should ideally contact
a) Asset Management Company
b) Share Market
c) Insurance Company
d) Post Office
93. If premium was not paid on due date and the insured dies during the grace period. The claim
a) Will not be paid as policy has lapsed
b) Will be paid
c) Will be paid after deducting the premiums due
d) Payment shall be at the discretion of the insurer
94. NIA’s main work is :
a) Calculating Premium.
b) Conducting Exams.
c) Training.
d) Give Certificates of Insurance.
95. If Renewal Terms of health insurance policy is accepted; then it is
a) A new contract
b) Renewed contract
c) Endorsement is placed on contract
d) Clause are put in contract
96. If a lien will apply it would lead to:
a) Decrease in Premium.
b) Increase in Premium.
c) Decrease in Claim amount.
d) Reduced Sum Assured
97. If a claim is delayed by an insurance company in spite of customer depositing all necessary
paper work within 15 days as required; then the company needs to pay interest on that. If
prevailing bank rates are 5.3% than the payment to customer will be
a) 7.3%
b) 6.3%
c) 5.3%
d) 8.3%
98. Person comes back to previous comfortable financial position after suffering with a loss this is
because of the following insurance Principle :
a) Proximity,
b) Insurable Interest,
c) Utmost Good faith,
d) Principle of Indemnity
99. In case an insured dies within a few months of the commencement of the policy; then which of
following will be closely scrutinized:
a) Premium payments
b) Assignment details
c) Nominee details
d) Disclosure details
100.A widow applies for a claim that gets rejected. Apart from approaching the ombudsman she can
approach
a) An IRDA authorized Lawyer
b) The District Court
c) The Insurance Company
d) The Reinsurer
101.When can an insurance company give more than 35% first year commission?
a) When the Insurance Company is in the first 15 years of operation.
b) If the agent has worked with the company for more than 10 years
c) If the agent is performing exceptionally well.
d) When the insurance company is in the first 10 years of operation
102.Ravi is not convinced with the premium offered. As an agent, how much maximum discount can
you give to convince Ravi?
a) 5% of the first year commission
b) 10% of the first year commission
c) 15% of the first year commission
d) No discount can be given
103.Ration Cards and Baptism certificate are considered as:
a) Standard Age Proof
b) Non Standard Age proof
c) Standard and non standard age proof respectively.
d) Non Standard and standard age proof respectively.
104.Which institute is concerned with training, education, research and publication in insurance and
risk management?
a) IRDA
b) National Insurance Academy (NIA)
c) III
d) LIC
105.Suresh recommends a child plan to Mitali after a need analysis. Mitali disagrees with the offered
plan. What will be the next step?
a) Enquire about the reason for disagreement
b) Suggest another plan
c) Ask for future date
d) Explain that this is the best plan
106.Under a term of 20 years, when will the persistency bonus be paid?
a) After each year
b) After 05 years
c) After 10 years
d) After 20years
107.Peter Rodriguez completes the proposal form and hands it to the agent- Guneesh. Guneesh asks
Peter for his College Records as a proof to certify his age. Peter somehow was unable to find
them. But Peter brought something that Guneesh accepted as a standard age proof document.
What could this be?
a) His Horoscope prepared at the time of birth
b) A ration card
c) A certificate of a name given at ceremony in a church
d) A certificate from the village panchayat
