IC 38 Question Bank PDF

IC 38 Question Bank Q1:Which among the following is the regulator for the insurance industry in India? I. Insurance Authority of India II. Insurance Regulatory and Development Authority of India III. Life Insurance Corporation of India IV. General Insurance Corporation of India Q2: Which among the...

IC 38 Question Bank Q1:Which among the following is the regulator for the insurance industry in India? I. Insurance Authority of India II. Insurance Regulatory and Development Authority of India III. Life Insurance Corporation of India IV. General Insurance Corporation of India Q2: Which among the following is a secondary burden of risk? I. Business interruption cost II. Goods damaged cost III. Setting aside reserves as a provision for meeting potential losses in the future IV. Hospitalisation costs as a result of heart attack Q3:Which among the following is a method of risk transfer? I. Bank FD II. Insurance III. Equity shares IV. Real estate Q4:Which among the following scenarios warrants insurance? I. The sole bread winner of a family might die untimely II. A person may lose his wallet III. Stock prices may fall drastically IV. A house may lose value due to natural wear and tear Q5:Which of the below insurance scheme is run by an insurer and not sponsored by the Government? I. Employees State Insurance Corporation II. Crop Insurance Scheme III. Jan Arogya IV. All of the above Q6:Risk transfer through risk pooling is called I. Savings II. Investments III. Insurance IV. Risk mitigation Q7: The measures to reduce chances of occurrence of risk are known as I. Risk retention II. Loss prevention III. Risk transfer IV. Risk avoidance Q8: By transferring risk to insurer, it becomes possible ___________. I. To become careless about our assets II. To make money from insurance in the event of a loss III. To ignore the potential risks facing our assets IV. To enjoy peace of mind and plan one‟s business more effectively Q9: Origins of modern insurance business can be traced to I. Bottomry II. Lloyds III. Rhodes IV. Malhotra Committee Q10: In insurance context „risk retention‟ indicates a situation where I. Possibility of loss or damage is not there II. Loss producing event has no value III. Property is covered by insurance IV. One decides to bear the risk and its effects Q11: Which of the following statement is true? I. Insurance protects the asset II. Insurance prevents its loss III. Insurance reduces possibilities of loss IV. Insurance pays when there is loss of asset Q 12:Out of 400 houses, each valued at Rs. 20,000, on an average 4 houses get burnt every year resulting in a combined loss of Rs. 80,000. What should be the annual contribution of each house owner to make good this loss? I. Rs.100/- II. Rs.200/- III. Rs.80/- IV. Rs.400/- Q13: Which of the following statements is true? I. Insurance is a method of sharing the losses of a „few‟ by „many‟ II. Insurance is a method of transferring the risk of an individual to another individual III. Insurance is a method of sharing the losses of a „many‟ by a few IV. Insurance is a method of transferring the gains of a few to the many Q14:Why do insurers arrange for survey and inspection of the property before acceptance of a risk? I. To assess the risk for rating purposes II. To find out how the insured purchased the property III. To find out whether other insurers have also inspected the property IV. To find out whether neighbouring property also can be insured Q15: Which of the below option best describes the process of insurance? I. Sharing the losses of many by a few II. Sharing the losses of few by many III. One sharing the losses of few IV. Sharing of losses through subsidy Q16: What is meant by customer lifetime value? I. Sum of costs incurred while servicing the customer over his lifetime II. Rank given to customer based on business generated III. Sum of economic benefits that can be achieved by building a long term relationship with the customer IV. Maximum insurance that can be attributed to the customer Q17 : Identify the scenario where a debate on the need for insurance is not required. I. Property insurance II. Business liability insurance III. Motor insurance for third party liability IV. Fire insurance Q18: As per the Consumer Protection Act, 1986, who cannot be classified as a consumer? I. Hires goods / services for personal use II. A person who buys goods for resale purpose III. Buys goods and services for a consideration and uses them IV. Uses the services of another for a consideration Q19 : What does not go on to make a healthy relationship? I. Attraction II. Trust III. Communication IV. Scepticism ; Q20: Which among the following is not an element of active listening? I. Paying good attention II. Being extremely judgemental III. Empathetic listening IV. Responding appropriately Q21 : Which among the following is not a characteristic of ethical behaviour? I. Making adequate disclosures to enable the clients to make an informed decision II. Maintaining confidentiality of client‟s business and personal information III. Placing self-interest ahead of client‟s interests IV. Placing client‟s interest ahead of self interest Q 22:----------------------is not a tangible good. I. House II. Insurance III. Mobile Phone IV. A pair of jeans Q23 _______________ is not an indicator of service quality. I. Cleverness II. Reliability III. Empathy IV. Responsiveness Q24 : In India _______________ insurance is mandatory. I. Motor third party liability II. Fire insurance for houses III. Travel insurance for domestic travel IV. Personal accident Q 25: One of the methods of reducing insurance cost of an insured is __________ I. Reinsurance II. Deductible III. Co-insurance IV. Rebate Q 26 : A customer having complaint regarding his insurance policy can approach IRDA through I. IGMS II. District Consumer Forum III. Ombudsman IV. IGMS or District Consumer Forum or Ombudsman Q 27: Consumer Protection Act deals with: I. Complaint against insurance companies II. Complaint against shopkeepers III. Complaint against brand IV. Complaint against insurance companies, brand and shopkeepers Q 28 : ___________ has jurisdiction to entertain matters where value of goods or services and the compensation claim is up to 20 lakhs I. High Court II. District Forum III. State Commission IV. National Commission Q 29 : In customer relationship the first impression is created: I. By being confident II. By being on time III. By showing interest IV. By being on time, showing interest and being confident Q 30 :Select the correct statement: I. Ethical behaviour is impossible while selling insurance II. Ethical behaviour is not necessary for insurance agents III. Ethical behaviour helps in developing trust between the agent and the insurer IV. Ethical behaviour is expected from the top management only Q 31: Active Listening involves: I. Paying attention to the speaker II. Giving an occasional nod and smile III. Providing feedback IV. Paying attention to the speaker, giving an occasional nod and smile and providing feedback Q32 :The ______________ has jurisdiction to entertain complaints, where value of the goods or services and the compensation claimed is up to Rs.20 lakhs. I. District Forum II. State Commission III. Zilla Parishad IV. National Commission Q 34 :Expand the term IGMS. I. Insurance General Management System II. Indian General Management System III. Integrated Grievance Management System IV. Intelligent Grievance Management System Q 35: Which of the below consumer grievance redressal agencies would handle consumer disputes amounting between Rs. 20 lakhs and Rs. 100 lakhs? I. District Forum II. State Commission III. National Commission IV. Zilla Parishad Q36 : Which among the following cannot form the basis for a valid consumer complaint? I. Shopkeeper charging a price above the MRP for a product II. Shopkeeper not advising the customer on the best product in a category III. Allergy warning not provided on a drug bottle IV. Faulty products Q 37 :Which of the below will be the most appropriate option for a customer to lodge an insurance policy related complaint? I. Police II. Supreme Court III. Insurance Ombudsman IV. District Court Q 38: Which of the below statement is correct with regards to the territorial jurisdiction of the Insurance Ombudsman? I. Insurance Ombudsman has National jurisdiction II. Insurance Ombudsman has State jurisdiction III. Insurance Ombudsman has District jurisdiction IV. Insurance Ombudsman operates only within the specified territorial limits Q 39 :How is the complaint to be launched with an insurance ombudsman? I. The complaint is to be made in writing II. The complaint is to be made orally over the phone III. The complaint is to be made orally in a face to face manner IV. The complaint is to be made through newspaper advertisement Q 38: What is the time limit for approaching an Insurance Ombudsman? I. Within two years of rejection of the complaint by the insurer II. Within three years of rejection of the complaint by the insurer III. Within one year of rejection of the complaint by the insurer IV. Within one month of rejection of the complaint by the insurer Q 39 :Which among the following is not a pre-requisite for launching a complaint with the Ombudsman? I. The complaint must be by an individual on a „Personal Lines‟ insurance II. The complaint must be lodged within 1 year of the insurer rejecting the complaint III. Complainant has to approach a consumer forum prior to the Ombudsman IV. The total relief sought must be within an amount of Rs.20 lakhs. Q 40: Are there any fee / charges that need to be paid for lodging the complaint with the Ombudsman? I. A fee of Rs 100 needs to be paid II. No fee or charges need to be paid III. 20% of the relief sought must be paid as fee IV. 10% of the relief sought must be paid as fee Q41 :Which among the following is an example of coercion? I. Ramesh signs a contract without having knowledge of the fine print II. Ramesh threatens to kill Mahesh if he does not sign the contract III. Ramesh uses his professional standing to get Mahesh to sign a contract IV. Ramesh provides false information to get Mahesh to sign a contract Q 42: Which among the following options cannot be insured by Ramesh? I. Ramesh‟s house II. Ramesh‟s spouse III. Ramesh‟s friend IV. Ramesh‟s parents Q 43 :Which element of a valid contract deals with premium? I. Offer and acceptance II. Consideration III. Free consent IV. Capacity of parties to contract Q 44_____________ relates to inaccurate statements, which are made without any fraudulent intention. I. Misrepresentation II. Contribution III. Offer IV. Representation Q 45_______________ involves pressure applied through criminal means. I. Fraud II. Undue influence III. Coercion IV. Mistake Q46 :Which among the following is true regarding life insurance contracts? I. They are verbal contracts not legally enforceable II. They are verbal which are legally enforceable III. They are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872 IV. They are similar to wager contracts Q 47 :Which of the below is not a valid consideration for a contract? I. Money II. Property III. Bribe IV. Jewellery Q 48 : Which of the below party is not eligible to enter into a life insurance contract? I. Business owner II. Minor III. House wife IV. Government employee Q 49 :Which of the below action showcases the principle of “Uberrima Fides”? I. Lying about known medical conditions on an insurance proposal form II. Not revealing known material facts on an insurance proposal form III. Disclosing known material facts on an insurance proposal form IV. Paying premium on time Q 50: Which of the below is not correct with regards to insurable interest? I. Father taking out insurance policy on his son II. Spouses taking out insurance on one another III. Friends taking out insurance on one another IV. Employer taking out insurance on employees Q 51 :When is it essential for insurable interest to be present in case of life insurance? I. At the time of taking out insurance II. At the time of claim III. Insurable interest is not required in case of life insurance IV. Either at time of policy purchase or at the time of claim Q 52 : Find out the proximate cause for death in the following scenario? Ajay falls off a horse and breaks his back. He lies there in a pool of water and contracts pneumonia. He is admitted to the hospital and dies because of pneumonia. I. Pneumonia II. Broken back III. Falling off a horse IV. Surgery Q 53 :Can a complaint be launched against a private insurer? I. Complaints can be launched against public insurers only II. Yes, complaint can be launched against private insurers III. Complaint can be launched against private insurers only in the Life Sector IV. Complain can be launched against private insurers only in the Non-Life Sector Q54 :How does diversification reduce risks in financial markets? I. Collecting funds from multiple sources and investing them in one place II. Investing funds across various asset classes III. Maintaining time difference between investments IV. Investing in safe assets Q 55 :Which of the below is not an element of the life insurance business? I. Asset II. Risk III. Principle of mutuality IV. Subsidy Q 56 : Who devised the concept of HLV? I. Dr. Martin Luther King II. Warren Buffet III. Prof.Hubener IV. George Soros Q 57 : Which of the below mentioned insurance plans has the least or no amount of savings element? I. Term insurance plan II. Endowment plan III. Whole life plan IV. Money back plan Q 58 : Which among the following cannot be termed as an asset? I. Car II. Human Life III. Air IV. House Q 59 :Which of the below cannot be categorised under risks? I. Dying too young II. Dying too early III. Natural wear and tear IV. Living with disability Q 60 : which statement is correct ? I. Life insurance policies are contracts of indemnity while general insurance policies are contracts of assurance II. Life insurance policies are contracts of assurance while general insurance policies are contracts of indemnity III. In case of general insurance the risk event protected against is certain IV. The certainty of risk event in case of general insurance increases with time Q 61 :Which among the following methods is a traditional method that can help determine the insurance needed by an individual? I. Human Economic Value II. Life Term Proposition III. Human Life Value IV. Future Life Value Q 62 :Which of the below is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people? I. Young people are mostly dependant II. Old people can afford to pay more III. Mortality is related to age IV. Mortality is inversely related to age Q 63 :Which of the below is not an advantage of cash value insurance contracts? I. Safe and secure investment II. Inculcates saving discipline III. Lower yields IV. Income tax advantages Q 64 Which of the below is an advantage of cash value insurance contracts? I. Returns subject to corroding effect of inflation II. Low accumulation in earlier years III. Lower yields IV. Secure investment Q65 : Which among the following would you recommend in order to seek protection against unforeseen events? I. Insurance II. Transactional products like bank FD‟s III. Shares IV. Debentures Q 66 : When is the best time to start financial planning? I. Post retirement II. As soon as one gets his first salary III. After marriage IV. Only after one gets rich Q 67 :Which among the following is not an objective of tax planning? I. Maximum tax benefit II. Reduced tax burden as a result of prudent investments III. Tax evasion IV. Full advantage of tax breaks Q 68 :An individual with an aggressive risk profile is likely to follow wealth _______ investment style. I. Consolidation II. Gifting III. Accumulation IV. Spending Q 69: Which among the following is a wealth accumulation product? I. Bank Loans II. Shares III. Term Insurance Policy IV. Savings Bank Account Q 70 : Savings can be considered as a composite of two decisions. Choose them from the list below. I. Risk retention and reduced consumption II. Gifting and accumulation III. Spending and accumulation IV. Postponement of consumption and parting with liquidity Q71 :During which stage of life will an individual appreciate past savings the most? I. Post retirement II. Earner III. Learner IV. Just married Q 72 :What is the relation between investment horizon and returns? I. Both are not related at all II. Greater the investment horizon the larger the returns III. Greater the investment horizon the smaller the returns IV. Greater the investment horizon more tax on the returns Q 73 : Which among the following can be categorised under transactional products? I. Bank deposits II. Life insurance III. Shares IV. Bonds Q 74 :Which among the following can be categorised under contingency products? I. Bank deposits II. Life insurance III. Shares IV. Bonds Q 75 :Which of the below can be categorised under wealth accumulation products? I. Bank deposits II. Life insurance III. General insurance IV. Shares Q 76 : __________ is a rise in the general level of prices of goods and services in an economy over a period of time. I. Deflation II. Inflation III. Stagflation IV. Hyperinflation Q77 : Which of the below is not a strategy to maximise discretionary income? I. Debt restructuring II. Loan transfer III. Investment restructuring IV. Insurance purchase Q 78 : Which among the following is an intangible product? I. Car II. House III. Life insurance IV. Soap Q 79 :The premium paid for whole life insurance is _____________ than the premium paid for term assurance. I. Higher II. Lower III. Equal IV. Substantially higher Q 80 : __________ life insurance pays off a policyholder's mortgage in the event of the person's death. I. Term II. Mortgage III. Whole IV. Endowment Q 81 :The ________ the premium paid by you towards your life insurance, the ________ will be the compensation paid to the beneficiary in the event of your death. I. Higher, Higher II. Lower, Higher III. Higher, Lower IV. Faster, Slower Q 82 :Which of the below option is correct with regards to a term insurance plan? I. Term insurance plans come with life-long renewability option II. All term insurance plans come with a built-in disability rider III. Term insurance can be bought as a stand-alone policy as well as a rider with another policy IV. There is no provision in a term insurance plans to convert it into a whole life insurance plan Q 83 : In decreasing-term insurance, the premiums paid ____________ over time. I. Increase II. Decrease III. Remain constant IV. Are returned Q 84 : Using the conversion option present in a term policy you can convert the same to _ I. Whole life policy II. Mortgage policy III. Bank FD IV. Decreasing term policy Q 85 : What is the primary purpose of a life insurance product? I. Tax rebates II. Safe investment avenue III. Protection against the loss of economic value of an individual‟s productive abilities IV. Wealth accumulation Q 86 : Who among the following is best advised to purchase a term plan? I. An individual who needs money at the end of insurance term II. An individual who needs insurance and has a high budget III. An individual who needs insurance but has a low budget IV. An individual who needs an insurance product that gives high returns Q 87 : Which of the below statement is incorrect with regards to decreasing term assurance? I. Death benefit amount decreases with the term of coverage II. Premium amount decreases with the term of coverage III. Premium remains level throughout the term IV. Mortgage redemption plans are an example of decreasing term assurance plans Q 88 :Which among the following is a non-traditional life insurance product? I. Term assurance II. Universal life insurance III. Endowment insurance IV. Whole life insurance Q89 :Which of the below statement is incorrect? I. Variable life insurance is a temporary life insurance policy II. Variable life insurance is a permanent life insurance policy III. The policy has a cash value account IV. The policy provides a minimum death benefit guarantee Q 90 :What does inter-temporal allocation of resources refer to? I. Postponing allocation of resources until the time is right II. Allocation of resources over time III. Temporary allocation of resources IV. Diversification of resource allocation Q 91 :Which among the following is a limitation of traditional life insurance products? I. Yields on these policies is high II. Clear and visible method of arriving at surrender value III. Well defined cash and savings value component IV. Rate of return is not easy to ascertain Q 92 : Where was the Universal Life Policy introduced first? I. USA II. Great Britain III. Germany IV. France Q 93 : Who among the following is most likely to buy variable life insurance? I. People seeking fixed return II. People who are risk averse and do not dabble in equity III. Knowledgeable people comfortable with equity IV. Young people in general Q 94 :Which of the below statement is true regarding ULIP‟s? I. Value of the units is determined by a formula fixed in advance II. Investment risk is borne by the insurer III. ULIP‟s are opaque with regards to their term, expenses and savings components IV. ULIP‟s are bundled products Q 95 : All of the following are characteristics of variable life insurance EXCEPT: I. Flexible premium payments II. Cash value is not guaranteed III. Policy owner selects where savings reserve is invested IV. Minimum Death benefit is guaranteed Q 96 :Which of the below is correct with regards to universal life insurance? Statement I: It allows policy owner to vary payments Statement II: Policy owner can earn market based rate of return on cash value I. I is true II. II is true III. I and II are true IV. I and II are false Q 97 :All of the following is true regarding ULIP‟s EXCEPT: I. Unit holder can choose between different kind of funds II. Life insurer provides guarantee for unit values III. Units may be purchased by payment of a single premium or via regular premium payments. IV. ULIP policy structure is transparent with regards to the insurance expenses component Q 98 :As per IRDAI norms, an insurance company can provide which of the below non- traditional savings life insurance products are permitted in India? Choice I: Unit Linked Insurance Plans Choice II: Variable Insurance Plans I. I only II. II only III. I and II both IV. Neither I nor II Q 99 :What does unbundling of life insurance products refers to? I. Correlation of life insurance products with bonds II. Correlation of life insurance products with equities III. Amalgamation of protection and savings element IV. Separation of the protection and savings element Q100:Which among the following is a non-traditional life insurance product? I. Term assurance II. Universal life insurance III. Endowment insurance IV. Whole life insurance Q101 :What is the objective behind Mortgage Redemption Insurance? I. Facilitate cheaper mortgage rates II. Provide financial protection for home loan borrowers III. Protect value of the mortgaged property IV. Evade eviction in case of default Q102: The sum assured under keyman insurance policy is generally linked to which of the following? I. Keyman income II. Business profitability III. Business history IV. Inflation index Q103: Mortgage redemption insurance (MRI) can be categorised under ________. I. Increasing term life assurance II. Decreasing term life assurance III. Variable life assurance IV. Universal life assurance Q104 : Which of the below losses are covered under keyman insurance? I. Property theft II. Losses related to the extended period when a key person is unable to work III. General liability IV. Losses caused due to errors and omission Q105 :A policy is effected under the MWP Act. If the policyholder does not appoint a special trustee to receive and administer the benefits under the policy, the sum secured under the policy becomes payable to the _____________. I. Next of kin II. Official Trustee of the State III. Insurer IV. Insured Q 106 : Mahesh ran a business on borrowed capital. After his sudden demise, all the creditors are doing their best to go after Mahesh‟s assets. Which of the below assets is beyond the reach of the creditors? I. Property under Mahesh‟s name II. Mahesh‟s bank accounts III. Term life insurance policy purchased under Section 6 of MWP Act IV. Mutual funds owned by Mahesh Q 107 :Which of the below option is true with regards to MWP Act cases? Statement I: Maturity claims cheques are paid to policyholders Statement II: Maturity claims cheques are paid to trustees I. I is true II. II is true III. Both I and II are true IV. Neither I nor II is true Q 108 :Which of the below option is true with regards to MWP act cases? Statement I: Death claims are settled in favour of nominees Statement II: Death claims are settled in favour of trustees I. I is true II. II is true III. Both I and II are true IV. Neither I nor II is true Q 109: Ajay pays insurance premium for his employees. Which of the below insurance premium will not be treated deductible as compensation paid to employee? Choice I: Health insurance with benefits payable to employee Choice II: Keyman life insurance with benefits payable to Ajay I. I only II. II only III. Both I and II IV. Neither I nor II Q 110 :The practice of charging interest to borrowers who pledge their property as collateral but leaving them in possession of the property is called _____________. I. Security II. Mortgage III. Usury IV. Hypothecation Q 111 :Which of the below policy can provide protection to home loan borrowers? I. Life Insurance II. Disability Insurance III. Mortgage Redemption Insurance IV. General Insurance Q 112 :What does a policy lapse mean? I. Policyholder completes premium payment for a policy II. Policyholder discontinues premium payment for a policy III. Policy attains maturity IV. Policy is withdrawn from the market Q113 :Who bears the investment risk in case of ULIPs? I. Insurer II. Insured III. State IV. IRDA Q114 : What does the term “premium” denote in relation to an insurance policy? I. Profit earned by the insurer II. Price paid by an insured for purchasing the policy III. Margins of an insurer on a policy IV. Expenses incurred by an insurer on a policy Q 115 :Which of the below is not a factor in determining life insurance premium? I. Mortality II. Rebate III. Reserves IV. Management expenses Q 116 :What is a policy withdrawal? I. Discontinuation of premium payment by policyholder II. Surrender of policy in return for acquired surrender value III. Policy upgrade IV. Policy downgrade Q 117 : Which of the below is one of the ways of defining surplus? I. Excessive liabilities II. Excessive turnover III. Excess value of liabilities over assets IV. Excess value of assets over liabilities Q 118 :Which of the below is not a component of ULIP premiums? I. Policy allocation charge II. Investment risk premium III. Mortality charge IV. Social security charge Q 119 :Life insurance companies may offer rebate to the buyer on the premium that is payable on the basis of ___________. I. Sum assured chosen by the buyer II. Type of policy chosen by the buyer III. Term of the plan chosen by the buyer IV. Mode of payment (cash, cheque, card) chosen by the buyer Q 120 :Interest rates are one of the important components used while determining the premium. Which of the below statement is correct with regards to interest rates? I. Lower the interest rate assumed, lower the premium II. Higher the interest rate assumed, higher the premium III. Higher the interest rate assumed, lower the premium IV. The interest rates don‟t affect premiums Q 121 : Which of the below statement is correct? I. Business strain is the difficulty faced by the companies in securing new business II. Business strain arises at the end of the policy term. III. Business strain arises because of excess premium IV. Business strain arises because of excess expenses at the new business stage. Q 122 :With regards to valuation of assets by insurance companies, __________ is the value at which the life insurer has purchased or acquired its assets. I. Discounted future value II. Discounted present value III. Market value IV. Book value Q 123 : In case of __________, a company expresses the bonus as a percentage of basic benefit and already attached bonuses. I. Reversionary bonus II. Compound bonus III. Terminal bonus IV. Persistency bonus Q 124 :Which of the below statement is correct with regards to endowment assurance plan? I. It has a death benefit component only II. It has a survival benefit component only III. It has both a death benefit as well as a survival component IV. It is similar to a term plan Q 125 : Which of the below is an example of an endowment assurance plan? I. Mortgage Redemption Plan II. Credit Life Insurance Plan III. Money Back Plan IV. Whole Life Plan Q126 :During the _________ period, if the policyholder has bought a policy and does not want it, he / she can return it and get a refund. I. Free evaluation III. Cancellation II. Free look IV. Free trial Q 127 :Which of the below is an example of standard age proof? I. Ration card II. Horoscope III. Passport IV. Village Panchayat certificate Q 128 :Which of the below can be attributed to moral hazard? I. Increased risky behaviour following the purchase of insurance II. Increased risky behaviour prior to the purchase of insurance III. Decreased risky behaviour following the purchase of insurance IV. Engaging in criminal acts post being insured Q 129 :Which of the below features will be checked in a medical examiner‟s report? I. Emotional behaviour of the proposer II. Height, weight and blood pressure III. Social status IV. Truthfulness Q 130 : A __________ is a formal legal document used by insurance companies that provides details about the product. I. Proposal form II. Proposal quote III. Information docket IV. Prospectus Q 131 :The application document used for making the proposal is commonly known as the. I. Application form II. Proposal form III. Registration form IV. Subscription form Q 132 :From the below given age proof documents, identify the one which is classified as non-standard by insurance companies. I. School certificate II. Identity card in case of defence personnel III. Ration card IV. Certificate of baptism Q 133: Money laundering is the process of bringing _______ money into an economy by hiding its _______ origin so that it appears to be legally acquired. I. Illegal, illegal II. Legal, legal III. Illegal, legal IV. Legal, illegal Q 134 :In case the policyholder is not satisfied with the policy, he / she can return the policy within the free-look period i.e. within ________of receiving the policy document. I. 60 days II. 45 days III. 30 days IV. 15 days Q 135 :Which of the below statement is correct with regards to a policy returned by a policyholder during the free look period? I. The insurance company will refund 100% of the premium II. The insurance company will refund 50% of the premium III. The insurance company will refund the premium after adjusting for proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges IV. The insurance company will forfeit the entire premium Q 136 :Which of the below is not a valid address proof? I. PAN Card II. Voter ID Card III. Bank passbook IV. Driving licence Q 137 :What does a first premium receipt (FPR) signify? Choose the most appropriate option. I. Free look period has ended II. It is evidence that the policy contract has begun III. Policy cannot be cancelled now IV. Policy has acquired a certain cash value Q 138 :Which of the following documents is an evidence of the contract between insurer and insured? I. Proposal form II. Policy document III. Prospectus IV. Claim form Q 139 :If complex language is used to word a certain policy document and it has given rise to an ambiguity, how will it generally be construed? I. In favour of insured II. In favour of insurer III. The policy will be declared as void and the insurer will be asked to return the premium with interest to the insured IV. The policy will be declared as void and the insurer will be asked to return the premium to the insured without any interest Q 140 :Select the option that best describes a policy document. I. It is evidence of the insurance contract II. It is evidence of the interest expressed by the insured in buying an insurance policy from the company III. It is evidence of the policy (procedures) followed by an insurance company when dealing with channel partners like banks, brokers and other entities IV. It is an acknowledgement slip issued by the insurance company on payment of the first premium Q 141 :Which of the below statement is correct? I. The proposal form acceptance is the evidence that the policy contract has begun II. The acceptance of premium is evidence that the policy has begun III. The First Premium Receipt is the evidence that the policy contract has begun IV. The premium quote is evidence that the policy contract has begun Q 142 :For the subsequent premiums received by the insurance company after the first premium, the company will issue __________. I. Revival premium receipt II. Restoration premium receipt III. Reinstatement premium receipt IV. Renewal premium receipt Q 143 :What will happen if the insured person loses the original life insurance policy document? I. The insurance company will issue a duplicate policy without making any changes to the contract II. The insurance contract will come to an end III. The insurance company will issue a duplicate policy with renewed terms and conditions based on the current health declarations of the life insured IV. The insurance company will issue a duplicate policy without making any changes to the contract, but only after a Court order. Q 144 : Which of the below statement is correct? I. The policy document has to be signed by a competent authority but need not be compulsorily stamped according to the Indian Stamp Act. II. The policy document has to be signed by a competent authority and should be stamped according to the Indian Stamp Act. III. The policy document need not be signed by a competent authority but should be stamped according to the Indian Stamp Act. IV. The policy document neither needs to be signed by a competent authority nor it needs to be compulsorily stamped according to the Indian Stamp Act. Q 145 : Which of the below forms the first part of a standard insurance policy document? I. Policy schedule II. Standard provisions III. Specific policy provisions IV. Claim procedure Q 146 :In a standard insurance policy document, the standard provisions section will have information on which of the below? I. Date of commencement, date of maturity and due date of last premium II. Name of nominee III. The rights and privileges and other conditions, which are applicable under the contract IV. The signature of the authorised signatory and policy stamp Q 147 :“A clause precluding death due to pregnancy for a lady who is expecting at the time of writing the contract” will be included in which section of a standard policy document? I. Policy schedule III. Standard provisions II. General provisions IV. Specific policy provisions Q 148 :Under what circumstances would the policyholder need to appoint an appointee? I. Insured is minor II. Nominee is a minor III. Policyholder is not of sound mind IV. Policyholder is not married Q 149 : Which of the below statement is false with regards to nomination? I. Policy nomination is not cancelled if the policy is assigned to the insurer in return for a loan II. Nomination can be done at the time of policy purchase or subsequently III. Nomination can be changed by making an endorsement in the policy IV. A nominee has full rights on the whole of the claim Q 150 :In order for the policy to acquire a guaranteed surrender value, for how long must the premiums be paid as per law? I. Premiums must be paid for at least 2 consecutive years II. Premiums must be paid for at least 3 consecutive years III. Premiums must be paid for at least 4 consecutive years IV. Premiums must be paid for at least 5 consecutive years Q 151 :When is a policy deemed to be lapsed? I. If the premiums are not paid on due date II. If the premiums are not paid before the due date III. If the premium has not been paid even during days of grace IV. If the policy is surrendered Q 152 : Which of the below statement is correct with regards to grace period of an insurance policy? I. The standard length of the grace period is one month. II. The standard length of the grace period is 30 days. III. The standard length of the grace period is one month or 30 days. IV. The standard length of the grace period is one month or 31 days. Q 153 :What will happen if the policyholder does not pay the premium by the due date and dies during the grace period? I. The insurer will consider the policy void due to non-payment of premium by the due date and hence reject the claim II. The insurer will pay the claim and waive off the last unpaid premium III. The insurer will pay the claim after deducting the unpaid premium IV. The insurer will pay the claim after deducting the unpaid premium along with interest which will be taken as 2% above the bank savings interest rate Q 154 :During the revival of a lapsed policy, which of the below aspect is considered most significant by the insurance company? Choose the most appropriate option. I. Evidence of insurability at revival II. Revival of the policy leading to increase in risk for the insurance company III. Payment of unpaid premiums with interest IV. Insured submitting the revival application within a specified time frame Q 155 : For an insurance policy nomination is allowed under _________ of the Insurance Act, 1938. I. Section 10 II. Section 38 III. Section 39 IV. Section 45 Q 156 :Which of the below statement is incorrect with regards to a policy against which a loan has been taken from the insurance company? I. The policy will have to be assigned in favour of the insurance company II. The nomination of such policy will get cancelled due to assignment of the policy in favour of the insurance company III. The nominee‟s right will affected to the extent of the insurer‟s interest in the policy IV. The policy loan is usually limited to a percentage of the policy‟s surrender value Q 157 :Which of the below statement is incorrect with regards to assignment of an insurance policy? I. In case of Absolute Assignment, in the event of death of the assignee, the title of the policy would pass to the estate of the deceased assignee. II. The assignment of a life insurance policy implies the act of transferring the rights right, title and interest in the policy (as property) from one person to another. III. It is necessary that the policyholder must give notice of assignment to the insurer. IV. In case of Absolute Assignment, the policy vests absolutely with the assignee till maturity, except in case of death of the insured during the policy tenure, wherein the policy reverts back to the beneficiaries of the insured. Q 158 :Which of the below alteration will be permitted by an insurance company? I. Splitting up of the policy into two or more policies II. Extension of the premium paying term III. Change of the policy from with profit policy to without profit policy IV. Increase in the sum assured Q 159 :Which of the following cases is likely to be declined or postponed by a life insurer? I. Healthy 18 year old II. An obese person III. A person suffering from AIDS IV. Housewife with no income of her own Q160 :Which of the following is an example of moral hazard? I. Stunt artist dies while performing a stunt II. A person drinking copious amounts of alcohol because he is inured III. Insured defaulting on premium payments IV. Proposer lying on policy document Q 161 : Why is heredity history of importance in medical underwriting? I. Rich parents have healthy kids II. Certain diseases can be passed on from parents to children III. Poor parents have malnourished kids IV. Family environment is a critical factor Q 162 : Which of the following denotes the underwriter’s role in an insurance company? I. Process claims II. Decide acceptability of risks III. Product design architect IV. Customer relations manager Q 163 : Which of the following is not an underwriting decision? I. Risk acceptance at standard rates III. Postponement of risk II. Declinature of risk IV. Claim rejection Q 164 : Which of the following is not a standard age proof? I. Passport II. School leaving certificate III. Horoscope IV. Birth certificate Q165 :Which of the following condition will affect a person’s insurability negatively? I. Daily jogs II. Banned substance abuse III. Lazy nature IV. Procrastination Q 166 :Under what method of underwriting does an underwriter assign positive rating points for all negative or adverse factors (negative points for any positive or favourable factors)? I. Judgment II. Arbitrary III. Numerical rating IV. Single step Q 167 :Under risk classification, ___________ consist of those whose anticipated mortality corresponds to the standard lives represented by the mortality table. I. Standard lives II. Preferred risks III. Sub-standard lives IV. Declined lives Q 168 :Amruta is pregnant. She has applied for a term insurance cover. Which of the below option will be the best option to choose for an underwriter to offer insurance to Amruta? Choose the most likely option. I. Acceptance at ordinary rates II. Acceptance with extra premium III. Decline the proposal IV. Acceptance with a restrictive clause Q 169 :Which of the below insurance proposal is not likely to qualify under non-medical underwriting? I. Savita, aged 26 years, working in an IT company as a software engineer II. Mahesh, aged 50 years, working in a coal mine III. Satish, aged 28 years, working in a bank and has applied for an insurance cover of Rs. 1 crore IV. Pravin, aged 30 years, working in a departmental store and has applied for an endowment insurance plan for a tenure of 10 years Q 170 :Sheena is suffering from acute diabetes. She has applied for an insurance plan. In this case the underwriter is most likely to use ____________ for underwriting. Choose the most appropriate option. I. Judgment method II. Numerical method III. Any of the above method since an illness like diabetes does not play a major role in the underwriting process IV. Neither of the above method as diabetes cases are rejected outright Q171 :Santosh has applied for a term insurance policy. His anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium. Under risk classification, Santosh will be classified under ___________. I. Standard lives II. Preferred risks III. Substandard lives IV. Declined lives Q 172 :Which of the below statement best describes the concept of claim? Choose the most appropriate option. I. A claim is a request that the insurer should make good the promise specified in the contract II. A claim is a demand that the insurer should make good the promise specified in the contract III. A claim is a demand that the insured should make good the commitment specified in the agreement IV. A claim is a request that the insured should make good the promise specified in the agreement Q 173 : Given below is a list of policies. Identify under which type of policy, the claim payment is made in the form of periodic payments? I. Money-back policy II. Unit linked insurance policy III. Return of premium policy IV. Term insurance policy Q 174 :Mahesh has bought a life insurance policy with a critical illness rider. He has made absolute assignment of the policy in favour of Karan. Mahesh suffers a heart attack and there is a claim of Rs. 50,000 under the critical illness rider. To whom will the payment be made in this case? I. Mahesh II. Karan III. The payment will be shared equally by Mahesh and Karan IV. Neither of the two because Mahesh has suffered the heart attack but the policy is assigned in favour of Karan. Q 175 :Praveen died in a car accident. The beneficiary submits documents for death claim. Which of the below document is an additional document required to be submitted in case of accidental death as compared to natural death. I. Certificate of burial or cremation II. Treating physician‟s certificate III. Employer‟s certificate IV. Inquest Report Q 176 :Which of the below death claim will be treated as an early death claim? I. If the insured dies within three years of policy duration II. If the insured dies within five years of policy duration III. If the insured dies within seven years of policy duration IV. If the insured dies within ten years of policy duration Q 177 :Given below are some events that will trigger survival claims. Identify which of the below statement is incorrect? I. Claim paid on maturity of a term insurance policy II. An instalment payable upon reaching the milestone under a money-back policy III. Claim paid for critical illnesses covered under the policy as a rider benefit IV. Surrender value paid on surrender of an endowment policy by the policyholder Q 178 :A payment made under a money-back policy upon reaching a milestone will be classified under which type of claim? I. Death claim II. Maturity claim III. Periodical survival claim IV. Surrender claim Q 179 :Shankar bought a 10 year Unit Linked Insurance Plan. If he dies before the maturity of the policy which of the below will be paid? I. Lower of sum assured or fund value II. Higher of sum assured or fund value III. Premiums paid will be returned with 2% higher interest rate as compared to a bank‟s savings deposit IV. Surrender value Q 180 :Based on classification of claims (early or non-early), pick the odd one out? I. Ramya dies after 6 months of buying a term insurance plan II. Manoj dies after one and half years of buying a term insurance plan III. David dies after two and half years of buying a term insurance plan IV. Pravin dies after five and half years of buying a term insurance plan Q 181 : Given below is a list of documents to be submitted for a normal death claim by all beneficiaries in the event of death of life insured. Pick the odd one out which is additionally required to be submitted only in case of death by accident. I. Inquest report II. Claim form III. Certificate of burial or cremation IV. Hospital‟s certificate Q 182 :As per IRDAI (Protection of Policyholders Interests) Regulations, 2002, a claim under a life policy shall be paid or be disputed, within 30 days from the date of receipt of all relevant papers and clarifications required. I. 7 days III. 30 days II.15 days IV. 45 days Q 183 :As per guidelines, an insurance company has to process an insurance proposal within __________. I. 7 days II. 15 days III. 30 days IV. 45 days Q 184 :In case the premium payment is made by cheque, then which of the below statement will hold true? I. The risk may be assumed on the date on which the cheque is posted II. The risk may be assumed on the date on which the cheque is deposited by the insurance company III. The risk may be assumed on the date on which the cheque is received by the insurance company IV. The risk may be assumed on the date on which the cheque is issued by the proposer Q 185 :Which of the below statement is correct with regards to a warranty? I. A warranty is a condition which is implied without being stated in the policy II. A warranty is a condition expressly stated in the policy III. A warranty is a condition expressly stated in the policy and communicated to the insured separately and not as part of the policy document IV. If a warranty is breached, the claim can still be paid if it is not material to the risk Q 186 :If certain terms and conditions of the policy need to be modified at the time of issuance, it is done by setting out the amendments through __________. I. Warranty II. Endorsement III. Alteration IV. Modifications are not possible Q 187 :Which of the below statement is correct with regards to renewal notice? I. As per regulations there is a legal obligation on insurers to send a renewal notice to insured, 30 days before the expiry of the policy II. As per regulations there is a legal obligation on insurers to send a renewal notice to insured, 15 days before the expiry of the policy III. As per regulations there is a legal obligation on insurers to send a renewal notice to insured, 7 days before the expiry of the policy IV. As per regulations there is no legal obligation on insurers to send a renewal notice to insured before the expiry of the policy Q 188 : Though the duration of cover for pre-hospitalization expenses would vary from insurer to insurer and is defined in the policy, the most common cover is for ________ pre-hospitalization. I. Fifteen days II. Thirty days III. Forty Five days IV. Sixty days Q 189 :As per IRDA guidelines, a ________ grace period is allowed for renewal of individual health policies. I. Fifteen days III. Forty Five days II. Thirty days IV. Sixty days Q 190 :Which of the below statement is correct with regards to a hospitalization expenses policy? I. Only hospitalization expenses are covered II. Hospitalization as well as pre and post hospitalization expenses are covered III. Hospitalization as well as pre and post hospitalization expenses are covered and a lumpsum amount is paid to the family members in the event of insured‟s death IV. Hospitalization expenses are covered from the first year and pre and post hospitalization expenses are covered from the second year if the first year is claim free. Q191 :Identify which of the below statement is correct? I. Health insurance deals with morbidity II. Health insurance deals with mortality III. Health insurance deals with morbidity as well as mortality IV. Health insurance neither deals with morbidity or mortality Q 192 :Which of the below statement is correct with regards to cashless service provided in health insurance? I. It is an environment friendly go-green initiative started by insurance companies to promote electronic payments so that circulation of physical cash notes can be reduced and trees can be saved. II. Service is provided free of cost to the insured and no cash is to be paid as the payment is made by the Government to the insurance company under a special scheme III. All payments made by insured have to be made only through internet banking or cards as cash is not accepted by the insurance company IV. The insured does not pay and the insurance company settles the bill directly with the hospital Q 193 :Identify the correct full form of PPN with regards to hospitals in health insurance. I. Public Preferred Network II. Preferred Provider Network III. Public Private Network IV. Provider Preferential Network Q 194 :Identify which of the below statement is incorrect? I. An employer can take a group policy for his employees II. A bank can take a group policy for its customers III. A shopkeeper can take a group policy for its customers IV. A group policy taken by the employer for his employees can be extended to include the family members of the employees Q 195 :Underwriting is the process of ___________. I. Marketing insurance products II. Collecting premiums from customers III. Risk selection and risk pricing IV. Selling various insurance products Q 196 :The principle of utmost good faith in underwriting is required to be followed by _... I. The insurer III. Both the insurer and the insured II. The insured IV. The medical examiners Q 197 :Insurable interest refers to ____________. I. Financial interest of the person in the asset to be insured II. The asset which is already insured III. Each insurer‟s share of loss when more than one company covers the same loss IV. The amount of the loss that can be recovered from the insurer Q 198 :Which of the following statements about medical underwriting is incorrect? I. It involves high cost in collecting and assessing medical reports. II. Current health status and age are the key factors in medical underwriting for health insurance. III. Proposers have to undergo medical and pathological investigations to assess their health risk profile. IV. Percentage assessment is made on each component of the risk. Q 199 : 1) In a group health insurance, any of the individual constituting the group could anti- select against the insurer. 2) Group health insurance provides coverage only to employer-employee groups. I. Statement 1 is true and statement 2 is false II. Statement 2 is true and statement 1 is false III. Statement 1 and statement 2 are true IV. Statement 1 and statement 2 are false Q 200 :Which of the following factor does not affect the morbidity of an individual? I. Gender II. Spouse job III. Habits IV. Residence location Q 201 According to the principle of indemnity, the insured is paid for __________. I. The actual losses to the extent of the sum insured II. The sum insured irrespective of the amount actually spent III. A fixed amount agreed between both the parties IV. The actual losses irrespective of the sum assured Q 202 :The first and the primary source of information about an applicant, for the underwriter is his ________________. I. Age proof documents II. Financial documents III. Previous medical records IV. Proposal form Q 203 :The underwriting process is completed when ___________________. I. All the critical information related to the health and personal details of the proposer are collected through the proposal form II. All the medical examinations and tests of the proposer are completed III. The received information is carefully assessed and classified into appropriate risk categories IV. The policy is issued to the proposer after risk selection and pricing. Q 204 :Which of the following statements about the numerical rating method is incorrect? I. Numerical rating method provides greater speed in the handling of a large business with the help of trained personnel. II. Analysis of difficult or doubtful cases is not possible on the basis of numerical points without medical referees or experts. III. This method can be used by persons without any specific knowledge of medical science. IV. It ensures consistency between the decisions of different underwriters Q 205 :Who among the following is not a stakeholder in insurance claim process? I. Insurance company shareholders II. Human Resource Department III. Regulator IV. TPA Q 206 :Which of the following document is maintained at the hospital detailing all treatment done to an in-patient? I. Investigation report II. Settlement sheet III. Case paper IV. Hospital registration certificate Q 207 :The amount of provision made for all claims in the books of the insurer based on the status of the claims is known as ________. I. Pooling II. Provisioning III. Reserving IV. Investing Q 208 :Which of the following documents are not required to be submitted for Permanent Total Disability claim? I. Duly completed Personal Accident claim form signed by the claimant. II. Attested copy of First Information Report if applicable. III. Permanent disability certificate from a civil surgeon or any equivalent competent doctors certifying the disability of the insured. IV. Fitness certificate from the treating doctor certifying that the insured is fit to perform his normal duties. Q 209 :________________ are paid upfront by Assistance Company and later claimed from insurance company. I. Bail bond cases II. Personal accident claims III. Overseas travel insurance claims IV. Untenable claims Q 210 :Who among the following is considered as primary stakeholder in insurance claim process? I. Customers II. Owners III. Underwriters IV. Insurance agents/brokers Q 211 :Girish Saxena‟s insurance claim was denied by insurance company. In case of a denial, what is the option available to Girish Saxena, apart from the representation to the insurer? I. To approach Government II. To approach legal authorities III. To approach insurance agent IV. Nothing could be done in case of case denial Q 212 :During investigation, of a health insurance claim presented by Rajiv Mehto, insurance company finds that instead of Rajiv Mehto, his brother Rajesh Mehto had been admitted to hospital for treatment. The policy of Rajiv Mehto is not a family floater plan. This is an example of ___________fraud. I. Impersonation II. Fabrication of documents III. Exaggeration of expenses IV. Outpatient treatment converted to in-patient / hospitalization Q213 : Under which of the following condition, is domiciliary hospitalization is covered in a health insurance policy? I. The condition of the patient is such that he/she can be removed to the Hospital/Nursing Home , but prefer not to II. The patient cannot be removed to Hospital/Nursing Home for lack of accommodation therein III. The treatment can be carried out only in hospital/Nursing home IV. Duration of hospitalization is exceeding 24 hours Q214 : Which of the following codes capture the procedures performed to treat the illness? I. ICD II. DCI III. CPT (Current Procedure Terminology ) IV. PCT ---------------------------------------------------------------------------------------------------------- various classes of health insurance 1. Hospitalization indemnity product 2. Top-up covers or high deductible insurance plans 3. Senior citizen policy 4. Fixed benefit covers – Hospital cash, critical illness 5. Long term care product 6. Combi-products 7. Package policies 8. Micro insurance and health insurance for poorer sections 9. Rashtriya Swasthya Bima Yojana 10. Pradhan Mantri Suraksha Bima Yojana 11. Pradhan Mantri Jan Dhan Yojana 12. Personal accident and disability cover 13. Overseas travel insurance 14. Group health cover Prepared by: V.Shrikanth , L & D Manager. Source : IC38 E-book