Sample paper for IRDA Agents Exam

Tell me how can i get IRDA Agents model question paper, will you please provide???

[Arun Vats]

You are looking for IRDA Agents question paper, i am giving here:

1. Doctors appointed by insurers will be qualified in ———— medicine.


a) Allopathic b) Ayurvedic c) Homeopathic d) All of the above


2. In what plan of insurance is medical examination never required ?


a) Endowment b) Pure endowment c) Group insurance d) Term assurance

3. Why does an officer conduct special enquiry in the case of death claim which arose after 4 years ?


a) on suspicion of suppression of facts b) as a precaution c) as a routine d) for large sum assured


4. Which of the following statements are “TRUE” ?

Statement A : Insurance works on the law of averages

Statement B : Insurance is possible only when there are many policyholders.

a) Only statement A b) Only statement B c) Both statements d) Neither of the statement

5. The questions in the proposal form and personal statement are material and relevant

a) without exception b) mostly c) only partly d) rarely


6. Which of the following statements are “TRUE” ?

Statement A : Accident Benefit cover is issued as a separate policy in life insurance

Statement B : Accident Benefit cover is a rider in a life insurance policy



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement


7. Which of the following statements are “TRUE” ?

Statement A : A father is a keyman to his son.



Statement B : A proprietor is a keyman in his business.

a) Only statement A b) Only statement B c) Both statements d) Neither of the statement

8. The agent has ————— freedom to act on behalf of the principle.

a) Full b) Limited c) Specified d) None of the above

9. Moral Hazard is determined on the basis of data given below by ———–

a) Proponent b) Agent c) Special Enquiries d) All of above

10. Which of the following statements are “TRUE” ?

Statement A : The law of averages works when there are many risks of similar nature.


Statement B : When a calamity hits an insured person, the loss is met from the premium paid by him.

a) Only statement A b) Only statement B c) Both statements d) Neither of the statement


11. A Duplicate policy is issued when the original policy is ———–

a) lost b) with assignee c) pledged against loan d) all of the above


12. ————- describes an agent who keeps records of his activities and examines them periodically.


a) Analyst b) Professional c) Non professional d) Meticulous




13. Loans under an insurance policy are repayable ————



a) In a lumpsum b) By adjustment with claim c) In installments d) any of the above





14. ———– describes the behaviour of an agent who in the presence of outsiders, cover up the mistakes made by his colleagues.



a) arrogant b) protective c) professional d) self-confident





15. The principle is responsible for ————– of the acts of the agents



a) specified acts of agents on behalf of principle b) some of the acts of the agents c) none of the acts of the agents d) all the acts of the agents





16. If a person is born on 4/07/1981, his age next birthday on 25/11/2000 will be ————-



a) 21 b) 19 c) 18 d) 20





17. An officer of an Insurance Company authorized by the IRDA to issue agency license is called

————-



a) Deligated Authority b) Bonus c) Paid up value d) Default value





18. The reduced sum assured payable when the premium due is in default is called ————-

a) Paid-up Value b) Reduced Value c) Deligated Authority d) Default value





19. The bonus which attaches to the policy immediately on declaration is called ———- bonus.



a) terminal b) immediate c) reversionary d) final





20. An annuity purchased on 10/11/1984 provides for an immediate annuity for 20 years and life thereafter. If the annuitant dies on 20/12/2000, when will the last quaterly annuity be paid ?



a) 10/11/2000 b) 10/11/2004 c) 10/02/2001 d) 10/08/2004





21. Which of the following statements are “TRUE” ?

Statement A : An insured person can ignore safety and precautionary arrangements

Statement B : Insurance compensates only economic losses



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





22. In a mortgage redemption policy, the Sum Assured is payable



a) at the end of the term b) on death within the term c) both of the above d) on default in repayments





23. Which of the following statements are “TRUE” ?

Statement A : When a policy matures the claim proceeds are paid to the assured.



Statement B : In insurance, the principle of buyer beware applies



a) Only statement A b) Only statement B c) Both statements d) Neither statements





24. After how many years a missing person presumed to be dead ?



a) six b) seven c) five d) eight





25. Which of these policies does not cover the risk of death ?



a) Term b) Endowment c) Pure endowment d) Whole life





26. Final or Terminal bonus is payable ———–



a) on death b) on surrender c) on maturity d) all of the above





27. What does ‘days of grace’ mean?



a) Time allowed for paying premium b) on maturity c) Period after which only risks begins

d) all the above





28. ————- are the statements made by prospect raising doubts about the usefulness of the insurance



a) objections b) queries c) refusals d) disagreements



29. The reduction permitted in the tabular premium depending on the mode of premium or sum assured is called ————-



a) reduction b) rebate c) incentive d) concession





30. Which of the following statements are “TRUE” ?

Statement A : Policy decisions are taken by the underwriters in an insurance company.



Statement B : Policy decisions are taken by the top management in an insurance organization.



a) Only statement A b) Only statement B c) Both statements d) Neither statements





31. The agent who tries to canvass insurance business by offering temptations of sharing the commission is ————-



a) incompetant b) professional c) non-professional d) corrupt





32. The process of determining if the claim can be paid is called ————-



a) admission b) consideration c) acceptance d) decision





33. When original policy is lost, duplicate policy is needed for ———–



a) getting the claim b) taking a loan c) paying the premium d) all of the above





34. Which of the following statements are “TRUE” ?

Statement A : It is the agent’s responsibility to ensure that all material information is made available



Statement B : If the proposed papers are incomplete, the agent will be held accountable

a) Only statement A b) Only statement B c) Both statements d) Neither statements





35. Which of the following statements are “TRUE” ?

Statement A : Proof of age is necessary only for proposals for insurance, not for the agency applications



Statement B : After the business is complete, the agent has no further role.



a) Only statement A b) Only statement B c) Both statements d) Neither statements





36. In the case a joint life annuity commencing on October 1988, the husband died in November 1996 and the wife died in December 1999. When will the last quaterly annuity be paid ?



a) July 1997 b) October 1996 c) October 1999 d) July 2000





37. Which of the following statement(s) are “TRUE” ?

Statement A : A nomination is valid only if it is made on the policy document



Statement B : When the insurance policy is the subject matter of a will, the nomination is automatically cancelled



a) Only statement A b) Only statement B c) Both statements d) Neither statements





38. Which of the following statements is “TRUE” ?

Statement A : When a person dies, no expense is incurred on him.



Statement B : Life insurance helps to ensure a decent burial or cremation on death



a) Only statement A b) Only statement B c) Both statements d) Neither statements





39. ————- describes an agent who does not take the objections of his prospect lightly.



a) non-professional b) mechanical c) professional d) arrogant





40. ———– means the list of names whom an agent would try to meet to procure life insurance

a) proponents b) clients c) prospects d) proposers





41. To whom should the license fee be paid ?



a) controller of insurance b) the insurer c) IRDA d) any of the above







42. Which of the following statements are “TRUE” ?

Statement A : Insurance can be made to start from previous year



Statement B : The policyholder loses his right when makes the nomination



a) Only statement A b) Only statement B c) Both statements d) Neither statements



43. What is paid by the insurer when the policyholder decides to discontinue the policy ?



a) intermediate claim b) lapse c) forfeiture d) surrender value





44. Which of the following statements are “TRUE” ?

Statement A : The agent is expected to carry the identity card with him while meeting clients.



Statement B : A prospect is entitled to ask to see the agent’s license.



a) Only statement A b) Only statement B c) Both statements d) Neither statements





45. How is an annuity paid by the insurer ?



a) in annual installments b) in quaterly installments c) in lumpsum d) in installments





46. The agent’s report to the insurer should include matters ————– in the proposal.



a) appearing b) not appearing c) relevant but not appearing d) all of the above





47. The person who takes the decision to grant insurance is called ———–



a) officer b) manager c) salesman d) underwriter





48. Which of the following statements are “TRUE” ?

Statement A : There are no needs on account of a person who has died.



Statement B : Life insurance takes care of the liabilities of a person who has died.



a) Only statement A b) Only statement B c) Both statements d) Neither statements





49. Doctors appointed by insurers will be ————-



a) general physicians b) specialists c) surgeons d) all of the above





50. Who is an insurance agent authorized to work for a life insurer and a general insurer ?



a) multiple agent b) general agent c) life agent d) composite agent





51. In an insurance policy, the amount payable on death may be the amount payableon maturity



a) same as b) more than c) less than d) any of the above





52. An agent is concerned with the —————



a) IRDA Act b) Insurance Act c) Contract Act d) Any of the above





53. Which of the following statement(s) are “TRUE” ?

Statement A : The necessity for a medical examination depends only on the Sum Assured.



Statement B : The nature of employment may be a factor to dispense with medical examination



a) Only statement A b) Only statement B c) Both statements d) Neither statements



54. The deduction allowed in Income Tax, because of amounts paid towards life insurance premium, Provident Fund, etc is called ———–



a) reduction b) rebate c) concession d) deduction





55. Who is a person who arranges for a customer to get necessary insurance ?



a) agent b) retailer c) broker d) intermediary









56. Which of the following statements are “False” ?

Statement A : Policy decisions in an insurance organization mean decisions relating to issue of specific insurance policies.



Statement B : Policy decisions in an insurance organization mean decisions relating to kind of plans of insurance to be offered to the public.



a) Only statement A b) Only statement B c) Both statements d) Neither statements





57. If a person is born on 02.02.1979, his age nearer birthday on 5.11.2000 will be ———-



a) 23 b) 21 c) 19 d) 22





58. Which of the following statements are “TRUE” ?

Statement A : One can take a policy on the life of a customer to whom he has lent money



Statement B : A wife can take the policy on her husband



a) Only statement A b) Only statement B c) Both statements d) Neither statements





59. Which of the following statements are “TRUE” ?

Statement A : The maturity proceeds of an insurance policy are taxable as income



Statement B : The premium paid under insurance is fully exempt under income tax



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement



60. The maturity proceeds in case of a policy financed by HUF will be paid to ———-



a) karta b) life assured c) nominee d) none of these





61. Which of the following statement(s) is “TRUE” ?

Statement A : The amount of Sum Assured may depend on the income of the proponent.



Statement B : Under insurance is as bad as over insurance.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement







62. Bringing a policy, which has lapsed, back to force is called ————–



a) revival b) renewal c) relapse d) recovery





63. ————— is helping the policyholder to make sure that the policy will not fail at the critical moment.



a) sales b) advice c) promise d) service





64. ———- means business wherein, persons facing the same risk are brought together to create a fund from which those suffering losses are compensated.



a) security b) insurance c) mutual fund d) banking





65. Surplus declared in a valuation arises because of good ————–



a) underwriting b) management c) investment d) all of the above





66. Who is the person on whose life the underwriter makes a decision ?



a) proponent b) policyholder c) person to be insured d) all of the above





67. What is called the ‘reverse of life insurance’



a) loan b) surrender value c) annuity d) none of these





68. The authority of an agent is ————



a) specified in the appointment letter b) inferred from his actions c) verbally communicated

d) all of the above

[formidable id=3 title=true description=true]

1.A policy, in which payment to the annuitant begins five years after the policy has

commenced, is called ___________annuity.

a. Deferred b. Certain c. immediate d. five year



2.A duplicate policy may be issued when the original has been _______.

a. Mutilated b. burnt c. Stolen d. All the above



3. What right does a consumer have?

a. Right of redressal b. Right to information c. right to education

c. all the above



4. What is required to pay the death claim if there is no will, nomination or

Assignment?

a. Probate b. Birth certificate c. proof of title d. Court order



5. When we agree to pay a claim, it is called _____________.

a. Admission b. payment c. submission d. consideration



6. Which of the statement/s are True?

A. Insurance helps one to be less dependent on others.

B. Insurance is necessary to cover the risk of living too long.

a. Only A b. only B c. Both d. Neither



7. Which of the following are true?

A. The community of policyholders shares insurance claims.

B. In insurance, every policyholder contributes to the losses incurred by

others.

a. Only A b. only B c. both d. neither



8. Which of the following are true?

A. Insurance works on the law of averages.

B. Insurance is possible only when there are many policyholders.

a. Only A b. only B c. both d.neither



9. Annuity covers the risk of ______________

a. Death b. accident c. Living too long d. sickness



10. Which of the following are true?

A. Accident Benefit is an option available on payment of additional amount.

B. Accident Benefit cover is automatic in all life insurance policies.

a. Only A b. only B c. both d. Neither



11. The reduction in the tabular premium for mode or sum assured is called

_____________.

a. Concession b. incentive c. Rebate d. reduction



12. Terminal Bonus is payable on _____________.

a. Maturity b. surrender c. revival d. foreclosure



13. _______________ is the process of deciding on a proposal for

insurance.

a. Decision b. acceptance c. underwriting d. Consideration



14. In case of Moral Hazard _______________

a. Proposal is declined b. Extra premium is charged

c. Sum assured is reduced d. lien is imposed



15. The principal is responsible for ________________acts of the agents.

a. All acts of the agent b. None of the acts of the agents

c. Some of the acts of the agent d. specified act on behalf of the principal



16. Which of the following is true?

A. A wife can take on a policy on her husband.

B. A person can take a policy on the life of a customer to whom he has lent

money.

a. Only A b. only B c. both d. neither



17. A business wherein persons facing same risks are brought together,

to create a fund from which those suffering losses are compensated.

a. Mutual fund b. insurance c. Banking d. security



18. If an immediate annuity is purchased on 10/12/2000 when will the first

half-yearly annuity be paid?

a. 10/12/200 b. 10/03/2001 c. 01/06/2001 d. 10/06/2001



19.The happening of risk in insurance should be

a. Accidental b. Created c. Regular d. Deliberate



20. In LIC, social security fund is created as per instructions of

__________.

a. IRDA b. State Govt. c. Controller of Insurance d. Central Govt.



21. A policy cannot be called in question after 2 years on the grounds of

false information under Section _____ of the Insurance Act.

a. 45 b. 38 c. 44 d. 39



22. A prospect is one who has

a. Need for insurance b. capacity to pay

c. Need and capacity d. none of the above



23. Plans of life insurance are

a. Only term insurance b. Only pure endowment

c. Combination of term and pure endowment d. none of the above



24. Final Additional Bonus is payable on policies which are in full force for

full sum assured for a minimum period of

a. 10 yrs. b. 15 yrs. c. 20yrs. d. 25 yrs.



25. In case of convertible whole life plan, policyholder has to exercise the

option of converting it into endowment assurance at the end of

a. 2 yrs. b. 5 yrs. c. 7 yrs. d. 10 yrs.



26.In case of annuity policies, selection is made by

a. Insurer b. agent c. Annuitant d. Development officer



27. Insurance premium charged depends on

a. Sum assured b. term c. age d. all the above



28. A policy acquires paid up value after payment of premium for

a. 3 yrs. b. 5 yrs. c. 1 yr. d. 7 yrs.



29. For yearly mode of payment of premium rebate allowed in tabular

Premium is

a. 3% b. 1.5% c. 5 % d. 1%



30. S.V. Factor depends on

a. Sum assured b. Duration elapsed c. term d. Term and duration elapsed



31. The present rate of interest for delayed payment of premium is

a. 6% b. 9% c. 7.5% d. 10.5%



32. _________ is the evidence of intimation of risk upto the next due date.

a. FPR b. challan c. renewal receipt d. Deposit receipt



33. _____________ is the evidence of the policy contract.

a. FPR b. Renewal receipt c. proposal form d. policy document



34. Alterations are effected in a policy by

a. Separate endorsement b. correcting the document

c. Issuing a new document d. none of the above



35. _______________ is the basic unit of growth and profit.

a. Branch office b. divisional office c. zonal office d. Central office



36. _______________ Plan is designed to meet the outstanding loans of

Individual

a. Endowment b. Jeevan Griha c. Bima Sandesh d. Mortgage redemption

assurance



37. Life insurance business was nationalised in ___________.

a. 1947 b. 1956 c. 1950 d. 1981



38. An annuity payable for a fixed period is called _____________.

a. Annuity certain b. immediate annuity c. life annuity d. deferred annuity



39. __________ is the price paid by the insured for a life insurance policy.

a. Sum assured b. premium c. Maturity value d. Surrender value



40. Main advantages of group schemes

a. High sum assured b. low cost c. graded cover d. no age proof



41. Premiums paid under Jeevan Suraksha plan are exempt under Sec.

_______ of IT Act.

a. 88 b. 80CCC c. 80D d. 80 G



42. LICI Act has been amended by ______________.

a. IRDA Act, 1998 b. IRDA Act, 1999

c. IRDA Act, 2000 d. None



43. Licence to an insurance agent is issued by ____________.

a. Controller of insurance b. IRDA

c. Marketing Manager d. Branch Manager



44. A composite insurance agent is one who _______________.

a. Works for life insurance b. Works for general insurance

c. Works for life and general insurance d. works for UTI



43. The insurer before claim in case of ______________ can send a

discharge voucher.

a. Death claim b. surrender c. maturity claim d. none



47. Behavioral aspects include

a. Communication b. morale c. motivation d. all the above



48. Ideally the plan to be sold to the prospect is ____________

a. Endowment b. Money back c. plan that suits the needs of the proposer

d. multipurpose



49. Maximum commission payable on first year premium is

a. 35% b. 50% c. 15% d. 25%



50. Minimum business required for an agent every year is __________.

a. 15 policies b. 12 policies c.12 lives d. 15 lives



51. Purchase price in case of a deferred annuity can be paid in

a. Lump sum b. quarterly installments c. yearly installments d. any of these



52. Extended claim concession is applicable to policies where premiums

have been paid for _______________.

a. 3 years b. 10 years c. 5 years d. 2 years



52. If the proposer does not fully disclose fully all the material facts at

the time of proposal , the principle violated is

a. Caveat emptor b. insurable interest c. utmost good faith

d. Sharing of risk



54. A plan of life insurance, which provides for payment of sum assured in

the event of death only during the selected term and nothing payable in the

event of survival is known as

a. Pure endowment b. term assurance c. Immediate annuity

d. Deferred annuity



55. A document required to pay the death claim

a. Birth certificate b. death certificate c. court order d.evidence of

relationship to deceased.



56.The decision not to accept the life proposed to be insured is known as

a. Declining b. Negative c. rejection d. Refusal



57. Surplus in a valuation arises because of Favourable experience in

a. Mortality b. cost of management c. Interest earned

d. all the above



58.The amount paid by the insurer when the policyholder decides that he

does not want to continue with the policy

a. Forfeiture amount b. final claim c. lapse amount d. surrender value



59. The process of recording the correct age of a person insured is

Called ______________.

a. Certification b. age admission c. verification d. Proof of age



60. Infirmities are caused by _______________.

a. Old age b. sickness c. loss of limb d. all of these



61. Doctors appointed by the insurers will be ______________.

a. General physicians b. Specialists c. Surgeons d. All of these



62. To be eligible for bonus, ____________ year’s premiums have to be

paid under an insurance policy

a. 2 years b. 3 years c. 4 years d.5 years



63. A contract, which provides for regular periodic payments for a specified

period which, is fixed without regard to the duration of any life

a. Life annuity b. Deferred annuity c. Fixed annuity d. Annuity certain



64. Licence for life insurance business is granted for _____ years.

a. 3 years b. 5 years c. 6 years d. 4 years



65. ______________ is bringing the policy back to life.

a. Renewal b. Revival c. restart d. Lapsation



66. Payment of claim amount to claimants who are non-residents of India

are governed by

a. Passport b. Foreign Exchange Control Regulations

c. Evidence Act d. Income Tax Act



67. Trust deed in a Group Insurance has to be approved

a. Chairman of LIC b. Commissioner of Income- Tax

c. Marketing manager d. Branch Manager



69. Guaranteed surrender value is 30% of the total amount of premiums

excluding

a. First year’s premium b. extra premiums, if any

c. Accident benefit premium d. all of these



70. The primary component of the distribution channel in life insurance

a. Branch Manager b. agent c. Assistant d. development officer



71. Calculate the half-yearly installment premium given that:

Date of birth 10/01/1976

Date of proposal 10/01/2001

Sum Assured Rs. 10000

Assume that the proposal is without accident benefit and occupational

extra Rs. 4%o is chargeable.

The tabular premium for the plan and term is given below:

For age: 24 years Rs. 75.00

25 years Rs. 76.00

26 years Rs. 77.00

Also assume that there is no mode or sum assured rebate

a. 450 b. 400 c. 800 d. 760



71. Date of commencement : 13/7/1984

Endowment with profits 25 years

Sum Assured Rs.50000

Last premium paid was due on 13/01/2001

Mode: Qly Premium: Rs.450

S.V. Factor 46%

Bonus 1985 – 2000 – 960 /- per thousand

2001-75 /- per thousand

Calculate loan value as on 12.02.2002

a. 33528 b. 33530 c.35500 d.35501

IRDA Agent Licensing Question paper





1. The process of determining if the claim can be paid is called ————



a) admission b) acceptance c) consideration d) decision





2. What criteria are relevant to compare different savings plan?



a) Safety b) Liquidity c) Yield d) All of the above





3. The limits of doctors for medical examination are decided by ————-



a) Insurer b) Medical Council c) Government d) IRDA





4. The questions in the proposal form and personal statement are material and relevant



a) without exception b) mostly c) only partly d) rarely





5. Which of the following statements are “TRUE” ?

Statement A : A paid up policy can be revived.



Statement B : The insurer may refuse to issue a new policy if an earlier one is paid up.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





6. To whom should license be paid ?



a) Controller of Insurance b) The insurer c) The IRDA d) Any of the above





7. A proposal is dated 10.11.2000. The premium was paid on the same day. The decision to accept with extra was made on 15.11.2000. The extra premium was paid on 17.11.2000. The letter of consent was received in the office on 21.11.2000. When does the risk on this policy commence ?



a) 10.11.2000 b) 17.11.2000 c) 20.11.2000 d) 15.11.2000

8. Which of the following statements are “TRUE” ?

Statement A : The principle of utmost good faith is the same as the principle of Buyers beware



Statement B : The existence of high blood pressure need not be disclosed as the doctor can find this out during the medical examination.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





9. ————– are statements made by the prospect raising doubts about the usefulness of the insurance.



a) Objections b) Refusals c) Queries d) Disagreements





10. In what plan of insurance is medical examination never required, whatever be the amount of Sum assured?



a) Endowment b) Pure endowment c) Term assurance d) Group insurance





11. The limits of authority of an agent are laid down by the ————-



a) Insurance Act b) Contract Act c) Appointment Letter d) None of the above





12. Which of the following statements are “TRUE” ?

Statement A : The necessity for a medical examination depends only on the Sum assured.



Statement B : The nature of employment may be a factor to dispense with medical examination.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





13. ———– describes the behaviour of an agent who is willing to accept that a particular customer

may not need life insurance



a) Defeatist b) Timid c) Professional d) Non professional





14. Section 45 of the Insurance Act is relevant for policies which are at least ——— years old.



a) Two b) Four c) Both statements d) Neither of the statements



15. Which of the following statements are “TRUE” ?

Statement A : In a group policy, each person is free to choose the amount of insurance cover.



Statement B : A person, normally uninsurable, can be covered under a group insurance policy.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





16. Infimities are caused by ————–

a) Rs. 3 lakhs b) Rs. 10 lakhs c) Rs. 13 lakhs d) None of the above

17. If a person’s annual income is Rs. 3 lakhs and he has assets (proper and share) worth 10 lakhs he can be given a maximum insurance cover of ————-

a) Rs. 3 lakhs b) Rs. 10 lakhs c) Rs. 13 lakhs d) None of the above

18. Which of the following statements are “TRUE” ? Statement A : When a policy matures, the claim proceeds are paid to the assured.



Statement B : In insurance, the principle of buyer beware applies.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





19. The behaviour of an agent who makes critical marks about his company is ————-



a) Clever b) Non-professional c) Professional d) Efficient





20. Bringing a policy, which has lapsed , back to force is called ————–



a) Recovery b) Revival c) Renewal d) Elapse





21. Which of the following statements are “TRUE” ?

Statement A : The proposal form should be written by the agent himself.



Statement B : The proposal form should be filled by the proponent himself, unless he is illiterate.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement



22. Disablity benefits may arise because of ————-



a) Sickness b) Old age c) Loss of limbs d) Any of the above





23. ———– is the person to whom the policy is transferred in lieu of some consideration received.



a) Nominee b) Mortgagor c) Beneficiary d) Assignee





24. Which of the following statements are “TRUE” ?

Statement A : In case of corporate agent, only the Chief Executive has to pass the prescribed examination.



Statement B : A person who is convicted of cheating can get an agency license as soon as he is released from jail.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





25. A person’s insurable interest interest in his own life is ————-



a) Unlimited b) 10 times his salary c) Agents manual d) All of the above





26. An agent is subject to ————-



a) IRDA regulation b) Terms of appointment c) Agents manual d) All of above





27. ———– describes the behaviour of an agent who is in the presence of outsiders, covers up the mistakes made by his collegues.



a) self confident b) protective c) arrogant d) professional





28. What is paid by the insurer when the policyholder decides to discontinue the policy ?



a) Surrender value b) Intermediate claim c) Lapse d) Forfeiture





29. Which of the following skill is required to influence the other person to do something ?



a) Salesmanship b) Communication c) Analytical d) Persuasiveness





30. ———– is the professional who is the technical expert on life insurance matters.



a) Underwriter b) Accountant c) Evaluator d) Actuary





31. If the proponent has no insurable interest in the insured, the underwriter will ———–



a) accept the lien b) accept with extra premium c) decline the proposal d) accept with reduced Sum assured





32. The deduction allowed in income tax because of amounts paid towards life insurance premium Profident fund, etc is called ————–



a) Concession b) Decuction c) Reduction d) Rebate





33. Which of the following statements are “TRUE” ?

Statement A : The underwriter tries to prevent any undue advantage being taken by prospect



Statement B : The underwriter is a trustee of all policyholders



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





34. ———– describes an agent who keeps records of his activities and examines them periodically.



a) Analyst b) Professional c) Non professional d) Meticulous





35. ———– means the business wherein, persons facing the same risk are brought together to create a fund from which those suffering losses are compensated.



a) Insurance b) Mutual Fund c) Banking d) Security





36. Term assurance is not suitable when the need is to provide for ———–



a) old age b) repayment of outstanding loan c) mortgage redemption d) any of the above





37. Final or Terminal bonus is payable ————-



a) On death b) On surrender c) On maturity d) All of the above





38. Which of the following statements are “TRUE” ?

Statement A : An insurance agent may be sued under Consumer protection act



Statement B : The Consumer protection act does not apply to government companies.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





39. What is called the reverse of ‘Life Insurance’?



a) Loan b) Surrender value c) Annuity d) None of above





40. A policy in which the payment to the annuitant begins after one year and is payable thereafter annually ]

is called ———– annuity.



a) immediate b) annual c) deffered d) one-year





41. The process of recording the correct age of person insured is called ———-



a) Age admission b) Verifications c) Proof of age d) Certification





42. A policy which has run for 8 years can be called into question if there is ———–



a) Misrepresentation b) Fraud c) Mistake d) None of the above





43. What are the criteria of a good saving plan ?



a) Safety b) Liquidity c) Yield d) All of above







44. In case of policy under the provision of Married Women’s Property Act, who can make a death claim ?



a) Beneficiaries b) Life Insured HEIRS c) Trustee d) Any of the above





45. The skill required to explain in a manner that the other person understands is ———–



a) Persuasiveness b) Explanatory c) Convincing d) Communication





46. The reduction permitted in the tabular premium depending on the mode of premium or Sum assured is called ————-



a) Reduction b) Rebate c) Incentive d) Concession





47. Loans under an insurance policy are repayable ————



a) In a lumpsum b) By adjustment with claim c) In installments d) any of the above





48. Which of the following statements are “TRUE” ?

Statement A : Proof of age is necessary only for proposals for insurance, not for agency applications.



Statement B : After the business is complete, the agent has no further role.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement



49. The maturity proceeds in case of a policy financed by HUF will be paid to ———-



a) karta b) life assured c) nominee d) none of these





50. When does foreclosure action begin ?



a) When premium is not paid b) When policy is surrendered c) When loan and interest accumulate

d) All of the above





51. Which of the following statements are “TRUE” ?

Statement A : A paid up policy will be entitled to bonus.



Statement B : The life to be insured must be in perfect health.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





52. A duplicate policy may be issued, when original has been ————-



a) Burnt b) Stolen c) Mutiliated d) All of the above





53. The attachment to a policy to indicate that the standard policy terms and conditions have been modified is called ————–



a) clause b) endorsement c) rider d) condition





54. Which of the following statements is “TRUE” ?

Statement A : When a person dies, no expense is incurred on him.



Statement B : Life insurance helps to ensure a decent burial or cremation on death



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





55. If the claim in question is 23 lakhs, which consumer court will hear the application ?



a) State Level b) National Level c) District Level d) None of above





56. Which information, if not disclosed, can nullify the policy ?



a) Critical b) Valid c) Material d) Important





57. The agents report to the insurer should include ———- facts.



a) Favorable b) Unfavorable c) Neither of the above d) Both of the above







58. Which of the following statements are “TRUE” ?

Statement A : Insurance is relevant only if there is possible economic loss.



Statement B : An event, which will certainly happen cannot be insured against.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





59. Which of the following statements are “TRUE” ?

Statement A : A policy which has been in force for 10 years can be called into question for misrepresentation



Statement B : A policy which has been in force for 10 years can be called into question for fraud.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





60. Which of the following statements are “TRUE” ?

Statement A : Insurance companies come under the purview of the Consumer Protection Act.



Statement B : The jurisdiction of consumer forum depends on the value of claim.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement

61. Which risk is covered by annuity ?



a) Accident b) Living too long c) Sickness d) Death





62. Which of the following statements are “TRUE” ?

Statement A : Insurance is possible only if the event concerned happens by random.



Statement B : The cause of “loss” is called peril.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





63. The authority of an agent is ———–



a) Specified in the appointment letter b) Inferred from his action c) Verbally communicated

d) All of the above

64. Which of the following statements is “TRUE” ?

Statement A : The fact of having been on sick leave must be disclosed, even if there were no sickness and certificate of sickness was false.



Statement B : Most plans of insurance are a combination of two basic plans.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





65. The bonus which attaches to the policy immediately on declaration is called ———- bonus



a) Final b) Immediate c) Terminal d) Reversionry





66. Which of the following statements is “TRUE” ?

Statement A : The premium under a group insurance policy is constant for all time to come.



Statement B : Section 45 of the insurance act does not apply to a one year policy.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





67. Which of the following statements are “TRUE” ?

Statement A : Section 45 of the insurance act applies also to paid up policies.

Statement B : Section 45 of the insurance act does not apply to a one year policy.



a) Only statement A b) Only statement B c) Both statements d) Neither of the statement





68. In an insurance policy, the amount payable on death may be the amount payable on maturity



a) same as b) more than c) less than d) any of the above





69. ————- means the market in which an agent chooses to operate.



a) Segment b) Target c) Area d) Section







70. Which of the approaches of the agent is appropriate ?

Approach A : An agent insisted that all his policyholders should send the premium cheque to him, so that he could ensure that delays did not happen through oversight.



Approach B : The agent had the habit of greeting all his policyholders in the same town, on their birthdays and give them attractive presents.



a) only approach A b) only approach B c) both the approaches d) Neither of the approach





71. Approach A : An agent used to persuade his prospects, who were mainly salaried employees at the middle management level, that they should take out policies under the MWP act.



Approach B : An agent selling mostly Salary Savings Scheme policies in the engineering factories used to canvass them on the basis of Income Tax advantages.



a) only approach A b) only approach B c) both the approaches d) Neither of the approach





72. Approach A : When a prospect wanted to know what the agent would get out of the sale of insurance, he just gave him a xerox copy of his appointment letter.



Approach B : When a prospect wanted to know what the agent would get out of the sale of insurance, he said that that was a confidential matter.



a) only approach A b) only approach B c) both the approaches d) Neither of the approach





73. Approach A : When the prospect said that he had taken sick leave for a few days because he wanted to go outstation for an interview, the agent suggested that he need not mention it.



Approach B : The agent suggested to the prospect not to mention the fact that the cause of death of one of his brother’s who had died young, was cardiac arrest. It was mentioned as ‘Accident’



a) only approach A b) only approach B c) both the approaches d) Neither of the approach





74. Calculate premium from following data



Date of commencement : 1.1.1992

Date of birth : 15.4.1961

Tabular premium for endowment plan with profit



For age 31 – Rs. 41.50

For age 32 – Rs. 41.65

For age 33 – Rs. 41.80

Sum assured – Rs. 1,00,000

Mode – Yearly



Proposal is accepted at ordinary rates without accident benefits

Rebate for sum assured is Rs. 2 per thousand perannum. Rebate for yearly mode is 3% and double accident benefit is available at Re.1 per thousand sum assured per annum



a) Rs. 4,165 b) Rs. 3,825 c) Rs. 3,965 d) Rs. 3,840





75. From the following particulars, calculate paid up value :



Sum assured : Rs. 50,000

Plan : Endowment without profit

Term : 20 years



Date of commencement : 19.02.1994

LPP – yearly : 14.02.2000