Insurance Regulatory and Development Authority Agents exam previous year papers

Will you please share with me the Insurance Regulatory and Development Authority Agents exam previous year papers?

[Kiran Chandar]

As you want to get the Insurance Regulatory and Development Authority Agents exam previous year papers so here it is for you:

1) Potential purchaser of product is called ________________
(a) Prospect
(b) Consumer
(c) Customer
(d) Client

(2) If policyholder is in grievance,__________________ will solve
(a) Grievance officer
(b) Court order
(c) Ombudsman
(d) All the above

(3) 20,000 policies in the 5th year are to be made from _________sector
(a) Rural
(b) Social
(c) None
(d) Urban

(4) Insurance Agent is governed by ____________________
(a) Contract act
(b) Insurance Act
(c) IRDA
(d) All above

(5) Doctors appointed by insurers will be _____________
(a) General Physicians
(b) Specialists
(c) Surgeons
(d) All of above

(6) __________is the document produced to establish one’s age
(a) Birth Certificate
(b) Affidavit
(c) License
(d) Proof of age

(7) Who is the person who identifies the customer and get the necessary insurance for him ?
(a) Intermediary
(b) Retailer
(c) Broker
(d) Agent

(8) Which kind of Insurance plan can meet all need of a proponent?
(a) Endowment
(b) Money Back
(c) Multipurpose
(d) None of them

(9) The principal is responsible for __________ agent
(a) All the acts of agent
(b) Specified acts of agent
(c) Some of acts agent
(d) None of them

(10) Which of the following statements are True:
a) It is the agent’s responsibility to ensure that all material information is made available
b) If the proposal paper is incomplete, the agent will be held accountable
(a) A Statement
(b) B Statement
(c) Both Statement
(d) Neither of Statement

(11) In the case of a policy under the provision of M.W.P. ACT who can make the death claim?
(a) Beneficiary
(b) Life insured Heirs
(c) Trustee
(d) Any of the above

(12) Which kind policies are not entitled bonuses?
(a) Non participatory
(b) Money back
(c) Children’s
(d) Whole life

(13) Claim in question is Rs.23 lakh which consumer court will it go to:__________

(14) A policy which has run for 8 years can be called into question if there is a__________________
(a) Fraud
(b) Misrepresentation
(b) Mistake
(c) None of above

(15) What would be the paid up value of a 25-year-old endowment policy for Rs.50, 000 taken in Oct 1988, if the last ½ year’s premium paid was in Oct 2000?____________

(16) Which of the following statements are True:
a) An insurance agent can be sued under the Consumer Protection Act
b) The Consumer Protection Act does not apply to Govt. Company.
a) A Statement
b) B Statement
c) Both Statements
d) Neither of Statement

(17) If the proponent has no insurable interest in the insured the underwriter will
(a) Accept with reduce sum assured
(b) Decline the proposal
(c) Accept with lien
(d) Accept with extra premium

(18) What is paid by the insurer when the policyholder decides to discontinue the policy
(a) Forfeiture
(b) Surrender Value
(c) Intermediate Claim
(d) Lapse

(19) A person employed to act on behalf of another in dealing with a third person is called _____________
(a) Lawyer
(b) Broker
(c) Employee
(d) Agent

(20) Which are true
a) Proof of age is necessary for proposal and not for agency application
b) After business is complete agent has no role
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement

(21) Which are true
a) Insurance is necessary to cover risk of living too long
b) Insurance helps one to be less dependent on others
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement

(22) Which statement is not appropriate
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 he need not mention it
B) Agent suggested to the prospect not to mention the fact that the cause of death of one of the brothers who had died young was cardiac arrest, it was mentioned as accident
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement

(23) Which statement is not appropriate
A) The necessity for medical examination depends on S.A.
B) The nature of employment may be a factor to dispense with medical exam
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement

(24) Why does an office conduct special inquiry in the case of death claim which arose after 4 years
(a) As precaution
(b) As a Routine
(c) On suspicion of suppression of facts
(d) For large sum assured

(25) Loans is available only in the policy if
(a) It is a with profit policy
(b) The S.A exceeds Rs.10,000/-
(c) It is in facts underwriter decision
(d) None of the above

(26) Which statement is true
A Lapsed policy can be revived whenever the policy holder choose
B A paid up policy is a lapsed policy
(a) Only statement A
(b) Only statement B
(c) Both false
(d) Both statement

(27) When do the non-forfeiture provision apply
a) When policy is surrendered
b) When loan is taken
c) When premium is not paid
d) All above

(28) True – False
A – DAB is automatic in all life insurance policies
B- DAB is an option on payment of additional payment

(29) True – False
A – Insurance works on the law of large numbers
B – Insurance is possible only when there are many policyholders

(30) True – False
A – A policy that has been in force for 10 years can be called into question for misrepresentation
B – A policy which has been for 10 years called into question for fraud.

(31) True – False
A – An agent must find out the details of proponent and report the same to the insurer. T
B – The income of the proponent must be made known to the insurer.

(32) Loan under policy should not exceed
(a) S.V
(b) S.A.
(c) total premium paid
(d) Bonus

(33) Disability is related to
(a) Sickness
(b) Old age
(c) Loss of limb
(d) all of them

(34) Agent is subject to
(a) IRDA regulation
(b) Term of appointment
(c) Agent’s manual
(d) All of above

(35) The agent has _______freedom to act on behalf of insurer
(a) Limited
(b) Specified
(c) full
(d) none of the above

(36) Write true or false
a) Insurance is an individual issue and not a social one. -
b) “Uberrimae Fides” means “utmost Good Faith”.
c) Whole life policy is the best solution for most of the needs of a person. -
d) There are no “participating” policies in life insurance. -
e) There is no single premium endowment plan. -
F) Loan “Value” is equal to 90% of “Surrender Value”.

(37) Calculate Premium
Date of Birth = 3.06.1954
Date of Calculation = 1.01.2001
Date of commencement of policy = 1.12.2000
Term = 19 years
Sum assured = Rs.1,00,000/-
Mode = Ordinary – monthly
Accident benefit for Rs.50, 000/- only is required.
Tabular Premiums Age 45 = 76.00
Age 46 = 76.80
Age 47 = 78.00
AGE TO BE TAKEN 46 ANS 659

(38) Calculate the premium on basis of data given below:
Age 35 years
S.A.Rs.60, 000/-
T & T 75 – 20
Tabular premium Rs.68.70 per 1000/- mode I) yearly – II) half yearly –
DAB & EPDB Allowed, Occupational Extra Rs.2 per 1000 per year

(39) Calculate paid up value and special S.V.
S.A. Rs.30, 000 /-
T and T 14 – 15
D.O.C. 18.12.1985
L.P.P. 18.3.1991
Mode Quarterly
Bonus addition: Rs.396/- per 1000/- S.A.
S.V.factor 44.2

(44) Match the following
A B
a) Proposal C) let the buyer beware
b) ad idem D) evidence of contract
c) Caveat Emptor E) Pension
d) Policy A) basis of contract
e) Annuity B) of the same mind

(45) Say True or False.
a) A person’s insurable interest in his own life is _____(Unlimited / 10 times his salary / equal to his assets / non of these)
b) How many years must elapse after cancellation of a license, before a new license can be issued (three / four / five)
c) To whom should an application for agency license be given ______________(IRDA / Insurer /Controller of Insurance / any of them)
d) Who fixes the limits of doctors for medical examinations _____________ (IRDA / Medical council / Insurer / None of these)
e) Life Insurance premiums are determined by __________ (Accountants / Underwriter / Actuary)

(46) Calculate paid up value and S.V. in the following case
S.A. Rs. 30,000/-
Mode Half yearly
D.O.C. 28/10/1985
L.P.P. 28/04/1996
S.V. Factor 45
TT 14-25
Bonus Addition Rs.770 per 1000/- S.A.

(47) The route or process through which a product is carried to the customer is known as DISTRIBUTION CHANNEL

(48) Age nearer birthday as on 18/06/2000 of a person with date of birth 28/12/1961 is ________39
(49) The days of grace for monthly mode of premium is ___________ days.15

(50) EDLI scheme is linked to the payment of ________________ (Gratuity / Provident fund / pension)

(51) State whether true or false.
1. Group Gratuity Scheme is beneficial to both the employer as well as employees.
2. Financial planning is not necessary, but agent should seek maximum premium from the customer.
3. There should be no inducement, incase or kind, passing from agent to customer for taking out life insurance.
4. Agents generally get something over and above legitimate commission amount from the insurer.
5. Insurance Advisor is an agent of the insurer and therefore insurer is bound by the acts or omissions of the advisers, there being the principal-agent relationship.
6. As long as the insurer gets the minimum business from an agent, the insurer cannot terminate the agency of such agent.
7. All the information asked in a proposals form is relevant to the assessment of the risk.
8. ONCE the policy lapses there is no way the policy holder can re-start the policy
9. “Nomination” is not compulsory.
10. “Early” claims can be investigated by the insurer.

From where I can get paper of Insurance Regulatory and Development Authority Agents exam, as I want to take part in this exam??

[Kiran Chandar]

Insurance Institute of India conducts every year an all India based competitive exam for recruitment of Insurance Regulatory and Development Authority Agents post , as you want paper of this exam , so here I am providing same for you.
1. Insurance is a mechanism to reduce impact of adverse events on
a) Non-value generating assets.
b) Value generating assets.
c) Current assets
d) Fixed assets

2. Perils could be
a) Uncertain
b) Certain
c) Definite
d) Unlikely

3. Insurance is a function of
a) Uncertainty
b) Life
c) Society
d) Loss

4. Insurance works on the principle of
a) Sharing of profits
b) Sharing of assets
c) Sharing of losses
d) Sharing of expenses

5. A) Life Insurance protects the life of the insured.
B) Life Insurance minimizes the financial impact of untimely death.
a) A is correct b) B is correct
c) Both A & B are correct d) Both A & B are wrong

6. Occurrence of ----- has to be ------ & not a -------- of the insured person.

a. peril, uncertain, creation
b. event, certain, creation
c. risk, hazardous, profit
d. event, random, creation

7. For getting insurance you need to pay ------- and get compensated by -----.
a) Compensation, Claims
b) Claims, Premium
c) Premium, Claims
d) Fees, Claims

8. ------------ is the process, which prevents entry of people who do not share the same risk.
a) New Business
b) Valuation
c) Underwriting
d) All of the above


9. Life insurance is ------------- to the state’s efforts in social management.
a) Complementary
b) Supplementary
c) Elementary

10. The insurance company is in the role of --------- where all decisions are taken for the benefit of the community.
a) Caveat Emptor
b) Uberrimae Fides
c) Underwriter
d) Fiduciary.

11. To make accurate statistical estimates insurance risks must be handled as per the law of
a) Law of Inertia
b) Law of Large Numbers
c) Law of Large Groups
d) None of the above

12. The insurer is in the position of ------- of funds
a) Owner
b) Partner
c) Trustee
d) All of the above

13. Insurance is applicable to
a) Tangible Assets
b) Intangible Assets
c) Both of the above
d) None of the above

14. Article -------- relates to Social Security
a) 39
b) 40
c) 41
d) 42

15. A) In order to be insurable a risk must be capable of
Statistical estimation
B) In insurance only economic or financial losses can be
Compensated.
a) Statement A is correct
b) Statement B is correct
c) Both are correct
d) None of the above

16. In the mechanism of insurance, people who are exposed to different risk come together. TRUE / FALSE.

17. A human life is an income generating asset TRUE / FALSE.

18. In order to be insurable a risk must be capable of statistical estimation TRUE / FALSE.

19. Insurance is a function of uncertainty TRUE / FALSE.

20. What is insurance?
Protection of ________ value of assets (ECONOMIC)
Mechanism to reduce impact of adverse events on _______ _________ assets. ( VALUE GENERATING)

21. Damage to asset due to the PERIL IS CALLED Risk which an asset is exposed to TRUE / FALSE.

22. Life insurance protects the life of the insured. TRUE / FALSE.


23. Life insurance does not require any consideration. TRUE / FALSE.

24. In which of the cases Insurable interest does not exist
a. Spouse
b. Business Partner
c. Tenant
d. Self

25. Insurance prevents the damage of an asset due to PERIL. TRUE / FALSE.

26. Through Insurance only economic / Financial losses can be compensated. TRUE / FALSE.

27. The concept of insurance can be extended beyond the coverage of tangible assets.
TRUE / FALSE.

28. Match the following

a. Caveat Emptor 1. False facts
b. Uberrimae Fide 2. Influences premium fixing
c. Misrepresentation 3. Buyer beware
d. Material fact 4. Principle of utmost good faith

.

29. Caveate emptor and Ubereimae Fide put together mean that while the buyer holds the responsibility of revealing all relevant information from his side the agent is responsible to provide information only if asked for. TRUE / FALSE.

30. Caveate emptor and Ubereimae Fide put together mean that while the agent holds the responsibility of revealing all relevant information from his side the customer is responsible to provide information only if asked for. TRUE / FALSE

31. Almost all insurance policies are a combination of term and endowment policies. TRUE / FALSE.

32. Insurable interest is not defined in the insurance act 1938 TRUE / FALSE.

33. Insurable interest is not defined in the insurance act 1956 TRUE / FALSE

34. Insurable interest in defined in the IRDA act 1999 . TRUE / FALSE.

35. In group insurance, risk of individuals is not assessed TRUE/ FALSE

36. Underwriting is a process which ensures that all insured share the same risk. TRUE/ FALSE


37. Can an insolvent take a life insurance policy Yes / No

38. What is the part of surplus that is distributed to policyholders called? ________________. (BONUS)


39. Which type of life insurance plans entitles the life insured full sum assured in the event of either death or survival? ________. endowment

40. A person's interest in his own life is ....................?
a. Limited
b. Restricted to HLV
c. Unlimited


41. Minimum capital for new reinsurance companies entering Indian market as per IRDA norms is?____________________ . 200cr


42. Which is correct
A) Life Insurance contracts do not require consideration.
B) Life Insurance contracts require offer and acceptance.

(a) Statement A
(b) Statement B
(c) Both a and b
(d) None of the above


43. 4. In India, the Indian Contract Act, ---- governs commercial contracts.
a) 1852
b) 1862
c) 1872
d) 1882

44. Section 45 deals with policies which are ___old
a) 2 years
b) 3years
c) 4years
d) 10years or more

46. Which of the following is not a Material Fact
a) Medical History
b) Smoking Habit
c) Earlier Insurance Taken
d) None of the above

45. 7. Which of the following relate to Material Fact
a) Caveat Emptor
b) Uberrimae Fides
c) Consensus “ad idem”
d) Legality of Object

46. . Adverse Selection refers to
a) Wrong policies being selected
b) Lack of consensus ad idem
c) Substandard lives entering insurance contracts by non-disclosure.
d) Selection of wrong target segment by insurance company.

47. The duty of disclosure in life insurance operates
a) Till the risk commences
b) On alteration
c) On revival
d) All of the above

48. A) All risks are not insurable
B) Insurance risks must be capable of financial measurement
a) Statement A is correct
b) Statement B is correct
c) Both are incorrect
d) None of the above

49. 11. Insurable Interest is
a) Defined in Insurance Act 1938
b) A legal pre-requisite
c) Both of the above
d) None of the above






50. A) Facts which everyone is supposed to know need not be disclosed
B) Facts which lessen the risk need to be disclosed
a) Statement A is correct
b) Statement B is correct
c) Both A & B are correct
d) Both A & B are wrong


51. Insurance contracts are subject to two additional principles viz.:
a) Caveat Emptor, Uberrimae Fides
b) Caveat Emptor, Consensus “ad idem”
c) Caveat Emptor, Capacity to Contract
d) Uberrimae Fides, Insurable Interest


52. A) The proposer can decide which fact is material
B) Material facts help in deciding the premium
a) Statement A is incorrect
b) Statement B is incorrect
c) Both statements are incorrect
d) None of the above is correct


53. A) Hazardous profession can affect the premium
B) A commercial pilot’s premium would be different from that of a Teacher of the same age
a) Statement A is incorrect
b) Statement B is incorrect
c) Both statements are incorrect
d) Both statements are correct.

1. A policy in which the payments to the annuitant begins 5 years after the policy has commenced is called -----------

a) 5 year
b) Immediate
c) Delayed
d) Deferred

2. The ability to do is -----------

a) Action
b) Skill
c) Attitude
d) Knowledge

3. Which of the following statement(s) are “TRUE”?
Statement A: A father can take a policy on the life of his own son who is 12 yrs old
Statement B: One can take a policy on the life of a friend to whom has lent money

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

4. A duplicate policy can be issued when the original policy is

a) Lost
b) With assignee
c) Pledged against a loan
d) All the above

5. How is an annuity paid by the insurer?

a) In installments
b) In lump sum
c) In annual installments
d) In quarterly installments

6. In the case of moral hazard, -----------

a) A lien is placed
b) The sum assured is reduced
c) The proposal is declined
d) Extra premium is charged





7. Which of the following statement(s) are “TRUE”?
Statement A: The maturity proceeds of a policy are taxable as income
Statement B: The premium paid under an insurance policy is fully exempt from income tax

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

8. Which of the following statements are “TRUE “ ?
Statement A: A department in an office is a place where some specialized kind of work is done.
Statement B: Agents are usually attached to branches of insurance offices.

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

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

a) Intermediate Claim
b) Surrender Value
c) Forfeiture
d) Lapses

10. ----------- describes an agent who does not take the objections of his prospect lightely.

a) Non-professional
b) Arrogant
c) Professional
d) Mechanical

11. A policy in which the payment to the annuitant begins after 1 year and is payable thereafter annually, is called -------------

a) One year
b) Immediate
c) Annual
d) Deferred

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

a) Without exception
b) Mostly
c) Only partly
d) Rarely

13. An agent is subject to -----------

a) IRDA Regulations
b) Terms of appointments
c) Agents manual
d) All of the above



14. The behaviour of an agents who tells his client that the advice given by another agent is wrong is
-------------

a) Dominating
b) Interfering
c) Childish
d) Non-professional

15. -------------- means the document produced to establish ones age.

a) Affidavit
b) Proof of age
c) Certificate
d) Evidence

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

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

17. Loans under insurance policies can be repaid --------------

a) In one lump sum
b) By adjustment against claim
c) In installments
d) In any of the above ways

18. Surplus is an indication that -------------

a) Premium is high
b) Targets have been met
c) Neither of the above
d) Both of the above

19. Which of the following statements are “TRUE “?
Statement A: Insurance can be made to begin from previous year
Statement B: The policyholder loses his rights when he makes a nomination

a) Only statement A
b) Only statement B
c) Both statements are false
d) Both statements are true

20. ------------ is the person to whom the policy is transferred in lieu of some consideration received

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



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

a) Six
b) Eight
c) Seven
d) Five

22. How is the purchase price of a deferred annuity payable ?

a) In a lump sum
b) In quarterly installments
c) In annual installments
d) Any of the above

23. If the proponent feels that a particular question in the proposal form does not apply to his situation he should ------------

a) Leave it blank
b) Write “Not Applicable “
c) Cut it out
d) None of the above

24. Which of the following statements are “TRUE”?
Statement A: When a policy matures, the claim proceeds are paid to the assignee.
Statement B: In insurance, the principle of “buyer beware” applies

a) Only statement A
b) Only statement B
c) Both statements are false
d) Both statements are true

25. The agent has --------------- freedom to act on behalf of the principle.

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

26. -------------- describes the behaviour of an agent who is willing to accept that a particular customer may not need life insurance.

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

27. 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



28. Which of the following statements are “TRUE”?
Statement A: A policyholder loses his rights when he makes an assignment
Statement B: If the proposal matures, the claim proceeds are paid to the nominee

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

29. 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 proposal papers are incomplete, the agent will be held accountable.

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

30. Which of the following statements are “TRUE”?
Statement A: Old age is a risk.
Statement B: Dying too young is as much as risk as dying too late.

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

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

a) Trustee
b) Life insured
c) Beneficiaries
d) Life insured’s heirs

32. Which of the following statements are”TRUE”?
Statement A: Any two persons can take a joint life policy.
Statement B: Two business partners can take a joint life policy.

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

33. Which of the following statements are “TRUE”?
Statement A: The agent is at fault, if the policy sold does not meet the proponents needs.
Statement B: The agent is responsible to ensure that the proposed policy meets the needs of the prospects.

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



34. The attachment to a policy to indicate that the standard policy terms and conditions have been modified is called --------------

a) Clause
b) Condition
c) Rider
d) Endorsement

35. What would be the paid up value of 25 year old endowment policy Rs.50,000 taken in October 1988, if the last half-yearly premium paid was in October 2000 ?

a) Rs.26,000
b) Rs.27,000
c) Rs. 24,000
d) Rs. 25,000

36. Which of the following statements are “FALSE” ?
Statement A: Policy decisions in an insurance organization mean decision relating to issue of specific insurance policies.
Statement B: Policy decisions in an insurance organization mean decisions relating to the kind of plans of insurance to be offered to the public.

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

37. If a person is born on 4.7.1981, his age next birthday on 25.11.2000 will be -------------
a) 19
b) 21
c) 20
d) 18

38. Moral Hazard is a matter of ----------------

a) Fact
b) Opinion
c) Evidence
d) None of them

39. 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 of the statement





40. To whom can a policyholder apply in case of bad service from an insurer ?

a) IRDA
b) Consumer forum
c) Ombudsman
d) All the above

41. The single policy issued as evidence of the contract of group coverage is called ----------- policy.

a) Master
b) Overall
c) Group
d) Single

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

a) Consideration
b) Decision
c) Acceptance
d) Admission

43. Which of the following statement(s) are “TRUE” ?
Statement A: Maturity proceeds under the insurance policy are subject to capital gains tax.
Statement B: If the policy is lost, the claim will not be paid without a duplicate policy.

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

44. What is the uniqueness of life insurance as a saving plan ?

a) Tax benefits
b) Liquidity
c) Safety
d) Guaranteed fulfillment of saving plan

45. The maturity proceeds of a policy financed by HUF will be paid to the -----------

a) Karta of HUF
b) Life assured
c) Nominee
d) None of the above

46. ------------- is a document issued under the law authorizing a person to act as an insurance agent.

a) Appointment
b) License
c) Certificate
d) Mandate





47. ------------ means the process through which a product is carried to the customer.

a) Marketing
b) Distribution channel
c) Promotion
d) Sales

48. The insurer must transact at least 15% of the business in the 5th financial year in ---------- market.

a) social
b) Poorer
c) Farmers
d) Rural

49. Surplus declared in a valuation arises because of good -----------.

a) Underwriting
b) Management
c) Investment
d) all of the above

50. Which of the following statements are “TRUE”?
Statement A: Insurance is necessary to cover the risk of living too long.
Statement B: Insurance helps one to be less dependent on others.

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

51. An agent is expected to report on the proponent’s ------------ status.

a) Financial
b) Medical
c) Both
d) Neither of the statements

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

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

53. Surplus in a valuation arises because of favorable experience in -----------

a) Mortality
b) Expenses
c) Interest Yield
d) All of the above





54. Which of the following statements are “TRUE”?
Statement A: Duplicate policies are issued to enable policyholders make assignments.
Statement B: Premium under a group insurance policy is constant for all time to come.

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

55. Which of the statements are “TRUE”?
Statement A: The premium under a group insurance policy is constant for all time to come.

Statement B: Premium under a group insurance policy is recalculated every three months.

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

56. To whom should an application for agency license be given ?

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

57. If a person is born on 2.2.1979, his age last birthday on 5.11.2000 will be

a) 20
b) 23
c) 21
d) 22

58. What is the final stage in the selling process ?

a) Approach
b) Interview
c) Convincing
d) Close

59. Which of the following statements are “TRUE”?
Statement A: If there is a nomination, the claim can be paid without further legal proof of title.
Statement B: A nomination becomes invalid if an heir raises a dispute.

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 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

61. Which of the following approach (es) of the agent is appropriate?
Approach A: The agent suggested to the prospect that he signs the proposal form and that he (the agent) would get them filled up later on the basis of the information, which he was noting down.
Approach B: An agent used to tell his prospect that there was no better investment than life insurance.

a) Only approach A
b) Only approach B
c) Both the approaches
d) Neither of the approach

62. Section 45 of the insurance act is relevant for the policies which are at least ---------- years old.

a) three
b) Two
c) four
d) five

63. Which of the approaches of the agent is appropriate?
Approach A: An agent used to collect from the office details of claims which were remaining outstanding for more than a month and then meet the claimants to help them out.

Approach B: An agent used to collect from office details of claims which were remaining outstanding for more than a month and then meet the claimants to help them out on condition that they agree to take out business from them.

a) Only approach A
b) Only approach B
c) Both the approaches
d) Neither of the approach

64. Calculate premium from the following data :

SA – Rs.1,00,000
Plan-Money Back-20 yrs
Mode-half yearly
Age nearer B’day-36 yrs
Proposal accepted at ordinary rates with double accident benefit,
TP – Rs.69.25
Rebate for half yearly premium is at 1.5%
Rebate for large sum assured is Rs.2/- and Premium for double accident benefits is Re.1/- per thousand per annum.

a) Rs.3,261/-
b) Rs.3,461/-
c) Rs.3,463/-
d) Rs.3,361/-




65. Given that sum assured Rs. 1,00,000/- mode yearly-endowment policy 30 years without profits. Date of commencement 25/10/1993 first unpaid premium 25/10/2001 the paid up value will be
---------

a) Rs.25,666
b) Rs.26,667
c) Rs.30
d) Rs.25,667

66. How is the purchase price of an immediate annuity payable?

a) In installments
b) In quarterly installments
c) In annual installments
d) In lump sum

67. Which of the following statement(s) are “TRUE”?
Statement A: Fire is a peril, not a loss.
Statement B: The essence of insurance is sharing of losses.

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

68. A risk can be ---------------

a) Measured
b) Calculated
c) Assessed
d) All the above

69. What does ‘days of grace’ mean?

a) Time allowed for paying premium
b) Period during which premium is paid at discounted rate
c) Time taken to reply letters
d) Period after which only risks begins

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

a) Broker
b) Retailer
c) Agent
d) Intermediary

71. The person appointed to attend to grievances of policyholders is called --------------

a) Grievance officer
b) Complaints officer
c) Ombudsman
d) Designated officer



72. Bringing a policy, which has lapsed, back to force is called ------------

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

73. Who is the potential purchaser of a product?

a) customer
b) Client
c) Consumer
d) Prospect

74. Which of the following statement(s) 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

75. Approach A: A proponent called up the agent to know why a particular medical test was being asked by the office and the agent said that he was not aware of the same and would revert to matter the next day.

Approach B: A proponent called up the agent to know why a particular medical test was being asked by the office and the agent said that he was not aware of the same, the office always did such stupid things and then he would sort out the matters the next day.

a) Only approach A
b) Only approach B
c) Both the approaches
d) Neither of the approach

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

Approach B: An agent being friendly with the assistant in the new business department, used to keep track of the new proposals coming in and try to get additional business from the same parties.

a) Only approach A
b) Only approach B
c) Both the approaches
d) Neither of the approach


77. Approach A: When a prospect wanted to know details about various plans so that he could make a choice, the agent told him that the details were too complex for him to understand and that he (the agent) was there to give him the proper advice.

Approach B: An agent had printed a prospect’s particulars sheet and would invariably make the prospect fill up the particulars himself.

a) Only approach A
b) Only approach B
c) Both the approaches
d) Neither of the approach

78. Approach A: The agent knew about the death of the client only when he received the copy of the letter written by the office to the wife of the insured, forwarding the forms.

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

79. 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

80. 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


81. Approach A : Going through the existing policies of a prospect whom he is meeting for 1st time, the agent suggests that he should allow three of them to lapse and go in for new policies straightaway

Approach B: Going through the existing policies of a prospect whom he was meeting for the 1st time, the agent suggests that nominations be made and offered to get them registered by the office

a) Only approach A
b) Only approach B
c) Both the approaches
d) Neither of the approach



82. Approach A: An agent had advertised in the Telephone Directory that his services were available for advice on all personal financial matters, including insurance

Approach B: An agent advertised in the Telephone Directory that he specialized in Annuity policies, which he said were best for persons aged over 50

a) Only approach A
b) Only approach B
c) Both the approaches
d) Neither of the approach