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11th November 2014, 01:18 PM
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IRDA exam question papers
Will you please tell me from where I can get the question papers of the IRDA exam (License)? Give me the information soon.
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#2
11th November 2014, 02:39 PM
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Re: IRDA exam question papers
Insurance Institute of India conducts every year an all India based competitive exam for recruitment of Insurance agents and is known by the name of IRDA exam or Insurance Regulatory and Development Authority exam. For this exam basic requirement is that he or she must have cleared his class 12th from a recognized university or board. IRDA exam can be given in two modes, online and offline. If the candidate want both the general as well as life branches, he or she would have to fill two separate forms. Papers: IRDA papers 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) The route or process through which a product is carried to the customer is known as _________________ 2) Age nearer birthday as on 18/06/2000 of a person with date of birth 28/12/1961 is ________ 3) The days of grace for monthly mode of premium is ___________ days. 4) EDLI scheme is linked to the payment of ________________ (Gratuity / Provident fund / pension) Write yes or no indicate whether the following request will be allowed by the LIC or not. 5) The proposal dated 05.10.2000 for Rs.1,50,000 under table 14-18 requests that the policy be made to commence from 28.03.2000 as the date of birth of the life to be assured is 28.12.1973 . 6) Policy commenced on 01.07.1992 and lapsed because the annual premium due 01.07.1994 was not paid. Request received on 30.06.2000 for revival. 7) Father insuring his son aged 8 under the New CDA plan requests that the son’s life be covered from inception. 8) Policy paid up for Rs.4, 000 matured for payment on 30.09.2000. Policyholder reports that the policy is lost and requests that the claim be settled without advertisement and indemnity bond. 9) Policyholder requests that his Without Profit policy be made a with profits policy 10) Policyholder requests that policy issued with Annual Premium, be brought under the Salary Savings Scheme, as he has now joined a company 11) Policy commenced on 10.07.2000. A request is made on 10.09.2000 that the policy be brought under the M.W.P. Act True or False 12) A maturity claim will be paid to the nominee. 13) The amount of bonus that vests is the same for all policies issued by the L.I.C. 14) Living too long is a risk. 15) An annuity is the same as a pension. 16) A son has no insurable interest in the father. 17) A sub-standard life is a person below the poverty line 18) An agent is not authorized to collect renewal premium. 19) An agent’s role is over after the policy is issued. 20) The maximum age entry is the same for all plans of insurance. 21) Extra premium is charged for moral hazard. 22) A lady clerk in a bank will be considered for insurance on the same terms as male lives 23) In an Immediate Annuity policy the annuity payment begins within the first year of the policy. 24) The proposal form should be written by the agent himself. In respect of each of the words in column ‘A’ finds corresponding word in column ‘B’ Column ‘A’ Column ‘B’ 25) Actuary Death _____________ 26) Annuity Department _____________ 27) Assignment Pension _____________ 28) Communication Persuasion _____________ 29) Insurance Premiums _____________ 30) Mortality Pure Risk _____________ 31) Motivation Recognition _____________ 32) Organisation Sharing _____________ 33) Term Assurance Surplus _____________ 34) Valuation Transfer ___________ State whether the actions on the part of the agent in the following situations are right or wrong. 35) To a query from the prospect about the tax advantages in the proposed policy, the agent replies, “why do you bother? You just tell me how much money you can and I will work out the best policy for you. 36) Going through the existing polices of a prospect whom he is meeting for the first time, the agent suggests that he should allow three of them to lapse and go in for new policies straight away. 37) A proponent called up agent to know why a particular medical test was being asked by the office and the agent said he was not aware of the same and would revert to the matter the next day. 38) The agent was surprised to receive the copy of the letter written by the office to the wife of the insured, forwarding the forms to make a death claim. 39) Going through the existing polices of a prospect whom he is meeting for the first time, the agent suggests that nominations be made and offers to get them registered by the office. 40) The agent had left his identity card at home, when he was visiting a prospect. 41) An agent insists that all his policyholders should send the premium cheques to him, so that he can ensure that delay’s do not happen through oversight. 42) An agent tells a prospect, who is raising an objection, “why don’t you wrong. Understand this simple basic thing?” 43) When a policyholder complained that nobody in the insurance office was answering the telephone, the agent said that the office was in a mess and that the Managers were quite incompetent. 44) An agent being friendly with the assistant in the new business department, used to keep track of the new proposals and try to get business from the same parties. 45) Agency license is valid for a period of a) 1 yrs b) 2 yrs c) 5 yrs d) 3 yrs 46) The body constituted to receive and resolve grievances against an insurer is?____________ 47) An insurance broker is a) Representative of the state b) Representative of the client c) Representative of the insurer 48) Who shall conduct tests for licensing agents? a) IRDA b) NSE c) III d) LIC 49) When does an insurance policy lapse? a) Stopping of bonuses b) Assured is declared dead c) Insurable interest of proposer ceases to exist d) Stopping of periodical payments e) Any of the above 50) When does a policy acquire paid up value?---------------.after 3 full year premiums payment 51) An assignment usually affected for valuable consideration is called:__________________ _________________ 52) A policy can be surrendered, provided the policy is kept in force at least for a period of: ______________. 53) Which of the following policy is not eligible for loan? a) Whole life - participating b) Endowment c) Money back d) Whole life – non participating 54) What is the basis of contract between the policyholder and the insurer? a) The Insurance act b) The IRDA act c) The Contract act d) The Proposal Form 55) The cash value payable by LIC on termination of the policy contract at the desire of the policyholder but before the expiry term is known as : __________________ __________________________. 56) Back Dating is an option to the life assurer to get the advantage of lower age wherein the policy is commenced from a date earlier than the date of signing of proposal form. However back dating is limited to one year. True/False 57) What is the discount offered in case of Annual premium ------------------ 3% Semi annual ------------------ 1.5% 58) If FPR is submitted along with application the risk would be covered -True / False 59) Under the insurance act 1938, insurance against sickness and medical treatment is NOT part of life insurance business, it gets covered under miscellaneous business, which is part of general insurance business. (T/F) 60) In many other countries health insurance is considered as part of the life insurance business. (T/F) State True or False 61) An agent must be of 21 years of age at least. 62) An agent can sell policies even without a license. 63) IRDA issues license to an agent. 64) 100 hours of training is a prerequisite for appearing in the recruitment examination. 65) An agents’ license is valid for 5years. 1. Life insurance plans are combinations of two basic plans, viz. a) Term Assurance, Pure Endowment b) Term Assurance, Whole Life c) Pure Endowment, Whole Life d) Whole Life, Money Back 2. Insurance is normally bought for : a) Tax Benefit b) Death c) Maturity Benefits d) Death & Old Age 3. RBP stands for a) Reserve Bank Policy b) Retirement Benefit Plan c) Regular Business Policy d) Retirement Based Policy 4. A) The sum assured under group insurance is not fixed by the individual member. B) A person whose proposal is declined under individual scheme can get insurance under group policy. a) Statement A is correct b) Statement B is correct c) Both statements are correct d) None of the above 5. Terminal Bonus is not paid in case of: a) Surrendered Policies b) Discounted policies c) Paid-up policies d) All of the above 6. A) Annuities are called the reverse of life insurance B) In annuity contract insurer stops paying on the death of the annuitant a) Statement A is correct b) Statement B is correct c) Both are correct d) Both are incorrect 7. A) In Joint Life policies each life has to be underwritten separately. B) A joint life declaration is not necessary to create a joint interest in the policy. a) Statement A is incorrect b) Statement B is correct c) Statement A is correct but B is incorrect d) None of the above 8. A) Medical examination of annuitants is necessary B) Annuities cover the risk of living too long a) Statement A is correct b) Statement B is correct c) Both the statements are correct d) Both the statements are incorrect. 9. The lapse of selected period in case of Deferred annuities is called: a) Vesting period b) Free look period c) Deferment period d) Term 10. The annuity can be paid for: a) 15, 20, 25 years b) 5,10,15 years c) 20,25, 30, 35, 40 years d) 5,10,15,20,25 years 11. In case of immediate annuity annuitant can get annuity a) Monthly b) Quarterly c) Half-Yearly d) Yearly e) All of the above 12. A) Women with unearned income can be insured B) Women in purdah can be insured a) Only statement A is correct b) Only statement B is correct c) Both statements are correct d) Both statements are wrong 13. A) Physically handicapped persons are not insured B) Partially handicapped persons are mostly accepted without extra Premium. a) Statement A is correct b) Statement B is correct c) Both statements are correct d) Both statements are wrong 14. Most of the children insurance plans are of the kind of: a) Limited term b) Participatory c) Convertible d) Deferred Insurance 15. A) Annuities can be immediate or deferred B) Annuities can be offered as joint life annuity a) Statement A is correct b) Statement B is correct c) Both statements are correct d) None of the above 16. Which of the following statements are TRUE a) A father can take a policy on the life of his son who is 12 years old. b) One can take a policy on the life of a friend to whom he has lent money. 17. Which information, if not disclosed, can nullify the policy? a) Valid b) Material c) Critical d) Important 18. Which kind policies are not entitled bonuses? a) Non participatory b) Money back c) Children’s d) Whole life 19. Which of the following statements are True: A. The premium paid by each policyholder is separately accumulated in his account B. Underwriting ensures that the exposure to risk is properly assessed. a) Statement A b) Statement B c) Both Statements d) Neither of Statement 20. The bonus which attaches to the policy immediately on declaration is called ___________ bonus a) Immediate b) Reversionary c) Technical d) Final 21. Which of the following statements are True: A. Policy decision in an organization means decision relating to issue of insurance policy in a specific case. B. Policy decision in an organization means decision relating to the kind of plans of insurance to be offered to the public a) Statement A b) Statement B c) Both Statements d) Neither of Statement 22. A policy which has run for 8 years can be called into question if there is a__________________ a) Fraud b) Misrepresentation c) Mistake d) (None of above) 23. The insurable interest of a mortgagor in the mortgage’s life is equal to the amount of a) Original loan b) Outstanding loan plus interest c) Outstanding loan d) Installment due to be repaid within the next one year 24. If the proponent has no insurable interest in the insured the underwriter will a) Accept with reduce sum assured b) Reject the proposal c) Accept with lien d) Accept with extra premium 25. 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) Statement A b) Statement B c) Both Statements d) Neither of the Statement 26. __________ is the process of deciding on the proposal for insurance a) Decision b) Underwriting c) Consideration d) Acceptance 27. Reverse of L.I a) Loan b) S.V. c) Annuity d) None of above 28. Insured is 54 kg. wt is presented as 34 kg. a) Misrepresentation b) Fraud c) Both d) Neither of above 29. What is PLI? State True or false 30. Brothers have insurable interest in each other. 31. Policy document is contract of insurance. 32. Insurance protects assets. 33. We insure only tangible assets. 34. Insurer invests money in speculative market. 35. Insurable interest need not be insisted upon after contract is completed. 36. Facts, which reduce the risk, must also be disclosed in insurable proposed. 37. Insurable interest is defined in the insurance Act. 38. Creditors have insurable interest in the Debtors. 39. Proposal forms in insurance are the basis of contract. Give full form of 40. LALGI 41. PLI 42. IRDA 43. MWPA 44. D.O.B 45. HLV 46. FPR 47. SSS 48. LICI 49. The actuarial aspects, which are taken into account while fixing the premium. I. Mortality II. Interest Assumption III. Office Expenses • Only I • Only II and I • Only I , II and III • Only II and III 50. Commercial Contracts are normally subject to principle of utmost good faith. (T/F) 51. The premium paid by each person is determined on the assumption that while it may not be possible beforehand to tell how many persons will suffer but it is possible to tell who will suffer. (T/F) 1) The principle to be followed by both the parties in an insurance contract, with reference to disclosure of all the relevant facts, is known as -------------------------------------------------------. 2) The life insurance scheme, which allows an employer to insure the lives of important employees in the organization, in order to cover the risk arising out of their premature death is known as ---------------------------------------------------------. 3) The Insurance Act was passed in the year a) 1928 b) 1938 c) 1939 d) 1942 4) In life insurance, the ___________ is authorized to collect the claim amount after the death of the policyholder. 5) How is, the person appointed by the Government to settle disputes between the insurers and the insured, better known as? __________________ 6) Assignment usually effected for consideration of natural love and affection is: __________ . 7) A process whereby the beneficial interest, right and title under a policy gets transferred is called __________ . 8) Fill in the blanks. a. To sell insurance an agent must understand the prospect’s insurance ______. b. An agent has to ensure that without a lapse, the new policy issued should continue till it becomes a __________. c. The ______________ is also accompanied by the agent’s _____________ report. d. In nomination the policyholder ____________ all rights under the policy. e. The two types of assignments are _________________ and ________________. f. A lapsed policy can be revived in _______ ways. g. The __________ should help the prospect in revival process. h. Maturity claim can be done after filling up the _______________ voucher. i. Indemnity bond is executed by the policy holder in case the policy is ___________ or _____________. 9) The capability to function as an agent would be measured partly by the business that is done and the commission that is earned.(T/F) 10) An agent’s reputation must be such in the market that will help him to collect more references from his policyholders.(T/F) 11) Product knowledge ends with knowing the broad terms and conditions of the policy and the extent of cover.(T/F) 12) Good product knowledge will help one to be aware of the possible drawbacks in the policy, the tax implications, the fit with the client's need, the extent to which the client has to take precautions so that the benefits may not be lost.(T/F) 13) An agent is a professional and a businessman.(T/F) 14) An agent is both a professional and a businessman and there is no conflict between the two.(T/F) 15) An agent's revenue is in the nature of commission on premium. (T/F) 16) Professional agents must set aside both funds as well as time for their personal growth.(T/F) 17) Salesmanship is different from management.(T/F) 18) For an insurance agent the whole world is a potential market. (T/F) 19) The segment in which an agent operates is called his target market / segment. An agent must have only one target market. (T/F) 20) An agent sells himself before he sells his product.(T/F) 21) An agent is a self-motivated individual. All his actions are goal oriented. (T/F) 22) Morale implies that the behavior of the agent has to be one that exudes confidence and positive thoughts about the company and its offerings. This is possible only if the agent feels good about his profession and business. (T/F) 23) Communication is normally understood to refer to the information that one has to send to another, through words or symbols or pictures, in writing or verbally.(T/F) 24) The seven C's of communication are completeness, courtesy, consideration, clarity, conciseness, concreteness, and correctness. (T/F) 25) In insurance selling is more through use of persuasive skills than counseling skills. (T/F) 26) An agent must be able to analyze the various needs of the prospect and find the best plan to meet those needs. An agent can also make assumptions.(T/F) 27) An agent is bound under the terms and conditions of the appointment letter given to him by the insurer under the Licensing of Insurance agent's regulations 2000.(T/F) 28) Non-compliance of the provisions of this regulation may lead to termination of the agency license.(T/F) Fill in the blanks using only one of the alternatives provided in bracket. 29) The definition of Rural area is where the total population is (over 5000/ over 10,000 / less than 5000) 30) Term Insurance product is useful for ________________________________ (providing for old age / for Children/cover in case of mortgage loans/ getting payments at regular intervals). 31) Age nearer to birthday as on 20.5.2000 of a person with date of birth 13.7.1974 is years (25/26/27). 32) The terminal bonus is paid to those policies which become claim after completing years as in force policies (10/15/20). 33) If a person is born on 15.03.1975 his age last birthday as on 12.03.2001 will be i) 23 yrs ii) 24 yrs iii) 25 yrs iv) 26 yrs 34) In mortgage redemption policies the sum assured will be paid a) At the end of the term b) ON death within the term c) Both of the above d) On default of the payments 35) Non forfeiture clause refers to a) Option to keep the policy running when it is about to lapse due to non payment of premiums b) Whatever the condition the premiums paid by the policy holder cannot be forfeited c) When the policy holder does not return the loan taken on a policy the policy is forfeited by the insurer d) In case of a moral hazard the sum assured is forfeited by the insurer 36) Statement A: An individual can take a Key man insurance on his own life Statement B: A husband is a Key man to his wife a) Only statement A is true b) Only statement B is true c) Both A & B are false d) Both A & B are true 37) Statement A: Agents are usually attached to branches of insurance offices Statement B: A department in an office is where some specialized type of work is carried out a) Only statement A is true b) Only statement B is true c) Both A & B are true d) Both A & B are false 38) The maximum limit for payment of commission prescribed for 2nd and 3rd year renewal premiums is fixed as per insurance act 1938 as a) 35% b) 40% c) 5% d) 7.5% 39) Three fundamentals of sound investment are : ____________, ____________, ________ , 40) The insurer makes guaranteed additions @ 7% of the S.A. for each completed policy year, for which premiums are paid, and these will payable at the end of the term of the policy or earlier death of the policyholder A. The insurer also puts an x amount as loyalty addition, if premium has been paid for 5 years. A has taken the policy for 15 years for Rs. 1,00,000 S.A. He has been paying his premiums regularly. How much would he get if he died after 4 years of taking the policy? How much would he get on maturity of the policy? 41) Mr. X buys a policy for Rs3, 00,000 S.A. at age 35 and pays a single premium. He dies at the age of 45 in a road accident. His wife gets RS. 3,00,000/- as death benefit. How much tax will she have to pay on this amount? 42) Life assured aged 35, for a policy of Rs.30000/- sum assured under Money Back policy for a term of 20 years. DAB & EPDB are not required. Tabular premium per thousand is given as Rs.68.70. If the policy is under Salary Saving Scheme what would be the monthly premium? 43) A. Calculate the half-yearly premium for a with-profit endowment assurance of Rs.30000/- for a term of 30 years issued to a scheduled commercial airline pilot aged 25 without D.A.B. & E.P.D.B. The occupation extra in this case is 12PER THOUSAND for 10 years. ANSWER 654 B. What will be the half-yearly instalment payable after 10 years, given that the tabular premium for 1000 S.A. is Rs.33.10? 44) Calculate the quarterly instalment premium under a whole life policy for Rs.50000/- sum assured, issued to a life whose age nearer birthday at entry is 45, with premium paying term limited to 25 years. D.A.B. (Double Accident Benefit) & E.P.D.B. (Extended Permanent Disability Benefit) benefit is allowed. Tabular premium is given as Rs.48.10 and D.A.B., E.P.D.B. as Rs.50. 45) Age 25 years, Term 26 years, Sum Assured Rs.200000/-, Mode half yearly. Calculate the instalment premium. Table premium is 40.25. 46) Calculate claim payable: Date of Death : 27 Nov 2000 Date of commencement: 13 Dec 1989 Sum Assured: 30,000 L. P. P. : 13/12/1999 Bonus: 3/85-3/99 600 per thousand, 3/2000 is 60 Half yearly premium of 400 47) The drive or urged to do something to achieve at end is called ________ a. willingness b. motivation c. need d. power 48) ____________ are statements made by the prospect raising doubts about the usefulness of the Insurance. (a) Refusals (b) Objections (c) Queries (d) Disagreement 49) _________ is helping the policy holder to make sure that the policy will not fail at the critical moment. (a) Sales (b) Service (c) Advice (d) Promise. 50) Describe the behavior of an Agent who exchanges experiences with other agents. (a) curious (b) Probing (c) Non Professional (d) Professional 51) An officer of insurance company authorized by IRDA to issue agency license is called a. Designated person b. Authorized person 52) A. The insured mentioned to the agent adviser while filling up the proposal form that some six years back white fluid had discharged from his right ear, but it stopped after that. The agent does not mention it in his report because it is not relevant now. B.The agent confirms from the insurer about the present situation and since it is ok, he does not mention in his report. a) Only A is true b) Only B is true c) Both are true d) Both are false 1. When do the non-forfeiture provisions apply? a) When policy is surrendered b) When loan is taken c) When premium is not paid d) All of the above 2. 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 statements 3. The insurer must insure at least 20,000 lives in the fifth financial year in _____________market a) Poorer b) farmers c) Social d) rural 4. The person who takes the decision to grant insurance is called _____________ a) Underwriter b) salesman c) Manager d) officer 5. What type of skill is required to understand the needs of the prospect and find the most suitable plan for him? a) persuasive b) communication c) convincing d) analytical 6. If the claim in question is Rs. 23 lakh, which consumer court will hear the application? a) State level b) national level c) District level d) none of the above 7. Which of the following statements are ‘True’? Statement A: An insurance agent can be sued under the 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 statements 8. ___________________describes the behaviour of an agent, who in the presence of outsiders, covers up the mistakes made by his colleagues a) Arrogant b) professional c) Protective d) self-confident 9. Which of the following statements are true? Statement A: Insurance claims are shared by the community of policyholders Statement B: In insurance, every policyholder contributes to the losses incurred by others a) Only statement A b) Only statement B c) Both statements d) Neither of the statements 10. How is an annuity paid by the ‘insurer’? a) In annual installment b) In installments c) In quarterly installments d) in a lump sum 11. 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 a policy on her husband a) Only statement A b) Only statement B c) Both statements d) neither of the statements 12. Doctors appointed by insurers will be qualified in _______________ medicine a) Allopathic b) ayurvedic b) homeopathic d) all of the above 13. The agent who does not take the trouble to update his knowledge is ___________ a) Ignorant b) Non-professional c) Professional d) Outdated 14. When a person answers ‘Yes’ to the question in the proposal about being on leave for more than a week, but does not mention that he had been on leave on medical grounds, that is _____________________ a) Misrepresentation b) non-disclosure c) Fraud d) none of the above 15. A person’s insurable interest in his own life is ___________________ a) Unlimited b) 10 times his salary c) Equal to his assets d) obligations for family 16. Which of the following statements are ‘True’? Statement A: A life insurance agent can work for two insurance companies at the same time Statement B: An agency license is issued only when sponsored by an insurance company a) Only statement A b) Only statement B c) Both statements d) neither of the statements 17. ______________means the list of names whom an agent would try to meet to procure life insurance a) Clients b) Proponents c) Proposers d) Prospects 18. Which of the following statements are ‘True’? Statement A: Incase of corporate agents, the entire business may be from one company only Statement B: A person can qualify to obtain a license if he studies the course at home and passes the prescribed examination a) Only statement A b) Only statement B c) Both statements d) Neither of the statements 19. A duplicate policy may be issued, when the original has been _____________ a) burnt b) stolen c) mutilated d) all of the above 20. Which of these policies do not cover the risk of death? a) Endowment b) Whole Life c) Term d) pure endowment 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 up by the proponent himself, unless he is illiterate a) Only statement A b) Only statement B c) Both statements d) neither of the statements 22. 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 23. Which of the following statements are ‘True’? Statement A: Every insurance company must follow a four tiered structure like the government companies Statement B: The regional/divisional/branch office set up is unavoidable for insurers a) Only statement A b) Only statement B c) Both statements d) neither of the statements 24. An underwriter _____________________ a) Calculates premium b) issues the policy c) Assesses the risk d) does all the above 25. Infirmities are caused by __________________ a) Sickness b) old age c) Loss of limb d) all of the above 26. When original policy is lost, a duplicate policy is necessary for _______________ a) getting the claim b) taking a loan c) Paying the premium d) all of the above 27. The agent who tries to canvass insurance business by offering temptations of sharing the commission is _______________ a) Professional b) non-professional c) Incompetent d) corrupt 28. The drive or urge to do something to achieve an end is called ____________ a) Willingness b) motivation c) Need d) power 29. Which of the following statement(s) are ‘True’? Statement A: Life insurance policies are unavailable through the Unit Trust of India also Statement B: In a joint life policy, death claim is payable only when both the insured die a) Only statement A b) Only statement B c) Both statements d) neither of the statements 30. The agent’s report to the insurer should include _________________facts a) Favorable b) unfavorable c) Neither of the above d) both of the above 31. A claim payable after the life insured has survived the term of the policy is called ________________ a) Survival b) maturity c) Terminal d) death 32. If the proponent has no insurable interest in the insured, the underwriter will ________________________ a) Accept with reduced sum assured b) accept with extra premium c) Reject the proposal d) accept with lien 33. When does foreclosure action begin? a) When premium is not paid b) when policy is surrendered c) When loan an interest accumulate d) all of the above |
#3
11th November 2014, 02:40 PM
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Re: IRDA exam question papers
34. __________________ means the market which an agent chooses to operate a) Target b) section c) Area d) segment 35. The person appointed to attend to grievances of policyholders is called _________________ a) Designated officer b) grievance officer c) Ombudsman d) complaints officer 36. _________________means the process through which a product is carried to the customer a) Distribution Channel b) Promotion c) Sales d) Marketing 37. The nominee under a policy informs the insurer that the life insured is missing for the last seven years and requests that the claim under the policy be admitted and paid. What should the insurer do? a) Ask for an affidavit b) Ask for a court order c) Make independent enquiries d) pay the claim 38. Which of the following statement(s) 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 d) neither of the statement 39. In what plan of insurance the medical examination is never required, whatever be the amount of sum assured? a) Endowment b) term assurance c) Annuity d) group insurance 40. Which of the following statements are ‘True’? Statement A: An agent must find out the income of the proponent and report the same to the insurer Statement B: The income of the proponent must be made known to the insurer a) Only statement A b) Only statement B c) Both statements d) neither of the statements 41. Which of the following statement(s) are true? Statement A: Accident benefit cover is issued as a separate policy in life insurance Statement B: Accident benefit cover is rider in a life insurance policy a) Only statement A b) only statement B c) Both statements d) neither of the statements 42. When a person weighing 95 kg states in the proposal that his weight is 54 kgs, that is ____________ a) Misrepresentation b) non –disclosure c) Fraud d) None of the above 43. The limits of doctors for medical examination are decided by ___________________ a) Government b) Medical council c) Insurer d) IRDA 44. Which of the following statements are true? Statement A: A father can take a policy on the life of his son who is 12 years old Statement B: One can take a policy on the life of a friend to whom he has lent money a) Only statement A b) only statement B c) Both statements d) neither of the statements 45. Surplus in a valuation arises because of favorable experience in ______________ a) Mortality b) expenses c) Interest yield d) all of the above 46. Which of the following statements are true? Statement A: Sick people may be considered for grant of insurance on special terms Statement B: Insurance cover begins as soon as the premium is received in the office along with the proposal a) only statement A b) only statement B c) Both statements d) neither of the statements 47. 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 statements 48. A policy which participates in the distribution of surplus is called a _____________policy a) Profitable b) participating c) Loss making d) non-profit 49. ___________________is the professional who is the technical expert on life insurance matters a) Accountant b) underwriter c) Actuary d) evaluator 50. What is the criterion of a good savings plan? a) Safety b) liquidity c) Yield d) all of the above 51. The questions in the proposal form and personal statement are _______________ material and relevant a) Without exception b) mostly c) Only partly d) rarely 52. A proposal is dated 10.11.2000. 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. The life insured died in an air crash on 19.11.2000. Is the claim payable? a) No b) Yes c) Depends on discretion of the insurer d) only if directed by IRDA 53. The process of recording the correct age of the person insured is called ________________ a) Certification b) age admission c) Proof of age d) verification 54. _________________is a document issued under the law authorizing a person to act as an insurance agent a) Certificate b) mandate c) License d) appointment 55. 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) 20.11.2000 b) 15.11.2000 c) 10.11.2000 d) 17.11.2000 56. An agent is concerned with the ________________________ a) IRDA act b) insurance act c) Contract act d) all of the above 57. Which of the following statements 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 statements 58. The fees for renewal of license is Rs. _________________ if applied for less than 30 days before the date of expiry a) 300 b) 100 c) 250 d) 350 59. Surplus is an indication that ______________________ a) premium is high b) targets have been met c) Neither of the above d) both of the above 60. The principal is responsible for ______________ of the acts of the agents a) none of the acts of agents b) all the acts of agents d) some of the acts of agents d) specified acts of agents on behalf of principal 61. Which of the following statements are true? Statement A: The agent is at fault, if the policy is sold does not meet the proponent’s 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 statements 62. Which information if not disclosed can nullify the policy? a) Material b) valid c) Critical d) important 63. Disability is related to ________________________ a) Sickness b) accident c) Loss of limbs d) all of the above 64. Term assurance is suitable for _________________ a) Repaying outstanding loans b) meeting marriage expenses c) Meeting educational expenses d) all of the above 65. What is paid by the insurer when the policy holder decides to discontinue the policy? a) Intermediate claim b) Lapse c) Forfeiture d) Surrender Value 66. Which of the following statement (s) are true? Statement A: An Agents function includes obtaining nominations on the policy. Statement B: It is an Agents duty to ensure that nominations are changed as and when necessary. a) Only Statement A b) Only statement B c) Both the statements d) neither of the statements 67. The behavior of an agent who tells his client that the advice given by another agent is wrong is___________ a) Dominating b) Childish c) Interfering d) Non –Professional 68. Which of the following statement(s) are true ? Statement A: The amount of the Sum Assured may depend on the income of the proponent. Statement B: Under insurance is as bad a over insurance a) Only statement A b) Only statement B c) Both statements d) neither of the statements 69. Which of the approaches of the agents is appropriate? Approach A: When the prospect said that he had taken sick leave for few days because he wanted to go out station 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 the death of one of his brothers 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 approaches 70. Which of the Approaches of the agent is appropriate? Approach A: When a prospect wanted to know details about the various plans so that he could make a choice, the agent told him that the details were to 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 invariable make the prospect fill up the particulars himself a) Only approach A b) Only approach B c) Both the approaches d) neither of the approaches 71. Which of the approaches of the agent is appropriate? Approach A: When a prospect mentioned that he had some discharge from his ear some years ago, the agent suggested that he need not mention it. Approach B: When a prospect mentioned that he had some discharge from his ear some years ago, the agent suggested that he should write it in the personal statement and leave it to the medical examiner to comment about it. a) Only approach A b) Only approach B c) Both the approaches d) neither of the approaches 72. 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 the 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 new business from him a) Only approach A b) Only approach B c) Both the approaches d) neither of the approaches 73. Which of the approaches of the agent is appropriate? Approach A: The agent had left his identity card at home when he was visiting a prospect Approach B: When a prospect whom the agent was meeting for the first time on being referred to by a common friend wanted the agent to show his license the agent refused saying that the request was an insult to the common friend a) Only approach A b) Only approach B c) Both the approaches d) Neither of the approaches 74. Which of the approaches of the agent is appropriate? Approach A: In the case of a prospect who was not familiar with English, the agent got a relative to record the answers after explaining to the prospect every question in Gujarati and obtaining his response Approach B: In a proposal form printed in English a prospect had written the answers in Tamil, declaring above his signature that the agent had explained the questions clearly a) Only approach A b) Only approach B c) Both the approaches d) Neither of the approaches 75. Which of the approaches of the agent is appropriate? Approach A: The agent has a habit of beginning by saying that he is the agent of such and such company and produces the identity card for the prospects perusal Approach B: Soon after formally saying who he is, an agent spreads on the table in front of the prospect, his identity cards, license and paper in which he would write down the relevant particulars of the prospect a) Only approach A b) Only approach B c) Both the approaches d) neither of the approaches 76. Which of the approaches of the agent is appropriate? Approach A: The agent suggested to the prospect that he signs the proposal form and that (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 prospects 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 approaches 77. Which of the approaches of the agent is appropriate? 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 was a confidential matter a) Only approach A b) Only approach B c) Both the approaches d) neither of the approaches 78. Which of the approaches of the agent is appropriate? Approach A: An agent had advertised in the telephone directory, that he was in a position to get anybody the life insurance cover of his choice Approach B: An agent had advertised in the telephone directory that he represented such and such company and that it ‘was the best in the country’ a) Only approach A b) Only approach B c) Both the approaches d) neither of the approaches 79. Calculate premium from the following data : Sum assured : Rs. 1,00,000 Plan : Money back – 20 years Mode : Half yearly Age nearer birthday : 36 years Proposal accepted at ordinary rates with double accident benefit Tabular premium : Rs. 69.25 Rebate for half yearly premium is at: 1.5 % Rebate for large sum assured is: Rs. 2 Premium for double accident benefit is: Rs. 1 per thousand per annum a) Rs. 3461 b) Rs. 3463 c) Rs. 3261 d) Rs. 3361 80. Given that sum assured Rs. 1,00,000 mode – yearly – endowment policy 30 years without profit. Date of commencement 25.10.93 first unpaid premium 25.10.01 the paid up value will be __________ a) Rs. 30,000 b) Rs. 25,666 c) Rs. 26,667 d) Rs 25,667 |
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