IRDA LIC Advisory Exam last year papers

Please provide me question paper for LIC Advisory Exam of Insurance Regulatory and Development Authority ?

[Arun Vats]

Here I am giving you question paper for LIC Advisory Exam of Insurance Regulatory and Development Authority ..........

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


(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.