IRDA IC 33 MODEL TEST 4- ENGLISH

1) Objectives of Fact findings are

Analysing client cash flows
Both

Provide for anticipated changes

None of the above

2) What is the most important need every parents would want to give top priority to
Investment towards their childrens future
Investment towards their travel
expenses
Provision for good clothes for the child
Provision for good food for the
child
3) Insurance companies normally permit the individual to make withdrawals ofup to.. of
the accumulated fund
Two third
One fifth
One third
Half
4) Investment in gold provides
Regular income
Capital growth
5) plan can provide regular income
Medical
Term

Mixture of the two

Pension

None of the above

All the above

6) An underwriter is responsible for

The classification of the risks presented to them
Analysis of the risks presented
to them
Selected of the risks presented to them
All of the above
7) ___________ is necessary to create a valid insurance contract
Insurable interest
Relationship
Involvement

All Above

8) Manish is a sales executive working for a private company has to travel continuously for
days,
without the following risks
Unemployment
Living too long
None of the above
All Above
9). recommended to clients by insurance agents with the purpose of withdrawing
invested funds and reinvesting them in a new insurance plan launched by the company.
Underselling
Overselling
Churning
Reinsurance
10)_______ are the face of the insurance company to its policyholder
Underwriters
IRDA
Actuary
Insurance agent
11)Insurance Regulatory and Development Authority (IRDA) was constituted as an
autonomous body as per ______ committee report
Patel
Malhotra
Shrikrishna
Hegde

12)Section ________ of insurance act 1938 prohibits insurance agent from offering any
rebate as on inducement to continue policy
40(1)
41(1)
41(3)
41(2)

13)The insurance company promises topay specified amount after specified intervals,
if the client survives, called
Foreclosure
Survival Benefit
Maturity
Surrender
14)As per Insurance act, an agent can receive maximum of ______% as first years
premium
25
30
35
40
15)Sanjay, 35 years and works for a multinational corporation (MNC) want to take life
insurance for own risk cover. So he needs to take
Health Policy
Pension Policy
Term Assurance
None of the above
16)The higher the number of policy lapses, surrenders and returns of policies during the
.. the higher will be the doubts raised about the ethical practices followed by an
insurance company and its agents
Policy term
One year from issue of policy
Proposal stage
Free look-in period
17)Revival of lapsed policies is complaints registered under
Policy servicing related
Claim related
Agency related
Policy lapse related
18)The Institute of Actuaries of India was formed in _______
1943
1944
1945

1946

19)The Life Insurance Corporation Act 1956 was passed on ________

19th June 1956
18th June 1956
17th June 1956
16th June 1956

20)In case of conditional assignment, the maturity claim payment will be made to
Nominee
Life assured
Legal heir
Assignee
21)The clients decision to act differently from the agents recommendations may
Emerge at
Presentation
Filling proposal form
Paying premium
Undergoing medical
22)A fact finding form is divided into following sections
Financial planning objectives and considerations
Future changes
Both
None of the above

23) Young married with no children- Single income family couple needs to
Protect individual at low

Protect their income

Needs life protection with future income

Protect retirement life

24) ______________ provides cover to a group of people

Health Insurance
Group Health Insurance
Family Floater Health Insurance
Money Back
25) They are an instrument where an individual has to invest a lump sum amount with a bank
for a fixed tenure at a fixed interest rate
Bank deposit
Fixed deposit
Term deposit
All the three
26) . benefit is paid after the life insured survives through the term of the policy
Maturity
Death cover
Surrender
All of the above
27) Why has the intention of the proposer has to be analysed carefully
To decide whether to accept or decline the proposal
To give him a rebate in premium
To issue him policy at the earliest
None of the above
28) A surety has insurable interest in the life of
The principal debtor
The co-surety

Both

None of the above

29) Insurance cannot prevent the __________ from happening

Event
Peril
Hazard
None of the above
30) ____________________ cannot prevent the insured event from happening
I.R.D.A.
Agent
Insurance
None of the above
31) The act which gave the Government effective control over the activities of Insurers.
The Indian Life Assurance Companies Act 1912
The British Insurance 1870
The Indian Insurance Companies Act 1928
The Insurance Act 1938
32) Level of risk is determined by
The probability of the occurrence of a certain event
The extent of losses suffered due to occurrence of that event
Both
None of the above

33) The signing of declaration on proposal form means

The insurance company can cancel the contract and keep the premiums if it finds out
that any of the information provided is not true
By stating that they have understood the questions, they cannot claim that they were
given wrong information or mislead in any way, if a dispute happens in the future.
Both
None of the above
33) When does the proposers name and address also need to be entered on the proposal form
When the proposer and life assured and staying at different locations
When the life assured is not related to the proposer
Where the proposer and life assured are different individuals
None of the above
34) What information should the agents report contain
Analysis on the proposer with regrd to their lifestyle, habits and hobbies
Previous policy details
Telephone no. of the proposer
None of the above
35) Why is a complete medical check-up on the proposer called by the insurance company
from a certified doctor
the underwriter wants more information on the risk before agreeing to accept it
It may the policy of the insurer to ask for a medical examination report on all
proposed risks of
a certain type
To reduce the chances of adverse selection by the company
All of the above
36) Why is the insurance agent in a good position to judge the risk profile fo the proposer
The agent has the opportunity to assess the answers of the propser
The insurance agent interacts directly with the proposer
The agent can determine their truthfulness
All of the above
37) The Information for the Agents Report is collected through
Insruance office employees
Family, friends and neighbours of the propeser
Family, friends and neighbours of the agent
None of the above
38) Under which section of the Income Tax Act can an individual get a deduction from
taxable income for the
80C
80D
80DD
80F

39) Mr. Vijay took policy by paying Rs.10 lacs in lump sum annuity starts immediately after
one month
i.e. he took
Money back policy
Immediate Annuity policy
Deferred Annuity Policy
Endowment policy
40) Mr. Samir took policy by paying Rs.10 Lacs in lump sum annuity stars after 20 yrs. i.e.
he took
Money back policy
Immediate Annuity policy
Deferred Annuity Policy
Endowment policy
41) Which of the following cannot be termed as a clients need for insurance
Provide sufficient funds for dependants in case of the premature death of the family
income provider
Save funds for retirement
Build a contingency fund to take care of any emergencies tht may arise
Build a contingency fund to take care of any emergencies that may arise

42) The main task of agent is

Identifying the amount for the needs of client
Identifying clients affordable contribution
Evaluating reviewing the performance
All above
43) After fact finding, analysis is required to include
Does client have sufficient insurance cover
Does client have sufficient fund to manage in case of unemployment
Does client have sufficient retirement provision
All above
44) Product short listing process includes
Set out each identified need in priority order
Research information necessary to prepare a unified financial recommendation
Carry out calculation(s) of amount(s) yet to be provided for
All above
45)The circumstances where policy surrender can be recommended are as follows
Where clients have been took policies that donot match their needs
Where clients are holding products that are not good value
When clients are facing financial difficulties
All Above

46)A life insurance contract entered into with person who is not sound mind at the time
of entering into the contract, will not be valid as the person is not a state of mind to
understand the contracts terms and conditions. This is example of void contracts as
Mistake
Unlawful circumstances
Lack of Insurable interest
Non disclosure
47)_________ prohibit resident Indians from taking out life/general insurance policies
issued by an insurer outside India.
Foreign Exchange Management Regulations 2000
Foreign Exchange Management Regulations 2001
Foreign Exchange Management Regulations 2002
Foreign Exchange Management Regulations 2003

48)Insurnace Agent qualification is mentioned in regulation ______ of IRDA (Licensing of

Insurance Agents) Regulations 2000
1
2
3
4

49)The Ombudsmans powers are restricted to insurance contracts of value not exceeding
______
Rs. 15 lacs
Rs.20 lacs
Rs.25 lacs
rs.30 lacs
50)To protect the policyholder against unethical agents, the IRDA allows policyholders a
free look-in period of . days after receiving the policy.
30
20
15
8