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Quiz 13
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Q.1
All of the following are elements of a valid contract, except
Offer and acceptance
Capacity to pay premiums
Consideration
Capacity of the parties
Q.2
Which of the following is NOT true regarding ULIP?
A unit holder can choose between different kinds of funds
Life insurer provides guarantee for unit values
Units may be purchased by payment of a single premium or by regular premium payments
ULIP policy structure is transparent with regards to the insurance expenses component
Q.3
What is the time for approaching an insurance ombudsman?
Within two years of rejection of the complaint by the insurer
Within three years of rejection of the complaint by the insurer
Within one year of rejection of the complaint by the insurer
Within one month of rejection of the complaint by the insurer
Q.4
Which of the following is not a pre-requisite for launching a complaint with ombudsman?
The complaint must be made by an individual on a 'Personal Lines' insurance
The complaint must be lodged within 1 year of the insurer rejecting the complaint
Complainant has to approach a consumer forum prior to ombudsman
The total relief sought must be within an amount of Rs. 20 lakh
Q.5
According to common law, when should insurable interest be present in a general insurance contract?
At the time of taking policy
At the time of claim
Both A & B
None of the above
Q.6
Which of the following statements is incorrect?
An agent today cannot work for more than one non-life insurance company
An agent can work only for one life insurance company and also for only one non-life company
An agent today can work for more than one life insurance company
Such an agent who works for one life and one non-life insurance company is called composite agent
Q.7
Insurance is not gambling because of the presence of
Principle of utmost good faith
Insurable interest
Indemnity principle
None of the above
Q.8
An insurance company needs assets for
Financing a new business
Generating more competitive returns
Greater leverage in investment
All of the above
Q.9
AML programme of an insurance company includes
Internal policies and controls
Appointment of a Principal Compliance Officer
Internal audit/control
All of the above
Q.10
An alternative to bonus method of distribution of surplus is
Lapsation method
Contribution method
Accumulation method
None of the above
Q.11
An agent can work on which of the following bases for successful results?
Natural market is a source of market for a life insurance agent
A satisfied client can be an effective referral to an agent for further references
Family and friends can offer an easy opportunity for being contacted for life insurance selling
All of the above
Q.12
Which one of the following statements is correct?
Assignee is free from the assignor’s obligations under the policy
A nomination is automatically cancelled when a loan is taken under the policy
Both the statements above are correct
None of the above
Q.13
A policy with cover for an indefinite term is called
Whole life
Endowment
Money back
Term insurance
Q.14
Are there any charges that need to be paid for lodging a complaint with ombudsman?
A fee of Rs. 100 needs to be paid
No fees or charges need to be paid
20% of relief sought must be paid as fee
10% of the relief sought must be paid as fee
Q.15
A non-early claim is a claim occurring after _________ of taking a policy of insurance.
One year
Two years
Three years
Four years
Q.16
License to work as an insurance agent is issued by
General Insurance Corporation (GIC)
Insurance Regulatory and Development Authority (IRDA)
State Bank of India (SBI)
Post Office
Q.17
As per IRDA (Protection of Policyholder’s Interest) Regulations, 2002, a claim under a life policy shall be paid or be disputed within
7 days
15 days
30 days
45 days
Q.18
Mahesh ran a business on borrowed capital. After his sudden demise, all the creditors are doing their best to go after Mahesh’s assets. Which of the below assets is beyond the reach of the creditors?
Property under Mahesh's name
Mahesh's bank accounts
Term life insurance policy purchased under section 6 of the MWP Act
Mutual funds owned by Mahesh
Q.19
_________ is reflected in the caring attitude and individualized attention given to customers.
Assurance
Empathy
Reliability
Responsiveness
Q.20
Which principle means flow of resources from many to one?
Mutuality or pooling
Mutuality or cooperation
Pooling or funding
Resourcing or pooling
Q.21
Which of the following are not a wealth accumulation product?
Shares
Insurance
Bonds
Real estate
Q.22
Which of the following statements is correct?
In group insurance, a single policy is issued covering many persons
In group insurance, a single policy is issued covering many persons
Both the statements above are correct
Both the statements above are wrong
Q.23
Which of the following statements are 'true'?
1 : The premium under a group insurance policy is constant for all the time to come.
2 : Section 45 of the Insurance Act does not apply to a one year policy.
Only 1
Only 2
Both A & B
None of the above
Q.24
The term 'Money Laundering' would mean
Process of hiding the origin of the money
Turning illegal money into legal money
Bringing illegal money into economy
All of the above
Q.25
Which of the following statements are correct?
KYC document is to be collected by the insurer from the proposer
Identification of the proposer is the main purpose of KYC
PAN card is a proof of one's identity while seeking life cover
All of the above
Q.26
Revival of a life insurance policy means
Forcing a policy to lapse
Reinstating a lapsed policy
Not paying the premiums
Non-settlement of claim monies
Q.27
Benefit under a Unit Linked policy is reckoned by
The value of the units
The number of units standing to the credit of the unit holder
Both A & B
None of the above
Q.28
Surrender value is a percentage of
Investment value excluding interest
Loan value
Paid-up value
Capital invested
Q.29
Risk transfer through risk pooling is called
Savings
Investment
Insurance
Risk mitigation
Q.30
In relation to annuities, what does “liquidation period” refer to?
Period between the purchase of annuity and commencement of payments
Period during which the insurer makes annuity payments
Time taken to build up the corpus
Insolvency period
Q.31
Cold calling is
Meeting the customers in winter
Meeting the customers when they are suffering from cold
Meeting people unannounced
Meeting the customers after fire has been extinguished
Q.32
Which of the following statements is incorrect with regards to decreasing term assurance?
Death benefit amount decreases with term of coverage
Premium amount decreases with term of coverage
Premium remains leveled throughout the term
Mortgage redemption plans are an example of decreasing term assurance plans
Q.33
Which of the following policies is suitable for a person who cannot temporarily afford to pay high premiums?
Convertible Endowment
Convertible Money Back
Convertible ULIP
Convertible Whole Life
Q.34
Which of the following is untrue as per IRDA’s regulations on non-par policies?
The benefits shall be stated at the outset
The benefits shall be linked to some index
The additional benefit under these policies shall be laid out at the outset
The return shall be stated at the beginning of the contract itself
Q.35
An insurance agent represents a/an
Insurance company
Sub-agent
Co-agent
Broker
Q.36
Which of the following are not a part of insurance planning?
Life insurance
House loans
Protection of assets
Health insurance
Q.37
When one is near to his retirement years, the risk profile of an individual could be
Progressive
Aggressive
Secured
Conservative
Q.38
Maturity claim is payable when
The insured survives the first 5 years
The insured dies during policy term
The insured is diagnosed with a critical illness
The insured survives policy term
Q.39
What are the two methods of underwriting?
Direct and indirect
Accept and decline
Judgement and numerical
Open-ended and close-ended
Q.40
Which of the following statements are true with regard to MWP Act cases?
I: Maturity claim cheques are paid to policyholder.
II: Maturity claim cheques are paid to trustee.
I is true
II is true
Both I and II are true
Neither I nor II is true
Q.41
_________ method of underwriting is suitable while deciding a complex case, e.g. whether to give insurance to someone who has acute diabetes.
Instrumental
Panelling
Non-medical
Judgmental
Q.42
If a policy document is lost, then
Claim may be settled on the basis of an indemnity bond
An advertisement may have to be placed in a newspaper if the amount to be paid is high
Both A & B
None of the above
Q.43
Surplus would arise in an insurance company, if
The actual experience is worse than what it had assumed
The actual experience is better than what it had assumed
The liabilities are under/over valued
The assets are valued in a conservative manner
Q.44
The main advantage of term insurance lies in
Protection
Thrift
Savings
Price
Q.45
Survey and inspection of a property is essential
Before acceptance of risk to assess the risk for rating purpose
To find out the true value of asset
To find out how the asset came into the owner's possession
To know whether any other property in the neighbourhood can be insured
Q.46
Which of the following plans have several limitations?
Traditional cash value plans
Non-traditional plans
Both A & B
None of the above
Q.47
Reversionary bonus is declared as an amount
Per thousand premium paid
Per thousand surplus of the company
Per hundred premium paid
Per thousand sum insured
Q.48
Which of the following are correct?
Prospecting is building a list of persons who can be approached for life insurance
Marketing includes an exercise to meet the account holders of a bank
Meeting known and familiar people who can give an agent interview for life insurance purposes is useful
All of the above
Q.49
If assets are overvalued, the result would be
More surplus
Less surplus
More or less surplus
New business strain
Q.50
Which of the following factors are taken into account for financial underwriting?
Income
Occupation
Lifestyle/habits
All of the above
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