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Quiz 14
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Q.1
As per IRDA regulations issued, what is the grace period allowed beyond the expiry date of a policy for renewal?
10 days
30 days
45 days
60 days
Q.2
Which regulation deals with claim procedure?
IRDA (Licencing of Agents) Regulations, 2000
IRDA (Protection of Policyholders' Interests) Regulations, 2002
Insurance Act, 1938
Government of India directives
Q.3
How can a complaint be launched with an Insurance Ombudsman?
The complaint is to be made in writing
The complaint is to be made orally over the phone
The complaint is to be made orally in case of a face to face manner
The complaint is to be made through newspaper advertisement
Q.4
An insurance contract terminates after _________ is paid.
Loan
Human Life Value
Economic value
Claim
Q.5
On foreclosure of a policy, which of the following is incorrect?
Nothing is payable to the policyholder
Excess amount (subsisting cash value after deducting loan/interest) is payable
Notice has to be given to the policyholder by the insurer
None of the above
Q.6
When is it essential for insurable interest to be present in case of life insurance?
At the time of taking out insurance
At the time of claim
Insurable interest is not required in case of life insurance
Either at time of policy purchase or at the time of claim
Q.7
Which of the following is correct?
Extra benefits are allowed by the insurer in a life policy on payment of an extra premium
Double accident benefit is a free item in a life policy
Permanent Disability, like DAB, is also a free benefit and not chargeable
Extra premium for health and extra premium for extra benefits are identical
Q.8
All of the following are characteristics of variable life insurance EXCEPT:
Flexible premium payments
Cash value is not guaranteed
Policy owner selects where savings reserve is invested
Minimum Death benefit is guaranteed
Q.9
Which of the below is correct with regards to universal life insurance?
I: It allows policy owner to vary payments.
II: Policy owner can earn market based rate of return on cash value
I is true
II is true
I and II are true
I and II are false
Q.10
Which of the following will be the most appropriate option for an aggrieved customer to lodge an insurance policy related complaint?
Police
Supreme Court
Insurance Ombudsman
District Court
Q.11
Which of the following forms is not required for settlement of a death claim?
Declaration of good health
Certificate of cremation/burial
Physician certificate
Death certificate
Q.12
Which of the following is the correct statement?
Life insurance contract is a verbal contract through custom and usage
Life insurance is a legally enforceable contract between the insurer and the insured, as per the Indian Contract Act, 1872
Verbal contracts, like life insurance, are enforceable
Life insurance, like a wagering contract, is a business practice
Q.13
What is responsible for a rise in general price levels of goods and services in a nation’s economy?
Inflation
Deflation
Reflation
Stagflation
Q.14
State which is correct out of the following
A Term Insurance policy cannot be convered into any other policy during its duration
Term policy is available both a separate policy and as a rider in another policy
Term policy can be issued with lifelong renewability option
All Term covers will have a disability rider
Q.15
All of the following is true regarding ULIP’s EXCEPT:
Unit holder can choose between different kind of funds
Life insurer provides guarantee for unit values
Units may be purchased by payment of a single premium or via regular premium payments
ULIP policy structure is transparent with regards to the insurance expenses component
Q.16
What does unbundling of life insurance products refers to?
Correlation of life insurance products with bonds
Correlation of life insurance products with equities
Amalgamation of protection and savings element
Separation of the protection and savings element
Q.17
Which of the following statements is correct with regard to the territorial jurisdiction of the Insurance Ombudsman?
Insurance Ombudsman has national jurisdiction
Insurance Ombudsman has state jurisdiction
Insurance Ombudsman has direct jurisdiction
Insurance Ombudsman operates only within the specified territorial limits
Q.18
What is correct out of the following statements?
An agent licensed to act as such for an insurer has to have a license under sec.42 of the Insurance Act’38 for procuring and continuing insurance business against payment of commission by the in
An agent can only be a trained individual for working for an insurance company
A bank can also act as a broker for life insurance business
A bank cannot act as an agent of whatever description
Q.19
Health plus life combo products would mean a combination of
Health insurance from a non-life company and life cover from a life insurance company
Health insurance from a standalone health company and life cover from a life insurance company
Both A & B
None of the above
Q.20
Which is correct?
A convertible Term policy cannot be converted into a whole life policy
A convertible policy can be converted into a money back cover also
A Convertible Term policy can be converted into a whole life policy
A converting term policy can be converted into a decreasing term policy
Q.21
Stet the correct statement?
In endowment assurance survival up to the end of the term as well as in between death will give the claimant the benefits of the policy
An endowment policy only survival benefit is available
In endowment cover only death benefit is there
Endowment plan and Term insurance are similar in benefits
Q.22
Which of the below risk cannot be addressed through pensions?
Life longevity
Inflation
Investment risk
Early death
Q.23
What of the following statement is correct regarding insurance?
Life Insurance contract is between a proposer and his agent for protection of his life’s economic worth
Prospectus is in lieu of policy in certain cases
Prospectus is an introductory document giving details of features and benefits of life insurance products to a proposer
There is no difference between a proposal and prospectus
Q.24
Inaccurate statements in proposal without any fraudulent intention are
Representation
Merely misrepresentation
Contributing statement
Offer by the party
Q.25
Identify the correct statement
Risk retention would mean absence of possibility of loss or damage
The event of loss is insignificant
Assets are covered by insurance
The owner of assets is prepared to accept the uninsured risks and its effects
Q.26
State the correct statement
Survey and inspection of 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.27
What is correct in the following sentences?
Claim is a demand on the insurer to honour contractual commitment to pay the policy money to the claimant
It s request made to the insurer by the claimant to settle payment
While in some claims, the contract comes to an end with payment in other cases the contract continues
All of the above
Q.28
Universal Life Insurance is associated with
Universal Life Insurance is associated with Germany
Universal Life plan was first introduced in the UK
France is the home of universal Life policies
USA is known for introducing such policies
Q.29
What is correct
Insurer in certain circumstances may waive subsequent premiums
Policy document and FPR are one and the same
RPRs are revival premium receipt
After issue of FPR subsequent premiums are to be paid by the assured
Q.30
What is correct?
A minor cannot be named as a nominee in a policy
Where nominee is a minor, an appointee has to be appointed by the assured
There can only be one nominee and not more
If more than one nominee is appointed the policy claim moneys can be shared amongst them
Q.31
Identify the correct statement out of the following.
Free look period enables the policyholder to return the policy and ask for refund subject to certain conditions
Passport & School certificate is a standard proof of age
Ration card is a non-standard proof of age
All of the above
Q.32
Pick out the incorrect statement.
In a medical examiner’s report physical features like height, weight, blood pressure, etc need to be stated for proper risk assessment
If a proposal cannot be considered as a non-medical case for underwriting, a medical report is essential
There is no such thing as non-medical underwriting
Ration card is a non-standard proof of age
Q.33
Rights and privileges in a policy will be found in
Standard provisions in a policy document
Policy schedule
Preamble to the policy
Clauses in the policy document
Q.34
State which of the following assets is beyond the scope of the creditors.
'Ramakant’s indebtedness after his demise can lead to the creditors taking away his property
'Ramakant’s bank accounts can be attached to clear off his debts
Mutual funds proceeds can be attached by the creditors
Term policy proceeds under MWP Act
Q.35
Which of the following policies is most suitable for a home loan mortgage?
MRI
Whole Life Policy
Term Insurance policy
Property insurance under non-life category
Q.36
State the correct option?
In endowment policies for 20 years premium is payable for all years under all circumstances
There cannot be a single premium policy of 20 years
In a 20 year endowment policy there can be provision for payment of premium only for a few years
In life insurance terminology premium and price are different
Q.37
Who of the below mentioned parties is not eligible to enter into a contract?
Housewife
Businessman
Government employee
Minor
Q.38
Proximate cause in this case is this
His contracting pneumonia after falling into a water body from the horseback
Dying of the illness in the hospital
Ramesh falling off a horseback and suffers a grave injury
Falling off the horseback
Q.39
Which is the following item is good for wealth accumulation purposes?
Bank loans
Investment in shares
Investment in Term Insurance
Investment in savings bank accounts
Q.40
With whom do we associate the concept of Human Life Value?
Martin Luther
Prof.H.S.Huebner
J.M.Keynes
Warren Buffet
Q.41
Choose the correct statement.
Lower yields are a disadvantage in cash value contracts
Discipline in saving is not an advantage in cash value contracts
Income Tax advantage is not an advantage in cash value contracts
Safe and secure investment is not an advantage in cash value contracts
Q.42
State the correct position in a missing assured death claim
Payment is subject to an order from a competent court of law
Payment will depend on the policy status as on the date of the court order
Seven year waiting period is as per the Indian Evidence Act
All of the above
Q.43
What is the main objective of IRDA Regulations 2000?
Protection of Insurance Company
Protection of policyholder and development of orderly growth of insurance business
Protection of insurance intermediaries
To earn for the Government
Q.44
In accidental death claim what reports are required to be submitted by the beneficiary?
Certificate of cremation or burial
Treating physician’s certificate
Inquest report of the Govt. agency
All of the above
Q.45
Pick out the incorrect sentence.
Underwriting is risk assessment in a proposal on the life of the proposer for offering him life cover
Prevention of selection against the insurer is the purpose of underwriting
Underwriting is a needless exercise in today’s environment of inadequate coverage of population for life insurance
Underwriting process defines and determines the premium chargeable on the proposal for covering risk
Q.46
Indicate the correct sentence
In complex cases the underwriter may adopt judgment method, rather than numerical method only
Decision as to acceptability of risk is that of the underwriter
Postponement of risk is also a kind of underwriting decision
All of the above
Q.47
State the correct sentence
A minor is not eligible for insurance
Proposal on the life of a minor can be submitted by his parent or guardian after the need for insurance is established
A minor has no insurable interest in his life and therefore, is ineligible for insurance
Proposal on a minor life can be submitted by anyone
Q.48
State the correct option?
Risk of longevity is best managed through pensions
Early death can be handled through pension
Investment risk cannot be addressed through pensions
Inflation risk is not managed through pensions
Q.49
State the correct option?
In an ordinary annuity payments are made or received at the beginning of each period
On maturity
3 months before expiry
At the end of each period
Q.50
Which policy is suited to clear off a client’s liability for mortgage loan?
Endowment policy
Whole Life Policy
Money Back Policy
Mortgage Redemption policy
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