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Quiz 15
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Q.1
Which is correct about a decreasing Term Insurance?
Premium will increase over time
Premium will decrease over time
In decreasing term insurance the premium is constant through the term
Premium is returned periodically
Q.2
Pick out the incorrect statement out of the following ones.
In decreasing term policy the premium will fall each year
In decreasing term cover the premium is the same throughout the policy duration
Policy benefits will also decrease over the policy period
Mortgage redemption policy is nothing but a term insurance cover
Q.3
State the correct statement out of the following ones.
Nominee is in every circumstance the owner of the policy proceeds
Nomination is entitled to give a valid discharge to an insurer for payment of claim
Assignment and nomination are one and the same
Even if a policy is assigned to the insurer for a loan it cancels the existing nomination made earlier
Q.4
State the correct one of the following ones.
A policy lapses if the premium is not paid on the due date
A policy lapses if the premium is not paid within the grace period
A policy does not lapse at all under any conditions
Investment risk in a ULIP policy is borne by the Insurer
Q.5
Identify the correct statement in the following.
In determination of premium higher the rate of interest assumed the lower is the premium
In determination of premium higher the rate of interest assumed higher is the premium
In determination of premium lower the rate of interest assumed lower is the premium
Premium is not determined by rate of interest assumed to be earned by the insurer
Q.6
How does investment duration affect returns?
There is no relationship whatsoever
With greater duration of investment returns are larger
If the duration is larger the rate of returns is likely to be smaller
With greater duration of investment larger tax possibility is likely
Q.7
State which is incorrect statement
Life Insurance agents desirous of doing stand alone Health insurance business will have to be certified under IC-34 separately
Such life agents as above are exempt from passing IC-34 if they have been certified under IC-33 and if they undergo some internal training for 25 hours given by Health Insurance Company
Agents certified under IC 34 for non life insurer can do standalone Health insurance business after undergoing internal training for 25 hrs from the standalone health insurance company
No agent, individual or corporate of life and or non-life insurer shall offer his services to more than one standalone health insurance Company
Q.8
Which is correct?
Insurance is a kind of investment
Insurance is nothing but a gamble
Insurance is risk transfer of pooling of similar risks
Insurance is nothing but a savings scheme
Q.9
Identify the correct statement
Lloyds is the originator of insurance
Modern insurance is traceable to bottomry
Malhotra committee is the originator of modern insurance
Modern insurance traces itself to Rhodes
Q.10
Young persons are charged lower premium as compared to older persons because
Young persons may not have much income to pay for the insurance
Older persons can afford to pay more for their insurance
Younger persons have lower mortality on account of lower age
Younger the age higher the mortality
Q.11
Which element deals with premium in a valid contract?
Consideration
Offer and Acceptance
Free Consent by the parties to the contract
Capacity to contract
Q.12
State the correct option?
Health Insurance cover can come only as a standalone policy
Health Insurance cover can come with life insurance cover provided by a life insurer
Health cover can be issued only by a nonlife insurer
There is no limit on the benefits in a health cover
Q.13
Who is an inpatient seeking medical attention for his medical problem?
He is a patient who receives medical attention without admission in a hospital
He is after admission in a hospital receiving medical attention and treatment while being there
He is a day care patient for treatment
He is a patient in a house receiving care of doctors
Q.14
State the correct option?
In a MWP Act policy claim moneys can be paid to a near relative of the assured
Policy claim moneys can be paid to the assured in a maturity claim
Policy claim money can be paid only to the named trustee as the policy is a separate trust
Death claim may be paid to the nominee in a WWP Policy
Q.15
Which is correct?
It is easy to know cash value and savings value components in a traditional plan
In a traditional life insurance it is not easy to ascertain the rate of return
Surrender value can easily be arrived at in such policies
Rate of return is always high in such policies
Q.16
_________ is not a tangible good
House
Insurance
Mobile Phone
A pair of jeans
Q.17
Who are the likely buyers of variable life policies?
Persons with low risk appetite
Persons who look for predetermined and fixed returns of interest
Persons with comfort in equity on account of their knowledge
Generally young persons
Q.18
Identify the correct statement
Insurance transfer s risk from one asset to another asset
Losses to assets are sought to be shared by a few only
Gains of a few people are sought to be shared by many in insurance
Losses suffered by a few people are sought to be shared by many in insurance
Q.19
Which is incorrect statement out of the following ones?
Risk is not an essential element of insurance
Asset is not an essential element of insurance
Principle of mutuality is not an essential element of insurance
Subsidy is an essential element of insurance
Q.20
Find out which one below is not an asset.
Air
Car
House
Human Life
Q.21
If a policy is absolutely assigned to Ramesh and on the death of Srikant, the life assured, to whom will be paid the claim amount?
Srikant’s wife
'Nominee in Srikant’s policy
'Srikant’s widow and children
Ramesh
Q.22
State the correct statement of the following sentences.
An individual with aggressive risk appetite is likely to follow consolidation
An individual with aggressive risk profile is likely to follow wealth accumulation
An individual with high risk profile is likely to follow gifting
A person with risk aggressive style is likely to follow spending
Q.23
“Hurt not others with that which pains yourself”. This golden rule of ethics is given in the teaching of which religion?
Buddhism
Christianity
Hinduism
Judaism
Q.24
The license issued to the agent is valid for _________.
One year
Two years
Three years
Five years
Q.25
_________ relate to one’s ability to interact effectively with other workers and customers, both at work and outside.
Hard skills
Soft skills
Negotiating skills
Questioning skills
Q.26
Which of the below elements promote trust?
Communication, assertiveness and being present
Politeness, affirmation and communication
Attraction, communication and being present
Affirmation, assertiveness and attraction
Q.27
Which of the below statement is correct?
Life insurance is sold, not bought
Life insurance is bought, not sold
Life insurance is neither bought nor sold; it is a necessity and hence should be bought by every individual
None of the above
Q.28
Identify the incorrect statement with regards to a ‘qualified’ prospect.
A qualified prospect is one who can pay for insurance
A qualified prospect is one who can be approached on a favourable basis
A qualified prospect is one who is academically well qualified to buy insurance
A qualified prospect is one who can pass the company underwriting requirements
Q.29
State which of the following is an accumulation product.
Bank Deposits
Non life Insurance policy
Life Insurance
Shares
Q.30
As per Section 182 of the Indian Contract Act, _________ is a person employed to do any act for another or to represent another in dealing with a third person.
Principal Officer
Proxy
Mediator
Agent
Q.31
Which of the below reflects Principle 2 of the Insurance Marketplace Standards Association (IMSA) principles?
To provide competent and customer-focused sales and service
To engage in active and fair competition
To provide for fair and expeditious handling of customer complaints and disputes
To maintain a system of supervision and review that is reasonably designed to achieve compliance with these principles of ethical market conduct
Q.32
Which of the following is not part of sales process?
Prospecting
Sales interview
Loss assessment
Closing
Q.33
Which of the below consumer grievance redressal agencies would handle consumer disputes amounting between Rs. 20 lakhs and Rs. 100 lakhs?
District Forum
State Commission
National Commission
Zilla Parishad
Q.34
Which among the following cannot form the basis for a valid consumer complaint?
Shopkeeper charging a price above the MRP for a product
Shopkeeper not advising the customer on the best product in a category
Allergy warning not provided on a drug bottle
Faulty products
Q.35
Can a complaint be launched against a private insurer?
Complaints can be launched against public insurers only
Yes, complaint can be launched against private insurers
Complaint can be launched against private insurers only in the Life Sector
Complaint can be launched against private insurers only in the Non-Life Sector
Q.36
_________ is not an indicator of service quality.
Cleverness
Reliability
Empathy
Responsiveness
Q.37
Discretionary income is not maximised by
Debt restructuring
Transfer of loans
Restructuring of investment
Purchase of insurance policy
Q.38
What is the essential purpose of Life Insurance?
It is tax rebates
It is a good investment
It is protection for loss of economic value of human life in the event of death or disability
It leads to wealth accumulation
Q.39
State the correct statement out of the following ones.
Credit Life Insurance policy is an endowment plan
Mortgage Redemption plan is also an endowment plan
Whole life plan is also an endowment plan
Money Back plan is a kind of endowment plan
Q.40
Choose the incorrect sentence out of the following ones.
Life Insurance policies are contracts of indemnity
Life insurance contracts are valued contracts and not contracts of indemnity
In Non-Life contacts there is no assurance
There is no certainty of risk occurrence in non-Life contracts
Q.41
Which is an advantage in cash value contracts?
Reduced returns on account of inflation
Low accumulation in earlier years
Lower yields
Secure and safe investment
Q.42
State the correct option
Amount of annuity depends on duration of annuity payments, principal sum of money, investment period and rate of return
Amount of annuity does not depend on the principal sum of money
Investment period has no relation to the amount of annuity
Annuity is independent of rate of return
Q.43
State the correct statement out of these.
Every pension is a kind of annuity
Every annuity is also a pension
Pension and annuity are one and the same
Every pension is not an annuity
Q.44
Which is incorrect?
Special reports like ECG, EEG, Chest x-ray reports etc are called for in large sums proposed and where the ages of the proposers are higher than otherwise
First insurance at age of 50 for a large sum proposed is a sign of moral hazard
Family history has no role in risk assessment
If there is no relationship between the proposer’s income and the sum proposed moral hazard is suspected
Q.45
True reward for a successful agent is
Job satisfaction on performing a challenging role to influence his client to go in for his life’s protection
Recognition in his circles as a knowledgeable and ethical life insurance adviser with social respect
Handsome income through hard work by winning the trust and confidence of his clients
All of the above
Q.46
Which is correct
Inter-temporal allocation of resources refers to timing of such decisions for better returns
It refers to temporary allocation of resources
It refers to allocation of resources over time
In this method resources are diversified in allocation
Q.47
Unbundling of life insurance products refers to
Correlation of life insurance with bonds
Correlation of life insurance with equities
Combination of protection with savings element
Separation of protection and savings element
Q.48
Define the concept of Uberrima Fides.
Not disclosing medical facts and information in the proposal
Not revealing all material facts known only to the proposer in the proposal
Paying premium in time and as and when it is due
Fully disclosing all material facts about the proposed by him in the proposal
Q.49
Which of the two decisions are involved in a savings proposition?
Retention of risk and reduced consumption
Gifting and accumulation
Spending and accumulation
Postponement of consumption and parting with liquidity
Q.50
Pick out the correct sentence from the flowing ones.
Family floater policy does not cover parents
Family floater is for self and spouse only
Family floater policy covers self, spouse, parents and dependants
Uncle and aunt can be covered in a family floater
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