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Quiz 9
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Q.1
Non-traditional products involved shift from traditional products in terms of
Investment linkage
Transparency
Unbundling
All of the above
Q.2
Which of the following statements is correct?
There is an Ombudsman for defined territorial limits
There is one Ombudsman for each state in India
There is only one Chief Ombudsman for the whole country
An Ombudsman has no upper financial limit
Q.3
Which of the following are correct?
Alterations can be done by placing a suitable endorsement on the policy
For some alterations, cancellation of existing policy and issuance of new policy are resorted to
Both the above are wrong
None of the three
Q.4
In a Return of Premium plan (ROP), what is the quantum of maturity claim payable?
Sum insured
Sum insured + bonus
Return of premiums
Nothing
Q.5
Which of the following statements is incorrect?
Term insurance can be taken as a standalone policy
Term insurance cannot be taken as a rider
Term insurance policies are sold by life insurance companies
Term insurance policies provide cover for a fixed period
Q.6
Which of the following is correct?
The entire surplus would be distributed to policyholders
The entire surplus would be distributed to shareholders
A portion of the surplus would be left for distribution to shareholders
All of the above
Q.7
Term insurance possesses which of the following properties?
Savings benefit
Death benefit
Maturity benefit
Bonus benefit
Q.8
Which of the following statements is incorrect in case of a non-medical case?
In a non-medical case, risk cannot be assessed in the absence of medical report
Risk assessment is possible in a non-medical proposal
More than 90% of people who submit proposals on their lives are accepted at ordinary rates
In preferred lives, the level of anticipated mortality is likely to be lower than even standard lives
In preferred lives, the level of anticipated mortality is likely to be lower than even standard lives
Q.9
Why do insurers arrange for survey and inspection of the property before acceptance of a risk?
To assess the risk for rating purposes
To find out how the insured purchased the property
To find out whether other insurers have also inspected the property
To find out whether neighboring property also can be insured
Q.10
What will happen if the insured person loses the original life insurance policy document?
The insurance company will issue a duplicate policy without making any changes to the contract
The insurance contract will come to an end
The insurance company will issue a duplicate policy with renewed terms and conditions based on the current health declarations of the life insured
The insurance company will issue a duplicate policy without making any changes to the contract, but only after a court order
Q.11
Amount of annuity payable is inversely related to which of the following?
Principal sum of money
Investment period
Rate of return
Duration of annuity payments
Q.12
The grace period for renewal beyond expiry date of a health insurance policy is
10 days
15 days
30 days
90 days
Q.13
Policy Allocation Charge would be _________ in the initial years.
High
Low
Moderate
None of the three
Q.14
By helping a client in settlement of a claim, the agent earns _________ of the claimant.
Peace
Affection
Wrath
Goodwill
Q.15
_________ means every party to an insurance contract must disclose all material information.
Insurable interest
Indemnity
Proximity
Uberrima fides
Q.16
In which of the following cases does insurable interest not exist?
Spouse
Business partner
Tenant
Self
Q.17
Which of the following statements is incorrect in case of variable insurance plans?
Cash value is not guaranteed
Minimum death benefit is guaranteed in variable insurance plans
Where to keep the money invested is the decision of the policyholder
Flexible premium payments are allowed in such policies
Q.18
Which of the following statements are correct?
The Ombudsman's authority is limited to claims matters only
The Ombudsman is not a judicial authority
Both the statements above are correct
None of the three
Q.19
Which of the following statements are incorrect?
Complainant has to approach a consumer forum before moving to the Ombudsman
The complaint has to be lodged within two years of the insurer rejecting the compliant
There is no separate financial limit of various forums and commissions
All of the above
Q.20
To make accurate statistical estimates, insurance risks must be handled as per the law of
Inertia
Large numbers
Large groups
None of the above
Q.21
Which of the following is the most common underwriting decision?
To accept with extra premium
To reject proposal
Lien
To accept at an ordinary rate
Q.22
A payment made under a money-back policy upon reaching a milestone will be classified under which type of claim?
Death claim
Maturity claim
Periodical survival claim
Surrender claim
Q.23
Choose the correct statement(s)
Policy is an evidence of contract between the insurer and the insured
FPR signifies the commencement of the contract
A life insurance policy is subject to Indian Stamp Act
All of the above
Q.24
The definition for ‘hospital’ does not envisage which of the following?
5 inpatient beds in towns with a population of < 10 lakh and 10 beds in other places
Qualified medical practitioner round the clock
Fully-equipped operation theatre
Daily records of patients to be maintained
Q.25
_________ as a profession refers to the act of inducing a commercial transaction through inducing the purchase of a product or service. Such act is carried out with the intent of earning remuneration.
Marketing
Selling
Advertising
Promotion
Q.26
What is the ‘consideration’ from the insured in an insurance contract?
Premium
Proposal
Understanding
Acceptance
Q.27
Which plan is suitable for accumulation of specific sum of money?
Whole life
Endowment
Money back
Term insurance
Q.28
In the initial years of a ULIP, the value of the benefits would be
High
Low
Moderate
None of the three
Q.29
As per Section 45 of Insurance Act, 1938, an insurance company can reject a claim after 2 years from issuance of policy if the material facts in the proposal are _________ made.
Innocently
Falsely
Frantically
Fraudulently
Q.30
Choose the correct statement.
A complaint can be launched against public insurer only
A complaint can be launched against a private insurer and a public insurer
A complaint can be launched against a private insurer only in the life sector
A complaint can be launched against a private insurer only in the non-life sector
Q.31
Expand the term IGMS.
Insurance General Management System
Indian General Management System
Integrated Grievance Management System
Intelligent Grievance Management System
Q.32
Which of the following are incorrect?
1. Mutuality means funds from various individuals are combined.
2. Diversification means spreading out funds to various destinations.
1 is correct
2 is correct
Both A & B
None of the above is correct
Q.33
Selecting an appropriate investment vehicle would not depend on
Liquidity
Tax benefit
Time horizon
Insurability
Q.34
Which of the following are the disadvantage(s) of Traditional With Profit policies over ULIPs?
Bonuses are declared only once a year and do not reflect daily fluctuations in the value of the assets
Policyholder's benefits depend on assumptions/discretions of the insurance company
Bonus structure does not reflect the true value of assets of the insurer
All of the above
Q.35
Annuity belongs to
One where the annuity amount is fixed (guaranteed)
One where the annuity amount is variable (linked to investment performance)
Both A & B
None of the above
Q.36
Which of the following could be the basis of the cover in a group policy?
Height of the life insured
Age of the life insured
Size of the insured's family
All of the above
Q.37
Which of the following statements are “TRUE”?
1: In a group policy, each person is free to choose the amount of insurance cover.
2: A person, normally uninsurable, can be covered under a group insurance policy.
Only statement 1
Only statement 2
Both A & B
None of the above
Q.38
An insurance broker represents
An insurance company
An insured
An association of insurance companies
A community of people who have already taken insurance
Q.39
Which of the following types of life insurance policies pays the full sum assured to the beneficiaries if the insured dies during the policy term or to the policyholder on the maturity of the policy if he/she survives the term?
Whole Life
Endowment
Money Back
Unit Linked
Q.40
How much free look period is allowed from the date of receipt of health insurance policy document?
10 days
15 days
30 days
90 days
Q.41
When is an insurance company put to real test?
At the point of accepting proposal
At the time of payment of claim
At the time of deciding sum insured
At the time of announcement of bonuses
Q.42
In decreasing-term insurance, the premiums paid _________ over time.
Increase
Decrease
Remain constant
Are returned
Q.43
Using the conversion option present in a term policy you can convert the same to _________.
Whole life policy
Mortgage policy
Bank FD
Decreasing term policy
Q.44
Which of the below statement is correct with regards to endowment assurance plan?
It has a death benefit component only
It has a survival benefit component only
It has both a death benefit as well as a survival component
It is similar to a term plan
Q.45
Which of the below is an example of an endowment assurance plan?
Mortgage Redemption Plan
Credit Life Insurance Plan
Money Back Plan
Whole Life Plan
Q.46
The most common form of bonus is
Cash bonus
Compound bonus
Dividend
Reversionary bonus
Q.47
Choose the correct statement.
There is no harm if an agent shares his commission with his client who has taken a policy from him
Sharing a part of the agent's commission is after all a trade practice and therefore, not objectionable
The agent is not obliged to disclose his commission to his client even if asked by the latter
The agent has to show his licence to his prospect-customer on demand
Q.48
Which of the following statements is incorrect?
Insurance agent should indicate the scale of commission if asked by the customer
Insurance agent should share the commission by way of rebate
Insurance agent should disclose his licence on demand
Insurance agent should indicate the premium to be charged
Q.49
Which among the following is not a variant of term assurance?
Mortgage redemption insurance
Return of premiums
Increasing term assurance
Endowment assurance
Q.50
Which of the following is not a risk fit for insurance?
Early death
Early death in an accident
Disability
Natural wear and tear to an asset
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