IRDA sample paper

MODEL QUESTION PAPER – 4

1.A policy, in which payment to the annuitant begins five years after the policy has

commenced, is called ___________annuity.

a. Deferred b. Certain c. immediate d. five year

 

2.A duplicate policy may be issued when the original has been _______.

a. Mutilated b. burnt c. Stolen d. All the above

 

3. What right does a consumer have?

a. Right of redressal b. Right to information c. right to education

c. all the above

 

4. What is required to pay the death claim if there is no will, nomination or

Assignment?

a. Probate b. Birth certificate c. proof of title d. Court order

 

5. When we agree to pay a claim, it is called _____________.

a. Admission b. payment c. submission d. consideration

 

6. Which of the statement/s are True?

A. Insurance helps one to be less dependent on others.

B. Insurance is necessary to cover the risk of living too long.

a. Only A b. only B c. Both d. Neither

 

7. Which of the following are true?

A. The community of policyholders shares insurance claims.

B. In insurance, every policyholder contributes to the losses incurred by

others.

a. Only A b. only B c. both d. neither

 

8. Which of the following are true?

A. Insurance works on the law of averages.

B. Insurance is possible only when there are many policyholders.

a. Only A b. only B c. both d.neither

 

9. Annuity covers the risk of ______________

a. Death b. accident c. Living too long d. sickness

 

10. Which of the following are true?

A. Accident Benefit is an option available on payment of additional amount.

B. Accident Benefit cover is automatic in all life insurance policies.

a. Only A b. only B c. both d. Neither

 

11. The reduction in the tabular premium for mode or sum assured is called

_____________.

a. Concession b. incentive c. Rebate d. reduction

 

12. Terminal Bonus is payable on _____________.

a. Maturity b. surrender c. revival d. foreclosure

 

13. _______________ is the process of deciding on a proposal for

insurance.

a. Decision b. acceptance c. underwriting d. Consideration

 

14. In case of Moral Hazard _______________

a. Proposal is declined b. Extra premium is charged

c. Sum assured is reduced d. lien is imposed

 

15. The principal is responsible for ________________acts of the agents.

a. All acts of the agent b. None of the acts of the agents

c. Some of the acts of the agent d. specified act on behalf of the principal

 

16. Which of the following is true?

A. A wife can take on a policy on her husband.

B. A person can take a policy on the life of a customer to whom he has lent

money.

a. Only A b. only B c. both d. neither

 

17. A business wherein persons facing same risks are brought together,

to create a fund from which those suffering losses are compensated.

a. Mutual fund b. insurance c. Banking d. security

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18. If an immediate annuity is purchased on 10/12/2000 when will the first

half-yearly annuity be paid?

a. 10/12/200 b. 10/03/2001 c. 01/06/2001 d. 10/06/2001

 

19.The happening of risk in insurance should be

a. Accidental b. Created c. Regular d. Deliberate

 

20. In LIC, social security fund is created as per instructions of

__________.

a. IRDA b. State Govt. c. Controller of Insurance d. Central Govt.

 

21. A policy cannot be called in question after 2 years on the grounds of

false information under Section _____ of the Insurance Act.

a. 45 b. 38 c. 44 d. 39

 

22. A prospect is one who has

a. Need for insurance b. capacity to pay

c. Need and capacity d. none of the above

 

23. Plans of life insurance are

a. Only term insurance b. Only pure endowment

c. Combination of term and pure endowment d. none of the above

 

24. Final Additional Bonus is payable on policies which are in full force for

full sum assured for a minimum period of

a. 10 yrs. b. 15 yrs. c. 20yrs. d. 25 yrs.

 

25. In case of convertible whole life plan, policyholder has to exercise the

option of converting it into endowment assurance at the end of

a. 2 yrs. b. 5 yrs. c. 7 yrs. d. 10 yrs.

 

26.In case of annuity policies, selection is made by

a. Insurer b. agent c. Annuitant d. Development officer

 

27. Insurance premium charged depends on

a. Sum assured b. term c. age d. all the above

 

28. A policy acquires paid up value after payment of premium for

a. 3 yrs. b. 5 yrs. c. 1 yr. d. 7 yrs.

 

29. For yearly mode of payment of premium rebate allowed in tabular

Premium is

a. 3% b. 1.5% c. 5 % d. 1%

 

30. S.V. Factor depends on

a. Sum assured b. Duration elapsed c. term d. Term and duration elapsed

 

31. The present rate of interest for delayed payment of premium is

a. 6% b. 9% c. 7.5% d. 10.5%

 

32. _________ is the evidence of intimation of risk upto the next due date.

a. FPR b. challan c. renewal receipt d. Deposit receipt

 

33. _____________ is the evidence of the policy contract.

a. FPR b. Renewal receipt c. proposal form d. policy document

 

34. Alterations are effected in a policy by

a. Separate endorsement b. correcting the document

c. Issuing a new document d. none of the above

 

35. _______________ is the basic unit of growth and profit.

a. Branch office b. divisional office c. zonal office d. Central office

 

36. _______________ Plan is designed to meet the outstanding loans of

Individual

a. Endowment b. Jeevan Griha c. Bima Sandesh d. Mortgage redemption

assurance

 

37. Life insurance business was nationalised in ___________.

a. 1947 b. 1956 c. 1950 d. 1981

 

38. An annuity payable for a fixed period is called _____________.

a. Annuity certain b. immediate annuity c. life annuity d. deferred annuity

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39. __________ is the price paid by the insured for a life insurance policy.

a. Sum assured b. premium c. Maturity value d. Surrender value

 

40. Main advantages of group schemes

a. High sum assured b. low cost c. graded cover d. no age proof

 

41. Premiums paid under Jeevan Suraksha plan are exempt under Sec.

_______ of IT Act.

a. 88 b. 80CCC c. 80D d. 80 G

 

42. LICI Act has been amended by ______________.

a. IRDA Act, 1998 b. IRDA Act, 1999

c. IRDA Act, 2000 d. None

 

43. Licence to an insurance agent is issued by ____________.

a. Controller of insurance b. IRDA

c. Marketing Manager d. Branch Manager

 

44. A composite insurance agent is one who _______________.

a. Works for life insurance b. Works for general insurance

c. Works for life and general insurance d. works for UTI

 

43. The insurer before claim in case of ______________ can send a

discharge voucher.

a. Death claim b. surrender c. maturity claim d. none

 

47. Behavioral aspects include

a. Communication b. morale c. motivation d. all the above

 

48. Ideally the plan to be sold to the prospect is ____________

a. Endowment b. Money back c. plan that suits the needs of the proposer

d. multipurpose

 

49. Maximum commission payable on first year premium is

a. 35% b. 50% c. 15% d. 25%

 

50. Minimum business required for an agent every year is __________.

a. 15 policies b. 12 policies c.12 lives d. 15 lives

 

51. Purchase price in case of a deferred annuity can be paid in

a. Lump sum b. quarterly installments c. yearly installments d. any of these

 

52. Extended claim concession is applicable to policies where premiums

have been paid for _______________.

a. 3 years b. 10 years c. 5 years d. 2 years

 

52. If the proposer does not fully disclose fully all the material facts at

the time of proposal , the principle violated is

a. Caveat emptor b. insurable interest c. utmost good faith

d. Sharing of risk

 

54. A plan of life insurance, which provides for payment of sum assured in

the event of death only during the selected term and nothing payable in the

event of survival is known as

a. Pure endowment b. term assurance c. Immediate annuity

d. Deferred annuity

 

55. A document required to pay the death claim

a. Birth certificate b. death certificate c. court order d.evidence of

relationship to deceased.

 

56.The decision not to accept the life proposed to be insured is known as

a. Declining b. Negative c. rejection d. Refusal

 

57. Surplus in a valuation arises because of Favourable experience in

a. Mortality b. cost of management c. Interest earned

d. all the above

 

58.The amount paid by the insurer when the policyholder decides that he

does not want to continue with the policy

a. Forfeiture amount b. final claim c. lapse amount d. surrender value

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59. The process of recording the correct age of a person insured is

Called ______________.

a. Certification b. age admission c. verification d. Proof of age

 

60. Infirmities are caused by _______________.

a. Old age b. sickness c. loss of limb d. all of these

 

61. Doctors appointed by the insurers will be ______________.

a. General physicians b. Specialists c. Surgeons d. All of these

 

62. To be eligible for bonus, ____________ year’s premiums have to be

paid under an insurance policy

a. 2 years b. 3 years c. 4 years d.5 years

 

63. A contract, which provides for regular periodic payments for a specified

period which, is fixed without regard to the duration of any life

a. Life annuity b. Deferred annuity c. Fixed annuity d. Annuity certain

 

64. Licence for life insurance business is granted for _____ years.

a. 3 years b. 5 years c. 6 years d. 4 years

 

65. ______________ is bringing the policy back to life.

a. Renewal b. Revival c. restart d. Lapsation

 

66. Payment of claim amount to claimants who are non-residents of India

are governed by

a. Passport b. Foreign Exchange Control Regulations

c. Evidence Act d. Income Tax Act

 

67. Trust deed in a Group Insurance has to be approved

a. Chairman of LIC b. Commissioner of Income- Tax

c. Marketing manager d. Branch Manager

 

69. Guaranteed surrender value is 30% of the total amount of premiums

excluding

a. First year’s premium b. extra premiums, if any

c. Accident benefit premium d. all of these

 

70. The primary component of the distribution channel in life insurance

a. Branch Manager b. agent c. Assistant d. development officer

 

71. Calculate the half-yearly installment premium given that:

Date of birth 10/01/1976

Date of proposal 10/01/2001

Sum Assured Rs. 10000

Assume that the proposal is without accident benefit and occupational

extra Rs. 4%o is chargeable.

The tabular premium for the plan and term is given below:

For age: 24 years Rs. 75.00

25 years Rs. 76.00

26 years Rs. 77.00

Also assume that there is no mode or sum assured rebate

a. 450 b. 400 c. 800 d. 760

 

71. Date of commencement : 13/7/1984

Endowment with profits 25 years

Sum Assured Rs.50000

Last premium paid was due on 13/01/2001

Mode: Qly Premium: Rs.450

S.V. Factor 46%

Bonus 1985 – 2000 – 960 /- per thousand

2001-75 /- per thousand

Calculate loan value as on 12.02.2002

a. 33528 b. 33530 c.35500 d.35501

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