IRDA Sample Paper

Irda exam paper

 

 

1          Insurance works on the principle of

 

a          Trust

b          Sharing

c           Randomness

d          All of the above

 

2          Insurance is legitimate

 

a          when an adverse happening is likely

b          When an adverse happening is unlikely

c           When an adverse happening is certain

d          In all the above three situations

 

3          Insurance benefits replace

 

a          All physical losses, in full

b          All physical losses, partly

c           All monetary losses, in full

d          The monetary losses, but only to some extent

 

4          Which one of the following statements is correct?

 

a          People hesitate to buy life insurance because they are not aware of their needs

b          People hesitate to buy life insurance because they prefer to enjoy the present

c           Both the statements are correct

d          Both the statements are wrong

 

5          Which is the right time for taking life insurance?

 

a          When you are about to get married

b          Soon after you have got married

c           Just when you are joined a new job

d          All the three ‘times’ are right

 

6          Retention of risk may be done conveniently by

 

a          Large corporations

b          Small companies

c           Single individuals

d          None of the three

 

7          A valuation is done by a life insurer because

 

a          It is a statutory requirement

b          It is necessary to be able to declare dividends to shareholders

c           It tells the insurer how well it is managing the business

d          All of the above

 

8          The reason for charging level premiums is

 

a          Risk increases as age increases

b          It is convenient to the policyholder

c           It is convenient to the insurer

d          All the above reasons

 

9          What does a premium depend upon?

 

a          The place of worship visited by the person to be insured

b          The state of health of the policyholder

c           The decision of the underwriter

d          The report of the agent

 

10         State which one of the following statements is correct?

 

a          In group insurance, a single policy is issued covering many persons

b          A master policy covers servants of a master

c           Both the statements above are correct

d          Both the statements above are wrong

 

11         Which one of the following statements is correct?

 

a          In a limited payment policy, there is a maximum limit to the SA

b          In a limited payment policy, there is a maximum limit to the term

c           Both the statements above are wrong

d          Both the statements above are correct

 

12         Which one of the following statements is true with regard to Children’s policies?

 

a          On vesting, the insured person has an option to change the term of the policy

b          On vesting the insured person has an option to increase the SA

c           Both the statements above are wrong

d          Both the statements above are correct

 

13         Which of the following could be the basis of the cover in a group policy?

 

a          Height of the life insured

b          Age of the life insured

c           Size of the insured’s family

d          All the three above

 

14         Which one of the following statements is true with regard to Children’s policies?

 

a          On vesting, the insured person has an option to change the term of the policy

b          On vesting the insured person has an option to increase the SA

c           Both the statements above are wrong

d          Both the statements above are correct

 

15         Which one of the following statements is correct?

 

a          Every plan of insurance is a combination of two basic plans

b          The name given to a plan indicates the benefits available under the plan

c           Both the statements above are correct

d          Both the statement s above are wrong

 

16         Which one of the following statements is correct?

 

a          Underwriting is done only when there is a medical examination

b          Medical examination is necessary before a policy can be issued

c           Both the statements above are correct

d          Both the statements above are wrong

 

17         Which one of the following statements is correct?

 

a          The underwriter determines the premium to be charged

b          The underwriter is an employee of the insurer

c           Both the statements above are correct

d          Both the statements above are wrong

 

18         Which one of the following statements is correct?

 

a          If the underwriter feels that the risk is more, he will accept at OR

b          If the underwriter feels that the risk is more, he may impose a lien

c           Both the statements above are correct

d          Both the statements above are wrong

 

19         Which one of the following statements is correct?

 

a          The schedule of a policy is not altered after the policy is issued

b          Changes in the terms of the policy are made through endorsements

c           Both the statements above are correct

d          Both the statements above are wrong

 

20         The date of issue of the FPR indicates

 

a          The date when the risk effectively begins

b          The date when the next premium falls due

c           The date when the policy will commence

d          None of the above

 

21         Which one of the following statements is correct?

 

a          In the case of SSS policies, renewal premium receipts are issued

b          In the case of SSS policies, FPRs are issued

c           Both the statements above are correct

d          Both the statements above are wrong

 

22         Which one of the following statements is correct?

 

a          Assignee is free from the assignor’s obligations under the policy

b          A nomination is automatically cancelled when a loan is taken under the policy

c           Both the statements above are correct

d          Both the statements above are wrong

 

23         Which one of the following statements is correct?

 

a          The beneficiaries under the MWP Act can be any member of the family

b          A policy can be taken under the MMWP Act for the benefit of parents

c           Both the statements above are correct

d          Both the statements above are wrong

 

24         Which one of the following statements is correct?

 

a          Foreclosure can be done only with the consent of the policyholder

b          Foreclosure can be done only after informing the policyholder

c           Both the statements above are correct

d          Both the statements above are wrong

 

25         Which one of the following statements is correct?

 

a          Revivals are not done unless the entire outstanding premium is paid

b          Revivals are not done unless the underwriter agrees

c           Both the statements above are correct

d          Both the statements above are wrong

 

26         Which one of the following statements is correct?

 

a          Foreclosure action cannot be taken till a notice is served on the policyholder

b          When a foreclosure action is taken, nothing is payable to the policyholder

c           Both the statements above are correct

d          Both the statements above are wrong

 

27         Which one of the following statements is correct?

 

a          The beneficiaries under the MWP Act can be any member of the family

b          A policy can be taken under the MMWP Act for the benefit of parents

c           Both the statements above are correct

d          Both the statements above are wrong

 

28         Which one of the following statements is correct?

 

a          A presumption of death is not the same as proof of death

b          Presumption of death allows inheritance of property

c           Both the statements above are correct

d          Both the statements above are wrong

 

29         When does a claim arise under an insurance policy?

 

a          Whenever the policyholder feels the need for money

b          When the insured events happen

c           When a premium is not paid

d          Whenever any of the three things mentioned above happen

 

30         Which one of the following statements is correct?

 

a          Maturity claim cheques are paid to the trustees in a MWP Act case

b          Maturity claim cheques are paid to the beneficiaries in a MWP Act case

c           Both the statements above are correct

d          Both the statements above are wrong

 

31         If a claim is made in January 2007 under a policy, which commenced in May 2002, stating that the life insured had died in April 2004,

 

a          Section 45 of the Act will not apply

b          The claim can be treated as an early claim

c           Foul play must be suspected

d          All the three statements above are correct

 

32         Which one of the following statements is correct?

 

a          A policy reported to be lost, may actually have been assigned

b          A policy has no value after the payment of survival benefits

c           Both the statements above are correct

d          Both the statements above are wrong

 

33         Which one of the following statements is correct?

 

a          The foreign exchange regulations apply if the life insured is a non-resident

b          The foreign exchange regulations apply if the claimant is a non-resident

c           Both the statements above are correct

d          Both the statements above are wrong

 

34         State which of the following statements is correct

 

a          ULIPs provide for flexibility

b          ULIPs are better than traditional policies

c           Both the above statements are correct

d          Both the above statements are wrong

 

35         State which of the following statements is correct

 

a          In ULIPs, the offer bid spread is the difference between the two prices

b          In ULIPs, the offer bid spread, will in some cases be zero

c           Both the above statements are correct

d          Both the above statements are wrong

 

36         State which of the following statements is correct

 

a          In ULIPs the insurance cover must be a minimum multiple of the premium

b          ULIPs can be surrendered after two years

c           Both the above statements are correct

d          Both the above statements are wrong

 

37         State which one of the following statements is correct

 

a          Life insurance is the best savings scheme for all persons

b          Life insurance is the best investment scheme for young persons

c           Both the statements above are correct

d          Both the statements above are wrong

 

38         Which of the following statements is correct?

 

a          An insurance agent has fixed working hours

b          An insurance agent has to mark his attendance in office every day

c           An insurance agent works according to his schedule

d          An insurance agent cannot do any other work

 

39         State which one of the following statements is correct

 

a          When vital information is not disclosed, the policyholder is benefited

b          When a claim is repudiated, the agent’s trustworthiness is affected

c           Both the statements above are correct

d          Both the statements above are wrong

 

40         State which one of the following statements is correct?

 

a          The social sector is not only in the urban areas

b          The social sector includes the unorganized sector

c           Both the statements above are correct

d          Both the statements above are wrong

 

41         State which one of the following statements is correct?

 

a          The Ombudsman’s authority is limited to claims matters only

b          The Ombudsman is not a judicial authority

c           Both the statements above are correct

d          Both the statements above are wrong

 

42         State which one of the following statements is correct?

 

a          The tax provisions are the same for all kinds of savings

b          The tax provisions are included in the Constitution

c           Both the statements above are correct

d          Both the statements above are wrong

 

43         A proposal for SA of Rs. 10 lakhs with DAB for monthly mode under SSS.

Proposer had a previous policy of Rs. 5 lakhs with DAB. Proposal was

accepted with health extra of Rs. 2.75 per thousand SA premium for DAB Re 1 per

thousand. 5% extra for monthly mode. large SA rebate of Rs 2/- per thousand for

1 lakh and above. Tabular premium Rs. 48.20 maximum total SA on which DAB is allowed is Rs. 10/- lakhs.

Find monthly (SSS) premium, rounded off to the next higher rupee

a          4102

b          4121

c           4183

d          4195

 

 

44         Find out surrender value on the basis of following data (the answer to

be rounded off to the next lower rupee). SA Rs.30, 000 DOC- 15.6.1992,

Endowment with profit – 30 years

Due date of last premium paid 15-06-2007 mode half yearly

Accrued bonus Rs.750/- per thousand SA. SV factor 23%

a          3670

b          3765

c           8740

d          None of these

 

45         A money back policy for SA. of Rs.50,000/- Matured after 25 years.

Survival benefits of 15% each had been paid at the end of 5th, 10th, 15th,

and 20th years. Bonus had accrued at Rs.965/- per Rs.1000/- SA. Interim bonus

@ Rs.25/- per thousand SA is payable. What is the maturity claim amount?

a          68250

b          69500

c           98250

d          99500

 

Correct Answers            Practice Paper   6

 

1          d          16         d          31         d

2          a          17         c           32         a

3          d          18         b          33         c

4          c           19         c           34         a

5          d          20         a          35         c

6          a          21         b          36         a

7          d          22         d          37         d

8          d          23         d          38         c

9          c           24         b          39         b

10         a          25         d          40         c

11         c           26         a          41         b

12         c           27         d          42         d

13         b          28         c           43         b

14         c           29         b          44         c

15         a          30         a          45         b

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