1) The Modern Commercial Insurance Business Practiced today is the trace Of:

A) Triron Insurance Company Ltd

B) Lloyd's Coffee House

C) Friendly Society of England

D) Chinese Traders Practice

Correct Option: B | Your Answer: A | Wrong

2) Please tick example of non-physical asset:

A) Goodwill

B) Limbs of body

C) Car

D) Building

Correct Option: A | Your Answer: A | Right

3) What is primary burden of risk?

A) Financial losses suffered by others

B) Mental losses

C) Losses due to carelessness

D) losses suffered by pure risks

Correct Option: D | Your Answer: C | Wrong

4) What do you understand by separation in loss prevention measures?

A) Concentration of risk at one location

B) Placement of risk in your pocket

C) Bifurcation of risk at various locations

D) Undertaking the risk by various members

Correct Option: C | Your Answer: B | Wrong

5) What do you mean by assurance?

A) It covers risk

B) It covers event

C) Both are correct

D) Both are wrong

Correct Option: B | Your Answer: A | Wrong

6) if the premium cost is more than the insurance benefit what you will do?
A) opt for full Insurance

B) Do not opt for insurance

C) opt for minimum insurance

D) None of the above.

Correct Option: B | Your Answer: D | Wrong

7) Insurance helps in:

A) Removing anxiety

B) Assigning as a collateral security

C) Protecting capital of a business

D) All the above.

Correct Option: D | Your Answer: A | Wrong

8) RKBY is a scheme representing:

A) Social Security

B) Jan Arogya

C) Personal Accident

D) Crop Insurance

Correct Option: D | Your Answer: A | Wrong

9) How many life insurance companies are operating in India?

A) 24

B) 22

C) 25

D) 20

Correct Option: A | Your Answer: A | Right

10) Inspection of risk by a surveyor helps in:

A) Assessing the risk for rating purposes

B) Recommending in improvement of risk

C) Both are wrong

D) Both are correct.

Correct Option: D | Your Answer: A | Wrong

1) The principle behind insurance is

A) Sharing the risk

B) Probabilities of risk

C) Risk pooling

D) All of the above

Correct Option: D | Your Answer: A | Wrong

2) Which is not a part of general insurance

A) Health

B) Accidental

C) Life

D) Fire

Correct Option: B | Your Answer: C | Wrong

3) The beneficiaries in the insurance contract are

A) dependents

B) Insured

C) both a and b

D) insurer

Correct Option: C | Your Answer: B | Wrong

4) Can sea water and air be assets?

A) Yes

B) No

C) Unknown

D) None

Correct Option: B | Your Answer: B | Right

5) State whether the statement is true or false. Something which cannot be owned by any one
person and which is abundantly available in nature cannot be termed as an asset.

A) True

B) False

C) Unknown

D) None

Correct Option: A | Your Answer: A | Right

6) Insurance provides protection :

A) Against financial losses arising from perils.

B) Loss or damage caused by risks

C) The natural wear and tear.

D) Both a and b

Correct Option: D | Your Answer: B | Wrong

7) Which is not a peril?

A) Earthquake

B) Robbery

C) Old mobile

D) Heart Attack

Correct Option: C | Your Answer: C | Right

8) Which of the following is the regulator of insurance sector in India?

A) RBI

B) AML

C) IRDAI

D) SEBI

Correct Option: C | Your Answer: C | Right

1) Mr. Pinto contracted pneumonia as a result of lying on wet ground after a horse riding accident.
The pneumonia resulted in death of Mr. Pinto. What is the proximate cause of the death?

A) Pneumonia

B) Horse

C) Horse riding accident

D) Bad luck

Correct Option: C | Your Answer: A | Wrong

2) Which among the following is an example of coercion?

A) Ramesh signs a contract without having knowledge of the fine print

B) Ramesh threatens to kill Mahesh if he does not sign the contract

C) Ramesh uses his professional standing to get Mahesh to sign a contract

D) Ramesh provides false information to get Mahesh to sign a contract

Correct Option: B | Your Answer: A | Wrong

3) Which among the following options cannot be insured by Ramesh?

A) Ramesh's house
B) Ramesh's spouse

C) Ramesh's friend

D) Ramesh's parents

Correct Option: C | Your Answer: C | Right

4) What is the significance of the principle of contribution?

A) It ensures that the insured also contributes a certain portion of the claim along with the insurer

B) It ensures that all the insured who are a part of the pool, contribute to the claim made by a
participant of the pool, in the proportion of the premium paid by them

C) It ensures that multiple insurers covering the same subject matter; come together and contribute
the claim amount in proportion to their exposure to the subject matter

D) It ensures that the premium is contributed by the insured in equal instalments over the year.

Correct Option: C | Your Answer: C | Right

5) The principle of _____________ ensures that an insured does not profit by insuring with multiple
insurers

A) Subrogation

B) Contribution

C) Co-insurance

D) Indemnity

Correct Option: B | Your Answer: C | Wrong

6) "Uberrimafides" in an insurance policy is the term used for Utmost Good Faith

A) True

B) False

C) Unknown

D) None of the above

Correct Option: A | Your Answer: A | Right

7) Under writer makes a judgement and determines the facts such as:

A) The acceptance of Risk

B) Terms and conditions

C) Rate of premium

D) All of the above

Correct Option: D | Your Answer: B | Wrong

8) Which of the following is not required for making a Life insurance proposal?
A) Family doctor's details

B) Person's age and occupation

C) Family health history

D) None of the above

Correct Option: A | Your Answer: A | Right

9) Once the Life Insurance policy is accepted, there is every need to still disclose any material facts
that may come up during the term of the policy.

A) True

B) False

C) Unkonwn

D) None of the above

Correct Option: B | Your Answer: A | Wrong

10) A Life Insurance policy can be called in question on the ground of Fraud by the insurer only within
a time period of three years from

A) The date of issuance of the policy

B) The date of revival/ commencement of risk,

C) The date of the rider to the policy, whichever is later.

D) All of the above

Correct Option: D | Your Answer: A | Wrong

1) Contribution is also called:

A) Subrogation

B) A corollary of Indemnity.

C) Agreed value

D) None of the above

Correct Option: B | Your Answer: C | Wrong

2) In which policy does the insurer and insured agree on the value of the property to be insured, at
the beginning of the insurance contract and the insurer agrees to pay the agreed amount of the
policy In the event of total loss

A) contribution

B) Agreed value policy

C) subrogation

D) Indemnity
Correct Option: B | Your Answer: A | Wrong

3) Which of the following are the modes of indemnity?

A) Repair/replacement of a damaged item

B) Restoration of a house destroyed by fire

C) Cash payment for the loss.

D) All of the above

Correct Option: D | Your Answer: A | Wrong

4) The Principle of Indemnity is applicable to :

A) Life insurance policies

B) Non-life insurance policies

C) Health insurance policies

D) None of the above

Correct Option: B | Your Answer: B | Right

5) State true or false The philosophy involved in insurance is that the insured should not make a
profit through insuring one’s assets and recovering more than the loss.

A) True

B) False

C) Unknown

D) None of the above

Correct Option: A | Your Answer: B | Wrong

6) Which is the active and efficient cause that sets in motion a chain of events which brings about a
result, without the intervention of any force started and working actively from a new and
independent source .

A) Peril

B) Hazard

C) Proximate cause

D) All of the above

Correct Option: C | Your Answer: A | Wrong

7) When Does Utmost Good Faith Shall Exist?

A) At the time of taking the policy

B) At the time of revival of a lapsed policy

C) Both are wrong

D) Both are right.

Correct Option: D | Your Answer: A | Wrong

8) Which among the following cannot be an element in a valid insurance contract?

A) Offer and Acceptance

B) Coercion

C) Consideration

D) Legality

Correct Option: B | Your Answer: D | Wrong 9) During the Free-look period, if the policyholder,
who has bought a policy through an Agent, disagrees to any of its terms and conditions, he/ she
can return it and get a refund subject to the following conditions:

A) He/ she can exercise this option within 15 days of receiving the policy document

B) He/ she has to communicate to the company in writing

C) The premium refund will be adjusted for proportionate risk premium for the period on cover,
expenses incurred by the insurer on medical examination and stamp duty charges

D) All the above

Correct Option: D | Your Answer: A | Wrong

10) If the policyholder has bought a policy and does not want it, he/ she can return it during the
_________ period, and get a refund.

A) Free evaluation

B) Free-look

C) Cancellation

D) Free trial

Correct Option: B | Your Answer: C | Wrong

1) Identify the two factors that affect insurance ratemaking.

A) Probability and severity of risk

B) Source and nature of risk

C) Source and timing of risk

D) Nature and impact of risk

Correct Option: A | Your Answer: A | Right

2) What is pure premium?

A) Premium sufficiently big enough to pay for losses only

B) Premium applicable to marginal members of the society

C) Premium after loading for administrative costs

D) Premium derived from the most recent loss experience period

Correct Option: A | Your Answer: B | Wrong

3) The steps involved in Underwriting :

A) Assessment and evaluation of hazard and risk

B) Formulation of Policy coverage

C) Fixing the rates of premium

D) All of the above

Correct Option: D | Your Answer: B | Wrong

4) What are the main features of underwriting?

A) To identify risk

B) To determine the level of risk

C) Determine the premiums

D) All of the above

Correct Option: D | Your Answer: C | Wrong

5) Under writing skills are acquired through :

A) Taking an insurance policy

B) Knowledge gained through Field exposure

C) Adequate training and deep insights

D) Both options b and c

Correct Option: D | Your Answer: C | Wrong

6) Price for a given unit of insurance is known as:

A) Rate

B) Premium

C) Both rate and premium

D) None of the above

Correct Option: A | Your Answer: B | Wrong

7) State whether true or false Insurance is based on risk transfer of the insured to the insurer.

A) True

B) False
C) Unknown

D) None of the above

Correct Option: A | Your Answer: A | Right

8) Statistical data of Past loss experience is used to

A) Fix rates

B) To calculate the pure rate of premium

C) Both a and b

D) None of the above

Correct Option: C | Your Answer: A | Wrong

9) To calculate the average loss percentage formula of M = (LX100 )/ V is used The Value of a motor
cycle:Rs.90,000/ - Loss experience : Out of 3500 motor cycles, 50 motor cycles get stolen over 5 years
On an average, 5 motor cycles become total losses due to theft every year If in the formula L refers to
the sum total of the losses and V to the total values of all the motorcycles and M to average loss
percentage., calculate the average loss percentage

A) 10

B) 20

C) 30

D) 40

Correct Option: C | Your Answer: C | Right

10) State True or False Insurers use the rating factors to determine the risk and to decide the price
they will charge.

A) True

B) False

C) Unknown

D) None of the above

Correct Option: A | Your Answer: B | Wrong

1) Which of the following activities would not be categorized under professional settlement of
claims?

A) Seeking information relating to the cause of the loss

B) Approaching the claim with a prejudice

C) Ascertaining whether the loss was a result of an insured peril

D) Quantifying the amount payable under the claim

Correct Option: B | Your Answer: C | Wrong

2) What is TAT?

A) Time to time

B) Time taken

C) Time around time

D) None of the above

Correct Option: C | Your Answer: B | Wrong

3) Which of these is "Act of God" perils?

A) Road Accident

B) Floods

C) Fire to a shop

D) Heart attack

Correct Option: B | Your Answer: B | Right

4) Which of the following will the amount payable depend upon ?

A) The extent of the insured’s insurable interest in the property affected

B) The value of salvage

C) Application of under insurance

D) All of the above

Correct Option: D | Your Answer: B | Wrong

5) Which of the following are the important a

5) Which of the following are the important aspects for Non-life claims ?

A) The loss causing event is within the scope of the policy

B) Warranties are not complied with.

C) The insured has taken measures to minimize the loss, On the occurrence of a loss

D) Both a and c

Correct Option: D | Your Answer: B | Wrong

6) In Life insurance claims In the matter of claims ,the insurer checks whether the Conditions of
policy have not been breached and No material facts have been concealed fraudulently

A) True

B) False

C) Unknown

D) None of the above

Correct Option: A | Your Answer: B | Wrong

7) Which of the following is true?

a) A personal accident policy will cancel on the payment of the capital sum insured
b) Payment of a claim under individual fidelity guarantee policy terminates the policy
automatically.

A) a

B) b

C) Both a and b

D) None of the above

Correct Option: C | Your Answer: B | Wrong

8) The Arbitration Act allows the parties to submit disputes under a contract

A) Is a private process and takes less time

B) Takes longer to resolve the dispute

C) More informal and less costly

D) Both a and c

Correct Option: D | Your Answer: B | Wrong

9) The dispute is submitted to :

A) A single arbitrator to be appointed by the parties

B) Two arbitrators each appointed by the parties

C) An umpire is appointed by the two arbitrators

D) All of the above

Correct Option: D | Your Answer: A | Wrong

10) Which are the most common reasons for disputes between the insured and the insurer?

A) Non-disclosure of material facts

B) Loss caused by excluded perils

C) Breach of warranty

D) Any or all of the above

Correct Option: D | Your Answer: B | Wrong

1) Which of the following it not usually part of the insurance prospectus?

A) Name of Ombudsman

B) Date of Scope of benefits

C) The Entitlements
D) The Exceptions

Correct Option: A | Your Answer: C | Wrong

2) Which of the following is not relevant in respect of a Proposal form?

A) Utmost Good-faith

B) Amount expected to be claimed

C) Duty to Disclose material facts

D) Confidentiality of details given

Correct Option: B | Your Answer: D | Wrong

3) Which of the following is not acceptable as valid Age Proof?

A) Birth certificate extracted from municipal records

B) Birth Certificate issued by Member of Legislative Assembly

C) Passport

D) PAN Card

Correct Option: B | Your Answer: D | Wrong

4) What stage document is Prospectus?

A) Final stage

B) Proposal stage

C) Agreement stage

D) Cancelation stage

Correct Option: B | Your Answer: D | Wrong

5) State true or false The prospectus is a form providing details of the proposed insurance product
to the prospectus customer.

A) True

B) False

C) Unknown

D) None of the above

Correct Option: A | Your Answer: A | Right

6) The insurance policy is a legal contract between :

A) The insurance company and the agent.

B) IRDAI and Insurer

C) The insurer and the insured

D) All of the above

Correct Option: C | Your Answer: C | Right

7) As per IRDAI guidelines, the insurer will send a copy of the proposal submitted by the Insured in
______ days

A) 10 days

B) 15 days

C) 7 days

D) 30 days

Correct Option: D | Your Answer: C | Wrong

8) Which of the details in proposal form?

A) The details of insured

B) Type of insurance

C) Details of what he/ she wants to insure

D) All of the above

Correct Option: D | Your Answer: B | Wrong

9) State true or false: The Agents recommendations including the reasons for such
recommendation are a part of the proposal form.

A) True

B) False

C) Unkonwn

D) None of the above

Correct Option: A | Your Answer: A | Right

10) The Prevention of Money Laundering Act (PMLA),2002 came into effect from

A) 2002

B) 1999

C) 2005

D) 1995

Correct Option: C | Your Answer: A | Wrong

1) What is meant by customer lifetime value?

A) Sum of costs incurred while servicing the customer over his lifetime

B) Rank given to customer based on business generated

C) Sum of economic benefits that can be achieved by building a long term relationship with the
customer

D) Maximum insurance that can be attributed to the customer

Correct Option: C | Your Answer: C | Right

2) In a customer's mind, there are two types of feelings and related emotions that arise with each
service failure on part of the insurance company. These feelings are

A) Confusion and empathy

B) Dishonesty and revenge

C) Ignorance and sympathy

D) Sense of unfairness and hurt ego

Correct Option: D | Your Answer: C | Wrong

3) Which among the following is not an element of active listening?

A) Paying good attention

B) Being extremely judgmental

C) Empathetic listening

D) Responding appropriately

Correct Option: B | Your Answer: B | Right

4) _______ is not a tangible good.

A) House

B) Insurance

C) Mobile Phone

D) A pair of jeans

Correct Option: B | Your Answer: A | Wrong

5) ________is not an indicator of service quality.

A) Cleverness

B) Reliability

C) Empathy

D) Responsiveness

Correct Option: A | Your Answer: B | Wrong

6) In customer relationship the first impression is created:

A) By being confident

B) By being on time
C) By showing interest

D) By being on time, showing interest and being confident

Correct Option: D | Your Answer: C | Wrong

7) Select the correct statement:

A) Ethical behaviour is impossible while selling insurance

B) Ethical behaviour is not necessary for insurance agents

C) Ethical behaviour helps in developing trust between the agent and the insurer

D) Ethical behaviour is expected from the top management only

Correct Option: C | Your Answer: NA | Wrong

8) Active listening involves:

A) Paying attention to the speaker

B) Giving an occasional nod and smile

C) Providing feedback

D) Paying attention to the speaker, giving an occasional nod and smile and providing feedback

Correct Option: D | Your Answer: C | Wrong

9) _______refers to the ability to perform the promised service dependably and accurately.

A) Reliability

B) Responsiveness

C) Assurance

D) Empathy

Correct Option: A | Your Answer: C | Wrong

10) _______relate to one's ability to interact effectively with other workers and customers, both at
work and outside

A) Hard skills

B) Soft skills

C) Negotiating skills

D) Questioning skills

Correct Option: B | Your Answer: B | Right

1) The has jurisdiction to entertain complaints, where value of the goods or services and the
compensation claimed is up to Rs.20 lakhs.
A) District Forum

B) State Commission

C) Zilla Parishad

D) National Commission

Correct Option: A | Your Answer: B | Wrong

2) Expand the term IGMS.

A) Insurance General Management System

B) Indian General Management System

C) Integrated Grievance Management System

D) Intelligent Grievance Management System

Correct Option: C | Your Answer: C | Right

3) Which among the following cannot form the basis for a valid consumer complaint?

A) Shopkeeper charging a price above the MRP for a product

B) Shopkeeper not advising the customer on the best product in a category

C) Allergy warning not provided on a drug bottle

D) Faulty products

Correct Option: B | Your Answer: D | Wrong

4) Which of the below will be the most appropriate option for a customer to lodge an insurance
policy related complaint?

A) Police

B) Supreme Court

C) Insurance Ombudsman

D) District Court

Correct Option: C | Your Answer: C | Right

5) Which of the below statement is correct with regards to the territorial jurisdiction of the Insurance
Ombudsman?

A) Insurance Ombudsman has National jurisdiction

B) Insurance Ombudsman has State jurisdiction

C) Insurance Ombudsman has District jurisdiction

D) Insurance Ombudsman operates only within the specified territorial limits

Correct Option: D | Your Answer: C | Wrong

6) How is the complaint to be launched with an insurance ombudsman?

A) The complaint is to be made in writing

B) The complaint is to be made orally over the phone

C) The complaint is to be made orally in a face to face manner

D) The complaint is to be made through newspaper advertisement

Correct Option: A | Your Answer: A | Right

7) What is the time limit for approaching an Insurance Ombudsman?

A) Within two years of rejection of the complaint by the insurer

B) Within three years of rejection of the complaint by the insurer

C) Within one year of rejection of the complaint by the insurer

D) Within one month of rejection of the complaint by the insurer

Correct Option: C | Your Answer: B | Wrong

8) Which among the following is not a pre-requisite for launching a complaint with the Ombudsman?

A) The complaint must be by an individual on a Personal Lines insurance

B) The complaint must be lodged within 1 year of the insurer rejecting the complaint

C) Complainant has to approach a consumer forum prior to the Ombudsman

D) The total relief sought must be within an amount of Rs.20 lakhs.

Correct Option: C | Your Answer: C | Right

9) Are there any fee / charges that need to be paid for lodging the complaint with the Ombudsman?

A) A fee of Rs 100 needs to be paid

B) No fee or charges need to be paid

C) 20% of the relief sought must be paid as fee

D) 10% of the relief sought must be paid as fee

Correct Option: B | Your Answer: C | Wrong

10) Can a complaint be launched against a private insurer?

A) Complaints can be launched against public insurers only

B) Yes, complaint can be launched against private insurers

C) Complaint can be launched against private insurers only in the Life Sector

D) Complaint can be launched against private insurers only in the Non-Life

Correct Option: B | Your Answer: C | Wrong

1) Which of the below statements is correct?

A) The prime purpose of insurance regulation is to protect the insurance companies

B) The prime purpose of insurance regulation is to protect the policyholder

C) The prime purpose of insurance regulation is to protect the insurance intermediaries

D) The prime purpose of insurance regulation is to protect the Government

Correct Option: B | Your Answer: C | Wrong

2) Which of the below statement is correct?

A) If agent loses the licence, then no duplicate licence is issued. The agent has to wait till the time of
renewal, when another copy is issued

B) If agent loses the licence, then the Authority may issue a duplicate licence free of cost.

C) If agent loses the licence, then the Authority may issue a duplicate licence only after a FIR is
lodged and a waiting period of 30 days.

D) If the agent loses the licence, then the Authority may issue a duplicate licence on payment of a fee
of rupees fifty.

Correct Option: D | Your Answer: B | Wrong

3) Applicant shall complete_____ hours training to become an insurance agent.

A) 50

B) 100

C) 30

D) 25

Correct Option: A | Your Answer: A | Right

4) Insurance agent represents the_____

A) Insurance company

B) Sub-agent

C) Co-agent

D) Broker

Correct Option: A | Your Answer: D | Wrong

5) Licence to work as an insurance agent is issued by____

A) General Insurance Corporation (GIC)

B) Insurance Regulatory & Development Authority (IRDA)

C) State Bank of India (SBI)

D) Post office

Correct Option: B | Your Answer: A | Wrong

6) Agent's licence is to be renewed

A) Every year

B) After 5 years

C) After 3 years

D) After 15 years

Correct Option: C | Your Answer: B | Wrong

7) Identify the statement which is not correct. Insurance agent should ______

A) Indicate the scale of commission if asked by the customer

B) Share the commission by way of rebate

C) Disclose his licence on demand

D) Indicate the premium to be charged

Correct Option: B | Your Answer: C | Wrong

8) _____ is the fees payable to the Authority for issue / renewal of licence to Act as an insurance
agent or composite insurance agent.

A) 250

B) 150

C) 520

D) 100

Correct Option: A | Your Answer: D | Wrong

9) The Authority may issue duplicate licence in case it is _____

A) Lost

B) Destroyed

C) Mutilated

D) All of the above

Correct Option: D | Your Answer: B | Wrong

10) If an agent is found guilty of criminal misappropriation the designated person will_____

A) Cancel the licence

B) Issue a duplicate licence

C) Renew the existing licence

D) Take some fees from the agent

Correct Option: A | Your Answer: C | Wrong

1) In HLV method it takes into account:

A) Future value of present earnings

B) Present earnings

C) Only Future earnings

D) Present value of future earnings

Correct Option: D | Your Answer: C | Wrong

2) Mr. X is earning rs.60000/- per month. His personal expenses are rs.10,000/-. Net dependency to
the family is rs.50000/-. Suppose the rate of interest is 10% (expressed as 0.10) what will be the
hlv?

A) Rs.300,000

B) Rs.600,000

C) Rs.500,000

D) Rs.10,00,000

Correct Option: C | Your Answer: D | Wrong

3) Why life insurance is not a contract of indemnity?

A) Human vale cannot be assessed

B) Human being is an asset and can be assessed

C) Human being does not generate income

D) None of the above.

Correct Option: A | Your Answer: C | Wrong

4) If charging premium is linked with age, what would happen?

A) Unhealthy people would drop out

B) Healthy people would drop out

C) Both healthy/ unhealthy people drop out

D) No burden since at early he pays less premium

Correct Option: B | Your Answer: B | Right

5) What is The Effect Of Premium Rate Under The Concept ˜Level Premium'?

A) Change every year of the policy period

B) Remains constant throughout policy period

C) It is not related to age of the proposer

D) Premium reduces at the later years

Correct Option: D | Your Answer: C | Wrong

6) Under Level Premium, The Premiums Paid In The Earlier Years Of Policy Are:
A) More than age-wise premium

B) Less than age-wise premium

C) Equal to age-wise premium

D) More than the sum assured

Correct Option: A | Your Answer: A | Right

7) Cash Value Element Under Level Premium Represents:

A) Expenses

B) Income

C) Savings

D) Surplus

Correct Option: C | Your Answer: D | Wrong

8) Under the principle of mutuality the funds of various individuals are:

A) Separated

B) Divided

C) Subtracted

D) Pooled

Correct Option: D | Your Answer: B | Wrong

9) The Funds Flow In The Principle Of Diversification Move:

A) One source to many destinations

B) From many sources to one destination

C) Both are correct

D) Both are wrong

Correct Option: A | Your Answer: A | Right

10) In what respect insurance can be distinguished from other financial instructions?

A) Interest yielding point of view

B) Safety point of view

C) Liquidity point of view

D) Risk cover point of view.

Correct Option: D | Your Answer: D | Right

1) Which Of The Following Statement Is Correct?

A) Financial planning is nothing but saving in financial instruments

B) Identifying the future goals and financing them is financial planning

C) Financial planning is nothing but managing income and expenditure

D) Backing the financial needs with bank loans or by selling assets.

Correct Option: B | Your Answer: A | Wrong

2) Which One Of The Following Is A Long Term Goal?

A) Purchase of a TV

B) Vacation travel

C) Retirement provision

D) Set up a family

Correct Option: C | Your Answer: B | Wrong

3) What Do You Understand By The Term Empty Nester?

A) Your treasury is empty

B) You soul is empty without any desires

C) Children migrated to other places for work

D) Children are still dependent up on you

Correct Option: C | Your Answer: C | Right

4) What Are The Priority Needs Of A Person Aged In Between 28-35 Years?

A) Death over/ Health/ children’s education

B) Purchasing a car

C) Risk taking Investment

D) Eat, Drink and enjoy

Correct Option: A | Your Answer: D | Wrong

5) What Is The Investment Style Of A Progressive Risk Profile?

A) Accumulation

B) Spending

C) Gifting

D) Consolidation

Correct Option: D | Your Answer: D | Right

6) What Is The Amount Allowed As Savings Deduction Under Income Tax Act During This Financial
Year?

A) Rs.2,00,000
B) Rs.1,50,000

C) Rs.1,00,000

D) Rs.2,50,000

Correct Option: B | Your Answer: C | Wrong

7) An Investment Is Said To Be Good When It Provides:

A) Liquidity when needed

B) Tax benefits

C) Risk tolerance

D) All are correct

Correct Option: D | Your Answer: NA | Wrong

8) What You Mean By Diversification In Investments?

A) Picking out good investments

B) Withdrawing all investments and re-invest in other savings

C) Spreading investment in various instruments to reduce the risk

D) Placing investments in high risk category

Correct Option: C | Your Answer: B | Wrong

9) Contingency Products Life Insurance Deals With:

A) Protection against sudden large losses

B) Protection against known present losses

C) Protection against business losses

D) Protection against speculative losses

Correct Option: A | Your Answer: A | Right

10) If You Are Not Able To Save For Future Contingencies What Will You Do?

A) I take loans and save

B) I take risk to work more and save

C) Depend on the society

D) Sacrifice some enjoyments and save.

Correct Option: D | Your Answer: B | Wrong1) What Is A Product In Terms Of Insurance?

A) Commodity

B) A Thing

C) A Plan
D) An item.

Correct Option: C | Your Answer: C | Right

2) From a marketing point of view a product is a bundle of attributes. It means:

A) All products are tied up and bundled

B) A product that cannot be distinguished

C) The product is attributed to be not good

D) Same category of product with different features.

Correct Option: D | Your Answer: D | Right

3) Which One Of The Following Statement Is Correct?

A) Life Insurance protects the human being

B) Life Insurance replaces the human being

C) Life Insurance protects economic value of human being

D) Life Insurance creates fear in the minds of insuring public

Correct Option: C | Your Answer: A | Wrong

4) What Do Mean By A Rider?

A) It provides a supplementary benefit

B) It is nothing but riding on a horse

C) It constricts the scope of the policy

D) It is unbundled feature

Correct Option: A | Your Answer: B | Wrong

5) A term insurance policy also comes handy as income replacement plan--clarify:

A) On death of insured lump sum amount is paid to dependants

B) It provides alternative policy to dependents

C) It provides a series of monthly/quarterly etc. payments to the family

D) It provides income to the nominee till she is alive

Correct Option: C | Your Answer: C | Right

6) Mr. X has taken a term assurance plan for rs.5,00,000/-. He lives Upton the end of policy term.
How much he will get under the policy?

A) Rs.5,00,000

B) Rs.500000+ Bonus

C) Rs.500000 less expenses

D) Nothing

Correct Option: D | Your Answer: A | Wrong

7) The premium under term assurance plan is very cheap – why?

A) There is a saving element

B) It is a pure risk premium –no savings

C) The policy is offered for less sum assured

D) The policy is not bundled

Correct Option: B | Your Answer: C | Wrong

8) A term assurance policy can be converted into:

A) Whole Life Policy

B) Endowment Policy

C) Both are correct

D) Both are wrong.

Correct Option: C | Your Answer: C | Right

9) Is It Necessary To Produce Fresh Evidence Of Insurability While Opting For Conversion Of Term
Assurance Plan Into Other Plans?

A) Necessary

B) Not necessary

C) both are wrong

D) Both are correct

Correct Option: B | Your Answer: D | Wrong

10) What Do You Understand About Increasing Term Assurance?

A) Sum assured increases at stated intervals

B) Sum assured decreases at periodical intervals

C) Sum assured fluctuates on fixed intervals

D) None is correct.

Correct Option: A | Your Answer: C | Wrong

1) Inter-Temporal Allocation Of Funds Means:

A) Time bound investment

B) Yield bound investment

C) Risk bound investment

D) Safety bound investment

Correct Option: A | Your Answer: C | Wrong

2) Higher the Return For A Given Level Of Risk

A) Less efficient investment

B) Marginal yield investment

C) More efficient investment

D) Average investment

Correct Option: C | Your Answer: B | Wrong

3) What are the limitations on rate or return in life insurance policy compared to other
investments?

A) Return is known at the end of contract.

B) Costs of insurer are not disclosed

C) No saving element in some policies

D) All are correct

Correct Option: D | Your Answer: A | Wrong

4) Unbundling Product Means:

A) Combination of protection and savings

B) Separation of protection and savings

C) Separate the pooling of funds

D) Merge the pools to form common fund

Correct Option: B | Your Answer: C | Wrong

5) What the Flexibility Concept In Unit Linked Insurance Plans:

A) Choice of investment is the policyholder

B) Premium payment option

C) Surrender value is more

D) All are correct

Correct Option: D | Your Answer: A | Wrong

6) How The Premium Is Apportioned In Unit Linked Insurance Policy?

A) Towards fund management expenses

B) Towards covering death risk

C) Towards investing in funds

D) All are correct

Correct Option: D | Your Answer: C | Wrong

7) Which One Of The Following Is Correct?

A) Equity fund means Government bonds

B) Balanced fund means equity plus Govt. Bonds

C) Debt fund means Share market

D) None are correct.

Correct Option: B | Your Answer: B | Right

8) What Is A Free Asset?

A) Allocated from surplus funds

B) Used for growth and expansion

C) Both are wrong

D) Both are right

Correct Option: D | Your Answer: A | Wrong

9) How The Death Risk Is Treated On The Death Of Policyholder In Ulips?

A) Sum assured is paid

B) Fund value is paid

C) S.A. of Fund value whichever is higher is paid

D) S.A. or Fund Value  whichever is lower is paid

Correct Option: C | Your Answer: D | Wrong

10) All of the following is true regarding ULIP's EXCEPT:

A) Unit holder can choose between different kind of funds

B) Life insurer provides guarantee for unit values

C) Units may be purchased by payment of a single premium or via regular premium payments.

D) ULIP policy structure is transparent with regards to the insurance expenses component

Correct Option: B | Your Answer: A | Wrong

1) Expand MWP Act:

A) Martial Women Provisions Act.

B) Married Women’s Property Act

C) Missile Wrapping Program Act

D) Military Warriors Pension Act

Correct Option: B | Your Answer: C | Wrong

2) Which one of the following is not correct in connection WIH MWP act, 1874?

A) Wife and/or legitimate children are covered

B) Wife, children, and parents are covered

C) Minor children are not covered

D) Brothers/ sisters also are covered

Correct Option: A | Your Answer: A | Right

3) Who Take S The Policy On HISA Own Life For The Benefit Of His Wife And Children Under MWP
Act?

A) A married person

B) A divorced person

C) A widowed person

D) All are correct

Correct Option: D | Your Answer: D | Right

4) Policy monies under MWP act would be payable to:

A) Nominee

B) Guardian

C) Trustee

D) Assignee

Correct Option: C | Your Answer: C | Right

5) What is the purpose of key man insurance?

A) Business loss due to negligence of key man

B) Cash loss caused by accountant who holds key of cash box

C) Business loss due to death/incapacity of key man

D) Business loss when the peon did not lock the premises.

Correct Option: C | Your Answer: A | Wrong

6) Who can be a key man in a business organisation?

A) A Director
B) A Partner

C) A key salesperson

D) All are correct

Correct Option: D | Your Answer: A | Wrong

7) What is the criteria for fixing sum assured under key man insurance?

A) Profitability of the company

B) Unexpected loss to the company

C) Key persons own income

D) Income loss due to negligence of key man

Correct Option: A | Your Answer: C | Wrong

8) Mortgage redemption fund can be compared to:

A) Increasing term assurance

B) Decreasing Term Assurance

C) Loan Protector Policy

D) All are correct

Correct Option: B | Your Answer: A | Wrong

9) Which one of the following statement is correct in regard to MWP act policy?

A) The Policy can be attached by a Creditor

B) The policy can be surrendered

C) The policyholder can change the trustee

D) The policy can be assigned

Correct Option: C | Your Answer: A | Wrong

10) If The Children Are Minors The Claim Money Is Paid To A TRUSEE In MWP Act Policy. If Children
Are Minors In Life Insurance To Whom The Claim Money Is Paid?

A) To the children

B) To the mother of the children

C) To the guardian

D) To the appointee named by the insured

Correct Option: D | Your Answer: D | Right

1) Premium Mentioned In The Insurer's Premium Tables Is Called

A) Pure premium
B) Risk Premium

C) Office Premium

D) Provisional premium

Correct Option: C | Your Answer: C | Right

2) Premium can be paid in:

A) Lump sum (single)

B) Installments

C) First few years

D) All are correct

Correct Option: D | Your Answer: A | Wrong

3) Insurers Generally Allow Rebate In Mode Of Premium On

A) Yearly /half-yearly premiums

B) Monthly premiums

C) Any mode of premium

D) All are correct

Correct Option: A | Your Answer: C | Wrong

4) Extra Premiums Are Charged For:

A) Sub-standard risk

B) For Extending DAB

C) Hazardous occupation

D) All are correct.

Correct Option: D | Your Answer: C | Wrong

5) Premiums are calculated primarily basing on what factors?

A) Death rate

B) Interest rate

C) Office expense

D) All are correct

Correct Option: D | Your Answer: C | Wrong

6) Give the correct answer:

A) Increase in death rate adversely affect profits

B) Increase in interest rate adversely affects profits

C) Decrease in Office expenses adversely affect profits

D) None of the above

Correct Option: A | Your Answer: A | Right

7) What is risk premium?

A) It is the more than the mortality rate

B) It is less than the mortality rate

C) It is sufficient to meet the mortality rate

D) It is the average death rate of various ages.

Correct Option: C | Your Answer: C | Right

8) What is the presumption in calculating risk premium?

A) Expected death rate of a age group within a year

B) Expected death rate of an age group during policy period

C) Expected death rate of all age groups within a year

D) Expected survival rate of an age group within a year

Correct Option: A | Your Answer: B | Wrong

9) What is the basis of arriving net premium?

A) Future value of present claims

B) Present value of future claims

C) No. of claims expected in a year

D) Amount required to pay the claims

Correct Option: B | Your Answer: D | Wrong

10) Net Premium Is Loaded With -----------------------To Arrive At Gross Premium:

A) Offices expenses

B) Profit margin

C) Bonus loading on ‘par’ policies

D) All are correct.

Correct Option: D | Your Answer: A | Wrong1) A prospectus helps the insuring public:

A) To have knowledge of products offered

B) To know details of the serving agents

C) To know about the insurance company

D) All are correct

Correct Option: A | Your Answer: A | Right

2) What Do You Mean A Proposal?

A) Application seeking insurance

B) An offer requesting grant of insurance

C) Both are correct

D) Both are wrong

Correct Option: C | Your Answer: B | Wrong

3) Which Of The Following Statements Is Correct?

A) Proposal must be written by the proposer himself

B) Proposal should be written by the agent

C) Proposal must be completed by the insurer

D) All are wrong

Correct Option: D | Your Answer: C | Wrong

4) When A First Premium Receipt Is Issued?

A) On processing the proposal

B) Once the risk assessment is over

C) Once the proposal accepted

D) All are correct

Correct Option: C | Your Answer: D | Wrong

5) Issue Of First Premium Receipt Denotes:

A) Insured is on risk

B) Insurers are on risk

C) Agent is on risk

D) All are correct

Correct Option: B | Your Answer: B | Right

6) Which Of The Following Statement Is Correct?

A) Policy is the evidence of insurance contract

B) Proposal is the evidence of insurance contract

C) Policy can be issued without a proposal

D) Proposal is not binding on insurers

Correct Option: A | Your Answer: C | Wrong

7) A Policy Document Is One:

A) A stamped document

B) Legally enforceable

C) Policy wording should be referred in the event of dispute

D) All are correct

Correct Option: D | Your Answer: D | Right

8) Grace period allowed for payment of premium under life insurance is:

A) 30 days only

B) 31 days

C) one month or 31 days

D) 2 months

Correct Option: C | Your Answer: A | Wrong

9) When a policy is deemed to have been lapsed?

A) If premium is not paid within grace period

B) If the premium is not paid on due date

C) If the original policy is lost

D) If the premium cheque is bounced

Correct Option: A | Your Answer: A | Right

10) Insurers Allow Reinstatement Of Lapsed Policy Subject To:

A) There is no increase in the risk

B) Revival if opted within 5 years

C) All premiums due are paid

D) All are corrct

Correct Option: D | Your Answer: B | Wrong

1) Which one of the following statement is correct?

A) Underwriting is a process of assessing level of risk in each new entrant

B) U/W is to ensure every new entrant into the pool has similar exposure to the risk as the others

C) Both are correct

D) Both are wrong

Correct Option: C | Your Answer: B | Wrong

2) What Is Anti-Selection?

A) Insurers issuing policy without exercising selection

B) Agent did not collect risk features of insured

C) Medical Report is not impartial

D) All the above are correct.

Correct Option: A | Your Answer: A | Right

3) Equity Among Risks Means:

A) Share market

B) Treating all the proposals equally

C) Placing similar degree of risk in the same premium class

D) All are correct

Correct Option: C | Your Answer: C | Right

4) Why Insurers Classify The Risks?

A) Because the exposure to risk differs from individual to individual

B) Because the risk of death is common to all individuals

C) Because every proposer has capacity to pay the premium

D) None of the above

Correct Option: A | Your Answer: D | Wrong

5) Select The Correct Statement:

A) Preferred risks involve more degree of exposure

B) Declined lives pose extra mortality rate

C) Substandard lives consist less degree of hazard

D) All are correct

Correct Option: D | Your Answer: A | Wrong

6) Agent's Confidential Report Shall Reflect:

A) Positive features of the proposer (health/family history)

B) Negative features of the proposer (bad habits)

C) Moral hazard of the proposer

D) All the above

Correct Option: D | Your Answer: B | Wrong

7) When Lien Is Applied?

A) The Proposer might have recovered from a serious ailment

B) The possibility cannot be ruled out that the he may die due to relapse within a given period

C) For that period the sum assured gets reduced by a certain percent

D) All are correct

Correct Option: D | Your Answer: C | Wrong

8) Under non-medical underwriting there are restrictions on:

A) Age of the proposer

B) Plans offered

C) Sum assured

D) All are correct

Correct Option: D | Your Answer: D | Right

9) What Are The Sources Of Occupational Hazards?

A) Accident: Engaging in dangerous occupation – Ex: Circus Artists / Film Stunt artists

B) Health Hazard – Persons working in chemical factory often are exposed to health problems

C) Moral Hazard – A politician with criminal intent – Intoxicating lifestyle of superstars

D) All are correct

Correct Option: D | Your Answer: D | Right

10) What Is The Impact Of Family History On A Proposer?

A) Heredity: Certain diseases can be transmitted from one generation to another – Ex: Cancer

B) Longevity: If the ancestors lived long, the general tendency is children also live long

C) Environment: location where the family lives may cause infections or other dangers

D) All are correct

Correct Option: D | Your Answer: C | Wrong

1) A Claim Is A -----------On The Insurer To Make Good His Promise Under The policy:

A) Offer

B) Demand

C) Complaint

D) None

Correct Option: B | Your Answer: B | Right

2) Select the one--which is a claim in the following:

A) Survival
B) Revival

C) Renewal

D) All are correct

Correct Option: A | Your Answer: C | Wrong

3) In money back policies certain portion -----------is refunded at fixed intervals:

A) Premium

B) Sum assured

C) Claim money

D) None

Correct Option: B | Your Answer: B | Right

4) If the policyholder survives till the plan's entire term it is called it is a --------claim.

A) Death claim

B) Surrender claim

C) Maturity claim

D) All are correct

Correct Option: C | Your Answer: C | Right

5) When a death claim occurs within 3 years it is called:

A) Prudent claim

B) Non-early claim

C) Provisional claim

D) Early claim

Correct Option: D | Your Answer: B | Wrong

6) Insurers repudiate the death claim if?

A) Good faith is missing

B) Event is not covered

C) Fraud is involved

D) All are correct

Correct Option: D | Your Answer: A | Wrong

7) A missing person will be presumed to be dead only after:

A) 5 YEARS

B) 10 YEARS
C) 7 YEARS

D) 3 YEARS

Correct Option: C | Your Answer: D | Wrong

8) Under section 45 of insurance act, insurer cannot question the proposal after ------years on the
statements made in the proposal:

A) 2 YEARS

B) 5 YEARS

C) 1 YEAR

D) NONE ARE CORRECT

Correct Option: A | Your Answer: B | Wrong

9) As per IRDA-guidelines, insurer should ask all the claim papers at one time and within -------------
days.

A) 30 DAYS

B) 10 DAYS

C) 20 DAYS

D) 15 DAYS

Correct Option: D | Your Answer: B | Wrong

10) The Decision Of Admission Or Repudiation Should Be Made -----------Days Of Receipt Of All
Claim Papers.

A) 2 MONTHS

B) 15 DAYS

C) 30 DAYS

D) 45 DAYS

Correct Option: C | Your Answer: B | Wrong

1) Nationalization of Life Insurance took place in the year

A) 1965

B) 1942

C) 1956

D) 1960

Correct Option: C | Your Answer: C | Right

2) Malhotra Committee was setup in the year

A) 1993
B) 1990

C) 1985

D) 2014

Correct Option: A | Your Answer: B | Wrong

3) In 2014 IRDA was named as

A) IRDAE

B) IRDAI

C) IRDAU

D) IRDAC

Correct Option: B | Your Answer: D | Wrong

4) The chance of loss is called

A) PERIL

B) RISK

C) POOLING

D) ASSET

Correct Option: B | Your Answer: B | Right

5) which of the following methods help in reducing the frequency and size of losses:

A) Educating and training

B) Environmental changes

C) Changes in dangerous or hazardous operations

D) All the above

Correct Option: D | Your Answer: C | Wrong

6) ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT comprises of

A) Pooling of resources

B) Policyholder benefit

C) Capital protection

D) All of the above

Correct Option: D | Your Answer: NA | Wrong

7) Motor Vehicles Act was passed in the year

A) 1988

B) 1948
C) 1923

D) 1991

Correct Option: A | Your Answer: B | Wrong

8) Future Generali India Insurance Co. Ltd. Is a

A) Life Insurance company

B) General Insurance company

C) Both of the above

D) None of the above

Correct Option: B | Your Answer: A | Wrong

9) what is the first Indian life insurance company formed in 1870 at Mumbai?

A) Triton Insurance Co. Ltd.

B) Oriental Life Insurance Co.

C) Bombay Mutual Assurance Society Ltd.

D) None of the above

Correct Option: C | Your Answer: C | Right

10) what is the first non life insurance?

A) Triton Insurance Co. Ltd.

B) Oriental Life Insurance Co.

C) Bombay Mutual Assurance Society Ltd.

D) None of the above

Correct Option: A | Your Answer: A | Right

1) ___ is the basis of an insurance contract.

A) PROPOSAL FORM

B) policy document

C) premium receipt

D) None of the above

Correct Option: A | Your Answer: B | Wrong

2) The important, essential and relevant facts of the risk required for underwriter are called

A) declarations

B) product details

C) material facts
D) None of the above

Correct Option: C | Your Answer: C | Right

3) A person has taken Family floater policy for Rs.4,00,000/-covering self, wife, and two children.
His wife underwent major kidney transplantation operation and incurred Rs.5,00,000/-. How much
the insurance company would pay?

A) Insurer would pay Rs.1,00,000 on per head basis.

B) I am giving a policy which meets his insurance needs. There is no problem.

C) I hope a policy for Rs.10 to 15 Lakhs would be more reasonable in this case.

D) I get more commission and therefore proceed with his demand.

Correct Option: C | Your Answer: D | Wrong

4) is the form which is to be completed for securing an insurance policy

A) Proposal Form

B) policy document

C) premium receipt

D) None of the above

Correct Option: A | Your Answer: A | Right

5) Scrutinizing the proposal and deciding about acceptance is known as

A) declaration

B) underwriting

C) Proposer decision

D) None of the above

Correct Option: C | Your Answer: B | Wrong

6) Cover note is a stamped document.TRUE or FALSE

A) 1

B) 0

C) BOTH are correct

D) Both are Incorrect

Correct Option: B | Your Answer: A | Wrong

7) The validity of the cover note is usually for

A) 15 days

B) 30 days

C) 45 days
D) 60 days

Correct Option: A | Your Answer: B | Wrong

8) ___ is a term of a contract which is collateral or subsidiary to the main purpose of the contract.

A) Proposal Form

B) Warranty

C) Asset

D) None of the above

Correct Option: B | Your Answer: C | Wrong

9) Most of general insurance policies are issued for a period of ----- months

A) 12

B) 24

C) 6

D) None of the above

Correct Option: A | Your Answer: D | Wrong

10) An authority established either by the company or by the government for the quick redressal
of grievances is known as

A) IRDA

B) Insurance company

C) Ombudsman

D) None of the above

Correct Option: C | Your Answer: A | Wrong

1) ___ cover is a type of insurance coverage that pays for medical and surgical expenses that are
incurred by the insured.

A) Life

B) Motor

C) Marine

D) Health

Correct Option: D | Your Answer: A | Wrong

2) Health insurance is important mainly for

A) Providing for financial assistance by paying medical expenses

B) Preserving the savings of an individual

C) Both are correct

D) Both are incorrect

Correct Option: C | Your Answer: B | Wrong

3) ___ play vital role in designing suitable products to be offered to each customer segment.

A) Life styles

B) Premium paying capacity

C) Health status

D) All of the above

Correct Option: D | Your Answer: C | Wrong

4) Policy covering proposers at a young age for their post-retirement medical costs is

A) Overseas Mediclaim policy

B) Bhavishya Arogya Policy

C) Jana Arogya Bima policy

D) None of the above

Correct Option: B | Your Answer: B | Right

5) Jana Arogya Bima policy is for the

A) Poor people

B) Rich people

C) Middle Class people

D) Company Workers

Correct Option: A | Your Answer: D | Wrong

6) Government schemes like RSBY (Rashtriya Swasthya Bima Yojana) covering very poor sections of
the population come under

A) Individual cover

B) Mass policies

C) Group cover

D) All of the above

Correct Option: B | Your Answer: B | Right

7) IRDA issued Guidelines on standardization in health insurance in

A) 2005

B) 2010

C) 2013
D) 2014

Correct Option: C | Your Answer: B | Wrong

8) The --------- policy is earliest standard health product that remained in the market for a long
time.

A) Life

B) Motor

C) Marine

D) Mediclaim

Correct Option: D | Your Answer: C | Wrong

9) _____ hospitalization means medical treatment for a period exceeding three days.

A) Day Care Treatment

B) Domiciliary

C) Inpatient

D) None of the above

Correct Option: B | Your Answer: C | Wrong

10) The duration of cover for pre hospitalization expenses is

A) 30 days

B) 60 days

C) 45 days

D) 90 days

Correct Option: A | Your Answer: D | Wrong

1) ___ is the process of assessing the risk appropriately and deciding the terms on which the
insurance cover is to be granted.

A) Underwriting

B) Risk

C) Insurance cover

D) None of the above

Correct Option: A | Your Answer: C | Wrong

2) Factors which affect chance of illness.

A) Age

B) Habits
C) Occupation

D) All of the above

Correct Option: D | Your Answer: A | Wrong

3) Insured taking health insurance not disclosing the fact that he will undergo a surgical operation
within a short time comes under

A) Physical Hazard

B) Moral Hazard

C) Both the above

D) None of the above

Correct Option: B | Your Answer: B | Right

4) Insurable interest refers to ____________.

A) Financial interest of the person in the asset to be insured

B) Each insurer’s share of loss when more than one company covers the same loss

C) The asset which is already insured

D) The amount of the loss that can be recovered from the insurer.

Correct Option: A | Your Answer: D | Wrong

5) Which of the following statements about medical underwriting is incorrect?

A) It involves high cost in collecting and assessing medical reports.

B) Current health status and age are the key factors in medical underwriting for health insurance.

C) Proposers have to undergo medical and pathological investigations to assess their health risk
profile.

D) Percentage assessment is made on each component of the risk.

Correct Option: A | Your Answer: A | Right

6) On the basis of occupation, the risks associated with the insured person may be classified into
--- groups.

A) 2

B) 3

C) 4

D) 5

Correct Option: B | Your Answer: D | Wrong

7) The premium during the peace period is

A) 50%
B) 100%

C) 150%

D) None of the above

Correct Option: C | Your Answer: C | Right

8) Premium during the prevailing warlike operations is

A) 250%

B) 300%

C) 350%

D) None of the above

Correct Option: A | Your Answer: A | Right

9) Which of the following factor does not affect the morbidity of an individual?

A) Gender

B) Spouse job

C) Habits

D) Residence location

Correct Option: B | Your Answer: A | Wrong

10) According to the principle of indemnity, the insured is paid for __________.

A) The actual losses to the extent of the sum insured

B) The sum insured irrespective of the amount actually spent

C) A fixed amount agreed between both the parties

D) The actual losses irrespective of the sum assured

Correct Option: A | Your Answer: C | Wrong

1) ___ is a 'witness' or 'evidence' of the contract of insurance.

A) Proposal

B) Policy

C) Renewal form

D) None of the above

Correct Option: B | Your Answer: B | Right

2) Who is the first stakeholder and ‘receiver of the claim’.

A) The insured

B) The Insurer
C) Agent

D) None of the above

Correct Option: A | Your Answer: C | Wrong

3) The health insurance loss ratio of various insurers ranges from

A) 65 % - 120%

B) 50 % - 100%

C) 70 % - 110%

D) None of the above

Correct Option: A | Your Answer: C | Wrong

4) Who among the following is not a stakeholder in insurance claim process?

A) Insurance company shareholders

B) Human Resource Department

C) Regulator

D) TPA

Correct Option: C | Your Answer: B | Wrong

5) The ---------is the standard diagnostic tool for epidemiology, health management and clinical
purposes.

A) TPAs

B) International Classification of Diseases (ICD)

C) Hospital

D) None of the above

Correct Option: B | Your Answer: B | Right

6) Treatment taken at home in India for a period exceeding 3 days for an ailment is known as

A) Inpatient hospitalization

B) Domiciliary hospitalization

C) Day-care treatments

D) None of the above

Correct Option: B | Your Answer: B | Right

7) The key functions of the Regulator are to----of insurance business.

A) regulate

B) promote
C) ensure orderly growth

D) All of the above

Correct Option: D | Your Answer: C | Wrong

8) Identity proof during the claim process of Health Insurane must be

A) Voters identity card

B) Driving license

C) Aadhaar card

D) Any of the above

Correct Option: D | Your Answer: B | Wrong

9) Which of the following document is maintained at the hospital detailing all treatment done to
an in-patient?

A) Investigation report

B) Settlement sheet

C) Case paper

D) Hospital registration certificate

Correct Option: C | Your Answer: C | Right

10) The amount of provision made for all claims in the books of the insurer based on the status of
the claims is known as ________.

A) Pooling

B) Provisioning

C) Reserving

D) Investing

Correct Option: C | Your Answer: B | Wrong