Professional Documents
Culture Documents
B. Taxable
D. Chargeable
3. Which of the following is not a stage in The Consumer Buying Decision process?
A. Problem recognition
C. Post purchase evaluation
B. Information search
D. Sales maximization
4. Generally, the policy owner will get _________________ upon the maturity of their policy.
A. Sum assured plus cash bonus
C. To increase the sum assured
Accidental losses
All losses
Physical hazards
Risks, the severity/frequency of which is within the control of the insured person
Page 1
Policy holder refusing a policy but accepting a similar policy with another company.
Agent misrepresentation facts to induce an insured to replace a policy.
Agent sharing a commission with the insured as an inducement to buy a policy.
Agent providing interim coverage between the application and the policy issue date.
10. There is a special form of bonus which is only payable when the policy becomes a claim after a
stipulated period. This bonus is _______________.
A. Maturity / Terminal
C. Special
B. Interim
D. Simple
11. Which of the following is not subject to the Income Tax Act 1967?
A.
B.
C.
D.
Employment Income
Dividends
Rents
Maturity proceeds from a life insurance policy
A. II only
C. I, II & III only
B. II & IV only
D. All of the above
B. I & II only
D. II & III only
14. A suitable table of health insurance premium rate meets all the following condition, EXCEPT:
A. Low loss ratio
C. Reasonableness in relocation to benefits
15. Typically, before an insurer will pay for Pre-Admission testing charges, the following criteria
must be met:
A.
B.
C.
D.
Page 2
When the confinement does not appear to bear a reasonable relationship to the diagnosis.
If any corrective surgery is contemplated.
When the confinement exceeds 30 days.
When the confinement is the result of a sickness rather than an injury.
18. If an act which is not within his authority is performed by an agent, and the principal agrees to
accept the same as having been done on his behalf, it is known as ___________.
A. Acceptance
C. Authorization
B. Ratification
D. Assignment
20. Under current Malaysian Tax regulations, a deduction up to a max of RM3000 in premium paid
for education, _______________ is allowable.
A. Or life insurance
C. Health or life insurance
B. Or medical insurance
D. Health or Personal Accident insurance
22. Nathan was hospitalized for 3 days in a private hospital this year. The hospital bill amount to
RM3000. This is his first claim on his hospital and surgical insurance policy this year. Given that
the policy has an annual deduction of RM1000, a co-payment requirement of 20%, and
assuming that the whole hospital bill is eligible for insurance reimbursement, how much will the
hospital & surgical insurance policy reimburse to Nathan?
A. RM2000
C. RM1600
B. RM1800
D. RM1400
23. Which section in the policy form introduces the parties to the contract and states that the
proposer has submitted an application for insurance including statements on health of the
insured person, first premium paid and agreement for subsequent premium payment as the fall
due?
A. The schedule
C. The proviso
B. Attestation
D. The preamble
Page 3
The types of extra risk that will remain constant from year to year.
The types of policy arrangement that provide an acceptable solution.
The types of risk which is present at the younger ages but will lessen in later life.
The types of risk that decreasing within duration and become more potent factor in failure to
survive.
Ethnicity
Marital status
Age
Foreign residence
Policy Loans
Automatic Premium Loan
Extended Term Assurance
Paid-up Policy
B. Retirement
D. Permanent disability
A fact which will influence a prudent underwriter in deciding whether to accept the risk.
A fact which was known by the insurer after negotiation.
A fact which was known by both the insurer and the insured.
All of the above.
Page 4
B. General Agent
D. Universal Agent
32. An insurance contract is a legally binding agreement between an insured and his insurer. As in
other commercial agreements, certain essential requirements have to be satisfied before the
insurance agreements can be legally binding.
Offer and Acceptance is one of the essential legal requirements in Insurance Contract.
Which statements are correct concerning Offer and Acceptance?
I.
Offer is usually made by a proposer when he submitting a completed and signed proposal
form to an insurer or his agent and the insurer may accept the proposal after accessing the
proposed risk.
II. The offer and acceptance must be voluntary
III. When the proposer disagrees on the original term, the insurer may offer to provide
insurance on different terms and it is called Counter-offer.
IV. The acceptance can be made by the proposer or the insurer.
A. I, II & III only
C. I, III & IV only
33. Risk of proper damage from earthquake, flood and typhoon is classified under:
A. Fundamental Risk
C. Speculative Risk
B. Particular Risk
D. Social Risk
34. The two most common expense participation methods found in major medical expenses
insurance policies are:
A. deductibles and co-insurance
B. co-insurance and co-payment
C. co-payment and deductibles
D. cashless and reimbursement
35. In life insurance, the claim amount is determined at the very beginning of the contract. Such
contracts are __________________ contracts.
A. Indemnity
C. Subrogation
B. Aleatory
D. Proximate
Page 5
Fire
Court Awards
Negligence
Revenue
B. II & IV only
D. I, II & IV only
37. Agent A was working with Company X. Then later Agent A changed to Company Y and brought
his customers to Company Y, what is this called?
A. Rebating
C. Concealment
B. Twisting
D. Misrepresenting
38. The charges for covering the cost of mortality alone is called ___________ and when the
charge is computed after taking account the elements of mortality and interest, it is called
_____________.
A. True premium, gross premium
C. Net premium, risk premium
39. The chance of dying in a year at a specified age is commonly termed as ____________.
A. Rate of morbidity
C. Rate of interest
B. Rate of mortality
D. Rate of surviving
40. Below are the criteria for a cashless Medical and Health Insurance EXCEPT:
A.
B.
C.
D.
41. .Mr. & Mrs. Chong both aged 70 and 60 respectively received income payment from Annuity
Company. The income will be paid as long as either one annuitant is alive. The income payment
shall cease upon death of the last annuitant. What type of annuity contract has the couple
acquired?
A. Deferred annuity
C. Last survivor annuity
42. Mr. Lim purchased a non- par whole life policy with RM 20,000 BSA and attached with an
Accidental Death Benefit Rider (RM 20,000 BSA). Mr. Lim met with an accident and pass away
but later prove that it happened due to drunk. How much compensation can his beneficiary get?
A. RM 20,000
C. RM 60,000
B. RM 40,000
D. RM 80,000
Page 6
43. There are various ways in which the policyholders share of surplus is distributed. Some of the
methods are :
I.
II.
III.
IV.
Guaranteed Bonus
Interim Bonus
Simple Reversionary Bonus
Compound Reversionary Bonus
A.
I, II & IV only
C. II, III & IV only
44. Which of the following documents are generally acceptable as proof of age by life offices in
Malaysia?
A.
B.
C.
D.
The death of the participant before the term of the takaful plan
The termination of the contract by the participant
The permanent total disability experienced by the participant
The survival of the participant to the end of the term of the takaful plan
B. 20 days
D. 30 days
47. Which of the following is the evidence of premium payment for the policyholder?
A. Official receipt
C. Premium notice
B. Proposal form
D. Acknowledgement form
29
61.80
30
63.00
31
64.10
32
64.85
33
65.95
Table 1: Premium Rates for Male Live on 10-Year Endowment Policy
Name
Date of Birth
Policy Commencement
Policy Sum Assured
Zurich confidential or proprietary information
Prepared by: Agency Training & Development
Page 7
48. Based on the above table, what is the premium per annum paid by En. Fatul?
A. RM 6,025.00
C. RM 6,300.00
B. RM 6, 180.00
D. RM 6,410.00
49. Which of the following are NOT the secondary functions of insurance?
I.
II.
III.
IV.
Cost stability
Source of capital
Stimulates business enterprise
Reduction of loss
B. I, II & IV only
D. None of the above
50. Mary had bought a 5-year term plan. She decided to pay the premium on 1st of January of every
year. However, she had faced some personal financial problem in 4th year and she paid the
premium on 4th February in the said year.
In the above-mentioned case, Marys insurance contract is considered as ________.
A. Lapsed
C. Illegal
51. A manufacturer who is worried about product liability lawsuit arising from one of his products
can avoid it by not manufacturing that product. This called ________.
A. Loss prevention
C. Risk transfer
B. Risk avoidance
D. Risk retention
53. Risks that are insurable must fulfill certain characteristics. The main characteristics are:
I.
II.
III.
IV.
financial value
large number of similar risks
catastrophic losses
reasonable premium
A. I & II only
C. I, II & IV only
54. The principle of ________ requires the insurer to restore the insured to the same financial
position as he had enjoyed immediately before the loss.
A. Subrogation
C. Indemnity
B. Contribution
D. Proximate cause
Page 8
55. Which of the following are true about aspects of Takaful operation?
I.
Participants of Takaful plans make contributions that will be accumulated in the Takaful
Fund that may be invested in areas acceptable to Syariah.
II. Profit sharing follows the principle of mudharabah.
III. Takaful business is not a contractual transfer of risk.
IV. The Takaful Company does not assume the risk.
A. I, II & III only
C. II, III & IV only
56. Which of the following responsible for the registration of life insurance agents in Malaysia?
A. PIAM
C. NAMLIA
B. AMLA
D. LIAM
B. Reinsurer
D. Insurance broker
58. Premium for individual medical and health insurance policies are usually
A. age banded and increase with age
B. age specified and decrease with age
C. age banded and decrease with age
D. age specified and increase with age
59. Which of the following are the roles of an insurance agent?
I.
II.
III.
IV.
A. I, II & IV only
C. II, III & IV only
B. Right to choose
D. Right to redress
Page 9
62. Self regulation has to be introduced by the insurance industry with the objective to:
I.
II.
III.
IV.
A. I & II only
C. I & III only
PIAM
IBAM
AMLA
LIAM
A. I & II only
C. I, II & III only
B. I & IV only
D. I, III & IV only
64. Stated below are the legal requirements of insurance contract EXCEPT:
A. Offer and acceptance
C. Utmost Good Faith
B. Consideration
D. Intention To Create Legal Relationship
B. General agent
D. Underwriting agent
66. Some of the duties imposed on an agent in addition to his express contractual obligations are
provided as follows EXCEPT:
A.
B.
C.
D.
By implied appointment
By implication of the law
By subsequent ratification of an authorized act
By statute
Page 10
70. There are _______ stages in the consumer buying decision process.
A. Three
C. Five
B. Four
D. Six
71. The long-term nature of the contract requires the insurer to adopt a cautious view of the many
factors that enter into the premium rate calculations. Principals amongst these factors are the
following:
I.
II.
III.
IV.
Mortality
Expenses
Rate of investment returns
Tax
B. I, II & IV only
D. All of the above
72. To have _______, the purchaser of a life insurance policy must stand to suffer a financial loss
on the death of the person on whose life the life insurance policy has been bought.
A. Insurable Interest
C. Material Interest
B. Monetary Interest
D. All of the above
73. The risks covered by life insurance can be grouped under the following:
I.
II.
III.
IV.
Premature Death
Permanent/Temporary disability
Retirement benefits
Financial Guarantees
B. I, II & IV only
D. All of the above
Page 11
75. _______ policy provide not only the payment of the face value of the policy upon the death of
the life assured during a fixed term of years, but also the payment of the full face amount at the
end of the said term if the life assured is living.
A. Whole Life
C. Endowment
B. Term
D. Annuity
Death benefit
Disability Benefit
Maturity Benefit
Surrender Value
77. Which of the following plans are generally in use as non-forfeiture provisions?
I.
II.
III.
IV.
B. I, II & IV only
D. All of the above
78. The insurer cannot deny liability on a policy after two years of its issue on the grounds of
misrepresentation or non-disclosure alone unless he can prove that such misrepresentation or
non-disclosure was made fraudulently by the insured. The statement refer to:
A. Suicide Clause
C. Reinstatement Clause
B. Incontestability Clause
D. Paid-up Clause
79. Which of the following documents are generally acceptable as proof of age by life offices in
Malaysia?
I.
II.
III.
IV.
International Passport
Certified extract from Baptism Register
School leaving certificate from Government or Government aided school
Extract from service record of Government, Semi Government, Public Sector undertakings
and reputed commercial firms.
B. I, II & IV only
D. All of the above
Ethnicity
Social Status
Age
Occupation
Page 12
81. To deal with sub-standard lives, the insurer usually employs any one of the following method:
I.
II.
III.
IV.
Increasing Premium
Decreasing Death Benefit
Alternative Policy Plan
Bonus Adjustment
82. Under financial underwriting, the proposal form will be scrutinized to look for the following:
I.
II.
III.
IV.
83. When the premium charge is computed after taking into account the elements of mortality and
interest, it is called the _________________.
A. Pure Premium
C. Risk Premium
B. Net Premium
D. Gross Premium
84. In calculating the tabular (gross) premiums for non-participating policies, the elements normally
taken into account are the following, except:
A. Mortality
C. Expenses
B. Interest
D. Bonus loading
85. Under this type of regular premiums, the premium payments cease on death and no deduction
is made from the claim amount.
A. True premiums
C. Periodical premiums
B. Installment premiums
D. Regular premiums
Personal particular
Details of insurance
Personal and family history
Occupation, residence, travel and hazardous pursuits
A. I, II & IV only
C. I, II & IIII only
87. When any adverse history of applicants health is revealed, what types of document will an
insurer normally required?
A. Medical report
C. Attending physicians report
Zurich confidential or proprietary information
Prepared by: Agency Training & Development
B. Agents report
D. Proposal form
Version: Jan 2013
Page 13
88. The section of policy which is signed by certain officers of the company authorized to do so is:
A. The Proviso
C. The Preamble
B. The Schedule
D. The Attestation
90. Section 161 of Insurance Act 1996 provides that a claim upon the death of policy owner must be
paid within how many days upon receipt of intimation of the claim?
A. 30 days
C. 15 days
B. 45 days
D. 60 days
91. Under Section 169 of Insurance Act 1996, the payment of claim can proceed to the proper
claimant without letters of probate or administration. Insurance may pay _________.
A.
B.
C.
D.
92. In the case of endowment insurance, the amount payable in the event the policyholder survives
to the end of the term of the contract is called ________.
A. Settlement Options
C. Probate of will
B. Maturity claims
D. Annuity
93. If the insurer has doubt in the validity of the documents furnished by the policyholder during any
claims, the insurer can _________.
A. Carry out an investigation
C. Void the policy
Mr.Lim
Date of birth
: 20 April 1972
Policy commencement date : 4 April 2004
Policy Sum Assured
: RM100,000
Page 14
B. RM4,410.00
D. RM4,600.00
Ms.Tan
Date of birth
: 21 January 1970
Policy commencement date : 1 April 2004
Policy Sum Assured
: RM100,000
Assuming female lives as 3 years younger, what is the premium per annum paid by Ms. Tan?
A. RM4,280.00
C. RM4,410.00
Age (nearest birthday)
28
29
30
31
32
33
B. RM4,360.00
D. RM4,520.00
Premium per RM1000 Sum Assured
60.25
61.80
63.00
64.10
64.85
65.95
B. RM6,180.00
D. RM6,410.00
97. What are the elements used in the principal of Actuarial Valuation of a life office?
I.
II.
III.
IV.
Distribution of Surplus
Interest
Valuation of Liabilities
Valuation of Assets
Page 15
99. The term life insurance used in the Code of Ethics and Conduct covers the following types of
insurance, EXCEPT:
I.
II.
III.
IV.
Annuities
Pension Contracts
Home-service
Permanent Health Insurance
B. III only
D. None of the above
Page 16
ANSWERS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
B
A
D
A
B
D
A
D
A
A
D
C
C
D
A
A
C
B
A
B
D
A
D
C
D
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
C
B
D
A
A
D
D
A
C
B
A
B
B
B
B
C
A
D
D
C
A
A
A
D
A
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
B
D
C
C
D
D
B
A
A
D
C
A
C
C
D
C
A
B
D
C
D
A
D
B
C
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
C
A
B
D
D
A
D
B
D
A
D
C
D
D
D
B
B
A
B
C
A
C
D
D
A
Page 17