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India IRDA General insurance Agent exam

Question answer tips guide
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1. GEN IMPORTAT QUESTIONS 2014 S
NO Questios Aswers
2.
1 Which association is formed under
Actuaries 2006 Institutes of Actuaries
3.
Which of the act deals with the risk of
the companies dealing with hazardous
substances Public liability act 1991
4.
In which year Public Liability
insurance act was passed 1991 4 In
which year ECGC (Export credit
Guarantee Corporation) is formed 1957
5.
Many companies for early and easy
claims settlement also form the separate
divisions known as Claim Hub
6.
In the case of disputes arising in
claim settlement who settles the claim
Arbitration 7 the event whose
Occurrence actually leads to the loss
Peril 8 Sum assured (S.A) largely depend
on Age and Financial conditions 9 Perils Specific event which might cause a loss.

10 In insurance contract the principal of
Utmost good faith aims to provide
information - Voluntary 11 The
intermediate who reach the insurance
Market most Agents 12 An agent is
responsible for his acts to the The
insurer 13 Health insurer and TPA works
on behalf of who in the claims
settlement of health insurance policies.
Non-life insurance 14 In the Public
liability policy if the claim of fatal
accident arises which document is also
needed? Police report 15 Premium
charged in general insurance company is
normally calculated for? 12 Months 16 In
the insurance contract "Uberrima Fides"
means? Meeting of minds 17 Which
section of the consumer act deals with
appealing in national commission?
Section 19 18 Training hours for
CA/CS/ICWA/MBA professionals
prescribed by IRDA 25 Hrs 19 In
insurance policies the premium charged
has to be paid? In advance 20 In the
case of Temporary Partial Disablement in
the personal accidents policies the

weekly amount paid is? Rs 1000/- per
week (max 3 week) 21 In the marketing
the win win situation arises when ?
Negotiation 22 To cover the Unlimited
liability for death, injury in the motor
insurance what type of insurance cover
is available? Motor third party insurnace
23 If any Unknown person forcefully
enters your premises for the purpose of
stealing, this type of risk is covered
under? Burglary Insurance 24 When theft
is done by employees /relatives then it is
not covered under? Burglary insurance
25 The replacement claim is made to the
complainants in reinstatement policy it is
? Insurer’s liability 26 Which principal
stops you from making profit out of
losses Indemnity 27 The replacement
value in case of Reinstatement policy is
calculated ___ less depreciation. Market
value 28 Premium calculated for short
duration Short period scales 29 what do
you mean by ethical behavior a behavior
with persons moral value 30 Insurance
works on the principal of sharing of
Losses 31 which type of risk are

This is done as a means of recovering the amount of the claim paid to the insured .insurable as in it only the chances of loss and insurance are to compensate for losses? Pure risk 32 The preliminary receipt in case of general insurance in the absence of policy which shows the risk cover? Cover note 33 In insurance the Revenue account. Insurer 40 Consumers protection act passed in _______. 35 If there are more than one arbitrator than decision will be ? Umpire appointed by both arbitrator 36 Earthquake fall under act of god peril Catastrophic Risk 37 Nomination fall under section 39 of insurance act 1938 38 Assignment fall under section 38 of insurance act 1938 39 To send renewal notice to the policyholders is the duty of __________. profit and loss account and balance sheet is signed by? Auditor 34 Arbitrator is appointed by Mutually by both parties. 24-Dec-86 41 ____________ is the right for an insurer to pursue a third party that caused an insurance loss to the insured.

form the third party . 15days 46 Overseas medical policy will start from ___________________ India.. the date to journey to back 47 If a merchandise kept his all jewelery in one place in the evening than he can Retention of risk 48 EAR Stands for? Erection all risk policy 49 ALOP Stands for? Advance Loss of Profits Policy 50 CPM Stands for? Contractor Plants & Machinery Policy 51 MLOP Stands for? Machinery Loss of Profits Policy 52 MCE Stands for? Marine Cum Erection Policy 53 CAR Stands for? Contractors All Risks Policy . Subrogation 42 IRDA Head office is located at? Hyderabad 43 If a property is mortgaged to bank than at the time of claim settlement claim will be paid to the Bank 44 Health insurance is a contract between Insured and ___________ Insurer 45 If there is no proposal form signed by the policyholder and information are provided in orally than insurer will consider the proposal on these information’s within…………….

2. Investment and protection 69 Which documents is necessary with the vehicle when driving on the road Vehicle insurance 70 For disputes regarding claims where we go to when our amount is 100 lakh ? State .7. 54 TPA Stands for? Third party administrator 55 SEBI Stands for? Securities and Exchange Board of India 56 III Stands for? Insurance institute of India 57 CBDT Stands for? Central Board of Direct Taxes 58 TAT Stands for? Turnaround time 59 IRDA Stands for? Insurance Regulatory Development Authority 60 IGMS Stands for? Integrated grievances management system 61 PIL Stands for? Public Interest Litigation 62 IDV Stands for? Insured declared value 63 GIBNA Stands for? General insurance Business nationalization 64 RTI Stands for? Right to information 65 RTO Stands for? Regional transport office 66 In how many categories surveyor and loss assessors defined? 7 classes 67 Insurance surveyor also undertakes the work of? Investigation 68 Insurance is taken for _________.

precious stones etc * Loss or damage to property whilst contained in the premises by fire. loss of passport etc happen he should contact to? Local Medical Advisor 79 what is Pure premium Premium sufficiently big enough to pay for losses only 80 Jewellery policy covers-gold . explosion. pearls. 73 Validity of cover note is usually for a period of a fortnight and rarely up to 60 DYAS 74 Rate is ________________ Not same as premium 75 On how many loss we can appoint the surveyor Rs 20000/.forum 71 If a person wants to start sale works then he wants to know about? Target market 72 Section 64 VB of the Insurance Act Premium has to be paid in advance. cash. air .76 Insurance company issue another card other than identity card Smart card for Cashless Facility 78 In overseas medi claim policy if the claim arise abroad. lighting Section -I * All risk cover when property is in the custody of insured/his partners Section II * All risk cover such property is in transit through registered post.silver ornaments..

provides for liability of the owner of the motor vehicles to pay compensation in certain cases on the principal of no fault how much is the compensation payable for death in such cases. Rs 100 Crore 82 In India the _____________ is empowered to regulate the insurance industry Central Legislature 83 the state commission president should be a ___________ High court judge 84 Which type of Fire Policy cover stock at various location under one sum insured? Floating policy 85 Section140 of the motor vehicles act 1988. Rs 25000 86 In case of motor Insurance which document is considered as the only evidence of existence of valid insurance by policeauthorities and RTO Certificate of Insurance 87 The sharing of a claim b/w two insurers is called ____________ Contribution 88 A . Section -IV 81 How much is the minimum requirement for the starting insurance business in India.freight Section -III * Cover for trade and office furniture and fitting in the premises against the risk.

subrogation claim is recovered from the third party and? Or which other party? Client's Insurers 89 After Independence how many year Non-Life company________ 25 Years 90 First Insurance Company In India which city. Two legs etc____________ which policy personal accident policy 92 Section 201 under _________ Termination of agency 93 Who is responsible to inform about the renewal of policy for insurer and intimate the expire date of policy? Insurer 94 Free look-in period 15 days 95 Investigation is done for which type of claim Non standard claims 96 If the premium is charged for short term for short duration policies then it is calculated on? Short seals 98 What is as same as Workmen Compensation? Contractor's Compensation 99 Provision for Arbitration does not apply in? Marine 100 What is the full form of AML/CFT? Anti money laundering/counterfoil terrorism 101 When IRDA is formed ? 2000 102 In which section of IRDA 2000 . Calcutta 91 If any person loses Two eyes.

clients renewal etc what does it shows? Responsiveness 112 The Premium in fire insurance is calculate considering (i) market value(ii) . 110 For insurance an asset must have_____________value? Economic 111 If an agent has full knowledge regarding the product .its roles and duties are mentioned? Section 14 103 Fatal Act was passed in which year? 1855 104 Redressel of Public Grievance Rules 1998 passed on? 11 Nov 1998 105 What does in contract act the word caveat emptor means? Let the buyer be aware 106 Duty of Disclosure is an_________in the insurance contract Obligation 107 When more than one members of the family are covered in a single plan which plan benefits them at the time of medical expenses? Health 108 Under which section of Jewelers block policy the immovable property in the premises covered? section 1 109 If there is situation of "Particular risk in the Insurance policy which of the following is not covered? Speculative risk 8. 3.

cover issued worldwide on___________basis. once. frequent 117 In personal accident.reinstatement value(iii)sum insured (I) & (II) 113 Which of the following work also done by surveyor? Investigation 114 Under which standalone policy is issued? Health 115 If the claim is filled due to loss by cyclone which report in addition is required with claim form? Meterialogical report 116 Premium on annual policies is charged________________wheras ______________on short term policies. the insured's attention is to be drawn to revise___________________insured(i. 24 hrs 118 If any person plan for his risk according to "self risk" mechanism then it is? Risk reduction 119 If risk is not transferred by an individual and he decided to keep the same what does it shows? Risk retention 120 In motor insurance renewal.e the insured value of vehicle) in the light of current requirements? Sum 121 At the time of claim in motor insurance _____________is also considered while .

repair and maintenance it is? Running expenses 127 While giving storage policy which of the following is not considered? Profit and sale of goods 128 The detail in the proposal form regarding the customer's age and other features is beneficial to whom? Insurer 129 In today’s time when one has_____________individuals increase theeeds of householders insurance? High net worth 130 Which of the following is only a works as a register for keeping clients information? Prospective client .calculating age of vehicle? Depreciation 122 In considering the rate mechanism in premium calculation is called? Ratemaking 123 In calculating the premium on occupation basis risk is charged_______dependent on hazards? risk 1.3 124 Surveyor is performing his duties taking care of the needs of? Interest of insurer and Insured 125 Under which section of insurance act 1938 there is mention of social security and also emphasis on need of insurance? Section 32 126 If the vessel is spending on storage.2.

the policy document provided on? Vernacular language 139 What type of risk is not insurable ? Certain 140 NBFC stand for Non banking Finance corporation 141 General insurance business (nationalization) act pass in the .data 131 In cashless facility some insurance companies ask to inform________________before hospitalization? 48 hrs 132 Where a proposal form is not used the insurer shall record the information obtained orally or in writing and confirm it within period of ? 15 Days 133 Ombudsman is appointed under Public grievance rules 134 Total disability and death covers accident insurance are available in ____________ Accident Insurace 135 When any person has long lasting interest in any asset or we can say attached till death then it shows he has? Insurable Interest 136 No claim bonus in motor insurance recognizes which of the following? Moral hazard 137 To start a career in sales the salesman should start as? Agent 138 Under micro insurance policy.

151 Risk determines the _____________ of risk. 148 First Insurance Company is _____________________ Oriental Life Insurance Co. 147 A Sale is act of giving product in return of ______________ Premium. 153 In cashless facilities the insured contact to Hospital network 154 _____________ is work for both life and general Insurance . level 152 Surveyor can appoint under section 64UM for amount __________________ Rs 20. 149 Insurance Works on the principal of ___________________ sharing Risk. 146 Total disability Refers to Permanent total disability. Ltd.year 1972 142 Agent who have Both license General and life is called Composite agent 143 Insurance is a contract between Insurer & insured 144 Surveyor is appointed for ____________________ of the property investigation and loss assessment 145 Public liberty act covers _______________________ No fault liability. 150 Documentation is require for understanding between the _________________ insured and insurer.000/-.

163 .company Composite agent 155 First non life insurance company comes in _____________________ 1956 156 Many complicated surgical procedures have been simplified and do not require more than a day's stay in the hospital or less than 24 hours at times. 30 Days 158 Fishing vessels . Loss of hearing in both ears 162 Renewal Notice for motor insurance is issued by ____________ . Personal accident policy 160 _____________ is paid for the property by the insure under reinstatement policy Replacement 161 _____________ is not considered as permanent total disablement. selling vessels. cataract etc.g. lithotripsy. dredger and vessels in the course of construction fall under ___________Hull insurance 159 _____________ covers Death arising out of accident. Centre where such procedures are carried are known as.. Day Care Centre 157 After state forum decision __________ given to the insure company for the final decision. for e. the insurer before expiry of the policy.

Encoding ._____________ is not covered under standard fire and special perils policy Earthquake 164 Communication process: Source . .Decoding – Receiver.Channel .

From Sashi Publications. B. Non-life insurance in both cases. D. ownership. C. C. Â 3. Life insurance for health and non-life insurance for personal accident. certify a loss when claims are submitted. The main role of an underwriter in a non-life insurance company is normally to A. Â . The answers are marked in bold. Non-life insurance for health and life insurance for personal accident. needs. negotiate with the industry regulator. B. Kolkata 1. The concept of insurance involves a transfer of A. Rakesh recently bought a health insurance policy and a personal accident policy. C. Life insurance in both cases.Sample solved Question Papers for IRDA 50 hours Agents Training Exam. D. B. 2. D. assess the acceptability of particular risks. design the structure of the products to be offered. What main section(s) of the insurance market do these products normally fall into? A. liability. risk.

C. . be considered an above average insurance risk. be considered a below average insurance risk. Homogenous. require reinsurance cover. require insurance cover. Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying. Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout.4. In insurance terms. this will normally increase the likelihood that he will A. Â 5. Perils are factors which affect the risk being insured and hazards are the size of the risk being insured. C. Financial. Â 6. B. B. Speculative. How are perils and hazards normally distinguished under term insurance policies? A. D. the risk of suffering a disability is best described as what type of risk? A. C. Fundamental. Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk. D. In insurance terms. D. B. Akshat is a relatively cautious person.

is the insurer next entitled to ask him for proof of continuing good health? A. B. B. Rahul’s pension fund value. D. when. 7. C. Once established. Rahul automatically has insurable interest in Sunny’s life up to what limit. B. Rahul’s monthly salary. For a household insurance policy.  . D. At no point. When a lapsed policy is revived. The date the cancellation period expires. C. At the point when he changes occupation or retires. In respect of this employment. if at all. There is no limit. C. Sunny’s annual profit. After the end of the first 12 months.Sample Questions IC-33 7 9. if any? A. The date a claim occurs. The termination date. The date the policy document is received. Arun started a 20-year term insurance policy. Rahul is employed by Sunny.  8. D. insurable interest need only exist at outset and at what other point? A.

C. B. D. who will be the titleholder(s) of this policy? A. C. profiting from insurance. Â . Â 11. The assignor in all cases. Once an absolute assignment is effected under a life insurance policy. insuring existing losses. The assignee in all cases. Â 12. 5 days. D. How long is the free look-in period under a term insurance policy from the date of receipt of the policy document? A. The concept of indemnity is based on the key principle that policyholders should be prevented from A. making false insurance claims.10. Either the assignor or assignee depending on the type of policy involved. D. 10 days. 20 days. The assignor and assignee jointly. B. B. C. 15 days. paying excessively for insurance cover.

A life insurer issued a quotation on 10 February. D. . In which main section of the policy document will this normally appear? A. Nomination facility. B. Preamble.  14. D. Terms and conditions. B. Savings element.  15. customer submits a second quotation request. D. A policy document for a money-back policy includes the statement ‘the proposal and declaration signed by the proposer form the basis of the contract’. Indexing contribution. Rider benefits. A life insurance policy can only be made paid up if what particular policy feature exists? A. which was accepted by the customer on day 10. insurer increases its underlying premium rates. guaranteed for 14 days. B.13. market place experiences a significant downturn. Operative clause. material facts change. C. Consequently the insurer can only decline this risk if the A. C. C. Attestation.

 17. The excess is likely to result from? A. 7. D. B.0% C. weight.  .5% B. age. The amount paid out by the insurer under a 30-year life insurance policy exceeded the sum insured plus revisionary bonuses.16.5%  18. 5. a tax rebate. occupation. The main reason why a life insurance proposal form often asks for the proposer’s height is to enable a reasonable comparison with the proposer’s A. C. C. 2. a terminal bonus. a frequency loading.0% D. 3. gender. Where annually increasing flexible premiums operate under a life insurance policy. B. D. charges refunded. what rate of increase will generally apply? A.

C. This addresses his role as A. protection of dependants. It is temporarily suspended. D. a creditor. Raunak recently arranged a life insurance policy under which he is classed as the master policyholder. protection of children’s future. C. What normally happens to the sum insured under a life insurance policy once the period of the lien expires? A. a debtor. D. home loan protection. an employee. The need for investment advice from an insurance agent normally results from what overriding key factor? .  21. It increases. The main protection need of a 19-year-old is most likely to be A. B. B. self-protection.  20. D. C. an employer.  22. It reduces. It is replaced by a newly-underwritten sum insured.19. B.

Nikhil is looking for tax-efficient savings methods for his disposable income. C. Absence of any long-term goals. C. Rental payments. Naveen is addressing his income needs by investing directly in corporate bonds. Lack of market knowledge. In what form will he receive this income? A. Interest payments. Funds for educational costs. Annuity instalments. D. When undertaking financial planning for individuals without capital. D.Sample Questions IC-33 9 24. He is considering an equity-linked savings scheme. Emergency funds.  25. D. national savings certificates and an endowment insurance policy. Dividend payments. B.  23. C. Shortage of available funds. Inability to prioritise future financial needs. B.A. Premiums for which of these investments are allowed to be deducted from his taxable income? . House purchase funds. what savings need is likely to be addressed in every single case? A. Funds for children’s savings. B.

the prices of these shares are most likely to A. Â 26. C. D. maintain cover despite a fall in investment value. C. Â 27. B. increase cover when a key life event occurs. B. stagnate. include his parents under the policy. The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to A.A. the national savings certificates and the endowment insurance policy. D. decrease. The equity-linked savings scheme. The national savings certificates only. C. become volatile. cancel a health-based exclusion after a symptom-free period. The national savings certificates and the endowment insurance policy only. increase. The equity-linked savings scheme and the national savings certificates only. If the Reserve Bank of India announces a series of significant interest rate increases. Â . B. An investor holds a wide range of shares. D.

A strengthening of the insurable interest rules.  30. B. his wife and his oldest child. Premiums for which of these individuals will qualify as deductible from Yash’s taxable income? A. D. A reduction in underwriting requirements. The general need for a pension policy results from the existence of what key problem? A. C.  29. his wife and both his children. Uncertainty over investment performance. D. Yash. The changes in healthcare costs over recent years has had what general impact on healthcare insurance? A. A fall in average premium levels. Likely deterioration in health. Lack of employment opportunities. C. C. B. B. D. A rise in the need for cover. . Yash and his wife only. Yash.28. Yash pays health insurance premiums for himself. Yash only. his wife and his two children aged 13 and 8. Anticipated fall in income.

Retirement. C. B. Young married. C. B. C. D.  33. how is the difference between real needs and perceived needs best described? A. Apart from the salary level. what other key feature of Alok’s job is likely to have a major impact on the level of his pension. Real needs are actual needs and perceived needs are based on a client’s thoughts and desires. life insurance and health insurance needs? A. Whether the job is manual or non-manual.  32. Real needs are financial needs and perceived needs are non-financial needs. B. Whether the job is office or field-based.31. Young married with children. Pre-retirement. Whether the job is in the public or private sector. D. Which main life stage is he most likely to fall into? A. Real needs are identified by the insurance agent and perceived needs are identified by the client. . The normal retirement age in relation to the job. In the context of financial planning. The sole focus during a client’s fact-find session was healthcare requirements and estate planning.

D. 6% and 10%  36. 5% and 10% C. The benefit illustration passed to his client will therefore use assumed annual growth rates of A. In order to fulfil the ‘know your customer’ procedures. competitiveness. At the end of the presentation meeting. C.  35. B. At the end of the fact-find meeting. The main purpose of including commission details in the documentation to clients is to increase A. 5% and 8% B. efficiency.  34. 6% and 8% D. Real needs are needs which satisfy an objective and perceived needs are needs which do not satisfy an objective. As soon as the application is accepted by the insurer. As soon as the insurer is ready to issue the policy document. B. . at what stage in the financial planning process is the insurance agent most likely to request a copy of the customer’s photograph? A. An agent has recommended an investment product with non-guaranteed benefits. D.

An improvement in investment performance. The views expressed by the client. An enhancement in product choice. flexibility. D. D. Conduct a new fact-find. C. .C. B. Â 39. What key indicator should be used to determine whether this advice was ethical? A. but document that this contradicts the recommendation. The difference in potential income and capital growth between the two products. C. Refuse to act for the client.Sample Questions IC-33 11 38. B. D. Â 37. Carry out these instructions. B. Invest a reduced amount of money in this product. A client has been recommended a low-risk investment product by his insurance agent. What action should the agent take? A. An insurance agent has advised a client to surrender an existing investment product and start a new investment product. transparency. The best interests of the client. but the client insists the agent arranges for the money to be invested in a higher risk product. What key impact will low persistency levels have on insurance policyholders? A. The flexibility of the new product compared to the old one.

The instalments were commuted by the policyholder. B. C. B. C. D. Reject the claim on the grounds of misrepresentation. A claim under a term insurance policy is submitted by an individual who has substantially understated his age. . A reduction in benefits. He paid the most recent premium during the period of grace. On the maturity of an endowment policy. a reduced sum insured is paid out. What factor most likely caused the insurer to investigate the claim using the early death claim procedures? A. Â 42. As an alternative to paying out the full claim the insurer is most likely to take what action? A. Make the policy paid up. His cover was originally accepted with a premium loading on medical grounds.C. Deduct the underpaid premiums from the sum insured. Raju died 5 years before the end of his 30-year endowment insurance policy. An increase in insurance cover. What is the most likely reason for this? A. His death resulted from a recently acquired sudden illness. Â 40. Â 41. D. Pay out the surrender value. D. The policy had lapsed and was revived shortly before he died.

 43. C. A fraudulent claim. An insurance agent served an insurer continually and exclusively for 20 years. after which he retired from work.B. A steep rise in inflation. B. there is fraud involved. . A policy assignment. he survives beyond the age of 75. Legislation gives which body the power to specify a code of conduct for surveyors and loss assessors? A. C. D. C. there has been a change in regulator. The policy was subject to a lien. Institute of Insurance and Risk Management. B. D. In accordance with Section 44 of the Insurance Act 1938.  44. A sudden illness. he ceases to remain a resident of India for tax purposes. What key event is most likely to prevent insurers from ensuring that each insured person brings a fair premium to the pool for the risk presented? A. renewal commission due to him after the termination of his agency can only be withheld if A. 45. The policyholder’s health seriously deteriorated during the policy term. D. The policy was made paid up during the policy term.

. B. Standard policy wordings. C. Insurance Regulatory and Development Authority. complainant accepts this decision. the other main action that an insurance agent can take at outset to minimise the risk of subsequently receiving a customer complaint is to A. A central compensation fund. B. C. provide detailed disclosures. Illustrative projection rates. D. Life Insurance Council. Â 46. register with the Insurance Ombudsman. C. An award made by the Insurance Ombudsman will only be binding on the insurer if the A. Securities and Exchange Board of India. Apart from conducting a comprehensive fact-find. Â 48. D. Consumer Forum is involved in the case. offer commission rebates. D. B. Customer classification status. What key legacy has been left by the activities of the Tariff Advisory Committee? A.B. Â 47. ask for referrals.

Refuse to act for the customer in this case. insurer signs a disclaimer. D. In accordance with the Insurance Regulatory and Development Authority’s Code of Conduct.C. B. how should the insurance agent deal with this information? A. B. Insurance Brokers Association of India’s membership rules.  49. Insurance Regulatory and Development Authority’s Code of Conduct.  50. General Insurance Council’s guidelines. the customer discloses confidentially to the insurance agent that he had a mild stroke four months ago. A policyholder asked his insurance agent for guidance on submitting a claim for the maturity benefit under his life insurance policy. During the process of applying for life insurance. Consequently. however this was NOT mentioned on the application form. C. C. . this action is deemed to be a breach of the A. value of the award is less than 2 lakhs. Ask the policyholder’s doctor to send details to the insurer. Due to pressure of work. the agent declined to assist. D. D. Notify the insurer of this matter. Insurance Ombudsman’s protocols. Respect this confidentiality by not discussing it with anyone else.