D.

Insurance pays when there is loss of an asset

IC 33 - CHAPTER WISE 7. Out of 400 houses, each valued at Rs. 20,000, on an average 4 houses get burnt
every year, resulting in a combined loss of Rs. 80,000. What should be the annual

QUESTIONS contribution of each house owner to make good this loss?

A. Rs.100/- B . Rs.200/- C. Rs.80/- D . Rs.400/-

8. Which of the following statements is true?

CHAPTER -1 A. Insurance is a method of sharing the losses of a ‘few’ by ‘many’
B. Insurance is a method of transferring the risk of an individual to another
1. Risk transfer through risk pooling is called ________? individual
A. Savings B . Investments C. Insurance is a method of sharing the losses of a ‘many’ by a few
C. Insurance D. Risk mitigation D. Insurance is a method of transferring the gains of a few to the many

2. The measures to reduce the chances of occurrence of risk are known as _. 9. Why do insurers arrange for survey and inspection of the property before
A. Risk retention B. Loss prevention acceptance of a risk?
C. Risk transfer D. Risk avoidance A. To assess the risk for rating purposes
B. To find out how the insured purchased the property
3. By transferring risk to the insurer, it becomes possible C. To find out whether other insurers have also inspected the property
A. To become careless about our assets D. To find out whether neighboring property also can be insured
B. To make money from insurance in the event of a loss
C. To ignore the potential risks facing our assets 10.Which of the below option best describes the process of insurance?
D. To enjoy peace of mind and plan one’s business more effectively A. Sharing the losses of many by a few
B . Sharing the losses of a few of many
4. Origins of modern insurance business can be traced to C. One sharing the losses of few
A. Bottomry B. Lloyds D. Sharing of losses through subsidy
C. Rhodes D . Malhotra Committee
Chapter – 1 - Answers
5. In insurance context ‘risk retention’ indicates a situation where _______?
A. Possibility of loss or damage is not there 1 2 3 4 5 6 7 8 9 10
B. Loss producing event has no value
C. Property is covered by insurance C B D B D D B A A B
D. One decides to bear the risk and its effects

6. Which of the following statement is true?

A. Insurance protects the asset B. Insurance prevents its loss
C. Insurance reduces possibilities of loss CHAPTER -
1. Which of the below is not an element of the life insurance business? B. Old people can afford to pay more
A. Asset B . Risk C. Mortality is related to age
C . Principle of mutuality D . Subsidy D. Mortality is inversely related to age

2. Who devised the concept of HLV? 9. Which of the below is not an advantage of cash value insurance contracts?
A. Dr. Martin Luther King B . Warren Buffet C. Prof. A. Safe and secure investment B. Inculcates saving discipline
Hubener D . George Soros C. Lower yields D. Income tax advantages

3 Which of the below mentioned insurance plans has the least or no amount of 10. Which of the below is an advantage of cash value insurance contracts?
savings element? A. Returns subject to corroding effect of inflation
A. Term insurance plan B. Endowment plan C . Whole life B. Low accumulation in earlier years
plan D . Money back plans C. Lower yields D . Secure investment

4. Which among the following cannot be termed as an asset? Chapter 2 - Answers

A. Car B. Human Life C . Air D. House
1 2 3 4 5 6 7 8 9 10
5. Which of the below cannot be categorized under risks? D C A C C B C C C D
A. Dying too young B. Dying too early
C. Natural wear and tear D . Living with a disability

6. Which of the below statement is true? CHAPTER - 3

A. Life insurance policies are contracts of indemnity while general insurance
policies are contracts of assurance
1. Which element of a valid contract deals with premium?
B. Life insurance policies are contracts of assurance while general insurance
A. Offer and acceptance B . Consideration
policies are contracts of
C. Free consent D. Capacity of parties to contract
Indemnity
C. In case of general insurance the risk event protected against is certain
2. relates to inaccurate statements, which are made without any
D. The certainty of risk event in case of general insurance increases with time
fraudulent intention.
A Misrepresentation B .Contribution
7. Which among the following methods is a traditional method that can help
C Offer D .Representation
determine the insurance needed by an individual?
A. Human Economic Value B . Life Term Proposition
3. involves pressure applied through criminal means.
C . Human Life Value D . Future Life Value
A. Fraud B . Undue influence
C. Coercion D.Mistake
8. Which of the below is the most appropriate explanation for the fact that young
people are charged lesser life insurance premium as compared to older people?
4. Which among the following is true regarding life insurance contracts?
A. Young people are mostly dependant
A. They are verbal contracts not legally enforceable A. Pneumonia B. Broken back
B. They are verbal which are legally enforceable C. Falling off a horse D . Surgery
C. They are contracts between two parties (insurer and insured) as per
requirements of Indian Contract Act, 1872 Chapter – 3 – Answers
D. They are similar to wager contracts
1 2 3 4 5 6 7 8 9 10
5. Which of the below is not a valid consideration for a contract? B A C C C B C C A C
A. Money B. Property C . Bribe D . Jewellery

6. Which of the below party is not eligible to enter into a life insurance contract?
A. Business owner B . Minor CHAPTER – 4
C . Housewife D . Government employee
1. An individual with an aggressive risk profile is likely to follow wealth
7. Which of the below action showcases the principle of “Uberrima Fides”?
investment style.
A. Lying about known medical conditions on an insurance proposal form
A. Consolidation B . Gifting C. Accumulation D . Spending
B. Not revealing known material facts on an insurance proposal form
C. Disclosing known material facts on an insurance proposal form
2 Which among the following is a wealth accumulation product?
D. Paying a premium on time
A. Bank Loans B. Shares
C.Term Insurance Policy D. Savings Bank Account
8. Which of the below is not correct with regards to insurable interest?
3. Savings can be considered as a composite of two decisions. Choose them from
A. Father taking out insurance policy on his son
the list below.
B. Spouses taking out insurance on one another
A. Risk retention and reduced consumption
C. Friends taking out insurance on one another
B. Gifting and accumulation
D . Employer taking out insurance for employees
C Spending and accumulation
D. Postponement of consumption and parting with liquidity
9. When is it essential for insurable interest to be present in case of life
insurance?
4. During which stage of life will an individual appreciate past savings the most?
A. At the time of taking out insurance
A. Post retirement B . Earner C . Learner D. Just married
B. At the time of claim
C. Insurable interest is not required in case of life insurance
5. What is the relation between investment horizon and returns?
D. Either at time of policy purchase or at the time of claim
A. Both are not related at all
B. Greater the investment horizon the larger the returns
10. Find out the proximate cause of death in the following scenario?
C. Greater the investment horizon the smaller the returns
Ajay falls off a horse and breaks his back. He lies there in a pool of water and
D. Greater the investment horizon more tax on the returns
contracts pneumonia. He is admitted to the hospital and dies because of
pneumonia.
6. Which among the following can be categorized under transactional products?
A. Bank deposits B . Life insurance 3. Which of the below option is correct with regards to a term insurance plan?
C . Shares D . Bonds A. Term insurance plans come with life-long renewability option
B. All term insurance plans come with a built-in disability rider
7. Which among the following can be categorised under contingency products? C. Term insurance can be bought as a stand-alone policy as well as a rider with
A. Bank deposits B. Life insurance another policy
C. Shares D. Bonds D.There is no provision in a term insurance plans to convert it into a whole life
insurance plan
8. Which of the below can be categorised under wealth accumulation products?
A. Bank deposits B . Life insurance 4. In decreasing-term insurance, the premiums paid over time.
C . General insurance D. Shares A. Increase B . Decrease
C. Remain constant D. Are returned
9. is a rise in the general level of prices of goods and services in an
economy over a period of time. 5. Using the conversion option present in a term policy you can convert the same
A.Deflation B.Inflation C . Stagflation D .Hyperinflation to _________
A. Whole life policy B. Mortgage policy
10. Which of the below is not a strategy to maximize discretionary income? C. Bank FD D. Decreasing term policy
A. Debt restructuring B . Loan transfer
C. Investment restructuring D.Insurance purchase 6. What is the primary purpose of a life insurance product?
A. Tax rebates B. Safe investment avenue
Chapter -4 – Answers C. Protection against the loss of economic value of an individual’s productive
abilities
1 2 3 4 5 6 7 8 9 10
D. Wealth accumulation
C B D A D A B D B D
7. Who among the following is best advised to purchase a term plan?
A. An individual who needs money at the end of insurance term
B. An individual who needs insurance and has a high budget
CHAPTER - 5 C. An individual who needs insurance, but has a low budget
D.An individual who needs an insurance product that gives high returns
1. life insurance pays off a policyholder's mortgage in the event of
the person's death.
8. Which of the below statement is incorrect with regards to decreasing term
A. Term B. Mortgage C. Whole D. Endowment
assurance?
A. Death benefit amount decreases with the term of coverage
2. The the premium paid by you towards your life insurance, the
B. Premium amount decreases with the term of coverage
will be the compensation paid to the beneficiary in the event of your death.
C. Premium remains level throughout the term
A. Higher, Higher B Lower, Higher
D.Mortgage redemption plans are an example of decreasing term assurance plans
C. Higher, Lower D. Faster, Slower
9. Which of the below statement is correct with regards to endowment assurance B.People who are risk averse and do not dabble in equity
plan? C. Knowledgeable people comfortable with equity
A. It has a death benefit component only D. Young people in general
B . It has a survival benefit component only
C. It has both a death benefit as well as a survival component 5. Which of the below statement is NOT true regarding ULIP’s?
D . It is similar to a term plan A. Value of the units is determined by a formula fixed in advance
B. risk is borne by the insurer
10. Which of the below is an example of an endowment assurance plan? C. ULIP’s are opaque with regards to their term, expenses and savings
A. Mortgage Redemption Plan B. Credit Life Insurance Plan components
C. Money Back Plan D. Whole Life Plan D. ULIP’s are bundled products
Chapter – 5 – Answers
6. All of the following are characteristics of variable life insurance EXCEPT:
1 2 3 4 5 6 7 8 9 10 A. Flexible premium payments B. Cash value is not guaranteed
C. Policy owner selects where savings reserve is invested
B A C C A C C B C C
D. Minimum Death benefit is guaranteed

7. Which of the below is correct with regards to universal life insurance?

CHAPTER – 6 Statement I: It allows policy owner to vary payments
Statement II: Policy owner can earn market based rate of return on cash value
1. What does inter-temporal allocation of resources refer to? A. I is true B . II is true
A. Postponing allocation of resources until the time is right C . I and II are true D . I and II are false
B. Allocation of resources over time
C. Temporary allocation of resources 8. All of the following is true regarding ULIP’s EXCEPT:
D. Diversification of resource allocation A. Unit holder can choose between different kind of funds
B. Life insurer provides guarantee for unit values
2. Which among the following is a limitation of traditional life insurance C. Units may be purchased by payment of a single premium or via regular
products? premium payments.
A. Yields on these policies is high D. ULIP policy structure is transparent with regards to the insurance expenses
B. Clear and visible method of arriving at surrender value component
C. Well defined cash and savings value component
D. Rate of return is not easy to ascertain 9. As per IRDA norms, an insurance company can provide which of the below
nontraditional savings life insurance products are permitted in India?
3. Where was the Universal Life Policy introduced first? Choice I: Unit Linked Insurance Plans
A. USA B. Great Britain C. Germany D. France Choice II: Variable Insurance Plans
A. I only B . II only C. I and II both D. Neither I nor II
4. Who among the following is most likely to buy variable life insurance?
A. People seeking fixed return 10. What does unbundling of life insurance products refers to?
A. Correlation of life insurance products with bonds C. Post-retirement income security D. Disability
B Correlation of life insurance products with equities
C. Amalgamation of protection and savings element 6. Which of the below best describes an ordinary annuity?
D. Separation of the protection and savings element A. Equal cash flows at equal time intervals forever
B.Equal cash flows at equal time intervals for a specific time period
C.Lumpy cash flows at equal time intervals forever
Chapter – 6 – Answers D.Lumpy cash flows at equal time intervals for a specific time period
1 2 3 4 5 6 7 8 9 10
7. From the choices mentioned below, select the one that cannot be categorized
B D A C C A C B C D as an annuity.
A. Rs. 2000 received today, Rs. 2000 received next year and Rs. 2000 received in 2
years
B. Electricity Bill C. Car payments D. Mortgage payments
CHAPTER :- 7
8. In an ordinary annuity, payments are made _______ or received _______ of
1. Which of the below risk cannot be addressed through pensions?
each period
A. Life longevity B.Inflation
A. At the beginning B. At the end
C. Investment risk D . Early death
C. On maturity D. 6 months before expiry
2. With relation to annuities, explain what does “Liquidation period” refer to?
9. ___________ is an annuity with an infinite life and making continuous annual
A. Period between the purchase of annuity and commencement of payments
payments.
B. Period during which insurer makes annuity payments
A. APR B. Amortised loan C. Perpetuity D. Principal
C. Time taken to build up the corpus
D. Insolvency period
10. _________ is a term used to refer pensions that have some level of
Government administration.
3. Amount of annuity payable depends on which of the following:
A. Insurance Pension Fund B. Public Pension Fund
i. Principal sum of money i i . Investment period
C. Private Pension Fund D. Market Pension Fund
iii. Rate of return iv. Duration of annuity payments
A. i and ii B . i, ii and iii C. i, iii and iv D . i,ii,iii and iv
Chapter – 7- Answers
4. Amount of annuity payable is inversely related to which of the following: 1 2 3 4 5 6 7 8 9 10
i. Principal sum of money i i . Investment performance
iii. Rate of return iv. Duration of annuity payments D B D D C B B B C B
A. i only B . ii only C.iii only D . i v only

5. What is the basic contingency associated with pensions? CHAPTER - 8

A. Mortality B. Morbidity 1. IRDA stands for .
A. International Regulatory & Development Authority C. First point of contact for people seeking healthcare
B. Indian Regulatory & Development Authority D. Care provided by Doctors
C. Insurance Regulatory & Development Authority
D. Income Regulatory & Development Authority 9. is an insured who undergoes treatment after getting
admitted in a hospital.
2. The term TPA refers to ________ (Answer with regards to health insurance) A. Inpatient B . Outpatient C. Day patient D. House patient
A. The Primary Associate B. To Provide Assistance
C. Third Party Administrator D. Third Party Assistance 10. refers to a hospital/health care provider enlisted by an insurer to
provide medical services to an insured on payment by a cashless facility.
3. Which of the below group would not be eligible for a group health insurance A. Day care centre B . Network provider
policy? C. Third Party Administrator D. Domiciliary
A Employees of a company
B. Credit card holders of an organisation Chapter – 8 – Answers
C.Professional association members
1 2 3 4 5 6 7 8 9 10
D Group of unrelated individuals formed for the purpose of availing group health
insurance C C D D B C B C A B

4. Who cannot be covered under a family floater policy?

A. Children B . Spouse C.Parents-in-law D. Maternal uncle CHAPTER - 9
1. The sum assured under keyman insurance policy is generally linked to which of
5. As per IRDA regulations issued in February 2013, what is the grace period
the following? A. Keyman income B.Business profitability C. Business
allowed beyond the expiry date of the policy, for renewal?
history D. Inflation index
A. 15 days B . 30 days C.45 days D.60 days
2. Mortgage redemption insurance (MRI) can be categorised under
6. Identify the form of insurance that is depicted in the following scenario.
A. Increasing term life assurance
Scenario: Patient pays the health provider and is subsequently reimbursed by the
B . Decreasing term life assurance
health insurance company.
C. Variable life assurance D. Universal life assurance
A. Service Benefit B.Direct contracting C.Indemnity
D. Casualty
3. Which of the below losses are covered under keyman insurance?
A. Property theft
7. Moral hazard by health insurance companies can result in ______
B. Losses related to the extended period when a key person is unable to work
A.Community rating B. Adverse selection
C.General liability D. Losses caused due to errors and omission
C. Abuse of health insurance D.Risk pooling
4. A policy is effected under the MWP Act. If the policyholder does not appoint a
8.Primary care can be described as .
special trustee to receive and administer the benefits under the policy, the sum
A. Care provided to patient in an acute setting
secured under the policy becomes payable to the .
B. Care provided in hospitals
A. Next of kin B. Official Trustee of the State Chapter – 9 – Answers
C. Insurer D . Insured
1 2 3 4 5 6 7 8 9 10
5. Mahesh ran a business on borrowed capital. After his sudden demise, all the B B B B C B B B B C
creditors are doing their best to go after Mahesh’s assets. Which of the below
assets is beyond the reach of the creditors?
A. Property under Mahesh’s name
B. Mahesh’s bank accounts CHAPTER – 10
C. Term life insurance policy purchased under Section 6 of MWP Act
1. What does the term “premium” denote in relation to an insurance policy?
D. Mutual funds owned by Mahesh
A. Profit earned by the insurer
B.Price paid by an insured for purchasing the policy
6. Which of the below option is true with regards to MWP Act cases?
C. Margins of an insurer on a policy
Statement I: Maturity claims cheques are paid to policyholders
D . Expenses incurred by an insurer on a policy
Statement II: Maturity claims cheques are paid to trustees
A. I is true B . II is true
2. Which of the below is not a factor in determining life insurance premium?
C. Both I and II are true D. Neither I nor II is true
A. Mortality B. Rebate C.Reserves D . Management expenses
7. Which of the below option is true with regards to MWP act cases?
3. What is a policy withdrawal?
Statement I: Death claims are settled in favour of nominees
A. Discontinuation of premium payment by policyholder
Statement II: Death claims are settled in favour of trustees
B. Surrender of policy in return for acquired surrender value
A. I is true B. II is true
C. Policy upgrade D. Policy downgrade
C . Both I and II are true D. Neither I nor II is true
4. Which of the below is one of the ways of defining surplus?
8. Ajay pays insurance premium for his employees. Which of the below insurance
A. Excessive liabilities B. Excessive turnover
premium will not be treated deductible as compensation paid to employee?
C. Excess value of liabilities over assets
Choice I: Health insurance with benefits payable to employee
D . Excess value of assets over liabilitie
Choice II: Keyman life insurance with benefits payable to Ajay
A. I only B. II only C . Both I and II D . Neither I nor II
5. Which of the below is not a component of ULIP premiums?
A. Policy allocation charge B. Investment risk premium
9. The practice of charging interest to borrowers who pledge their property as
C. Mortality charge D. Social security charge
collateral but leaving them in possession of the property is called .
A. Security B . Mortgage C. Usury D. Hypothecation
6. Life insurance companies may offer rebate to the buyer on the premium that is
payable on the basis of .
10. Which of the below policy can provide protection to home loan borrowers?
A. Sum assured chosen by the buyer
A. Life Insurance B. Disability Insurance
B Type of policy chosen by the buyer
C. Mortgage Redemption Insurance D.General Insurance
C.Term of the plan chosen by the buyer
D. Mode of payment (cash, cheque, card) chosen by the buyer
B B B D D A C D D B
7. Interest rates are one of the important components used while determining
the premium. Which of the below statement is correct with regards to interest
rates?
A. Lower the interest rate assumed, lower the premium CHAPTER – 11
B. Higher the interest rate assumed, higher the premium
C. Higher the interest rate assumed, lower the premium 1. Which of the below is an example of standard age proof?
D. The interest rates don’t affect premiums A Ration card B . Horoscope
C. Passport D Village Panchayat certificate
8 Which of the below statement is correct?
A. The typical loading to a net premium would have 3 parts: a) a constant amount 2. Which of the below can be attributed to moral hazard?
for premiums b) a constant amount for each ‘1000 sum assured’ and c) a A. Increased risky behaviour following the purchase of insurance
constant amount per policy B. Increased risky behaviour prior to the purchase of insurance
B. The typical loading to a net premium would have 3 parts: a) a percentage of C. Decreased risky behaviour following the purchase of insurance
premiums b) a constant amount for each ‘1000 sum assured’ and c) a D Engaging in criminal acts post being insured
constant amount per policy
C. The typical loading to a net premium would have 3 parts: a) a percentage of 3. Which of the below features will be checked in a medical examiner’s report?
premiums b) a constant percentage for each ‘1000 sum assured’ and c) a A. Emotional behaviour of the proposer
constant amount per policy B Height, weight and blood pressure
D. The typical loading to a net premium would have 3 parts: a) a percentage of C. Social status D . Truthfulness
premiums b) a constant amount for each ‘1000 sum assured’ and c) a
percentage amount per policy 4. A _______ is a formal legal document used by insurance companies that
provides details about the product.
9. With regards to valuation of assets by insurance companies, __________ is the A. Proposal form B. Proposal quote
value at which the life insurer has purchased or acquired its assets. C.Information docket D. Prospectus
A. Discounted future value B. Discounted present value
C. Market value D. Book value 5. The application document used for making the proposal is commonly known as
the
10. In case of , a company expresses the bonus as a percentage of A. Application form B. Proposal form
basic benefit and already attached bonuses. C Registration form D. Subscription form
A. Reversionary bonus B..Compound bonus
C. Terminal bonus D. Persistency bonus 6. From the below given age proof documents, identify the one which is classified
as non-standard by insurance companies.
Chapter – 10 – Answers A. School certificate B . Identity card in case of defence personnel
C. Ration card D . Certificate of baptism
1 2 3 4 5 6 7 8 9 10
7. Money laundering is the process of bringing money into an economy C.The policy will be declared as void and the insurer will be asked to return the
by hiding its origin so that it appears to be legally acquired. premium with interest to the insured
A. Illegal, illegal B . Legal, legal C . Illegal, legal D. Legal, illegal D. The policy will be declared as void and the insurer will be asked to return the
premium to the insured without any interest
8. In case the policyholder is not satisfied with the policy, he / she can return the
policy within the free-look period i.e. within of receiving the policy 3. Select the option that best describes a policy document.
document. A. It is evidence of the insurance contract
A. 60 days B. 45 days C . 30 days D . 15 days B. It is evidence of the interest expressed by the insured in buying an insurance
policy from the company
9. Which of the below statement is correct with regards to a policy returned by a C. It is evidence of the policy (procedures) followed by an insurance company
policyholder during the free look period? when dealing with channel partners like banks, brokers and other entities
A.The insurance company will refund 100% of the premium D. It is an acknowledgement slip issued by the insurance company on payment of
B.The insurance company will refund 50% of the premium the first premium
C. The insurance company will refund the premium after adjusting for
proportionate risk Premium for the period on cover, medical examination 4. Which of the below statement is correct?
expenses and stamp duty charges A. The proposal form acceptance is the evidence that the policy contract has
D. The insurance company will forfeit the entire premium begun
B. The acceptance of premium is evidence that the policy has begun
10. Which of the below is not a valid address proof? C The First Premium Receipt is the evidence that the policy contract has begun
A. PAN Card B. Voter ID Card C Bank passbook D . Driving licence D. The premium quote is evidence that the policy contract has begun

Chapter – 11 - Answers 5. For the subsequent premiums received by the insurance company after the
first premium, the company will issue .
1 2 3 4 5 6 7 8 9 10 A. Revival premium receipt B.Restoration premium receipt
C. Reinstatement premium receipt D. Renewal premium receipt
C A B D B C A D C B
6. What will happen if the insured person loses the original life insurance policy
CHAPTER – 12 document?
A. The insurance company will issue a duplicate policy without making any
1 Which of the following documents is an evidence of the contract between changes to the contract
insurer and insured? B. The insurance contract will come to an end
A. Proposal form B . Policy document C.The insurance company will issue a duplicate policy with renewed terms and
C . Prospectus D. Claim form conditions based on the current health declarations of the life insured
D.The insurance company will issue a duplicate policy without making any
2. If complex language is used to word a certain policy document and it has given changes to the contract, but only after a Court order.
rise to an ambiguity, how will it generally be construed
A. In favour of insured B. In favour of insurer 7. Which of the below statement is correct?
A. The policy document has to be signed by a competent authority but need not CHAPTER – 13
be compulsorily stamped according to the Indian Stamp Act.
B. The policy document has to be signed by a competent authority and should be 1. Which of the below statement is false with regards to nomination?
stamped according to the A. Policy nomination is not cancelled if the policy is assigned to the insurer in
Indian Stamp Act. return for a loan
C. The policy document need not be signed by a competent authority but should B. Nomination can be done at the time of policy purchase or subsequently
be stamped according to the Indian Stamp Act. C. Nomination can be changed by making an endorsement in the policy
D. The policy document neither needs to be signed by a competent authority nor D. A nominee has full rights on the whole of the claim
it needs to be compulsorily stamped according to the Indian Stamp Act.
2. In order for the policy to acquire a guaranteed surrender value, for how long
8. Which of the below forms the first part of a standard insurance policy must the premiums be paid as per law?
document? A. Premiums must be paid for at least 2 consecutive years
A. Policy schedule B . Standard provisions B. Premiums must be paid for at least 3 consecutive years
C. Specific policy provisions D. Claim procedure C. Premiums must be paid for at least 4 consecutive years
D. Premiums must be paid for at least 5 consecutive years
9. In a standard insurance policy document, the standard provisions section will
have information on which of the below? 3. When is a policy deemed to be lapsed?
A. Date of commencement, date of maturity and due date of last premium A. If the premiums are not paid on due date
B If the premiums are not paid before the due date
B. Name of nominee C. If the premium has not been paid even during days of grace
C. The rights and privileges and other conditions, which are applicable under the D. If the policy is surrendered
contract
D. The signature of the authorised signatory and policy stamp 4. Which of the below statement is correct with regards to grace period of an
insurance policy?
10. “A clause precluding death due to pregnancy for a lady who is expecting at the A. The standard length of the grace period is one month.
time of writing the contract” will be included in which section of a standard policy B. The standard length of the grace period is 30 days.
document? C. The standard length of the grace period is one month or 30 days.
A. Policy schedule B . General provisions D. The standard length of the grace period is one month or 31 days.
C. Standard provisions D. Specific policy provisions
5. What will happen if the policyholder does not pay the premium by the due date
Chapter – 12 – Answers and dies during the grace period?
A. The insurer will consider the policy void due to non-payment of premium by
1 2 3 4 5 6 7 8 9 10 the due date and hence reject the claim
B A A C D A B A C D B. The insurer will pay the claim and waive off the last unpaid premium
C. The insurer will pay the claim after deducting the unpaid premium
D. The insurer will pay the claim after deducting the unpaid premium along with
interest which will be taken as 2% above the bank savings interest rate
 C. Change of the policy from with profit policy to without profit policy
6. During the revival of a lapsed policy, which of the below aspect is considered D. Increase in the sum assured
most significant by the insurance company? Choose the most appropriate option.
A. Evidence of insurability at revival Chapter – 13 – Answers
B. Revival of the policy leading to increase in risk for the insurance company
1 2 3 4 5 6 7 8 9 10
C. Payment of unpaid premiums with interest
D. Insured submitting the revival application within a specified time frame D B C D B A C B D A

7. For an insurance policy nomination is allowed under of the Insurance

Act, 1938.
A. Section 10 B Section 38 C. Section 39 D. Section 45 CHAPTER – 14
1 Which of the following denotes the underwriter’s role in an insurance
8. Which of the below statement is incorrect with regards to a policy against
company?
which a loan has been taken from the insurance company?
A. Process claims B. Decide acceptability of risks
A. The policy will have to be assigned in favour of the insurance company
C. Product design architect D. Customer relations manager
B. The nomination of such policy will get cancelled due to assignment of the
policy in favour of the insurance company
2. Which of the following is not an underwriting decision?
C. The nominee’s right will affected to the extent of the insurer’s interest in the
A. Risk acceptance at standard rates B. Declinature of risk
policy
C. Postponement of risk D.Claim rejection
D. The policy loan is usually limited to a percentage of the policy’s surrender value
3. Which of the following is not a standard age proof?
9. Which of the below statement is incorrect with regards to assignment of an
A. Passport B.School leaving certificate C.Horoscope
insurance policy?
D . Birth certificate
A. In case of Absolute Assignment, in the event of death of the assignee, the title
of the policy would pass to the estate of the deceased assignee.
4. Which of the following condition will affect a person’s insurability negatively?
B. The assignment of a life insurance policy implies the act of transferring the
A. Daily jogs B Banned substance abuse
rights right, title and interest in the policy (as property) from one person to
C. Lazy nature D . Procrastination
another.
C. It is necessary that the policyholder must give notice of assignment to the
5. Under what method of underwriting does an underwriter assign positive rating
insurer.
points for all negative or adverse factors (negative points for any positive or
D. In case of Absolute Assignment, the policy vests absolutely with the assignee
favourable factors)?
till maturity, except in case of death of the insured during the policy tenure,
A. Judgment B Arbitrary C . Numerical rating D . Single step
wherein the policy reverts back to the beneficiaries of the insured.
6. Under risk classification, ___________ consist of those whose anticipated
10. Which of the below alteration will be permitted by an insurance company?
mortality corresponds to the standard lives represented by the mortality table.
A. Splitting up of the policy into two or more policies
A. Standard lives B. Preferred risks
B. Extension of the premium paying term
C.Sub-standard lives D. Declined lives CHAPTER – 15
7. Amruta is pregnant. She has applied for a term insurance cover. Which of the 1. Given below is a list of policies. Identify under which type of policy, the claim
below option will be the best option to choose for an underwriter to offer payment is made in the form of periodic payments?
insurance to Amruta? Choose the most likely option. A. Money-back policy B. Unit linked insurance policy
A.Acceptance at ordinary rates B. Acceptance with extra premium C. Return of premium policy D. Term insurance policy
C.Decline the proposal D. Acceptance with a restrictive clause
2. Mahesh has bought a life insurance policy with a critical illness rider. He has
8. Which of the below insurance proposal is not likely to qualify under non- made absolute assignment of the policy in favour of Karan. Mahesh suffers a
medical underwriting? heart attack and there is a claim of Rs. 50,000 under the critical illness rider. To
A. Savita, aged 26 years, working in an IT company as a software engineer whom will the payment be made in this case?
B. Mahesh, aged 50 years, working in a coal mine A. Mahesh B. Karan
C. Satish, aged 28 years, working in a bank and has applied for an insurance cover C. The payment will be shared equally by Mahesh and Karan
of Rs. 1 crore D. Neither of the two because Mahesh has suffered the heart attack but the
D. Pravin, aged 30 years, working in a departmental store and has applied for an policy is assigned in favour of Karan.
endowment insurance plan for a tenure of 10 years
3. Praveen died in a car accident. The beneficiary submits documents for death
9. Sheena is suffering from acute diabetes. She has applied for an insurance plan. claim. Which of the below document is an additional document required to be
In this case the underwriter is most likely to use for underwriting. submitted in case of accidental death as compared to natural death.
Choose the most appropriate option. A. Certificate of burial or cremation
A. Judgment method B. Numerical method B. Treating physician’s certificate
C. Any of the above method since an illness like diabetes does not play a major C. Employer’s certificate D. Inquest Report
role in the underwriting process
D. Neither of the above method as diabetes cases are rejected outright 4. Which of the below death claim will be treated as an early death claim?
A. If the insured dies within three years of policy duration
10. Santosh has applied for a term insurance policy. His anticipated mortality is B. If the insured dies within five years of policy duration
significantly lower than standard lives and hence could be charged a lower C. If the insured dies within seven years of policy duration
premium. Under risk classification, Santosh will be classified under . D. If the insured dies within ten years of policy duration
A. Standard lives B . Preferred risks
C . Substandard lives D . Declined lives 5. Given below are some events that will trigger survival claims. Identify which of
the below statement is incorrect?
Chapter – 14 – Answers A. Claim paid on maturity of a term insurance policy
B. An instalment payable upon reaching the milestone under a money-back policy
1 2 3 4 5 6 7 8 9 10
C. Claim paid for critical illnesses covered under the policy as a rider benefit
B D C B C A D B A B D. Surrender value paid on surrender of an endowment policy by the policyholder
6. A payment made under a money-back policy upon reaching a milestone will be 1. Which of the following entities is not regulated by IRDAI?
classified under which type of claim? A.Insurance comapny B. Insurance Agent
A. Death claim B . Maturity claim C . Bro ker D . Em p lo y ee s o f I n sur a ne co m p any
C.Periodical survival claim D. Surrender claim
2. Insurance agent represents the .
7. Shankar bought a 10 year Unit Linked Insurance Plan. If he dies before the A. Insurance company B Sub-agent
maturity of the policy which of the below will be paid? C . Co-agent D . Broker
A. Lower of sum assured or fund value
B. Higher of sum assured or fund value 3. The agency appointment letter is given by.
C. Premiums paid will be returned with 2% higher interest rate as compared to a A.Government of India B. IRDAI
bank’s savings deposit C.General Insurance Corporation D. Insurer
D. Surrender value
4. What is not prohibited in the latest insurance regulations?
8. Based on the classification of claims (early or non-early), pick the odd one out? A. Rebates B.Multilevel marketing
A. Ramya dies after 6 months of buying a term insurance plan C . Sharing of commision D. Commission
B. Manoj dies after one and half years of buying a term insurance plan
C. David dies after two and half years of buying a term insurance plan 5. Identify the statement which is not correct. Insurance agent should .
D. Pravin dies after five and half years of buying a term insurance plan A. Indicate the scale of commission if asked by the customer
B. Share the commission by way of rebate
9. Given below is a list of documents to be submitted for a normal death claim by C. Disclose his licence on demand
all beneficiaries in the event of death of life insured. Pick the odd one out which is D. Indicate the premium to be charged
additionally required to be submitted only in case of death by accident.
A. Inquest report B. Claim form 6. Which of the following is incorrect?
C. Certificate of burial or cremation D. Hospital’s certificate A. An agent is expected to inform the insurer all relevant facts about the
prospectus.
10. As per IRDA (Protection of Policyholders Interests) Regulations, 2002, a claim B. Advice the prospectus on nomination
under a life policy shall be paid or be disputed, within 30 days from the date of C.Offer rates different than those offered by insurer
receipt of all relevant papers and clarifications required. D.Render assistance in claim settlement
A. 7 days B . 15 days C . 30 days D . 45 days
7. Which of the following acts is insurance business in India not linked to?.
Chapter – 15 – Answers
A. ESIC Act, 1948 B. ECGC Act,
1 2 3 4 5 6 7 8 9 10 C.LIC Act, 1956 D . Income Tax Act, 1961
A B D A A C B D A C
8. IRDAI regulations prescribe insurers obligations. Which of the following is
incorrect?
CHAPTER 16 A. At point of sale B . Towards policy servicing
C. Towards control of expenses D. Customer relationship management
 6. As per Section 182 of the Indian Contract Act, _________ is a person employed
9. Minimum qualification required for insurance agent is pass. to do any act for another or to represent another in dealing with a third person.
A. Graduate B. 10th C. Post-graduate D . 7th A. Principal Officer B. Proxy C. Mediator D. Agent

10. may deal with more than one life insurance company or general 7. An insurance broker represents .
insurance company or both. A. Insurance company B. Insured
A. Agent B . Surveyor C. Composite agent D. None of the above C. Association of insurance companies
D. Community of people who have already taken insurance
Chapter – 16 – Answers
8. Which of the below reflects Principle 2 of the Insurance Marketplace Standards
1 2 3 4 5 6 7 8 9 10
Association (IMSA) principles?
D A D D B C D D B C A. To provide competent and customer-focused sales and service.
B. To engage in active and fair competition.
C. To provide for fair and expeditious handling of customer complaints and
disputes.
CHAPTER – 17 D. To maintain a system of supervision and review that is reasonably designed to
achieve compliance with these principles of ethical market conduct.
1. An insurance agent is typically a representative of .
A. Customer B . Insurance company C. Government D. IRDA
9. Which of the following do Insurance Marketplace Standards Association (IMSA)
principles does not include?
2. Direct marketing involves which of the below?
A. Conduct business according to high standards of honesty
A. Telemarketing B. Insurance agents
B.Provide competent customer focused sales and service
C . Bancassurance D. All of the above
C.Compete to win
D.Provide fair and swift handling of customer complaints
3. “Hurt not others with that which pains yourself”. This golden rule of ethics is
given in the teaching of which religion?
10. IRDA has decided to implement guidelines on persistency from ____
A. Buddhism B. Christianity C. Hinduism D . Judaism
A. 1st July 2011 B.1st July 2012 C.1st July 2013 D.1st July 2014
4. Which is not an insurance distribution channel?
A Agency B. Bancassurance
Chapter – 17 – Answers
C. Multilevel marketing D . Direct marketing

5. Request for long term success in the insurance agency profession do not 1 2 3 4 5 6 7 8 9 10
include
B D A C D D B A C D
A. Fire in belly B . Positive self image
C . Ability to connect D. Getting business at any cost
 CHAPTER –
8. Which of the below statement is correct?
1. The key to successful closing lies in helping the prospect to say ______ A. Selling is an art and not a science
A. No B. Don’t know C . Yes D . Maybe B . Selling is a science and not an art
C. Selling is neither an art or a science
2. Which of the following is not part of sales process? D. Selling is both an art and a science
A. Prospecting B. Sales interview C. Loss assessment D. Closing
9. While prospecting for selling insurance, approaching the members of a caste or
3. Prospecting in an insurance sale is . community association will be classified under which category?
A. Gathering the names of people who may be interested in insurance A. Immediate group B. Natural market
B. Preparing a list of all the persons in the city C. Centres of influence D. References and introductions
C. Enlisting all the policyholders of the branch office
D. Preparing list of all the agents in the neighbourhood 10. Identify the incorrect statement with regards to a ‘qualified’ prospect.
A. A qualified prospect is one who can pay for insurance
4. In insurance, need-gap analysis involves . B. A qualified prospect is one who can be approached on a favourable basis
A. Identifying the areas where the prospect needs insurance protection C. A qualified prospect is one who is academically well qualified to buy insurance
B. Identifying people to work as insurance agents D. A qualified prospect is one who can pass the company underwriting
C. Identifying how much assets a prospect has Requirements
D. Identifying the poverty level of the prospects
Chapter – 18 - Answers
5. Cold Calling is .
A. Meeting customers in winter 1 2 3 4 5 6 7 8 9 10
B.Meeting customers when they are suffering from cold
C C A A C B A D B C
C.Meeting people unannounced
D . Meeting customer after fire was extinguished
CHAPTER – 19
6. as a profession refers to the act of inducing a commercial transaction
through inducing the purchase of a product or service, such act being carried out 1. is not a tangible good.
with the intent of earning remuneration. A. House B. Insurance C.Mobile Phone D. A pair of jeans
A. Marketing B . Selling C . Advertising D . Promotion
2. is not an indicator of service quality.
7. Which of the below statement is correct? A. Cleverness B.Reliability C. Empathy D. Responsiveness
A. Life insurance is sold, not bought
B. Life insurance is bought, not sold 3. In customer relationship the first impression is created:
C. Life insurance is neither bought nor sold; it is a necessity and hence should be A. By being confident B . By being on time
bought by every individual. C. By showing interest
D. None of the above D. By being on time, showing interest and being confident
 Chapter – 19 – Answers
4. Select the correct statement:
1 2 3 4 5 6 7 8 9 10
A. Ethical behaviour is impossible while selling insurance
B. Ethical behaviour is not necessary for insurance agents B A D C D A B C D B
C. Ethical behaviour helps in developing trust between the agent and the insurer
D. Ethical behaviour is expected from the top management only
CHAPTER – 20
5. Active listening involves:
1. Expand the term IGMS.
A. Paying attention to the speaker
A. Insurance General Management System
B. Giving an occasional nod and smile
B. Indian General Management System
C. Providing feedback
C. Integrated Grievance Management System
D. Paying attention to the speaker, giving an occasional nod and smile and
D Intelligent Grievance Management System
providing feedback
2. Which of the below consumer grievance redressal agencies would handle
6. refers to the ability to perform the promised service dependably and
consumer disputes amounting between Rs. 20 lakhs and Rs. 100 lakhs?
accurately.
A.District Forum B . State Commission
A. Reliability B . Responsiveness C. Assurance D. Empathy
C. National Commission D. Zilla Parishad
7. relate to one’s ability to interact effectively with other workers
3. Which among the following cannot form the basis for a valid consumer
and customers, both at work and outside.
complaint?
A. Hard skills B . Soft skills
A. Shopkeeper charging a price above the MRP for a product
C. Negotiating skills D. Questioning skills
B. Shopkeeper not advising the customer on the best product in a category
C. Allergy warning not provided on a drug bottle
8. Which of the below elements promotes trust?
D. Faulty products
A. Communication, assertiveness and being present
B. Politeness, affirmation and communication
4. Which of the below will be the most appropriate option for a customer to lodge
C. Attraction, communication and being present
an insurance policy related complaint?
D. Affirmation, assertiveness and attraction
A. Police B. Supreme Court
C . Insurance Ombudsman D . District Court
9. Which of the below tips are useful for making a good first impression?
A. Being on time always B. Presenting yourself appropriately
5. Which of the below statement is correct with regards to the territorial
C. Being open, confident and positive D . All of the above
jurisdiction of the Insurance Ombudsman?
A.Insurance Ombudsman has National jurisdiction
10. ______is reflected in the caring attitude and individualised attention provided
B. Insurance Ombudsman has State jurisdiction
to customers.
C.Insurance Ombudsman has District jurisdiction
A. Assurance B. Empathy C. Reliability D . Responsiveness
D. Insurance Ombudsman operates only within the specified territorial limits
1 2 3 4 5 6 7 8 9 10
6. How is the complaint to be launched with an insurance ombudsman? C B B C D A C C B B
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

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

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.

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

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

Chapter – 20 – Answers
 IC 33 - MOCK TEST - 1 7. ____________ is a process of identifying one’s life goals, translating
these identified goals into financial goals and managing one’s finances that
will help one to achieve these goals?
1. Insurance is meant to
a) cash flow planning b) financial planning
a) prevent specified events
c) estate planning d) wealth planning
b) prevent damage to assets from specified events
c) compensate for losses from specified events
8. The ability to convert an investment into cash without loss of value is
d) rebuild the assets lost because of specified events
_______
a) marketability b) liquidity c) diversification d) time horizon
2. Risk managers must consider the range of outcomes that could occur.
The worst loss that is likely to happen is called ________
9. Whole life policy provides for payment of the sum assured on _
a) The maximum severity of loss b) the maximum possible loss
a) death during the fixed term only
c) The maximum frequency of loss d) the maximum probable loss
b) survival till end of the term
c) death during the fixed term or survival till end of the term
3. The ______ premium is a premium fixed such that it does not increase
d) death anytime after commencement of the policy.
with the age, but remains constant throughout the contract period.
a) level b) constant c) flat d) uniform
10. Which of the following statement is correct, according the IRDAI’s new
guidelines for traditional products?
4. ______ is one of the important ways to reduce the risk in financial
a) For regular premium policies, the cover will be 10 times the annualised
markets, the other being _________.
premiums paid for those below 45 years of age and 7 times for others.
a) mutuality, spreading b) spreading, diversification
b) The minimum death benefit in case of traditional plans is at least the
c) diversification, spreading d) mutuality, diversification
amount of sum assured and the additional benefits, if any.
c) The bonus once announced becomes a guarantee.
5. Important legal doctrine that stipulates a person seeking insurance
d) All of the above are correct statements.
should have a financial interest in the subject matter of insurance is called
______.
11. Which of the following statement is correct?
a) principle of Utmost good faith b) Principle of subrogation
1) The assets backing traditional cash value policies form part of ‘general
c) principle of insurable interest d) principle of indemnity
investment account’.
2) The assets backing the variable life insurance policy form part of
6. The ‘duty of disclosure’ follows from the principle of _________
‘general investment account’.
a) doctrine of adhesion b) subrogation
a) only statement 1 is correct b) only statement 2 is correct
c) indemnity d) utmost good faith
c) both statement 1 and 2 are correct
d) both statement 1 and 2 are incorrect
 17. Which of the following is not the guiding principle for determining
12. Which of the following statement is correct with regard to ULIP? amount of loading?
1. The insured decides on the amount of premium he/she wishes to a) Adequacy b) Equity c) Competitiveness d) Profit
contribute at regular intervals.
2. Insurance cover is the multiple of the premiums paid. 18) Calculate the mortality cost for Rs.1000 sum assured, if mortality rate is
a) only statement 1 is correct b) only statement 2 is correct 35 per 10,000 persons?
c) both statement 1 and 2 are correct a) 3.5 b) 35 c) 350 4) 0.35
d) both statement 1 and 2 are incorrect
19. ______ arises as a result of the life insurer’s actual experience being
13. Which of the following pension schemes represents the principle of better than what it has assumed?
scientific liquidation of capital? a) rebate b) surplus c) reserve d) loading
a) Public pensions b) Occupational pensions
c) Personal pensions d) Commutation of pensions 20) Age is material for underwriting because it affects _______
a) the amount of premium
14. Which of the following statement is correct? b) The decision to call for medical examination
a) 1/3rd of the accumulated value of pension can be withdrawn at the time c) both of the above d) only A
of retirement and is tax-free
b) Occupational pensions have been set up by employers for their 21) The parameters such as height, weight, chest and abdominal
employee, with contributions from both employers and employees. measurements help the underwriter to assess the
c) Pensions may be said to represent the flip side of life insurance a) occupational hazard b) moral hazard
d) All the above statements are correct. c) physical hazard d) insurable interest

15. The premium under a health insurance plan is related to ____ 22) Which of the following statements is correct in respect of lapsation and
a) sum assured and term of the policy surrenders?
b) age and term of the policy a) helps insurers to earn higher revenues and maintain profitability
c) sum assured and age of the person b) helps to develop the positive brand value of the company
d) term of the policy and health condition of the person c) helps the insurance company to reduce its cost
d) fails to help the client to achieve the ultimate goal for which the policy
16. The premium paid for a health insurance policy qualifies for deduction was bought.
u/s _______ of income tax act.
a) 80D b) 80C c) 80DD d) 80CCC 23) Life Insurance companies determine the level of risk based on
a) future expenses b) claims experience
c) present expenses d) targeted bonus rate
 29) ______ refers to the process of evaluating each proposal for life
24) Which of the following is not true in connection with nomination? insurance and then deciding whether or not to grant insurance and on
a) the life insured can nominate one or more than one person as what terms?
nominees. a) selection of risk b) anti-selection of risk c) claim d) none
b) nomination can be done either at the time the policy is bought or later
c) a person having a policy on the life of another can make a nomination 30) How riders will help the customer in life insurance?
d) The section 39 of Insurance Act 1938 stipulates provisions about the a) riders reduce the cost of insurance
nomination b) riders enhance the basic sum assured
c) helps to customize the insurance cover with additional benefits
25) Commutation option allows the annuity policyholder to withdraw d) claim settlement under riders is easier
_____ of corpus?
a) 25% b) 50% c) 40% d) 33% 31) Acceptence of proposal for life insurance under non-medical
underwriting is subject to _
26) Indisputability clause can be enforced by the insurance company a) upper limits on sum insured b)age at entry limits
during the ____ c) maximum term of insurance d) all of the above
a) first five years of the policy b) first two years of the policy
c) first three years of the policy d) payment of claim 32) The amount payable on maturity of Unit Linked Insurance Plan is ____
a) sum assured b) fund value
27) Which of the following statement is not correct about the Assignment? c) higher of sum assured or fund value
a) assignor must have the absolute right and title to the policy being d) lower of sum assured or fund value
assigned
b) love and affection can not be a consideration to assign a policy 33) If a policyholder suppresses material facts or if material facts in the
c) assignee can do another assignment, but can not do the nomination proposal are false, at any time upto ___ years from issuance of the policy,
d) the assignee would not have any right of the title to the policy, unless repudiation can be done by the insurer?
such assignment is registered by the insurer a) 2 b) 3 c) 4 d) 1

28) Which of the following statement is correct? 34) Which of the following is the regulator for the capital market?
a) Assignment can be done only after the commencement of the policy a) IRDAI b) RBI c) PFRDA d) SEBI
b) The nomination can be done either at the time of the proposal or after
the commencement of the policy 35) Appointment of Insurance agent by an Insurer is evidenced by
c) In case, the nominee is a minor, appointee has to be appointed a) licence issued by IRDAI b) licence issued by insurer
d) all the above statements are correct c) agency appointment letter by IRDAI
d) agency appointment letter by insurer
 40) Arrange the following techniques that can be used in handling
36) Which of the following statement is incorrect? A professional is one objections in a sequence?
____ i) Listen ii) Probe iii) Confirm iv) Answer v) Acknowledge
a) who is qualified through an extensive process of education and posses a a) i,ii,iii,iv,v b) i,v,ii,iv,iii c) iii,i,ii,v,iv d) iv,ii,i,v,iii
sound amount of knowledge
b) who need not adhere to certain accepted rules of practice 41) _________ where the bonus is arrived at as a percentage of basic
c) Who adheres to a high degree of ethical standards benefit and applying another percentage for attached bonus.
d) who brings a high degree of technical skill to what they do. a) Simple bonus b) reversionary bonus
c) compound reversionary bonus d) super compound bonus
37) Which of the following statement is incorrect regarding the portability
of health insurance policy? 42) In personal accident insurance, the main factor considered is the
a) All individual health insurance policies, including floater policies, issued occupation of the insured. On the basis of occupation, the risks associated
by non life insurance companies shall be allowed for portability with the insured person may be classified into three groups. Which
b) application for portability to another insurer has to be made at least 45 category of persons will belong to Group II?
days before the premium renewal date of the existing policy a) teachers b) persons employed in mines
c) portability can be opted by the policyholder at any time during the c) Veterinary Doctors d)Architects
currency of the policy
d) waiting period already elapsed under the existing policy with respect to 43) One way of protecting the erosion in the value of a term insurance
pre-existing diseases and time bound exclusions shall be taken into policy is by taking an
account and reduced to that extent under the newly ported policy. (a) level benefit constant term insurance
(b) decreasing benefits term insurance
38) Arrange the following stages in the sales process in a logical order (c) increasing benefit term insurance
i) presenting the solutions effectively (d) none of the above
ii) develop by qualifying the list of prospects
iii) gather information and unearth the needs 44) A father takes out a policy-to meet his son’s enhanced educational
iv) overcoming objections (if any) needs when the son reaches 18 years of age. Unfortunately, after paying 5
a) ii,iii,I,iv b) i,ii,iii,iv c) ii,iii,iv,i d) iii,iv,i,ii years premium, the father dies. By what means can the policy be kept in
force without payment further premiums so that the intended benefits are
39) ______ is the method of getting a large number of prospects by taking retained.
help from people whose words of valued by others? (a) Accident benefit premium (b) Lien on policy
a) natural market b) testimonials (c) Premium waiver facility (d) None of the above
c) conducting seminars d) centres of influence 45) The two elements involved in evaluation of risks includes probability
(a) Of loss producing events occurring and potential losses
(b) Of occurrence of events and rising inflation Answers: Mock Test - 1
(c) Of rising inflation on future income and cost of assets Q
(d) Of increasing cost of operation and employment NO Ans Q No Ans Q No Ans Q No Ans Q No Ans
1 C 11 A 21 C 31 D 41 D
46) The "duty of disclosure" follows from 2 B 12 C 22 D 32 B 42 C
(a) The doctrine of adhesion (b) The principle of Subrogation 3 A 13 C 23 B 33 B 43 C
(c) The principle of indemnity 4 D 14 D 24 C 34 D 44 C
(d) The principle of utmost good faith 5 C 15 C 25 D 35 D 45 A
6 D 16 A 26 C 36 B 46 D
47) ______ is charged to individuals if the predictive mortality does not 7 B 17 D 27 B 37 C 47 B
deviate much as compared to that indicated in the mortality table 8 B 18 A 28 D 38 A 48 A
provided by the actuaries? 9 D 19 B 29 A 39 D 49 C
(a) Substandard premium (b) Standard Premium 10 D 20 B 30 C 40 B 50 A
(c) Extra premium (d) Loaded premium
MOCK TEST - 2
48) Which of the following does not form part of occupational hazard?
a) Area of residence
b) the exposure to danger or violent occurrence at work place 1. The concept of insurance involves a transfer of
c) the chances of developing illness due to working conditions A. liability B. needs. C. ownership. D. risk.
d) increased risk of accidents while on a business tour
2. Rakesh recently bought a health insurance policy and a personal
49) A Group insurance policy provides insurance protection to a group of accident policy. What main section(s) of the insurance market do these
people brought together for a common objective. However, the group products normally fall into?
should not be ___ A. Life insurance in both cases.
a) group of employees of an organization B. Life insurance for health and non-life insurance for personal accident.
b) customers of a bank C. Non-life insurance in both cases.
c) an organization formed for the purpose of taking up life insurance D. Non-life insurance for health and life insurance for personal accident.
d) member of professional body
3. The main role of an underwriter in a life insurance company is normally
50) Which of the following health insurance policy offers fixed benefit to
cover? A. assess the acceptability of particular risks.
a) critical illness b) mediclaim c) floater d) group B. certify a loss when claims are submitted.
C. design the structure of the products to be offered.
D. negotiate with the industry regulator.
 8. Rahul is employed by Sunny. In respect of this employment, Rahul
4. Akshat is a relatively cautious person. In insurance terms, this will automatically has insurable interest in Sunny’s life up to what limit, if any?
normally increase the likelihood that he will A. Rahul’s monthly salary. B. Rahul’s pension fund value.
A. be considered an above average insurance risk. C. Sunny’s annual profit. D. There is no limit.
B. be considered a below average insurance risk.
C. require insurance cover. 9. Arun started a 20-year term insurance policy. Once established, when, if
D. require reinsurance cover. at all, is the insurer next entitled to ask him for proof of continuing good
health?
5. How are perils and hazards normally distinguished under term insurance A. At no point.
policies? B. After the end of the first 12 months.
A. Perils are medical factors which influence the risk of dying and hazards C. At the point when he changes occupation or retires.
are lifestyle activities which influence the risk of dying. D. When a lapsed policy is revived.
B. Perils are risks that policyholders will die before a specified date and
hazards are factors which could influence that risk. 10. The concept of indemnity is based on the key principle that
C. Perils are factors which affect the risk being insured and hazards are the policyholders should be prevented from
size of the risk being insured. A. insuring existing losses B. making false insurance claims.
D. Perils are factors which could influence an insured event occurring and C. paying excessively for insurance cover.
hazards are the actual events which will trigger a payout. D. profiting from insurance.

6. In insurance terms, the risk of suffering a disability is best described as 11. Once an absolute assignment is effected under a life insurance policy,
what type of risk? who will be the titleholder(s) of this policy?
A. Financial B. Fundamental. A. The assignor in all cases.
C. Homogenous. D. Speculative. B. The assignee in all cases.
C. Either the assignor or assignee depending on the type of policy involved.
7. For a household insurance policy, insurable interest need only exist at D. The assignor and assignee jointly.
outset and at what other point?
A. The date the cancellation period expires. 12. How long is the free look-in period under a term insurance policy from
B. The date a claim occurs. the date of receipt of the policy document?
C. The date the policy document is received. A. 5 days. B. 10 days. C. 15 days. D. 20 days.
D. The termination date.
13. Underwriting is the process of
A. Marketing insurance products
B. Collecting premium from customers
C. Risk collection and risk pricing A. charges refunded B. a frequency loading.
D. Selling various insurance products C. a tax rebate D. a terminal bonus.

14. A policy document for a money-back policy includes the statement ‘the 19. As per IRDA guidelines, a _____ grace period is allowed for renewal of
proposal and declaration signed by the proposer form the basis of the individual health policies?
contract’. In which main section of the policy document will this normally A. 15 days B. 30 days C. 45 days D. 60 days
appear?
A. Attestation B. Operative clause 20. The main protection need of a 19-year-old is most likely to be
C. Preamble D. Terms and conditions A. self-protection B. home loan protection
C. protection of dependants D. protection of children’s future.
15. A life insurance policy can only be made paid up if what particular
policy feature exists? 21. Though the duration of cover for pre-hospitalization expenses would
A. Indexing contribution B. Nomination facility. vary from insurer to insure and is defined in the policy, the most common
C. Rider benefits D. Savings element. cover is for ______ pre-hospitalization
A. 15 days B. 30 days C. 45 days D. 60 days
16. The main reason why a life insurance proposal form often asks for the
proposer’s height is to enable a reasonable comparison with the 22. Which of the following is an example of moral hazard?
proposer’s A. Stunt artist dies while performing a stunt
A. age B. gender C. occupation D. weight B. A person drinking copious amounts of alcohol because he is insured
C. Insured defaulting on premium payments
17. Which of the following statement/s is/are correct? D. Proposer lies in the policy document
i. In a group health insurance, any of the individuals constituting the group
could anti-select against insurer. 23. When is the best tim to start financial planning?
ii. Group health insurance provides coverage only to employer-employee A. Post retirement B. As soon as one gets his first salary
group C. After marriage
A. Statement I is true and statement ii is false D. Only after one gets rich
B. Statement ii is true and statement i is false
C. Statement I and statement ii are true 24. Which among the following is not an objective of tax plan?
D. Statement I and statement ii are false A. Maximum tax benefit
B. Reduced tax burden as a result of prudent investment
18. The amount paid out by the insurer under a 30-year life insurance C. Tax evasion D. Full advantage of tax breaks
policy exceeded the sum insured plus revisionary bonuses. The excess is
likely to result from?
25. Which among the following would you recommend on order to seek A. I and II are true B. I and II are false
protection against unforeseen events? C. I is true and II is false D. I is false and II is true
A. Insurance B. Transactional products like bank FD
C. Shares D. Debentures 31. Who provides public pensions?
A. State B. Employers C. Insurers D. NGO’s

26. Which of the below statement best describes a “testimonial”?
A. An endorsement from a satisfied customer
B. Test result for a product in a benchmarking test
C. List of test that a product must pass
D. Money required to test a product
32. Which of the below statement is incorrect?
A. Variable life insurance is a temporary life insurance policy
B. Variable life insurance is a permanent life insurance policy
C. The policy has a cash value account
D. The policy provides a minimum death benefit guarantee

27. In a customer’s mind, there are two types of feelings and related 33. Health insurance is designed to handle which of the following risks?
emotions that arise with each service failure on part of the insurance A. Mortality B. Morbidity C. Infinity D. Serendipity
company. These feelings are
A. Confusion and empathy B. Dishonesty and revenge 34. Who bears the investment risk in case of ULIPs?
C. Ignorance and sympathy D. Sense of unfairness and hurt ego A. Insurer B. Insured C. State D. IRDA

28. The changes in healthcare costs over recent years has had what
general impact on healthcare insurance?
A. A fall in average premium levels
B. A reduction in underwriting requirements.
C. A rise in the need for cover
D. A strengthening of the insurable interest rules.
29. The general need for a pension policy results from the existence of
what key problem?
A. Anticipated fall in income B. Lack of employment opportunities
C. Likely deterioration in health
D. Uncertainty over investment performance
30. Which among the below statement is true?
I. Every pension is an annuity II. Every annuity is a pension
35. Why is heredity history of importance in medical underwriting?
A. Rich parents have healthy kids
B. Certain diseases can be passed on from parents to children
C. Poor parents have malnourished kids
D. Family environment is a critical factor
36. The main purpose of including commission details in the
documentation to clients is to increase
A. competitiveness B. efficiency
C. flexibility. D. transparency
37. 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 B. Make the policy paid up.
intermediaries C. Pay out the surrender value.
D. The prime purpose of insurance regulation is to protect the Government D. Reject the claim on the grounds of misrepresentation.

38. An insurance agent has advised a client to surrender an existing 42. On the maturity of an endowment policy, a reduced sum insured is
investment product and start a new investment product. What key paid out. What is the most likely reason for this?
indicator should be used to determine whether this advice was ethical? A. The instalments were commuted by the policyholder.
A. The best interests of the client. B. The policyholder’s health seriously deteriorated during the policy term.
B. The difference in potential income and capital growth between the two C. The policy was made paid up during the policy term.
products. D. The policy was subject to a lien.
C. The flexibility of the new product compared to the old one.
D. The views expressed by the client. 43. Proportion of policies remaining in force at the end of the period out of the total
policies in force at the beginning of the period are referred to as _
A. Persistency B. ConsistencyC. Uniformity D.. Reliability
39. What key impact will low persistency levels have on insurance
policyholders?
44. During the _______period, if the policyholder has bought a policy and
A. An enhancement in product choice.
does not want it, he / she can return it and get a refund.
B. An improvement in investment performance.
A. Free evaluation B. Free look C. Cancellation D.
C. An increase in insurance cover.
Free trial
D. A reduction in benefits.
45 Under what circumstances would the policyholder need to appoint an
40. Raju died 5 years before the end of his 30-year endowment insurance
appointee?
policy. What factor most likely caused the insurer to investigate the claim
A. Insured is minor B. Nominee is a minor
using the early death claim procedures?
C. Policyholder is not of sound mind D. Policyholder is not married
A. He paid the most recent premium during the period of grace.
B. His cover was originally accepted with a premium loading on medical
46. Which of the below statement best describes the concept of claim?
grounds.
Choose the most appropriate option.
C. His death resulted from a recently acquired sudden illness.
A. A claim is a request that the insurer should make good the promise
D. The policy had lapsed and was revived shortly before he died.
specified in the contract
B. A claim is a demand that the insurer should make good the promise
41. A claim under a term insurance policy is submitted by an individual
specified in the contract
who has substantially understated his age. As an alternative to paying out
C. A claim is a demand that the insured should make good the
the full claim the insurer is most likely to take what action?
commitment specified in the agreement
A. Deduct the underpaid premiums from the sum insured.
D. A claim is a request that the insured should make good the promise Answers – Mock Test – 2
specified in the agreement
Q No Ans Q No Ans Q No Ans Q No Ans Q No Ans
47. Apart from conducting a comprehensive fact-find, the other main 1 D 11 B 21 B 31 A 41 D
action that an insurance agent can take at outset to minimise the risk of 2 C 12 C 22 D 32 A 42 C
subsequently receiving a customer complaint is to 3 A 13 C 23 B 33 B 43 A
A. ask for referrals B. offer commission rebates. 4 C 14 C 24 C 34 B 44 B
C. provide detailed disclosures 5 B 15 D 25 A 35 B 45 B
D. register with the Insurance Ombudsman. 6 A 16 D 26 A 36 D 46 B
7 B 17 D 27 D 37 B 47 C
48. An award made by the Insurance Ombudsman will only be binding on 8 A 18 D 28 C 38 A 48 A
the insurer if the 9 D 19 B 29 A 39 D 49 B
A. complainant accepts this decision 10 D 20 A 30 C 40 D 50 B
B. Consumer Forum is involved in the case.
C. insurer signs a disclaimer
D. value of the award is less than 2 lakhs.

49. A policyholder asked his insurance agent for guidance on submitting a

claim for the maturity benefit under his life insurance policy. Due to MOCK TEST – 3
pressure of work, the agent declined to assist. Consequently, this action is
deemed to be a breach of the 1) Which among the following is the regulator for the insurance industry in
A. General Insurance Council’s guidelines. India?
B. Insurance Regulatory and Development Authority’s Code of Conduct. A. Insurance Authority of India
C. Insurance Ombudsman’s protocols. B. Insurance Regulatory and Development Authority of India
D. Insurance Brokers Association of India’s membership rules. C. Life Insurance Corporation of India
D. General Insurance Corporation of India
50. Which among the following is an example of coercion?
A. Ramesh signs a contract without having knowledge of the fine print 2) Which among the following is a secondary burden of risk?
B. Ramesh threatens to kill Mahesh if he does not sign the contract A. Business interruption cost B. Goods damaged cost
C. Ramesh uses his professional standing to get Mahesh to sign a contract C. Setting aside reserves as a provision for meeting potential losses in the
D. Ramesh provides false information to get Mahesh to sign a contract future
D. Hospitalization costs as a result of heart attack

3) Which among the following is a method of risk transfer?

A. Bank FD B. Insurance C. Equity shares D.Real estate A. Post retirement B. As soon as one gets his first salary
C. After marriage D. Only after one gets rich
4) Which among the following scenarios warrants insurance?
A. The sole bread winner of a family might die untimely 11) Which among the following is not an objective of tax planning?
B. A person may lose his wallet A. Maximum tax benefit
C. Stock prices may fall drastically B. Reduced tax burden as a result of prudent investments
D. A house may lose value due to natural wear and tear C. Tax evasion D. Full advantage of tax breaks

5) Which of the below insurance scheme is run by an insurer and not 12) Which among the following is an intangible product?
sponsored by the Government? A. Car B. House C.Life insurance D. Soap
A. Employees State Insurance Corporatio B. Crop Insurance Scheme
C. Jan Arogya D. All of the above 13) The premium paid for whole life insurance is ______________ than the
premium paid for term assurance.
6) How does diversification reduce risks in financial markets? A. Higher B. Lower C. Equal D. Substantially higher
A. Collecting funds from multiple sources and investing them in one place
B. Investing funds across various asset classes 14) Which among the following is a non-traditional life insurance product?
C. Maintaining time difference between investments A. Term assurance B. Universal life insurance
D. Investing in safe assets C. Endowment insurance D. Whole life insurance

7) 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
15) Which of the below statement is correct?
A. Variable life insurance is a temporary life insurance policy
B. Variable life insurance is a permanent life insurance policy
C. The policy has a cash value account
D. The policy provides a minimum death benefit guarantee

8) Which among the following options cannot be insured by Ramesh? 16) Who provides public pension?
A. Ramesh’s house B. Ramesh’s spouse A. State B. Employers C. Insurers D. NGO’s
C. Ramesh’s friend D. Ramesh’s parents
17) Who bears the investment risk in a fixed benefit annuity?
9) Which among the following would you recommend in order to seek A. Insurer B. Insured C. State D. Risk pool
protection against unforeseen events?
A. Insurance B. Transactional products like bank FD’s 18) Which among the below statement is true?
C. Shares D. Debentures Statement I : Every pension is an annuity
Statement II : Every annuity is a pension
10) When is the best time to start financial planning? A. I and II are true B. I and II are false
C. I is true and II is false D. I is false and II is true 25) Which of the following statements about medical underwriting is
incorrect?
19) Health insurance is designed to handle which of the following risks? A. It involves high cost in collecting and assessing medical reports.
A. Mortality B. Morbidity C. Infinity D.Serendipity B. Current health status and age are the key factors in medical underwriting
for health insurance.
20) Though the duration of cover for pre-hospitalization expenses would vary C. Proposers have to undergo medical and pathological investigations to
from insurer to insurer and is defined in the policy, the most common assess their health risk profile.
cover is for __________ pre-hospitalization. D. Percentage assessment is made on each component of the risk.
A. Fifteen days B. Thirty days
C. Forty Five days D. Sixty days 26) 1) In a group health insurance, any of the individual constituting the
group could anti-select against the insurer.
21) As per IRDA guidelines, a __________ grace period is allowed for renewal 2) Group health insurance provides coverage only to employer-employee
of individual health policies. groups.
A. Fifteen days B. Thirty days A. Statement 1 is true and statement 2 is false
C. Forty Five days D. Sixty days B. Statement 2 is true and statement 1 is false
C. Statement 1 and statement 2 are true
22) Underwriting is the process of ____________. D. Statement 1 and statement 2 are false
A. Marketing insurance products
27) Who among the following is not a stakeholder in insurance claim process?
B. Collecting premiums from customers
C. Risk selection and risk pricing A. Insurance company shareholders
D. Selling various insurance products B. Human Resource Department C. Regulator D. TPA

23) The principle of utmost good faith in underwriting is required to be 28) Which of the following document is maintained at the hospital detailing
followed by _____________ . all treatment done to an in-patient?
A. The insurer B. The insured A. Investigation report B. Settlement sheet
C. Both the insurer and the insured D. The medical examination C. Case paper D. Hospital registration certificate

24) Insurable interest refers to _____________.
A. Financial interest of the person in the asset to be insured
B. The asset which is already insured
C. Each insurer’s share of loss when more than one company covers the same
loss
D. The amount of the loss that can be recovered from the insurer
29) 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
30) Which of the following documents are not required to be submitted for
Permanent Total Disability claim?
A. Duly completed Personal Accident claim form signed by the claimant.
B. Attested copy of First Information Report if applicable.
C.Permanent disability certificate from a civil surgeon or any equivalent
competent doctors certifying the disability of the insured. 37) Under what circumstances would the policyholder need to appoint an
D. Fitness certificate from the treating doctor certifying that the insured is appointee?
fit to perform his normal duties A. Insured is minor B. Nominee is a minor
C. Policyholder is not of sound mind D. Policyholder is not married
31) ___________________ are paid upfront by Assistance Company and later
claimed from insurance company. 38) Which of the following cases is likely to be declined or postponed by a life
A. Bail bond cases B. Personal accident claims insurer?
C. Overseas travel insurance claims D. Untenable claims A. Healthy 18 year old B. An obese person
C. A person suffering from AIDS
32) What is the objective behind Mortgage Redemption Insurance? D. Housewife with no income of her own
A. Facilitate cheaper mortgage rates
B. Provide financial protection for home loan borrowers 39) Which of the following is an example of moral hazard?
C. Protect value of the mortgaged property A. Stunt artist dies while performing a stunt
D. Evade eviction in case of default B. A person drinking copious amounts of alcohol because he is insured
C. Insured defaulting on premium payments
33) What does a policy lapse mean? D. Proposer lying on policy document
A. Policyholder completes premium payment for a policy
B. Policyholder discontinues premium payment for a policy 40) Which is heredity history of importance in medical underwriting?
C. Policy attains maturity A. Rich parents have healthy kids
D. Policy is withdrawn from the market B. Certain diseases can be passed on from parents to children
C. Poor parents have malnourished kids
34) Who bears the investment risk in case of ULIPs? D. Family environment is a critical factor
A. Insurer B. Insured C. State D. IRDAI
41) Which of the below statement best describes the concept of claim?
35) During the _____________ period, if the policyholder has bought a policy Choose the most appropriate option.
and does not want it, he/she can return it and get a refund. A. A claim is a request that the insurer should make good the promise
A. Free evaluation B. Free look C. Cancellation D. Free trial specified in the contract
B. A claim is a demand that the insurer should make good the promise
36) What does a first premium receipt (FPR) signify? Choose the most specified in the contract
appropriate option. C. A claim is a demand that the insured should make good the commitment
A. Free look period has ended specified in the agreement
B. It is evidence that the policy contract has begun D. A claim request that the insured should make good the promise specified
C. Policy cannot be cancelled now in the agreement
D. Policy has acquired a certain cash value
42) Which of the below statement is correct? D. Money required to test a product
A. The prime purpose of insurance regulation is to protect the insurance
companies 47) What is meant by customer lifetime value?
B. The prime purpose of insurance regulation is to protect the policyholder A. Sum of costs incurred while servicing the customer over his lifetime
C. The prime purpose of insurance regulation is to protect the insurance B. Rank given to customer based on business generated
intermediaries C. Sum of economic benefit that can be achieved by building a long term
D. The prime purpose of insurance regulation is to protect the Government relationship with the customer
D. Maximum insurance that can be attributed to the customer
43) Which of the below statement is incorrect?
A. An individual insurance agent is a representative of the insurance company 48) In a customer’s mind, there are two types of feelings and related
and is governed by the agent-principal relationship. emotions that arise with each service failure on part of the insurance
B. An individual insurance agent’s primary relationship and responsibility is company. These feelings are
to the insurance buyer and not the insurance company. A. Confusion and empathy B. Dishonesty and revenge
C. Insurance broker, who represents the insured, generally does not have any C. Ignorance and sympathy D. Sense of unfairness and hurt ego
contractual agreement to exclusively serve any one insurance company
D. Insurance broker is expected to represent the customer’s interest when 49) Which among the following is not an element of active listening?
choosing the right product and company that would best fit the customer’s
A. Paying good attention B. Being extremely judgmental
particular needs.
C. Empathetic listening D. Responding appropriately
44) In 1964, Harvard Business Review published a study on “What makes a
50) The ___________ has jurisdiction to entertain complaints, where value of
good salesman”. The author came up with an interesting insight. They
the goods or services and the compensation claimed is up to Rs. 20 lakhs.
found that a good salesman should have two basic qualities. Which are
A. District Forum B. State Commission
those two qualities? C. Zilla Parishad D. National Commission
A. Affection and Zeal to succeed B. Patience and pro-activeness
C. Empathy and ego drive D. Hunger for growth and self-confidence

45) Proportional of policies remaining in force at the end of the period out of
the total policies in force at the beginning of the period is referred to as
__________.
A. Persistency B. Consistency C. Uniformity D. Reliability

46) Which of the below statement best describes a “testimonial”

A. An endorsement from a satisfied customer
B. Test result for a product in a benchmarking test
C. List of tests that a product must pass