Exam Summary

Q-1. The Principle of Utmost Good Faith does not apply to Correct Q-2. Numerical rating system is used by……….. Incorrect Correct answer: Underwriter Q-3. What is the binding force of any contract? Correct Q-4. Mortgage redemption insurance illustrates………..( Correct Q-5. In insurance, the contingency insured against is usually the ……….. Correct Q-6. Insurance is ……….. Correct Q-7. Over time, operating expenses of insurance companies go up for rendering customer services. (1) (B) The availability of insurance gives a fillip to moral hazard Correct Q-8. When an investigation is being made in respect of an early claim Incorrect Correct answer: It should be completed within 6 months Q-9. Which of the following is not considered as a material fact? Correct Q-10. Risk retention and risk transfer techniques are best describes as which of the following:Correct Q-11. What is direct advantage of insurance……….. Correct Q-12. When it is said that insurance contract, generally speaking are contracts of

(1) Correct Q-13. the reference is to……….g.indemnity. Which of the following statement is true? Correct Q-24. Franchise in insurance parlance refers to ……… Correct Q-20. There must be a sufficiently bags number of __________ exposure units to make the losses reasonably predictable.. Who amongst the following can make the proposal for insurance of adult? Correct Q-23. The person making the proposal is called ………. Incorrect Correct answer: Promisor. Riders on life insurance policy are………. Correct Q-21. A lien holder has insurable interest in the property subject4. Insurable interest can be acquired in which of the following :. Custody of property belonging to the others e.. Which of the following is not available in variable life insurance? Incorrect Correct answer: guaranteed return on cash accumulation Q-18. Under Anticipated Endowment policies.3. Q-25.. Insurable interest between debtor and creditor. By legal possession of property Incorrect Correct answer: All of the above Q-17. Correct Q-16. Which of the following is a type of pecuniary insurance? Correct Q-14.2. Correct Q-19.(1) . Risk management is a scientific approach that deals with……… Correct Q-22. The Pure Premium will be Incorrect Correct answer: More than the Office premium Q-15.1. Bailees. A lien may be imposed by the underwriter if ………. Capital Sum Assured is payable……….

The existence of insurable interest is decided by ………… Correct Q-33. Principle of Subrogation is a corollary to…… Correct Q-37. Correct Q-38.. Licenses for working as insurance agent are given to Incorrect Correct answer: Al l the three Q-35. it is a case of ………. Correct Q-30. Material fact is ………. The business of insurance has………. The State consumer disputes redressal forum can decide cases………… Incorrect Correct answer: For compensation higher than 5 lac but lower than 20 lac Q-29. According to Fire Tariff. which of the following cannot be covered under value polices? Correct Q-39. When there is the possibility of loss or no loss is an outcome. What is not normally covered in Mediclaim? Correct Q-34. Correct . The main characteristic of a Deferred annuity is that ………. ………………………. Correct Q-28.. An annuity contract whose cash values and benefit payments are related to assets allocated is………. Correct Q-31. Incorrect Correct answer: Dynamic Risk Q-27. Correct Q-36. (A) All agreements may not be contract(1) (B) All contracts are agreement Correct Q-32. are those risk which result from changes in the society. An insurance policy is governed by Indian contract act..Correct Q-26.

policy ‘A’ will pay Rs. 6. Mohan. A portion of his factory was destroyed in fire and the loss was estimated at Rs. Incorrect Correct answer: Rs. Liability only arises as a result of dishonest service Correct Q-42. Mohan insured his factory worth Rs.________ under policy ‘B’. 1874 then _________. ______ only but policy ‘B’ will pay Rs.500/. The maximum towing charges of a private car payable is restricted to ………… Incorrect Correct answer: Rs. Which of the following fidelity guarantee policies is automatically cancelled on payment of loss? Correct . If the life insurance policy is endorsed under MWP Act.is reported under each policy.1500/Q-48. Duty of care is owed by suppliers of advice or information ii. Insured's declared value (IDV) does not apply to which of the following:Correct Q-49.40. It was reasonable that the person who took the advice or information would rely and act on that advice iv. If there are 2 insurance policies ‘A’ and ‘B’. _______ will be payable under policy ‘A’ and Rs. Suppliers of advice or information present themselves as having special skill and knowledge in the area that the information is related to iii.Q-40. less deprecation Q-47.000 Q-46. 8 lacs.and if the loss of Rs. Correct Q-43.1100/. policy ‘A’ subject to an excess of Rs. In insurance hazard are classified into……… Correct Q-41. 15 lacs.1000/. If there is a risk of high frequency and the extent of loss is very less what step is required to be taken by the person amongst the following:Correct Q-44.and policy ‘B’ subject to a franchise of Rs. ______ Correct Q-45. But if the loss under each policy was Rs. Calculate the amount of claim that will be paid to Mr. Professional Indemnity Insurance upholds that: i. Mr.1000/. Rs. The most common definition of actual cash value (ACV) in the Property insurance field is which of the following:Incorrect Correct answer: replacement cost.

The flat is damaged by an earthquake. A person owns a flat worth (market value) Rs. A good agent is one who………… Correct Q-55. for how long are the records to be kept safe? Incorrect Correct answer: 3 years Q-59. The definition of an insurance agent is given by………… Incorrect Correct answer: Insurance act Q-54.000. A. the insured will get a claim payment of ………… Correct Q-56.000. The flat is damaged by an earthquake. which loss is assessed at Rs. the endorsement or rider take precedence.000. 00. Assuming the insurer applies the principle of Average to the loss. Assuming the insurer applies the principle of average loss. Correct Q-60. It is unlikely her income will increase over this period.000. What type of insurance is she looking for?(1) Correct Q-51. One reason for exclusions in insurance policies is that the risks are covered by other insurance.Q-50. Whenever the wording in an endorsement or rider is in conflict with the terms of the policy to which it is attached.2. What does annuity signifies? Correct Q-57. 00. while she still has dependent children and a large mortgage. He has insured it only for Rs. (2) B. 1. A client explains that she only wants an insurance policy that will cover her family against financial risk over the next five years. A person owns a flat worth (market value) Rs. 50. which loss is assessed at Rs. The premium of a Mediclaim policy is not related to ……….40000.200000. He had insured it only for Rs. After the claim is paid. How the family is considered in Human Life Value pattern? Correct Q-58. .1.50.. Which of the following contracts are not contract of indemnity? Correct Q-52. Correct Q-53.1. Which of the following statements is true? Correct Q-61. the insured will get a claim payment of…….

Half yearly Vested Bonus . 00. if tabular premium is Rs. It is unlikely her income will increase over this period. Mode of Payment . 2.Incorrect Correct answer: Rs. 75.25 per thousand of SA is payable.. Plan: Endowment . Matured after 25 years.56 Rebate on quarterly Premium: 0. Last premium paid .1000 SA. From the following information.5% of tabular premium. Rebate on large sum assured: up to Rs.50. sum assured rebate is Rs.5 for yearly. Calculate yearly Premium of a SA of Rs. no rebate.1 st Feb. 15th and 20th years. 10th.50.10.83. SA rebate Re. Date of commencement. .000. 1. 10. Calculate yearly premium of Prakash at a age of 27 sum assured is Rs.50. 25. Correct . Premium on Motor Insurance policy doesn’t depend on which one of the following factors? Correct Q-63. 1998.5 per thousand Age: 30 years.1. Calculate paid – up value : Sum assured: 5. Tabular Premium: Rs.000 with health extra Rs. While Life with profits for 32 years limited payment period tabular Premium Rs. rebate for modal premium is Rs.25 years. 000 @ 1 per thousand From Rs.965 per Rs. The probability of an event is mentioned ……….70000 Q-62.1. 000.1. What type of insurance is she looking for? Correct Q-67. age nearer Birthday 32.40. Survival benefits of 15% each had paid at the of 5th. From Rs.50. while she still has dependent children and a large mortgage.50 less for Rs.000 @ 2 per thousand.000/-.50 on Rs. 42.000. Bonus had accrued at Rs.00. calculate quarterly premium? Policy: Endowment Policy.50. Interim bonus @ Rs.000 and above? Correct Q-66.000 Correct Q-68.10..Rs. What is the maturity claim amount? Correct Q-64. Sum assured: Rs.1 st Aug.27. Double Accident & Extended Permanent Disability Benefit not allowed.000. 000 and above? Correct Q-70.. 40. Accident Benefit: Rs. 001 to Rs. A Money Back policy for sum assured of Rs. 001 to Rs.50. A missing person will be presented to be deal only after ……….27. Correct Q-65. Incorrect Correct answer: either as a percentage or as a ratio Q-69. Term: 20 years. A client explains that she only wants a life insurance policy that will cover her family against financial risk over the next five years. 2007.

1. wish to apply for Term Insurance for a one year period for a sum of Rs.Earning. His retirement age is liley to be 60 years.50.000 which commenced on 15th.for policies on his own life (SA of Rs.000. 00. September 2005 where mode of payment is Half Yearly. each aged 35 years. Surana as per HLV method. Surana. 24. aged 35 years in married and is working as a Manager in Wipro Ltd. surrender value and loan available? Incorrect Correct answer: 25. Correct Q-75. 4 lacs) and for that of his wife (SA of Rs. Calculate the insurance required by Mr. Mr. His annual salary is Rs. His self maintenance expenses are Rs. Following is the date of Mr. 25. Rohan. September 1996 and due date of last unpaid premium is 15th. 2 Lac). how much times of current annual salary is needed for life insurance cover.000 as income tax every year. 12.000. 00.Rs. He pays Rs. If the mortality tables show that out of 50 lakh people 30000 die within a year.000 per year as interest income. 15.000/. In an endowment plan of 20 years.2. Calculate paid up value. if multiple method is usedCorrect Q-73. Correct . sum assured of Rs.Q-71.Batra:. Surrender value factor is 60% and loan available is 80% of surrender value. Rate of interest assumed for capitalization of future income is 8%.000 per year. Apart from this he gets approximately Rs. A group of 50000 persons. He already has his own home and savings of 42 lakhs which are well invested. He pays and annual premium of Rs.000 To support dependents 75% of pre-death salary is needed by the family.20. 30 years and married. In next 20 years he will be able to save enough to fund his retirement and his child education. 50. Assuming interest rate is 8% per annum. Which of the following insurance would be the most important for him? Correct Q-74. works for a firm which provides him medical cover. 7.000 Q-72. find the premium to be paid by each of the 50000 applicants.000.000 per annum Debts – Rs.99.2 lakh each.

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