1. Who is protected under the In-Contestability Clause included under a Life Assurance Policy?
Correct : B. Insured
2. Section 45 (Indisputability Clause) of Insurance Act, protects the Insured, from Rejection of Claim, by the Insurer; provided the Policy has completed --. Choose the Most Appropriate Option.
Correct : B. Three Years
3. As per the Suicide Clause, if the Life-Assured Dies, as a Result of Suicide, After 3 Years of the Issue of Policy, What Does the Beneficiary Receive as the Claim?
Correct : D. Full Face-Amount of the Policy.
4. What Does, First Premium Receipt (F.P.R.), signify?
Correct : B. It is the Evidence, that the Policy-Contract has begun.
5. Identify the Document, that evidences a Contract, between the Insurer and the Insured.
Correct : D. Policy-Document
6. If Complex Language is used to word a Certain Policy- Document, and it has given Rise to an Ambiguity, How Will it generally be construed?
Correct : A. In Favour of the Insured.
7. With Regards to Mis-Statement of Age, Select the Valid Option:
I: An Under-Statement of Age, will result in the Original Policy being re-issued, for a Reduced Amount.
II: An Over-Statement of Age, will, usually, result in a Refund of Premium-Payment.
Correct : C. I and II.
8. Which of the Following, is Not a Part of a Standard Policy-Document?
Correct : D. Policy Forfeiture Provisions
9. Give us, the Proof of Contract between the Insurer and the Insured.
Correct : D. Policy Document
10. Gives us, an Example of a Standard Policy-Provision.
Correct : B. Suicide Clause
11. Gives us, an Example of a Policy-Specific Provision.
Correct : D. A Clause, Precluding the Death Due to Pregnancy, for a Lady, Who is Expecting, at the Time of Writing the Contract.
12. Which One of the Following, forms the First Part of a Standard Insurance Policy-Document?
Correct : A. Policy-Schedule
13. Select the Correct Statement.
Correct : B. The Policy Document has to be signed by a Competent Authority, and should be stamped according to Indian Stamp Act.
14. What Will Happen, if the Insured-Person loses the Original Life Assurance Policy-Document?
Correct : A. The Insurance Company will issue a Duplicate Policy, Without Making Any Changes to the Contract.
15. Which One of the Following Documents, will be issued by the Insurance Company, on Receipt of Subsequent Premiums, After the First Premium?
Correct : D. Renewal Premium Receipt
16. In Order for the Policy to acquire a Guaranteed Surrender-Value (G.S.V.), For How Long, must, the Premiums be Paid, as per the Regulations?
Correct : C. 3 Consecutive Years
17. For a Life Assurance Policy, Nomination is allowed Under --- of Insurance Act, 1938.
Correct : C. Section 39
18. Identify the Circumstances, under which, the Policy- Holder would need to appoint an Appointee.
Correct : B. Nominee is a Minor
19. Illustrate the Purpose of Grace-Period.
Correct : B. It grants the Policy- Holder, An Additional Time, to Pay His or Her Premium.
20. All of the Following Statements, are True, with Regard to Nomination, Except --.
Correct : D. A Nominee has Full Rights on the Whole of the Claim.
21. When is a Policy, Deemed to be Lapsed?
Correct : C. If the Premium has Not been paid, even After Expiry of Grace-Period.
22. Construct a Situation, that would require Evidence of Insurability, at Revival.
Correct : B. Policy has been Lapsed, for More Than a Year.
23. Construct a Valid Argument in Favour of Policy-Loans.
Correct : C. There is No Legal Obligation to Re-Pay the Loan.
24. Select the Correct Statement, with Regard to Grace- Period. Choose the Most Appropriate Option.
Correct : A. The Standard Length of the Grace-Period is 1 Month or 31 Days.
25. Which One of the Following Alterations, will be permitted, by an Insurance Company?
Correct : A. Splitting-Up of the Policy into Two or More Policies.
26. Explain the Concept of Surrender-Value.
Correct : B. Cash-Value, Associated with the Policy, in Case, the Premiums have been Paid, for 3 Years, at least.
27. How Many Persons, can be nominated under a Policy? Choose the Most Appropriate Option.
Correct : D. One or More Than One
28. Describe the Purpose of Nomination.
Correct : B. To Appoint a Person, to Receive the Policy- Monies, in the Event of the Life-Assured's Death.
29. Describe the Purpose of Assignment.
Correct : A. To Transfer the Rights of the Policy.
30. Illustrate the Process involved in Ordinary Revival of Policy.
Correct : B. Payment of Arrears, With Interest.
31. Which One of the Following Documents, is not accepted as a Standard Age-Proof Document?
Correct : C. Horoscope
32. Which One of the Following Statements, is Correct, with Regard to 'Anti-Selection'?
Correct : B. Anti-Selection is the Tendency of People, Who suspect or know that, their Chance of Experiencing a Loss is High, to seek-out the Insurance, Eagerly; and to gain in the Process.
33. Who among the Following Individuals, are considered as High-Risk by Insurance Companies? Choose the Most Appropriate Option.
Correct : C. Individuals, who are Under the Influence of Sedatives and Other Stimulants.
34. Who among the Following, is Likely to be Exposed to Health-Hazard, in His or Her Occupation?
Correct : D. Person, Exposed to Mining Dust
35. Who among the Following, is Likely to be Exposed to Accidental Hazard, in His or Her Occupation? Choose the Most Appropriate Option.
Correct : C. Demolition-Experts
36. --- implies that if the Life-Assured dies from a Specified Cause, within a Given Period, Only a Decreased Amount of Death-Benefit may be Payable.
Correct : B. Lien
37. Which One of the Following Statements, is In-Correct, with Regard to Numerical Rating Method of Underwriting?
Correct : B. Under this Method, Underwriters assign the Positive Points for Any Positive or Favourable Factors.
38. Which One of the Following Statements, is In-Correct, with Regard to Judgement Method of Underwriting?
Correct : D. In this Method, the Underwriter assign Positive or Negative Rating-Points to the Adverse Factors.
39. Mr. Vimal is a 32-Years' Old, Healthy, Non-Smoker, Teetotaller Individual; Who applies for Life Assurance from ABC Limited Insurance Company. Which One of the Following Statements, will Hold True, with Regard to Risk-Acceptance by the Insurance Company?
Correct : A. Risk will be Accepted at Ordinary Rates.
40. If, Mr. Brijesh, a 40-Years' Old Individual, is perceived as a 'Sub-Standard Risk', by the Insurance Company, then, Which One of the Following Statements, will Hold True, with Regard to Risk-Acceptance by the Insurance Company?
Correct : C. Risk will be Accepted With an Extra, Over the Tabular Rate of Premium.
41. What is meant by 'Risk-Classification'? Choose the Most Appropriate Option.
Correct : A. The Process, in which, Individual Lives are Categorised and Assigned to Different Risk-Classes, Depending on the Degree of Risks, they Pose.
42. --- means that, the Applicants, Who are exposed to Similar Degrees of Risk, must be placed in the Same Premium-Class.
Correct : D. Equity
43. Which One of the Following Statements, is Correct, with Regard to 'Sub-Standard Lives', under Risk- Classification? Choose the Most Appropriate Option.
Correct : C. Sub-Standard Lives consist of those Individuals, whose Anticipated Mortality is Higher Than the Average Lives or Standard Lives, but, are still considered to be Insurable.
44. Which One of the Following Statements, is Correct, with Regard to 'Declined Lives', under Risk- Classification?
Correct : B. 'Declined Lives' consist of those Individuals, whose Impairments and Anticipated Extra Mortality are So Great, that they could not be provided Insurance- Coverage, at an Affordable Cost.
45. If an Insurance Company accepts a Risk, with a Lien on Sum-Assured, then What Does this imply?
Correct : A. Lien implies that, if the Life-Assured Dies from a Specified Cause, Within a Given Period, Only a Decreased Amount of Death-Benefit may be Payable.
46. When the Insurer promises to pay the Insured, a Specified Amount at the End of the Term, if the Insured survives the Plan’s Entire Term, then the Claim will be known as --.
Correct : D. Maturity-Claim
47. If Insurance Company makes Periodical Payments, to the Insured, at Specified Intervals, During the Term of the Policy, then, these Payments are being made as per --.
Correct : A. Survival-Benefit Payments
48. A Life Assurance Company paid the Treatment Costs to the Insured, During the Event of Hospitalisation of the Insured, During the Policy-Term. This is an Example of --.
Correct : C. Rider-Benefit
49. ABC Insurance Company has offered an Insurance-Plan to Mr. Krishna, with a Provision of Survival-Claim. How will the Company ascertain the Survival-Claim? Choose the Most Appropriate Option.
Correct : A. Claim will be ascertained, as per the Conditions, stipulated in the Policy.
50. Ms. Kavita purchases a Critical Illness (C.I.) Rider, along with, a Term Assurance Plan, from ABC Insurance Company. How Will, the Company ascertain the Claim for the Critical Illness (C.I.) Rider? Choose the Most Appropriate Option.
Correct : D. Claims will be ascertained, based on the Medical and Other Records, provided by the Policy-Holder, in Support of Her Claim.
51. A --- is a Demand, that, the Insurer should Make Good the Promise, Specified in the Contract.
Correct : A. Claim
52. Which One of the Following Statements, is In-Correct, with Regard to 'Surrender' of the Policy?
Correct : C. Actual Surrender-Value, Paid to the Insured, is Always Less Than the Gross Surrender-Value.
53. Which One of the Following Statements, is In-Correct, with Regard to Critical Illness (C.I.) Rider? Choose the Most Appropriate Option.
Correct : D. The Life Assurance Policy Contract Terminates, After the Rider-Payments are Made.
54. Mr. Nimesh bought a 20-Years' Unit-Linked Insurance Plan (U.L.I.P.). In the Event: Mr. Nimesh dies, Within the Policy-Term, Which of the Following, will be paid?
Correct : D. Higher of Sum-Assured or Fund-Value, will be paid.
55. What is the Period, up to which, a Policy can be repudiated, by the Insurance Company, if, Material Facts presented by the Insured, in the Proposal, are False?
Correct : D. Up To 3 Years
56. As per Insurance Regulatory and Development Authority of India (I.R.D.A.I.) (Protection of Policy- Holders' Interests) Regulations, 2017, What is the Stipulated Period, within which, Claim under a Life Assurance Policy, shall be paid or shall be disputed, provided that, the Company has received All Relevant Papers?
Correct : C. Within 30 Days
57. In Case of Presumption of Death of Life-Assured, Which One of the Following Documents, needs to be submitted, by the Nominee?
Correct : B. Decree from a Competent Court.
58. Mr. Brijesh purchased a 20-Years' Unit-Linked Insurance-Plan (U.L.I.P.), from ABC Insurance Company. If Mr. Brijesh Dies, Before the Maturity of the Policy, then Insurance Company will have to pay --.
Correct : D. Higher of Sum-Assured or Fund-Value.
59. Which One of the Following Claims, can be Payable, Only to the Assignee or Nominee?
Correct : A. Death-Claim
60. Which One of the Following Documents, is an Additional Document, required to be submitted for Claim, in Case of Accidental Death, as compared to Natural Death?
Correct : C. Post-Mortem Report
61. Which One of the Following Documents, needs to be submitted, by the Nominee, in the Event of Natural Death of the Life-Assured? Choose the Most Appropriate Option.
Correct : B. Death-Certificate
62. Mr. Rahul had purchased an Insurance-Cover, from ABC Insurance Company, for a Period of 20 Years. On Completion of 20 Years, the Company pays Fund-Value to Mr. Rahul, as the Maturity-Claim. Which Type of Plan, was taken, by Mr. Rahul?
Correct : C. Unit-Linked Insurance Plan (U.L.I.P.)
63. Mr. Vishal had taken an Insurance of Rupees 50 Lakhs, for a Period of 25 Years. On Maturity, the Insurer pays the Maturity-Claim Minus the Survival-Benefits, Received During the Term of the Policy. Which Type of Plan, was taken, by Mr. Vishal?
Correct : D. Money-Back Assurance Plan
64. Mr. Sudhir had taken an Insurance-Cover of Rupees 25 Lakhs, from ABC Insurance Company, 20 Years Back. On Maturity, the Company pays the Sum-Assured Plus Accumulated Bonuses, Less the Dues (Outstanding Premium(s)), as the Maturity-Claim, to Mr. Sudhir. Which Type of Plan, was taken, by Mr. Sudhir?
Correct : A. Participating Plan
65. Mr. Kapil had taken Insurance-Cover of Rupees 50 Lakhs, for a Period of 25 Years. Mr. Kapil dies in a Car- Accident, during the Policy-Term, and the Company pays the Sum-Assured Plus Accumulated Bonuses, to His Nominee. Which Type of Claim, was paid by the Insurance Company?
Correct : B. Death-Claim
66. Why Do, Insurers need Material Information?
Correct : B. Decide on the Risk- Acceptance, and the Terms and Conditions, Associated.
67. Which Element of a Valid Contract, relates to Insurance-Premium?
Correct : D. Consideration
68. Identify the Choice, which relates to In-Accurate Statements, which are made with Any Fraudulent Intention.
Correct : B. Mis-Representation
69. Identify the Option, that can be treated as a Valid Contract.
Correct : A. Mr. Ramesh buys a Property, from His Friend, for a Throw- Away Price.
70. Compare: Gambling and Insurance.
Correct : B. Gambling has No Insurable Interest involved, but Insurance does have.
71. Summarise "Contracts of Adhesion", for us.
Correct : B. These Contracts are drafted by One Party, and the Other can only Accept or Reject it.
72. Mr. Ramesh fudges His Company Balance-Sheet, Before Selling-Out the Company. Categorise His Action into One of the Following Options.
Correct : D. Fraud
73. What is the Subject-Matter of Life Assurance?
Correct : B. Human Life
74. Select a Scenario, that showcases the Principle of Uberrima Fides.
Correct : B. Disclosing All Material Information on the Insurance Proposal- Form.
75. In Relation to Life Assurance, Look at the Following Two Statements, and Select the True One(s):
I: Age is Material Information, and may affect the Terms of Underwriting.
II: If Age is Found to be Different, the Only Effect is on the Premium-Rate.
Correct : A. Only Statement-I is True.
76. Select a Reason, for Discharging a Contract, Under Common Law.
Correct : C. Mis-Representation
77. Label the Document, that is used, to lay-down the Terms of the Insurance Contract, when it is bought. Choose the Most Appropriate Option.
Correct : A. Policy
78. Label the Interest, that the Insured has, in the Subject-Matter of Life Assurance. Choose the Most Appropriate Option.
Correct : C. Insurable Interest
79. How Would You Describe the Agreement between the Insurer and the Insured? Choose the Most Appropriate Option.
Correct : D. Contingent Agreement
80. The Main Difference between Legal Contracts, in General; and Insurance Contracts, is that --.
Correct : A. Insurance Contracts are the Contracts of Uberrima Fidei.
81. Advise Mr. Rajan, on the Point or Time, when Insurable Interest has to be Present, in Case of Life Assurance.
Correct : A. Only at the Time of Taking the Policy.
82. Advise Miss Anita, on the Point or Time, when Insurable Interest has to be Present, in Case of Property-Insurance.
Correct : C. At the Time of Taking a Policy, and at the Time of Making a Claim.
83. Mr. Mahesh takes out an Insurance Policy on His House. He sells His House, After a Couple of Months of taking the Policy. In Case, there is Some Damage to the House, can Mr. Mahesh receive the Claim?
Correct : D. No, Because, there is No Insurable Interest, Present.
84. Mr. Rajan fell-off a Horse, and landed in a Puddle. He had to lie in the Puddle for a Long-Time, because, the Fall had broken His Leg, this resulted in Him contracting a Severe Pneumonia. He was treated in a Near-By Hospital, where, He dies, as a Result of Pneumonia. What is the Proximate Cause of Death, in this Case?
Correct : B. Leg-Injury, sustained as a Result of the Fall.
85. Mr. Ramesh is Married, and wants to buy a Life Assurance Cover on His Friend's Life. Find Out, if He will be Able to do so.
Correct : C. No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because, there is No Insurable Interest, Present.
86. Which One of the Following Bodies, regulates the Insurance Companies in India?
Correct : C. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
87. Who among the Following, are Not Regulated by Insurance Regulatory and Development Authority of India (I.R.D.A.I.)?
Correct : C. Current Account-Savings Account (C.A.-S.A.) Agents
88. Which One of the Following Statements, is Correct?
Correct : A. The Prime Purpose of Insurance-Regulation,
is, To Protect the Policy- Holders' Interests.
89. What is the Prime Purpose of Insurance-Regulation? Choose the Most Appropriate Answer.
Correct : D. To Protect the Policy- Holders' Interests.
90. Which One of the Following Bodies, can issue the License to work as Individual Agents, in India?
Correct : D. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
91. Which One of the Following Bodies, regulates the Capital Market in India?
Correct : B. Securities and Exchange Board of India (S.E.B.I.)
92. Which One of the Following Bodies regulates the Banks in India?
Correct : A. Reserve Bank of India (R.B.I.)
93. Third-Party Administrators (T.P.A.s) are Regulated, by Which of the Following Bodies?
Correct : B. Insurance Regulatory and Development Authority of India
(I.R.D.A.I.)
94. Which One of the Following, is the Basic Insurance Legislation of the Country, that governs Insurance Business in India?
Correct : B. Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999.
95. Insurance Agents, who hold the Licence to act as Agents for Both: Life Insurer, General Insurer, Health Insurer, and Each of the Two Mono-Line Insurers, are called --.
Correct : D. Composite Insurance Agents
96. --- was established in the Year: 2000, as an In- Dependent Authority, to Regulate and Develop the Insurance Industry.
Correct : C. Insurance Regulatory and Development Authority (I.R.D.A.)
97. Which One of the Following Bodies, has prescribed the Regulations for Protecting the Interests of Policy- Holders, stipulating the Obligations on Both: Insurers as well as Intermediaries?
Correct : C. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
98. Which One of the Following Acts, has the Provisions for Monitoring and Control of Operations of Insurance Companies?
Correct : A. Insurance Regulatory and Development
Authority (I.R.D.A.) Act, 1999.
99. If Insurance Firm accepts such Applicants, Who are at a Greater Than Normal Risk or are Not Insurable, but conceal or falsify the Information about their Actual Condition or Situation, so that, they get Insurance, then this will be known as --. Choose the Most Appropriate Option.