1. The Insurance Regulatory and Development Authority (I.R.D.A.) was established in the Year: --, under The Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999.
Correct : B. 2000
2. Insurance Act, 1938, prohibits the Use of Rebates, as an Inducement to take an Insurance Policy, under --.
Correct : B. Section 41
3. Insurance Act, 1938, specifies the Rules for Nomination of Insurance-Policies under --.
Correct : A. Section 39
4. Minimum Academic Qualification of a Sepcified Person is --.
Correct : B. Class 12
5. An Applicant, seeking an Appointment as an Insurance Agent of an Insurer, shall submit an Application in Form: --, to the --- of the Insurer.
Correct : A. I-A, Designated Official
6. Integrated Grievance-Management-System (I.G.M.S.) has been launched by --.
Correct : B. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
7. Which One of the Following, can form the Basis for a Valid Consumer-Complaint?
Correct : D. The Goods, Bought by Consumer, suffers from One or More Defects.
8. Which One of the Following, cannot form the Basis for a Valid Consumer-Complaint?
Correct : C. Shop-Keeper fails to provide a Certain Product.
9. Which One of the Following, is a Tool for Monitoring the Grievance-Redressal in the Insurance-Industry?
Correct : C. Integrated Grievance-
Management-System (I.G.M.S.)
10. Which One of the Following Consumer-Disputes- Redressal-Agencies, have the Powers of a Civil Court?
Correct : D. All of the Above.
11. Which One of the Following Consumer-Disputes' Redressal-Agencies, has Supervisory Jurisdiction over State Commission?
Correct : B. National Commission
12. Which One of the Following, by Mutual Agreement of the Insured and the Insurer, can act as a Mediator and Counsellor, within the Terms of Reference, in Case of Dispute? Choose the Most Appropriate Option.
Correct : B. Ombudsman
13. If a Customer is aggrieved, by an Order, made by the District Forum, then, Where can He or She, appeal against such Order?
Correct : A. State Commission
14. If a Customer is aggrieved by an Order, made by a State Commission, then, Where can, He or She appeal, against such Order?
Correct : B. National Commission
15. Which One of the Following Acts, makes the Provision for the Establishment of Consumer-Councils and Other Authorities for the Settlement of Consumer’s Disputes, in India?
Correct : D. Consumer Protection (Amendment) Act, 2002.
16. Which One of the Following, has the Supervisory Jurisdiction over State Commission?
Correct : B. National Commission
17. What is the Maximum Amount, that can be awarded by Ombudsman, in Case of a Grievance?
Correct : B. Up To Rupees 20 Lakhs
18. Which One of the Following Statements, is In-Correct, with Regard to Process of Filing a Complaint with a Consumer-Court?
Correct : A. No One Else, Other Than the Complainant, Him-Self or Her-Self, can File a Complaint, with the State Commission or National Commission.
19. Who among the Following, is Not included in the Definition of 'Consumer', as per Consumer Protection (Amendment) Act, 2002?
Correct : D. A Person, who obtains the Goods, for Re-Sale or for Any Commercial Purpose.
20. Which One of the Following Protocols, is In-Correct, with Regard to the Recommendations, that the Ombudsman needs to follow?
Correct : A. Recommendations should be made, within 6 Months of the Receipt of such a Complaint.
21. If a Policy-Holder wishes to File a Complaint with National Commission, then What is the Amount of Fees, Payable by Him or Her?
Correct : D. No Fees is Payable for filing Customer- Complaint with National Commission.
22. Which One of the Following, is a Central Repository of Insurance Grievance Data?
Correct : C. Integrated Grievance- Management-System (I.G.M.S.)
23. Which One of the Following Consumer-Disputes Redressal-Agencies, entertains the Appeals from the District Forum?
Correct : A. State Commission
24. Which One of the Following Consumer-Disputes' Redressal-Agencies, entertains the Appeals, against the Orders of Any State Commission?
Correct : B. National Commission
25. If a Policy-Holder wishes to seek Compensation, up to Rupees 20 Lakhs, from Insurance Company, against a Grievance, then, Where Can, He or She lodge the Complaint? Choose the Most Appropriate Option.
Correct : A. District Forum
26. Which One of the Following, is Not a Direct Indicator of Service-Quality?
Correct : D. Sales Data
27. Which One of the Following, is Not a Contributor, towards Customer Life-Time Value?
Correct : D. Speculated
28. Choose the Correct Expanded Form for I.G.M.S.
Correct : D. Integrated Grievance- Management System
29. --- are a Set of Rules and Regulations that set the Rules and Guide-Lines, to effectively address the Complaints and Grievances of Policy-Holders.
Correct : B. Grievance-Redressal Procedures
30. The --- has framed the Rules, known as, Redressal of Public Grievances Rules, 1998.
Correct : D. Central Government
31. The Assignment or Transfer, upon the Reasons, In- Writing, to be communicated to the Policy-Holder, Subject to such Decision being challenged, by Way of Petition, before the --.
Correct : A. Grievance-Redressal- Authority
32. The Insured can resolve a Dispute, by approaching the Ombudsman, under --.
Correct : D. Redressal of Public Grievances Rules
33. Which of the Following, is the Main Objective of Consumer Protection Act?
(i) To Protect the Interests of the Policy-Holders.
(ii) To Protect the Interests of the Investors.
(iii) To Provide a Simple, Speedy, and In-Expensive Redressal to the Consumer-Grievances.
Correct : C. Only (iii) is Correct.
34. “Redressal of Public Grievances Rules, 1998”, came into Force on --.
Correct : B. 11th November, 1998
35. Which of the Following, is an Objective of Redressal of Public Grievances Rules?
(i) Aim at Resolving the Complaints, Relating to the Settlement of Disputes.
(ii) Protection of Consumers' Interests.
(iii) Providing the Grievances to Consumers.
Correct : A. Only (i) is Correct.
36. Which of the Following, is, a Function of Ombudsman?
(i) Redressal of Grievances to Consumer.
(ii) Protection of Consumer's Interests.
(iii) Redressal of Grievances from the Policy-Holders.
Correct : C. Only (iii) is Correct.
37. Which of the Following, has been recommended by Commission, that, the Grievance-Redressal Authorities (G.R.A.s) should be constituted, to deal with?
(i) Disputes between the Insured and the Insurer.
(ii) Disputes between the Insured and the Intermediaries.
(iii) Disputes between the Insurer and the Intermediaries.
(iv) Any Dispute between the Insured, the Insurer, and the Intermediaries.
Correct : D. Only (iv) is Correct.
38. Who shall deal with the Disputes, between the Insured and the Insurer?
Correct : B. Grievance Redressal Authorities (G.R.A.s)
39. Who shall deal with the Disputes between the Insurer and the Intermediaries?
Correct : D. Grievance-Redressal Authorities (G.R.A.)
40. --- shall have No Jurisdiction in Cases, relating to Third-Party Motor-Vehicle Insurance and Marine Insurance.
Correct : C. Grievance Redressal Authority (G.R.A.)
41. Redressal of Public Grievances Rules, 1998 created the System of --.
Correct : C. Insurance Ombudsman
42. On Which Date, was, Consumer Protection Act, formed?
Correct : C. 24th December, 1986
43. Which One of the Following, is Not an Example of Non- Verbal Communication?
Correct : B. Gesturing in an Empty Room.
44. Personal Distance is defined as --.
Correct : A. 18 Inches to 4 Feet.
45. Non-Verbal Communication is made up of --.
Correct : D. All Human Behavior
46. Identify the Place-of-Origin of Modern-Day Insurance.
Correct : C. Lloyds Coffee House in
London
47. Which One of the Following, can be used, to describe Insurance, in General?
Correct : D. Sharing of the Losses of a Few, by Many.
48. The Inhabitants of Rhodes adopted a Practice, where- by, if Some Goods were lost due to Jettisoning, during Distress, the Owners of Goods (even those who lost Nothing) would bear the Losses in Some Proportion. Which Phenomenon is illustrated, in this Scenario?
Correct : C. Mutual Insurance
49. Illustrate the Principle of Pooling, in Relation to Insurance.
Correct : A. Gathering the People, Having Similar Assets, and Exposed to Similar Risks.
50. In the Olden Days, Chinese Traders used to keep their Goods in Different Boats, while sailing through Treacherous Waters. Analyse, Why?
Correct : C. Chinese Traders placed their Goods in Multiple Boats, because it provided Insurance against Total Loss.
51. Identify a Non-Physical Asset, from the List of Following Options.
Correct : C. Goodwill
52. Mr. Manish asks His Insurance-Advisor, the Primary Purpose of Insurance. Help Mr. Manish, Identify the Primary Purpose of Insurance, from the Following Options.
Correct : C. Share the Losses of a Few, among Many.
53. What led to the Formulation of Insurance?
Correct : D. Risk
54. Which One of the Following Methods of Risk- Management, is also known as Self-Insurance?
Correct : B. Risk-Retention
55. When would You choose, to go for Insurance?
Correct : B. When the Probability of Event-Occurrence is Low, But, Severity is High.
56. Which One of the Following, is, the First Indian Insurance Company?
Correct : C. Bombay Mutual Assurance Society Limited
57. Name the Public Sector Life Assurance Company, formed as a Result of Nationalisation of Life Assurance in India.
Correct : B. Life Insurance Corporation (L.I.C.) of India
58. Discuss the Risk-Management Technique, employed by an Individual, when He or She purchases the Insurance.
Correct : C. Risk-Transfer
59. Discuss the Difference between Insurance and Assurance.
Correct : B. Insurance: Protection Against an Event, that Might Happen.
Assurance: Protection Against an Event, that Will Happen.
60. Mr. Poddar has used Insulated Wiring in His House, so as to Reduce the Chances of Damage, Due to Fire. Identify the Risk-Management Technique, practiced here.
Correct : D. Risk-Reduction and Risk- Control
61. Ms. Shaheen refuses to go on a Business-Trip to Iraq, because of Violence in the Destination Country. Identify the Risk-Management Technique, practiced here.
Correct : A. Risk-Avoidance
62. Mr. Suresh has purchased a Life Assurance Policy, so that, His Family-Members do not have to depend on Any-One, in Case of His Un-Timely Death. Identify the Risk-Management Technique, practiced here.
Correct : C. Risk-Transfer
63. Ms. Smita has set-up a Reserve Fund, to be used for the Repairs, in Case, the House is damaged for Some Reason. Identify the Risk-Management Technique, practiced here.
Correct : A. Risk-Financing
64. Which One of the Following Statements, is Correct?
Correct : D. Insurance indemnifies the Insured, in the
Event of a Loss.
65. You are an Insurance-Surveyor. On Behalf of the Insurer, Why Will You survey and inspect a Property, Prior to Insurance?
Correct : A. To Assess the Risk, for Rating Purposes.
66. Who, originally proposed the Concept of Human Life Value (H.L.V.)?
Correct : D. Professor Hubener
67. Describe an Asset, in General. Choose the Most Appropriate Option.
Correct : B. An Asset is Some-Thing, that yields a Value or a Return.
68. The Principle of Indemnity is Applicable to --.
Correct : B. General Insurance
69. Which One of the Following, cannot be categorised under the Risks, faced by Ordinary People?
Correct : C. Natural Wear and Tear.
70. Identify the Two Factors, that need to be considered, while calculating Human Life Value (H.L.V.).
Correct : B. Net-Earnings of the Bread-Winner and Annual Rate-of-Interest.
71. Which One of the Following Methods, is, a Traditional Method, that can Help Determine the Insurance, needed by an Individual?
Correct : C. Human Life-Value
72. Identify the Component, that is Not a Part of the Life Assurance Business.
Correct : D. Speculation
73. Which One of the Following, cannot be an Asset?
Correct : A. Air
74. What was the Primary Argument, behind "Buy Term Assurance and Invest the Difference, Else-Where"? Choose the Most Appropriate Option.
Correct : B. Investing the Balance Premiums, in Other Investment-Instruments, could yield a Higher Return.
75. All of the Following, are the Advantages of Cash-Value Insurance-Contracts, Except --.
Correct : D. Lower Yields
76. All of the Following, are the Dis-Advantages of Cash- Value Insurance-Contracts, Except --.
Correct : B. Safe and Secure Investment
77. Which One of the Following Statements, is In-Correct?
Correct : C. Under Mutuality, We have the Funds flowing from One Source to Many.
78. Mr. Rajan earns Rupees 1,20,000/-, a Year, and spends Rupees 24,000/-, on Him-Self. Suppose the Rate of Interest is 8% (expressed as 0.08). Calculate the Human Life Value (H.L.V.), in this Case.
Correct : A. Rupees 12 Lakhs.
79. Mr. Ramesh is 55 Years' Old, and has 5 Working-Years, Left for Retirement. Currently, His Annual Income is Rupees 5 Lakhs, and He has purchased a Life Assurance Policy of Rupees 15 Lakhs. If He were to die Pre-Maturely, in the Current-Year, it-self, then, How Much Will His Family get from the Life Assurance Company?
Correct : B. Rupees 15 Lakhs.
80. Ms. Prajakta earns Rupees 2,40,000/-, Per Annum. She spends Rupees 1 Lakh, Per Annum, on Her-Self. The Market Rate-of-Interest is 7%. Calculate Ms. Prajakta's Life Assurance Amount, through the Human Life Value (H.L.V.) Method.
Correct : B. Rupees 20 Lakhs.
81. Compare the Probability of a Contingent-Event, with Regard to Life Assurance and General Insurance.
Correct : D. The Probability of the Event-Happening, increases in Case of Life Assurance, and stays Constant in Case of General Insurance.
82. Analyse the Following Two Statements, and Determine the True One(s): Statement-I: The Contingent-Event occurs Certainly, in Case of General Insurance. Statement-II: The Contingent-Event occurs Certainly, in Case of Life Assurance.
Correct : B. Statement-II is True.
83. Suggest a Class of Insurance, that will provide the Protection against Loss of Goodwill.
Correct : C. Liability Insurance
84. Explain to us, Why, Young People are charged Less Life Assurance Premium, when compared to the Old People.
Correct : C. Mortality is Directly Proportional to Age.
85. --- Planning involves: How Much You should Save for Your After-Working-Life, and Where should You Invest those Funds.
Correct : D. Retirement
86. Name the Term, used to denote the Rise in the General Level of Prices of Goods and Services, in an Economy, Over a Period of Time. Choose the Most Appropriate Option.
Correct : B. Inflation
87. What is the Term, used to refer to the Value of What You Own, Minus, the Value of What You Owe?
Correct : A. Net-Worth
88. Assess the Impact of Inflation on Your Investment- Returns.
Correct : C. Inflation has a Corroding Impact on the Investment-Returns.
89. Examine the Following Options, and Identify the One, which is Not a Credit-Management Decision. Choose the Most Appropriate Option.
Correct : A. Investing Money in a Bank-Deposit.
90. Identify the Stage of Life, when an Individual will appreciate His or Her Long-Term Savings, the Most.
Correct : D. Post-Retirement
91. Suggest a Good Time to Start the Financial Planning.
Correct : C. On Receipt of First Salary
92. Creating a Current Cash-Flow Statement and Balance- Sheet, help, with Which Step of the Financial Planning Process?
Correct : B. Determining the Current Financial Position.
93. Performing an Analysis of Current Income-Flow and Expenditure-Flow, is termed as --.
Correct : B. Budgeting
94. Which One of the Following, is, the Least Likely Way, that, You may benefit from Having an Understanding of Personal Finance?
Correct : A. Becoming Director of a Large Bank.
95. What is the Purpose, behind buying Insurance?
Correct : C. Protection Against Un- Certainty.
96. What happens in the Distribution-Phase of Retirement- Planning?
Correct : C. Corpus is converted into Withdrawal or Annuities, for meeting the Income-Needs, Post- Retirement.
97. Describe the Purpose of Tax-Planning. Choose the Most Appropriate Option.
Correct : B. Planning Your Investments, in a Manner, such that, Maximum Benefits are Applicable.
98. Explain: 'Risk-Tolerance'. Choose the Most Appropriate Option.
Correct : B. Amount of Risk, One is Willing to Bear, while Investing.
99. Illustrate the Computation, a Person would use, to Determine the Current Value of a Desired Amount, for the Future.
Correct : B. Present Value of a Single Amount
100. What is involved in Future-Value Calculations? Choose the Most Appropriate Option.