1. Illustrate the First Step of Financial Planning Process.
Correct : C. Analyse the Current Financial Situation.
2. Illustrate, as to How, the Internet aids in the Process of Financial Planning ... I: Provides the Information, Related to Various Facets of Financial Planning. II: Provides the Up-Dated Information, Regarding the Performance of Various Investment-Products. III: Provides the Quotations, which can aid in making the Financial Decisions.
Correct : D. I, II, and III.
3. Identify a Product, that can be categorised under Transactional-Products.
Correct : A. Bank Deposits
4. Identify a Product, that can be categorised under Contingency-Products. Choose the Most Appropriate Option.
Correct : D. Life Assurance
5. In India, Whole-Life Assurance Plans, --.
Correct : A. Pay the Death-Benefits, on Death of the Life- Assured
6. Describe the Primary Objective behind Buying an Insurance Product.
Correct : C. Protection against the Loss of Economic Value of an Individual’s Productive Abilities
7. The Premium, Paid for Whole-Life Assurance, is --- than the Premium, Paid for Term Assurance.
Correct : C. Higher
8. Identify the Flip-Side of a Term Assurance.
Correct : C. It does not provide Any Returns, on Maturity.
9. Identify the Life Assurance Plan, where, the Premium is Payable throughout the Life of the Life-Assured.
Correct : A. Whole-Life Assurance
10. Pick an Attribute, that can be associated with Life Assurance Policies.
Correct : C. In-Tangibility
11. Mortgage-Redemption-Insurance (M.R.I.) is an Example of --.
Correct : A. Decreasing, Term Assurance
12. Select the Option, that is True, with Regard to Term Assurance Plans.
Correct : C. Term Assurance Plans can be bought as a Stand-Alone Policy, as well as, a Rider with Another Policy.
13. The Conversion-Option in a Term Assurance Plan, can be used to convert the Policy, into Which One of the Following Plans?
Correct : A. Whole-Life Assurance
14. Name the Policy, that combines Pure Life Assurance with a Savings-Element. If the Life-Assured lives upto Some Specified Time, then He or She receives the Policy's Face-Value.
Correct : D. Whole-Life Assurance Policy
15. Name the Term, used to describe "With-Profits" Policies.
Correct : B. Participating Policies
16. Describe a Tangible Product.
Correct : B. A Tangible Product refers to the Physical Objects, that can be Directly Perceived by Touch.
17. Describe an In-Tangible Product.
Correct : A. An In-Tangible Product refers to the Products, that can Only be Perceived In-Directly.
18. You are Paying a Higher Premium towards Your Life Assurance Policy, as compared to the Others. What Impact, will it have, on the Compensation-Paid, (as compared to the Others), to the Beneficiary, in the Event of Your Death?
Correct : B. Compensation will be Higher.
19. --- is an Example of an In-Tangible Product.
Correct : C. Life Assurance
20. Inter-Temporal Allocation of Resources, refers to --.
Correct : B. Allocation of Resources, over Time
21. From the Following Options, Identify a Non-Traditional Life Assurance Product.
Correct : B. Universal Life Assurance
22. From the Following Options, Identify a Traditional Life Assurance Product.
Correct : A. Term Assurance
23. Describe One of the Major Innovations of the Universal Life Assurance Policy. Choose the Most Appropriate Option.
Correct : B. Completely Flexible Premiums, After First Policy-Year.
24. Why is, Cash in the Accumulation Account, Not Guaranteed, in Case of Variable Life Assurance Products?
Correct : B. Money is invested in the Stocks, through Mutual Funds, where, there are No Guarantees.
25. Identify a Limitation of Traditional Life Assurance Products.
Correct : D. Rate-of-Return is Not Easy to ascertain.
26. All of the Following Statements are False, with Respect to Unit-Linked Insurance Plans (U.L.I.P.s), Except:
Correct : C. Unit-Linked Insurance Plans (U.L.I.P.s) are Transperant with Regard to their Term- Component, Expenses-
Component, and Savings- Component.
27. Suggest a Non-Traditional Life Assurance Product.
Correct : B. Variable Life Assurance
28. Non-Traditional Life Assurance Products satisfy a Certain Motive of Many Investors. Select the Most Appropriate Option.
Correct : C. Wealth-Accumulation
29. Which One of the Following, is Not a Limitation of Traditional Life Assurance Products? Choose the Most Appropriate Option.
Correct : B. In-Sufficient Coverage.
30. Choose the Correct Statement.
Correct : B. Variable Life Assurance is a Permanent Life Assurance.
31. Name the Two Areas, Related to Non-Traditional Insurance-Products, where, the Customers can exercise their Choice.
Correct : A. Altering the Premium and Benefit-Structure, and Choose: How to Invest the Premium- Proceeds.
32. Where was, Universal Life Assurance, introduced First?
Correct : A. United States of America (U.S.A.)
33. Expand the Term: U.L.I.P.
Correct : C. Unit-Linked Insurance Policy
34. What Does, Un-Bundling of Life Assurance Products, refers to?
Correct : D. Separation of the Protection-Element and Savings-Element.
35. A Policy is effected under Married Women's Property (M.W.P.) Act. If the Policy-Holder does not appoint a Special Trustee to receive and administer the Benefits under the Policy, the Sum, secured under the Policy, becomes Payable to --.
Correct : B. Official Trustee of the State
36. Which Section of Married Women's Property (M.W.P.) Act, provides for Security of Benefits under a Life Assurance Policy, to the Wife and Children?
Correct : C. Section 6
37. Mortgage-Redemption-Insurance (M.R.I.) provides --- Protection, for Home-Loan Borrowers.
Correct : B. Financial
38. Key-Man Insurance is a Term Assurance Policy, where, the Sum-Assured is Linked to --.
Correct : A. Business-Profitability of the Company
39. Who is a Key-Man?
Correct : B. Person, Critical to the Business-Operations.
40. Identify the Benefits of taking-out a Key-Man Insurance Policy.
Correct : B. Off-Set the Business- Continuity-Costs.
41. Categorise Mortgage-Redemption-Insurance, Under One of the Following Options.
Correct : B. Decreasing, Term
Assurance
42. In Case of a Policy, effected under Married Women's Property (M.W.P.) Act, the Policy-Monies shall be Payable to --.
Correct : A. Trustee
43. Select the Factor, that is Linked to the Sum-Assured under a Key-Man Insurance Policy.
Correct : B. Business-Profitability
44. Select the Loss, covered under Key-Man Insurance.
Correct : B. Losses, Related to the Extended Period, when a Key-Person is Unable to Work.
45. What is the Tax-Treatment offered under Key-Man Insurance?
Correct : B. Premiums are Treated
as Business-Expense, and are Tax-Exempt.
46. If You need to purchase a Key-Man Insurance Policy, then, What is the Information, that is going to be sought by the Insurer, to assess the Application?
Correct : A. Business’ Audited Financial Statements and Filed Income-Tax (I.T.) Returns
47. Expand the Term: M.R.I.
Correct : B. Mortgage-Redemption- Insurance
48. Why, Mortgage-Redemption-Insurance (M.R.I.) referred to as 'Decreasing, Term Assurance'?
Correct : B. Cover decreases along with the Policy-Term.
49. What will be Looked At, in order to determine the Sum-Assured, under Key-Man Insurance?
Correct : C. Audited Financial Statements of the Business and Income- Tax (I.T.) Returns.
50. Which of the Following, are the Components, used to calculate the Gross Premium? I: Net Premium. II: Expense-Loading. III: Loading for Contingencies. IV: Bonus-Loading.
Correct : D. I, II, III, and IV.
51. What Does the Term: “Premium”, Denote, in Relation to an Insurance Policy?
Correct : B. Price, Paid by an Insured, for Purchasing the Policy.
52. Illustrate the Purpose of Having the Capital-Adequacy Norms for the Insurers.
Correct : C. To Maintain the Sufficient Reserves, to Address the Present Needs and Future Needs.
53. What Does, Valuation in Life Assurance, mean?
Correct : D. The Process, by which, the Value of All the Existing Policies, is ascertained, in a Life Assurance Company.
54. Identify the Option, that can be termed as Policy- Withdrawal.
Correct : A. Surrender of the Policy, in Return for Acquired Surrender-Value.
55. All of the Following, are the Components of Unit- Linked Insurance-Plan (U.L.I.P.) Premiums, Except --.
Correct : D. Social Security Charge, to fulfill Rural Obligations of the Insurance Company, as mandated by Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
56. Formulate a Way of Defining the Surplus, with Regard to Insurance Companies.
Correct : D. Excess Value of Assets over Liabilities.
57. In Case of --, an Insurance Company expresses the Bonus, as a Percentage of Basic Benefit and Already Attached Bonuses.
Correct : B. Compound Bonus
58. From the Following Options, Select the One, that is Not a Factor, in Determining the Life Assurance Premium.
Correct : B. Rebate
59. Select the True Statements.
Correct : B. The Typical Loading to a Net Premium, would have 3 Parts:
1) A Percentage of Premiums,
2) A Constant Amount for Each ‘1,000 Sum-
Assured’, and
3) A Constant Amount per Policy.
60. With Regard to Valuation of Assets, by Insurance Companies, What is the Value, at which, the Life Insurer has purchased or acquired its Assets?
Correct : D. Book-Value
61. In Which Case, Does, a Company express the Bonus, as a Percentage of Basic Benefit and Already Attached Bonuses?
Correct : B. Compound Bonus
62. Name the Two Policy-Features, on which, Rebates on Premium can be offered by the Insurer.
Correct : C. Sum-Assured and Mode of Premiums
63. Who bears the Mortality-Risk, in Case of Unit-Linked Insurance-Plans (U.L.I.P.s)?
Correct : A. Insurer
64. Discover the Scenario, where-in, the Insurer may charge an Extra Premium, to the Insured.
Correct : C. Insured is a Sub- Standard Risk.
65. --- is an Example of a Standard Age-Proof.
Correct : C. Pass-Port
66. The Free-Look Period of a Policy lasts for --- Days.
Correct : A. 15
67. Money-Laundering is the Process of Bringing --- Money, into an Economy, by Hiding its --- Origin, so that, it appears to be Legally Acquired.
Correct : A. Illegal, Illegal
68. --- need to be mentioned in the Agent's Report. Choose the Most Appropriate Option.
Correct : A. Matters of Health, Habits and Occupation, Income and Family Details
69. --- are recorded and mentioned by the Doctor in His or Her Report, called the Medical Examiner’s Report. Choose the Most Appropriate Option.
Correct : C. Details pertaining to Physical Features, like: Height, Weight, Blood- Pressure
70. Identify the Formal Legal Document, used by Insurance Companies, that provides the Details about the Product. Choose the Most Appropriate Option.
Correct : D. Prospectus
71. Identify the Feature, that will be checked, in a Medical Examiner's Report.
Correct : B. Height, Weight, and Blood-Pressure.
72. Isolate the Valid Combination: Type of Age-Proofs: I: Standard II: Non-Standard Age-Proofs: a: Pass-Port b: Horoscope c: Panchayat Certificate
Correct : D. I-a
73. Which One of the Following, is Not a Know-Your- Customer (K.Y.C.) Document?
Correct : D. Horoscope
74. Mr. Mahesh is a Drug-Dealer. He doesn't have a Regular Job. He made Rupees 10 Lakhs, from Sale of Drugs. He can't buy a House or Car, etc., with the Money. If He does, the Government will get Suspicious, and start investigating the Drug-Dealer. So, the Drug-Dealer opens a Bar or Tavern, and pads the Books to show Huge Profits on the Tavern, and pays His Taxes on the Money. This is an Example of --.
Correct : C. Money-Laundering
75. Look at the Following Scenarios, and Select the Ones, that need to be flagged under an Anti-Money- Laundering (A.M.L.) Programme.
I: A Customer cancels a Transaction, and requests to do a Second Transaction for Less Amount, in order to avoid providing His or Her Identity-Proof.
II: A Customer requests an Un-Usually High Dollar- Transaction, and cannot explain the Reason for the Transaction or the Source of the Cash.
III: A Customer appears Nervous and asks Un-Usual Questions about Your Record-Keeping.
IV: A Customer tries to bribe a Teller.
Correct : D. I, II, III, and IV.
76. Insurance Regulatory and Development Authority of India (I.R.D.A.I.) has built, into its Regulations, a Consumer-Friendly Provision, called as, Free-Look Period. Describe the Same.
Correct : B. A Free-Look Period provides a Window, to the Insured, where, He or She can Return the Policy, if He or She Does Not Like it.
77. Name the Insurance Regulator in India.
Correct : A. Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
78. Identify the Factor, impacting the Risk, in Case of Insurance.
Correct : B. Moral Hazard
79. Many Proposals are Underwritten and Accepted for Insurance, without calling for a Medical Examination. This Form of Underwriting, is referred to as --.