1.

Which One of the Following Statements, is In-Correct, with Regard to Numerical Rating Method
ofUnderwriting?
A. Under this Method, Underwriters assign the Positive Rating-Points for All Negative or Adverse
B. Under this Method, Underwriters assign the Positive Points for Any Positive or Favourable Factors.
C. Under this Method, the Total Number of Points, so assigned, will decide How Much Extra- Mortality-
Rating (E.M.R.), it has been given.
D. Under this Method, if the Extra-Mortality- Rating (E.M.R.) is Very High, Insurance may even be
declined.
Correct Option: B
2. If a Customer is aggrieved by an Order, made by a State Commission, then, Where can, He or She appeal,
against such Order?
A. District Forum
B. National Commission
C. Ombudsman
D. No Appeal can be made.
Correct Option: B
3. Which One of the Following, is, the First Indian Insurance Company?
A) The Oriental Life Assurance Company Limited
B) Triton Insurance Company Limited
C) Bombay Mutual Assurance Society Limited
D) National Insurance Company Limited
Correct Option: C
4. 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.
A) 1, Only.
B) II, Only.
C) I and II.
D) Neither I, Nor II.
Correct Option: C
5. Illustrate the Purpose of Grace-Period.
A) It is a Period, within which, Policy-Holder may cancel the Policy, if He or She Does Not Like the Same.
B) It grants the Policy- Holder, An Additional Time, to Pay His or Her Premium.
C) It provides a Period, within which, Policy- Holder must raise a Complaint, in Case of Any Grievance.
D) It provides a Period, after which, Policy- Holder must Pay His or Her Over-Due Premium.
Correct Option: B
6. Describe an Asset, in General. Choose the Most Appropriate Option.
A) An Asset is Some-Thing, that is Freely Available.
B) An Asset is Some-Thing, that yields a Value or a Return.
C) An Asset is Some-Thing, that yields No Return, and Only provides an Utility.
D) An Asset is Some-Thing, that cannot be owned.
Correct Option: B
7. 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?
A) Pneumonia
B) Leg-Injury, sustained as a Result of the Fall.
C) Negligence of Doctors.
D) Hospital-Treatment
Correct Option: B
8. Which One of the Following Claims, can be Payable, Only to the Assignee or Nominee?
A) Death-Claim
B) Maturity-Claim
C) Survival-Benefit
D) Surrender-Value
Correct Option: A
9. In Case of --, an Insurance Company expresses the Bonus, as a Percentage of Basic Benefit and Already
Attached Bonuses.
A) Reversionary Bonus
B) Compound Bonus
C) Terminal Bonus
D) Persistency Bonus
Correct Option: B
10. Who shall deal with the Disputes, between the Insured and the Insurer?
A) Consumer Group
B) Grievance Redressal Authorities ([Link])
C) Consumer Authority
D) Consumer Commission
Correct Option: B
11. Which One of the Following Statements, is In-Correct, with Regard to 'Surrender' of the Policy?
A) Surrender-Value, that is Payable to Insured, is, Usually, a Percentage of the Premiums-Paid.
B) A Policy can be surrendered, only if, it has acquired the Paid- Up Value.
C) Actual Surrender-Value, Paid to the Insured, is Always Less Than the Gross Surrender-Value.
D) Surrender-Value is Payable on Voluntary Termination of the Policy- Contract by the Insured.
Correct Option: C
12. Which One of the Following Consumer-Disputes Redressal-Agencies, entertains the Appeals from the District
Forum?
A) State Commission
B) National Commission
C) Insurance Regulatory and Development Authority of India (I.R.D.A)I)
D) No Appeal can be made.
Correct Option: A
13. Which One of the Following, is the Basic Insurance Legislation of the Country, that governs Insurance
Business in India?
A) Insurance Act, 1938.
B) Insurance Regulatory and Development Authority (1.R.D.A)) Act, 199
C) Deposit Insurance and Credit Guarantee Corporation Act, 1961.
D) Public Liability Insurance Act, 1991.
Correct Option: B
14. Which One of the Following Consumer-Disputes- Redressal-Agencies, have the Powers of a Civil Court?
A) District Forum
B) State Commission
C) National Commission
D) All of the Above.
Correct Option: D
15. Which One of the Following Statements, is In- Correct, with Regard to Judgement Method of
Underwriting?
A) Under this Method, Subjective Judgement is used.
B) This Method is especially used in Case of Complex Cases.
C) In this Method, the Company may seek Expert Opinion of Medical Doctor.
D) In this Method, the Underwriter assign Positive or Negative Rating- Points to the Adverse Factors.
Correct Option: D
16. Non-Traditional Life Assurance Products satisfy a Certain Motive of Many Investors. Select the Most
Appropriate Option.
A) Guaranteed Benefits
B) Fixed Returns
C) Wealth-Accumulation
D) Protection of Capital
Correct Option: C
17. 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
A) Survival-Benefit Payments
B) Surrender-Value
C) Rider-Benefit
D) Conditional Assignment
Correct Option: A
18. What is the Tax-Treatment offered under Key-Man Insurance?
A) Policy-Returns are Tax- Exempt.
B) Premiums are Treated as Business-Expense, and are Tax-Exempt.
C) Premiums are Taxable.
D) Policy-Returns are Heavily Taxable
Correct Option: B
19. Who among the Following Individuals, are considered as High-Risk by Insurance Companies? Choose the
Most Appropriate Option.
A) Individuals, who, regularly consume Paan Masala'.
B) Teetotaller
C) Individuals, who are Under the Influence of Sedatives and Other Stimulants.
D) Individuals, who consume Non- Vegetarian Food, Regularly.
Correct Option: C
20. How Would You Describe the Agreement between the Insurer and the Insured? Choose the Most Appropriate
Option.
A) Interim Agreement
B) Provisional Agreement
C) Constant Agreement
D) Contingent Agreement
Correct Option: D
21. Insurance Act, 1938, specifies the Rules for Nomination of Insurance-Policies under -.
A) Section 39
B) Section 41
C) Section 45
D) Section 64-VB
Correct Option: A
22. What Does, First Premium Receipt (F.P.R.), signify?
A) Free-Look Period has ended.
B) It is the Evidence, that the Policy-Contract has begun.
C) Policy cannot be cancelled, Now.
D) Policy has acquired a Certain Cash-Value.
Correct Option: B
23. Which One of the Following Consumer-Disputes' Redressal -Agencies , has Supervisory Jurisdiction over State
Commission?
A) District Forum
B) National Commission
C) Ombudsman
D) None of the Above.
Correct Option: B
24. Select a Scenario, that showcases the Principle of Uberrima Fides.
A) Timely Payment of Premium.
B) Disclosing All Material Information on the Insurance Proposal- Form.
C) Faking All Material Information on the Insurance Proposal- Form.
D) Disclosing All Irrelevant Information on the Insurance Proposal-Form.
Correct Option: B
25. If an Insurance Company accepts a Risk, with a Lien on Sum-Assured, then What Does this imply?
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.
B) Lien implies that, the Risk is Being Accepted, by the Company, for a Limited Period.
C) Lien implies that, the Insurance Company is Accepting the Risk, at Lower Rate of Premium, as
compared to the Tabular-Rate.
D) Lien implies that, the Insurance-Proposal is Postponed, till a Specified Period.
Correct Option: A
26. Which One of the Following Statements, is Correct?

A) The Prime Purpose of Insurance-Regulation, is, To Protect the Policy-Holders' Interests.

B) Regulations, made by Insurance Regulatory and Development Authority of India (I.R.D.A.I.), are, to
ensure that, Insurance- Companies should exist, Not as Financially Sound Organisations, but, as Socially
Responsible Organisations.
C) Insurance is an Absolutely Legal Contract, in Compliance with theProvisions of Indian Contract Act
and Other Laws of the Country.
D) Insurance Regulatory and Development Authority of India (I.R.D.A.I.) regulates the Companies from
their Registration onwards, and monitors All their Major Activities, like, Investments, Accounting, etc.
Correct Option: A
27. Which One of the Following Statements, is In-Correct, with Regard to Process of Filing a Complaint with a
Consumer-Court?
A) No One Else, Other Than the Complainant, Him-Self or Her-Self, can File a Complaint, with the State
Commission or National Commission.
B) There is No Fee, for Filing a Complaint with State Commission or National Commission.
C) The Complaint can be filed Personally, or can even be sent by Post.
D) No Advocate is Necessary for the Purpose of Filing a Complaint.
Correct Option: A
28. Which One of the Following, can be used, to describe Insurance, in General?
A) Providing the Subsidies to the Poor.
B) Betting of People's Losses.
C) Generating the Profits from Other's Losses.
D) Sharing of the Losses of a Few, by Many.
Correct Option: D
29. Which One of the Following Bodies, regulates the Insurance Companies in India?
A) Reserve Bank of India (R.B.I.) and Finance Ministry, Together.
B) Securities and Exchange Board of India (S.E.B.I.) and Association of Mutual Funds in India (A.M.F.I.),
Together.
C) Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D) Finance Ministry
Correct Option: C
30. 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.
A) Rupees 12 Lakhs.
B) Rupees 13 Lakhs.
C) Rupees 14 Lakhs.
D) Rupees 15 Lakhs.
Correct Option: A
31. Identify the Flip-Side of a Term Assurance.
A) It is the Cheapest Form of Assurance.
B) It can be converted in to a Whole-Life Assurance.
C) it does not provide Any Returns, on Maturity.
D) It comes Handy, as an Income-Replacement Plan.
Correct Option: C
32. Which One of the Following Statements, is Correct?
A) Insurance protects the Asset from Damage.
B) Insurance prevents the Losses.
C) Insurance reduces the Possibility of Loss.
D) Insurance indemnifies the Insured, in the Event of a Loss.
Correct Option: D
33. Suggest a Non-Traditional Life Assurance Product.
A) Term Assurance
B) Variable Life Assurance
C) Whole Life Assurance
D) Endowment Assurance
Correct Option: B
34. Illustrate the First Step of Financial Planning Process.
A) Develop the Financial Goals.
B) Implement a Financial Plan.
C) Analyse the Current Financial Situation.
D) Evaluate and Revise the Actions.
Correct Option: C
35. Which One of the Following, cannot be an Asset?
A) Air
B) Car
C) House
D) Goodwill
Correct Option: A
36. 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 --.
A) Next of Kin
B) Official Trustee of the State
C) Insurer
D) Insured
Correct Option: B
37. 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?
A) In Favour of the Insured.
B) In Favour of the Insurer
C) The Policy willbe declared as void, and the insurer will be asked to return the premium, with interest to
the insured.
D) The Policy willbe declared as void, and the insurer will be asked to return the premium, without any
interest to he insured.
Correct Option: A
38. Describe a Tangible Product.
A) A Tangible Product refers to the Physical Objects, that cannot be Perceived by Touch.
B) A Tangible Product refers to the Physical Objects, that can be Directly Perceived by Touch.
C) A Tangible Product is One, that has In-Finite Value.
D) A Tangible Product is One, that has No Value.
Correct Option: B
39. When would You choose, to go for Insurance?
A) After the Contingent Event has occurred.
B) When the Probability of Event-Occurrence is Low, But, Severity is High.
C) When the Probability of Event-Occurrence is Low, along with the Severity.
D) When you can finance the Losses of the Contingent-Event, on Your Own.
Correct Option: B
40. 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?
A) Participating Plan
B) Return of Premium(s) Plan
C) Unit-Linked Insurance Plan (U.L.I.P.)
 D) Money-Back Assurance Plan
Correct Option: C
41. Which of the Following, is an Objective of Redressal of Public Grievances Rules?
(1) Aim at Resolving the Complaints, Relating to the Settlement of Disputes.
(ii) Protection of Consumers' Interests.
(iii) Providing the Grievances to Consumers.
A) Only (1) is Correct.
B) Both: (i) and (ii), are Correct.
C) Only (i) is Correct.
D) Both: (1) and (ii), are Correct.
Correct Option: A
42. Categorise Mortgage-Redemption-Insurance, Under One of the Following Options.
A) Increasing, Term Assurance
B) Decreasing, Term Assurance
C) Variable Life Assurance
D) Universal Life Assurance
Correct Option: B
43. Which One of the Following Statements, is Correct, with Regard to 'Anti-Selection?
A) Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up selecting
Un Ethical Agents.
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.
C) Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up launching
the Insurance Products, that are Not Suitable for the Prospective Policy- Holders.
D) Anti-Selection is the Process, used by the Insurance Company, to ensure, it does not end- up selecting
the Wrong Investment-Products, for deploying the Premiums, collected from the Policy-Holders.
Correct Option: B
44. Creating a Current Cash-Flow Statement and Balance-Sheet, help, with Which Step of the Financial Planning
Process?
A) Development of Financial Goals.
B) Determining the Current Financial Position.
C) Evaluating the Alternatives.
D) Implementing a Financial Plan.
Correct Option: B
45. From the Following Options, Select the One, that is Not a Factor, in Determining the Life Assurance Premium.
A) Mortality
B) Rebate
C) Reserves
D) Management-Expenses
Correct Option: B
46. Which One of the Following Consumer-Disputes' Redressal-Agencies, has Supervisory Jurisdiction over State
Commission?
A) District Forum
B) National Commission
C) Ombudsman
D) None of the Above.
Correct Option: B
47. Select the Correct Statement.
A) The Policy Document has to be signed by a Competent Authority, but need not be compulsorily
stamped according to Indian Stamp Act.
B) The Policy Document has to be signed by a Competent Authority, and should be stamped according to
Indian Stamp Act.
C) The Policy Document need not be signed by a Competent Authority, but should be stamped according
to Indian Stamp Act.
D) The Policy Document neither needs to be signed by a Competent Authority, nor it needs to be
compulsorily stamped according to Indian Stamp Act.
Correct Option: B
48. What will be Looked At, in order to determine the Sum-Assured, under Key-Man Insurance?
A) Key-Man's Current Financial Statements.
B) Key-Man's Past Financial Statements.
C) Audited Financial Statements of the Business and Income- Tax (1.T.) Returns.
D) Income-Tax (1.T.) Returns of the Key-Man.
Correct Option: C
49. Which One of the Following, cannot be categorized under the Risks, faced by Ordinary People?
A) Living, Too Long.
B) Dying, Too Early.
C) Natural Wear and Tear.
D) Living with Disability.
Correct Option: C
50. Who is a Key-Man?
A) Person, who has Key to the Office-Lock.
B) Person, Critical to the Business-Operations.
C) Person, Who Left the Business.
D) Person, Willing to Join the Business.
Correct Option: B
51. 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 --.
A) Brokers
B) Corporate Agents
C) Third-Party Administrators (T.P.A.s)
D) Composite Insurance Agents
Correct Option: D
52. Non-Traditional Life Assurance Products satisfy a Certain Motive of Many Investors. Select the Most
Appropriate Option.
A) Guaranteed Benefits
B) Fixed Returns
C) Wealth-Accumulation
D) Protection of Capital
Correct Option: C
53. All of the Following Statements are False, with Respect to Unit-Linked Insurance Plans (U.L.I.P.s), Except:
A) Policy-Holder's Benefits or Returns depend on the Assumptions and Discretion of the Life Assurance
Company.
B) Investment-Risk is borne by the Insurer.
 C) Unit-Linked Insurance Plans (U.L.L.P.s) are Transperant with Regard to their Term- Component
Expenses- Component, and Savings-Component.
D) Unit-Linked Insurance Plans (U.L.I.P.s) are Bundled Products.
Correct Option: C
54. Redressal of Public Grievances Rules, 1998, came into Force on --.
A) 12th October, 1991
B) 11th November, 1998
C) 13th December, 1997
D) 14th September, 1983
Correct Option: B
55. Select the Correct Statement, with Regard to Grace-Period. Choose the Most Appropriate Option.
A) The Standard Length of the Grace-Period is 1 Month or 31 Days.
B) The Standard Length of the Grace-Period is One Quarter.
C) The Standard Length of the Grace-Period is One Week.
D) The Standard Length of the Grace-Period is One Fort-Night.
Correct Option: A
56. The Free-Look Period of a Policy lasts for --- Days.
A) 15
B) 30
C) 45
D) 60
Correct Option: A
57. 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?
A) Section 38
B) Section 39
C) Section 6
D) Section 45
Correct Option: C
58. 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.
A) Only (i) is Correct.
B) Both: (1) and (ii), are Correct.
C) Only (i) is Correct.
D) Both: (1) and (i), are Correct.
Correct Option: C
59. Which One of the Following Methods, is, a Traditional Method, that can Help Determine the Insurance, needed
by an Individual?
A) Human Property-Value
B) Life-Term Proposition
C) Human Life-Value
D) Future Life-Value
Correct Option: A
60. One of the Following Statements, is In-Correct?
A) Under Mutuality, the Funds of Various Individuals, are combined.
B) Mutuality is also known as Pooling.
C) Under Mutuality, We have the Funds flowing from One Source to Many.
D) Mutuality provides Protection against the Economic Loss, arising as a Result of One'ss Un- Timel
Death. This Loss is shouldered and addressed through having a Fund, that pools the Contributions of
Many, Who have entered into the Life Assurance Contracts.
Correct Option: C
61. Identify a Product, that can be categorised under Contingency-Products. Choose the Most Appropriate Option.
A) Bank Deposits
B) Shares
C) Bonds
D) Life Assurance
Correct Option: D
62. 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?
A) Compensation remains the Same.
B) Compensation will be Higher.
C) Compensation will be Lower.
D) There will be No Compensation.
Correct Option: B
63. Redressal of Public Grievances Rules, 1998 created the System of --.
A) Insurance Agency
B) Insurance-Surveyors
C) Insurance Ombudsman
D) Consumer Forum
Correct Option: C
64. Which One of the Following, can form the Basis for a Valid Consumer-Complaint?
A) Shop-Keeper, Not Giving Any Discounts on the Product.
B) Price, Charged by Shop- Keeper, is as per Maximum Retail Price (M.R.P.) on Package.
C) Shop-Keeper fails to provide a Certain Product.
D) The Goods, Bought by Consumer, suffers from One or More Defects.
Correct Option: D
65. Which One of the Following Bodies regulates the Banks in India?
A) Reserve Bank of India (R.B.I.)
B) Securities and Exchange Board of India (S.E.B.I.)
C) Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D) Association of Mutual Funds in India (A.M.F.I.)
Correct Option: A
66. 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.
A) Yes, Mr. Ramesh can buy Life Assurance on His Friend's Life.
B) No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because, He is Married.
C) No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because, there is No Insurable
Interest, Present.
 D) No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because of the Principle of Caveat
Ernptor.
Correct Option: C
67. An Applicant, seeking an Appointment as an Insurance Agent of an Insurer, shall submit an Application in
Form: --, to the --- of the Insurer.
A) I-A, Designated Official
B) A.I-A, Appellate Officer
C) I-B, Designated Official
D) 1-13, Appellate Officer
Correct Option: A
68. 18 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.
A) Risk-Avoidance
B) Risk-Retention
C) Risk-Transfer
D) Risk-Reduction and Risk- Control
Correct Option: A
69. 19 A --- is a Demand, that, the Insurer should Make Good the Promise, Specified in the Contract.
A) Claim
B) Repudiation
C) Fore-Closure
D) Grievance
Correct Option: A
70. Mr. Ramesh fudges His Company Balance-Sheet, Before Selling-Out the Company. Categorise His Action into
One of the Following Options.
A) Mistake
B) Corcion
C) Mi-Representation
D) Frud
Correct Option: D
71. Which One of the Following, is a Tool for Monitoring the Grievance-Redressal in the Insurance-Industry?
A) National Commission
B) Ombudsman
C) Integrated Grievance- Management-System (I.G.M.S.)
D) State Commission
Correct Option: C
72. 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.
A) I, Only.
B) II, Only.
C) I and Ii.
D) Neither I, Nor II.
Correct Option: C
73. Which One of the Following, forms the First Part of a Standard Insurance Policy-Document?
A) Policy-Schedule
B) Standard Provisions
 C) Specific-Policy Provisions
D) Claim-Procedure
Correct Option: A
74. Which One of the Following Bodies, can issue the License to work as Individual Agents, in India?
A) Finance Ministry
B) Government of India
C) Life Insurance Corporation (L.I.C.) of India and General Insurance Corporation (G.I.C.) of India,
Jointly.
D) Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
Correct Option: D