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1. English IC33 Chapter 1 MockTest
Question 1
Risk transfer through risk pooling is called
_________
A Savings
B Investments
C Insurance
D Risk mitigation
Question 2
Which of the below insurance scheme is run by an
insurer and not sponsored by the Government?
A Employees State Insurance Corporation
B Crop Insurance Scheme
C Jan Arogya

2. D All of the above
Question 3
Origins of modern insurance business can be traced
to _________
A Botta mry
B Lloyds
C Rhodes
D Malhotra Committee
Question 4
When was Lic formed?
A 1956
B 1999
C 1976
D 2000

3. Question 5
Which of the following statements is true?
A Insurance is a method of sharing the losses of a
'few' by 'many'
B Insurance is a method of transferring the risk of
an individual to another individual
C Insurance is a method of sharing the losses of a
'many' by a few
D Insurance is a method of transferring the gains of
a few to the many
Question 6
Which of the below is not an advantage of cash
value insurance contracts?
A Safe and secure investment
B Inculcates saving discipline

4. C Lower yields
D Income tax advantages
Question 7
How many life insurance companies are operating
in India currently ?
A 26
B 23
C 20
D 24
Question 8
Which among the following is a secondary burden
of risk?
A Business interruption cost
B Goods damaged cost

5. C Setting aside reserves as a provision for meeting
potential losses in the future
D Hospitalisation costs as a result of heart attack
Question 9
Which is the first life insurance company in the
world?
A Lloyds Coffee House
B Bombay Mutual Assurance Society Ltd
C Amicable Society for a perpetual Assurance
D National Insurance Company Limited
Question 10
Two types of risk burdens that one carries are
_________
A Primary Burden of risk and Secondry Burden of
risk

6. B Conditional Burden of Risk and Unconditional
Burden of Risk
C Positive Burden of Risk and Negative Burden of
Risk
D All the Above
Question 11
Who devised the concept of HLV?
A Dr. Martin Luther King
B Warren Buffet
C Prof hlubener
D George Soros
Question 12
Which of the below is not an element of the life
insurance business?

7. A Asset
B Risk
C Principle of mutuality
D Subsidy
Question 13
Nationionalisation of Insurance was on
_______________
A 1st September 1956
B 1st December 1956
C 1 st October 1956
D 10th Sept 1956
Question 14
The Asset May Be
A Physical

8. B Non Physical
C Personal
D All the Above
Question 15
The measures to reduce chances of occurrence of
risk are known as ________
A Risk retention
B Loss prevention
C Risk transfer
D Risk avoidance
Question 16
When an insurer enters into an Insurance Contract
with each person who seeks to participate in the
Scheme. Such a participant is known as
_____________

9. A Insurer
B Insured
C Both a and b
D None of the Above
Question 17
The first indian inurance company is ____________
A The Oriental life Insurance Co.ltd
B Bombay Mutual Assurance Society Ltd
C National Insurance Company Ltd
D Triton Insurance o. Ltd
Question 18
Out of 400 houses, each valued at Rs. 20,000, on an
average 4 houses get burnt every year resulting in a
combined loss of Rs. 80,000. What should be the

10. annual contribution of each house owner to make
good this loss?
A Rs.1 00/-
B Rs.200/-
C Rs80/-
D Rs.4001-
Question 19
How does diversification reduce risks in financial
markets?
A Collecting funds from multiple sources and
investing them in one place
B Investing funds across various asset classes
C Maintaining time difference between investments
D Investing in safe assets

11. Question 20
Collecting numerous individual contributions From
various People. These people have similar assets
which are exposed to similar risks. This process is
known as _____________
A Peril
B Pooling
C Risk
D Asset
Question 21
____________ Refers to protection against an
event that will happen
A Insurance
B Assurance
C Micro fnsurance
D Bancassurance

12. Question 22
The GIONA was Passed in
A 1999
B 1956
C 1972
D 1993
Question 23
Which of the below is an advantage of cash value
insurance contracts?
A Returns subject to corroding effect of inflation
B Low accumulation in earlier years
C Lower yields
D Secure investment

13. Question 24
Which is one of the major forms of Risk Transfer
A Assurance
B Fixed deposit
C Insurance
D Mutual Fund
Question 25
Which among the following is a method of risk
transfer?
A Bank ED
B Insurance
C Equity shares
D Real estate
Question 26

14. Which of the following statement is true?
A Insurance protects the asset
B Insurance prevents its loss
C Insurance reduces possibilities of loss
D Insurance pays when there is loss of asset
Question 27
Which of the below statement is true?
A Life insurance policies are contracts of indemnity
while general insurance policies are contracts of
assurance
B Life insurance policies are contracts of assurance
while general insurance policies are contracts of
indemnity
C In case of general insurance the risk event
protected against is certain

15. D The certainty of risk event in case of general
insurance increases with time
Question 28
By transferring risk to insurer, it becomes possible
____________
A To become careless about our assets
B To make money from insurance in the event of a
loss
C To ignore the potential risks facing our assets
D To enjoy peace of mind and plan one's business
more effectively
Question 29
Which of the below option best describes the
process of insurance?
A Sharing the losses of many by a few

16. B Sharing the losses of few by many
C One sharing the losses of few
D Sharing of losses through subsidy
Question 30
In insurance context 'risk retention' indicates a
situation where ______
A Possibility of loss or damage is not there
B Loss producing event has no value
C Property is covered by insurance
D One decides to bear the risk and its effects
Question 31
Which of the below cannot be categorised under
risks?
A Dying too young

17. B Dying too early
C Natural wear and tear
D Living with disability
Question 32
Which among the following cannot be termed as an
asset?
A Car
B Human Life
C Air
D House
Question 33
Why do insurers arrange for survey and inspection
of the property before acceptance of a risk?
A To assess the risk for rating purposes

18. B To find out how the insured purchased the
property
C To find out whether other insurers have also
inspected the property
D To find out whether neighbouring property also
can be insured
Question 34
Which of the below is the most appropriate
explanation for the fact that young people are
charged lesser life insurance premium as compared
to old people?
A Young people are mostly dependant
B Old people can afford to pay more
C Mortality is related to age
D Mortality is inversely related to age

19. Question 35
Which among the following is the regulator for the
insurance industry in India?
A Insurance Authority of India
B Insurance Regulatory and Development Authority
C Life Insurance Corporation of India
D General Insurance Corporation of India
Question 36
Which among the following scenarios warrants
insurance?
A The sale bread winner of a family might die
untimely
B A person may lose his wallet
C Stock prices may fall drastically
D A house may lose value due to natural wear and
tear

20. Question 37
Which among the following methods is a traditional
method that can help determine the insurance
needed by an individual?
A Separation
B Risk Avoidance
C Risk financing
D Risk Retension
Question 38
___________________ was the first legislation
enacted to regulate the conduct of insurance
companies in India
A The Insurance Act 1938
B The Life lnsurnce companies Act 1938
C Provident Fund Act 1912

21. D The Insurance Act 2000
Question 39
Which of the below mentioned insurance plans has
the least or no amount of savings element?
A Term insurance plan
B Endowment plan
C Whole life plan
D Money back plan
Question 40
What Should one consider before opting for
Insurance?
A Don't risk a lot for little
B Don't risk more than what you can afford to loose
C Consider the likely outcomes of the risk carefully

22. D All the Above
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English IC33 Chapter 2 MockTest
Question 1
Premium collected in the early years of the
insurance contract are held in trust by the insurance
company, this amount is known as
A Reserve
B Corpus
C Fund
D Safe deposit
Question 2
Which of the following are the components of level
premium
A Cash value element

23. B Term or protection component
C Both of the above
D Cash reserve ratio
Question 3
Which type of premium does not increase with age
but remains constant throughout the contract
period?
A Single premium
B Level Premium
C Flexible Premium
D Risk Premium
Question 4
Life Insurers are required to
maintain_____________as a condition for writing
the business

24. A Goodwill
B Marketshare
C Statutory reserve
D Credit notes
Question 5
Which Insurance plan provides only Death Benefit?
A Endowment plan
B Money Back Plan
C Term plan
D Child Plan
Question 6
Typical risks faced by people are
A Dying to early
B Living to long

25. C Living with disability
D All of the above
Question 7
Mutality or the pooling principle plays which
specific role in life insurance
A Provides protection against economic loss arising
as a result of one"s untimely death
B Ensures a certain part of the fund is diverted to
social security
C Provides guarantee of premiums paid to the
investors
D None of the above
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English IC33 Chapter 3 MockTest

26. Question 1
In Fire Insurance if the proposer discloses the
following information at the time of insurance
contract -1) Construction of building & age, 2)
nature of goods in building premises. Then as per
the insurance contract which information is he
disclosing______________
A Material Fact
B Insurable Interest
C Proximate Clause
D Contract of Adhesion
Question 2
_____________ relates to inaccurate statements,
which are made without any fraudulent intention.
A Misrepresentation
B Contribution

27. C Offer
D Representation
Question 3
Deliberate concealment of facts or
misrepresentation of facts falls under which
category ____________
A Fraud
B Consideration
C Capacity of the party
D Free Consent
Question 4
Mr. Dsouza works in a factory. Unfortunately the
factory catches fire and Mr Dsouza is critically
injured and after spending few days in the hospital
dies. What is the proximity cause in this situation.

28. A Death
B Sickness
C Fire in Factory
D None of the above
Question 5
Which among the following is an example of
coercion?
A Ramesh signs a contract without having
knowledge of the fine print
B Ramesh threatens to kill Mahesh if he does not
sign the contract
C Ramesh uses his professional standing to get
Mahesh to sign a contract
D Ramesh provides false information to get Mahesh
to sign a contract

29. Question 6
Predominant cause which sets into motion the
chain of events producing the loss is known as
___________
A Contract Adhesion
B Proximate Cause
C Leagality
D Utmost Good Faith
Question 7
The payment of money in an insurance contract is
known as___________
A Offer and acceptance
B Consideration
C Legality
D Capacity of the parties

30. Question 8
Which element of a valid contract deals with
premium?
A Offer and acceptance
B Consideration
C Free consent
D Capacity of parties to contract
Question 9
Which of the below is not a valid consideration for a
contract?
A Money
B Property
C Bribe
D Jewellery

31. Question 10
In which of the following does Insurable interest
exist
A Husband & Wife
B Employer & Employee
C Business partners
D All of the above
Question 11
Free Consent containt Mistake, Fraud,
Misrepresentation, __________ and ___________
A Undue Influence
B Correction
C Both option
D None of the above

32. Question 12
Which of the below party is not eligible to enter
into a life insurance contract?
A Business owner
B Minor
C House wife
D Government employee
Question 13
Which of the below is not correct with regards to
insurable interest?
A Father taking out insurance policy on his son
B Spouses taking out insurance on one another
C Friends taking out insurance on one another
D Employer taking out insurance on employees

33. Question 14
Which of the below action showcases the principle
of "Uberrima Fides"?
A Lying about known medical conditions on an
insurance proposal form
B Not revealing known material facts on an
insurance proposal form
C Disclosing known material facts on an insurance
proposal form
D Paying premium on time
Question 15
In a legal contract if pressure is applied on either of
the parties through criminal needs, it is known as
A Coercion
B Fraud

34. C Undue Influence
D Mistake
Question 16
______________ involves pressure applied through
criminal means.
A Fraud
B Undue influence
C Coercion
D Mistake
Question 17
When is it essential for insurable interest to be
present in case of life insurance?
A At the time of taking out insurance
B At the time of claim

35. C Insurable interest is not required in case of life
insurance
D Either at time of policy purchase or at the time of
claim
Question 18
Which among the following options cannot be
insured by Ramesh?
A Ramesh's house
B Ramesh's spouse
C Ramesh's friend
D Ramesh's parents
Question 19
In which of the following insurable interest will not
exist

36. A Mr Singh wants to take an insurance policy for his
child
B Anita wants to take insurance policy for her friend
C Anuj wants to take an insurance policy for her
wife
D All of the above
Question 20
Find out the proximate cause for death in the
following scenario? Ajay falls off a horse and breaks
his back. He lies there in a pool of water and
contracts pneumonia. He is admitted to the hospital
and dies because of pneumonia.
A Pneumonia
B Broken back
C Falling off a horse
D Surgen

37. Question 21
Which among the following is true regarding life
insurance contracts?
A They are verbal contracts not legally enforceable
B They are verbal which are legally enforceable
C They are contracts between two parties (insurer
and insured) as per requirements of Indian Contract
Act, 1872
D They are similar to wager contracts
Question 22
Caveat Emptor relates to
A Uberrima Fides
B Insurable Interest
C Free Consent

38. D Capacity of the parties
Question 23
Rajesh had taken life insurance policy for Sum
Assured of 50L for 20 yrs while returning home he
met with a road accident and died. His death claim
was not settled as he did not disclose his age
correctly. This is known as breach of ____________
A Consideration
B Insurable Interest
C Offer and acceptance
D Utmost Good Faith
Question 24
Anthony has taken a new car and immediately gets
his car insured too. He is paying a premium of
Rs.4000 premium for car insurance. Unfortunately

39. his car meets with an accident and most of the
parts are broken.So that Anthony receives the
insurance when should the insurable interest exist
A At time of Purchasing Ne.,n) Car
B AT time of Paying Premium
C At the time of claim
D None of the above
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English IC33 Chapter 4 MockTest
Question 1
MR. Shelly wants to purchase a new house. This is
which category of goal?
A Short Term Gaol
B Log term Goal
C Medium Term Goal
D Option 2& 3

40. Question 2
Which of the following is not a wealth accumulation
product ____________
A Real Estate
B Fixed Deposit
C Share
D High Yield Bond
Question 3
Which among the following would you recommend
in order to seek protection against unforeseen
events?
A Insurance
B Transactional products like bank. FD's
C Shares

41. D Debentures
Question 4
An individual with an aggressive risk profile is likely
to follow wealth __________ investment style
A Consolidation
B Gifting
C Accumulation
D Spending
Question 5
During which stage of life will an individual
appreciate past savings the most?
A Post retirement
B Earner
C Learner

42. D Just married
Question 6
Which among the following can be categorised
under contingency products?
A Bank deposits
B Life insurance
C Shares
D Bonds
Question 7
Phases of retirement planning are __________
A Distribution, Accumulation
B Conversation, Accumulation
C Conversation, Distribution
D Accumula.tion, Conservation, Distribution

43. Question 8
Which of the below can be categorised under
wealth accumulation products?
A Bank deposits
B Life insurance
C General insurance
D Shares
Question 9
____________ are unforeseen life events that may
call for a large commitment of funds
A U'LI P
B Wealth Acc.umulation
C Diversification
D Contingencies

44. Question 10
____________ is a rise in the general level of prices
of goods and services in an economy over a period
of time.
A Deflation
B Inflation
C Stagflation
D Hyperinflation
Question 11
Optimal method of converting principal (which we
may call the corpus )into annuity payments for
meeting income needs post retirement is known as
___________
A Distribution
B Accumulation

45. C Conversation
D Estate
Question 12
Which of the following is not a part of investment
parameters
A Diversification
B Time Horizon
C Retirement Planning
D Risk Tolerance
Question 13
____________ includes preparing of budget,
analysing of expenses and income flow and
predicting the future monthly income & expenses
A Estate Planning

46. B Investment Planning
C Retirement Planning
D Cash Planning
Question 14
In progressive risk profile Investment style is
_____________
A Accumulation
B Wealth Accumulation
C Estate Planning
D Consolidation
Question 15
_________________ planning includes current
need, future need, individual risk profile and
income to roadmap anticipated need

47. A Risk Tolerance
B Estate Planning
C Financial Planning
D Time Horizon
Question 16
If a customer"s investment style falls into spending
then in which risk profile will he fall?
A Conservative
B Secured
C Progressive
D Aggressive
Question 17
Which of the following are the elements of Financial
Planning ____________

48. A Investment & Risk Management
B Tax & Estate Planning
C Financial Cries need & Retirement Planning
D All of the above
Question 18
A complete insurance planning includes
_________________
A Life Insurance
B Health Insurance
C Asset Insurance
D All of the above
Question 19
Which is the prime cause of financial distress in
financial planning?

49. A Risk Tolerance
B Unplanned
C Time Horizon
D Planned
Question 20
In which of the following option can the investor
spread the investment and reduce the risk
A Time Horizon
B Marketability
C Risk Tolerance
D Diversification
Question 21

50. Mr Kumar wants to transfer his property in the
name of his Son Vijay, this is known as _________
planning
A Investment Planning
B Retirement Planning
C Estate Planning
D All of the above
Question 22
Which among the following is a wealth
accumulation product?
A Bank Loans
B Shares
C Term Insurance Policy
D Savings Bank Account

51. Question 23
Savings can be considered as a composite of two
decisions. Choose them from the list below.
A Risk retention and reduced consumption
B Gifting and accumulation
C Spending and accumulation
D Postponement of consumption and parting with
liquidity
Question 24
When is the best time to start financial planning?
A Post retirement
B As soon as one gets his first salary
C After marriage
D Only after one gets rich

52. Question 25
Which among the following can be categorised
under transactional products?
A Bank deposits
B Life insurance
C Shares
D Bonds
Question 26
Which among the following is not an objective of
tax planning?
A Maximum tax benefit
B Reduced tax burden as a result of prudent
investments
C Tax evasion
D Full advantage of tax breaks

53. Question 27
Which of the below is not a strategy to maximise
discretionary income?
A Debt restructuring
B Loan transfer
C Investment restructuring
D Insurance purchase
Question 28
What is the relation between investment horizon
and returns?
A Both are not related at all
B Greater the investment horizon the larger the
returns
C Greater the investment horizon the smaller the
returns

54. D Greater the investment horizon more tax on the
returns
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English IC33 Chapter 5 MockTest
Question 1
Which of the below statement is correct with
regards to endowment assurance plan?
A It has a death benefit component only
B It has a survival benefit component only
C It has both a death benefit as well as a survival
component
D It is similar to a term plan
Question 2
Life insurance is a product that is ___________

55. A Tangible
B Expensive
C Intangible
D Productive
Question 3
What is the primary purpose of a life insurance
product?
A Tax rebates
B Safe investment avenue
C Protection against the loss of economic value of
an individual's productive abilities
D Wealth accumulation
Question 4

56. Mrs. Shailaja wishes to buy a product which will
provide her both a death and a survival benefit
component. Which plan will you suggest for her?
A Endowment Assurance Plan
B Term Assurance Plan
C Money Back Plan
D Annuity Plan
Question 5
Mr. Ankit Joshi is looking out for a plan which will
provide him a high insurance coverage in low
budget. Which plan would you suggest for him?
A Endowment Plan
B ULIP
C Term Insurance Plan.
D Pure Endowment Plan

57. Question 6
Which feature of term insurance allows a
policyholder to change or convert a term insurance
policy into a permanent plan without providing
fresh evidence of insurablity?
A Changeable Term Insurance Policy
B Decreasing Term Assurance Policy
C Increasing Term Assurance Policy
D Convertability
Question 7
Which insurance plan comes handy as an income
replacement plan?
A Pure Endowment Plan
B Term Insurance Plan
C Health Plan
D Whole life plan

58. Question 8
___________ is a plan of decreasing term insurance
designed to provide a death amount that
corresponds to the decreasing amount owned on a
mortgage loan.
A Loan Redemption Plan
B Cash Redemption Plan
C Mortgage Redemption Plan
D Credit Redemption Plan
Question 9
Policies which do not participate in the profits are
called as _______________
A Dividend Plans
B Non-Participating Plans
C Non-Dividend Plans

59. D Non-Investment Plans
Question 10
_____________ is a plan in which there is no fixed
term of cover but the insurer offers to pay the
agreed upon death benefit when the insured dies,
no matter whenever the death might occur.
A Term Assurance Plan
B Pure Endowment Plan
C Whole Life Insurance
D Endowment Assurance
Question 11
The Bonus which is paid in case of death of the
policyholder or maturity benefit is called as
___________
A Terminal Bonus

60. B Guaranteed Bonus
C Reversionary Bonus
D Profit gain Bonus
Question 12
Which among the following is an intangible
product?
A Car
B House
C Life insurance
D Soap
Question 13
Policies which have a provision for participating in
profits are called as _____________
A Participating Plans

61. B Profit Making Plans
C Dividend Plans
D Investment Plans
Question 14
Mrs. Anita has opted for an life insurance plan with
a tenure of 10 yrs. According to the plan she will
have to pay premiums regularly and will get an
insurance coverage of Rs 10 lass for the entire
tenure. However the plan doesn't provide any
maturity benefit. Which plan has Anita opted for?
A Term Assurance Plan
B Endowment Plan
C Annuity Plan
D Money back Plan
Question 15

62. Which of the below statement is incorrect with
regards to decreasing term assurance?
A Death benefit amount decreases with the term of
coverage
B Premium amount decreases with the term of
coverage
C Premium remains level throughout the term
D Mortgage redemption plans are an example of
decreasing term assurance plans
Question 16
The premium paid for whole life insurance is
____________ than the premium paid for term
assurance.
A Higher
B Lower
C Equal

63. D Substantially higher
Question 17
Products that can only be perceived indirectly are
called _____________
A Intangible
B Consuming
C Expensive
D Tangible
Question 18
______________ life insurance pays off a
policyholders mortgage in the event of the person"s
death.
A Term
B Mortgage

64. C Whole
D Endowment
Question 19
Who among the following is best advised to
purchase a term plan?
A An indhidual who needs money at the end of
insurance term
B An individual who needs insurance and has a high
budget
C An individual who needs insurance but has a low
budget
D An individual who needs an insurance product
that gives high returns
Question 20

65. An immensely valuable asset possesed by an human
being which is also the source of his productive
earning capacity is called ____________
A Human Income
B Human Life Value
C Human Capital
D Human Asset
Question 21
Which of the below option is correct with regards to
a term insurance plan?
A Term insurance plans came with life-long
renewability option
B All term insurance plans come with a built-in
disability rider
C Term insurance can be bought as a stand-alone
policy as well as a rider with another policy

66. D There is no provision in a term insurance plans to
convert it into a .,.vhcile life insurance plan
Question 22
Which of the below is an example of an endowment
assurance plan?
A Mortgage Redemption Plan
B Credit Life Insurance Plan
C Money Back Plan
D Whole Life Plan
Question 23
Physical objects that can be directly perceived by
touch are known as ___________ objects
A Intangible
B Physical

67. C Tangible
D Consuming
Question 24
According to the new guidelines for regular
premium policies, the cover will be __________
times the annualised premium paid for those below
45 and times for others.
A 10 and 5
B 10 and 7
C 7 and 10
D 5 and 10
Question 25
In decreasing-term insurance, the premiums paid
___________ over time.
A Increase

68. B Decrease
C Remain constant
D Are returned
Question 26
Which type of term insurance plan is designed to
pay the balance due on a loan?
A Increasing Life Insurance
B Mortgage Life Insurance
C Credit Life Insurance
D Convertible Life Insurance
Question 27
Which plan leaves the policyholder with the
satisfaction that he/she has not lost anything incase
he/she survives the term.

69. A Term insurance with return of premiums.
B Cash return insurance plan.
C Pure Endowment Plan.
D Pure Endowment with return of premiums.
Question 28
An endowment assurance is an combination of
_________ _________
A Health Plan + Term Assurance Plan
B Term assurance plan + Pure endowment plan
C Pure endowment + Pension plan
D Term assurance + Pension plan
Question 29
Mr Suresh Patil is the main income earner of the
family and wants to save in an insurance plan which

70. gives him life cover till he is alive Which plan will
you suggest for his needs?
A Decreasing Term Assurance
B Pure Endowment Plan
C Pension Plan
D Whole life Insurance Plan
Question 30
Using the conversion option present in a term policy
you can convert the same to ___________
A Whole life policy
B Mortgage policy
C Bank FD
D Decreasing term policy
Question 31

71. The _________ the premium paid by you towards
your life insurance, the __________ will be the
compensation paid to the beneficiary in the event
of your death.
A Higher: Higher
B Lower, Higher
C Higher: Lower
D Faster: Slower
Question 32
_______________ is a plan with the provision for
return of a part of the sum assured in periodic
installments during the term and balanced of sum
assured at the end of the term.
A Pure Endowment Plan
B Money back plan
C Whole Life Insurance

72. D Cash back. plan