1. IC -33 Test papers
Paper 2 (2014-New Syllabus )
1
Prepared by Manish Suryawanshi, mob. no.
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2. Question 1
______________ 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 2
What benefits are given by
the government to
promote health insurance?
A Cash Benefits
B Premium Discontinuance
C No claims Bonus
D Tax Benefits
Question 3
Which of the below is not a strategy to maximise discretionary income?
A Debt restructuring
B Loan transfer
C Investment restructuring
D Insurance purchase 2
Prepared by Manish Suryawanshi, mob. no.
07276112117

3. Question 4
Mahesh has bought a life insurance policy with a critical illness rider. He has made
absolute assignment of the policy in favour of Karan. Mahesh suffers a heart attack and
there is a claim of Rs. 50,000 under the critical illness rider. To whom will the payment be
made in this case?
A Mahesh
B Karan
C The payment will be shared equally by Mahesh and Karan
D Neither of the two because Mahesh has suffered the heart attack but the policy is
assigned in favour of Karan.
Question 5
Typical risks faced by people are
A Dying to early
B Living to long
C Living with disability
D All of the above
3
Prepared by Manish Suryawanshi, mob. no.
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4. Question 6
What does a policy lapse mean?
A Policyholder completes premium payment for a policy
B Policyholder discontinues premium payment for a policy
C Policy attains maturity
D Policy is withdrawn from the market
Question 7
An individual with an aggressive risk profile is likely to follow
wealth _____________ investment style.
A Consolidation
B Gifting
C Accumulation
D Spending
4
Prepared by Manish Suryawanshi, mob. no.
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5. Question 8
Given below are some events that will trigger survival claims. Identify which of
the below statement is incorrect?
A Claim paid on maturity of a term insurance policy
B An installment payable upon reaching the milestone under a money-back
policy
C Claim paid for critical illnesses covered under the policy as a rider benefit
D Surrender value paid on surrender of an endowment policy by the
policyholder
Question 9
Types of pension scheme What are the various types of annuity
schemes
A Public Pension
B Occupational Pension
C Personal Pensions
D All of the above 5
Prepared by Manish Suryawanshi, mob. no.
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6. Question 10
Which of the below will be the most appropriate option for a customer to lodge
an insurance policy related complaint?
A Police
B Supreme Court
C Insurance Ombudsman
D District Court
Question 11
____________ is the feature in which an health insurance policy holder can
transfer his policy with gained credit and time bound exclusion from one insurer
to another.
A Network Provider
B Portablity
C TPA
D Mediclaim
6
Prepared by Manish Suryawanshi, mob. no.
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7. Question 12
Insurance policy is contract between ____________A Company &
Partner
B Agency & Company
C Insured & Policy holder
D Insurer & Policy holder
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
7
Prepared by Manish Suryawanshi, mob. no.
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8. Question 14
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
Question 15
In health insurance policy premium will be based on
A Occupation
B Income
C Age
D Height
8
Prepared by Manish Suryawanshi, mob. no.
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9. Question 16
Any person who has completed 60 or more years of age as on the
date of commencement or renewal in health insurance policy is
called _________________
A Family floater
B Group Health Insurance
C Senior Citizen
D Mediclaim
Question 17
A complete insurance planning includes _______________
A Life Insurance
B Health insurance
C Asset Insurance
D All of the above
9
Prepared by Manish Suryawanshi, mob. no.
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10. Question 18
How many life insurance companies are operating in India currently ?
A 26
B 23
C 20
D 24
Question 19
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 his car meets with an accident and most of the parts
are broken.So that Anthon receives the insurance when should the
insurable interest exist
A At time of Purchasing New Car
B AT time of Paying Premium
C At the time of claim
D None of the above 10
Prepared by Manish Suryawanshi, mob. no.
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11. Question 20
Which of the following statement is correct in relation to claim?
A A claim is the demand of performance by the insurer
B A claim arises only when insured event takes place
C A claim is valid if insured has paid all the premiums
D All of the above
Question 21
Mortgage Redemption Insurance facilitate ____________
A Higher Mortgage Rate
B Cheaper Mortgage Rate
C Higher Interest Rate
D Higher Profits
11
Prepared by Manish Suryawanshi, mob. no.
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12. Question 22
Which among the following methods is a traditional method
that can help determine the insurance needed by an individual?
A Human Economic Value
B Life Term Proposition
C Human Life Value
D Future Life Value
Question 23
_______________ life insurance pays off a policyholder's
mortgage in the event of the person's death.
A Term
B Mortgage
C Whole
D Endowment
12
Prepared by Manish Suryawanshi, mob. no.
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13. 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
Question 25
During which stage of life will an individual appreciate past
savings the most?
A Post retirement
B Earner
C Learner
D Just married
13
Prepared by Manish Suryawanshi, mob. no.
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14. Question 26
Keyman insurance indemnify ______________ incurred but
compensates with fixed monetary sum as specified on the
insurance policy
A Actual Losses
B Actual Expenses
C Early Premiums
D Fixed Monetary sum is specify in the policy
Question 27
What are retained earnings
A Premium
B Surplus
C Bonus
D Assets 14
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15. Question 28
If an agent wants to earn more commission
A He will meet fixed number of existing customers
B He will have to meet more number of prospects
C Do nothing as he getting renewal commission
D Persuade to surrender exiting policy and buy new one - to existing customer
Question 29
What is the procedure in which and indvidual can get the complicated surgical
procedures without getting admitted?
A In patient
B Out patient
C Day care
D Normal Admission
15
Prepared by Manish Suryawanshi, mob. no.
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16. Question 30
Hurt not other with that which pains yourself is golden rule of
which religion
A Jainsim
B Buddhisim
C Islam
D Christianity
Question 31
Mr X has lost his policy document, company will issue him new
policy document with?
A Minor change in policy terms and condition
B Major change in policy terms and condition
C change in policy terms and condition
D No change in policy terms and condition
16
Prepared by Manish Suryawanshi, mob. no.
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17. Question 32
Which of the below insurance proposal is not likely to qualify under non-
medical underwriting?
A Savita, aged 26 years, working in an IT company as a software engineer
B Mahesh, aged 50 years, working in a coal mine
C Satish, aged 28 years, working in a bank and has applied for an insurance
cover of Rs. 1 crore
D Pravin, aged 30 years, working in a departmental store and has applied for
an endowment insurance plan for a tenure of 10 years
Question 33
Deliberate concealment of facts or misrepresentation of facts
falls under which category ___________
A Fraud
B Consideration
C Capacity of the party
D Free Consent 17
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18. Question 34
Mr Amit is nearing retirement, he has a lumpsum ammount to invest, he
requires regular cash flow to help cover basic living expenses, Which type of
annuity plan Amit should purchase
A Immediate Annuity
B Deferred Annuity
C Money back annuity
D Assured Annuity
Question 35
_______________ includes preparing of budget, analysing of
expenses and income flow and predicting the future monthly
income & expenses
A Estate Planning
B Investment Planning
C Retirement Planning
D Cash Planning 18
Prepared by Manish Suryawanshi, mob. no.
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19. Question 36
Which of the following statement is correct
A Higher the mortality rate in the mortality table; higher the
premiums would be
B Higher the interest rate assumed, lower the premium
C Both of the above
D Premium would remain unaffected
Question 37
The Cash value component in traditional products is
A Pre-planned
B Weil defined
C Not well defined
D Not pre-planned
19
Prepared by Manish Suryawanshi, mob. no.
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20. Question 38
As per IRDA norms, an insurance company can provide which of the below
nontraditional savings life insurance products are permitted in India?
Choice I: Unit Linked Insurance Plans Choice II: Variable Insurance Plans
A I only
B II only
C I and II both
D Neither I nor II
Question 39
Interest paid by the insurer for delay in claim settlement
would be
A 0.02
B 2% above the bank rate
C No Interest payable
D 0.06
20
Prepared by Manish Suryawanshi, mob. no.
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21. Question 40
For seeking license to act as a composite agent one has to complete from an
IRDA approved institution atleast
A 100 hrs practical training
B 75 hrs practical training
C 60 hrs practical training
D 65 hrs practical training
Question 41
In the keyman insurance the premium paid by the company is treated as
______________
A Profit of the business
B Business Expense
C Loan of the company
D Sum Assured of the business
21
Prepared by Manish Suryawanshi, mob. no.
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22. Question 42
Rating factors in underwriting does not depend on
A Financial situation
B Family History
C No. of members in the family
D Personal history of health and habits
Question 43
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
D Greater the investment horizon more tax on the returns
22
Prepared by Manish Suryawanshi, mob. no.
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23. Question 44
Active listening involves
A Paying attention
B Confidence
C Trust
D Smiling face
Question 45
Which of the following condition will affect a person's
insurability negatively?
A Daily jogs
B Banned substance abuse
C Lazy nature
D Procrastination
23
Prepared by Manish Suryawanshi, mob. no.
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24. Question 46
Sheena is suffering from acute diabetes. She has applied for an insurance
plan. In this case the underwriter is most likely to use ______________ for
underwriting. Choose the most appropriate option.
A Judgment method
B Numerical method
C Any of the above method since an illness like diabetes does not play a
major role in the underwriting process
D Neither of the above method as diabetes Gases are rejected outright
Question 47
Employer may take out a key persons insurance policy on the ____________
and ______________ of any employee
A Life of all employee
B Employer cannot insure a keyman
C Only health of the employees
D Life or Health of Any employees
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Prepared by Manish Suryawanshi, mob. no.
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25. Question 48
In customer relationship the first impression is created:
A By being confident
B By being on time
C By showing interest
D By being on time: showing interest and being confident
Question 49
MR. Shetty 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
25
Prepared by Manish Suryawanshi, mob. no.
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26. Question 50
The awards by the Ombudsman are governed by the
following rules
A Award should not be more than RS 20 lakhs
B Award should be made within a period of 3 months
from the date of receipt of the complaint
C Insurer shall comply with the award and send a
written intimation to the ombudsman within 1.5 days
of the receipt of acceptance
D All of the above
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Prepared by Manish Suryawanshi, mob. no.
07276112117