1. Manish Suryawanshi
English IC33 Chapter 1 Mock Test
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
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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
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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
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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
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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
_________
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A Primary Burden of risk and Secondary Burden of
risk
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 Hubener
D George Soros
Question 12
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Which of the below is not an element of the life
insurance business?
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
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The Asset May Be
A Physical
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
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When an insurer enters into an Insurance Contract
with each person who seeks to participate in the
Scheme. Such a participant is known as
_____________
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
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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
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
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C Asset Insurance
D All of the above
Question 19
Which is the prime cause of financial distress in
financial planning?
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
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D Diversification
Question 21
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
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D Savings Bank Account
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
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D Only after one gets rich
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
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C Tax evasion
D Full advantage of tax breaks
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
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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
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English IC33 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
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Question 2
Life insurance is a product that is ___________
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
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Question 4
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.
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D Pure Endowment Plan
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 Convertibility
Question 7
Which insurance plan comes handy as an income
replacement plan?
A Pure Endowment Plan
B Term Insurance Plan
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C Health Plan
D Whole life plan
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 _______________
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A Dividend Plans
B Non-Participating Plans
C Non-Dividend Plans
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
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The Bonus which is paid in case of death of the
policyholder or maturity benefit is called as
___________
A Terminal Bonus
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
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Policies which have a provision for participating in
profits are called as _____________
A Participating Plans
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
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D Money back Plan
Question 15
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
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B Lower
C Equal
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.
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A Term
B Mortgage
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
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Question 20
An immensely valuable asset possessed 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
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D There is no provision in a term insurance plans to
convert it into a vehicle 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
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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.
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A Increase
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
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Which plan leaves the policyholder with the
satisfaction that he/she has not lost anything incase
he/she survives the term.
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
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Question 29
Mr Suresh Patil is the main income earner of the
family and wants to save in an insurance plan which
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
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D Decreasing term policy
Question 31
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.
