1. IC 33 Paper 3
Prepared by Manish Suryawanshi
Mob. No. 07276112117
1Prpared by Manish Suryawanshi

2. Question 1
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
D Debentures
Question 2
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
C Conversation
D Estate
2Prpared by Manish Suryawanshi

3. Question 3
Cardio vascular disease refers to the disease which affect
A Heart and circulatory system(Blood)
B Lungs and respiratory system
C Kidney and excretory system
D Stomach, intestine and digestive system
Question 4
Which among the below statements is true? Statement I:
Every pension is an annuity Statement II: Every annuity is a
pension
A I and II are true
B I and II are false
C I is true and II is false
D I is false and IF is true
3Prpared by Manish Suryawanshi

4. Question 5
In which of the following insurable interest will not exist
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 6
In progressive risk profile Investment style is _____________
A Accumulation
B Wealth Accumulation
C Estate Planning
D Consolidation
4Prpared by Manish Suryawanshi

5. Question 7
What are retained earnings
A Premium
B Surplus
C Bonus
D Assets
Question 8
Health Insurance policies can be obtained by ____________
A Group
B Individual
C Family
D All of the above
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6. Question 9
Mahesh has taken as decreasing term life insurance policy to repay the
balance of his mortgage loan if he dies before its full repayment... what
policy has he opted for
A Term Insurance
B Life Insurance
C Term & MRI
D MRI
Question 10
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 6Prpared by Manish Suryawanshi

7. Question 11
The sum assured under keyman insurance policy is generally
linked to which of the following?
A key man income
B Business profitability
C Business history
D Inflation index
Question 12
A Life Assured is missing for the last 7 years, on which basis
will the death claim be settled?
A court Decree
B Declaration by Nominee
C Declaration by Agent
D Declaration by Employer
7Prpared by Manish Suryawanshi

8. Question 13
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
Question 14
Guiding principles for determining amount of loading are
A Adequacy
B Equity
C Competitiveness
D All of the above
8Prpared by Manish Suryawanshi

9. Question 15
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 16
Which of the below statements is correct?
A The prime purpose of insurance regulation is to protect the insurance
companies
B The prime purpose of insurance regulation is to protect the policyholder
C The prime purpose of insurance regulation is to protect the insurance
intermediaries
D The prime purpose of insurance regulation is to protect the Government
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10. Question 17
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 18
Money laundering is the process of bringing _____________ money into an
economy by hiding its ____________ origin so that it appears to be legally
acquired.
A Illegal: illegal
B Legal, legal
C Illegal; legal
D Legal, illegal
10Prpared by Manish Suryawanshi

11. Question 19
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..100/-
B Rs..200/-
C Rs80/-
D Rs.4001-
Question 20
Which among the following is not an element of active
listening?
A Paying good attention
B Being extremely judgmental
C Empathetic listening
D Responding appropriately
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12. Question 21
The awards by the Ombudsman are governed by the following rules
A Award should not be more than RS 20 Iakhs
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 15 days of the receipt of acceptance
D All of the above
Question 22
Judicial channel for grievance established by the central
government Is
A State Forum
B District Forum
C National forum
D Lifeline
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13. Question 23
Under Sec 47 of insurance Act 1938 when claim is ready for payment but
cannot be paid due lack of proper identification of the payee, Interest
payable would be?
A 2% over Bank Rate
B Bank Rate
C No Interest payable
D 4% over Bank Rate
Question 24
How much Sum assured is permissible in relation to the
income
A 5to 10 times of the annual income
B 10 to 12 times of the annual income
C 12 to 15 times of the annual income
D 15 to 20 times of the annual income 13Prpared by Manish Suryawanshi

14. 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
Question 26
Which of the following is not an underwriting decision?
A Risk acceptance at standard rates
B Declinature of risk
C Postponement of risk
D Claim rejection
14Prpared by Manish Suryawanshi

15. Question 27
Who are the beneficiaries in MWP Act?
A Wife & children
B Only Policy holder
C Parents
D Friends
Question 28
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
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16. Question 29
Mr. Ajay is persuading prospect to buy insurance policy to achieve his
sales target, this behaviour Is
A Ethical
B Professional
C Unethical
D Moral
Question 30
A policy holder need to have a ____________ to avail the
benefit of cashless facility under Health insurance policy.
A Employees FD card
B Identification card
C Policy document
D Smart Card
16Prpared by Manish Suryawanshi

17. Question 31
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
Question 32
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
17Prpared by Manish Suryawanshi

18. Question 33
Santosh has applied for a term insurance policy. His anticipated mortality is
significantly lower than standard lives and hence could be charged a lower
premium. Under risk classification, Santosh will be classified under
__________________
A Standard lives
B Preferred risks
C Substandard lives
D Declined lives
Question 34
In decreasing-term insurance, the premiums paid over
_________________ time.
A Increase
B Decrease
C Remain constant
D Are returned 18Prpared by Manish Suryawanshi

19. Question 35
Moral hazard by health insurance companies can result in
_________________
A Community rating
B Adverse selection
C Abuse of health insurance
D Risk pooling
Question 36
Based on classification of claims (early or non-early), pick the odd one out?
A Ramya dies after 6 months of buying a term insurance plan
B Manoj dies after one and half years of buying a term insurance plan
C David dies after two and half years of buying a term insurance plan
D Pravin dies after five and half years of buying a term insurance plan
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20. Question 37
When was Variable Life Insurance first introduced in United States?
A 1970
B 1965
C 1977
D 1980
Question 38
Prospecting in an insurance sale is __________________
A Gathering the names of people who may be interested in
insurance
B Preparing a list of all the persons in the city
C Enlisting all the policyholders of the branch office
D Preparing list of all the agents in the neighbourhood
20Prpared by Manish Suryawanshi

21. Question 39
Which of the below option is correct with regards to a term insurance plan?
A Term insurance plans come 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
D There is no provision in a term insurance plans to convert it into a whole life
insurance plan
Question 40
Which among the following can be categorised under transactional
products?
A Bank deposits
B Life insurance
C Shares
D Bonds
21Prpared by Manish Suryawanshi

22. Question 41
What are some non verbal gestures that indicate defensiveness and non
receptivity
A Smiling face
B Arms are crossed in front of you
C Purposeful gestures
D Shoulders held back
Question 42
Phases of retirement planning are ________________
A Distribution, Accumulation
B Conversation. Accumulation
C Conversation, Distribution
D Accumulation, Conservation, Distribution
22Prpared by Manish Suryawanshi

23. Question 43
During the _______________ period, if the policyholder has
bought a policy and does not want it, he I she can return it and
get a refund.
A Free evaluation
B Free look
C Cancellation
D Free trial
Question 44
What benefits are given by the government to promote health insurance?
A Cash Benefits
B Premium Discontinuance
C No claims Bonus
D Tax Benefits
23Prpared by Manish Suryawanshi

24. Question 45
From the choices mentioned below, select the one that
cannot be categorised as an annuity.
A Rs. 2000 received today, Rs. 2000 received next year and
Rs. 2000 received in 2 years
B Electricity Bill
C Car payments
D Mortgage payments
Question 46
Origins of modern insurance business can be traced to ______________
A Bottomry
B Lloyds
C Rhodes
D Malhotra Committee
24Prpared by Manish Suryawanshi

25. Question 47
Praveen died in a car accident. The beneficiary submits documents for death
claim. Which of the below document is an additional document required to be
submitted in case of accidental death as compared to natural death.
A Certificate of burial or cremation
B Treating physician's certificate
C Employer's certificate
D Inquest Report
Question 48
Life insurance companies may offer rebate to the buyer on the
premium that is payable on the basis of ________________
A Sum assured chosen by the buyer
B Type of policy chosen by the buyer
C Term of the Wan chosen by the buyer
D Mode of payment (cash, cheque, card) chosen by the buyer
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26. Question 49
Which insurance is used for business protection purpose
A Children education plan
B Keyman Insurance policy
C Re-insuance
D Term insurance
Question 50
Mr Ajay is interested in buying a health insurance plan. However he wants
to include his wife as well as his daughter in the same plan. Which feature
would be applicable to him?
A Individual
B Family Floater
C Senior Citizen
D Group. Health Insurance Plan
Once you are finished, click the button below. Any items you have not
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