This document contains 50 multiple choice questions related to insurance. The questions cover various insurance concepts such as the different types of insurance policies, claim processes, insurance terminology, regulations, and more. The document was prepared by Manish Suryawanshi and contains his contact information at the top.

1. IC 33 Paper 4
Prepared by Manish Suryawanshi
Mob. No. 07276112117
1Prepared by Manish Suryawanshi

2. Question 1
A complete insurance planning includes ______________
A Life Insurance
B Health Insurance
C Asset Insurance
D All of the above
Question 2
_________________is an insured who undergoes treatment
after getting admitted in a hospital.
A inpatient
B Outpatient
C Day patient
D House patient
2Prepared by Manish Suryawanshi

3. Question 3
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 [Mess like diabetes does not play a major
role in the underwriting process
D Neither of the above method as diabetes cases are rejected outright
Question 4
Some very basic ethical principles to be followed by people
working in insurance industry
A Keep your words
B Be true to your self
C Avoid harm and be fair
D All the above 3Prepared by Manish Suryawanshi

4. Question 5
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 6
The premium paid for whole life insurance is ____________ than
the premium paid for term assurance.
A Higher
B Lower
C Equal
D Substantially higher
4Prepared by Manish Suryawanshi

5. Question 7
Which among the following is not a pre-requisite for launching a complaint
with the Ombudsman?
A The complaint must be by an individual on a 'Personal Lines' insurance
B The complaint must be lodged within 1 year of the insurer rejecting the
complaint
C Complainant has to approach a consumer forum prior to the Ombudsman
D The total relief sought must be within an amount of Rs_ 20 lakhs.
Question 8
Which of the below can be categorised under wealth
accumulation products?
A Bank deposits
B Life insurance
C General insurance
D Shares
5Prepared by Manish Suryawanshi

6. Question 9
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 10
Given below is a list of policies. Identify under which type of
policy, the claim payment is made in the form of periodic
payments?
A Money-back policy
B Unit linked insurance policy
C Return of premium policy
D Term insurance policy 6Prepared by Manish Suryawanshi

7. Question 11
Guiding principles for determining amount of loading are
A Adequacy
B Equity
C Competitiveness
D All of the above
Question 12
______________ relates to inaccurate statements, which are
made without any fraudulent intention.
A Misrepresentation
B Contribution
C Offer
D Representation
7Prepared by Manish Suryawanshi

8. Question 13
Raghu’s policy was rejected by underwriter as he is working as a
body guard of a businessman with suspected criminal links. Under
which hazard his policy was rejected
A Occupational hazard due to source of accident
B Occupational hazard due to source of health hazard
C Occupational hazard due to source of financial hazard
D Occupational hazard due to source of moral hazard
Question 14
Phases of retirement planning are ______________
A Distribution, Accumulation
B Conversation, Accumulation
C Conversation, Distribution
D Accumulation, Conservation, Distribution 8Prepared by Manish Suryawanshi

9. Question 15
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
Question 16
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
9Prepared by Manish Suryawanshi

10. Question 17
___________ refers to a hospital/health care provider enlisted by an insurer
to provide medical services to an insured on payment by a cashless facility
A Day care centre
B Network provider
C Third Party Administrator
D Domiciliary
Question 18
Amount of annuity payable is inversely related to which of the following: 1.
Principal sum of money 2. Investment period 3. Rate of return 4. Duration of
annuity payments
A 1 only
B 2 only
C 3 only
D 4 only
10Prepared by Manish Suryawanshi

11. Question 19
Which of the following is not a standard age proof?
A Passport
B School leaving certificate
C Horoscope
D Birth certificate
Question 20
Select the option that best describes a policy document.
A It is evidence of the insurance contract
B It is evidence of the interest expressed by the insured in buying an insurance
policy from the company
C It is evidence of the policy (procedures) followed by an insurance company
when dealing with channel partners like banks, brokers and other entities
D It is an acknowledgement slip issued by the insurance company on payment
of the first premium
11Prepared by Manish Suryawanshi

12. Question 21
An individual with an aggressive risk profile is likely to follow wealth
______________ investment style.
A Consolidation
B Gifting
C Accumulation
D Spending
Question 22
Mr. Rahul has recently undergone a surgery in a non-network hospital. How can
he settle his claim?
A Cashless
B TPA
C Reimbursement
D Direct Payment
12Prepared by Manish Suryawanshi

13. Question 23
Mr XYZ is director of a company, Company has taken Keyman insurance for
him, If something happens to Mr XYZ then benefit will paid to
________________
A his Nominee
B His Legal Heir
C Company
D None of the above
Question 24
Which among the following is a limitation of traditional life insurance
products?
A Yields on these policies is high
B Clear and visible method of arriving at surrender value
C Well defined cash and savings value component
D Rate of return is not easy to ascertain
13Prepared by Manish Suryawanshi

14. Question 25
Which of the below is not a strategy to maximize discretionary
income?
A Debt restructuring
B Loan transfer
C Investment restructuring
D Insurance purchase
Question 26
What is a policy withdrawal?
A Discontinuation of premium payment by policyholder
B Surrender of policy in return for acquired surrender value
C Policy upgrade
D Policy downgrade
14Prepared by Manish Suryawanshi

15. Question 27
_____________ is not a tangible good.
A House
B insurance
C Mobile Phone
D A pair of jeans
Question 28
What does unbundling of life insurance products refers to?
A Correlation of life insurance products with bonds
B Correlation of life insurance products with equities
C Amalgamation of protection and savings element
D Separation of the protection and savings element
15Prepared by Manish Suryawanshi

16. Question 29
Ajay pays insurance premium for his employees. Which of the below insurance
premium will not be treated deductible as compensation paid to employee?
Choice I: Health insurance with benefits payable to employee Choice II: Key
man life insurance with benefits payable to Ajay
A I only
B II only
C Both I and II
D Neither I nor II
Question 31
What is the full form of PML&A Protection of money
Laundering
B Premium of money Laundering
C Prevention of money Laundering
D None of the above 16Prepared by Manish Suryawanshi

17. Question 32
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 33
Mr Prafull is a director of company his monthly income is
11,00,000, the company has taken a Key insurance for Mr.
Prafull his sum assured is linked to ____________
A Sum Assured of Policy
B Porifitability of Company
C Income of Prafull
D None of the above
17Prepared by Manish Suryawanshi

18. Question 34
Which of the below losses are covered under key man insurance?
A Property theft
B Losses related to the extended period when a key person is
unable to work
C General liability
D Losses caused due to errors and omission
Question 35
Which Act govern the insurance business in India
A IRDA Act 1999
B Insurance Act 1938
C Consumer Protection Act 1956
D None of the above
18Prepared by Manish Suryawanshi

19. Question 36
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 37
Leaving a good first impression involves
A The agent demonstrating confident, positive attitude and
punctuality
B The Agent Gaffing all the product brochures with him
C The Agent sharing his qualification details with the customer
D None of the above
19Prepared by Manish Suryawanshi

20. Question 38
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 39
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 20Prepared by Manish Suryawanshi

21. Question 40
Ram purchased an Endowment policy of 10 Lakhs sum assured for 20 years .
Simple reversionary bonus declared in 2nd year is 6011000 of sum assured.
Calculate bonus for 2nd year
A 600
B 6000
C 60000
D 600000
Question 41
Mr Raju want a pension plan in which after he dies the annuity is
paid to his spouse for her life time. Which type of Annuity Mr. Raju
should purchase
A Joint Life last surviver with return of purchase of price
B immediate Annuity
C Joint Life Annuity
D Deferred annuity
21Prepared by Manish Suryawanshi

22. Question 42
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 Anthony 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
Question 43
Which of the below group would not be eligible for a group health insurance
policy?
A Employees of a company
B Credit card holders of an organisation
C Professional association members
D Group of unrelated individuals formed for the purpose of availing group health
insurance
22Prepared by Manish Suryawanshi

23. Question 44
_______________ 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
Question 45
In which insurance plan only the premiums paid over the term are returned
back?
A Unit Linked Insurance Plan
B Participating Plans
C Return of Premium Plan
D Money Back
23Prepared by Manish Suryawanshi

24. Question 46
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 47
The act which provides for presumption of death is
A Insurance Act 1938
B IRDA Act 1999
C IRDA Regulation 2000
D Indian Evidence Act
24Prepared by Manish Suryawanshi

25. Question 48
The payment of money in an insurance contract is known as ______________
A Offer and acceptance
B Consideration
C Legality
D Capacity of the parties
Question 49
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
25Prepared by Manish Suryawanshi

26. Question 50
As per Section 182 of the Indian Contract Act,___________ is a person
employed to do any act for another or to represent another in dealing with a
third person.
A Principal 'Officer
B Proxy
C Mediator
D Agent
26Prepared by Manish Suryawanshi