Escolar Documentos
Profissional Documentos
Cultura Documentos
PCE A & C
SET B
ENGLISH
A. Risk B. Contract
C. Insurance D. Investment
A. It is an economic institution.
B. It is based on the principle of profit acquisition
C. Its objective is to accumulate funds to pay for claims.
D. Only certain risks can be insured against.
5. The insurance industry in Malaysia had been largely patterned on the ________
system.
A. American B. British
C. Indian D. Holland
6. In order to standardize and control the insurance business in Malaysia, the first
Insurance Act was introduced in ____________.
A. 1996 B.1957
C. 1963 D.1972
A. Prevention B. Retention
C. Control D. Elimination
A. Possibility B. Probability
C. Uncertainty D. Prediction
10. The risk that affects the entire economy or large number of people / groups within the
economy is called ______________.
11. The situation where there is the possibility of profit, loss or no loss is _____________.
I. Loss Prevention
II. Loss Minimisation
III. Loss Prediction
IV. Loss Avoidance
13. The systematic approach to dealing with risks that threaten assets and earnings of a
business or enterprise is called ________________.
14. The following arrangement of Risk Management is wrong, kindly rearrange them
according to sequence.
17. There must be a large number of similar risk before any one of the risks is capable of
being insured, the reasons are :
A. Insurable Interest
B. Indemnity
C. Utmost Good Faith
D. Assignment
21. Which of the following is NOT the special legal principles embodied in insurance
contract?
A. Insurable interest
B. Contribution
C. Claim
D. Indemnity
23. Utmost Good Faith is breached when the proposer who knows or is reasonably
expected to know the material fact is ______________________.
I. Fails to disclose
II. Been misrepresents
III. Been disclose fully and accurately
IV. Been loss by the company
A. Cash B. Repair
C. Loss Retention D. Reinstatement
I. Investor
II. Trustee
III. Entrepreneur
IV. Capital Provider
A. To withdraw
B. To donate
C. To transfer
D. To contribute
27. In which part of The Takaful Act 1984 discuss about mode and conduct of Takaful
business such as restriction, operations, establishment and maintenance of Takaful
fund and allocation surplus.
A. Part I
B. Part II
C. Part III
D. Part IV
28. Perils which have been expressly excluded from the policy called _____________.
A. Unknown Perils
B. Excluded Perils
C. Insured Perils
D. Uninsured Perils
29. The principle requires the insurers to restore the insured to the same financial position
as he/she had enjoyed immediately before the loss called _______________________.
A. Indemnity
B. Utmost Good Faith
C. Contribution
D. Subrogation
30. Perils which is not mentioned in the policy and therefore not covered by the policy
unless they occur as a result of an insured perils are known as ___________________.
A. Unknown Perils
B. Insured Perils
C. Excluded Perils
D. Uninsured Perils
31. When an insurance company organizes its department on a functional basis, the basic
function and decision making tend to be centralized at the head office. What is the
disadvantage of centralization?
32. Which of the following are the main components of insurance market?
I. Buyers
II. Sellers
III. Bankers
IV. Service Specialist
A. I & II B. I, II & IV
C. I, II & III D. III & IV
33. The department involved in setting the selection criteria, selects the risk and determine
the premium, term and conditions of new business and renewal.
A. Audit Department
B. Underwriting Department
C. Policy Service Department
D. Actuarial Department
34. When action of insurance company is centralized, all the process are concentrated at
the ____________________.
A. branch office
B. head office
C. agents office
D. brokers office
35. Which of the following is NOT the main objectives of the Malaysian Insurance
Institute (MII)?
A. All policy drafting, renewals and claims are handled by Director of Agency.
B. All policy drafting, renewals and claims are handled by Director of Company.
C. All policy drafting, renewals and claims are handled at Headquarters.
D. There is no branches.
37. The surplus of a mutual insurance company are shared among __________ and the
profits made by the operations of the proprietary company are distributed among its
____________.
A. Shareholders, policyholders
B. Policyholders, shareholders
C. Contract holders, shareholders
D. Policyholders, brokers
38. This party normally acts on behalf of the insured and normally not tied to any one
insurer.
A. Universal Agent
B. Insurance Dealers
C. Special Agent
D. Insurance Broker
A. Multi-Level Insurers
B. International Insurer
C. Mutual Insurer
D. Universal Insurer
A. 1981
B. 1972
C. 1963
D. 1974
A. PIAM
B. MII
C. MIB
D. None of the above.
42. Insurers will share the burden of paying claims particularly those involving large
amount with _____________________.
A. LIAM
B. Agents
C. PIAM
D. Reinsurers
46. The objective of the Insurance Mediation Bureau is to provide dispute resolution
procedures for policyholder and _____________________.
A. Insurers
B. Agents
C. Brokers
D. Reinsurers
48. In some instances, the insurer may not accept a proposal on its original terms but may
offer to provide insurance on different terms. This transaction called :
I. Government
II. Insured
III. Insurer
IV. Broker
50. In general and life insurance contracts, the insured’s consideration is _____________.
52. A ____________ contract will remain valid until the aggrieved party exercises the
option to treat it void.
A. Void
B. Voidable
C. Unenforceable
D. All of the above.
53. An insurance contract is a legally binding agreement between an insured and his
insurer. The essentials of an insurance contract requirements are :
A. I & II B. II & IV
C. I , II & III D. All of the above
54. The agent can act only within the authority granted to him by the principal. The
granted authority may be ___________________.
A. Expressed
B. Implied
C. Apparent
D. All of the above
A. Express authority
B. Implied authority
C. Apparent authority
D. Usual authority
56. The relationship of principal and agent may be terminated by the following acts,
EXCEPT :
A. by notice of revocation
B. by notice of renunciation
C. by mutual contract
D. by mutual agreement
57. The functions of selecting market segments which have similar needs for policies
developed by the company is called _____________________.
A. Market Diversification
B. Market Identification
C. Market Development
D. None of the above
59. Please identify which of the following is NOT part of the customer buying decision
process.
A. Problem recognition
B. Information search
C. Handling objection
D. Post-purchase evaluation
60. Based on the studies conducted by U.S.A. indicating that the most important factor for
the selection of a particular insurer is ______________________.
61. When selling is done indirectly by establishing goodwill between the agent and his
customer, it is called :
A. Order Selling
B. Creative Selling
C. Missionary Selling
D. Massive Selling
62. Which of the following is the evidence of premium payment for the policyholder?
A. Official Receipt
B. Premium Notice
C. Policy Register
D. Proposal Form
63. A due payment shall be paid on the date specified in the policy contract. However,
most contracts provide that such payments can be made within 30 days from the due
date. It is called ________________________.
A. Lapse Period
B. Grace Period
C. Expiry Period
D. Allowance Period
64. The agent is helping the customer to uncover his needs and recommend policies to
meet those needs. This selling techniques is called ____________________.
A. Order Selling
B. Creative Selling
C. Missionary Selling
D. Massive Selling
A. Premium can be paid by yearly, half yearly, quarterly and monthly installment.
B. Yearly premium is the lowest premium paid.
C. Monthly premium can be collected through home service.
D. Monthly premium involves the least administrative work.
66. When determine the premium rate, which of the following was not taken into account
by the insurance company?
A. Mortality
B. Expenses
C. Tax
D. Political fees
A. Insurable Interest
B. Claim
C. Utmost Good Faith
D. Moral Hazard
68. A contract where one party provides something of value to another party in exchange
for a promise that the other party will perform a stated act if a specified, uncertain
event occurs is called an :
A. Investment contract
B. Aleatory contract
C. Unilateral contract
D. Offering contract
70. Section _______ of the Insurance Act 1996 elaborates on the principle of insurable
interest.
A. 150
B. 152
C. 155
D. 154
71. For life insurance contracts, the risk to be insured _____________ with time.
A. decreases
B. increases
C. remain
D. end
72. Which of the following parties need to observe the principle of Utmost Good Faith?
I. The insured
II. The agent
III. The insurer
IV. The legislator
73. In general insurance, the insured risk may not increase with duration, and in fact may
decrease due to ________________________________________.
74. Employer of ABC company purchased a group insurance for his employees. What will
happen to the group insurance if one of his employee leaves the company?
75. Participants in Family Takaful Plans may elect to incorporate any of the following
supplementary benefits :
76. “This contract is mainly for protection purpose and the main benefit is generally
guaranteed.” Which of the following contract describe the above statement?
A. Participating Contract
B. Non – participating Contract
C. Endowment
D. Annuities
78. Which of the following policies would you recommend to a customer who needs to
prepare an education fund for their children. (Choose the BEST answer)
79. What is the minimum age limit required to participate in Takaful Plan?
A. 16
B. 18
C. 15
D. 17
80. In Takaful, a person who joins any of the Family Takaful Plan become a __________.
A. Participant
B. Policyholder
C. Insured
D. Contributor
81. Mr. Lim bought a life insurance of RM100 000 and RM50 000 accident benefit. If he
died due to accident, how much can he claim from the insurance company?
83. Which of the following policy generally utilise to cover loans which is gradually
being repaid?
84. Family Takaful benefits are divided into three (3) main portion as below EXCEPT :
87. Which type of policy is the purest form of permanent contract, can be issued with
or without participating and provides larger amount of life cover than any other
permanent type of life insurance?
88. For Deferred Annuity, if death occurs before the annuity payment commences ______.
90. The Contract of Group Insurance is solely between the insurance company and the
employer who is named in ____________ as the _______________.
91. Premium paid by the client is divided into the following components,
I. Expense related
II. Investment related
III. Benefit charges
IV. Mortality cost related
92. One of the Children’s Insurance is Protected Educational Policies. In this form of
insurance, the policy is issued on the life of the ___________. The _________ is
designated as the beneficiary.
A. Child ; Mother
B. Child ; Parent
C. Child ; Child
D. Parent ; Child
93. In Group Insurance, if the employer pays all the cost or in other words, the plan is
___(I)____, __(II)___ of all the eligible employees must join.
If the employer and employees share the cost, the plan is ____(III)______, at least
__(IV)___ of all eligible employees must join.
A. (I) Master Plan, (II) 90%, (III) Non-Master Plan, (IV) 100%
B. (I) Master Plan, (II) 100%, (III) Non-Master Plan, (IV) 75%
C. (I) Non-Contributory, (II) 100%, (III) Contributory, (IV) 75%
D. (I) Non-Contributory, (II) 75%, (III) Contributory, (IV) 100%
94. Which are the true statements regarding Guaranteed Immediate Annuity?
I. This contract provides guaranteed payments over a fixed period before the death of
the annuitant.
II. This is a normal life annuity.
III. The annuity payment will cease on death of the annuitant.
IV. The annuity payment will continue to be paid till the end of the guaranteed period.
95. _______ days of grace are allowed for the payment of yearly, half-yearly, quarterly
and monthly premiums.
A. 14 B. 15
C. 30 D. 45
96. When a policy in force for ______ years or more, the ordinary policy becomes entitled
to a surrender value.
A. 6
B. 2
C. 3
D. 5
97. Section ______ of the Insurance Act 1996 regulates the basis of surrender values.
A. 154
B. 155
C. 145
D. 156
I. The governing rate of interest on the loan shall be fixed by the company granting
the loan.
II. The policy loans must be repaid within 3 years after the issuance of such loan.
III. The policyholder entitles to loan anytime in their life time.
IV. The amount of loan available will be quoted on application to the government.
99. __________ policy is a policy under which, the cash value available is used as a single
premium to provide for an insurance on the original terms, but for a reduced sum
assured.
A. Extended Term
B. Paid-up
C. Reducing Term
D. Reducing Sum Assured
101. Which of the following are the criteria of Automatic Premium Loan?
I. It provides a continuation of the insurance cover when the assured fails to pay a
premium.
II. The assured must provide evidence of insurability when bringing the policy back
to its original status.
III. Premiums shall be thus paid until the cash value has been entirely utilized.
IV. The use of Automatic Premium Loan allows continuity of supplementary benefits.
I. Once the policy is converted into Paid-up policy, no further premiums are payable.
II. All riders and supplementary benefits such as for disability and accidental death
shall remain in force.
III. Generally a participating policy will cease to participate in future benefits after
such conversion.
IV. The length of the term insurance depends on the available amount of the cash
value applied as a gross single premium at the time of conversion.
103. Which of the following cannot be the only basis for an insurance contract to be void?
A. no insurable interest
B. non-disclosure of material facts
C. misrepresentation of age
D. illegality of subject matter
104. Which of the following is NOT considered when applying for reinstatement?
A. Medical evidence
B. Non-forfeiture period
C. Days of grace
D. Insurable Interest
105. ____(I)_____ is the written document which embodies that agreement is in concrete
form. ___(II)____ is an intangible thing, a legally binding agreement between the
concerned parties.
106. An ________ is one which does not leave any right with the assignor except paying of
premiums if he chooses to pay.
A. Conditional Assignment
B. Absolute Assignment
C. Transferable Assignment
D. Revocable Assignment
107. The insurer cannot deny liability on the policy after 2 years of its issue on the grounds
of misrepresentation or non-disclosure alone unless he can prove that such
misrepresentation or non-disclosure was made fraudulently by the insured.
This statement is referring to :
109. Section 156 of the Insurance Act 1996 provides that where a life policy has been in
force for three (3) years or more, it shall not lapse by reason of non-payment of
premiums but shall have effect subject to such modification as to the period for which
the policy is to be in force, or of the benefit receivable under it , or both.
This statement is referring to :
110. In calculating risks, the insurer have to consider a few factors that may affect the
policy condition which is _____________________.
I. Avocation
II. Education
III. Occupation
IV. Ethnicity
112. The insurer usually employs any one of the following methods to deal with sub-
standard lives EXCEPT :
I. Insurable Interest
II. Physical Hazard
III. Financial Status
IV. Moral Hazard
114. When there is an extra loading on the proposal, a letter indicating the loading is issued
to the proposer as a _____________.
A. Consideration Letter
B. Counter-offer
C. Probation Period Letter
D. Postpone Coverage
115. When the proposal being approved without premium payment, company will issue a
letter of acceptance to the proposer required to make a payment within _______ days.
A. 15
B. 30
C. 90
D. 60
116. Commencement of the policy may be back dated to an earlier date, usually up to a
maximum of ____________.
A. 30 days
B. 60 days
C. 90 days
D.180 days
118. For those in employment, taxable / assessable income constitutes such items as :-
I. leave pay
II. commissions
III. gratuity
IV. allowance
119. The premium is allowable when life insurance or deferred annuity is __________.
120. The ________________ serves as an official record of policies issued by the insurer.
A. Policy Record
B. Policy Register
C. Policy Receipt
D. Policy Letter
121. For participating policies, they are charged a slightly higher premium than their non-
participating counterparts and this additional premium is known as _______________.
A. Bonus Additional
B. Bonus Loading
C. Cash Bonus
D. Additional Premium
I. Installment Premium
II. True Premium
III. Consistent Premium
IV. Level Term Premium
123. The charge for covering the cost of mortality alone is called the ________________.
A. Net Premium
B. Gross Premium
C. Risk Premium
D. Interest Premium
124. Under this type of regular premiums, the premium payments cease on death and no
deduction is made from the claim amount.
A. True Premium
B. Installment Premium
C. Pure Premium
D. Level Term Premium
A. Net premium plus Loading for expenses plus Loading for profits & contingencies
B. Net premium minus loading for expenses plus loading for profits & contingencies
C. Net premium minus all the expenses
D. Gross premium minus all the profits & contingencies
126. Liability = The present value of the benefits payable _______ The present value of
expenses ______ The present value of the future premium receivable.
A. plus, plus
B. plus, less
C. less, plus
D. less, less
127. The assets may be valued in several ways, depending on the purpose of the valuation.
Some of the common methods of valuing assets are :-
I. Cost Price
II. Book Price
III. Market Value
IV. Cash Value
128. _____________ is only paid on policies resulting into claims either by maturity or
death, provided the policies concerned had been kept fully inforce by payment of
premium until such date of claim.
A. Cash Bonus
B. Terminal Bonus
C. Interim Bonus
D. Guaranteed Bonus
A. Cash Bonus
B. Maturity Bonus
C. Guaranteed Bonus
D. Mortality Bonus
A. This is the value for which the assets can be sold in the open-market.
B. This is the value placed on the assets in the company’s accounts books.
C. This is the price determine by the manufacturer.
D. This is the price at which the asset was acquired.
I. Expenses
II. Mortality
III. New Business
IV. Interest
132. What type of value which the assets can be sold in the open market?
A. Book Value
B. Cost Value
C. Market Value
D. Open value
134. Under this method, the bonus allotted is in proportion to the sum assured and the
bonuses accumulated under the policy.
135. The portion of the surplus that may be passed to the shareholders in the form of
individuals is normally stated in the company’s memorandum of Articles of
Association or by registration and is in the region of ___________ of the divisible
surplus.
A. 10% - 20%
B. 10% - 30 %
C. 10% - 25%
D. 15% - 25%
136. What type of form need applicant to fill-up major portion of the information relating
to applicant himself ?
A. Proposal Form
B. Medical Form
C. Declaration Form
D. Payment Form
137. “This section includes a declaration that answers given in the proposal and medical
report forms shall form the basis of the contract”
A. The Preamble
B. The Proviso
C. The Operative Clause
D. The Schedule
138. The proposal form completed by the applicant contains as below, EXCEPT :
A. Personal particulars
B. Details of liabilities
C. Details of insurance
D. Personal and family history
139. Generally, information necessary for the proper assessment of risk obtained from
different sources as below, EXCEPT :
A. Pay Slip
B. Physician’s Statement
C. Medical Report
D. Proposal Form
140. Besides recording the applicant’s answer concerning medical history, the reports of
examining doctor include :
141. Two main forms of policy are in use the ___________ type and the _________ type.
I. Narrative
II. Schedule
III. Preamble
IV. Condition
142. Which report furnishes the agent’s impression about the applicant’s habits,
appearance, character and financial status?
A. Previous Report
B. Physician’s Report
C. Agent’s Report
D. Company’s Report
143. Which form of policy is very simple, readily understood and elastic in adaptability?
A. Schedule Type
B. Narrative Type
C. Preamble Type
D. Condition Type
144. This section contains the applicant’s declaration, to the best of his knowledge, true and
complete and permission authorizing the insurer to seek information from any doctor
who has ever attended to him and any life office. Which section is these?
145. The standard policy documents are often endorsed to take into account the differing
aspects of individual circumstances and needs. Endorsements can be done at the :
149. When a death claim is made, the insurer need to obtain the following documentary
evidence from the claimant :
I. Proof of Survival
II. Proof of Death
III. Proof of Age
IV. Proof of Title and Ownership
150. The following documents are proof of title and ownership of an insurance policy,
EXCEPT :
A. A deed of assignment
B. A probate of the will from a court of law
C. A note from the insured’s family
D. A letter of administration issued by a court of law
151. For maturity claim, the policyholder needs to complete 3 forms which are :
I. Identity Form
II. Discharge Form
III. Survival Form
IV. Maturity Form
152. Which of the following is NOT relevant to the common settlement option for an
endowment plan?
153. Doctrine of __________ is important to claims for personal accident policies, as more
than one condition can operate leading to a claim.
A. Contribution
B. Proximate Cause
C. Subrogation Right
D. Indemnity
154. En. Ahmad was born in May 2, 1970. He submitted his proposal on October 3, 1996,
if the insurer used age last birthday as basis, what is En. Ahmad’s age in his proposal ?
A. 26
B. 27
C. 28
D. 29
155. What is En. Ahmad’s age if he submitted his proposal on Feb 3, 1998 and the insurer
used age next birthday as basis ?
A. 26
B. 27
C. 28
D. 29
156. What is En. Ahmad’s age if he submitted his proposal on Dec 3, 1996 and the insurer
used age nearest birthday as basis ?
A. 26
B. 27
C. 28
D. 29
157. Interest charge will occur when the policy holder _____________________.
158. Policies which accumulate _________ often carry the right to a policy loan.
A. Bonus
B. Cash values
C. Premium
D. Surrender Value
Table I : Premium Rate for 25- year endowment insurance on male lives treat the female lives
as 3 years younger.
Applicant : Darren
Sex : Male
Age : 26
Sum Assured : RM 10,000
A. RM 390
B. RM 395
C. RM 400
D. RM 405
Applicant : Simon
Sex : Male
Age : 30
Sum Assured : RM 45,000
A. RM 1755
B. RM 1791
C. RM 1890
D. RM 1926
161. Calculate the premium for the following applicant and determination of age is next
birthday.
A. RM 1875.00
B. RM 1912.50
C. RM 2025.00
D. RM 2062.50
162. Calculate the premium for the following applicant, determination of age is next
birthday.
Applicant : Angeline
Sex : Female
Date of Birth : December 25, 1970
Cover to commence : January 26, 1998
Sum Assured : RM 30,000
A. RM 1125.00
B. RM 1185.00
C. RM 1177.50
D. RM 1237.50
163. Guidelines on Code of Conduct, which are abided by all employees of insurers
operating in Malaysia at all times, are formulated by _______________
166. The term life insurance used in Code of Ethics and Conduct covers :
I. Home Service
II. Ordinary Life Insurance
III. Pensions Contract
IV. Permanent Disability Insurance
167. The life insurance’s Code of Conduct applies to all the following persons, EXCEPT :