Exam Summary

Q-1. The Principle of Utmost Good Faith does not apply to Correct Q-2. Numerical rating system is used by.. Incorrect Correct answer: Underwriter Q-3. What is the binding force of any contract? Correct Q-4. Mortgage redemption insurance illustrates..( Correct Q-5. In insurance, the contingency insured against is usually the .. Correct Q-6. Insurance is .. Correct Q-7. Over time, operating expenses of insurance companies go up for rendering customer services. (1) (B) The availability of insurance gives a fillip to moral hazard Correct Q-8. When an investigation is being made in respect of an early claim Incorrect Correct answer: It should be completed within 6 months Q-9. Which of the following is not considered as a material fact? Correct Q-10. Risk retention and risk transfer techniques are best describes as which of the following:Correct Q-11. What is direct advantage of insurance.. Correct Q-12. When it is said that insurance contract, generally speaking are contracts of

indemnity, the reference is to.(1) Correct Q-13. Which of the following is a type of pecuniary insurance? Correct Q-14. The Pure Premium will be Incorrect Correct answer: More than the Office premium Q-15. A lien may be imposed by the underwriter if .. Correct Q-16. Insurable interest can be acquired in which of the following :- 1. Custody of property belonging to the others e.g. Bailees.2. Insurable interest between debtor and creditor.3. A lien holder has insurable interest in the property subject4. By legal possession of property Incorrect Correct answer: All of the above Q-17. Which of the following is not available in variable life insurance? Incorrect Correct answer: guaranteed return on cash accumulation Q-18. There must be a sufficiently bags number of __________ exposure units to make the losses reasonably predictable. Correct Q-19. Franchise in insurance parlance refers to Correct Q-20. Riders on life insurance policy are.. Correct Q-21. Risk management is a scientific approach that deals with Correct Q-22. Who amongst the following can make the proposal for insurance of adult? Correct Q-23. Which of the following statement is true? Correct Q-24. The person making the proposal is called .. Incorrect Correct answer: Promisor. Q-25. Under Anticipated Endowment policies, Capital Sum Assured is payable.(1)

Correct Q-26. . are those risk which result from changes in the society. Incorrect Correct answer: Dynamic Risk Q-27. The business of insurance has.. Correct Q-28. The State consumer disputes redressal forum can decide cases Incorrect Correct answer: For compensation higher than 5 lac but lower than 20 lac Q-29. When there is the possibility of loss or no loss is an outcome, it is a case of . Correct Q-30. Material fact is .. Correct Q-31. (A) All agreements may not be contract(1) (B) All contracts are agreement Correct Q-32. The existence of insurable interest is decided by Correct Q-33. What is not normally covered in Mediclaim? Correct Q-34. Licenses for working as insurance agent are given to Incorrect Correct answer: Al l the three Q-35. The main characteristic of a Deferred annuity is that .. Correct Q-36. Principle of Subrogation is a corollary to Correct Q-37. An insurance policy is governed by Indian contract act. Correct Q-38. According to Fire Tariff, which of the following cannot be covered under value polices? Correct Q-39. An annuity contract whose cash values and benefit payments are related to assets allocated is. Correct

Q-40. In insurance hazard are classified into Correct Q-41. Professional Indemnity Insurance upholds that: i. Duty of care is owed by suppliers of advice or information ii. Suppliers of advice or information present themselves as having special skill and knowledge in the area that the information is related to iii. It was reasonable that the person who took the advice or information would rely and act on that advice iv. Liability only arises as a result of dishonest service Correct Q-42. If the life insurance policy is endorsed under MWP Act, 1874 then _________. Correct Q-43. If there is a risk of high frequency and the extent of loss is very less what step is required to be taken by the person amongst the following:Correct Q-44. If there are 2 insurance policies A and B, policy A subject to an excess of Rs.1000/- and policy B subject to a franchise of Rs.1000/- and if the loss of Rs.500/- is reported under each policy, Rs. _______ will be payable under policy A and Rs.________ under policy B. But if the loss under each policy was Rs.1100/- policy A will pay Rs. ______ only but policy B will pay Rs. ______ Correct Q-45. Mr. Mohan insured his factory worth Rs. 15 lacs. A portion of his factory was destroyed in fire and the loss was estimated at Rs. 8 lacs. Calculate the amount of claim that will be paid to Mr. Mohan. Incorrect Correct answer: Rs. 6,40,000 Q-46. The most common definition of actual cash value (ACV) in the Property insurance field is which of the following:Incorrect Correct answer: replacement cost, less deprecation Q-47. The maximum towing charges of a private car payable is restricted to Incorrect Correct answer: Rs.1500/Q-48. Insured's declared value (IDV) does not apply to which of the following:Correct Q-49. Which of the following fidelity guarantee policies is automatically cancelled on payment of loss? Correct

Q-50. A client explains that she only wants an insurance policy that will cover her family against financial risk over the next five years, while she still has dependent children and a large mortgage. It is unlikely her income will increase over this period. What type of insurance is she looking for?(1) Correct Q-51. Which of the following contracts are not contract of indemnity? Correct Q-52. The premium of a Mediclaim policy is not related to .. Correct Q-53. The definition of an insurance agent is given by Incorrect Correct answer: Insurance act Q-54. A good agent is one who Correct Q-55. A person owns a flat worth (market value) Rs.2, 00,000. He has insured it only for Rs.1, 50,000. The flat is damaged by an earthquake, which loss is assessed at Rs.1, 00,000. Assuming the insurer applies the principle of average loss, the insured will get a claim payment of Correct Q-56. What does annuity signifies? Correct Q-57. How the family is considered in Human Life Value pattern? Correct Q-58. After the claim is paid, for how long are the records to be kept safe? Incorrect Correct answer: 3 years Q-59. A. Whenever the wording in an endorsement or rider is in conflict with the terms of the policy to which it is attached, the endorsement or rider take precedence. (2) B. One reason for exclusions in insurance policies is that the risks are covered by other insurance. Correct Q-60. Which of the following statements is true? Correct Q-61. A person owns a flat worth (market value) Rs.200000. He had insured it only for Rs. 1,50,000. The flat is damaged by an earthquake, which loss is assessed at Rs.40000. Assuming the insurer applies the principle of Average to the loss, the insured will get a claim payment of.

Incorrect Correct answer: Rs.70000 Q-62. Premium on Motor Insurance policy doesnt depend on which one of the following factors? Correct Q-63. A Money Back policy for sum assured of Rs.50,000. Matured after 25 years. Survival benefits of 15% each had paid at the of 5th, 10th, 15th and 20th years. Bonus had accrued at Rs.965 per Rs.1000 SA. Interim bonus @ Rs.25 per thousand of SA is payable. What is the maturity claim amount? Correct Q-64. A missing person will be presented to be deal only after .. Correct Q-65. Calculate yearly premium of Prakash at a age of 27 sum assured is Rs.50,000, if tabular premium is Rs.27.83, rebate for modal premium is Rs.1.5 for yearly, sum assured rebate is Rs.1.50 less for Rs.50,000 and above? Correct Q-66. A client explains that she only wants a life insurance policy that will cover her family against financial risk over the next five years, while she still has dependent children and a large mortgage. It is unlikely her income will increase over this period. What type of insurance is she looking for? Correct Q-67. Calculate paid up value : Sum assured: 5,00,000/-; Plan: Endowment - 25 years; Date of commencement. - 1 st Feb., 1998; Last premium paid - 1 st Aug, 2007; Mode of Payment - Half yearly Vested Bonus - Rs. 42,000 Correct Q-68. The probability of an event is mentioned .. Incorrect Correct answer: either as a percentage or as a ratio Q-69. Calculate yearly Premium of a SA of Rs. 40,000 with health extra Rs. 2.50, Double Accident & Extended Permanent Disability Benefit not allowed, age nearer Birthday 32, While Life with profits for 32 years limited payment period tabular Premium Rs. 25,40, SA rebate Re. 1.50 on Rs. 10, 000 and above? Correct Q-70. From the following information, calculate quarterly premium? Policy: Endowment Policy. Term: 20 years. Sum assured: Rs. 75,000. Accident Benefit: Rs.5 per thousand Age: 30 years. Tabular Premium: Rs.27.56 Rebate on quarterly Premium: 0.5% of tabular premium. Rebate on large sum assured: up to Rs.10, 000; no rebate. From Rs.10, 001 to Rs.50, 000 @ 1 per thousand From Rs.50, 001 to Rs.1, 00,000 @ 2 per thousand. Correct

Q-71. In an endowment plan of 20 years, sum assured of Rs.50,000 which commenced on 15th, September 1996 and due date of last unpaid premium is 15th, September 2005 where mode of payment is Half Yearly. Surrender value factor is 60% and loan available is 80% of surrender value. Calculate paid up value, surrender value and loan available? Incorrect Correct answer: 25,000; 15,000; 12,000 Q-72. Following is the date of Mr.Batra:- Earning- Rs.2, 00,000 per annum Debts Rs.1, 00,000 To support dependents 75% of pre-death salary is needed by the family. Assuming interest rate is 8% per annum, how much times of current annual salary is needed for life insurance cover, if multiple method is usedCorrect Q-73. Rohan, 30 years and married, works for a firm which provides him medical cover. He already has his own home and savings of 42 lakhs which are well invested. In next 20 years he will be able to save enough to fund his retirement and his child education. Which of the following insurance would be the most important for him? Correct Q-74. Mr. Surana, aged 35 years in married and is working as a Manager in Wipro Ltd. His retirement age is liley to be 60 years. His annual salary is Rs. 7,20,000. Apart from this he gets approximately Rs. 25,000 per year as interest income. His self maintenance expenses are Rs. 50,000 per year. He pays and annual premium of Rs. 24,000/- for policies on his own life (SA of Rs. 4 lacs) and for that of his wife (SA of Rs. 2 Lac). He pays Rs.99,000 as income tax every year. Rate of interest assumed for capitalization of future income is 8%. Calculate the insurance required by Mr. Surana as per HLV method. Correct Q-75. A group of 50000 persons, each aged 35 years, wish to apply for Term Insurance for a one year period for a sum of Rs.2 lakh each. If the mortality tables show that out of 50 lakh people 30000 die within a year, find the premium to be paid by each of the 50000 applicants. Correct