Both the parties of a contract must agree and understand the same thing and in the same sense which is called
Consideration
Consensus ad idem
Legality of object.
Acceptance
According to Insurance broker association of India, what is the most appropriate relationship between insurer and broker
Insurance broker represents the client and insurer, remunerate the broker
Insurer represent both client and broker remuneration
The client represents broker and insurer remunerate broker
Broker only .service the client
Reasons for surrender of the policy
SA
no commission
advisor induced
Has Financial Problems
Which section deals with the licencing of an agent?
Section 42 of insurance Act 1938
Licence section of Insurance Act 1938
Section 42of insurance Act l936
Licence section of Insurance agent act 1938
During fact finding the need revealed requirement for margin money and retirement fund. Which of these assumes higher priority will be determined on the basis of
Margin money
Tenure left for retirement and corpus needed
Retirementfund
Quantum of investment
In which of the recognised life stages an indivlducl does not required any protection cover
Childhood
Pre retirement
Young married
Retirement
A customer while investing in a recurring deposit or cumulative deposit what are the key factors which will matter
Taxation
Interest rates
Frequency of payment
Tenures
Prashant buys an endowment plan with a SA Rs. I lac an to make use of tax benefit under the policy for whole S. much premium would help him avail this benefit-
Less than Rs. 10,000
Less than Rs. 20,000
More than Rs. 10,000
More than Rs. 20,000
In a fact find, a couple discovered their need to be estate planning? In what life stage will they be in?
Married
Married with older children
Married with children
Retirement
.Jay buys a policy on the life of Nazia. Who is Jay?
Life Assured
Proposer
Nominee
Appointee
Insurance benefits
Individuals
The society
The country
All the three
Breach of duty of utmost good faith
Nondisclosure of material facts
Fraudulent presentation
concealment of material facts
All above
After maturity in a ULIP customer does not get maturity amoUntk. lump sum. What is the possibility of receiving it in instalments ifI is not annuity plan?
He has switched his fund
He hasredirected his past premium
He has opted for settlement option
Policy was lapsed at the time of maturity
Insurable interest on one's own life limited upto
20 times of Gross Annual income
Assets
Liabilities
Unlimited
a Policy holder takes a insurance contract for 30 years and the SA reduces after 25 years what could be the likely reason
No bonus accumulated
Policy has become paid up
Age proof was substantially wrong
Its a ULIP Plan
A person retiring within 3 months need return as pension. What kind of investment plan he need to choose.
Immediate Annuity
Anticipated Endowment
Deferred Annuity
ULIP
The amount payable under a life Insurance policy depends on
The income pf the insured person at the time of the claim
The amount of the sum assured
The income of the insured person When he took the insured
None of the above
Payment/investments in Kisan Vikas Patra under post office scheme is done
Regularly with no fixed term
Lump sum for fixed period of time
Lump sum with no fixed term
Regularly for fixed period of time
Two endowment policies A and B are issued in the same time on the quarterly mode. In both the policies 22 quarterly installments are paid. Both are surrendered immediately after paying 22nd installment. But in policy A surrender value is significantly hig
Term of A policy is higher than B policy
Policy A is assigned and B is not assigned
Term of B policy is higher than A policy
Policy B is assigned and A is not assigned
An advisor while explaining the policy and to sell he accepts to give a part of his Agents commission, what is the limits
0.1
He cannot offer any commission
0.2
He can offer up to 50%
Advisor motivate the client to surrender the existing Endowment plan and buy new Whole life policy for gaining higher commission, is the example of?
switching
Revisit the financial planning
Building long term relations
Churning
Insurance is helps to
Reduce the consequence of adverse situations
Ensure that assets never breakdown
Guarantee that assets are always procutive
Do all of the above
An insurer, as a trustee, has to ensure that
The life fund is safe
Both of the above
The life fund earns the maximum interest
Neither of the above
Benefit illustrations given to a customer quantifies an amount by which investment return is reduced. This reduction reflect the impact of
Charges
Inflation
Interest
Taxation
What period of time a client has to be invested to get tax benefit under postal scheme?
10 Years
6 years
8 years
5 years
What is the period of award passed to the customer decided by ombudsman?
2months
5 months
3 months
6 months
A human being
Is an economic assest
Is a perishable asset
Is an income earning assets
All the above
The rates of assumed annual growth to be shared in the benefit illustration has been decided by which of the authority
IRDA
The Royal Bank
Life insurance council
SEBI
Responsibility for classification and analysis of proposal form Iii with whom?
Risk analysis department
Underwriter
Classification of risk deptt.
Actuary who analysis the risk
Life insurance is better than other avenues of saving in respect of
Marketibility
Trancsferability
Liquidity
All the three above
Aman has taken a term plan for 20 years In the 3rd year he suffered financial crisia due to....whibh he' was'. unable to pay premium within grace period . and died after I month. The nominee files a claim and is rejected because
Policy was not in force
The claim is fraudulent
This condition was excluded in policy
The claim ian early claim
Law of large number helps Insurer to analyse which key area
Administrative expenses
to remove adverse selection
in fixing the correct premium
Non of the above
Mr. Feroz has taken a policy for critical illness worti. Rs. 1Ia health,policy. He.also has a term plan worth Rs 10 lac.Mr.. Fe was hospitalised after, hewas detected wthcancer. He died afl .3 dayséf treatment. How the claim will be settled?
Claim of critical illness and 10 lac from term policy will settled
Claim will not be settled as he died due to cancer
Claimof hospital charges Rs 20,000 and I lac for death V be settled
Claim will not be settled as per instruction of underwriter
What is the minimum age of the customer for entering the Insurance contract?
16 years
18 years
17 years
21 years
Client died in 89th day from DOC. In which category he is not eligible for claim
Murder
Accident
Deep Illness
Suicide
To avail the income tax benefit at investment stage,V
10% of Cumassured
30% of sumassured
20% of sum assured
40% of sum assured
During claim insurer deduct Rs. 10,000 in spite of having no Lien and all due premiums are paid. What are the other reason for deducting the same?
Premium Rate increase
Mode of Payment
Loan facility
Loading
Relation between insurer and Broker means
Client represents the broker and the insurer remunerate the broker
Broker represent the client and insurer remunerate the broker
Insurer represent both client and broker remuneration
Brokerserve the client
In case the customer has stopped making payment for U premium of the policy what are two most important thing requiri in order to reinstate the policy
Reinstatement fee and proof of good health
Only health certificate
Premium cheque and health declaration
Premium cheque with arrear
In term Insurance how peril & Hazard are distinguished?
Perils are risk that policyholders will die before in specified date and hazards are factors which could influence that risk
Peril are factors which affects the risk being insured and hazards are the size of the risk being insured
Perils are medical factors which influence the risk of dying and hazard are lifestyle activities which influence the risk of dying
Peril are factors which could influence an insured event occuring and hazard are the actual events which will triger a payout
Ramesh wants to buy 15 years pension plan for retirement while calculating gaps required at the end the gratuity amount was completely ignored because he is
self employed
Savings are significantly higher
Widower
Govt employee
What ever riding criteria an insurance, agent consider whil proposing a solution
Risk
Flexibility
Suitability
Cost
Life insurance is better than other avenues of saving in respect of
Appricaition
userfulness in emergency
Tax benefits
All the above
If insured gets two advance payment in 5 yrs and in mat gets rest of sum assured what type of policy it is
Money back policy
Term plan
Corivertible plai
Endowmentpol
Mr. Santash is head master and is 52 yrs old. He wants insuran cover for Rs. I crore. He proposes his brother's son as nomin not his wife underwriter will verify
A physical hazard, as he is old
Moral hazard as coverage is high and brother's son nomwiee
Moral hazard as he is 52 yrs and wife is not nominee
Moral hazard as he is head master and 52 yrs oldj
While calculating HLV with future income, number of years work, increments in salary what is also to be taken in to accouni
Inflation
Discount rate
Interest
Compounding
E-Sales lefers to sales of insurance product through
Insurance broker
Individual agent
Bancassurance
Internet
What will be maturity benefit under health insurance plan
Fund value
Paid premium with interest
Paid premium
No maturity benefit
The best way to prove that customer of a ULIP policy is given awareness about the commission paid to the agent is
Ask the insurer to give a policy endorsement letter
From signed copy of benefit illustration
From the fact details
From ticked columns of proposal form
An agent is intermediary between
Client and insurance company
Client and IRDA
Insurance Company & IRDA
Insurance and Reinsurance Company