RAP Exam Demo Test 13

Pankaj want to save tax over and above the deduction allowed under section 80C of the income tax act 1961, which allow deduction from taxable income

1. Corporate Bond

2. Infrastructure Bond

3. Health Insurance

4. Interest paid on education loan

In which of the following Bank pays the Interest on the deposit’s fund on monthly /quarterly /half yearly/ yearly basis as chosen by depositor fund:

1. Saving Deposit

2.Cumlative deposit

3. Traditional Deposit

4. Fixed Deposit

Vinod being an insurance agent can offer assistance to his client Ramesh by:

1. Providing him emergency fund.

2. Matching the product with Ramesh‘s financial need.

3. Recommendation of product with highest return.

4. Discourse saving in a purposeful and need based manner.

Which of the following is not featured and benefit of rider?

1. Providing additional cover

2. Maturity benefit

3. Nominal cost & flexibility

4. Customization and tax benefit.

Gaurav bought an endowment plan for 20 year of 10 lac SA with ADB Rider, died in road accident after 10th year how much money claimant would be payable:

1.10 lac

2. 20 lac

3.30 lac

4.5 lac

What do you mean by Double Income Family?

1. When a person of the family is involved in double businesses or jobs.

2. When both the life partners are earning members of the family.

3. When the income of a family is just the double of income of another family.

4. When the members of a family do not work at all.

In which of the following case there is no defined retirement age?

1. Public sector employees

2. Private sector employees

3. Professionals & Businessmen

4. All of the above

Which one of the following is true?

1. Every individual’s income and expenditure pattern is same.

2. Every individual’s income and expenditure pattern is different.

3. An individual’s income and expenditure has no relation.

4. An individual should not keep in mind his income while planning his expenditure.

Objectives of fact-finding do not include-

1. Identify needs

2. Gathering client data

3. Provide for anticipated changes

4.Surrendering the existing policies for selling new one

Which one of the following documents distinguishes between Guaranteed and non-guaranteed benefits?

1. KYC documents

2. Benefit illustration documents

3. Fact-finding sheet

4. Financial details

Under which one of the following acts the maximum remuneration that can be given to insurance agents described?

1. Income Tax Act

2. Indian Contract Act

3. Insurance Act 1938

4. IRDA Act 1999

Which one of the following is not a benefit of persistency?

1. Helps the client in achieving goals

2. Reduction in costs

3. Increased client satisfaction

4. Decreased revenues

Satish as an insurance advisor while recommending to his client Ramesh is not suitable policies –

1. Satish should check the Ramesh ‘s commitment to the needs

2. Satish should outline the reasons for recommendation for a particular policy

3. Satish should check the acceptance or rejection of the recommendation.

4. Should advised him to surrender all the polices which are not buy from satish.

Why a building long term relationship with clients is necessary?

1. A satisfied client may be the source of other potential clients

2. Reviewing financial needs and plans are necessary with changes

3. Agent has the option to recommending highest commission at any time.

4. Introduction of a new insurance product or a change in a client’s Circumstance

Pranab is not able to pay premium for continue his policy due to some Financial problem, so he rather than surrendering the policy, what Option he has to convert ……….?

1. In to paid up and reduced Sum Assured would be payable on maturity.

2.Return of Premium on maturity

3. Deduct the underpaid premium from Sum assured and payable on Maturity

4. Policy was subject to lien.

Ajay has bought an endowment with profit plan for 20 year .if he took a Loan after 5th of commencement of policy and died before 2 year of Maturity .what would be payable on maturity?

1. only Sum assured

2.Sum Assured + Bonus

3. Sum assured plus vested bonus minus any outstanding loan/premium & Interest.

4. Paid up value only.

Under what kind of Rider the insurance company pays the treatment cost in the event of hospitalization of the insured, subject to term & Condition of the rider.

1. Accidental death benefit (ADB)

2. Critical illness (CI)

3. Hospital Care (HC)

4. Term Rider.

Which one of the following report is not considered in case of Pankaj Bought a plan in 2009 & died in road accident in 2011 :

1. Policy first information report.

2. Advisor confidential report

3. Post Mortem Report.

4.Coroners Report

Married Woman’s Property Act 1874 provides that a life insurance Policy that has been taken out by:

1. Married Woman

2. Married Man

3. Married Son

4. Married Daughter

The face of the life Insurance industry in India is ………..?

1. Life Insurance Council

2. Life Insurance Corporation

3. Insurance Regulatory Development Authority

4.Insurance Institute of India

How Many offices of Ombudsmen the Government body has set up to Resolving insured customer’s grievances.

1.15

2.12

3.14

4.16

For Insurance industry which association to take steps to Develop Education and research in insurance?

1. Life Insurance Council

2. Life Insurance Corporation

3. Insurance institute of India

4. Insurance Institute of India

Pankaj being a license insurance advisor has to follow code of Conduct provided by:

1. Insurance Regulatory Development Authority

2. Life Insurance Company

3. Reserve Bank of India

4. SEBI.

Which is the body who provides grant to Insurance Regulatory Develompent Authoruty to carry out activites.

RBI

LIC

Central Government

SEBI

While applying for a policy unintentionally Mr.X forgot to disclose that he consumes alcohol,In cotext with Utmost good faith This will be treated as

Non Disclosure

Misrepresentaion

Breach of Trust

Concealment

An underwriter accepts the proposal with certain modified terms and coditions,What it denotes

Lien

Counter offer

Decline

Postpontment

Ram has set a provision for contigency which can survive for 6 month .This amount is considered as

Adequate

Inadequate

too low

too high

XYZ client wants to buy a car in future , however his financial planning shows that he cannot afford car as of now .As a financial planner you should

Explain him difference between real need & perceived

Explain him difference between financial & non financial need

Explain him difference between important & unimportant need

Explain him difference between short term & long term need

After fact finding , Ram has presented the product to the client in te second meeting . If client approves the recommendation what should be the next xtep

Ask the client to sign the contract of relationship

Check the client's commitment to the need & continue with process

Should take some more time to conclude the sale

Should close the discussion then & there

Sanjeev in a lumsum investment is getting benefit of multiple securities

Bonds

Fixed Deposit

Mutual Fund

KVP

The risk of unemployment is covered with what benefit in the policy

Rider

Continouation

Subsidiary

discount

Insurer has deducted Rs 3000 from the death claim of Ram. What could be the reason for deduction when all the due premiums were paid

Paid up option

Lien

Commutation

Loan Facility

Prospectus of an endowment plan should differentiate in types of benefits

Exception & exclusion

Maturity & death benefit

Gauranteed & Non-gauranteed benefits

None of theabove

In case of term plan the premium for CI rider shall not exceed

0.25

0.5

0.75

1

License criteria,crimnal offence in the past.given IRDA license.Why?

he was less than 21 at that time

offence had a punishment of less that 2000

atleast 5 yrs hav passed since the sentence

exception

In Surgical benfit rider what would be the payout procedure

Per day Hospital Cash Benefit Respective to the surgery made

Per day Hospital Cash Benefit irrespective to the surgery made

Will get lumsum benefit respective to surgery have been made

Irrespective to the sugery

A Critical Illness claim is settled in a policy. The benefits of the policy can be used for

Only for Illness

For Repairing house

Only For Doctors fees

Not specified

If the client prefers bank fixed deposit rather than cumulative deposit ,due to what implication ?

Investment Frequency

Interest Rate

Look in period

Taxation

In case of lien,the risk will classified as per underwriting standards

better than average risk,at the early stage of life

better than the average risk ,at the later stage of the life

Higher than the average risk,at the early stage

Higher than the average risk at the later stage of life

which of the following is the final stage of fact finding with the client?

Discuss with proposer about future life prospects and changes

Completion of Proposal form

Recommending Solutions

Coming to mutual agreement with objective for Solutions

Sarath is the client and looking for large SA, and the proposal to be certified in the context of confidentiality report with relavent to moral hazard,who is concerned person to do!

ACR

Sarath nominee

Superior of the Sarth's insurance agent

Insurance company

As per agents code of conduct,Agent Recommends protection Plan,but the client insist on investment plan for the financial planning,what an agent should do!

Recommend both the plans

Propose an investment plan and discuss with him regard to discomfort of term plan

Refuse to act with client

Report to the senior and seek his Guidance

Which is suitable life stage to buy Unit linked insurance plan?

Young Married with no children and Single income family

Young Married with no children and Double income family

Young Married with children and Single income family

Young Married with children and Double income family

Insurers observe high persistency ratio,then

policy reserve increases

Reserve decreases

Remains constant

Surplus decreases

Two policy Matures at the same time for an insurance company,what are the other requirment for maturity with respect to policy.A is absolute assignment and B is conditional assignment.pending requirment in relation with B

A loan and interest is outstanding

A loan amount and oustanding premium is pending

A outstanding premium is pending

A sign on discharge form

If a person have motoring sport as hobby before taking insurance policy,then what it implicates

Moral hazard is Sport and it influence the risk of life

motoring sport is risk and influences moral hazard

motoring sport is risk and influences physical hazard

motoring sport is a physical hazard and it influences risk

Agent has to comply the code of conduct prescibed by

Insurance institue of India

IRDA

National Insurance Academy

Insurance Compliance Dept