RAP Exam Demo Test 8

A proposal of life insurance is not accepted in the absence of Insurable interest which mainly depends on the

blood relation between the Proposer and the Life assured

Proximity of relationship between the Proposal and the Life assured

Financial relationship between the Proposer and the Life assured

Emotional relationship between the Proposer and the Life assured

What role an agent is likely to play in the process of underwriting?

To see that the proposal is accepted by the underwriter at OR

To ensure that his client is not burdened with extra premium

To give truthful report to the Insurer all about the life to be insured

To see that the plan as proposed by the client is not changed on underwriting

In insurance, HLV is a known abbreviated term. How the meaning of HLV can best be described in relation to a income earning proposer?

Sum assured is the HLV of the proposer

Yearly income is the HLV of the proposer

Difference between the Assets and Liabilities is the HLV of the proposer

Present value of the future earnings less personal expenses is the HLV of the proposer

The basic elements of life insurance are:

Accident benefit and riders.

Pension and monthly income.

Death cover and maturity benefit.

Interest yield and variable income

Pick the wrong answer. In a child plan:

Deferred date is a policy anniversary.

On vesting date policy has to be assigned to the life assured.

After vesting the contract is between the insurer and the life assured.

Deferred date is date on which the risk commences.

There is a relation between Age, Risk and Risk appetite. Which relation is most likely to be acceptable?

Age increases, Risk increases and the Risk appetite increases

Age increases, Risk increases and the Risk appetite decreases

Age increases, Risk decreases and the Risk appetite increases

Age increases, Risk decreases and the Risk appetite decreases

Regular savings creates a fund to meet adverse incidents in future. For drawing a financial plan for savings needs of an individual without capital, what is the Fund which comes first?

Retirement fund

Emergency fund

Fund for untimely death

Education Fund

A Proposer asks for double death benefit in an Endowment assurance plan for 15 years. How his proposal will suitably be dealt with?

By offering another Endowment assurance plan

By addition of Accident Benefit rider to the proposed Endowment assurance plan

By addition of Term assurance rider to the proposed Endowment assurance plan

By addition of Premium waiver rider to the proposed Endowment assurance plan

In a Health insurance plan what the particular feature is likely to cause the Insurer to decrease the Renewal premium?

Cashless facility

Exclusion

No claim bonus

Waiting period

Out of all the factors that affect the needs of different life stages of an individual, which is the most common factor that is likely to exist throughout the life span of an individual?

Employment

Age

Marital Status

Liability

A provision for superannuation is normally taken a high need to

a Public sector employee

an unmarried young

A self-employed person

A Government employee

Financial planning may not be taken as complete till inclusion of the predictable needs of the clients. It is likely to emerge from the incident of

Disability

Unemployment

Sickness

Education

Which one is not an asset

House

House loan

Investment in shares and mutual fund

All of them

Transactions of sale of life insurance products to the insurable clients are viewed in the Insurance market mostly as

Sales transactions

Relationship transactions

Monetary transactions

Assured transactions

Which Act or Regulation provides that the Renewal commission is payable to the legal heirs of the Insurance agent in case of his death?

IRDA Act,1999

IRDA Regulations, 2000

Insurance Act,1938

Indian Contract Act,1872

Ranjan took out a 20 years Money Back plan on his own life 5 years ago. Survival benefit was due on 4.5.2011. Ranjan died on 6.5.2011 without receiving the survival benefit amount. What will be the legitimate procedure to pay out the claim?

Survival claim will not be paid and only death claim will be paid to the Nominee

Both the survival claim and the death claim will be paid to the Nominee

Survival claim will be paid to the Legal heirs and the death claim to the Nominee

Bothe claims will be paid to the Legal heirs

A life assured died after 40 days from the payment of his monthly premium. If there be any claim, how the claim will normally be dealt with?

A regret letter will go intimating that nothing is payable as death claim

Full sum assured will be paid as death claim

Paid up value, if any, will be paid as death claim

Full sum assured less deduction of unpaid premium will be paid

Agent offering rebate may be fined

Rs. 300

Rs500

Rs 1000

Any of them

In MWP Act Policy, claim is paid to

Nominee

Assignee

Trustee

Policy holder

If an Insurance agent is found guilty of breach of trust, he will be disqualified to act as an insurance agent. The disqualification stands valid

for life

for 10 years from the date of disqualification

for 7 year from the date of judgment

for 5 years since completion of the sentence imposed

Central govt has authority of Direction to IRDA on

Policy matter

To present statement of IRDA act in Parliament

May issue notification

All of them.

It is the bounden duty of the Insurers to protect the interests of their policyholders from proposal acceptance to claim payment because of the

Behavioral requirements of E-Governance

Market competition

Requirements of the Life Insurance Council

Regulations of IRDA

For redress of grievances of the policyholders, a number of Authorities have been formed. Which of the Following authorities has been empowered to hear the complaints and adjudicate?

Insurance Ombudsman

Consumer Grievance Redress Forum

Consumer Affairs department

IRDA

In the context of IRDA’s code of conduct, the term Ethical behavior can be best described as

a behavior that is based upon the positive judgment of an individual

a behavior that is based upon the legal judgment of an individual

a behavior that is based upon the ritual judgment of an individual

a behavior that is based upon the moral judgment of an individual

An agent offered his client that 75% of the first premium will be paid by him out of commission. This offer of rebate on premium will be treated as

a kind of gift for purchasing insurance products

a rebate on the price amount like other sales

a breach of IRDA’s code of conduct

a breach of a provision of the Insurance Act,1938

Principle of utmost good faith is expected for max up to which stage

Before the contract is concluded

NA

A nomination is not required if

Policy is taken under joint life basis

NA

Bank savings account earn cumulative interest at what frequency

Monthly

NA

A person has 6 months of emergency funds.This is:

Reasonable

NA

If I invest in a G sec partway(ignore periodic interest payments).I will get on Maturity

Prinipal amount

NA

Daily hospitalisation benefit:

No of days spent in hospital multiplied by Daily hospitalisation benefit

NA

ADB rider premium cannot exceed

30% of the base premium

NA

An agent does 6 lacs of new business premium /Income in a year. He is a composite agent. What is the maximum Premium/Income he can earn from 1 insurer?

NA

Persistency can be improved by:

Providing service to the clients

NA

IIRM is in areas of education and

Research

NA

While calculating HLV along with future income, no of years of work, increments in salary what is also to be taken in to account?

1. Inflation.

2. Interest.

3. Discount rate

4. Compounding.

Which of the following falls under voidable contract?

1. Misrepresentation

2. Lack of insurable interest

3. Fraud

4. None of the above

Customer has opted for a 5 yrs guaranteed annuity option. What will happen to annuity, if the customer survives for 5 years after the end of guarantee period?

1. paid up to 75 Yrs

2. annuity will be continued for next 5 Years

3. till he die

4. not remembered

After maturity In a Unit Linked Life Insurance Policy, customer does not get received Maturity in a lump sum. What is the possibility of receiving it in installments if it is not a annuity plan

1. He has switched his fund

2. He has opted for Settlement option

3. He has he has redirected his past premium.

4. Policy was lapsed on the time of maturity

Anand received post taxation 5% return on his fixed deposit in a bank. If his net return is 3%, what can be the reason

1. Administrative charge

2. Inflation

3. Interest rate

4. Market Risk

During Fact finding, rating is mentioned ‘3’. This Indicates

1. Risk apatite of client

2. His future aspiration

3. Commitment to need

4. Willingness to pay

Incase of presumption of death

1. Not necessary to pay premium until court decree

2. Necessary to pay premium until court decree

3. Claim not admissible

4. Depends on case to case

Which tax rate is applicable, in case of Client pays the premium of 5000/- and suffers illness before maturity?

1. Nil

2. 10%

3. 20%

4. 30%

Pooling of insurance applies to

1. all types insurance

2. All types of insurance except Motor insurance

3. Only life insurance

4. Only Non-life insurance

During financial planning session if the agent finds out the following needs, which one should be given the top priority. Needs: Income protection, Childs education, marriage and emergency funds.

1. Childs education

2. Marriage

3. Emergency funds

4. Income protection

For assessing the risk of a group health insurance policy, which of the following information is the most critical

1. Group lifestyle

2. Employees

3. Age of the group

4. Medical history of group

The rider which is given by the Insurance company pays for the treatment costs in the event of hospitalization of the insured person is called

1. Critical Illness Rider

2. Hospitalization Care Rider

3. Accidental Benefit Rider

4. Surgical Care Rider

A Professional insurance market carries…..

1. Need – Based Selling

2. Product – Based Selling

3. Commission – Based Selling

4. Company – Based Selling.

Insurance Market divided into

1. Endowment and Money Back Insurance

2. Life and General (non-life) Insurance

3. Government and Private Insurance Markets

4. Health and Saving Insurance Markets

What is Bancassurance?

1. Giving insurance policies to Banks.

2. Selling insurance policies through Banks.

3. Giving guarantee to policies by Banks.

4. None of the above.