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1. IRDA Test Paper 2014
Q.:- What is the main objective of taking the life insurance policy?
Ans: - Protection
Q.:- Any assets, which are no longer suitable or are earning fewer returns than
expected, should be?
Ans: - Cashed in for investment into other assets.
Q.:- The business of insurance is connected with?
Ans: - Economic value of assets.
Q.:- The consequences of these risks which will affect specific individuals or local
communities in nature are called as?
Ans: - particular risk
Q.:- Pooling of insurance applies to?
Ans: - All Type insurance (Only life insurance, only non-life insurance)
Q.:- Both the parties to a contract must agree and understand the same thing and in the
same sense which is called
Ans: - Consensus ad idem.
Q.:- A contract exists between insurer and proposes when
Ans: - A proposal has been accepted by insurer.
Q.:- Appointer’s Role
Ans: - When nominee is minor
Q.:- Payment of premium and sum assured are laid down in
Ans: - Operative clause
Q.:- Which clause lays down the mutual obligation the parties regarding, payment of
premium by life assured & payment sum assured by?
Ans: - Operative clause
Q.:- Lien can be considered an alternative of which of the following
Ans: - Clause.
Q.:- What is the special report that is asked by the underwriter from the officer of the
insurer?
Ans: - Moral hazard report
Q.:- The responsibility for classification and analysis of proposal form lies with whom
Ans: - Underwriter

2. Q.:- In underwriting the economic value of the person is determined by what
Ans: - Human life value
Q.:- Mr. Kumar decides that is employees should have SSS scheme what type of plan
is SSS
Ans: - Not a specific plan
Q.:- In cumulative bank deposit the interest that in normally compounded on what
basis.
Ans: - Quarterly
Q.:- Anand received post taxation 5% return on his fixed deposit in bank if his net
return is 3%, what can be the reason
Ans: - Inflation
Q.:- Which is the primary saving need among all saving needs?
Ans: - Contingency/Emergency fund.
Q.:- Time deposit account is issued by
Ans: - Post Office
Q.:- All ULIP pension plans have to give how much percentage as guaranteed returns
Ans: - 4.50%
Q.:- How the Daily Hospitalization cash benefit will provide benefits to policyholder
who is hospitalized
Ans: - A fixed amount on a daily basis is paid irrespective of the actual cost of treatment.
Q.:- What are the benefits to the policyholder under surgical car rider?
Ans: - Treatment cost of surgery subject to term & Condition
Q.:- In a pension plan illustration what are the parts which shows the benefit for an
annuitant
Ans: - Guaranteed and non guaranteed part
Q.:- Open market option under annuity policy would extend which of the following
benefit
Ans: - Increase in the range
Q.:- Some health plans will give coverage for family member also we will call these
plans as
Ans: - Family floater health insurance plans
Q.:- Rohit is working as sales manager with an FMCG company. His job requires him
to travel across states. He is planning of covering his additional risk involved
while traveling and a saving plan. What suggestion would you give him as an
agent?

3. Ans: - To purchase an accidental rider with a saving insurance plan.
Q.:- To sale focus during a client’s fact find session was healthcare requirements and
estate planning.
Ans: - Retirement
Q.:- In which at the recognized life stages an individual does not require any
protection cover
Ans: - Childhood
Q.:- Ajay and Vijay both are unmarried. Ajay has dependant parent. Which need Ajay
must take care of on priority, although that will not be a priority for Vijay.
Ans: - Health insurance for parents
Q.:- Manish and Manisha is a married couple with one child. They want to plan for
savings, child education/marriage and their retirement and protection of income.
Which should be their lowest priority?
Ans: - Marriage
Q.:- A provision for superannuation is a normally taken a high need to
Ans: - a Self employed person
Q.:- During the recommendation stage the advisor needs to
Ans: - Recommend the products that best meet the client’s need
Q.:- Mr. Harsh an agent wants do a through fact finding for his client to Mr. Kishan
who is a business man. Which of the following information will be helpful to
know about the earnings and expense at kishan?
Ans: - Client’s profit and withdrawal’s from business
Q.:- Higher persistency to the insurer ensure what
Ans: - Higher profits
Q.:- Persistency has increased from 82% in previous year to 86% this year that means
Ans: - Less Lapsation
Q.:- When should an agent disclose the commission which he will earn from the
product which he is going to sell?
Ans: - When the customer asks him
Q.:- Which one of the following factors does not help in the persistency
Ans: - Dispatching discharge voucher to the customer
Q.:- While on sales of an insurance plan Mr…. Had to show his license
Ans: - The customer demanded

4. Q.:- Which one of the following reports in not considered in case of pankaj bought a
plan in 2009 & died in road accident in 2011.
Ans: - advisor confidential report
Q.:- In the case of agent’s death, the commission payable will be paid to
Ans: - His legal heirs
Q.:- Which one of the section deals with the licensing of an agent
Ans: - Section 42 of the insurance act 1938
Q.:- Under married women’s property act, 1874 a policyholder is
Ans: - the trustee
Q.:- Married women’s property act 19874 provides that a life insurance policy that has
been taken out by
Ans: - Married man
Q.:- What is the role of National insurance Academy?
Ans: - To undertake training activities
Q.:- De-tarrification is a process by which pricing of insurance
Ans: - insurers can price their product on their self past experiences
Q.:- As per IRDA regulations IGMS Should be mandatory setup by
Ans: - By all insurers
Q.:- Generally insurance companies do not hold the premium in case of a fraud or
misrepresentation. However, due to which of the following circumstances by
insurer can retain the premium the policyholder
Ans: - Indisputability clause
Q.:- A policy holder is not satisfied with the services at the insurer and complains to
ombudsman. In how many days from receipt of the complaint the ombudsman
should pass the recommendation
Ans: - 1 month
Q.:- Ravi was expecting a claim amount of Rs. 12, 00,000 from insurer but it was
rejected. He feels that it is repudiated on wrong reasons. Which consumer forum
can be approach?
Ans: - District level
Q.:- If any consumer is dissatisfied with the customer care cell of any insurance
company to whom they can escalate their grievances
Ans: - Nodal Officer

5. Q.:- With this type of deposit the bank pays the principal and the total interest at the
end of the term.
Ans.:- Cumulative deposits
Q.:- The premium on all riders put together should not exceed.
Ans.:- 30% of the premium on the base policy.
Q.:- How riders will help the customer in life insurance
Ans.:- Allow policyholder to customize their insurance cover with accidental benefits
Q.:- In daily hospitalization cash benefit scheme
Ans.:- The insurance company may pay an additional amount on a daily basis if the
insured is admitted to the intensive care unit (ICU).
Q.:- A lump sum withdrawal allowed as commutation in pension plan is.
Ans.:- 1/3 of the accumulation fund
Q.:- Customer has opted for a 5 year guaranteed annuity option. What will happen to
annuity, if the customer survives for 5 years after the end of guarantee period?
Ans.:- Till he die
Q.:- In term insurance if critical illness rider claim happens then what will happen to
existing policy.
Ans.:- CI benefits will case
Q.:- What is the main objective of taking the life insurance policy?
Ans:-. Protection
Q.:- Group insurance can be taken in following relationship
Ans.:- Employee- Employer
Q.:- If a person consuming alcohol- what is the type of Hazard
Ans.:- Moral
Q.:- Life Insurance is the most important for which age group
Ans.:- Pre- retirement
Q.:- How are perils and hazards normally distinguished under therm insurance
policies?
Ans.:- Perils are risk that policyholders will die before a specified date and hazards are
factors which could influence that risk.
Q.:- Where one can approach in case of dispute
Ans.:- Consumer forum

6. Q.:- The regulations issued by the IRDA, require that the decision on the proposer
must be conveyed to the proposer within
Ans.:- 15 days of receiving the proposal
Q.:- According to IRDA guidelines, how long does an insurance company have to
complete its investigation of claim?
Ans.:- 180 days
Q.:- Who is the regulator supervisor and monetary authority of the financial system in
India?
Ans.:- RBI
Q.:- Indisputability clause can be enforced by the insurance company during the
Ans.:- First two years of policy
Q.:- To ensure that the premiums are paid out of a legitimate source at funds cash is
accepted
Ans.:- Up to 50,000
Q.:- If there is no claim in a year then what will be the benefit to the customer as no
clam BOUNS
Ans.:- Discount in next year premium
Q.:- Maximum time for investigation in disputed claim
Ans.:- 3 months
Q.:- The Ombudsman’s powers are restricted to insurance contracts of value not
exceeding
Ans.:- 20Lakhs
Q.:- In which section of policy document, information about the location at insurance
Ombudsman had written
Ans.:- Information statement
Q.:- The premium for accidental death benefit rider must not exceed
Ans.:- 30% of base policy premium
Q.:- If the annual premium for a plan is 32000 and a frequency loading at 4% is added
in a quarterly premium what is the amount that needs to be paid
Ans.:- 8320
Q.:- What amount of insurable interest does an individual have in his own life
And.:- Unlimited
Q.:- Ombudsman passes an award within which time
Ans.:- 3 months

7. Q.:- If the license of an agent has been disqualified by a designated authority in 2010
then the person can apply for a license in which year
Ans.:- 2015
Q.:- Under the hospital care rider what is the payout mode.
Ans.:- Specified amount multiplied by the number at days the policyholder is
hospitalized.
Q.:- If the agent recommends the client to terminate an endowment plan and take a
whole life in order to earn higher commission it’s termed as
Ans.:- Churning
Q.:- M.r Samad has taken a G-Sec and has parted with it mid way as he required the
money with the intention at not getting the interest what will he get
Ans.:- Discounted value
Q.:- If bonus is given under a plan the additional premium added is known as
Ans.:- Loading
Q.:- Nomination can be in favor of how may people
Ans.:- It can be any number
Q.:- Mr. Balaji is suffering from Asthma and the policy in been done on joint life
basis and the need for nomination under the plan is less as
Ans.:- Joint life policy
Q.:- What key impact will the agent have in low persistency?
Ans.:- Will have impact in his commission
Q.:- Within how many days will the underwriter needs to inform the policyholder
regarding the status at the policy.
Ans.:- 15 days
Q.:- Certificate from the village panchayat
Ans.:- Will be considered as non standard age proof
Q.:- Varun wishes to pursue a career in insurance and wishes to be in a department
which calculates the level of premium. In which department should he join.
Ans.:- Actuary
Q.:- Aswin is looking at different plans of insurance for protection at the lowest
premium. Which is the best plan for him?
Ans.:- Term plan
Q.:- The insurance act of 1938 created which of these
Ans.:- Traiff Advisory Committee

8. Q.:- Kalyan is an illiterate person and his proposal form was filled by simaran, then
what is the additional requirement to be taken along with the documents
Ans.:- Thumb impression of kalian has to be taken
Q.:- Harsh’s policy matured, however he was paid only 25% of the sum insured in
spite at all his premiums been paid on time . This indicates that his policy is a
Ans.:- Money back plan
Q.:- The Authority at COPA is limited to what amount at the district level
Ans.:- 20, 00,000
Q.:- If a person is concentrating more on health plan and retirement plan then at
which stage at life is he in
Ans.:- Pre Retirement
Q.:- The Institute of Insurance and Risk Management along with insurance education
does what more
Ans.:- Research
Q.:- If the client does not wish to proceed with the recommendations right at the
moment the agent should
Ans.:- should ask for the reason for not going with the recommendation
Q.:- A claim was paid in a policy and it was advertised in the newspaper also. This
indicates that the policy was
Ans.:- It was lost
Q.:- An indemnity bond was signed in a policy when the claim was paid. This
indicates that the policy was
Ans.:- It was lost
Q.:- Payment of premium and sum assured are laid down in
Ans.:- Operative clause
Q.:- What is the role of National Insurance Academy?
Ans.:- To undertake training activities
Q.:- Which is the primary saving need among all saving needs?
Ans.:- Contingency/Emergency fund
Q.:- Sanjeev is an insurance expert who has rich experience in determining premium
levels for product, what is his profile like
Ans.:- Any actuary
Q: - The Non Government Organizations (NGO) helps the insurance industry
immensely in

9. Ans.:- Linking Buyers & Sellers
Q.:- Investment by foreign direct investors in to insurance co’s is restricted to
Ans.:- 26%
Q.:- Which market does the Micro Insurance Concentrate on?
Ans.:- People with low income
Q.:- What is the similarity between Recurring Deposits & Cumulative deposits
in a bank?
Ans.:- Guarantees
Q.:- What facility do the insurers use to cover Risk beyond their Limits?
Ans.:- Re Insurance
Q.:- Lung cancer and smoking.
Ans.:- Lung cancer is peril and smoking is moral hazard
Q.:- The type of risk that can be insured against is
Ans.:- Pure Risk
Q.:- Pooling of risk in insurance means
Ans.:- All similar risk are pooled together
Q.:- Pure risk is classified under
Ans.:- Insurable risk
Q.:- The consequences of these risks which will affect specific individuals or
local communities in nature is called as
Ans.:- Particular risk
Q.:- Harish takes a life insurance policy for Rames. Which of the following
statement best describes the principle of insurable interest.
Ans.:- Harish suffers financial loss incese of death of Ramensh
Q.:- What is the min age to enter into the contract of insurance?
Ans.:- 18
Q.:- In a whole life plan- The policyholder’s responsibility to give disclosure
Ans.:- At the beginning of the contract
Q.:- Principle of utmost good faith will operate in existing policy
Ans.:- If the policy has lapsed and it has to be revived
Q.:- Both the parties to a contract must agree and understand the same thing
and in the same sense which is called

10. Ans.:- Consensus ad idem
Q.:- Types of assignment
Ans.:- Absolute & Conditional
Q.:- Why does an insurer insist on age proof document? To assess
Ans.:- Risk Assessment
Q.:- Mr. A Submitted the proposal form. When will the risk begins for the
company?.
Ans.:- FPR issued
Q.:- The obligation of the insurer for the whole life policy is mentioned in
Ans.:- Operative Clause
Q.:- Asvath is illiterate. He wants to take policy ans surya is a friend of his
help him is answering questions and answers and also fills proposal. In
addition to this requirement is
Ans.:- Left thumb impression of asvath along with a declaration of his friend
Q.:- While calculating Human Life Value (HLV) two components need to be
kept in mind, the one is take home salary and other is
Ans.:- Bank fixed deposit rate
Q.:- Annual premium of insurance product is Rs.32, 000, 4% loading on
Quarterly mode of payment what is the quarterly premium?
Ans.:- 8320
Q.:- Why ACR
Ans.:- To help the underwriter to asses the Risk
Q.:- In a 20 year with profit policy, persist ency Bonus is paid at the end of
Ans.:- 20th
year
Q.:- Hari Wants a constant life cover till his 31 st birthday. But he cant afford
to pay high premiums. The best suited products for him would be
Ans.:- Term Plan
Q.:- At the time of maturity, quarter of the SA is paid though the policy was in
force
Ans.:- Money back
Q.:- Weekly premiums are generally collected for which type/range of plans
Ans.:- Micro Insurance

11. Q.:- Mr. A is planning to invest and his needs ar : 1 Protection for is Income,
during his absence2. Children education
Ans.:- Ulip Plan
Q.:- What tax rate, if any, will be applicable to a life insurance policy holder
for the maturity proceeds of a Rs 5000 life insurance policy
Ans.:- Nil
Q.:- The best way to overcome the problem of investment decision depends
mainly on peer influence is
Ans.:- Seeking Professional Advice
Q.:- A person who has a temporary job Loss, where should he look for
investing other than FD
Ans.:- Debt Funds of MF
Q.:- RBI increased interest rates 2 times then the stock prices
Ans.:- decrease
Q.:- A person wants to invest in a FD for Tax benefit, how many years he has
to take the term of the FD?
Ans.:- 5 year
Q.:- Aditya wants to take home loan and his monthly take home is 80,000
what as a best practices should be the maximum EMI
Ans.:- 32,000
Q.:- Omkar Started a pension policy with provider a but ended up in taking the
annuity payment from provider B. The result directly reflect the which
feature available with this policy
Ans.:- Open Market Option
Q.:- What frequencies can one take annuity?
Ans.:- Monthly, Quarterly, Half Yearly
Q.:- All Ulip Pension Plans have to give how much percentage as guaranteed
returns
Ans.:- 4.50%
Q.:- Yash wants to take open market option in pension plan. What is the
benefit?.
Ans.:- For improved annuity rate
Q.:- Commutation option allows the annuity policy holder to with draw
Ans.:- 33%

12. Q.:- Why do self employed individual have the need to buy Medical Insurance
rather than People working in public Sectors.
Ans.:- Public sector employees enjoy Medical Insurance Covers Related to job
Q.:- Mohit has two kids, one of 6 years and other 8 years. He is the earning
member and not having life cover. Before advising him to take health
policy, what he should be advised?
Ans.:- Life Insurance Policy for himself
Q.:- Manoj a 26 year old is having 7 years old son, what will happen to his
monthly disposable income after 15 years of job
Ans.:- significantly increase
Q.:- Samir is married and he has only one partner, with dependant parents and
no child, which should be his priority
Ans:-. Income protection
Q.:- The sole focus during a client’s fact-find session was healthcare
requirements and estate planning. Which main life stage is he most likely
to fall into?
Ans.:- Retirement
Q.:- Objective of fact finding
Ans.:- Client needs analysis
Q.:- Fact finding sheet allows the agent to
Ans.:- Analyze customer needs
Q.:- Mr. A has approached by the Agent and on fact finding the score is 3, this
represents
Ans. Moderate Risk Taking
Q.:- To ensure that the premiums are paid out of a legitimate source of funds
cash is accepted
Ans.:- Up to Rs 50000
Q.:- With effect from 1st
July 2010 all insurers have to disclose in the benefit
illustration document the.
Ans.:- Commission Pay to their agents.