Which is not an appropriate reason for a proper financial planning?
A. Break-up of joint family system
B. Changing lifestyle
C. Underwriting
D. Change in behavioral pattern
Select an option to see the answer and solution.
When is the right time to start financial planning?
A. Young age
B. Middle age
C. Advanced age
D. First salary
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Which facility is given to the policyholder to neutralise the bargaining power in adhesion contracts?
A. Surrender
B. Loan
C. Assignment
D. Free look period
Select an option to see the answer and solution.
Which of the following defines a proposal form?
A. IRDA Act, 1999
B. IRDA (Licensing of Agents) Regulations, 2000
C. Insurance Act, 1938
D. IRDA (Protection of Policyholders' Interests) Regulations, 2002
Select an option to see the answer and solution.
What are the two distinct phases of a deferred annuity?
A. Waiting and Starting phases
B. Loading and Unloading phases
C. Accumulation and Payout phases
D. Commutation and Continuation phases
Select an option to see the answer and solution.
Who bears the investment risk in a fixed benefit annuity?
A. Insurer
B. Insured
C. State
D. Risk pool
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Which of the following statements is true?
A. Life insurance policies are contracts of indemnity, while general insurance policies are contracts of assurance
B. Life insurance policies are contracts of assurance, while general insurance policies are contracts of indemnity
C. In case of general insurance, the risk event protected against is certain
D. The certainty of risk event in case of general insurance increases with time
Select an option to see the answer and solution.
Which of the following statements is incorrect?
A. Ombudsman is appointed by the Central Government under powers of the Insurance Act 38 and under Redressal of Public Grievance Rules 1998
B. The recommendations of the Ombudsman are always binding on the insured
C. The Ombudsman can act as a mediator by mutual agreement between the insurer and the insured
D. If mediated, the decision of the Ombudsman is final whether to accept or reject the complaint
Select an option to see the answer and solution.
State the correct option.
A. In a policy document, it is now compulsory to indicate the address of the local Ombudsman
B. Address of the insured is optional in the policy document
C. The address of the IRDA is also necessarily shown in the policy document
D. Either the local Ombudsman's address or that of the IRDA needs to be shown in the policy
Select an option to see the answer and solution.
Before the composite licence could be renewed, the applicant needs to undergo renewal training of _________ from an approved institution.
A. 25 hours
B. 50 hours
C. 35 hours
D. 75 hours
Select an option to see the answer and solution.
IRDA has prescribed the design and content of a proposal form through
A. IRDA (Licensing of Agents) Regulations, 2000
B. IRDA (Protection of Policyholders' Interests) Regulations, 2002
C. IRDA (Standard Proposal Form for Insurance) Regulations, 2013
D. All of the above
Select an option to see the answer and solution.
A policy taken with critical illness rider benefit is being assigned. Which type of assignment would suit the intended purpose because if the life insured is diagnosed with a critical illness, he only should receive the critical illness rider claim?
A. Absolute assignment
B. Conditional assignment
C. Loan assignment
D. Collateral assignment
Select an option to see the answer and solution.
The measures to reduce chances of occurrence of risk are known as _________.
A. Risk retention
B. Loss prevention
C. Risk transfer
D. Risk avoidance
Select an option to see the answer and solution.
By transferring risk to insurer, it becomes possible _________.
A. To become careless about our assets
B. To make money from insurance in the event of a loss
C. To ignore the potential risks facing our assets
D. To enjoy peace of mind and plan one’s business more effectively
Select an option to see the answer and solution.
Origins of modern insurance business can be traced to _________.
A. Bottomry
B. Lloyds
C. Rhodes
D. Malhotra Committee
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Which of the following statement is true?
A. Insurance protects the asset
B. Insurance prevents its loss
C. Insurance reduces possibilities of loss
D. Insurance pays when there is loss of asset
Select an option to see the answer and solution.
Which of the following statements is true?
A. Insurance is a method of sharing the losses of a ‘few’ by ‘many’
B. Insurance is a method of transferring the risk of an individual to another individual
C. Insurance is a method of sharing the losses of a ‘many’ by a few
D. Insurance is a method of transferring the gains of a few to the many
Select an option to see the answer and solution.
Which of the below option best describes the process of insurance?
A. Sharing the losses of many by a few
B. Sharing the losses of few by many
C. One sharing the losses of few
D. Sharing of losses through subsidy
Select an option to see the answer and solution.
Who devised the concept of HLV?
A. Dr. Martin Luther King
B. Warren Buffet
C. Prof. Hubener
D. George Soros
Select an option to see the answer and solution.
Which one of the following statements is correct?
A. People hesitate to buy life insurance because they are not aware of their needs
B. People hesitate to buy life insurance because they prefer to enjoy the present
C. Both the statements are correct
D. Both the statements are wrong
Select an option to see the answer and solution.