1. English IC33 Chapter 1 MockTest Question 1 Risk transfer
through risk pooling is called _________ A Savings B Investments C
Insurance D Risk mitigation Question 2 Which of the below insurance
scheme is run by an insurer and not sponsored by the Government? A
Employees State Insurance Corporation B Crop Insurance Scheme C Jan
Arogya
2. D All of the above Question 3 Origins of modern insurance
business can be traced to _________ A Botta mry B Lloyds C Rhodes D
Malhotra Committee Question 4 When was Lic formed? A 1956 B 1999 C
1976 D 2000
3. Question 5 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 Question 6 Which of the below is not an
advantage of cash value insurance contracts? A Safe and secure
investment B Inculcates saving discipline
4. C Lower yields D Income tax advantages Question 7 How many
life insurance companies are operating in India currently ? A 26 B
23 C 20 D 24 Question 8 Which among the following is a secondary
burden of risk? A Business interruption cost B Goods damaged
cost
5. C Setting aside reserves as a provision for meeting
potential losses in the future D Hospitalisation costs as a result
of heart attack Question 9 Which is the first life insurance
company in the world? A Lloyds Coffee House B Bombay Mutual
Assurance Society Ltd C Amicable Society for a perpetual Assurance
D National Insurance Company Limited Question 10 Two types of risk
burdens that one carries are _________ A Primary Burden of risk and
Secondry Burden of risk
6. B Conditional Burden of Risk and Unconditional Burden of
Risk C Positive Burden of Risk and Negative Burden of Risk D All
the Above Question 11 Who devised the concept of HLV? A Dr. Martin
Luther King B Warren Buffet C Prof hlubener D George Soros Question
12 Which of the below is not an element of the life insurance
business?
7. A Asset B Risk C Principle of mutuality D Subsidy Question
13 Nationionalisation of Insurance was on _______________ A 1st
September 1956 B 1st December 1956 C 1 st October 1956 D 10th Sept
1956 Question 14 The Asset May Be A Physical
8. B Non Physical C Personal D All the Above Question 15 The
measures to reduce chances of occurrence of risk are known as
________ A Risk retention B Loss prevention C Risk transfer D Risk
avoidance Question 16 When an insurer enters into an Insurance
Contract with each person who seeks to participate in the Scheme.
Such a participant is known as _____________
9. A Insurer B Insured C Both a and b D None of the Above
Question 17 The first indian inurance company is ____________ A The
Oriental life Insurance Co.ltd B Bombay Mutual Assurance Society
Ltd C National Insurance Company Ltd D Triton Insurance o. Ltd
Question 18 Out of 400 houses, each valued at Rs. 20,000, on an
average 4 houses get burnt every year resulting in a combined loss
of Rs. 80,000. What should be the
10. annual contribution of each house owner to make good this
loss? A Rs.1 00/- B Rs.200/- C Rs80/- D Rs.4001- Question 19 How
does diversification reduce risks in financial markets? A
Collecting funds from multiple sources and investing them in one
place B Investing funds across various asset classes C Maintaining
time difference between investments D Investing in safe assets
11. Question 20 Collecting numerous individual contributions
From various People. These people have similar assets which are
exposed to similar risks. This process is known as _____________ A
Peril B Pooling C Risk D Asset Question 21 ____________ Refers to
protection against an event that will happen A Insurance B
Assurance C Micro fnsurance D Bancassurance
12. Question 22 The GIONA was Passed in A 1999 B 1956 C 1972 D
1993 Question 23 Which of the below is an advantage of cash value
insurance contracts? A Returns subject to corroding effect of
inflation B Low accumulation in earlier years C Lower yields D
Secure investment
13. Question 24 Which is one of the major forms of Risk
Transfer A Assurance B Fixed deposit C Insurance D Mutual Fund
Question 25 Which among the following is a method of risk transfer?
A Bank ED B Insurance C Equity shares D Real estate Question
26
14. 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 Question 27 Which of the below statement 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
15. D The certainty of risk event in case of general insurance
increases with time Question 28 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 Question 29 Which of the below
option best describes the process of insurance? A Sharing the
losses of many by a few
16. B Sharing the losses of few by many C One sharing the
losses of few D Sharing of losses through subsidy Question 30 In
insurance context 'risk retention' indicates a situation where
______ A Possibility of loss or damage is not there B Loss
producing event has no value C Property is covered by insurance D
One decides to bear the risk and its effects Question 31 Which of
the below cannot be categorised under risks? A Dying too young
17. B Dying too early C Natural wear and tear D Living with
disability Question 32 Which among the following cannot be termed
as an asset? A Car B Human Life C Air D House Question 33 Why do
insurers arrange for survey and inspection of the property before
acceptance of a risk? A To assess the risk for rating purposes
18. B To find out how the insured purchased the property C To
find out whether other insurers have also inspected the property D
To find out whether neighbouring property also can be insured
Question 34 Which of the below is the most appropriate explanation
for the fact that young people are charged lesser life insurance
premium as compared to old people? A Young people are mostly
dependant B Old people can afford to pay more C Mortality is
related to age D Mortality is inversely related to age
19. Question 35 Which among the following is the regulator for
the insurance industry in India? A Insurance Authority of India B
Insurance Regulatory and Development Authority C Life Insurance
Corporation of India D General Insurance Corporation of India
Question 36 Which among the following scenarios warrants insurance?
A The sale bread winner of a family might die untimely B A person
may lose his wallet C Stock prices may fall drastically D A house
may lose value due to natural wear and tear
20. Question 37 Which among the following methods is a
traditional method that can help determine the insurance needed by
an individual? A Separation B Risk Avoidance C Risk financing D
Risk Retension Question 38 ___________________ was the first
legislation enacted to regulate the conduct of insurance companies
in India A The Insurance Act 1938 B The Life lnsurnce companies Act
1938 C Provident Fund Act 1912
21. D The Insurance Act 2000 Question 39 Which of the below
mentioned insurance plans has the least or no amount of savings
element? A Term insurance plan B Endowment plan C Whole life plan D
Money back plan Question 40 What Should one consider before opting
for Insurance? A Don't risk a lot for little B Don't risk more than
what you can afford to loose C Consider the likely outcomes of the
risk carefully
22. D All the Above ==========================================
======================== English IC33 Chapter 2 MockTest Question 1
Premium collected in the early years of the insurance contract are
held in trust by the insurance company, this amount is known as A
Reserve B Corpus C Fund D Safe deposit Question 2 Which of the
following are the components of level premium A Cash value
element
23. B Term or protection component C Both of the above D Cash
reserve ratio Question 3 Which type of premium does not increase
with age but remains constant throughout the contract period? A
Single premium B Level Premium C Flexible Premium D Risk Premium
Question 4 Life Insurers are required to maintain_____________as a
condition for writing the business
24. A Goodwill B Marketshare C Statutory reserve D Credit notes
Question 5 Which Insurance plan provides only Death Benefit? A
Endowment plan B Money Back Plan C Term plan D Child Plan Question
6 Typical risks faced by people are A Dying to early B Living to
long
25. C Living with disability D All of the above Question 7
Mutality or the pooling principle plays which specific role in life
insurance A Provides protection against economic loss arising as a
result of one"s untimely death B Ensures a certain part of the fund
is diverted to social security C Provides guarantee of premiums
paid to the investors D None of the above
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English IC33 Chapter 3 MockTest
26. Question 1 In Fire Insurance if the proposer discloses the
following information at the time of insurance contract -1)
Construction of building & age, 2) nature of goods in building
premises. Then as per the insurance contract which information is
he disclosing______________ A Material Fact B Insurable Interest C
Proximate Clause D Contract of Adhesion Question 2 _____________
relates to inaccurate statements, which are made without any
fraudulent intention. A Misrepresentation B Contribution
27. C Offer D Representation Question 3 Deliberate concealment
of facts or misrepresentation of facts falls under which category
____________ A Fraud B Consideration C Capacity of the party D Free
Consent Question 4 Mr. Dsouza works in a factory. Unfortunately the
factory catches fire and Mr Dsouza is critically injured and after
spending few days in the hospital dies. What is the proximity cause
in this situation.
28. A Death B Sickness C Fire in Factory D None of the above
Question 5 Which among the following is an example of coercion? A
Ramesh signs a contract without having knowledge of the fine print
B Ramesh threatens to kill Mahesh if he does not sign the contract
C Ramesh uses his professional standing to get Mahesh to sign a
contract D Ramesh provides false information to get Mahesh to sign
a contract
29. Question 6 Predominant cause which sets into motion the
chain of events producing the loss is known as ___________ A
Contract Adhesion B Proximate Cause C Leagality D Utmost Good Faith
Question 7 The payment of money in an insurance contract is known
as___________ A Offer and acceptance B Consideration C Legality D
Capacity of the parties
30. Question 8 Which element of a valid contract deals with
premium? A Offer and acceptance B Consideration C Free consent D
Capacity of parties to contract Question 9 Which of the below is
not a valid consideration for a contract? A Money B Property C
Bribe D Jewellery
31. Question 10 In which of the following does Insurable
interest exist A Husband & Wife B Employer & Employee C
Business partners D All of the above Question 11 Free Consent
containt Mistake, Fraud, Misrepresentation, __________ and
___________ A Undue Influence B Correction C Both option D None of
the above
32. Question 12 Which of the below party is not eligible to
enter into a life insurance contract? A Business owner B Minor C
House wife D Government employee Question 13 Which of the below is
not correct with regards to insurable interest? A Father taking out
insurance policy on his son B Spouses taking out insurance on one
another C Friends taking out insurance on one another D Employer
taking out insurance on employees
33. Question 14 Which of the below action showcases the
principle of "Uberrima Fides"? A Lying about known medical
conditions on an insurance proposal form B Not revealing known
material facts on an insurance proposal form C Disclosing known
material facts on an insurance proposal form D Paying premium on
time Question 15 In a legal contract if pressure is applied on
either of the parties through criminal needs, it is known as A
Coercion B Fraud
34. C Undue Influence D Mistake Question 16 ______________
involves pressure applied through criminal means. A Fraud B Undue
influence C Coercion D Mistake Question 17 When is it essential for
insurable interest to be present in case of life insurance? A At
the time of taking out insurance B At the time of claim
35. C Insurable interest is not required in case of life
insurance D Either at time of policy purchase or at the time of
claim Question 18 Which among the following options cannot be
insured by Ramesh? A Ramesh's house B Ramesh's spouse C Ramesh's
friend D Ramesh's parents Question 19 In which of the following
insurable interest will not exist
36. A Mr Singh wants to take an insurance policy for his child
B Anita wants to take insurance policy for her friend C Anuj wants
to take an insurance policy for her wife D All of the above
Question 20 Find out the proximate cause for death in the following
scenario? Ajay falls off a horse and breaks his back. He lies there
in a pool of water and contracts pneumonia. He is admitted to the
hospital and dies because of pneumonia. A Pneumonia B Broken back C
Falling off a horse D Surgen
37. Question 21 Which among the following is true regarding
life insurance contracts? A They are verbal contracts not legally
enforceable B They are verbal which are legally enforceable C They
are contracts between two parties (insurer and insured) as per
requirements of Indian Contract Act, 1872 D They are similar to
wager contracts Question 22 Caveat Emptor relates to A Uberrima
Fides B Insurable Interest C Free Consent
38. D Capacity of the parties Question 23 Rajesh had taken life
insurance policy for Sum Assured of 50L for 20 yrs while returning
home he met with a road accident and died. His death claim was not
settled as he did not disclose his age correctly. This is known as
breach of ____________ A Consideration B Insurable Interest C Offer
and acceptance D Utmost Good Faith Question 24 Anthony has taken a
new car and immediately gets his car insured too. He is paying a
premium of Rs.4000 premium for car insurance. Unfortunately
39. his car meets with an accident and most of the parts are
broken.So that Anthony receives the insurance when should the
insurable interest exist A At time of Purchasing Ne.,n) Car B AT
time of Paying Premium C At the time of claim D None of the above
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English IC33 Chapter 4 MockTest Question 1 MR. Shelly wants to
purchase a new house. This is which category of goal? A Short Term
Gaol B Log term Goal C Medium Term Goal D Option 2& 3
40. Question 2 Which of the following is not a wealth
accumulation product ____________ A Real Estate B Fixed Deposit C
Share D High Yield Bond Question 3 Which among the following would
you recommend in order to seek protection against unforeseen
events? A Insurance B Transactional products like bank. FD's C
Shares
41. D Debentures Question 4 An individual with an aggressive
risk profile is likely to follow wealth __________ investment style
A Consolidation B Gifting C Accumulation D Spending Question 5
During which stage of life will an individual appreciate past
savings the most? A Post retirement B Earner C Learner
42. D Just married Question 6 Which among the following can be
categorised under contingency products? A Bank deposits B Life
insurance C Shares D Bonds Question 7 Phases of retirement planning
are __________ A Distribution, Accumulation B Conversation,
Accumulation C Conversation, Distribution D Accumula.tion,
Conservation, Distribution
43. Question 8 Which of the below can be categorised under
wealth accumulation products? A Bank deposits B Life insurance C
General insurance D Shares Question 9 ____________ are unforeseen
life events that may call for a large commitment of funds A U'LI P
B Wealth Acc.umulation C Diversification D Contingencies
44. Question 10 ____________ is a rise in the general level of
prices of goods and services in an economy over a period of time. A
Deflation B Inflation C Stagflation D Hyperinflation Question 11
Optimal method of converting principal (which we may call the
corpus )into annuity payments for meeting income needs post
retirement is known as ___________ A Distribution B
Accumulation
45. C Conversation D Estate Question 12 Which of the following
is not a part of investment parameters A Diversification B Time
Horizon C Retirement Planning D Risk Tolerance Question 13
____________ includes preparing of budget, analysing of expenses
and income flow and predicting the future monthly income &
expenses A Estate Planning
46. B Investment Planning C Retirement Planning D Cash Planning
Question 14 In progressive risk profile Investment style is
_____________ A Accumulation B Wealth Accumulation C Estate
Planning D Consolidation Question 15 _________________ planning
includes current need, future need, individual risk profile and
income to roadmap anticipated need
47. A Risk Tolerance B Estate Planning C Financial Planning D
Time Horizon Question 16 If a customer"s investment style falls
into spending then in which risk profile will he fall? A
Conservative B Secured C Progressive D Aggressive Question 17 Which
of the following are the elements of Financial Planning
____________
48. A Investment & Risk Management B Tax & Estate
Planning C Financial Cries need & Retirement Planning D All of
the above Question 18 A complete insurance planning includes
_________________ A Life Insurance B Health Insurance C Asset
Insurance D All of the above Question 19 Which is the prime cause
of financial distress in financial planning?
49. A Risk Tolerance B Unplanned C Time Horizon D Planned
Question 20 In which of the following option can the investor
spread the investment and reduce the risk A Time Horizon B
Marketability C Risk Tolerance D Diversification Question 21
50. Mr Kumar wants to transfer his property in the name of his
Son Vijay, this is known as _________ planning A Investment
Planning B Retirement Planning C Estate Planning D All of the above
Question 22 Which among the following is a wealth accumulation
product? A Bank Loans B Shares C Term Insurance Policy D Savings
Bank Account
51. Question 23 Savings can be considered as a composite of two
decisions. Choose them from the list below. A Risk retention and
reduced consumption B Gifting and accumulation C Spending and
accumulation D Postponement of consumption and parting with
liquidity Question 24 When is the best time to start financial
planning? A Post retirement B As soon as one gets his first salary
C After marriage D Only after one gets rich
52. Question 25 Which among the following can be categorised
under transactional products? A Bank deposits B Life insurance C
Shares D Bonds Question 26 Which among the following is not an
objective of tax planning? A Maximum tax benefit B Reduced tax
burden as a result of prudent investments C Tax evasion D Full
advantage of tax breaks
53. Question 27 Which of the below is not a strategy to
maximise discretionary income? A Debt restructuring B Loan transfer
C Investment restructuring D Insurance purchase Question 28 What is
the relation between investment horizon and returns? A Both are not
related at all B Greater the investment horizon the larger the
returns C Greater the investment horizon the smaller the
returns
54. D Greater the investment horizon more tax on the returns
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English IC33 Chapter 5 MockTest Question 1 Which of the below
statement is correct with regards to endowment assurance plan? A It
has a death benefit component only B It has a survival benefit
component only C It has both a death benefit as well as a survival
component D It is similar to a term plan Question 2 Life insurance
is a product that is ___________
55. A Tangible B Expensive C Intangible D Productive Question 3
What is the primary purpose of a life insurance product? A Tax
rebates B Safe investment avenue C Protection against the loss of
economic value of an individual's productive abilities D Wealth
accumulation Question 4
56. Mrs. Shailaja wishes to buy a product which will provide
her both a death and a survival benefit component. Which plan will
you suggest for her? A Endowment Assurance Plan B Term Assurance
Plan C Money Back Plan D Annuity Plan Question 5 Mr. Ankit Joshi is
looking out for a plan which will provide him a high insurance
coverage in low budget. Which plan would you suggest for him? A
Endowment Plan B ULIP C Term Insurance Plan. D Pure Endowment
Plan
57. Question 6 Which feature of term insurance allows a
policyholder to change or convert a term insurance policy into a
permanent plan without providing fresh evidence of insurablity? A
Changeable Term Insurance Policy B Decreasing Term Assurance Policy
C Increasing Term Assurance Policy D Convertability Question 7
Which insurance plan comes handy as an income replacement plan? A
Pure Endowment Plan B Term Insurance Plan C Health Plan D Whole
life plan
58. Question 8 ___________ is a plan of decreasing term
insurance designed to provide a death amount that corresponds to
the decreasing amount owned on a mortgage loan. A Loan Redemption
Plan B Cash Redemption Plan C Mortgage Redemption Plan D Credit
Redemption Plan Question 9 Policies which do not participate in the
profits are called as _______________ A Dividend Plans B
Non-Participating Plans C Non-Dividend Plans
59. D Non-Investment Plans Question 10 _____________ is a plan
in which there is no fixed term of cover but the insurer offers to
pay the agreed upon death benefit when the insured dies, no matter
whenever the death might occur. A Term Assurance Plan B Pure
Endowment Plan C Whole Life Insurance D Endowment Assurance
Question 11 The Bonus which is paid in case of death of the
policyholder or maturity benefit is called as ___________ A
Terminal Bonus
60. B Guaranteed Bonus C Reversionary Bonus D Profit gain Bonus
Question 12 Which among the following is an intangible product? A
Car B House C Life insurance D Soap Question 13 Policies which have
a provision for participating in profits are called as
_____________ A Participating Plans
61. B Profit Making Plans C Dividend Plans D Investment Plans
Question 14 Mrs. Anita has opted for an life insurance plan with a
tenure of 10 yrs. According to the plan she will have to pay
premiums regularly and will get an insurance coverage of Rs 10 lass
for the entire tenure. However the plan doesn't provide any
maturity benefit. Which plan has Anita opted for? A Term Assurance
Plan B Endowment Plan C Annuity Plan D Money back Plan Question
15
62. Which of the below statement is incorrect with regards to
decreasing term assurance? A Death benefit amount decreases with
the term of coverage B Premium amount decreases with the term of
coverage C Premium remains level throughout the term D Mortgage
redemption plans are an example of decreasing term assurance plans
Question 16 The premium paid for whole life insurance is
____________ than the premium paid for term assurance. A Higher B
Lower C Equal
63. D Substantially higher Question 17 Products that can only
be perceived indirectly are called _____________ A Intangible B
Consuming C Expensive D Tangible Question 18 ______________ life
insurance pays off a policyholders mortgage in the event of the
person"s death. A Term B Mortgage
64. C Whole D Endowment Question 19 Who among the following is
best advised to purchase a term plan? A An indhidual who needs
money at the end of insurance term B An individual who needs
insurance and has a high budget C An individual who needs insurance
but has a low budget D An individual who needs an insurance product
that gives high returns Question 20
65. An immensely valuable asset possesed by an human being
which is also the source of his productive earning capacity is
called ____________ A Human Income B Human Life Value C Human
Capital D Human Asset Question 21 Which of the below option is
correct with regards to a term insurance plan? A Term insurance
plans came with life-long renewability option B All term insurance
plans come with a built-in disability rider C Term insurance can be
bought as a stand-alone policy as well as a rider with another
policy
66. D There is no provision in a term insurance plans to
convert it into a .,.vhcile life insurance plan Question 22 Which
of the below is an example of an endowment assurance plan? A
Mortgage Redemption Plan B Credit Life Insurance Plan C Money Back
Plan D Whole Life Plan Question 23 Physical objects that can be
directly perceived by touch are known as ___________ objects A
Intangible B Physical
67. C Tangible D Consuming Question 24 According to the new
guidelines for regular premium policies, the cover will be
__________ times the annualised premium paid for those below 45 and
times for others. A 10 and 5 B 10 and 7 C 7 and 10 D 5 and 10
Question 25 In decreasing-term insurance, the premiums paid
___________ over time. A Increase
68. B Decrease C Remain constant D Are returned Question 26
Which type of term insurance plan is designed to pay the balance
due on a loan? A Increasing Life Insurance B Mortgage Life
Insurance C Credit Life Insurance D Convertible Life Insurance
Question 27 Which plan leaves the policyholder with the
satisfaction that he/she has not lost anything incase he/she
survives the term.
69. A Term insurance with return of premiums. B Cash return
insurance plan. C Pure Endowment Plan. D Pure Endowment with return
of premiums. Question 28 An endowment assurance is an combination
of _________ _________ A Health Plan + Term Assurance Plan B Term
assurance plan + Pure endowment plan C Pure endowment + Pension
plan D Term assurance + Pension plan Question 29 Mr Suresh Patil is
the main income earner of the family and wants to save in an
insurance plan which
70. gives him life cover till he is alive Which plan will you
suggest for his needs? A Decreasing Term Assurance B Pure Endowment
Plan C Pension Plan D Whole life Insurance Plan Question 30 Using
the conversion option present in a term policy you can convert the
same to ___________ A Whole life policy B Mortgage policy C Bank FD
D Decreasing term policy Question 31
71. The _________ the premium paid by you towards your life
insurance, the __________ will be the compensation paid to the
beneficiary in the event of your death. A Higher: Higher B Lower,
Higher C Higher: Lower D Faster: Slower Question 32 _______________
is a plan with the provision for return of a part of the sum
assured in periodic installments during the term and balanced of
sum assured at the end of the term. A Pure Endowment Plan B Money
back plan C Whole Life Insurance