1. Which of the following constitute Breach of Utmost Good faith? (A) Non-Disclosure (B) Misrepresentation (C) Both (D) NOTA.
2. Which of the following could be classified as Non- disclosure? (A) Inadvertent omission of information B) Intentional suppression of information C) A & B are correct (D) A & B are wrong .
3. Which of the following could be termed Misrepresentation (A) Innocent misrepresentation B) Fraudulent misrepresentation (C) A & B are correct (D) A & B are wrong .
4. When an insurance contract can be declared void? (A) Innocent misrepresentation B) Fraudulent misrepresentation C) A & B are correct (D) A & B are wrong .
5. Insurance is not Gambling because of presence of (A) Principle of Utmost good faith (B) Insurable Interest (C) Indemnity Principle (D) Principle of indemnity.
6. According to common law, when insurable interest should be present in a life insurance contract? (A) At the time of taking policy (B) At the time of claim (C) Both A and B (D) NOTA.
7. According to common law, when insurable interest should be present in a General insurance contract? (A) At the time of taking policy (B) At the time of claim (C) Both A and B (D) NOTA.
8. Proximate Cause refer to the …… cause which set in motion a chain of events producing loss. (A) Active (B) Efficient (C) A & B are wrong (D) Both A & B correct.
9. Why insurance contract is an Adhesion Contract? (A) Insurance Co. has all the bargaining power B) Client has also great bargaining power (C) Both A & B correct (D) Both A & B wrong .
10. Which facility is given to the policyholder to neutralize the bargaining power in adhesion contracts? (A)Surrender (B) Loan (C) Assignment (D) Free look period.
11. Which of the following is not a long term goal of an individual? (A) Education/marriage of child B) Retirement Provision (C) Buying a TV set D) All the above .
12. Savings is a composite of which of the following decisions: (A) Postponement of consumption (B) Parting with liquidity (C) Both the above (D) None of the above.
13. Which of the following could be termed the need of an individual? (A) Specific transaction needs (B) General transaction needs (C) Meeting contingencies (D) All the above.
14. Which of the following could be termed Transactional Products (A) Insurance (B) Shares (C) Real Estate (D) Bank deposits.
15. Which of the following is not a Wealth accumulation product? (A) Shares (B) Insurance (C) Bonds (D) Real Estate .
16. Which of the following is a Contingency product? (A) Bank deposits (B) Real Estate (C) Postal savings (D) Insurance.
17. Contingency products typically address which type of need? (A) Cash requirements (B) Against uncertainties (C) Wealth creation (D) All above.
18. Bank deposit addresses which type of need? (A) Uncertainties (B) Wealth creation (C) Savings (D) Contingencies.
19. At young age, one tends to be – (A) Progressive (B) Aggressive (C) Secured (D) Conservative.
20, When one nears his retirement years, the Risk profile of an individual could be - (A)Progressive (B) Aggressive (C) Secured (D) Conservative.
21. Which is not an appropriate reason for a proper financial planning? (A) Break up of joint family system (B) Changing lifestyles (C) Underwriting (D) Change in behavioral patterns.
22. When is the right age to start financial planning? (A) Young ages (B) Middle ages (C) Advanced ages (D) First salary.
23. Which of the following is incorrect?
(i) - The longer the period of investment, the more they will multiply.
(ii)– The lesser the period of investment, the greater they will multiply. (A) Statement (i) (B) Statement (ii) (C) Both (i) and (ii) (D) Neither (i) nor (ii).
24. Which of the following is incorrect? (A) Financial planning is for wealthy individuals only. (B) A disciplined approach and dedicated savings are necessary (C) An unplanned impulsive approach could spell financial distress (D) Investment should suit one’s risk appetite.
25. With reference to Inflation, which of the following statement is not correct? (A) Inflation leads to rise in prices (B) Inflation means more purchasing power (C) Inflation means erosion of money value (D) Inflation plays havoc. .
26. Of late, changing lifestyles of people lead to more … (A) Savings (B) Investments (C) insurance (D) borrowings .
27. Which is not a part of Cash planning exercise? A) Managing income and expenditure flow (B) Creating surplus for capital investment (C) Predicting future expenses (D) Buying less insurance .
28. Restructuring of debts refers to – (A) Swapping less interest loans with more interest loans (B) Clearing more interest loans and pay them with less interest loans (C) Closing all outstanding loans (D) Going for more and more borrowings .
29. Which does not form part of insurance planning? (A) Life Insurance (B) Housing loans (C) Protection of assets (D) Health Ins.
30. Selecting an appropriate investment vehicle would not depend on – (A) Liquidity (B) Tax benefit (C) Time horizon (D) Insurability .
31. Which is not a phase in retirement planning? (A) Accumulation (B) Inflation (C) Conservation (D) Distribution .
32. Estate planning would take care of devolution of one’s estate soon after his (A) Illness` (B) Birth (C) Marriage (D) Death .
33. Which of the following process does not cover Estate planning? (A) Surrender (B) Nomination (C) Assignment (D) Writing a will.
34. Which of the following statement is not correct? (A) One should avail potential tax saving opportunities
(B) Purpose of tax saving is to minimize taxes and not to evade tax (C) Tax planning helps to gain maximum advantage of tax laws (D) Agents are not much helpful in advising on tax planning.
35. Which of the following statements is incorrect? A) A product can be differentiated, but a commodity cannot. (B) Products are need satisfiers C) Product is an end by itself (D) The appropriateness of a product would depend on its features.
36. Which of the following statement in respect of Riders is incorrect? (A) Rider means the basic death cover of a life insurance policy. (B) Riders can be added thro an endorsement (C) Riders refers to supplementary benefits in life insurance policies (D) Riders help customize individual’s preferences.
37. Term insurance is mainly suitable for which of the following needs? (A) Tax planning (B) Savings (C) Disease (D) Income replacement .
38. Which of the following is not a traditional type of product offered by ins.cos? (A) Whole life plan (B) Endowment plan (C) Moneyback plan (D) ULIP.
39. Which of the following Statement is incorrect? (A) Term Insurance can be taken as a standalone policy; (B) Term insurance cannot be taken as a rider C) Term insurance policies are sold by life insurance companies (D) Term insurance policies provide cover for a fixed period.
40. Which of the following policies are suitable for a person who cannot temporarily afford to pay high premiums now?
(A) Convertible Endowment (B) Convertible money back (C) Convertible ULIP (D) Convertible whole life .
41. Which among the following is not a variant of term assurance? (A) Mortgage redemption insurance (B) Return of premiums (C) Increasing term assurance (D) Endowment assurance .
42. Endowment assurance does not possess which of the following property? (A) Savings benefit (B) Death benefit (C) Survival Benefit (D) Bonus benefit .
43. Which plan is suitable for accumulation of specific sum of monies? (A) Whole life (B) Endowment (C) Money back (D) Term insurance.
44. A policy with cover for an indefinite term is called – (A) Whole life (B) Endowment (C) Money back (D) Term insurance .
45. The main advantage of term insurance lies in – (A) Protection (B) Thrift C) Savings (D) Price .
46. Endowment insurance is a combination of which of the following 2 features (A) A decreasing term insurance with decreasing investment element (B) An increasing term insurance with decreasing investment element (C) A increasing term insurance with increasing investment element (D) A decreasing term insurance with increasing investment element .
47. Which of the following statement is correct in respect of Endowment policy? A. shorter the policy term lesser the investment element B. shorter the policy term larger the investment element C. longer the policy term larger the investment element (D) Term and investment element do not bear any relationship .
48. Identify the correct statement from the following:- (A) Par policies do not participate in the profits of the insurance companies (B) Under Traditional plans, investments are made without any regulatory supervision (C) Non-participating policies could be offered in linked or non-linked platform (D) Non-par policies are with profit policies.
49. Which of the following is untrue as per IRDA’s regulations on non-par policies? (A) The benefits shall be stated at the outset (B) The benefits shall be linked to some index (C) The additional benefit under these policies shall be laid out at the outset (D) The return shall be stated at the beginning of the contract itself.
50. Which of the new guidelines for traditional products is not true? (A) For participating policies, bonus is linked to performance of the fund (B) Bonus once announced becomes a guarantee (C) Such a bonus is called Terminal Bonus (D) For Non-par policies, returns are disclosed at the beginning of the policy.
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