Chapter No 5

Question No 1 : What Is A Product In Terms Of Insurance?

Choice1 : Commodity
Choice2 : A Thing
Choice3 : A Plan
Choice4 : An item.
Correct Answer : A Plan
Your Answer : A Plan
CORRECT ANSWER

Question No 2 : From a marketing point of view a product is a bundle of

attributes. It means:
Choice1 : All products are tied up and bundled
Choice2 : A product that cannot be distinguished
Choice3 : The product is attributed to be not good
Choice4 : Same category of product with different features.
Correct Answer : Same category of product with different features.
Your Answer : Same category of product with different features.
CORRECT ANSWER

Question No 3 : Which One Of The Following Statement Is Correct?

Choice1 : Life Insurance protects the human being
Choice2 : Life Insurance replaces the human being
Choice3 : Life Insurance protects economic value of human being
Choice4 : Life Insurance creates fear in the minds of insuring public
Correct Answer : Life Insurance protects economic value of human being
Your Answer : Life Insurance protects the human being
WRONG ANSWER

Question No 4 : What Do Mean By A Rider?

Choice1 : It provides a supplementary benefit
Choice2 : It is nothing but riding on a horse
Choice3 : It constricts the scope of the policy
Choice4 : It is unbundled feature
Correct Answer : It provides a supplementary benefit
Your Answer : It provides a supplementary benefit
CORRECT ANSWER

Question No 5 : A term insurance policy also comes handy as income

replacement plan--clarify:
Choice1 : On death of insured lump sum amount is paid to dependants
Choice2 : It provides alternative policy to dependents
Choice3 : It provides a series of monthly/quarterly etc. payments to the family
Choice4 : It provides income to the nominee till she is alive
Correct Answer : It provides a series of monthly/quarterly etc. payments to the
family
Your Answer : It provides alternative policy to dependents
WRONG ANSWER

Question No 6 : Mr. X has taken a term assurance plan for rs.5,00,000/-. He lives
Upton the end of policy term. How much he will get under the policy?
Choice1 : Rs.5,00,000
Choice2 : Rs.500000+ Bonus
Choice3 : Rs.500000 less expenses
Choice4 : Nothing
Correct Answer : Nothing
Your Answer : Nothing
CORRECT ANSWER

Question No 7 : The premium under term assurance plan is very cheap why?
Choice1 : There is a saving element
Choice2 : It is a pure risk premium no savings
Choice3 : The policy is offered for less sum assured
Choice4 : The policy is not bundled
Correct Answer : It is a pure risk premium no savings
Your Answer : It is a pure risk premium no savings
CORRECT ANSWER

Question No 8 : A term assurance policy can be converted into:

Choice1 : Whole Life Policy
Choice2 : Endowment Policy
Choice3 : Both are correct
Choice4 : Both are wrong.
Correct Answer : Both are correct
Your Answer : Both are correct
CORRECT ANSWER

Question No 9 : Is It Necessary To Produce Fresh Evidence Of Insurability While

Opting For Conversion Of Term Assurance Plan Into Other Plans?
Choice1 : Necessary
Choice2 : Not necessary
Choice3 : both are wrong
Choice4 : Both are correct
Correct Answer : Not necessary
Your Answer : Both are correct
WRONG ANSWER

Question No 10 : What Do You Understand About Increasing Term Assurance?

Choice1 : Sum assured increases at stated intervals

Choice2 : Sum assured decreases at periodical intervals

Choice3 : Sum assured fluctuates on fixed intervals
Choice4 : None is correct.
Correct Answer : Sum assured increases at stated intervals
Your Answer : Sum assured increases at stated intervals
CORRECT ANSWER

Question No 11 : What Is The Difference Between Term Assurance Policy And

Whole Life Policy?
Choice1 : Both policies cover death risk and term is specified
Choice2 : Term policy covers death and whole life policy covers maturity
Choice3 : Both policies cover death risk. No fixed term in whole life plan.
Choice4 : Whole life policy is a conversion of term assurance policy
Correct Answer : Both policies cover death risk. No fixed term in whole life plan.
Your Answer : Both policies cover death risk. No fixed term in whole life plan.
CORRECT ANSWER

Question No 12 : An Endowment Plan Covers:

Choice1 : Maturity risk only
Choice2 : Death risk only
Choice3 : Both death and maturity risk
Choice4 : None of the above
Correct Answer : Both death and maturity risk
Your Answer : Both death and maturity risk
CORRECT ANSWER

Question No 13 : Payment Of Bonus Is Possible Because:

Choice1 : Actual experience is better than expectations
Choice2 : Assumptions of premium rate are conservative
Choice3 : There is a loading for bonus in the premium

Choice4 : All reasons are correct.

Correct Answer : All reasons are correct.
Your Answer : All reasons are correct.
CORRECT ANSWER

Question No 14 : According To IRDA-Guidelines, What Will Be Death Cover For

Single Premium Policy If The Age Of Policyholder Is Above 45 Years?
Choice1 : 10 time of single premium
Choice2 : 125% of single premium
Choice3 : 110% of single premium
Choice4 : 7 times of single premium
Correct Answer : 110% of single premium
Your Answer : 10 time of single premium
WRONG ANSWER

Question No 15 : Under mortgage redemption plan, the sum assured

..on payment EMI:
Choice1 : Increases
Choice2 : Decreases
Choice3 : Does not change
Choice4 : Not known
Correct Answer : Decreases
Your Answer : Does not change
WRONG ANSWER