IRDA Sample Paper

Irda exam paper     1          Insurance works on the principle of   a          Trust b          Sharing c           Randomness d          All of the above   2          Insurance is legitimate   a          when an adverse happening is likely b          When an adverse happening is unlikely c           When an adverse happening is certain d          In all the above three situations   3          Insurance benefits replace   a          All physical losses, in full b          All physical losses, partly c           All monetary losses, in full d          The monetary losses, but only to some extent   4          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   5          Which is the right time for taking life insurance?   a          When you are about to get married b          Soon after you have got married c           Just when you are joined a new job d          All the three ‘times’ are right   6          Retention of risk may be done conveniently by   a          Large corporations b          Small companies c           Single individuals d          None of the three   7          A valuation is done by a life insurer because   a          It is a statutory requirement b          It is necessary to be able to declare dividends to shareholders c           It tells the insurer how well it is managing the business d          All of the above   8          The reason for charging level premiums is   a          Risk increases as age increases b          It is convenient to the policyholder c           It is convenient to the insurer d          All the above reasons   9          What does a premium depend upon?   a          The place of worship visited by the person to be insured b          The state of health of the policyholder c           The decision of the underwriter d          The report of the agent   10         State which one of the following statements is correct?   a          In group insurance, a single policy is issued covering many persons b          A master policy covers servants of a master c           Both the statements above are correct d          Both the statements above are wrong   11         Which one of the following statements is correct?   a          In a limited payment policy, there is a maximum limit to the SA b          In a limited payment policy, there is a maximum limit to the term c           Both the statements above are wrong d          Both the statements above are correct   12         Which one of the following statements is true with regard to Children’s policies?   a          On vesting, the insured person has an option to change the term of the policy b          On vesting the insured person has an option to increase the SA c           Both the statements above are wrong d          Both the statements above are correct   13         Which of the following could be the basis of the cover in a group policy?   a          Height of the life insured b          Age of the life insured c           Size of the insured’s family d          All the three above   14         Which one of the following statements is true with regard to Children’s policies?   a          On vesting, the insured person has an option to change the term of the policy b          On vesting the insured person has an option to increase the SA c           Both the statements above are wrong d          Both the statements above are correct   15         Which one of the following statements is correct?   a          Every plan of insurance is a combination of two basic plans b          The name given to a plan indicates the benefits available under the plan c           Both the statements above are correct d          Both the statement s above are wrong   16         Which one of the following statements is correct?   a          Underwriting is done only when there is a medical examination b          Medical examination is necessary before a policy can be issued c           Both the statements above are correct d          Both the statements above are wrong   17         Which one of the following statements is correct?   a          The underwriter determines the premium to be charged b          The underwriter is an employee of the insurer c           Both the statements above are correct d          Both the statements above are wrong   18         Which one of the following statements is correct?   a          If the underwriter feels that the risk is more, he will accept at OR b          If the underwriter feels that the risk is more, he may impose a lien c           Both the statements above are correct d          Both the statements above are wrong   19         Which one of the following statements is correct?   a          The schedule of a policy is not altered after the policy is issued b          Changes in the terms of the policy are made through endorsements c           Both the statements above are correct d          Both the statements above are wrong   20         The date of issue of the FPR indicates   a          The date when the risk effectively begins b          The date when the next premium falls due c           The date when the policy will commence d          None of the above   21         Which one of the following statements is correct?   a          In the case of SSS policies, renewal premium receipts are issued b          In the case of SSS policies, FPRs are issued c           Both the statements above are correct d          Both the statements above are wrong   22         Which one of the following statements is correct?   a          Assignee is free from the assignor’s obligations under the policy b          A nomination is automatically cancelled when a loan is taken under the policy c           Both the statements above are correct d          Both the statements above are wrong   23         Which one of the following statements is correct?   a          The beneficiaries under the MWP Act can be any member of the family b          A policy can be taken under the MMWP Act for the benefit of parents c           Both the statements above are correct d          Both the statements above are wrong   24         Which one of the following statements is correct?   a          Foreclosure can be done only with the consent of the policyholder b          Foreclosure can be done only after informing the policyholder c           Both the statements above are correct d          Both the statements above are wrong   25         Which one of the following statements is correct?   a          Revivals are not done unless the entire outstanding premium is paid b          Revivals are not done unless the underwriter agrees c           Both the statements above are correct d          Both the statements above are wrong   26         Which one of the following statements is correct?   a          Foreclosure action cannot be taken till a notice is served on the policyholder b          When a foreclosure action is taken, nothing is payable to the policyholder c           Both the statements above are correct d          Both the statements above are wrong   27         Which one of the following statements is correct?   a          The beneficiaries under the MWP Act can be any member of the family b          A policy can be taken under the MMWP Act for the benefit of parents c           Both the statements above are correct d          Both the statements above are wrong   28         Which one of the following statements is correct?   a          A presumption of death is not the same as proof of death b          Presumption of death allows inheritance of property c           Both the statements above are correct d          Both the statements above are wrong   29         When does a claim arise under an insurance policy?   a          Whenever the policyholder feels the need for money b          When the insured events happen c           When a premium is not paid d          Whenever any of the three things mentioned above happen   30         Which one of the following statements is correct?   a          Maturity claim cheques are paid to the trustees in a MWP Act case b          Maturity claim cheques are paid to the beneficiaries in a MWP Act case c           Both the statements above are correct d          Both the statements above are wrong   31         If a claim is made in January 2007 under a policy, which commenced in May 2002, stating that the life insured had died in April 2004,   a          Section 45 of the Act will not apply b          The claim can be treated as an early claim c           Foul play must be suspected d          All the three statements above are correct   32         Which one of the following statements is correct?   a          A policy reported to be lost, may actually have been assigned b          A policy has no value after the payment of survival benefits c           Both the statements above are correct d          Both the statements above are wrong   33         Which one of the following statements is correct?   a          The foreign exchange regulations apply if the life insured is a non-resident b          The foreign exchange regulations apply if the claimant is a non-resident c           Both the statements above are correct d          Both the statements above are wrong   34         State which of the following statements is correct   a          ULIPs provide for flexibility b          ULIPs are better than traditional policies c           Both the above statements are correct d          Both the above statements are wrong   35         State which of the following statements is correct   a          In ULIPs, the offer bid spread is the difference between the two prices b          In ULIPs, the offer bid spread, will in some cases be zero c           Both the above statements are correct d          Both the above statements are wrong   36         State which of the following statements is correct   a          In ULIPs the insurance cover must be a minimum multiple of the premium b          ULIPs can be surrendered after two years c           Both the above statements are correct d          Both the above statements are wrong   37         State which one of the following statements is correct   a          Life insurance is the best savings scheme for all persons b          Life insurance is the best investment scheme for young persons c           Both the statements above are correct d          Both the statements above are wrong   38         Which of the following statements is correct?   a          An insurance agent has fixed working hours b          An insurance agent has to mark his attendance in office every day c           An insurance agent works according to his schedule d          An insurance agent cannot do any other work   39         State which one of the following statements is correct   a          When vital information is not disclosed, the policyholder is benefited b          When a claim is repudiated, the agent’s trustworthiness is affected c           Both the statements above are correct d          Both the statements above are wrong   40         State which one of the following statements is correct?   a          The social sector is not only in the urban areas b          The social sector includes the unorganized sector c           Both the statements above are correct d          Both the statements above are wrong   41         State which one of the following statements is correct?   a          The Ombudsman’s authority is limited to claims matters only b          The Ombudsman is not a judicial authority c           Both the statements above are correct d          Both the statements above are wrong   42         State which one of the following statements is correct?   a          The tax provisions are the same for all kinds of savings b          The tax provisions are included in the Constitution c           Both the statements above are correct d          Both the statements above are wrong   43         A proposal for SA of Rs. 10 lakhs with DAB for monthly mode under SSS. Proposer had a previous policy of Rs. 5 lakhs with DAB. Proposal was accepted with health extra of Rs. 2.75 per thousand SA premium for DAB Re 1 per thousand. 5% extra for monthly mode. large SA rebate of Rs 2/- per thousand for 1 lakh and above. Tabular premium Rs. 48.20 maximum total SA on which DAB is allowed is Rs. 10/- lakhs. Find monthly (SSS) premium, rounded off to the next higher rupee a          4102 b          4121 c           4183 d          4195     44         Find out surrender value on the basis of following data (the answer to be rounded off to the next lower rupee). SA Rs.30, 000 DOC- 15.6.1992, Endowment with profit - 30 years Due date of last premium paid 15-06-2007 mode half yearly Accrued bonus Rs.750/- per thousand SA. SV factor 23% a          3670 b          3765 c           8740 d          None of these   45         A money back policy for SA. of Rs.50,000/- Matured after 25 years. Survival benefits of 15% each had been paid at the end of 5th, 10th, 15th, and 20th years. Bonus had accrued at Rs.965/- per Rs.1000/- SA. Interim bonus @ Rs.25/- per thousand SA is payable. What is the maturity claim amount? a          68250 b          69500 c           98250 d          99500   Correct Answers            Practice Paper   6   1          d          16         d          31         d 2          a          17         c           32         a 3          d          18         b          33         c 4          c           19         c           34         a 5          d          20         a          35         c 6          a          21         b          36         a 7          d          22         d          37         d 8          d          23         d          38         c 9          c           24         b          39         b 10         a          25         d          40         c 11         c           26         a          41         b 12         c           27         d          42         d 13         b          28         c           43         b 14         c           29         b          44         c 15         a          30         a          45         b [formidable id=3 title=true description=true]