CSC VLE Insurance & RAP Exam Question Answer Key - 100% Pass Guarantee

Q1. What is the maximum cover that can be provided in micro-insurance?  

Ans. 50,000

 

Q2. The Non-Government Organizations (NGOs) help the insurance industry immensely in:      

Ans. Promotional activities

           

Q3. ........ means before loss what was his financial status and for the same financial status to bring him is called:           

Ans. An indemnity

 

Q4. Insurance Agents are   

Ans. Intermediaries

 

Q5. Mr. Varun who owns a multi-chain company would like to take an insurance. What will be the best option for him from the following?           

Ans. He can take company insurance

 

Q6. Insurance c option because:

Ans. Insurance products offer flexibility to the policyholders

 

Q7. Amit is looking for term insurance plan for protection of his family he is advised to approach for:    

Ans. Life Insurance

Q8. Which of the following is not a type of insurance organization?  

Ans. Ombudsman

 

Q9. The constituents who participate in deeper penetration of micro-insurance and awareness of insurance in rural areas are:        

Ans. Non- Governmental Organizations

 

Q10. In life insurance business if a person is working in calculating premium rates of insurance products then he is mostly likely a member of:      

Ans. Insurance institute of risk management

 

Q11.  A Risk transfer provides a sense of:

Ans. Financial security

 

Q12. _________ is an insurer for the insurance company:

Ans. Reinsurance company

 

Q13. Mr. Mahesh is a software engineer. He has taken a term insurance for Rs. 30,00,000/- for 30years. This is an example for:       

Ans. Risk transfer

 

Q14.   Currently, major percentage of insurance sales in India takes place through:

Ans. Individual insurance agents

 

Q15.   I.R.D.A was incorporated as a Statutory body in:

Ans. Dec-1999

 

Q16.   What facility do insurers use to cover risks beyond their exposure limits:        

Ans. Both a & b

 

Q17.   One of the most sought after advantage of Insurance is:

Ans. Tax benefits on payment of premium and all the pay-outs

 

Q18.   Vinay doesn’t want to take insurance on himself. He feels that his family will survive with the funds available in the bank and monthly rentals received from village. This comes under Risk ______:        

Ans. Retaining

 

Q19. Why is Insurance required?    

Ans. All of the above

 

Q20. The main role of an underwriter in a non-life insurance company is normally to: Ans. assess the acceptability of particular risks

 

Q21. The concept of insurance involves a transfer of:     

Ans. risk

 

Q22. How are perils and hazards normally distinguished under term insurance policies?

Ans. Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk.

 

Q23. In insurance terms, the risk of suffering a disability is best described as what type of risk?

Ans. Financial.

 

Q24. For a household insurance policy, insurable interest need only exist at outset and at what other point?

Ans. The date a claim occurs.

 

Q25. Rahul is employed by Sunny. In respect of this employment, Rahul automatically has insurable interest in Sunny’s life up to what limit, if any?

Ans. Rahul’s monthly salary.

 

Q26. Akshat is a relatively cautious person. In insurance terms, this will normally increase the likelihood that he will:

Ans. require insurance cover

 

Q27. Arun started a 20-year term insurance policy. Once established, when, if at all, is the insurer next entitled to ask him for proof of continuing good health?

Ans. When a lapsed policy is revived.

 

Q28. Once an absolute assignment is effected under a life insurance policy, who will be the titleholder(s) of this policy?

Ans. The assignee in all cases.

 

Q29. How long is the free look-in period under a term insurance policy from the date of receipt of the policy document?

Ans. 15 days.

 

Q30. A life insurer issued a quotation on 10 February, guaranteed for 14 days, which was accepted by the customer on day 10. Consequently, the insurer can only decline this risk if the:

Ans. material facts change.

 

Q31. A policy document for a money-back policy includes the statement ‘the proposal and declaration signed by the proposer form the basis of the contract’. In which main section of the policy document will this normally appear?

Ans. Preamble.

 

Q32. The consequences of these risks which will affect specific individuals or local communities in nature are called as?

Ans. particular risk

 

Q33. Pooling of insurance applies to?

Ans. All Type insurance (Only life insurance, only non-life insurance)

 

Q32. Both the parties to a contract must agree and understand the same thing and in the same sense which is called

Ans. Consensus ad idem.

 

Q33. A contract exists between insurer and proposes when

Ans. A proposal has been accepted by insurer.

 

Q34.   A life insurance policy can only be made paid up if what policy feature exists?

Ans. Savings element.

 

Q35. The main reason why a life insurance proposal form often asks for the proposer’s height is to enable a reasonable comparison with the proposer’s:

Ans. weight.

 

Q36. The concept of indemnity is based on the key principle that policyholders should be prevented from:

Ans. profiting from insurance.

 

Q37. Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply?

Ans. 5.0%

 

Q38. The amount paid out by the insurer under a 30-year life insurance policy exceeded the sum insured plus revisionary bonuses. The excess is likely to result from?

Ans. terminal bonus.

 

Q39. What normally happens to the sum insured under a life insurance policy once the period of the lien expires?

Ans. It increases.

 

Q50. The main protection need of a 19-year-old is most likely to be:

Ans. self-protection.

 

Q36. The need for investment advice from an insurance agent normally results from what overriding key factor?

Ans. Lack of market knowledge.

 

Q37. When undertaking financial planning for individuals without capital, what savings need is likely to be addressed in every single case?

Ans. Emergency funds.

 

Q38. Naveen is addressing his income needs by investing directly in corporate bonds. In what form will he receive this income?

Ans. Interest payments.

 

Q39. Raunak recently arranged a life insurance policy under which he is classed as the master policyholder. This addresses his role as:

Ans. an employer.

 

Q50. Nikhil is looking for tax-efficient savings methods for his disposable income. He is considering an equity-linked savings scheme, national savings certificates and an endowment insurance policy. Premiums for which of these investments are allowed to be deducted from his taxable income?

Ans. The equity-linked savings scheme, the national savings certificates and the endowment insurance policy.