IRDA exam previous year question papers

I want to give the exam of Insurance Institute of India of IRDA so I want to get the previous year question papers so can you provide me that as I want to prepare for the exam?

As you want to get the previous year question papers of exam of Insurance Institute of India of IRDA so here is the information of the same for you:

1. Insurance is a mechanism to reduce impact of adverse events on
a) Non-value generating assets.
b) Value generating assets.
c) Current assets
d) Fixed assets

2. Perils could be
a) Uncertain
b) Certain
c) Definite
d) Unlikely

3. Insurance is a function of
a) Uncertainty
b) Life
c) Society
d) Loss

4. Insurance works on the principle of
a) Sharing of profits
b) Sharing of assets
c) Sharing of losses
d) Sharing of expenses

5. A) Life Insurance protects the life of the insured.
B) Life Insurance minimizes the financial impact of untimely death.
a) A is correct b) B is correct
c) Both A & B are correct d) Both A & B are wrong

6. Occurrence of ----- has to be ------ & not a -------- of the insured person.

a. peril, uncertain, creation
b. event, certain, creation
c. risk, hazardous, profit
d. event, random, creation

7. For getting insurance you need to pay ------- and get compensated by -----.
a) Compensation, Claims
b) Claims, Premium
c) Premium, Claims
d) Fees, Claims

8. ------------ is the process, which prevents entry of people who do not share the same risk.
a) New Business
b) Valuation
c) Underwriting
d) All of the above


9. Life insurance is ------------- to the state’s efforts in social management.
a) Complementary
b) Supplementary
c) Elementary

10. The insurance company is in the role of --------- where all decisions are taken for the benefit of the community.
a) Caveat Emptor
b) Uberrimae Fides
c) Underwriter
d) Fiduciary.

11. To make accurate statistical estimates insurance risks must be handled as per the law of
a) Law of Inertia
b) Law of Large Numbers
c) Law of Large Groups
d) None of the above

12. The insurer is in the position of ------- of funds
a) Owner
b) Partner
c) Trustee
d) All of the above

13. Insurance is applicable to
a) Tangible Assets
b) Intangible Assets
c) Both of the above
d) None of the above

14. Article -------- relates to Social Security
a) 39
b) 40
c) 41
d) 42

15. A) In order to be insurable a risk must be capable of
Statistical estimation
B) In insurance only economic or financial losses can be
Compensated.
a) Statement A is correct
b) Statement B is correct
c) Both are correct
d) None of the above

16. In the mechanism of insurance, people who are exposed to different risk come together. TRUE / FALSE.

17. A human life is an income generating asset TRUE / FALSE.

18. In order to be insurable a risk must be capable of statistical estimation TRUE / FALSE.

19. Insurance is a function of uncertainty TRUE / FALSE.

20. What is insurance?
Protection of ________ value of assets (ECONOMIC)
Mechanism to reduce impact of adverse events on _______ _________ assets. ( VALUE GENERATING)

21. Damage to asset due to the PERIL IS CALLED Risk which an asset is exposed to TRUE / FALSE.

22. Life insurance protects the life of the insured. TRUE / FALSE.

23. Life insurance does not require any consideration. TRUE / FALSE.

24. In which of the cases Insurable interest does not exist
a. Spouse
b. Business Partner
c. Tenant
d. Self

25. Insurance prevents the damage of an asset due to PERIL. TRUE / FALSE.

26. Through Insurance only economic / Financial losses can be compensated. TRUE / FALSE.

27. The concept of insurance can be extended beyond the coverage of tangible assets.
TRUE / FALSE.

28. Match the following

a. Caveat Emptor 1. False facts
b. Uberrimae Fide 2. Influences premium fixing
c. Misrepresentation 3. Buyer beware
d. Material fact 4. Principle of utmost good faith

29. Caveate emptor and Ubereimae Fide put together mean that while the buyer holds the responsibility of revealing all relevant information from his side the agent is responsible to provide information only if asked for. TRUE / FALSE.

30. Caveate emptor and Ubereimae Fide put together mean that while the agent holds the responsibility of revealing all relevant information from his side the customer is responsible to provide information only if asked for. TRUE / FALSE

31. Almost all insurance policies are a combination of term and endowment policies. TRUE / FALSE.

32. Insurable interest is not defined in the insurance act 1938 TRUE / FALSE.

33. Insurable interest is not defined in the insurance act 1956 TRUE / FALSE

34. Insurable interest in defined in the IRDA act 1999 . TRUE / FALSE.

35. In group insurance, risk of individuals is not assessed TRUE/ FALSE

36. Underwriting is a process which ensures that all insured share the same risk. TRUE/ FALSE

37. Can an insolvent take a life insurance policy Yes / No

38. What is the part of surplus that is distributed to policyholders called? ________________. (BONUS)

39. Which type of life insurance plans entitles the life insured full sum assured in the event of either death or survival? ________. endowment

40. A person's interest in his own life is ....................?
a. Limited
b. Restricted to HLV
c. Unlimited

41. Minimum capital for new reinsurance companies entering Indian market as per IRDA norms is?____________________ . 200cr

42. Which is correct
A) Life Insurance contracts do not require consideration.
B) Life Insurance contracts require offer and acceptance.

(a) Statement A
(b) Statement B
(c) Both a and b
(d) None of the above

43. 4. In India, the Indian Contract Act, ---- governs commercial contracts.
a) 1852
b) 1862
c) 1872
d) 1882

44. Section 45 deals with policies which are ___old
a) 2 years
b) 3years
c) 4years
d) 10years or more

46. Which of the following is not a Material Fact
a) Medical History
b) Smoking Habit
c) Earlier Insurance Taken
d) None of the above

45. 7. Which of the following relate to Material Fact
a) Caveat Emptor
b) Uberrimae Fides
c) Consensus “ad idem”
d) Legality of Object

46. . Adverse Selection refers to
a) Wrong policies being selected
b) Lack of consensus ad idem
c) Substandard lives entering insurance contracts by non-disclosure.
d) Selection of wrong target segment by insurance company.

47. The duty of disclosure in life insurance operates
a) Till the risk commences
b) On alteration
c) On revival
d) All of the above

48. A) All risks are not insurable
B) Insurance risks must be capable of financial measurement
a) Statement A is correct
b) Statement B is correct
c) Both are incorrect
d) None of the above

49. 11. Insurable Interest is
a) Defined in Insurance Act 1938
b) A legal pre-requisite
c) Both of the above
d) None of the above

50. A) Facts which everyone is supposed to know need not be disclosed
B) Facts which lessen the risk need to be disclosed
a) Statement A is correct
b) Statement B is correct
c) Both A & B are correct
d) Both A & B are wrong

51. Insurance contracts are subject to two additional principles viz.:
a) Caveat Emptor, Uberrimae Fides
b) Caveat Emptor, Consensus “ad idem”
c) Caveat Emptor, Capacity to Contract
d) Uberrimae Fides, Insurable Interest

52. A) The proposer can decide which fact is material
B) Material facts help in deciding the premium
a) Statement A is incorrect
b) Statement B is incorrect
c) Both statements are incorrect
d) None of the above is correct

53. A) Hazardous profession can affect the premium
B) A commercial pilot’s premium would be different from that of a Teacher of the same age
a) Statement A is incorrect
b) Statement B is incorrect
c) Both statements are incorrect
d) Both statements are correct.


IRDA Agent Licensing Question paper


1) The route or process through which a product is carried to the customer is known as _________________

2) Age nearer birthday as on 18/06/2000 of a person with date of birth 28/12/1961 is ________

3) The days of grace for monthly mode of premium is ___________ days.

4) EDLI scheme is linked to the payment of ________________ (Gratuity / Provident fund / pension)


Write yes or no indicate whether the following request will be allowed by the LIC or not.

5) The proposal dated 05.10.2000 for Rs.1,50,000 under table 14-18 requests that the policy be made to commence from 28.03.2000 as the date of birth of the life to be assured is 28.12.1973 .

6) Policy commenced on 01.07.1992 and lapsed because the annual premium due 01.07.1994 was not paid. Request received on 30.06.2000 for revival.

7) Father insuring his son aged 8 under the New CDA plan requests that the son’s life be covered from inception.

8) Policy paid up for Rs.4, 000 matured for payment on 30.09.2000. Policyholder reports that the policy is lost and requests that the claim be settled without advertisement and indemnity bond.

9) Policyholder requests that his Without Profit policy be made a with profits policy

10) Policyholder requests that policy issued with Annual Premium, be brought under the Salary Savings Scheme, as he has now joined a company

11) Policy commenced on 10.07.2000. A request is made on 10.09.2000 that the policy be brought under the M.W.P. Act


True or False

12) A maturity claim will be paid to the nominee.
13) The amount of bonus that vests is the same for all policies issued by the L.I.C.
14) Living too long is a risk.
15) An annuity is the same as a pension.
16) A son has no insurable interest in the father.
17) A sub-standard life is a person below the poverty line
18) An agent is not authorized to collect renewal premium.
19) An agent’s role is over after the policy is issued.
20) The maximum age entry is the same for all plans of insurance.
21) Extra premium is charged for moral hazard.
22) A lady clerk in a bank will be considered for insurance on the same terms as male lives
23) In an Immediate Annuity policy the annuity payment begins within the first year of the policy.
24) The proposal form should be written by the agent himself.


In respect of each of the words in column ‘A’ finds corresponding word in column ‘B’


Column ‘A’ Column ‘B’

25) Actuary Death _____________

26) Annuity Department _____________

27) Assignment Pension _____________

28) Communication Persuasion _____________

29) Insurance Premiums _____________

30) Mortality Pure Risk _____________

31) Motivation Recognition _____________

32) Organisation Sharing _____________

33) Term Assurance Surplus _____________

34) Valuation Transfer ___________




State whether the actions on the part of the agent in the following situations are right or wrong.

35) To a query from the prospect about the tax advantages in the proposed policy, the agent replies, “why do you bother? You just tell me how much money you can and I will work out the best policy for you.

36) Going through the existing polices of a prospect whom he is meeting for the first time, the agent suggests that he should allow three of them to lapse and go in for new policies straight away.

37) A proponent called up agent to know why a particular medical test was being asked by the office and the agent said he was not aware of the same and would revert to the matter the next day.

38) The agent was surprised to receive the copy of the letter written by the office to the wife of the insured, forwarding the forms to make a death claim.

39) Going through the existing polices of a prospect whom he is meeting for the first time, the agent suggests that nominations be made and offers to get them registered by the office.

40) The agent had left his identity card at home, when he was visiting a prospect.

41) An agent insists that all his policyholders should send the premium cheques to him, so that he can ensure that delay’s do not happen through oversight.

42) An agent tells a prospect, who is raising an objection, “why don’t you wrong. Understand this simple basic thing?”

43) When a policyholder complained that nobody in the insurance office was answering the telephone, the agent said that the office was in a mess and that the Managers were quite incompetent.

44) An agent being friendly with the assistant in the new business department, used to keep track of the new proposals and try to get business from the same parties.

45) Agency license is valid for a period of
a) 1 yrs
b) 2 yrs
c) 5 yrs
d) 3 yrs

46) The body constituted to receive and resolve grievances against an insurer is?____________

47) An insurance broker is

a) Representative of the state
b) Representative of the client
c) Representative of the insurer


48) Who shall conduct tests for licensing agents?
a) IRDA
b) NSE
c) III
d) LIC

49) When does an insurance policy lapse?
a) Stopping of bonuses
b) Assured is declared dead
c) Insurable interest of proposer ceases to exist
d) Stopping of periodical payments
e) Any of the above

50) When does a policy acquire paid up value?---------------.after 3 full year premiums payment

51) An assignment usually affected for valuable consideration is called:__________________ _________________


52) A policy can be surrendered, provided the policy is kept in force at least for a period of: ______________.


53) Which of the following policy is not eligible for loan?
a) Whole life - participating
b) Endowment
c) Money back
d) Whole life – non participating

54) What is the basis of contract between the policyholder and the insurer?
a) The Insurance act
b) The IRDA act
c) The Contract act
d) The Proposal Form

55) The cash value payable by LIC on termination of the policy contract at the desire of the policyholder but before the expiry term is known as :

__________________ __________________________.
56) Back Dating is an option to the life assurer to get the advantage of lower age wherein the policy is commenced from a date earlier than the date of signing of proposal form. However back dating is limited to one year.
True/False

57) What is the discount offered in case of
Annual premium ------------------ 3%
Semi annual ------------------ 1.5%

58) If FPR is submitted along with application the risk would be covered -True / False

59) Under the insurance act 1938, insurance against sickness and medical treatment is NOT part of life insurance business, it gets covered under miscellaneous business, which is part of general insurance business.
(T/F)

60) In many other countries health insurance is considered as part of the life insurance business.
(T/F)

State True or False

61) An agent must be of 21 years of age at least.

62) An agent can sell policies even without a license.

63) IRDA issues license to an agent.

64) 100 hours of training is a prerequisite for appearing in the recruitment examination.

65) An agents’ license is valid for 5years.

__________________
Answered By StudyChaCha Member

As you want I am here providing you sample paper of the IRDA exam.

Sample paper :

1 Sanjeev is an insurance expert who has rich experience in determining premium levels for product, what is his profile like

an actuary
loss adjuster
risk manager
underwriter

2 The Non Government organizations(NGO) helps the insurance industry immensely in

Promotional activities
Drafting new regulations
Linking buyers and sellers
Linking third party administrators
3 Investment by foreign direct investors in to Insurance co's is restricted to

12%
25%
40%
26%

4 Which market does the Micro Insurance Concentrate on ?

People with large families
People with Low Income
Government Employees
people living in Metro cities

5 What facility do the insurer use to cover Risk beyond their Limits ?

Re Insurance
Banca assurance
NGO
RBI

6 What is the max level under which micro insurance can be done

5000
25000
50000
1 lac

7 Who is the customer of a Re insurer

High Networth Individual
Insurance Companies
Licenced Insurance Agents
Non Government Organisation

8 Insurance company transfers the insurance which cannot bear by them to

Bancassurance
Reinsurance
TPAs
Actuaries

9 A policy holder takes two insurance policy and the premium amount is identical and he gets lesser commission in one of contract the reason is likely to be

one policy has more SA
ONE POLICY has more term
one policy is a single premium
One of the policy has higher Premium

10 An agent reveals his commission received from insurance sales to X&Y .Both plans are of same duration . Why is commission of X far higher that that of Y

X has brought other limited premium product
Y has brought a single premium product
X is married
Y is Single

11 Customer asks the agent to disclose the commission . The agent should
disclose on demand
Not disclose
Should call up the Insurer
Should avoid the topic

12 The best way to prove that customer of a ULIP policy is given awareness about the commission paid to the agent is
Ask the insurer to give a policy endorsement letter
From the fact details
From signed copy of benefit illustration
From ticked column of proposal form

13 Churning is bad , based on which aspect
Agents earn Lower Commission on churning
Policyholder gets more benefits
Policyholders suffer due to surrender charges and benefits
Insurance companies get good branding

14 What over riding criteria an insurance agent consider while proposing a solution
risk
suitability
Flexibility
Cost

15 Sales Target is reduced . Churning will
Increase
Decrease
Will not affect
Partially

16 Higher persistency to the insurer ensures what ?

More productivity
Higher attrition
Higher Profits
Higher S.A
17 Persitency =has increased from 82 % in previous year to 86 % this year . That means

more lapsation
more attrition
less lapsation
No profits
18 What is the maximum Time in which The insurer should settle a claim when all documents are submitted

3 days
15 days
30 days
10 days
19 A missing person is considered to be dead after

5years
8years
12 years
7years
20 The delay in settling claim by any insurance co, as per IRDA norms has to pay....% if the present bank interest rate is 5.2%

6%
9%
7%
8%
21 A claim was submitted & in how many days company should ask for additional documents if required

15 days
10days
20 days
30 days
22 Vivek takes insurance policy and dies after 8 months . If the claim needs to be excluded basis the exclusion cause what could be the cause

suicide
murder
Death was due to Accident
Body not found
23 An advisor while explaining the policy and to sell he accepts to give a part of his Agents commission, what is th limits

10%
20%
He cannot offer any commission
He can offer up to 50%
24 Consumer Forum at district level will hear complaints up to

20L
40L
1Cr
10L
25 How much is the rebate allowed by IRDA to client

Nil
5%
10%
35%
26 The controller of insurance in india is

IRDA
RBI
SEBI
Insurance ombusdmen
27 A insurer advertises through daily news paper . What type of marketing is

cross selling
direct selling
Solicitation of Policy
Brand building
28 Investment by NRI(Non Resident Indian) will be

No risk
Low risk
Medium risk
High risk
29 MWP- If the policy is endorsed under MWP - then the beneficiaries are wife and ?

parents
ex wife
children
mother
30 Mr.Sunil is doing premium calculation for his company, as per which authority is his profession related to

Council of Actuaries
Insurance council of India
Insurance institiute of India
IRDA
31 Basic qualifications of agent

sound mind & graduate
sound mind & good income level
Age and income level
His contacts in the market to solicit Insurance
32 Which Institution was Constituted by Insurance Act 1938

Insurance Institute of India
Life Insurance Council
Insurance Broker Association
General Insurance Council
33 What is the role of National Insurance Academy?

To regulate
To advise Government
To undertake training activities
To Advertise globally on Indian Insurance
34 According to IRDA act 1999, central governments involve in insurance industry over

Policy matters
complex technical issues
Promotional activities
Licensing of Insurance companies
35 Complaint council bodies other than IRDA grievance readdress forum & COPA

Ombudsman
Insurance Institute of India
Insurance Association
FERA
36 What are the ways by which a policy holder can make complaints

email
Toll free No.
Newpaper
Email or Toll free Number
37 What are the ways in which IRDA can be contacted . One is thru toll free number and other is

email
Insurance ombudsmen
visiting regional office
Through Agents
38 A policy holder submits cancellation of his term insurance policy , the insurer accepts the form and fails to give the benefit and the policy holder writes to IRDA post which the settlement should be within

10 days
15 days
20 days
30 days
39 What is the maximum level of complaint that can be considered and taken action by ombudsmen

20 lac
25 lac
30 lac
50 lac
40 What is the period of award passed to the customer decided by ombudsman?

2months
3 months
5 months
6 months
41 An Award is passed by Ombudsman .In how many days it should be honored by Insurance Co

15 days
30 days
60 days
90 days
42 Karthik written to his insurer about non settlement of a maturity calim,as per regulations,the insurer has to reply to this within how many working days

3
5
7
10
43 Raju is a certified license holder under what circumstances he needs to hold his certified license with him that is issued by irda

under all circumstances
when he sells term insurance
when he represents himself as another insurer
when he sells pension policies
44 A policy has been rejected by the company under direct intimation to the customer and copy to the Agent, what is the next action of the Agent

He has to inform the customer that the co has broken relationship with the customer
He plans to change the plan
He has to explain the reasons for rejection to the customer
He takes up with the higher authorities
45 Lung Cancer and Smoking .

lung cancer is peril and smoking is moral hazard
smoking is peril and lung cancer is hazard
Death is certain
Is occupational hazard
46 The type of risk that can be insured against is

Speculative Risk
Pure Risk
Pure & Speculative risk
Non Financial Risk
47 Harish takes a life insurance policy for Ramesh. Which of the following statement best describes the principle of Insurable Interest.

Ramesh declares all his liabilities
Ramesh is elder than Harish
Ramesh owes money form Harish
Harish suffers financial loss incase of death of Ramesh
48 What is the min age to enter into the contract of insurance

16
18
20
21
49 In a whole life plan - The policyholider's responsibility to give disclosure

at the beginning of the contract
through out the contract
Revival stage
beginning of renewal
50 Types of assignment

Absolute
Term assignment
Conditional
Absolute & Conditional

__________________
Answered By StudyChaCha Member