1. Which of the following laws affect the working of an insurance agent?
- The Insurance Act
- The Contract Act
- The Income Tax Act
- All the three mentioned above *
2. A person is an insurance agent because of
- the nature of his duties *
- his designation
- the training given to him
- all the three mentioned above
3. A person is an insurance agent because of
- the licence given to him
- his knowledge
- his duties *
- his salary
4. Which of the following statements is true?
- Anybody can become an insurance agent
- Some people will not be allowed to become insurance agents *
- Neither of the above statements is true
- Both the above statements are correct
5. Which of the following statements is true?
- An agent must look after the interests of the insurer
- An agent must look after the interests of the proposer
- Neither of the two statements is true
- Both the above statements are correct *
6. Which of the following statements is true?
- The functions of an agent are the same, whichever insurer he is working for
- The functions of an agent differ according to the insurer he is working for *
- The commission payable to an agent is determined by the IRDA
- All the above statements are true
7. Aa licence for insurance agency will not be given unless the person
- has passed an examination prescribed by the IRDA
- is 21 years of age
- has undergone training
- satisfies all the above conditions *
8. A licence for insurance agency will not be given unless the person
- is recommended by an insurer *
- is a graduate
- is a resident of the town where the insurer has an office
- satisfies all the above conditions
9. A licence for insurance agency will be given to a person who
- is recommended by an insurer *
- has a master’s degree
- is 45 years of age
- satisfies all the above conditions
10. Licences for working as insurance agents are given to
- individuals
- companies
- cooperative societies
- all the three *
11. Which of these persons will not be given a licence to work as an insurance agent?
- A person with a criminal record *
- A corporate insurance executive
- An employee of an insurance company
- All the three mentioned above
12. Which of the following statements is correct?
- A broker is an insurance agent
- A specified person is an insurance agent
- A corporate insurance executive can work for more than one life insurer
- None of the above statements are correct *
13. Which of the following statements is correct?
- An insurance agent has fixed working hours
- An insurance agent has to mark his attendance in office every day
- An insurance agent works according to his schedule *
- An insurance agent cannot do any other work
14. Which of the following statements is true?
- An insurance agent is a full time employee of the insurer
- An insurance agent is a part time employee of an insurer
- An insurance agent is not an employee of an insurer *
- An insurance agent is not allowed to have any other employment
15. Which of the following statements is true?
- A life insurance agent cannot represent a mutual fund
- A life insurance agent cannot sell small savings schemes
- A life insurance agent cannot be a sharebroker
- All the three statements are wrong *
16. Which of the following statements is true?
- An insurance agent is paid a salary every month
- Commissions will stop as soon as an agent reaches 65 years of age
- Commissions paid by different insurers are the same
- Commissions may continue to be paid to the heirs, after the death of the agent *
17. A life insurance agent should
- persuade every prospect to buy a life insurance policy
- advise the prospect about the best financial arrangement for his situation *
- say that life insurance is better than all other avenues for investment
- say that life insurance is meant for young people only
18. A life insurance agent should
- be aware of the plus and minus points of all financial instruments
- know the benefits of all life insurance plans
- understand how the income tax laws apply to a prospect
- know all the three above *
19. Which of the following statements is not correct?
- An agent should be able to suggest a total financial package for the prospect
- An agent should be an expert only with regard to life insurance *
- An agent should be up-to-date on the tax laws
- An agent should be aware of the IRDA regulations
20. Which of the following statements is not correct?
- A life insurance agent should carry the literature with him
- A life insurance agent should carry his licence with him always
- A life insurance agent should not appear shabby
- All the above statements are correct *
21. Which of the following statements is not correct?
- Life insurance does not meet the needs of all people always
- Life insurance is not better than all other investments
- Tax advantage is not the best reason for buying life insurance
- All the above statements are correct *
22. If a person does not have an insurance agent’s licence, he cannot
- procure or solicit insurance business
- work for an insurance company
- be paid commission on the premium under policies procured by him *
- advise persons on the best plans of insurance
23. When is the job of a life insurance agent over?
- As soon as the policy is issued
- When the claim arises under the policy
- When the claim is paid under the policy
- It is not over as long as the policyholder or any member of his family is alive *
24. When a policy lapses, it can be inferred that
- The agent has not been in touch with the policyholder
- The agent had not explained the benefits of insurance properly
- The agent had failed in his duties
- All of the above *
25. A good life insurance agent must have
- knowledge of the benefits under the various plans of insurance
- knowledge of the other schemes where the prospect can put his moneys
- knowledge of the office procedures
- all of the above *
26. Knowledge of a plan of insurance includes
- details about the benefits available under that plan
- availability of similar plans from competitors
- implications of the relevant tax laws
- all of the above *
27. State which one of the following statements is correct
- Life insurance is the best savings scheme for all persons
- Life insurance is the best investment scheme for young persons
- Both the statements above are correct
- Both the statements above are wrong *
28. State which one of the following statements is correct
- Some people have no need for life insurance
- Some people buy life insurance only for tax benefits
- Both the statements above are correct *
- Both the statements above are wrong
29.State which one of the following statements is correct
- An agent’s job is to sell life insurance to every person
- An agent’s job is to assist in claim settlement *
- Both the statements above are correct
- Both the statements above are wrong
30. State which one of the following statements is correct
- An agent has to ensure that nominations are changed whenever necessary
- An agent is the agent of the proposer / policyholder
- Both the statements above are correct *
- Both the statements above are wrong
31. State which one of the following statements is correct
- There are plenty of instruments available for savings and investments *
- The best insurance policy is the one with the lowest premium rates
- Both the statements above are correct
- Both the statements above are wrong
32. State which one of the following statements is correct
- An agent should not admit that he does not have a particular information
- An agent cannot know everything that the proposer wants to know *
- Both the statements above are correct
- Both the statements above are wrong
34. State which one of the following statements is correct
- Ethical behaviour leads to improved business and earnings
- Ethical behaviour is automatic when the policyholder’s interest are kept in mind
- Both the statements above are correct *
- Both the statements above are wrong
35. State which one of the following statements is correct
- Ethical behaviour is prescribed in the irda’s code of conduct
- Ethical behaviour is automatic when the policyholder’s interest are kept in mind
- Both the statements above are correct *
- Both the statements above are wrong
36. State which one of the following statements is correct
- Running down other insurance companies is not wrong
- The agent has to ensure that no extra is charged by the underwriter
- Both the statements above are correct
- Both the statements above are wrong *
37. State which one of the following statements is correct
- The agent is responsible if there has been suppression of material facts in a case
- Unethical behaviour affects the reputation of the agent and the insurer
- Both the statements above are correct *
- Both the statements above are wrong
38. State which one of the following statements is correct
- Unethical behaviour can affect the settlement of the claim, if it is early *
- Ethical behaviour is beneficial to the policyholder, but not to the agent
- Both the statements above are correct
- Both the statements above are wrong
39. State which one of the following statements is correct
- When vital information is not disclosed, the policyholder is benefited
- When a claim is repudiated, the agent’s trustworthiness is affected *
- Both the statements above are correct
- Both the statements above are wrong
40. State which one of the following statements is correct
- Ethics is compromised when the agent considers his earnings as important
- The agent must give to the insurer all information he has about the life to be insured
- Both the statements above are correct *
- Both the statements above are wrong
41. It is wrong to terminate an existing policy and take out a fresh one if
- the benefits under the new one are drastically different from the existing one
- the earlier policy was taken without fully understanding the implications of the mwp act
- the agent who had recommended the earlier policy is not active any more
- it is done with a view to collect the higher first years commission *
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