Will you please provide me the IRDA LIC Agents Exam Model Question Paper???????

IRDA LIC Agents Exam Model Question Paper

Hello dude as you want Model Question Paper of Insurance Regulatory and Development Authority LIC Agents Exam so here I am providing you the same…..

(1) Potential purchaser of product is called ________________
(a) Prospect
(b) Consumer
(c) Customer
(d) Client

(2) If policyholder is in grievance,__________________ will solve
(a) Grievance officer
(b) Court order
(c) Ombudsman
(d) All the above

(3) 20,000 policies in the 5th year are to be made from _________sector
(a) Rural
(b) Social
(c) None
(d) Urban

(4) Insurance Agent is governed by ____________________
(a) Contract act
(b) Insurance Act
(c) IRDA
(d) All above

(5) Doctors appointed by insurers will be _____________
(a) General Physicians
(b) Specialists
(c) Surgeons
(d) All of above

(6) __________is the document produced to establish one’s age
(a) Birth Certificate
(b) Affidavit
(c) License
(d) Proof of age

(7) Who is the person who identifies the customer and get the necessary insurance for him ?
(a) Intermediary
(b) Retailer
(c) Broker
(d) Agent

(8) Which kind of Insurance plan can meet all need of a proponent?
(a) Endowment
(b) Money Back
(c) Multipurpose
(d) None of them

(9) The principal is responsible for __________ agent
(a) All the acts of agent
(b) Specified acts of agent
(c) Some of acts agent
(d) None of them

(10) Which of the following statements are True:
a) It is the agent’s responsibility to ensure that all material information is made available
b) If the proposal paper is incomplete, the agent will be held accountable
(a) A Statement
(b) B Statement
(c) Both Statement
(d) Neither of Statement

(11) In the case of a policy under the provision of M.W.P. ACT who can make the death claim?
(a) Beneficiary
(b) Life insured Heirs
(c) Trustee
(d) Any of the above

(12) Which kind policies are not entitled bonuses?
(a) Non participatory
(b) Money back
(c) Children’s
(d) Whole life

(13) Claim in question is Rs.23 lakh which consumer court will it go to:__________

(14) A policy which has run for 8 years can be called into question if there is a__________________
(a) Fraud
(b) Misrepresentation
(b) Mistake
(c) None of above

(15) What would be the paid up value of a 25-year-old endowment policy for Rs.50, 000 taken in Oct 1988, if the last ½ year’s premium paid was in Oct 2000?____________

(16) Which of the following statements are True:
a) An insurance agent can be sued under the Consumer Protection Act
b) The Consumer Protection Act does not apply to Govt. Company.
a) A Statement
b) B Statement
c) Both Statements
d) Neither of Statement

(17) If the proponent has no insurable interest in the insured the underwriter will
(a) Accept with reduce sum assured
(b) Decline the proposal
(c) Accept with lien
(d) Accept with extra premium

(18) What is paid by the insurer when the policyholder decides to discontinue the policy
(a) Forfeiture
(b) Surrender Value
(c) Intermediate Claim
(d) Lapse

(19) A person employed to act on behalf of another in dealing with a third person is called _____________
(a) Lawyer
(b) Broker
(c) Employee
(d) Agent

(20) Which are true
a) Proof of age is necessary for proposal and not for agency application
b) After business is complete agent has no role
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement

(21) Which are true
a) Insurance is necessary to cover risk of living too long
b) Insurance helps one to be less dependent on others
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement

(22) Which statement is not appropriate
A) When the prospect said that he had taken sick leave for a few days because he wanted to go outstation for an interview, the agent suggested he need not mention it
B) Agent suggested to the prospect not to mention the fact that the cause of death of one of the brothers who had died young was cardiac arrest, it was mentioned as accident
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement

(23) Which statement is not appropriate
A) The necessity for medical examination depends on S.A.
B) The nature of employment may be a factor to dispense with medical exam
a) A Statement
b) B Statement
c) Both Statements
d) Neither of the Statement


(24) Why does an office conduct special inquiry in the case of death claim which arose after 4 years
(a) As precaution
(b) As a Routine
(c) On suspicion of suppression of facts
(d) For large sum assured

(25) Loans is available only in the policy if
(a) It is a with profit policy
(b) The S.A exceeds Rs.10,000/-
(c) It is in facts underwriter decision
(d) None of the above

(26) Which statement is true
A Lapsed policy can be revived whenever the policy holder choose
B A paid up policy is a lapsed policy
(a) Only statement A
(b) Only statement B
(c) Both false
(d) Both statement

(27) When do the non-forfeiture provision apply
a) When policy is surrendered
b) When loan is taken
c) When premium is not paid
d) All above

(28) True – False
A - DAB is automatic in all life insurance policies
B- DAB is an option on payment of additional payment

(29) True – False
A - Insurance works on the law of large numbers
B - Insurance is possible only when there are many policyholders

(30) True – False
A - A policy that has been in force for 10 years can be called into question for misrepresentation
B - A policy which has been for 10 years called into question for fraud.

(31) True – False
A - An agent must find out the details of proponent and report the same to the insurer. T
B - The income of the proponent must be made known to the insurer.

(32) Loan under policy should not exceed
(a) S.V
(b) S.A.
(c) total premium paid
(d) Bonus

(33) Disability is related to
(a) Sickness
(b) Old age
(c) Loss of limb
(d) all of them

(34) Agent is subject to
(a) IRDA regulation
(b) Term of appointment
(c) Agent’s manual
(d) All of above

(35) The agent has _______freedom to act on behalf of insurer
(a) Limited
(b) Specified
(c) full
(d) none of the above

(36) Write true or false
a) Insurance is an individual issue and not a social one. -
b) “Uberrimae Fides” means “utmost Good Faith”.
c) Whole life policy is the best solution for most of the needs of a person. -
d) There are no “participating” policies in life insurance. -
e) There is no single premium endowment plan. -
F) Loan “Value” is equal to 90% of “Surrender Value”.


(37) Calculate Premium
Date of Birth = 3.06.1954
Date of Calculation = 1.01.2001
Date of commencement of policy = 1.12.2000
Term = 19 years
Sum assured = Rs.1,00,000/-
Mode = Ordinary – monthly
Accident benefit for Rs.50, 000/- only is required.
Tabular Premiums Age 45 = 76.00
Age 46 = 76.80
Age 47 = 78.00
AGE TO BE TAKEN 46 ANS 659

(38) Calculate the premium on basis of data given below:
Age 35 years
S.A.Rs.60, 000/-
T & T 75 – 20
Tabular premium Rs.68.70 per 1000/- mode I) yearly – II) half yearly –
DAB & EPDB Allowed, Occupational Extra Rs.2 per 1000 per year

(39) Calculate paid up value and special S.V.
S.A. Rs.30, 000 /-
T and T 14 – 15
D.O.C. 18.12.1985
L.P.P. 18.3.1991
Mode Quarterly
Bonus addition: Rs.396/- per 1000/- S.A.
S.V.factor 44.2

(44) Match the following
A B
a) Proposal C) let the buyer beware
b) ad idem D) evidence of contract
c) Caveat Emptor E) Pension
d) Policy A) basis of contract
e) Annuity B) of the same mind


(45) Say True or False.
a) A person’s insurable interest in his own life is _____(Unlimited / 10 times his salary / equal to his assets / non of these)
b) How many years must elapse after cancellation of a license, before a new license can be issued (three / four / five)
c) To whom should an application for agency license be given ______________(IRDA / Insurer /Controller of Insurance / any of them)
d) Who fixes the limits of doctors for medical examinations _____________ (IRDA / Medical council / Insurer / None of these)
e) Life Insurance premiums are determined by __________ (Accountants / Underwriter / Actuary)

(46) Calculate paid up value and S.V. in the following case
S.A. Rs. 30,000/-
Mode Half yearly
D.O.C. 28/10/1985
L.P.P. 28/04/1996
S.V. Factor 45
TT 14-25
Bonus Addition Rs.770 per 1000/- S.A.

(47) The route or process through which a product is carried to the customer is known as DISTRIBUTION CHANNEL

(48) Age nearer birthday as on 18/06/2000 of a person with date of birth 28/12/1961 is ________39
(49) The days of grace for monthly mode of premium is ___________ days.15

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

(51) State whether true or false.
1. Group Gratuity Scheme is beneficial to both the employer as well as employees.
2. Financial planning is not necessary, but agent should seek maximum premium from the customer.
3. There should be no inducement, incase or kind, passing from agent to customer for taking out life insurance.
4. Agents generally get something over and above legitimate commission amount from the insurer.
5. Insurance Advisor is an agent of the insurer and therefore insurer is bound by the acts or omissions of the advisers, there being the principal-agent relationship.
6. As long as the insurer gets the minimum business from an agent, the insurer cannot terminate the agency of such agent.
7. All the information asked in a proposals form is relevant to the assessment of the risk.
8. ONCE the policy lapses there is no way the policy holder can re-start the policy
9. “Nomination” is not compulsory.
10. “Early” claims can be investigated by the insurer.

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.