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WorksheetsExam Practice Question Set1
Total questions: 75
Worksheet time: 1hrs 3mins
When was the first written insurance policy recorded?
A. When Chinese traders used insurance as a preventive measure against piracy over 5,000 years ago.
B. The insurance policy found on a Babylonian obelisk monument, with the code of King Hammurabi.
C. When fire office, the first fire insurance company was started in 1680 after the great fire of London destroyed more than 13000 houses in 1666.
D. When traders in London used to gather at Lloyd’s coffee house and agree to share the losses of goods, due to piracy; or the ship-sinking due to bad weather or other reasons.
In fire insurance, the probability of risk would not depend upon factors, such as:
A. The nature of construction of the house.
B. Its location (residential, commercial, or industrial area).
C. Goods-stored in it.
D. Value of the house.
There are 10,000 cars in a city. On an average it is expected that 1.5% of the cars meet with an accident. It is expected the loss suffered by each of the 150 car owners will be MMK 10,000,000. How much will be the premium required to be contributed by each car owner to cover the losses?
A. MMK 1,000,000
B. MMK 150,000
C. MMK 200,000
D. MMK 250,000
Three main categories of insurance are ............
A. Life Insurance, Health Insurance and Motor Insurance
B. Life Insurance, General Insurance and Fire Insurance
C. Life Insurance, Non-Life Insurance and Marine Insurance
D. Life Insurance, Health Insurance and Non-Life Insurance
General insurance policies are mostly for .......
A. 6 months
B. 1 years
C. 5 years
D. 7 years
A good salesman should have two basic qualities. Which are those two qualities?
A. Affection and zeal to succeed.
B. Patience and pro-activeness.
C. Empathy and ego drive.
D. Hunger for growth and self-confidence.
Given below is a list of documents to be submitted for a normal death claim by all beneficiaries in the event of death of life insured. Pick the odd one out which is additionally required to be submitted only in case of death by accident.
A. Inquest report
B. Claim form
C. Certificate of burial or cremation
D. Hospital’s certificate
Which is not an insurance distribution channel?
A. Agency
B. Bancassurance
C. Multilevel Marketing
D. Direct Marketing
Mis-selling may be various forms. Please choose the statement which does not mean mis-selling.
A. Policies being sold without proper reference to the needs of the buyer or his/her risk appetite.
B. Benefits to be received being illustrated without spelling out what is the price/cost the customer actually has to pay.
C. Agent explained the customer about benefits, terms and conditions of the product correctly.
D. Selling any insurance product by providing wrong information on insurance benefits and policy terms and conditions deviating from what has been described in the policy.
"Individual Insurance Agent" means an individual appointed by ......... for the purpose of soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance.
A. IBRB
B. Insurer
C. Insured Person
D. Government
In Insurance context, indemnity means:
A. The insurance company compensates the insured only to the extent of loss.
B. Insurance should place the insured in the same financial position after the loss.
C. This principle ensures that insurance cannot be used to make profit.
D. All of the above.
The proximate cause of a loss means;
A Effective or dominant cause involves in an accident or occurrence.
B An occurrence which is nearest to the policyholder’s (insured’s) premises.
C A cause involves in an accident but excluded in the policy.
D Every cause leading to a loss covered by the policy.
With regard to principle of proximate cause which of the below statement is incorrect?
A. There must always be an insured peril involved; otherwise the loss is definitely irrecoverable.
B. If a single cause is present, if the cause is an insured peril, the loss is covered.
C. If a single cause is present, if the cause is an uninsured or expected peril, it is not covered.
D. If the uninsured perils arising directly from insured perils, the loss is not covered, e.g. water damage (uninsured peril) proximately caused by an accident fire (insured peril) in the case of a fire policy.
In ............. , the rights, title and interest of the assignor passes completely to the assignee.
A. Conditional Assignment
B. Absolute Assignment
C. Nomination
D. Conditional Nomination
If a person dies whilst insured by two or more separate life insurance policies,
A. Each insurance company will pay proportionately because the life insurances subject to indemnity.
B. Each insurance company has to pay in full, because the life insurances are not subject to indemnity.
C. Both A & B are correct.
D. Both A & B are incorrect.
Horse-racing, lottery, gambling or speculating in stock-markets are ...........
A. Catastrophic risks
B. Speculative risks
C. Dynamic Risks
D. Static Risks
A train accident is a ............., as, it affects a lot of people.
A. Fundamental risk
B. Particular risk
C. Catastrophic risk
D. Dynamic Risk
............. refers to the attitude and ethical conduct of the insured.
A. Peril
B. Hazard
C. Moral hazard
D. Physical hazard
Which of the below expenses does not fall under Consequential Loss?
A. Expenses for cleaning-up and removal of debris.
B. Cost for setting up a new company.
C. Loss of rent, production, revenue, and profits; until normalcy is restored.
D. Possible liability losses for third-party injuries.
How would the individual’s decision to retain the risk, impact the surviving dependents?
A. They may be required to dispose-off the assets, such as, cars, motor-cycles, etc., which may be seen as less important in the immediate situation.
B. House-wives may need to learn new skills, in order to start working, possibly in jobs that are beneath their status.
C. The family may need to move to a new dwelling in new surroundings, to avoid the disrespect of their reduced status in life.
D. All of the above.
Distribution Models of Bancassurance are as follows;
A. Referral Model
B. Work-site Marketing
C. Working as a corporate agent
D. Both A and C.
Insurance agent licenses will be issued by ------- .
A. Myanmar Insurance Association (MIA).
B. Financial Regulatory Department (FRD).
C. Insurance Business Regulatory Board (IBRB).
D. A and B above.
Under which law private companies are allowed to operate insurance business in Myanmar?
A. Myanma Insurance Law 1993.
B. Insurance Business Law, 1996
C. Insurance Business Law 1997
D. Insurance Rules, 1998.
Types of licenses for agents shall be the following:
A. Life Insurance Agent, General Insurance Agent, Composite Agent.
B. Life Insurance Corporate Agent, General Insurance Corporate Agent.
C. Life Insurance Agent, General Insurance Agent.
D. B and C above.
Bancassurance means:
A. A bank gives assurance to its deposit customers that they will get a specified interest on their deposited monies.
B. Insurance solicitation were, banks, micro insurance institutions or credit institutions, act as insurance agents.
C. Only a bank can do insurance solicitation for the bank customers.
D. A bank can do insurance solicitation only when the bank has an insurance company.
Which among the following is not an objective of tax planning?
A. Maximum tax benefit
B. Reduced tax burden as a result of prudent investments
C. Tax evasion
D. Full advantage of tax breaks
One must goes through various stages in life as –
A. Learner, partner, provider, parents, empty nester, the twilight years
B. Learner, earner, partner, parent, provider, empty nester, the twilight years
C. Learner, empty nester, partner, provider, parents, empty nester, the twilight years
D. None of these are correct.
Savings can be considered as a composite of two decisions. Choose them from the list below.
A. Risk retention and reduced consumption
B. Gifting and accumulation
C. Spending and accumulation
D. Postponement of consumption and parting with liquidity
................ implies that the offspring have flown away leaving the nest [the household] empty.
A. Learner
B. Partner
C. Empty nester
D. Provider
The AIDA stages are similar to the following stages of selling process:
A. ‘Pre-approach’, ‘approach’, ‘interview’, and ‘close’, in the selling process.
B. ‘Pre-approach’, ‘application’, ‘interview’, and ‘close’, in the selling process.
C. ‘Pre-approach’, ‘approach’, ‘intervene’, and ‘close’, in the selling process.
D. ‘Pre-approach’, ‘approach’, ‘interview’, and ‘open’, in the selling process.
Misrepresentation means:
A. Missing a representation.
B. Making an incorrect statement when completing a proposal.
C. Representative missing to show up at appointed time.
D. Unqualified person making a representation.
“Qualified” prospect for insurance solicitation are those people:
A. Who can pass the company underwriting requirements and who have one or more needs for insurance products
B. Who are educated
C. Whose qualifications are high
D. None of the above.
A prospect buys when .................................
A. the product price is seen to be commensurate with the satisfaction available
B. the product price is seen to be disproportionate with the satisfaction available
C. the product quality is seen to be superfluous with the satisfaction available
D. None of these
The impact of family history on mortality risk has been studied for:
A. Heredity.
B. Average Longevity of the Family.
C. Family Environment.
D. All of the above.
What is meant by customer lifetime value?
A. Sum of costs incurred while servicing the customer over his lifetime.
B. Rank given to customer based on business generated.
C. Sum of economic benefits that can be derived by building a long-term relationship with the customer.
D. Maximum insurance that can be attributed to the customer.
Identify the scenario where a debate on the need for insurance is not required. (1 Point)
A. Property insurance
B. Business liability insurance
C. Motor insurance for third party liability
D. Fire insurance
One of the methods of reducing insurance cost of an insured is ............. (1 Point)
A. Reinsurance
B. Deductible
C. Co-insurance
D. Rebate
One of the principle purposes of saving and investing is to achieve inter-temporal allocation of resources. Inter-temporal allocation of resources means: (1 Point)
A. Allocation of resources across time
B. Postponement of consuming the resources
C. Saving and Investment
D. None of the above
Decreasing Term Assurance plans have been marketed as: (1 Point)
Mortgage redemption and Credit life
Money Back
Loan Payment
with Profit Plan
In the case of pensions, a capital sum, which we may call a corpus or total consideration gets liquidated in part or whole through its conversion into a stream of regular income payments. These are known as ......... (1 Point)
B. Premium
C. Bonus
D. Sum assure
.............. is primarily a savings program, which is protected by provision of insurance against the contingency of premature death. (1 Point)
A. Term Insurance plan
B. Endowment Insurance plan
C. Return of Premium
D. Whole Life Plan
One can choose a retirement age between 55 and 60 years with a condition that there should be a clear gap of _____________ between the date of joining and the retirement age chosen. (1 Point)
B. 3 years
C. 2 years
D. 1 years
In ......... policy, the family consisting of spouse, dependent children and dependent parents are offered a single sum insured which floats over the entire family. (1 Point)
B. Co - Payment
C. Critical illness Plan
D. Fixed Benefit Plan
The public health system provides health care for majority of the populations. The system operates at the .................. (1 Point)
A. National Level
B. State and Division Level
C. District level and township level as well as limited extent at the village level
D. All of the Above
Which of the below is incorrect for a group owner who can take group health insurance policy? (1 Point)
A. An employer
B. An association
C. An organization established for the purpose of taking group health insurance policy
D. Bank Credit department
..............is a cost-sharing requirement under a health insurance policy that provides that the insurer will not be liable for a specified amount in case of indemnity policies and for a specified number of days/hours in case of hospital cash policies. (1 Point)
A. co-payment
B. deductible
C. Sub limits and Disease specific capping
D. Special flexi plan
Which of the below statement is incorrect as to the Bonus payment? (1 Point)
A. The most common form of bonus is reversionary bonus.
B. Bonus is not payable on surrender on any condition.
C. The company is expected to declare such bonus addition each year.
D. Bonus are additional payment of basic plan.
............. is the excess of value of assets over value of liabilities. If it is negative, it is known as a strain. (1 Point)
A. Profit
B. Surplus
C. Bonus
D. Reserves
Which of the below is not the standard age proof? (1 Point)
A. Self- declaration with age/ date of birth
B. School certificate
C. Passport
D. Birth certificate
What would be the sufficient proof of continuance of insurance for an individual member of Group Insurance Scheme? (1 Point)
A. His individual renewal premium receipt
B. His salary slip showing deduction of premium from salary.
C. Notification from the insurance company affecting his insurance renewal.
D. Certificate of Insurance
Which of the below statement is incorrect? Prospectus issued by the insurer is:(1 Point)
A. May be called “Offer-at-Large”.
B. An offer to the public
C. Simple
D. Complex
In Policy documents, the Schedule follows:(1 Point)
A. The Proviso
B. The Preamble
C. The Operative Clause
D. Attestation
Apart from the proposal form, some other important documents are: (1 Point)
A. The personal statement containing personal and family history details.
B. Proof of age
C. Police Criminal Record
D. Both A & B
In life insurance which of the below is not a valid claim payment? (1 Point)
A. Retirement benefit payment
B. Survival benefit payment
C. Death claim payment
D. Money Back payment
Given below is a list of policies. Identify under which type of policy, the claim payment is made in the form of periodic payments? (1 Point)
A. Money Back Plan
B. With Profit Plan
C. Endowment insurance
D. Whole Life insurance
Which of the below death claim will be treated as an early death claim? (1 Point)
A. Within 3 Years
B. After 3 Years
C. 4 years
D. 5 years
Given below are some events that will trigger survival claims. Identify which of the below statement is incorrect? (1 Point)
A. Claim paid on maturity of a term insurance policy
B. An installment payable upon reaching the milestone under a money-back policy
C. Claim paid for critical illness covered under the policy as a rider benefit
D. Claim for Hospital bill
............ is the process of gathering names of people whom one can approach to secure a sales interview.(1 Point)
A. Servicing
B. Approaching
C. Presentation
D. Prospecting
............ may be defined by the percentage of policies/premiums introduced in a certain year that have been renewed in subsequent years. (1 Point)
B. Consistency
C. Renewal of Policy
D. Rebait
The most common reason for taking out life insurance is: (1 Point)
A. For saving and Investment.
B. For death and dreaded disease coverage
C. For protection of an individual’s own life
D. For Riders benefit claim
Term insurance is valid only during a certain time period that has been specified in the contract. The term can range: (1 Point)
A. Whole Life
B. 55 - 65 Years
C. as short as an Airplane Trip from up to 40 years
D. 10 yaers
One of the important techniques that one can use for handling objections is known as (1 Point)
A. LAPAC
B. AIDA
C. ServQual
D. CLV
P.M.L stands for A. -----------. (1 Point)
A. Maximum Possible Loss
B. Probable Maximum Loss
C. Possible Minium Loss
D. Probable Minium Loss
An annuity is purchased with a lump sum payment and begins income payments within 1 year is ?
A. Single premium immediate annuity
B. Periodic deferred annuity
C. Single premium deferred annuity
D. Flexible deferred annuity
What is the risk classification those who are insurable, but present a higher than average risk
A. Standard
B. Preferred
C. Sub-Standard
D. Declined
The legal transfer of all of part of a policy owner's right, title or interest is called:
A. Assignment
B. Waiver
C. Modification
D. Nomination
What do employees receive under a group life contract?
A. individual Policy
B. Certificate of Insurance
C. Master Policy
D. Buyer's Guide
…….. policies are sometimes asked for as collateral security by financial institutions.
A. Non- life insurance
B. Life insurance
C. General Insurance
D. None of these
-------- make insurance a condition for grant of loans.
A. Public institutions
B. Insurance institutions
C. Financial institutions
D. Religious institutions
---------- don’t need to conduct medical examination to check the insurability of a life to be insured.
A. Non-medical underwriting
B. Financial underwriting
C. Medical underwriting
D. Financial Planning
------- may be said to exist when certain circumstances or characteristics of an individual’s financial situation, lifestyle and habits, reputation and mental health indicate that he or she may intentionally engage in actions that increase the risk.
A. Physical hazard
B. Occupational hazard
C. Moral Hazard
D. Accidental hazard
Which statement is correct? The purpose of MIA is ;
Acts as the secretariat of the IBRB
Nominates suitable and qualified Prospective agents to FRD
Develops the insurance agency force by providing training and facilitating insurance agent's qualification examination
Ensure all insurance agents properly conduct their business in compliance with the regulations
An event or incident that may cause a loss is called, a ----------
A. Risk
B. Hazard
C. Peril
D. Moral
------ refers to the characteristics and attitude of the person who is proposed to be insured.
Peril
Risk
Moral hazard
Physical hazard
Insurance can also be defined as a -------- to spread the loss, caused by the particular risk.
A. Comparative arrangement
B. Co- operative arrangement
C. Commercial arrangement
D. Corporate arrangement
