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WorksheetsExam Practice Question Set_2
Total questions: 75
Worksheet time: 1hrs 15mins
When was the first written insurance policy recorded?
When Chinese traders used insurance as a preventive measure against piracy over 5,000 years ago
The insurance policy found on a Babylonian obelisk monument, with the code of King Hammurabi.
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.
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
Which of the following statement is incorrect concerning the direct marketing?
Direct marketing means where the company directly markets to customers through its own sales force which is made up of employees of the company.
Direct marketing means where the insurer directly communicates and solicits business with the prospective customer without going through an intermediary.
Direct marketing may involve various approaches such as: telemarketing mall marketing Internet or web -based marketing, worksite marketing.
Direct marketing means insurance company sells insurance products through insurance intermediaries directly appointed by the company.
Insurer shall follow the commission rates as prescribed by:
Myanmar Insurance Association (MIA)
Financial Regulatory Department (FRD)
Insurance Business Regulatory Board (IBRB)
Directorate of Investment and Company Administration.
Which of the following statement is incorrect concerning insurable interest?
Insurable interest is a person's legally recognized relationship to the subject matter of insurance.
The relationship between the person and the subject matter of insurance must be a legal
A person's legally recognized relationship to the subject matter of insurance gives them the right to effect insurance on it.
A thief in possession of stolen goods also have the right to insure them.
The two types of assignment are:
Conditional Assignment and Absolute Assignment.
Conditional Assignment and Unconditional Assignment.
Absolute Assignment and Temporary Assignment.
Permanent Assignment and Temporary Assignment.
Which of the following statement is incorrect concerning the insurance?
The loss due to the peril cannot be avoided by insurance.
The peril cannot be prevented through insurance.
insurance only tries to reduce the impact of the financial loss to the over or beneficiary.
The peril can be turned away by insurance cover.
Which of the following statement is incorrect concerning the Pure Risks and Speculative Risks?
Speculative risks are under the control of the person concerned.
Pure risks are not under the control of the concerned person.
In pure risks, there is a chance of loss, but no chance of gain.
Insurance covers both pure risks and speculative risks.
Which of the following statement is incorrect concerning the Moral Hazards?
Moral hazard refers to the character of the person, who is approaching the insurance company for insurance.
Moral hazards are losses that result from dishonesty.
Moral hazards are less difficult to assess than physical hazards.
Assessment of moral hazard are more difficult, and need experience and intuition, and also past history of the proposer.
Insurance Business Regulatory Board (IBRB) formerly the Insurance Business Supervisory Board (IBSB) was formed under:
A separate IBSB Law.
Insurance Business Law, 1996.
Insurance Business Law, 1997.
Myanmar Insurance Law, 1993.
Under which law private companies are allowed to operate insurance business in Myanmar?
Myanmar Insurance Law 1993.
Insurance Business Law, 1996.
Insurance Business Law, 1997.
Insurance Rules, 1998
In insurance, price satisfaction equation means:
Which of the below is not included in Underwriting Procedures:
Quotation.
Claim Payment
Issuing Cover Note, Insurance Certificate and Policy.
Premium Calculation.
The role of customer service and relationships is:
Exactly the same in the case of insurance and in other products.
Far more critical in the case of insurance than in other products.
Less critical in the case of insurance than in other products.
Not so important in the case of insurance business.
In customer relationship the first impression is created:
By being confident.
By being on time.
By showing interest.
By being on time, showing interest and being confident.
Which of the below is under the long-term goal in financial planning?
Buying a house.
Buying a TV set.
Education of one's child or retirement provision.
Vacation abroad.
Which of the below is incorrect with regard to the term 'Empty Nester’?
The term empty nester implies that the offspring have flown away leaving the Nest (the household empty).
This is the period when children have married and leaving the parents.
This is the time when one has emptied all his saving.
This is the period when children have migrated to other places for work, leaving the parents.
Which of the following statement is incorrect concerning inflation?
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time.
Inflation leads to a fall in the value of money.
Inflation will result increase in the value of money.
As a result of inflation, the purchasing power of one hard earned money gets eroded.
Tax planning is done to:
Evade tax as much as possible.
Avoid paying tax too much.
To determine how to gain maximum tax benefit from existing tax laws and for planning of income, expenses and investments taking full advantage of the tax breaks.
To mislead tax officers to reduce the amount of tax to be paid.
After reviewing the proposal papers and the medical reports, the underwriter may decide to accept the proposal as proposed O.R rate:
Original Rate (O.R)
Ordinary Rate (O.R)
Outsource Rate (O.R)
Occur Rate (O.R)
Which of the below statement is correct?
Rates are same as premiums.
Rates are not the same as premiums.
Rates are sometimes same as premiums.
None of the above.
If the Pure Premium is calculated and collected.
Elements of a proposal does not include.
Proposer's name.
Proposers address and contact details.
Details of subject matter of insurance
History of proposer’s University studies
The Unique Selling Proposition (USP) of term Assurance is:
Its low price, enabling one to buy relatively large amounts of life insurance on a limited budget.
It can be purchased for the whole life of the policy holder.
It can be cancelled at any time without losing any premium paid.
Policy holder can get regular payment of certain amount.
In handling objection, LAPAC approach means:
Listen, Apply, Personal Approach and Conduct.
Learning. Appreciation, Positive, Approach and Conduct.
Listen, Acknowledge, Probe, Answer, and Confirm.
Listen, Act, Persuade, Approach and Confirm.
In Personal Accident Insurance:
No medical examination may be required for renewal or fresh cover.
Medical examination is required for fresh cover.
Medical examination is required for renewal cover.
Medical examination is required for elderly people.
Which of the following statement is incorrect concerning the principle of indemnity?
Indemnity cannot apply to all types of insurance.
Indemnity can normally apply to Life Insurance and Personal Accident Insurance.
If the expected loss involved is greater than the cost of insurance, it needs insurance.
Life and personal accident insurances involve benefit policies rather than policies of indemnity.
Intimation of loss is to be made:
At the exact time of the loss.
After 15 days.
As soon as reasonably possible.
Any time after the loss.
Insurers prefer:
Risks that are equal to the standard risks.
Risks that are higher than the standard risks.
Ricks that are avoidable.
Risks that are significantly lower than the standard risks.
Which of the following statement is incorrect?
Insurance introduces security.
Insurance increases business efficiency.
Insurance creates equitable distributions of losses.
Insurance prevents accidents from happening.
Tied agents can:
Only sell policies provided by the company that employs them.
Only sell one product from a company.
Sell as many products as they like from insurance companies.
Sell insurance products only to their existing customers.
Which of the following is not a condition for insuring a risk?
Accidental Loss
Measurable Loss
Intentional Loss
Pure Risks.
In life insurance, if the risk is assessed to be greater than the standard:
It is described as above standard and lower premium is charged.
It is described as sub-standard and higher premium is charged.
It is described as sub-standard and lower premium is charged.
It is described as sub-standard and average premium is charged.
Which of the following is not good evidence of existence of insurable interest?
Insurance of a person in a family.
Insurance of a possession of things.
Insurance of legal rights & liability.
Insurance of monetary loss associated with gambling.
FRD stands for:
Financial Regulatory Division.
Financial Regulatory Directorate.
Financial Regulatory Department
Financial Ruling Department
Which of the following statement is incorrect concerning the Non-economic Loss?
Non-economic losses can be love and affection to the family.
Non-economic losses are not quantifiable in monetary terms.
Non-economic loss can be sentimental attachments, innovative and creative abilities, etc.
Non-economic losses are quantifiable in monetary terms.
4 ways of managing the risks include all with the exception of:
Prevent or Avoid risk.
Reduce risk.
Transfer risk
Increase risk
When a risk is retained, it means that
The risk is guarded against loss.
The cost of the damage or loss will be met, out of internal resources.
The risk is kept in the retainer.
The risk is maintained.
Which among the following would you recommend in order to seek protection against unforeseen events?
Insurance
Transactional products like bank FD's
Shares
Debentures
“Qualified” prospect for insurance solicitation are those people:
Who can pass the company underwriting requirements and who have one or more needs for insurance products.
Who are educated.
Whose qualifications are high.
None of the above.
Intangible product refers to:
Product that can be perceived directly by touch.
Product that can only be perceived indirectly.
Product that can be perceived directly or indirectly.
Product that cannot be perceived indirectly.
Choose the correct statement. Domiciliary Hospitalization means:
Expense incurred for medical treatment taken at hospital.
Expense incurred for medical treatment taken at home without being admitted to a hospital.
Expense incurred for medical treatment taken at clinic.
Expense incurred for medical treatment taken at hospital closer to the insured person's home.
In need analysis method, a sale person does the following:
Which of the following statements describes the meaning of persistency?
A saleperson insists the prospect to take the product he is offering.
Persistency is the percentage of policies or premiums introduced by a sale person in a certain year that have seen renewed in a subsequent year.
A sale person persistently approaches the prospect until he makes a sale.
A sale person relentlessly persuades a prospect to buy the insurance product.
Prospecting is:
The process of predicting how much premium can earn from a potential buyer of the life insurance produces.
The process of gathering names of people who can be approached for a sales interview.
The process of distributing prospectus of a life insurance company.
The process of introducing clients to another agent.
Career of insurance agent is rewarding not because of the reason below:
Being recognized by the society.
Being one's own employer.
Being able to cheat others.
Being able to help people.
The probability of risk will depend:
Partly on how frequently the peril may occur, and how severe its impact can be.
Only on how frequently the peril may occur.
Only on how severe its impact can be.
None of the above.
Which of the following statement is correct concerning the proximate cause?
Only first cause constitutes the proximate cause.
Only last cause constitutes the proximate cause.
Only the cause immediately before the last cause constitutes the proximate cause.
There must always be an insured peril involved; otherwise, the loss is definitely irrecoverable.
In "Bancassurance" Referral model means:
The bank supports the insurance company with its data base, while the sale of insurance products is done by the insurance company.
The employees of the bank take up the task of selling the products of the insurance company.
The employees of the bank and the insurance company both sell the insurance.
The insurance company refers to the bank of their products.
Which of the following statement is not a form of "Mis-selling"?
Policies being sold without proper reference to the needs of the buyer or his/ her risk appetite.
Benefits to be received being illustrated without spelling out what is the price/cost the customer actually has to pay.
Benefits of investment linked policies illustrated, but the customer not told that these benefits are not guaranteed but depends on investment performance of the insurer.
Different products are explained to customer so that the customer can make the right decision based on his needs.
Insurance Agent licenses are issued by:
Myanmar Insurance Association (MIA).
Financial Regulatory Department (FRD).
Insurance Business Regulatory Board (IBRB).
The insurer having agency agreement with the agent.
The types of licenses for agents shall be the following:
Life Insurance Agent, General Insurance Agent, Miscellaneous Insurance Agent.
Life Insurance Corporate Agent, General Insurance Corporate Agent.
Life Insurance Agent, General Insurance Agent.
B and C above.
An individual with an aggressive risk profile is likely to follow wealth---- investment style.
Consolidation
Gifting
Accumulation
Spending
What is the relation between investment horizon and return.
Both are not related at all.
Greater the investment horizon the larger the returns.
Greater the investment horizon the smaller the returns.
Greater the investment horizon more tax on the returns.
.............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.
co-payment
deductible
Sub limits and Disease specific capping
None of these
In investment planning one can reduce the risks by:
Not investing at all.
Investing all lifesavings in just one financial product.
Buying insurance.
Diversifying the investments in different places.
For life insurance salespersons, a large part of their income comes from the commissions for:
The renewal of the existing contracts.
The new contracts.
Charging high premiums on customers.
Claim payments.
The public health system provides health care for majority of the populations. The system operates at the:
National Level.
State and Division Level.
District level and township level as well as a limited extent at the village level.
All of the above.
Which of the below statement best describes a "testimonial"?
An endorsement from a satisfied customer.
Test result for a product in a benchmarking test.
List of tests that a product must pass.
Money required to test a product.
The important basis concept the agent has to keep in mind is that, do not recommend the customer to buy insurance.
It an insured can opt for a deductible when buying an insurance, it would be:
Economical.
Uneconomical.
Wasteful.
Expensive.
There are certain categories of occupations, professions and hobbies which are considered to be hazardous for which:
No insurance cover is available at any rates or terms.
An extra premium is charged.
The terms of acceptance are altered.
Both B and C above are correct.
Endowment Assurance Plan has:
Death benefit component only.
Survival benefit component only.
Both a death and a survival benefit component.
Both a death and a pension benefit component.
"Non-Par" Schemes means:
Policies which do not participate in the profit of the insurer.
With profit plans
Policies which are participating in the profit of the life insurer.
The policyholder would be eligible for the benefits generate from the profits of the insurer.
Decreasing Term Assurance plans have been marketed as:
A saving product.
Mortgage redemption and credit life insurance.
A whole life product.
An investment product.
Health insurance products in the nature of hospitalization products:
Cover the expenses incurred by an individual during hospitalization.
Cover the expenses incurred by an individual for usual visit to a clinic.
Cover the expenses incurred by an individual during a travel only.
Cover the expenses incurred by elderly people only.
Alternations, which increase the Risk, are:
Increasing the Sum-insured
Changing the address of the insured
Increasing the Term
Change of Insurance Plan (eg. Conversion of Term insurance Plan to whole-life insurance plan)
Without the Policy-Documentation in case of lost/damaged policy document, normally:
The claim would not be paid to the Claimant.
Full Claim Amount would not be paid to the Claimant.
The insurer can make the contract Null and Void and Forfeit all the premium paid
The Claim must be paid to the Claimant.
Level Annual Premium implies that:
Annual premium for all life-assureds is the same.
The same premium needs to be paid every year during the term of the policy.
Annual Premiums are same for all types of products.
Annual Premiums for same sex are the same.
Which of the below is not the standard age proof?
Certificate issued by Municipal Corporation.
Self-declaration with age/ date of birth.
School Certificate.
A and C above.
A Rider Benefit is:
A payment under a rider made by an insurance company on the occurrence of a specified event according to the terms and conditions.
A payment made by an insurance company to the insured on the occurrence during a ride on bicycle or car.
A payment made by an insurance company to the insured on the occurrence while riding a horse.
A payment made by an insurance company to the insured on the occurrence while riding on any vehicles or horses.
Measuring Human Life Value (HLV) is:
Based on wealth of the person.
Same as the measure of non-life property.
Based on an individual's expected net future earnings.
Based on the size of the family of the person.
Which of the below statement best describes the concept of claim? Choose the most appropriate option.
A claim is a demand that the insured should fulfill his duty in accordance with the contract.
A claim is a demand that the insurer should make good the promise specified in the contract.
A claim is a demand that the insured should make good the commitment specified in the agreement.
A claim is a demand that the insurer asked from the insured.
Given below is a list of policies: Identify under which type of policy, the claim payment is made in the form of periodic payments.
Money-back policy.
Unit linked insurance policy.
Return of premium policy.
Term insurance policy.
Which of the below death claim will be treated as an early death claim?
If the insured dies within three years of policy duration.
If the insured dies within five years of policy duration.
If the insured dies within seven years of policy duration.
If the insured dies within ten years of policy duration.
Choose the correct one from below statements. No deduction are made from claim. Payment in respect of wear and tear, depreciation, etc., for:
A. Policies strictly applying indemnity principle.
B. Reinstatement policies
C. New for old cover
D. Agreed value policies or valued policies
