NEW
Font size
WorksheetsExam Practice Question Set 4
Total questions: 75
Worksheet time: 1hrs 15mins
In 1666, the great fire of London destroyed more than 13,000 houses. To counter such events in future, fire office, the first fire insurance company was started, in _______. (1 Point)
1680
1860
1826
1960
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? (1 Point)
A. MMK 100,000
B. MMK 200,000
C. MMK 150,000
D. MMK 175,000
General insurance policies are mostly for ....... (1 Point)
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? (1 Point)
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. (1 Point)
A. Inquest report
B. Claim form
C. Certificate of burial or cremation
D. Hospital’s certificate
Which of the following statement is not concerning with the direct marketing? (1 Point)
A. Direct marketing means where the company directly markets to customers through its own sales force which is made up of employees of the company.
B. Direct marketing means where the insurer directly communicates and solicits business with the prospective customer without going through an intermediary.
C. Direct marketing may involve various approaches such as: telemarketing, mall marketing, Internet or web-based marketing, worksite marketing.
D. Direct marketing means insurance company sells insurance products through insurance intermediaries directly appointed by the company.
Mis-selling may be various forms. Please choose the statement which does not mean mis-selling. (1 Point)
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. (1 Point)
A. IBRB
B. Insurer
C. Insured Person
D. Government
In Insurance context, indemnity means: (1 Point)
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; (1 Point)
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.
Different classes of insurance business include are: (1 Point)
A. Life Insurance, Marine Insurance & Fire Insurance
B. Life Insurance, Non-life Insurance & Miscellaneous Insurance
C. Life Insurance, Health Insurance & Non-Life Insurance
D. Fire Insurance, Marine Insurance & Miscellaneous Insurance.
With regard to principle of proximate cause which of the below statement is incorrect? (1 Point)
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. (1 Point)
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, (1 Point)
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 ............ (1 Point)
Catastrophic risks
Speculative risks
Dynamic Risks
Static Risks
Choose the correct answer from the below statements: (1 Point)
A. Myanmar Insurance Business Law was promulgated in 1996 and Insurance Business Rules in 1997
B. Myanmar Insurance Business Law was promulgated in 2012 and Insurance Business Rules in 2013
C. Myanmar Insurance Business Law was promulgated in 1999 and Insurance Business Rules in 2000
D. Myanmar Insurance Business Law was promulgated in 2014 and Insurance Business Rules in 2015
.............. refers to the attitude and ethical conduct of the insured. (1 Point)
A. Peril
B. Hazard
C. Moral hazard
D. Physical hazard
Which of the below expenses does not fall under Consequential Loss? (1 Point)
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? (1 Point)
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; (1 Point)
A. Referral Model
B. Work-site Marketing
C. Working as a corporate agent
D. Both A and C
The first point for service: (1 Point)
A. Point of sale, one of the critical issues involved in purchase of life insurance is to determine how the prospect can benefit from the insurance cover he is considering to buy.
B. Do not recommend insuring where the risk can be managed otherwise.
C. The agent has to support the customer in filling out the proposal for insurance.
D. One must purchase third party insurance if he owns a vehicle because it is mandatory if one wants to drive on a public road.
Under which law private companies are allowed to operate insurance business in Myanmar? (1 Point)
A. Myanmar 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: (1 Point)
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: (1 Point)
A. A bank gives assurance to its deposit customers that they will get a specified interest on their deposited monies.
B. Insurance solicitation where, 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? (1 Point)
A. Maximum tax benefit
B. Reduced tax burden as a result of prudent investments
C. Tax evasion
D. Full advantage of tax breaks
When was the private companies allowed to participate in the insurance business? (1 Point)
A. 2012
B. 2013
C. 1997
D. 1996
Risk tolerance is (1 Point)
A. The amount of time available to attain a financial objective.
B. A measure of how much risk someone’s is willing to take in purchasing an investment.
C. The ease with which an asset can be bought or sold.
D. The extend to which one seeks to diversify or spread the investments to reduce the risks.
Savings can be considered as a composite of two decisions. Choose them from the list below. (1 Point)
A. Risk retention and reduced consumption
B. Gifting and accumulation
C. Spending and accumulation
D. Postponement of consumption and parting with liquidity
Which one of the following is incorrect related to Cash Planning? (1 Point)
A. Preparing the Budget
B. Analyzing the expenses and income flow over last six months
C. Predict future monthly income and expenses over the year.
D. Predict when to die.
The AIDA stages are similar to the following stages of selling process: (1 Point)
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: (1 Point)
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.
broad categories of risk include: (1 Point) (i) Catastrophic risk and important risk (ii) Certain and uncertain risks (iii) Included and excluded risks. (iv) Financial and Non-financial risks (v) Dynamic risks and Static risks (vi) Pure risk and Speculative risk (vii) Fundamental risk and particular risk
A. (i), (iii), (iv), (v), & (vi)
B. (i), (ii), (v), (vi) & (vii)
C. (ii), (iii), (iv), (v) & (vi)
D. (i), (iv), (v), (vi), (vii)
Which of the following statement is correct? (1 Point)
A. There are three types of hazards: physical hazards, moral hazards, and personal hazards.
B. There are three types of hazards: physical hazards, moral hazards, and mental hazards.
C. There are two types of hazards: physical hazards and moral hazards.
D. There are two types of hazards: physical hazards and mental hazards.
The impact of family history on mortality risk has been studied for: (1 Point)
A. Heredity.
B. Occupation.
C. Diet.
D. Income.
What is meant by customer lifetime value? (1 Point)
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.
............ 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. Liability
D. Asset
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)
A. 1 year
B. 5 years
C. 4 years.
D. 6 months.
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)
Intermediate allocation of resources
Allocation of resources across time
Temporary allocation of resources
Internal allocation of resources temporarily
The term “Par” implies that: (1 Point)
A. Policies which are participating in the profits of insurer.
B. Policies which do not participate in the profits.
C. Without profit plan
D. Benefits not linked to any index of the benchmark.
In Policy documents, the Schedule follows: (1 Point)
A. The Proviso
B. The Preamble
C. The Operative Clause
D. None of the above
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)
A. Sum insured
B. Premium
C. Annuities
D. Survival Benefits
.............. is primarily a savings program, which is protected by provision of insurance against the contingency of premature death. (1 Point)
A. Term assurance plan
B. Endowment plan
C. None of these.
D. Both of these.
Which of the below statement is correct? (1 Point)
A. Illness was caused due to the sin committed by the concerned person.
B. Illness was caused due to various factors relating to environment, sanitation, personal hygiene and diets.
C. Health was considered to be “Divine Gift”.
D. Illness was due to treatment by modern medicine.
Please choose the incorrect one. (1 Point)
A. Insurable Interest is legally recognized relationship to the subject matter of insurance that gives them the right to effect insurance on it.
B. A thief in possession of stolen goods does not have the right to insure them.
C. Any person is regarded as having an insurable interest in the life of their spouse.
D. A creditor can insure the debtor’s any properties.
Health insurance basically deals with ................ (1 Point)
A. Sickness and expenses incurred due to sickness
B. Health people with potential sickness
C. Hospitalization only
D. Critical illness only
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)
A. Individual Coverage
B. Individual Floater
C. Family Floater
D. None of these.
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. Bank Credit Card Division
D. Gathering people to buy the Group insurance
AIDA is the acronym for. (1 Point)
A. Attention, Interest, Desire, Application
B. Attention, Incentive, Desire, Action
C. Attention, Interest, Desire, Action
D. Attention, Interest, Demand, Action
In handling objection, LAPAC approach means. (1 Point)
A. Listen, Apply, Personal Approach and Conduct.
B. Learning, Appreciation, Positive, Approach and Conduct.
C. Listen, Acknowledge, Probe, Answer and Confirm.
D. Listen, Act, Persuade, Approach and Confirm.
Which of the below statement is incorrect as to the Bonus payment? (1 Point)
A. Bonus is paid as an addition to the basic benefit payable under a contract.
B. The most common form of bonus is reversionary bonus.
C. Bonus is not payable on surrender on any condition.
D. The company is expected to declare such bonus addition each year.
Policy Allocation Charge (PAC) comprises of. (1 Point)
A. Agents’ commission, policy setup cost, administrative costs and statutory levies
B. Mortality charge, agent’s commission, administrative costs and statutory levies
C. Morbidity charge, agent’s commission, administrative costs and statutory levies
D. Expense for keeping the policy in a safe place.
Discounted Present Value. (1 Point)
A. The value at which the life insurer has purchased or acquired its assets.
B. The worth of the life insurer’s assets in the marketplace.
C. Estimating the future income stream from various assets and discounting them to the present.
D. None of these.
Bonuses are generally only declared ....... (1 Point)
A. Twice a year
B. Once a year
C. Every month
D. Quarterly
Which of the below is not the standard age proof? (1 Point)
A. Certificate issued by Municipal Corporation
B. Self- declaration with age/ date of birth
C. School certificate
D. A and C above
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. His bank transaction slip affecting payment to the insurance company.
Which of the below statement is incorrect? Prospectus issued by the insurer is. (1 Point)
A. Simple
B. May be called “Offer-at-Large”.
C. An offer to the public
D. Complex
Apart from the proposal form, some other important documents are. (1 Point)
A. The personal statement containing personal and family history details.
B. Police criminal record
C. Proof of age
D. A and C above
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. Maturity claim 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 policy
B. Unit linked insurance policy.
C. Return of premium policy
D. Term insurance policy
Which of the below death claim will be treated as an early death claim? (1 Point)
A. If the insured dies within three years of policy duration
B. If the insured dies within five years of policy duration
C. If the insured dies within seven years of policy duration
D. If the insured dies within ten years of policy duration
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. Surrender value paid on surrender of an endowment policy by the policyholder.
............ 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
---------------- are related to changes in the value of assets, like, shares or property. (1 Point)
Catastrophic risks
Financial risks
Dynamic risks
Static risks
Which of the below statement best describes a “testimonial”? (1 Point)
A. An endorsement from a satisfied customer.
B. Test result for a product in a benchmarking test.
C. List of tests that a product must pass.
D. Money required to test a product.
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 compensation of hospitalization expenses.
The Second Market Development Parameter, Penetration is. (1 Point)
A. A measure of the reach and spread of insurance in a given population.
B. A measure of the amount of resources expended towards securing insurance cover.
C. The proportion of an economy’s income it spends on insurance.
D. The ratio of total premiums to Gross Domestic Product (GDP) (Premium/ GDP).
CPD stands for. (1 Point)
A. Continuous Program Development.
B. Continuous Professional Development.
C. Chattered Professional Diploma.
D. Central Process Distribution.
Repudiation of death claim means. (1 Point)
A. Refusal of payment for a death claim due to the claim amount is higher than insurer has expected.
B. Rejection of death claim when it is detected by the insurer that the proposer had made any incorrect statement or had suppressed material facts relevant to the policy.
C. Rejection of a death claim based on the assumption that the claim application is not complete.
D. Rejection of the death claim as the death is too early and the policy is not matured yet.
What are five major indicators of Service Quality Model? (1 Point)
A. Reliability, Responsiveness, Assurance, Empathy and Ethics.
B. Reliability, Responsiveness, Assurance, Empathy and Tangibles.
C. Courteousness, Responsiveness, Customer-Centric, Assurance and Empathy.
D. Responsiveness, Accuracy, Courteousness, Politeness and Empathy.
When is the best time to start financial planning? (1 Point)
A. Post retirement
B. As soon as one earns money
C. After marriage
D. Only after one gets rich
Term insurance is valid only during a certain time period that has been specified in the contract. The term can range. (1 Point)
A. From one day to one year
B. From as short as it takes to complete an airplane trip to as long as forty years.
C. From 60 days to one year
D. Less than one year
If moral hazard is suspected, the underwriter would. (1 Point)
A. Accept the proposal only with the high premium.
B. Not accept the proposal at any cost.
C. Accept the proposal on certain special terms and conditions.
D. Accept the proposal as a non-standard risk.
P.M. L stands for ------------. (1 Point)
A. Possible Maximum Loss
B. Probable Maximum Loss
C. Possible Minimum Loss
D. Probable Minimum Loss
