Test Your Traditional Plan Knowledge
Questions and Answers
- 1.
Which age proof cannot be accepted as STD age proof?
- A.
LIC policy kit
- B.
School certificate
- C.
Birth certificate
- D.
PAN card
- E.
All of the above.
Correct Answer
A. LIC policy kitExplanation
The LIC policy kit cannot be accepted as STD age proof because it does not provide any information about the individual's age. It is a document related to an insurance policy and does not contain any details regarding the person's date of birth or age. Therefore, it cannot be used as a valid age proof document.Rate this question:
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- 2.
Which age proof cannot be accepted as STD age proof?
- A.
LIC policy kit
- B.
School certificate
- C.
Birth certificate
- D.
PAN card
- E.
All of the above.
Correct Answer
A. LIC policy kitExplanation
The LIC policy kit cannot be accepted as STD age proof because it does not provide any information about the individual's age. It is a document related to an insurance policy and does not serve as a valid proof of age. On the other hand, a school certificate, birth certificate, and PAN card are commonly accepted as age proofs as they provide information about the individual's date of birth. Therefore, the correct answer is LIC policy kit.Rate this question:
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- 3.
What does follow up code KY2 specify
- A.
AML-Address proof required.
- B.
AML-Identity proof required
- C.
AML-Income proof required
- D.
AML-Photo required
- E.
None of the above
Correct Answer
B. AML-Identity proof requiredExplanation
The follow-up code KY2 specifies that AML-Identity proof is required. This means that in order to proceed with the specified code, the individual or entity must provide proof of their identity as per the Anti-Money Laundering (AML) regulations. This could include documents such as a passport, driver's license, or any other form of identification that is accepted as valid proof.Rate this question:
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- 4.
What is the abbreviation for HUF?
- A.
Hindu United Family
- B.
Hindu Undividing Factor
- C.
Hindu Undivided Forever
- D.
Hindu Undivided Family
- E.
None of the above
Correct Answer
D. Hindu Undivided FamilyExplanation
The correct answer is Hindu Undivided Family. HUF is an abbreviation commonly used in Indian taxation and legal contexts to refer to a Hindu Undivided Family. It is a legal entity that consists of a family unit governed by the Hindu law, where the members are lineal descendants of a common ancestor and share a joint family property. The abbreviation is used to simplify and refer to this concept in various legal and financial documents.Rate this question:
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- 5.
Which of the following factors are not allowed as per the Underwriting features of Term Plan?
- A.
LA/Proposer concept
- B.
Grand daughter is the nominee
- C.
Premium amount 5000/- annually
- D.
Smoker concept
- E.
All of the above
Correct Answer
A. LA/Proposer conceptExplanation
The LA/Proposer concept is not allowed as per the Underwriting features of Term Plan. This means that the life assured (LA) and the proposer cannot be different individuals. In other words, the person whose life is being insured must also be the one who is applying for the insurance policy.Rate this question:
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- 6.
In case the client has agricultural income and does not have a PAN Card (non-mandatory), what stand will underwriting take for issuance of the policy? The premium in this case is Rs 1, 00,000/-
- A.
Underwriting will insist on a PAN card application
- B.
Declaration in lieu of PAN card may be submitted along with copy of bank statement
- C.
Form 16 is required as an alternative
- D.
Policy cannot be issued
Correct Answer
B. Declaration in lieu of PAN card may be submitted along with copy of bank statementExplanation
If the client has agricultural income and does not have a PAN Card, underwriting will accept a declaration in lieu of the PAN card along with a copy of the bank statement. This means that the client can provide a written statement stating their income details instead of the PAN card, as well as a copy of their bank statement as proof of their financial situation. This allows the client to proceed with the issuance of the policy.Rate this question:
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- 7.
What does Tier 2 medical include?
- A.
MER + RUA + FBS + Lipids
- B.
MER + RUA
- C.
MER + RUA + FBS + Lipids + ECG + HIV
- D.
TMT
Correct Answer
A. MER + RUA + FBS + LipidsExplanation
Tier 2 medical includes the following tests: MER (Medical Examination Report), RUA (Routine Urinalysis), FBS (Fasting Blood Sugar), and Lipids. These tests are commonly performed to assess an individual's overall health and detect any potential medical conditions or abnormalities. The inclusion of these specific tests in Tier 2 medical suggests that they are considered important for evaluating an individual's health status.Rate this question:
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- 8.
In case of monthly mode, what would be the initial premium amount to be collected from the customer?
- A.
3 months instalment premium
- B.
2 months instalment premium
- C.
1 months instalment premium
- D.
6 months instalment premium
Correct Answer
A. 3 months instalment premiumExplanation
The initial premium amount to be collected from the customer in monthly mode would be the 3 months instalment premium. This means that the customer would need to pay the premium for the first three months upfront.Rate this question:
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- 9.
In case, the client opts for a sum assured of Rs 50, 00,000, which calls for mandatory medicals and he has a mentioned his occupation as Cash receiver at Bank of Baroda. What will be the Underwriting action on this case in terms of staff discount?
- A.
Give staff discount
- B.
Call for certificate from employer
- C.
Do not allow staff discount.
- D.
Call for the photo of client while working in bank as substantial evidence
- E.
None of the above.
Correct Answer
A. Give staff discountExplanation
The underwriting action in this case would be to give staff discount. This is because the client mentioned his occupation as a cash receiver at Bank of Baroda, which indicates that he is an employee of the bank. As a result, he would be eligible for a staff discount on the sum assured of Rs 50,00,000.Rate this question:
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- 10.
Which of the following product requires Age proof as a mandatory document
- A.
India First Simple benefit Plan
- B.
India First Mahajeevan Plan
- C.
India First Term plan
- D.
All of the above
- E.
None of the above
Correct Answer
D. All of the aboveExplanation
All of the above products require age proof as a mandatory document because age is an important factor in determining the eligibility and premium rates for life insurance policies. Age proof helps the insurance company assess the risk associated with insuring an individual and calculate the appropriate premium amount. Therefore, for all the mentioned products (India First Simple benefit Plan, India First Mahajeevan Plan, India First Term plan), age proof is required to ensure the accuracy of the policy and premium calculations.Rate this question:
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- 11.
Where premium amount is more than Rs. 1, 00,000 per annum, which of the following documents will you take from the customer?
- A.
Identity proof, Residence proof, Income proof, Pan card
- B.
Identity proof, Residence proof, Pan Card
- C.
Residence proof, Income Proof, Pan Card
- D.
Identity proof, Residence proof, Income Proof
Correct Answer
A. Identity proof, Residence proof, Income proof, Pan card -
- 12.
What is the maximum age at entry for Term Plan?
- A.
55 yrs
- B.
60 yrs
- C.
50 yrs
- D.
65 yrs
Correct Answer
B. 60 yrsExplanation
The maximum age at entry for a Term Plan is 60 years. This means that individuals up to the age of 60 can apply for a Term Plan. After this age, they may not be eligible for coverage under this specific plan.Rate this question:
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- 13.
Which questionnaire can be used to get the detailed information of the client employed in Indian Air Lines?
- A.
Aviation Questionnaire
- B.
Armed force Questionnaire
- C.
NRI Questionnaire
- D.
Occupation Questionnaire
Correct Answer
A. Aviation QuestionnaireExplanation
The Aviation Questionnaire is the correct answer because it specifically pertains to clients employed in Indian Air Lines. This questionnaire would likely include questions about the client's job role, responsibilities, and any specific requirements or qualifications related to their position in the airline industry.Rate this question:
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- 14.
If a client does not have any evidence of age, what suggestion you would give to the BDM?
- A.
Do not login the policy
- B.
Collect only age extra consent
- C.
Collect self declaration of age proof in form of affidavit with age extra consent
- D.
Age proof not required
- E.
None of the above
Correct Answer
C. Collect self declaration of age proof in form of affidavit with age extra consentExplanation
The suggestion to collect a self declaration of age proof in the form of an affidavit with age extra consent is given because the client does not have any evidence of age. This option allows the client to provide a statement declaring their age, supported by an affidavit, and gives consent for additional verification if necessary. This method ensures that the client's age is acknowledged and documented, even in the absence of traditional proof.Rate this question:
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- 15.
What is the abbreviation for WOP?
- A.
Waiver of premium
- B.
Waive off premium
- C.
Waiving on the premium
- D.
Waiver offered on Premium
Correct Answer
A. Waiver of premiumExplanation
The correct answer is "Waiver of premium." This abbreviation refers to a provision in an insurance policy that allows the policyholder to stop paying premiums in the event of a disability or other qualifying event, while still maintaining coverage.Rate this question:
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- 16.
Driving licence can be considered as Non Std age proof for
- A.
12th pass above
- B.
Graduate
- C.
Below 10th
- D.
Diploma holder
Correct Answer
C. Below 10thExplanation
A driving licence can be considered as a non-standard age proof for individuals who have not completed their education up to the 10th grade. This means that individuals who have not passed the 10th grade can still use their driving licence as a form of age verification.Rate this question:
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- 17.
Where does Underwriting department function?
- A.
Branch
- B.
Seshasai
- C.
Baroda corporate centre
- D.
Goregaon Office
Correct Answer
D. Goregaon OfficeExplanation
The Underwriting department functions in the Goregaon Office.Rate this question:
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- 18.
How much time does it take for Application tracker to update the status of application?
- A.
24 hrs
- B.
5 hrs
- C.
Depends upon the person who updates
- D.
It’s a real time update
- E.
None of the above
Correct Answer
D. It’s a real time updateExplanation
The correct answer is "It's a real time update." This means that the application tracker updates the status of the application immediately or in real time. There is no delay or specific time frame for the update to occur.Rate this question:
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- 19.
If a customer has never undergone any schooling and cannot read or write. He is considered
- A.
Uneducated
- B.
Illiterate
- C.
None of the above
- D.
Both of the above
Correct Answer
B. IlliterateExplanation
The correct answer is "Illiterate." This term is used to describe someone who cannot read or write. In this scenario, the customer has never undergone any schooling and lacks the ability to read or write, making them illiterate. The term "uneducated" refers to a broader concept that encompasses not only the ability to read and write but also the lack of formal education or knowledge in general. Therefore, the correct term to describe the customer in this case is "illiterate."Rate this question:
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- 20.
What is the minimum and maximum age at entry under IndiaFirst Maha Jeevan Plan ?
- A.
21 years and 65 years
- B.
5 years and 65 years
- C.
18 years and 55 years
- D.
5 years and 55 years
Correct Answer
D. 5 years and 55 yearsExplanation
The minimum and maximum age at entry under IndiaFirst Maha Jeevan Plan is 5 years and 55 years. This means that individuals as young as 5 years old and as old as 55 years old can enroll in the plan.Rate this question:
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- 21.
What do you mean by interim bonus under IndiaFirst Maha Jeevan Plan?
- A.
Interim bonus is declared annually and is accrued to be paid out at the time of maturity.
- B.
Interim bonus is payable for those plans that mature or result in a death claim in between two bonus declaration dates
- C.
Interim bonus also known as a persistency bonus, is a bonus paid to indicate an overall performance of a participating plan and is payable at the time of maturity or death of the life assured
- D.
Interim bonus is calculated as a percentage of the sum assured and all previously accrued bonuses
Correct Answer
B. Interim bonus is payable for those plans that mature or result in a death claim in between two bonus declaration datesExplanation
Interim bonus is a bonus that is paid out for plans that mature or result in a death claim in between two bonus declaration dates. It is accrued annually and is paid out at the time of maturity. This bonus, also known as a persistency bonus, indicates the overall performance of a participating plan and is calculated as a percentage of the sum assured and all previously accrued bonuses.Rate this question:
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- 22.
What is the minimum amount payable to the customer in case he / she surrender IndiaFirst Maha Jeevan Plan on the last plan year?
- A.
70% of total premiums paid
- B.
85% of total premiums paid
- C.
90% of total premiums paid
- D.
60% of total premiums paid
Correct Answer
C. 90% of total premiums paidExplanation
The minimum amount payable to the customer in case they surrender IndiaFirst Maha Jeevan Plan on the last plan year is 90% of the total premiums paid. This means that if the customer decides to surrender the plan, they will receive at least 90% of the total premiums they have paid towards the plan.Rate this question:
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- 23.
What happens in case the life assured commits suicide under IndiaFirst Maha Jeevan Plan? a) We will pay 80% of the total premium paid to the nominee/ appointee/ legal heir, if the life assured commits suicide within 12 months from the date of risk commencement date. b) We will pay higher of surrender value or 80% of the total premium paid to the nominee/ appointee/ legal heir, if the life assured commits suicide within 12 months from the date of revival/ re-instatement. c) We will pay 90% of the total premium paid to the nominee/ appointee/ legal heir, if the life assured commits suicide within 12 months from the date of risk commencement date / revival / reinstatement d) We will pay 70% of the total premium paid to the nominee/ appointee/ legal heir, if the life assured commits suicide within 12 months from the date of risk commencement date / revival / reinstatement
- A.
Option a, b
- B.
We will pay higher of surrender value or 80% of the total premium paid to the nominee/ appointee/ legal heir, if the life assured commits suicide within 12 months from the date of revival/ re-instatement.
- C.
We will pay 90% of the total premium paid to the nominee/ appointee/ legal heir, if the life assured commits suicide within 12 months from the date of risk commencement date / revival / reinstatement
- D.
We will pay 70% of the total premium paid to the nominee/ appointee/ legal heir, if the life assured commits suicide within 12 months from the date of risk commencement date / revival / reinstatement
Correct Answer
A. Option a, bExplanation
If the life assured commits suicide within 12 months from the date of risk commencement date, IndiaFirst Maha Jeevan Plan will pay 80% of the total premium paid to the nominee/appointee/legal heir. If the life assured commits suicide within 12 months from the date of revival/re-instatement, IndiaFirst Maha Jeevan Plan will pay the higher of surrender value or 80% of the total premium paid to the nominee/appointee/legal heir.Rate this question:
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- 24.
What are the risks that a human life is exposed to, that are covered under life insurance? a) Risk of illness b) Risk of premature death c) Risk of accidents d) Risk of unemployment e) Risk of living too long.
- A.
Option a, b, c, d
- B.
Option a, b, c, e
- C.
Option a, b, c, d, e
Correct Answer
B. Option a, b, c, eExplanation
Life insurance is designed to provide financial protection in the event of certain risks that a human life is exposed to. These risks include the risk of illness, the risk of premature death, the risk of accidents, and the risk of living too long. By covering these risks, life insurance ensures that individuals and their families are financially supported during times of illness, accidents, or death, as well as providing a source of income for those who live longer than expected. Option a, b, c, e includes all of these risks, making it the correct answer.Rate this question:
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- 25.
Which of the below statements are incorrect regarding the IndiaFirst Simple Benefit Plan? a) There is no maturity or survival benefit payable under this plan. b) This is a participating, non linked endowment plan. c) Loans are available upto 90% of the Surrender Value. d) This plan offers settlement option for a period of 5 years on maturity
- A.
Option a, c, d
- B.
Option a, b, d
- C.
Option a, d
- D.
All of the above
Correct Answer
C. Option a, dExplanation
The IndiaFirst Simple Benefit Plan does not provide any maturity or survival benefit, which makes option a incorrect. Additionally, the plan does offer a settlement option for a period of 5 years on maturity, making option d incorrect. Therefore, the correct answer is option a, d.Rate this question:
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- 26.
What is the maximum Sum Assured offered under IndiaFirst Simple Benefit Plan? a) Rs. 50,00,000/- b) Rs. 1,00,00,000/- c) Rs. 5,00,00,000 /- d) Rs. 20,00,00,000 /-.
- A.
Option a
- B.
Option b
- C.
Option c
- D.
Option d
Correct Answer
D. Option d -
- 27.
IndiaFirst Simple Benefit Plan has which of the following features? a) Easy and flexible saving options b) Life cover to protect your family c) Guaranteed payout at the end of the term d) Additional returns in the form of annual bonuses
- A.
Option a, b, c
- B.
Option b, c, d
- C.
Option a, b, d
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
IndiaFirst Simple Benefit Plan has all of the mentioned features. It offers easy and flexible saving options, life cover to protect your family, guaranteed payout at the end of the term, and additional returns in the form of annual bonuses.Rate this question:
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- 28.
What is the minimum and maximum monthly premium contribution under IndiaFirst Simple Benefit Plan, which will makes the plan attractive for small investors? a) Minimum premium of Rs. 170 /- per month and Maximum premium of Rs 2514/- per month b) Minimum premium of Rs. 172/- per month and Maximum premium of Rs 2600/- per month c) Minimum premium of Rs. 174/- per month and Maximum premium of Rs 2814/- per month d) Minimum premium of Rs. 176/- per month and Maximum premium of Rs 3014/- per month
- A.
Option a
- B.
Option b
- C.
Option c
- D.
Option d
Correct Answer
C. Option cExplanation
The minimum and maximum monthly premium contributions under IndiaFirst Simple Benefit Plan that make the plan attractive for small investors are a minimum premium of Rs. 174/- per month and a maximum premium of Rs. 2814/- per month. These premium amounts are within a reasonable range for small investors, allowing them to contribute comfortably towards the plan while still receiving the benefits it offers.Rate this question:
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- 29.
Can a minor be a life assured under the IndiaFirst Simple Benefit Plan? a) Yes. A minor can be a life assured and the minimum age at entry should be 5 years. b) No. A minor cannot be a life assured as the minimum age at entry is 18 years.
- A.
Option a
- B.
Option b
Correct Answer
B. Option bExplanation
Option b is the correct answer because a minor cannot be a life assured under the IndiaFirst Simple Benefit Plan as the minimum age at entry is 18 years. This means that only individuals who are 18 years or older can be insured under this plan.Rate this question:
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- 30.
Mr. Ravi had purchased the IndiaFirst Simple Benefit Plan last year with an annual mode of premium payment. This year his second renewal premium was due. However, due to his hectic schedule he forgot to pay his premium and his plan went into lapsation. What are the options provided by IndiaFirst under the IndiaFirst Simple Benefit Plan to revive the plan? a) The plan can be revived simply by paying the pending premium amount from the due date of the first unpaid premium. b) The plan can be revived simply by paying the pending premium amount along with interest from the due date of the first unpaid premium. c) The plan can be revived within 3 years from the due date of the first unpaid premium without any need of underwriting. d) The plan can be revived within 2 years from the due date of the first unpaid premium subject to satisfactory medical and underwriting guidelines.
- A.
Option a, b
- B.
Option a, d
- C.
Option b, d
- D.
Option a, c
Correct Answer
B. Option a, dExplanation
The IndiaFirst Simple Benefit Plan can be revived by paying the pending premium amount from the due date of the first unpaid premium. Additionally, the plan can also be revived within 2 years from the due date of the first unpaid premium, but this is subject to satisfactory medical and underwriting guidelines.Rate this question:
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- 31.
Mr. Mahesh Raj, is 48 years old and wants to apply for IndiaFirst Simple Benefit Plan. He is looking for a 25 year plan term. How much plan term can be offered to him keeping in mind the maximum age at the end of the plan term?
- A.
12 years
- B.
17 years
- C.
22 years
- D.
25 years
Correct Answer
C. 22 yearsExplanation
The maximum age at the end of the plan term is 70 years (48 years old + 25 year plan term). Since Mr. Mahesh Raj is currently 48 years old, the maximum plan term that can be offered to him would be 22 years (70 years - 48 years = 22 years).Rate this question:
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- 32.
If a customer stops paying renewal premiums before the completion of 3 plan years under IndiaFirst Maha Jeevan Plan, then what are the effects on the plan benefits? a) Plan does not acquire any value. b) Plan lapses and no benefits are payable during the period until the plan is revived. c) A two year revival period is offered during which a plan can be revived. d) No benefits will be payable during this period.
- A.
Option a, b, c
- B.
Option b, c, d
- C.
Option a, b, d
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
If a customer stops paying renewal premiums before the completion of 3 plan years under IndiaFirst Maha Jeevan Plan, all of the above options (a, b, and d) will apply. The plan does not acquire any value, it lapses and no benefits are payable until the plan is revived, and no benefits will be payable during this period. Additionally, a two-year revival period is offered during which the plan can be revived (option c).Rate this question:
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- 33.
Mr. Ravi Kumar aged 30 years has recently got married. He is the owner of a chemist shop. He is conservative in his investment approach and does not find any benefit in insurance. So he has not purchased any insurance plan so far. How will you explain the importance of having a life insurance cover and also pitch the IndiaFirst Maha Jeevan Plan to him? a) Life Insurance is important for the financial protection of our dependent family members. In case of an untimely death of the breadwinner who will run the house and look after the family’s income needs? b) If you have not invested in any insurance plan so far and also do not want to risk your investments, then IndiaFirst Maha Jeevan Plan is the right product for you. c) It is a secured investment option, in which you have to make systematic premium contributions for the plan term as chosen by you. d) A lump sum amount will be paid to your nominee in case of death of life assured during the plan term. If not on maturity you will receive the lump sum amount of sum assured plus all accrued bonuses till that time. Thus you are protecting your family and also contributing for a specific lump sum amount in future.
- A.
Option a, b, c
- B.
Option a, b, d
- C.
Option b, c, d
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
All of the above options provide valid reasons for the importance of having a life insurance cover and pitch the IndiaFirst Maha Jeevan Plan to Mr. Ravi Kumar. Option a highlights the financial protection it provides to dependent family members in case of an untimely death. Option b emphasizes the suitability of the IndiaFirst Maha Jeevan Plan for someone who has not invested in any insurance plan and wants to avoid investment risks. Option c explains the secured investment option and systematic premium contributions. Option d outlines the benefits of receiving a lump sum amount in case of death or on maturity, providing financial protection and contributing towards a future lump sum amount.Rate this question:
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- 34.
Mr. Anuj Saxena, is 35 years old and a senior executive, working in an MNC. He is married and has a five year old son. He wants to invest Rs 1,00,000 on a regular basis for 15 years in a traditional investment plan to save for his son’s studies. He wants to know which plan will suit his needs and how much return he can expect considering annual bonus of 4% per annum. How will you pitch him the plan? a) With IndiaFirst Maha Jeevan Plan, you can plan your son’s education needs, as it offers assured amounts plus additional returns in the form of bonuses. The benefits from the plan are tax free under Sec 10(10D) of the income tax act, unlike some other conventional methods. b) With IndiaFirst Maha Jeevan Plan, you can choose the life assured as per your convenience. The premium will be calculated based on your Sum Assured. For an example, you can enjoy a life assured of Rs 17,00,000 for a premium of Rs 1,01,700 inclusive of service tax. c) With IndiaFirst Maha Jeevan Plan, you may receive a lump sum amount on maturity equal to Rs 27,20,000 considering 4% bonus is declared every year d) The plan also offers easy access to liquidity after 5 plan years through partial withdrawal.
- A.
Option a, b, c
- B.
Option a, b, d
- C.
Option b, c, d
- D.
All of the above
Correct Answer
A. Option a, b, c -
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Mar 21, 2023Quiz Edited by
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Jul 01, 2014Quiz Created by
Firstlife
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