RAP examination set-1

Here you can find most frequently asked question set on RAP examination. Each set contain fifty questions. as per our expertise we have accumulated the question set here. But recent period it has been observed that they frequently change the set. If you carefully study all sets described here, Your passing score will be good on RAP examination.

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Examination Questions and Answers Set-1

1.       A Risk transfer provides a sense of:       

  •                 Financial instability
  •                 Financial distress
  •                 Financial security
  •                 Financial deficit

2.       _____________ is an insurer for the insurance company:

  •                 IRDA
  •                 Reinsurance company
  •                 LIC
  •                 GIC

3.  Mr. Mahesh is a software engineer. He has taken a term insurance for Rs. 30,00,000/- for 30years. This is an example for:    

  •                 Risk retention
  •                 Risk transfer
  •                 Risk avoidance
  •                 Risk tolerance

4. What is the maximum cover that can be provided in micro-insurance?  

  • 5,000
  •                 10,000
  •                 50,000
  •                 1,00,000

5. The Non-Government Organisations (NGOs) help the insurance industry immensely in:              

  •                 Promotional activities
  •                 Drafting new regulations
  •                 Linking buyers and sellers
  •                 Linking third party administrators (TPAs)

6. ……means before loss what was his financial status and for the same financial status to bring him is called:         

  •                 An indemnity
  •                 material information
  •                 utmost goodfaith
  •                 none of the above

7. Insurance Agents are   

  •                 Who work only for insurance company
  •                 Who work for customers
  •                 Who work for their own interests
  •                 Intermediaries

8. Mr. Varun who owns a multi-chain company would like to take an insurance. What will be the best option for him from the following?      

  •                 He can take Surety insurance
  •                 He can take Business Partner insurance
  •                 He can take Key-man Insurance
  •                 He can take company insurance

9.       Insurance c option because:

  •                 Policyholder gets advantage of market linked investments
  •                 Policyholder gets returns on their investment
  •                 Policyholder can withdraw money whenever they need it
  •                 Insurance products offer flexibility to the policyholders

10.   Amit is looking for term insurance plan for protection of his family he is advised to approach for:              

  •                 Property Insurance
  •                 Life Insurance
  •                 Health Insurance
  •                 Liability Insurance

11.   Which of the following is not a type of insurance organization?

  •                 Ombudsman
  •                 Life insurance
  •                 Non-Life insurance
  •                 Reinsurance

12.   The constituents who participate in deeper penetration of micro-insurance and awareness of insurance in rural areas are:          

  •                 The Surveyors
  •                 Underwriters
  •                 Non- Governmental Organizations
  •                 The Regulator IRDA

13.   Why is Insurance required?       

  •                 To Cover Risks of Life
  •                 To plan for Future goals
  •                 For Savings
  •                 All of the above

14.   In life insurance business if a person is working in calculating premium rates of insurance products then he is mostly likely a member of:       

  •                 institutes of actuaries of India
  •                 insurance institute of India
  •                 Chartered institute of insurance
  •                 Insurance institute of risk management

15.   Currently, major percentage of insurance sales in India takes place through:     

  •                 Insurance Brokers
  •                 Corporate agents
  •                 Banc-assurance channel
  •                 Individual insurance agents

16.   I.R.D.A was incorporated as a Statutory body in:

  •                 Dec-1999
  •                 Jun-1994
  •                 Apr-2000
  •                 Jun-2001

17.   What facility do insurers use to cover risks beyond their exposure limits:             

  • Banc-assurance
  •                 Re-insurance
  •                 Both a & b
  •                 Neither a nor b

18.   One of the most sought after advantage of Insurance is:             

  •                 Huge sum received in case of death
  •                 Huge sum assured by paying small premium
  •                 Tax benefits on payment of premium and all the pay-outs
  •                 Can get the surrender value as per the terms and conditions

19.   Vinay doesn’t want to take insurance on himself. He feels that his family will survive with the funds available in the bank and monthly rentals received from village. This comes under Risk ______:              

  •                 Transfer
  •                 Control
  •                 Retaining
  •                 Avoidance

20.   The main role of an underwriter in a non-life insurance company is normally to:

  •                 assess the acceptability of particular risks
  •                 certify a loss when claims are submitted
  •                 design the structure of the products to be offered
  •                 negotiate with the industry regulator

21.   The concept of insurance involves a transfer of:              

  •                 liability
  •                 needs
  •                 ownership
  •                 risk

22.   Akshat is a relatively cautious person. In insurance terms, this will normally increase the likelihood that he will:

  • be considered an above average insurance risk
  • be considered a below average insurance risk
  • require insurance cover
  • require reinsurance cover

23.   How are perils and hazards normally distinguished under term insurance policies?

  • Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying.
  • Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk.
  • Perils are factors which affect the risk being insured and hazards are the size of the risk being insured.
  • Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a pay-out.

24.   In insurance terms, the risk of suffering a disability is best described as what type of risk?

  • Financial.
  • Fundamental.
  • Homogenous.
  • Speculative.

25.   For a household insurance policy, insurable interest need only exist at outset and at what other point?

  • The date the cancellation period expires.
  • The date a claim occurs.
  • The date the policy document is received.
  • The termination date.

26.   Rahul is employed by Sunny. In respect of this employment, Rahul automatically has insurable interest in Sunny’s life up to what limit, if any?

  • Rahul’s monthly salary.
  • Rahul’s pension fund value.
  • Sunny’s annual profit.
  • There is no limit.

27.   Arun started a 20-year term insurance policy. Once established, when, if at all, is the insurer next entitled to ask him for proof of continuing good health?

  • At no point.
  • After the end of the first 12 months.
  • At the point when he changes occupation or retires.
  • When a lapsed policy is revived.

28.   The concept of indemnity is based on the key principle that policyholders should be prevented from:

  • insuring existing losses.
  • making false insurance claims.
  • paying excessively for insurance cover.
  • profiting from insurance.

29.   Once an absolute assignment is effected under a life insurance policy, who will be the titleholder(s) of this policy?

  • The assignor in all cases.
  • The assignee in all cases.
  • Either the assignor or assignee depending on the type of policy involved.
  • The assignor and assignee jointly.

30.   How long is the free look-in period under a term insurance policy from the date of receipt of the policy document?

  • 5 days.
  • 10 days.
  • 15 days.
  • 20 days.

31.   A life insurer issued a quotation on 10 February, guaranteed for 14 days, which was accepted by the customeron day 10. Consequently, the insurer can only decline this risk if the:

  • customer submits a second quotation request.
  • insurer increases its underlying premium rates.
  • market place experiences a significant downturn.
  • material facts change.

32.   A policy document for a money-back policy includes the statement ‘the proposal and declaration signed by the proposer form the basis of the contract’. In which main section of the policy document will this normallyappear?

  • Attestation.
  • Operative clause.
  • Preamble.
  • Terms and conditions.

33.   A life insurance policy can only be made paid up if what policy feature exists?

  • Indexing contribution.
  • Nomination facility.
  • Rider benefits.
  • Savings element.

34.   The main reason why a life insurance proposal form often asks for the proposer’s height is to enable a reasonable comparison with the proposer’s:

  • age.
  • gender.
  • occupation.
  • weight.

35.   Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply?

  • 2.5%
  • 3.0%
  • 5.0%
  • 7.5%

36.   The amount paid out by the insurer under a 30-year life insurance policy exceeded the sum insured plus revisionary bonuses. The excess is likely to result from?

  • charges refunded.
  • a frequency loading.
  • a tax rebate.
  • a terminal bonus.

37.   What normally happens to the sum insured under a life insurance policy once the period of the lien expires?

  • It reduces.
  • It increases.
  • It is suspended.
  • It is replaced by a newly-underwritten sum insured.

38.   The main protection need of a 19-year-old is most likely to be:

  • self-protection.
  • home loan protection.
  • protection of dependants.
  • protection of children’s future.

39.   Raunak recently arranged a life insurance policy under which he is classed as the master policyholder. This addresses his role as:

  • a creditor.
  • a debtor.
  • an employee.
  • an employer.

40.   The need for investment advice from an insurance agent normally results from what overriding key factor?

  • Absence of any long-term goals.
  • Inability to prioritise future financial needs.
  • Lack of market knowledge.
  • Shortage of available funds.

41.   When undertaking financial planning for individuals without capital, what savings need is likely to beaddressed in every single case?

  • Emergency funds.
  • Funds for children’s savings.
  • Funds for educational costs.
  • House purchase funds.

42.   Naveen is addressing his income needs by investing directly in corporate bonds. In what form will he receivethis income?

  • Annuity instalments.
  • Dividend payments.
  • Interest payments.
  • Rental payments.

43.   Nikhil is looking for tax-efficient savings methods for his disposable income. He is considering an equity-linked savings scheme, national savings certificates and an endowment insurance policy. Premiums for which of these investments are allowed to be deducted from his taxable income?

  • The national savings certificates only.
  • The equity-linked savings scheme and the national savings certificates only.
  • The national savings certificates and the endowment insurance policy only.
  • The equity-linked savings scheme, the national savings certificates and the endowment insurance policy.

44.   An investor holds a wide range of shares. If the Reserve Bank of India announces a series of significantinterest rate increases, the prices of these shares are most likely to

  • become volatile.
  • decrease.
  • increase.
  • stagnate.

45.   The main purpose of the guaranteed inseparability rider benefit is to give the policyholder the right to

  • cancel a health-based exclusion after a symptom-free period.
  • include his parents under the policy.
  • increase cover when a key life event occurs.
  • maintain cover despite a fall in investment value.

46.   The changes in healthcare costs over recent years has had what general impact on healthcare insurance?

  • A fall in average premium levels.
  • A reduction in underwriting requirements.
  • A rise in the need for cover.
  • A strengthening of the insurable interest rules.

47.   The general need for a pension policy results from the existence of what key problem?

  • Anticipated fall in income.
  • Lack of employment opportunities.
  • Likely deterioration in health.
  • Uncertainty over investment performance.

48.   Yash pays health insurance premiums for himself, his wife and his two children aged 13 and 8. Premiums for which of these individuals will qualify as deductible from Yash’s taxable income?

  • Yash only.
  • Yash and his wife only.
  • Yash, his wife and his oldest child.
  • Yash, his wife and both his children.

49.   The sole focus during a client’s fact-find session was healthcare requirements and estate planning. Which main life stage is he most likely to fall into?

  • Young married.
  • Young married with children.
  • Pre-retirement.
  • Retirement.

50.   Apart from the salary level, what other key feature of Alok’s job is likely to have a major impact on the level ofhis pension, life insurance and health insurance needs?

  • Whether the job is office or field-based.
  • The normal retirement age in relation to the job.
  • Whether the job is in the public or private sector.
  • Whether the job is manual or non-manual.

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