RAP examination set-4

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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1.  Annual premium of an insurance product is Rs. 32,000 with 4% loading on Quarterly mode of payment. What is the quarterly premium?             

  • 7,680
  •                 8,000
  •                 8,320
  •                 8,500

2. Two friends have taken same policy but their premiums are different. Why?    

  •                 Age
  •                 Medical
  •                 Sum assured
  •                 All the above

3.  Compound reversionary bonus of 4% will be calculated on:        

  •                 Sum assured
  •                 Sum assured plus bonus till date
  •                 Premiums paid till date
  •                 Sum assured minus bonuses paid till date

4.   As per the norms of risk assessment U/W both the parents of a policy holder died in their early 30s due to Heart disease. What is the risk assessed?           

  •                 Moral Hazard
  •                 Medical Hazard
  •                 Occupational Hazard
  •                 Physical Hazard

5.  Income replacement methods equates Human Life Value (HLV) to:       

  •                 Future value of present earnings
  •                 Present value of future earnings
  •                 Present value of previous earnings
  •                 Future value of previous earnings

6. If the annual premium for a plan is 32000 and a frequency loading of 4% is added in a quarterly premium what is the instalment premium that needs to be paid.

  • 8,000
  •                 8,320
  •                 9,456
  •                 9,240

7. A human being is:          

  •                 An economic asset
  •                 Has a capacity to generate income
  •                 Has a finite life span
  •                 All of the above

8.  What is the special report that is asked by the underwriter from the officer of the insurer?        

  •                 HLV report
  •                 Client confidential report
  •                 Moral hazard report
  •                 Medical report

9.  What role an agent is likely to play in the process of underwriting?         

  •                 To see that the proposal is accepted by the underwriter at OR
  •                 To ensure that this client is not burdened with extra premium
  •                 To give truthful report to the insurer all about the life to be insured
  •                 To see that the plan as proposed by the client is not changed on underwriting

10.  Who is the primary Underwriter?           

  •                 Actuary
  •                 Insurer Doctor
  •                 Underwriter of the Branch
  •                 Agent

11.   Mr Sunil is doing premium calculation for his company as per which authority is his profession related to:              

  •                 Council of Actuaries
  •                 Insurance council of India
  •                 Insurance Institute of India
  •                 IRDA

12.  In a 20 year with profit policy persistency Bonus is paid at the end of:    

  •                 1st year
  •                 10th year
  •                 15th year
  •                 20th year

13. While calculating Human life value (HLV) two components need to be kept in mind the one is take home salary and other is:        

  •                 Bank Fixed deposit rate
  •                 discount rate
  •                 Estimated life expectancy
  •                 Estimated amount at retirement

14.  Claim was settled. However full Sum assured not paid though the policy was in force due to:    

  •                 Lein
  •                 Bonus
  •                 Surrender
  •                 Accidental death

15.  HLV is used as a Yardstick to determine:

  •                 Emotion loss can be compensated for
  • The correct cover needed to compensate economical loss to their family in case of death of the earning member
  •                 A lump sum amount that the person will get from the insurance company
  •                 None of the above

16.  In insurance HLV is a known abbreviated term. How the meaning of HLV can best be described in relation to an income earning proposer?   

  •                 Sum assured is the HLV of the proposer
  •                 Yearly income is the HLV of the proposer
  •                 Difference between the Assets and Liabilities is the HLV of the proposer
  •                 Present value of the future earnings less personal expenses is the HLV of the proposer

17. Mr A wants insurance cover. But he is drinks alcohol frequently. What kind of hazard you may categorize?              

  •                 Physical hazard
  •                 moral hazard
  •                 Financial risk
  •                 Pure Risk

18. Insurer appoints a candidate of this professional qualification who decides the amount of premium in insurance products:      

  •                 Actuary
  •                 Underwriters
  •                 Sales Officers
  •                 Advisor

19.   While calculating HLV along with future income no of years of work increments in salary what is also to be taken in to account?     

  •                 inflation
  •                 Interest
  •                 Discount rate
  •                 Compounding

20.   Mr A submitted the proposal form. When will the risk begins for the company?

  •                 Submission of proposal form
  •                 On issuance of FPR
  •                 On issuance of Policy
  •                 On receipt of payment by agent

21.  Two People of the same policy Term one person pays more premium because:

  •                 Married
  •                 Wife Younger
  •                 Health deterioration
  •                 Higher Age

22. Mr. A has a son who is 5 yrs and he wants to save funds for his education. Both the parents are risk adverse. Which plan is suitable for them?           

  •                 Convertible plan
  •                 Term Insurance
  •                 Endowment Plan
  •                 ULIP Plan

23.  Most plans offered by Indian insurance companies are a combination of:            

  •                 Endowment and whole life
  •                 Term insurance and Pure endowment
  •                 Term insurance and whole life
  •                 Whole life and Money back

24.  Why Annuities are reverse of Life Insurance?   

  •                 Both Annuity and Life insurance provide risk cover
  •                 Annuities provide risk cover. Life Insurance provide only maturity benefit.
  •                 Annuities cover contingency of death. Life insurance convers contingency of Survival.
  • Annuities cover contingency of Survival whereas Life insurance covers the contingency of death

25.    Main Protection need of a client…:        

  •                 Protection against Liabilities
  •                 Protection for Pension
  •                 Health insurance protection
  •                 Protection of Income

26.   Basic elements of an insurance plan are:

  •                 Health protection against liabilities
  •                 Maturity benefit and Death cover
  •                 Tax planning & Dependents’ welfare
  •                 Pension protection and protection for loans

27.   When maturity benefit is payable under a joint life Plan?            

  •                 On survival of both the life insured.
  •                 On survival of one of the life insured
  •                 On death of both the life insured.
  •                 On survival of both or either of the life insured.

28. Which plan covers the risk of living too long?     

  •                 Endowment plan
  •                 Money back plan
  •                 Term insurance Plan
  •                 Retirement plan

29.  Income Tax Act 1961 provides for tax relief for various investments under Section?

  •                 80C
  •                 80D
  •                 80CCC
  •                 10(10D)

30.  Group insurance is a contract between…:

  •                 Employer & Employee
  •                 Employer & Insurance Company
  •                 Employee & Insurance Co.
  •                 Employer Employee & Ins. Co.

31. Who deducts premium in Salary Savings Scheme?

  • Employer
  • Employee
  • Insurance Company
  • TPA

32. The date on which the Title/rights under a policy passes on to the child on age 18 is called….:

  • Deferment date
  • Commencement date
  • Vesting date
  • Postponement date

33. Which plan is suitable for those who cannot afford higher premium now but can afford to pay higher premium later?

  • Term insurance
  • Convertible Term insurance
  • Whole life
  • Moneyback

34. Which is the most basic simplest & cheapest form of insurance?

  • Endowment
  • Money back
  • Whole life
  • Term insurance

35. Why insurance needs require to be prioritized?

  • Needs are limited
  • Needs are unlimited
  • Resources are unlimited
  • Resources are limited.

36. What is maximum level of Insurance premium for which Income Tax benefit is available:

  • 25,000
  • 50,000
  • 1,00,000
  • 1,50,000

37. Client has taken Joint Life Policy. Who are responsible in the contract?

  • Insurer
  • Proposer
  • Proposer & Wife
  • Insurer and both the Life Insured

38. Term insurance if best suited for the following need

  • home loan
  • education needs
  • marriage of kids
  • Retirement needs

39. A Couple has 7 year kid & wants to Buy some Policy. Which is the best suitable policy for his Son?

  • Only ULIP Plans
  • Only Endowment Policies
  • only Term Plans
  • Child insurance plans can be taken out in the form of endowment plans money-back plans or ULIPs

40. Children policies come in 3 forms. What are they?

  • Whole life Money back & ULIP
  • Term insurance Whole life & Pension
  • Endowment Whole life & Money back
  • Endowment Money back & ULIP

41. At the time of maturity quarter of the SA is paid though the policy was in force:

  • Endowment
  • Lien
  • Money back
  • Surrender

42. Mr. X wants a life cover for the term of 20 Yrs. Also, he wants a modest amount if he survives through the term. Which plan should he buy?

  • Term Plan
  • Endowment plan
  • Convertible plan
  • ULIP

43. In endowment policy, we give SA + Bonus-

  • Outstanding premium
  • Commission outstanding
  • Both of the above
  • None of the above

44. What is Inflation?

  • Decrease in cost of living
  • Increase in cost of living
  • Decrease in prices of goods
  • Decrease/Increase in cost of living

45. Hari wants a constant life cover till his 31st birthday. But he can’t afford to pay high premiums. The best suited products for him would be:

  • Pure Endowment
  • Anticipated endowment
  • Term plan
  • ULIP

46. The option to receive maturity benefit in instalments under a ULIP is called..

  • Deferment option
  • Vesting option
  • Annuity Option
  • Settlement Option

47. The period which does not provide risk cover in a Child plan is called…

  • Vesting period
  • Deferment period
  • Lapse period
  • Commencement period

48. To avail income tax exemption for premium paid sum insured under a policy should be…

  • 10 times
  • 20 times
  • 30 times
  • 40 times

49. Which life insurance plan offers both the benefits of Risk cover and Investment?

  • Endowment policy
  • Whole life policy
  • ULIP
  • Moneyback

50. Samir is married and he has only one partner with dependent parents and no child. Which should be his priority?

  • income protection
  • inheritance planning
  • investment efficiency
  • long term savings

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