CHAPTER – 10

1) The main characteristics of all professions are Committed to behaving ethically towards clients Adhere to a professional code of conduct Adhere to minimum standards of professional competence All above

2) The name of _________ is to identify prospective clients for the insurance company perform need analysis to identify different needs

Agent Insurance company IRDA Reinsurance company

3) A life insurance agent receives his remuneration by way of _________ Salary Commission Perks Stipends

4) A life insurance agent receives his remuneration as per Insurance Act 1937 1938 1939 1936

5) As per Insurance act, an agent can receive maximum of ______% as first year’s premium 25 30 35 40

6) All Insureres have to disclose agent’s commission in the benefit illustration document for ____ Term Assurance Endowment Assurance Whole life ULIP

7) _________ involves reminding theclient of the needs that were agreed during the fact-finding process

Checking the client’s commitment to the needs Checking the client’s commitment to the needs Acceptance or rejection of the recommendation Churning and Product switching

8) ____________ should be taken at each stage of the recommendation Client feedback Client suggestion Client confirmation Client problem

9) The client is not satisfied with the recommended products. In this case agent can ask client to contact at future date Agent need to review the product Agent should ask fill the proposal form Agent should client to pay premium

10) The client’s decision to act differently from the agent’s recommendations may emerge at Presentation Filling proposal form Paying premium Undergoing medical

11) If the client ignore a large protection need want to invest into a savings plan then the agent need To start fact finding process again To neglect the cleitn’s view Try to convince the client To fill up proposal form

12) Repeatedly encouraging clients to switch policies or investments form one to another is known as

Fact finding Presentation Submission Churning

13) The agent ask Mr. Samir to surrender his existing insurance policy take new endowment policy. This is case of insurance churning as

Agent did nto tell Mr. Samir higher premium because of higher sum assured Agent did not tell Mr. Samir higher premium because of higher age Mr. Samir need to bear the surrender charges for existing policy All above

14) There will sometimes be situations where clients have been mis-sold policies that do not match their needs. Then the agent can gave advice of ______to client

Revival Maturity Switching Paidup

15) _________ refers to the amount of business that insurance companies are successful in retaining without lapse or surrender of the policy

Cancellations Foreclosure Persistency Inactive

16) A low persistency ratio means that a large number of policies have lapsed or have been surrendered, resulting in a loss of profits and a reduction in the accumulation of reserves for ___

Client Agent Insurance company IRDA

17) A low persistency ratio means fewer benefits than originally expected and a loss of insurance cover for_____

Client Agent Insurance company IRDA

18) A low persistency ratio means the loss of renewal commission for _________ Client Agent Insurance company IRDA

19) Keeping policy in force till maturity helps ______ to achieve the ultimate goal Client Agent Insurance company IRDA

20) Higher persistency helps _______ in earning higher revenue maintaining profitability Client Agent Insurance Company IRDA

21) Factors that affects persistency Product design Role of agent Policy servicing All Above

22) It is the duty of _________ to review client’s financial needs planning periodically to build long term relationship

Insurance company Agent IRDA Reinsurance company

23) A periodically financial review is required because of Marriage Change in job Child birth All above

24) ___________ helps the company in maintaining profitability reduces administrative costs Low persistency Higher persistency Switching Product churning

25) The circumstances where policy surrender can be recommended are as follows Where clients have been took policies that donot match their needs Where clients are holding products that are not good value When clients are facing financial difficulties All Above