CHAPTER
DOCUMENTATION – PROPOSAL STAGE
Question 1
Which of the below is an example of standard age proof?
I. Ration card
II. Horoscope
III. Passport
IV. Village Panchayat certificate
Answer: III. Passport
Question 2
Which of the below can be attributed to moral hazard?
I. Increased risky behavior following the purchase of insurance
II. Increased risky behavior prior to the purchase of insurance
III. Decreased risky behavior following the purchase of insurance
IV. Engaging in criminal acts post being insured
Answer: I. Increased risky behavior following the purchase of insurance
Question 3
Which of the below features will be checked in a medical examiner’s report?
I. Emotional behavior of the proposer
II. Height, weight and blood pressure
III. Social status
IV. Truthfulness
Answer: II. Height, weight and blood pressure
Question 4
A __________ is a formal legal document used by insurance companies that
provides details about the product.
I. Proposal form
II. Proposal quote
III. Information docket
IV. Prospectus
Answer: IV. Prospectus
Question 5
The application document used for making the proposal is commonly known as
the __________.
I. Application form
II. Proposal form
III. Registration form
IV. Subscription form
Answer: II. Proposal form
Question 6
From the below given age proof documents, identify the one which is classified
as non-standard by insurance companies.
I. School certificate
II. Identity card in case of defence personnel
III. Ration card
IV. Certificate of baptism
Answer: III. Ration card
Question 7
Money laundering is the process of bringing _______ money into an economy by
hiding its _______ origin so that it appears to be legally acquired.
I. Illegal, illegal
II. Legal, legal
III. Illegal, legal
IV. Legal, illegal
Answer: I. Illegal, illegal
Question 8
In case the policyholder is not satisfied with the policy, he / she can return the
policy within the free-look period i.e. within ________of receiving the policy
document.
I. 60 days
II. 45 days
III. 30 days
IV. 15 days
Answer: IV. 15 days
Question 9
Which of the below statement is correct with regards to a policy returned by a
Policyholder during the free look period?
I. The insurance company will refund 100% of the premium
II. The insurance company will refund 50% of the premium
III. The insurance company will refund the premium after adjusting for
Proportionate risk premium for the period on cover, medical examination
Expenses and stamp duty charges
IV. The insurance company will forfeit the entire premium
Answer: III. The insurance company will refund the premium after adjusting for
Proportionate risk premium for the period on cover, medical examination
Expenses and stamp duty charges
Question 10
Which of the below is not a valid address proof?
I. PAN Card
II. Voter ID Card
III. Bank passbook
IV. Driving license
Answer: II. Voter ID Card
Question 11
During the _________ period, if the policyholder has bought a policy and does
not want it, he / she can return it and get a refund.
I. Free evaluation
II. Free look
III. Cancellation
IV. Free trial
Answer: II. Free look
