Pce Exam

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Pre-Contract Examination Mock – Set 4

1. “Hazard, danger, and chance of loss or injury, the degree of probability of loss, a
person, thing or factor likely to cause loss or danger”
A. Risk
B. Loss
C. Probability
D. Opportunity

2. Which risk does insurance cover?


A. Pure risk
B. Speculative Risk
C. Fundamental Risk
D. Dangerous Risk

3. Why does insurance not cover speculative risk?


A. Insurance cannot predict the loss
B. It may result in possible gain after happening of the event
C. It affects the whole society
D. It doesn’t bring harm

4. A participating life policy is:


A. Policy holders have the right to the surplus of the life insurance funds, either as
dividends or bonuses. The amount and timing of the pay-out is at the discretion of
the insurer
B. Policy holders have no right to the surplus of the life insurance funds, either as
dividends or bonuses.
C. Policy holders have no right to the surplus of the life insurance funds, but have
the right to the dividends or bonuses.
D. Policy holders have the right to the surplus of the life insurance funds, either as
dividends or bonuses. The amount and timing of the pay-out is at the discretion
of the policy holders

5. Peril is the ___________. Hazard is the_____________.


A. cause of loss, condition which increases chance of a loss
B. condition which increases chance of a loss, Cause of loss
C. uncertainty of an event, level of dangerous
D. person that loss something in the event, event

6. Which of the following is not benefit of insurance?


A. People can buy insurance to transfer their risk to insurer so that they can have
peace of mind.
B. People can buy as many policies as possible for the same risk so that all insurers
will pay the sum assured in the event of a fortuitous incident for the insured to
recover from financial loss.
C. Business can buy insurance to secure their risk so that cost of business will be
stabilized that they need not to preserve certain amount of money for emergency.
D. Insurance has created opportunities for employment.

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
7. “The class of insurance may be similar; each insured will pay a premium that will
justify the level of risk brought to the pool.” Is this aligned to the concept of ‘equitable
premium’?
A. No, all insured must pay same premium
B. No, the premium is justified by the number of people paying premium in order to
have more accurate prediction by using law of large number
C. Yes, the payable premium is measured by the level of risk
D. Yes, a person who is classified as sub-standard will be charged lower premium
than those standard

8. A group life insurance :


I. Arranged by employers to provide employee under master policy
II. Arranged by employees under master policy
III. May be either on a contributory or non-contributory basis
IV. Minimum number of employees is usually 5
A. I, III
B. I, IV
C. I, II, III
D. II, III, IV

9. Which of the following relationship doesn’t have insurable interest?


A. Father – Mother
B. Sister – Brother
C. Debtor – Creditor
D. Parent – Child

10. Insurers look for homogeneous or similar exposures to enjoy the benefits of the law
of large numbers in order to forecast the expected extent of their loss. However, it
can only operate efficiently if the following requirement(s) is/are fulfilled:
I: The loss exposures must be independent
II: The loss exposures must cover all people from different risks
III: The risk can be manipulated.
IV: There are a large number of similar loss exposures
A. I, II
B. I, IV
C. II, IV
D. I, II, III

11. He murdered her mother so that he could claim the sum assured from his mother’s.
Will company pay the claim to him?
A. No, his act against the public policy
B. No, his mother did not die in nature.
C. Yes, he will get the claim once he has submitted all the required documents.
D. Yes, he is the legal beneficiary.

12. What is the correct definition of ‘pure risk’?


A. A risk where there is only the possibility of a loss or break even outcome
B. A risk that only affects individuals as opposed to society as a whole
C. A risk that cannot be measured in financial terms
D. A risk where there is a possibility of financial gain

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
13. Which of the following is NOT a characteristic of an insurable risk?
A. It should not be against public policy
B. It must be fortuitous or accidental in nature
C. It must be a speculative risk
D. Homogenous exposures with the same expectation of loss

14. The risk is acceptable but with extra premiums, loadings and/or limitations to
coverage. The risk classification is:
A. Standard risks
B. Below average risks
C. Sub-standard risks
D. Uninsurable risks

15. ‘Uberrima fides’ and ‘Caveat emptor’ refer to:


A. Utmost good faith, Let the buyer beware
B. Let the buyer beware, Utmost good faith
C. Insurable interest, Indemnity
D. Indemnity, Insurable interest

16. The proposal form should include specific questions and the agent should expressly
request material facts from client because the principle of ____________ protects the
insurance company from offering over protection to the insured.
A. indemnity
B. utmost good faith
C. insurable interest
D. contribution

17. Ming loves his grandson, Alex, so much that he has decided to buy a life policy with a
high sum assured for him. The insurance company rejects his application. This is
because Ming and Alex don’t have_______?
A. insurable interest
B. indemnity
C. contribution
D. common Pool

18. A person shall be deemed to have insurable interest in relation to another person
who is:-
I. His spouse and child or ward being under the age of majority at the time the
insurance is affected
II. His employee
III. A person with whom he is at the time the insurance is effected, wholly or partly
dependent for maintenance or education
IV. A girlfriend or boyfriend
A. IV
B. I, II
C. II, IV
D. I, II, III

19. __________ is each insured will pay a premium that will justify the level of risk to the
pool for a similar class of insurance.
A. Creation of common pool
B. Risk transfer
C. Sound risk transfer mechanism
D. Calculation of equitable premiums

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
20. In the event of loss, insured can only restore to the same financial position as he had
been enjoying immediately before the loss. This is based on principle of _________?
A. indemnity
B. contribution
C. subrogation
D. proximate cause

21. How may subrogation arise?


A. Under a contract
B. Must be stated in the policy
C. The client sues the third party that caused the loss
D. Under contribution

22. Zac bought the same type of policy from three insurance companies. When a claim
arose, he received only the total amount of loss from the event. He thought this was
unfair practice because he should have gotten the total amount of sum assured from
all three companies. He lodged a complaint and was rejected by Bank Negara
Malaysia (BNM) because the insurance companies practiced the principle
of_________.
A. contribution
B. subrogation
C. proximate Cause
D. utmost good faith

23. Which of the following is the formula to calculate the amount that each insurer has to
pay?
A. Divide proportionally
B. Divide equally
C. According to sequence of client bought the policy
D. No, the other companies won’t pay that amount if a client is found having other
similar or same policies.

24. A fire due to an electrical short circuit damaged a building which was insured under a
fire insurance policy. In the course of putting out the fire, the fire brigade caused
water damage to the surrounding building and contents.
If the fire is an insured peril,
A. the insurer is only liable for the damage caused by fire to the insured building.
B. the insurer is liable for damage caused by the fire to the insured building as well
as for the consequent water damage to any property in the immediate vicinity.
C. the insurer is not liable for all damage because the damage was caused by
multiples causes.
D. the insurer is not liable for damage caused by water .

25. Which of the following is not a key regulatory objective of Bank Negara Malaysia in
relation to the insurance sector?
A. Promote monetary and financial stability conducive to sustainable growth of the
economy
B. Foster fair, responsible and professional business conduct of financial institutions
C. Strive to protect the rights and interests of financial consumers
D. Monitors all insurance agents to ensure good practices

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
26. The formula of capital adequacy ratio (CAR) is:
A. Total Capital Available (TCA) / Total Capital Required (TCR) X 100%
B. Total Capital Required (TCR) / Total Capital Available (TCA) X 100%
C. Total Capital Available (TCA) / Total Capital Required (TCR) X 100
D. Total Capital Required (TCR) / Total Capital Available (TCA) X 100

27. Which of the following existing Acts have been replaced by the Financial Services
Act (FSA) 2013?
I Banking and Financial Institutions Act 1989 (BAFIA)
II Exchange Control Act 1953 (ECA)
III Insurance Act 1996
IV Payment Systems Act 2003 (PSA)
A. I
B. I, II
C. I, II,III
D. I,II,III,IV

28. Which of the following existing Act have been replaced by the Islamic Financial
Services Act (IFSA) 2013?
A. Takaful Act 1984
B. Exchange Control Act 1953 (ECA)
C. Payment Systems Act 2003 (PSA)
D. Insurance Act 1996

29. Insurance companies and Takaful operators are required to be incorporated


as_________?
A. public Companies
B. private Companies
C. unlimited Companies
D. corporation

30. PIDM protects depositors against the loss of up to _____________ per depositor per
member bank, and Takaful certificate and insurance policy owners against the loss of
their Takaful and insurance benefits of up to ______________ in the event of the
failure of a member institution.
A. RM 250,000 & RM 500,000
B. RM 500,000 & RM 250,000
C. RM 1,000,000 & RM 750,000
D. RM 750,000 & RM 1,000,000

31. If a complainant is not satisfied with the outcome of a complaint resolution made by a
Financial Service Provider, he or she may lodge a complaint to the
__________________, attaching a copy of the decision letter of the insurance
company or Takaful operator.
A. Financial Mediation Bureau
B. Bank Simpanan Nasional
C. Ministry of finance
D. Court

32. Complaints to the Financial Mediation Bureau are subjected to:


A. RM 100,000 for motor and fire insurance policies or Takaful
B. RM 200,000 for other types of insurance policies or Takaful plan
C. RM 300,000 for all types of insurance policies or Takaful plan
D. RM 5,000 for third party property damage

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
33. Which types of complaints are not handled by Bank Negara Malaysia?
I. Complaints that have been referred to and decided by FMB
II. Complaints that have not been referred to FMB.
III. Complaints that have been referred to solicitors or legal actions have been
instituted
IV. Complaints made by agents against their principals or on employer/employee
relationships or other matters no related to insurance or Takaful.
A. I, II
B. II, IV
C. I, II, IV
D. I, III, IV

34. With regards to insurance,


A. the client makes an offer while the Insurer may accept or reject the proposal after
accessing the risk.
B. an insurance agent serves as the middle person to offer insurance to clients and
clients may choose to accept or reject.
C. underwriting is the process of clients accessing whether they want to accept or
reject the insurance offered by an insurer.
D. the insurer has to accept the offer once the client signs on proposal form.

35. The consideration furnished by the insured in an insurance contract is


the___________ and that given by the insurer is the promise to pay claims, in other
words, ______________.
A. cover, the premium
B. offer, acceptance
C. premium, the cover
D. acceptance, offer

36. A voidable contract is a/an _______ contract.


A. valid
B. invalid
C. complete
D. incomplete

37. Which of the following is not part of an insurance policy?


A. Recital Clause
B. Operative Clause
C. Schedule
D. Underwriting guideline

38. What does the ‘recital clause’ describe?


A. The parties of the insurance contract
B. The cover provided
C. Insured’s particulars and details of the risk
D. Excluded perils

39. The relationship between the principal and the agent may not come about in which of
the following way?
A. Agency by ratification
B. Agency by convenience
C. Agency by necessity
D. Agency by consent

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
40. Which of the following is not the duty of an insurance agent to the principal?
A. To exercise proper care and skill
B. To perform duties personally
C. To act in good faith towards the principal
D. To accept special commission from client

41. __________ happens when a loss is covered by two or more policies by the same
insured. This has been developed to prevent the insured with two or more policies
from being more than indemnified for the same loss.
A. Contribution
B. Subrogation
C. Indemnity
D. Assignment

42. An agent shall not


A. make a statement, illustration, promise, forecast or comparison which is
misleading, false or deceptive
B. receive premium on behalf of principal from client
C. help client to make claims
D. provide after sales service to client

43. Generally, the maximum amount of disability income that can be purchased is
between ___ to ___ of one’s occupational earnings.
A. 60% to 70 %
B. 50% to 60%
C. 80% to 90 %
D. 70% to 80%

44. Managed Care Organizations (MCOs) are required to register with the __________.
A. Bank Negara Malaysia
B. Ministry of Health
C. Ministry of Finance
D. Health Labor Union

45. __________ is a retirement fund which gives policy owners the right to a series of
periodic payments at intervals of one year or less under a contract with a life insurer.
A. Life plan
B. Life-annuity plan
C. PA plan
D. Term annuity plan

46. Ostensible authority means:


A. Agent has no real authority to do the acts in question. However, it appears in the
eyes of the third party that they have such authority and are therefore able to bind
their principal.
B. Instructions have been given to the agent, stating what is required and what is
allowed.
C. Authority to do anything which is incidental to, or necessary for the carrying out of
the agent’s express instructions.
D. Authority is given to the agent but agent did not carry out their duties properly.

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
47. Due to which of the following situation can an agent be terminated?
A. An agent passes away in a road accident
B. Customer lodges a complaint to the Company saying that the agent has been
calling him and being rude over the phone
C. Agent practices the principle of utmost good faith
D. Principal is allowed to terminate the agent anytime without any reason

48. The tax relief for medical and education policies is_________ and it is ___________
for life insurance and EPF contribution?
A. 6,000 & 3,000
B. 6,300 & 3,600
C. 3,000 & 6,000
D. 3,600 & 6,300

49. Disability income insurance under MHI provides _________ due to the disability.
A. income stream to replace wages lost
B. interest on wages lost
C. lump Sum payment of the sum assured
D. 20% to 30% of occupational earnings

50. Guidelines on Medical and Health Insurance Business (Revised) came into effect
on______?
A. 1 January 2006
B. 1 January 2008
C. 1 January 2010
D. 1 January 2012

51. Guidelines on Product Transparency and Disclosure came into effect


on___________?
A. 1 January 2012
B. 1 January 2010
C. 1 January 2008
D. 1 January 2006

52. Why is there a need to underwrite all policies?


A. It is to evaluate the risks to determine whether the insurer and reinsurer can bear
those risks.
B. It is to make unnecessary rejections for cases which have been submitted to the
insurance company.
C. It is to increase the level of difficulty for agents to close cases.
D. It is to prevent the insurance company from making profit.

53. Financial Underwriting evaluates the _______hazard while Medical Underwriting


evaluates________?
A. moral, physical
B. physical, moral
C. physical, financial
D. financial, moral

54. Which of the following is not factor under ‘risk evaluation and selection’?
A. Family medical record and history
B. Occupational hazard
C. Financial situation
D. Number of family members per household

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
55. There are three types of risk classifications. Which of the following is not the common
classification?
A. Standard
B. Sub-standard
C. Decline
D. Postponed

56. If a person has a pre-existing condition which is acceptable for an insurer to insure it,
which category of risk does fall under and what will the insurer normally do before
accepting their application?
A. Sub-standard, accept without loading
B. Standard, accept with loading
C. Decline, accept with loading
D. Sub-standard, accept with loading

57. Which of the following is not true for Group MHI?


A. No individual risk evaluation or selection
B. A contributory plan requires the participation of at least seventy-five percent (75%)
of eligible group members, where the premium is partly subsidized by the
member or employee.
C. An insurer is liable to the person insured under a group policy if the group policy
owner has no insurable interest in the life of that person insured and if that
person has paid the premium to the group policy owner.
D. A non-contributory plan covers all eligible employees or members where the
premium is paid by the employees themselves.

58. Which of the following are common limitations applied to the core benefits of Hospital
and Surgical Insurance (HSI) policy?
I. Inner limits
II. Schedule of surgical procedures
III. Time frame
IV. Maximum Period of Compensation
A. I, II
B. II, III
C. I, II and III
D. I, II, III and IV

59. What does ‘deductible’ mean in terms of MHI?


A. The fixed amount the policyholder must first pay regardless of the total cost of an
eligible benefit.
B. The maximum amount of the eligible benefit
C. The minimum amount policyholder must first pay. It varies depending on the total
medical cost.
D. The amount borne by the insurer when a medical claim is made.

60. What does the Latin phrase ‘caveat emptor’ means?


A. Let the buyer beware
B. Let the seller beware
C. Let the assignee beware
D. Let the assignor beware

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
61. Tom got admitted to a hospital and was charged RM3, 000. Tom’s policy had a
deductible of RM2, 000 and coinsurance of 20%. How much can Tom claim back
from the insurance company?
A. RM1,000
B. RM1,400
C. RM800
D. RM3,000

62. Managed Care Organizations are required to register with the


A. Bank Negara Malaysia
B. Ministry of Health
C. LIAM
D. PIDM

63. What is the formula for gross premium?


A. Pure risk premium + interest
B. Net premium + management expenses + profit
C. Net Premium + management expenses and interest + profit
D. Net Premium + management expenses and contingencies + Profit

64. What is the formula for net premium?


A. Net premium + interest
B. Gross premium + profit
C. Pure risk premium + profit
D. Pure risk premium + interest

65. A minor who has attained the age of ____ may affect a life policy on his own life or
upon another life in which he has an insurable interest.
A. 13
B. 14
C. 15
D. 16

66. What are the major factors which influence mortality?


I. Geographical location
II. Ethnicity
III. Personal habits
IV. Social status
A. I, II, III
B. I, III, IV
C. II, III, IV
D. I, II, III, IV

67. One that will influence a prudent underwriter in deciding whether to accept or reject
the risk and to determine the terms of coverage and premium payable is the
definition of?
A. Physical hazard
B. Material fact
C. Switching
D. Twisting

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
68. What is the role of an underwriter?
A. Determine whether to accept or reject a risk
B. Reject risk
C. Decides on premium pricing
D. Implement an insurer’s strategic plan

69. The relationship between the principal and the agent may come about in three main
ways. Which of the following is not?
A. Agency by ratification
B. Agency by necessity
C. Agency by agreement
D. Agency by appointment

70. An insurance agent is defined by the Financial Services Act 2013 as a person who
does all or any of the following:
I. Solicits or obtains a proposal for insurance on behalf of an insurer
II. Offers or assumes to act on behalf of an insurer in negotiating a policy
III. Develops a new policy on behalf of an insurer
IV. Does any other act on behalf of an insurer in relation to the issuance, renewal or
continuance of a policy
A. I, II, III
B. I, II, IV
C. II, III, IV
D. I, II, III, IV

71. Sam is a 35 year old who bought a term policy of RM500k for 30 years. When he is
55 years old, how much he can get back?
A. RM500,000
B. RM170,000
C. RM0
D. RM100,000

72. Which of the following does NOT form an integral part of an insurance policy?
I. Schedule
II. Proposal form
III. Operative clause
IV. Attestation
V. Exclusions and conditions
A. I, II, III, IV
B. II only
C. II, IV
D. II, IV, IV

73. The principal and agent relationship may be terminated by


I. Notice of revocation
II. Notice of renunciation
III. By mutual agreement
IV. By death
A. I, II, III
B. I, II, IV
C. II, III, IV
D. I, II, III, IV

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
74. When can ostensible authority arise?
I. The principal has restricted the authority of a validly appointed agent
II. The apparent agent has never been appointed at all
III. Unknown to the third party, the authority of the agent has been terminated
IV. When agents are engaged to bring about contracts with third parties
A. I, II, III
B. I, III, IV
C. II, III, IV
D. I, II, III, IV

75. Which of the following is NOT a Medical and Health Insurance Product?
A. Hospital and surgical insurance
B. Critical illness or dread disease insurance
C. Permanent disability income
D. Disability income insurance

76. What is the tax relief for the purchase of Medical and Health Insurance and
education policies?
A. RM4, 000
B. RM5, 000
C. RM3, 000
D. RM6, 000

77. Mr. Vellu, who is 25 years old, buys a term insurance of 5 years. After the 5 years,
Mr. Vellu decides that he doesn’t want to continue his policy. On the 6th year, Mr.
Vellu gets into an accident and dies. How much can Mr. Vellu’s nominee claim?
A. RM55, 000
B. RM0
C. RM45, 000
D. RM50, 000

78. For insurance purposes, fire damage is classified as?


A. Fundamental risk
B. Speculative risk
C. Physical hazard
D. Pure risk

79. Tom aged 35 dies in an accident. Upon investigation, Tom’s children found out that
Tom is only 30 years old. How much can Tom’s children claim?
A. Sum assured
B. Sum assured and extra premium tom has paid
C. Sum assured and bonuses
D. No claim

80. How many years will a regular policy acquire surrender value after the policy
holder has paid the premium?
A. 4 years
B. 2 years
C. 3 years
D. 1 year

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
81. The level of protection is reduced but the premium remains unchanged throughout
the term of policy. Such policies are appropriate for mortgage protection where the
sum assured reduces as the loan is being repaid. What type of term assurance is
this?
A. Guaranteed insurability
B. Guaranteed convertibility
C. Decreasing term assurance
D. Guaranteed insurable convertibility

82. Which shall be determined if the policy owner, by notice in writing to the insurer, elect
to exchange the life policy for a paid up policy?
I. In accordance with generally accepted actuarial principals
II. In a manner ensuring fair treatment of the policy owner
III. In a manner consistent with the surrender value payable
IV. In compliance with standard of business conduct of fair treatment of policy owner
A. I, II, III
B. I, III, IV
C. II, III, IV
D. I, II, III, IV

83. If a person shall invite any person to make an offer or proposal to enter into a
contract of insurance, he/she shall disclose
I. The name of the licensed insurer
II. His relationship with his insurer
III. The premium charged by the licensed insurer
IV. The conditions of the policy
A. I, II, III
B. I, III, IV
C. II, III, IV
D. I, II, III, IV

84. If a person shall arrange a group policy in relationship to whom he has no insurable
interest to make an offer or proposal to enter into a contract of insurance, he/she
shall disclose
I. The name of the licensed insurer
II. His relationship with his insurer
III. The premium charged by the licensed insurer
IV. The conditions of the group policy, including the remuneration payable to him
A. I, II, III
B. I, III, IV
C. II, III, IV
D. I, II, III, IV

85. Identify the difference in terms of disclosure requirement when an agent approaches
an individual client to sell individual life insurance as opposed to when he
approaches a group of individuals to arrange for a group policy.
A. The name of the licensed insurer
B. The conditions of the group policy, including the remuneration payable to him
C. His relationship with his insurer
D. The premium charged by the licensed insurer

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
86. It is a method of passing on to the policyholders some of the benefits of the
unrealized capital appreciation or ordinary shares and property holdings of the
company. What is the method of distributing?
A. Simple Reversionary Bonus
B. Cash Bonus
C. Maturity Bonus
D. Interim Bonus

87. Which of the following documents are required for a death claim
I. Original policy contract
II. Proof of age
III. Original burial permit
IV. Proof of relationship
A. I, II, III
B. I, III, IV
C. II, III, IV
D. I, II, III, IV

88. Which of the following is true about the non-contestability clause for life insurance
policies?
A. If a life policy has been in force for more than 2 years, the insurer will be able
to contest the validity of the policy because of careless misrepresentation.
B. If a life policy has been in force for less than 2 years, the insurer will not be
able to contest the validity of the policy.
C. If a life policy has been in force for more than 2 years, the insurer will not be
able to contest the validity of the policy unless the insurer can show proof that
misrepresentation or non-disclosure was of material fact done deliberately or
with fraudulent intent.
D. If a life policy has been in force for 1 year, the insurer will not be able to
contest the validity of the policy.

89. What is an operative clause of an insurance policy?


A. The clause that describes or refers to the cover provided by the insurer
B. The clause that describes what the insured must do in the event of a claim
C. The clause that refers to the proposal, the parties and the premium
D. The clause that describes the risk excluded from the policy cover

90. “ A matter of fact which, if known by the insurer, would have led to its refusal to
issue a life policy or would have led it to impose terms less favorable to the policy
owner than those imposed in the life policy”
A. Proposal form
B. Material fact
C. Agent’s report
D. Underwriting

91. When a person agreed to pay the premium, this situation is:
A. Offer and Acceptance
B. Intention to create a legal relationship
C. Consideration
D. Contractual capacity

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
92. Name: Mary
Age: 47
Occupation: Freelance
Spouse: Unemployed
What is the insurance that best suit Mary?
I. Dental Insurance
II. Whole Life Insurance
III. Maternity Insurance
IV. Critical Illness Insurance
A. I, II, IV
B. II, IV
C. II, III, IV
D. II, III

93. How many parties are involved in a group insurance policy?


A. Employee, Employer, Insurance Company
B. Employer, Employee, Agent
C. Employee, Insurance Company, Agent,
D. Insurance Company ,Agent

94. Which of the following does not form an integral part of an insurance policy?
I. Schedule
II. Proposal form
III. Operative clause
IV. Attestation
V. Exclusion and conditions
A. II
B. IV
C. II, V
D. III

95. The following documents are required for a total and permanent disability claim to
an accident, EXCEPT
A. A certified copy of the attending doctor’s credentials
B. A duly completed claim form
C. A medical certification by the attending doctor
D. A certified copy of the police report

96. What is a voidable contract?


A. One party’s legal incapacity to enter to a contract
B. A contract which is binding but either party has the right to set it aside
C. A fundamental mistake rendering the contract void
D. A breach of contract by one or two parties

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
97. Which of the following are the group life underwriting guideline:
I. Minimum number of employees in a group life policy is 10
II. Eligibility is to confined only permanent employees between the ages of 16-60
III. Minimum number of employees in a group life policy is 15
IV. Employer are allowed to buy a huge amount of sum assured for each and every
employee
A. I, II
B. I,III
C. II, III
D. II, IV

98. Which of the following policies has no saving element in it?


A. Whole life
B. Term
C. Endowment
D. None of the above

99. In the case of a missing person, what is the time lapse before a statutory
presumption of death can be issued by a court?
A. 7 years
B. 6 years
C. 5 years
D. 4 years

100. How much is the personal tax relief for the purchase of the life insurance
including contributions to the Employees Provident Fund (EPF)?
A. RM3,000
B. RM4,000
C. RM5,000
D. RM6,000

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)
Answer Key:

1. A 26. A 51. B 76. C


2. A 27. D 52. A 77. B
3. B 28. A 53. A 78. D
4. A 29. A 54. D 79. B
5. A 30. A 55. D 80. C
6. B 31. A 56. D 81. C
7. C 32. D 57. D 82. D
8. A 33. D 58. D 83. B
9. B 34. A 59. A 84. D
10. B 35. C 60. A 85. B
11. A 36. A 61. C 86. C
12. A 37. D 62. B 87. D
13. C 38. A 63. D 88. C
14. C 39. B 64. D 89. A
15. A 40. D 65. D 90. B
16. B 41. A 66. D 91. C
17. A 42. A 67. B 92. B
18. D 43. A 68. A 93. A
19. D 44. B 69. D 94. A
20. A 45. B 70. B 95. A
21. A 46. A 71. C 96. B
22. A 47. A 72. B 97. A
23. A 48. C 73. D 98. B
24. B 49. A 74. A 99. A
25. D 50. A 75. C 100. D

Hong Leong Assurance Berhad (94613-X)


First Sales Academy (Apr 2016)

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