4th September 2020

1. Need Analysis is key in sales .Which statement is not true on the use of need analysis form?1mk

A) Not to over or under sale

B) To get referrals

C) Acquire quality business

D) None of the above

2. What is the Vision of CIC Group?1mk

A) Enable people achieve financial security

B) To be a world class provider of insurance and other financial services

C) Enable people have peace of mind

D) To provide insurance covers to all

3. Differentiate between Premium and Policy term in Academia?1mk

A) Premium term is the cover period while policy term is the duration of cover

B) premium term is the period the client makes contribution while Policy term is the entire period of the policy

C) Premium term is the period the client pays for the policy while policy term is the same as premium term

D) None of the above.

4. There is an inbuilt rider offered in both Academia and Smart Saver Polices which one is that?1mk

A) Waiver of premium on critical illness

B) Waiver of premium on Disability

C) Waiver of premium on accidents

D) Accidental Death

5. What happens when You forget your password while using the sales App?1mk

A) Click forget password button in the

B) Call head office

C) Ask a friend

D) Call your manager

6. Goal Setting is key in sales career? Which statement is true

A. One should have short, medium and long term

B. One should have Short and long-term

C. One should have Medium and long term

D. One should have long-term goals

1. What is insurance fraud 1mk

A) A deliberate deception perpetrated against an insurance company, by an agent or consumer for the purposes of unjustified financial gain

B) Spreading rumors on the operations of an insurance company.

C) Changing the minds of a client when selling an insurance product.

D) Is a process of buying, using, selling and underwriting insurance businesses

2. What is the name of fraud perpetrated against the company or its policyholders by employees or agents and financial advisors? 1mk

A) Internal fraud scheme

B) Churning.

C) Rebating.

D) External fraud scheme.

3. Which one of the following is not a motive of insurance fraud crimes?

A. Commission earnings1mk

B. Performance incentive

C. Guarantee pay

D. Maturity earnings

4. What is meant by rebating? 1mk

A) Rebating is where an existing in-force life insurance policy is replaced for the purpose of earning additional first year commissions

B) Rebating is the act of replacing a policy from another insurer with one from CIC

C) Rebating is the act of offering or giving anything of value as an inducement to purchase insurance that is not plainly specified in a life insurance policy.

D) Refers to the act where the financial advisor collects premium from the client but never remits it to the company

5. Which one of the following is a way in which financial advisors create fictitious policies? 1mk

A) Not delivering the policy document to the client

B) where the financial advisors submit fictitious/nonexistence policies to improve their portfolio and in return their compensation in terms of commissions or benefits.

C) Paying premium on behalf of the client.

D) Swindling client’s premium

6. Which one of the following is not a role of an FA in preventing fraud? 1mk

A) Reporting cases of anti-money laundering

B) Whistle blowing as pertains to ethics

C) Knowing the customer, he/she is dealing with

D) Decline payment of claims.

7. What does knowing your customer mean? 1mk

A) Giving wrong policy document to the client

B) Understanding the customers’ businesses and source of income

C) Reporting all suspicious transactions

D) Knowing where your customer lives.

8. Who is a whistle blower? 1mk

A) A person who spreads rumors about the insurance company she/he is working for

B) An individual who doesn’t remit clients premium to the insurance company

C) A person who exposes any kind of information or activity that is deemed illegal, unethical, or not correct within an organization

D) An individual who deceives clients.

9. Why would a financial advisor issue a bad cheque? 1mk

A) to earn commission

B) to assist the client, pay premium

C) to increase his/her portfolio.

) To deactivate clients account.

10. What does churning mean? 1mk

A) where an existing in-force life insurance policy is replaced for the purpose of earning additional first year commissions.

B) where the financial adviser collects premium from the client but never remits it to the company

C) issuing of bad cheques with the intention to earn commission after which the cheques are dishonored and not replaced or cannot be replaced.

D) Signing a policy document on behalf of the client

11. A financial advisor should have the following pre-requisite requirements to avoid mis-seling except? 1mk

A) understand the clients’ needs,

B) Understand CIC life products.

C) reference materials for all products

D) Competitors selling points.

1. Which statement is incorrect for an Academia policy in the event the child dies during the Premium term? (1mk)

A) The clients gets refund of premiums

B) Client nominate another child

C) CIC transfers premium to another policy

D) All the 3 statements are true

2. What are the Core values of CIC Group.?

A. Integrity, Teamwork, performance and Integrity

B. Integrity, Cooperation, performance and Dynamism

C. Integrity, Cooperation, performance and Teamwork

D. Integrity, Dynamism, Performance and Teamwork

3. What is the minimum and maximum premium term for Academia?

A. 5 years and 10

B. 6 years and 10 years

C. 5 Years and 14 Years

D. 6 Years and 9 years

4. What is an invest plan policy?

A. It is an Endowment policy where the SA is payable in period installments on survival or on death within the term.

B. It is an Endowment policy where the SA is payable in period installments on death within the term.

C. It is an Endowment policy where the SA is payable in period installments on survival within the term.

E. None of the above

5. What are riders?

A. These are optional benefits

B. They are additional benefits

C. a & b

D. None of the above

6. What are the compliance requirements in the insurance sales profession for an independent financial contractor?

A. IRA and COP

B. IRA, I-TAX, COP

C. Provisional licenses IRA, COP, I-TAX

D. I don’t know

7. Smart saver has a minimum and maximum age at entry which statement is correct? 1mk

A) Minimum term 20 years and maximum term 60 years

B) Minimum term 20 years and maximum term 65 years

C) Minimum term 18 years and maximum term 60 years

D) Minimum term 18 years and maximum term 65 years

8. Does Funeral expense has a waiting period? If yes what is the waiting period 2mks

A. No funeral expense does not have a waiting period

B. Yes funeral expense has a waiting period of 6 months

C. Yes Funeral expense has a waiting period of 6 months except for accidental death

D. No Funeral expense doesn’t not have a waiting period for both natural and accidental death

9. Malkia aged 35 married to Murungu aged 40 has 2 children who are both in high school. She had purchased a funeral expense and made a single payment premium for the entire cover period 3 years ago. The Sum assured of her funeral cover is 100,000. Unfortunately they all perish in a road accident along Nyeri –Meru highway .How much will the beneficiary for Malkia claim?1mk

A. Sum assured of 100,000

B. Sum assured of 400,000

C. Sum assured of 300,000

D. Sum assured of 200,000

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4th September 2020

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