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The correct answer is Solomon S. Huebner.

Key Points

• Solomon S. Huebner developed the concept of Human Life Value.
• Huebner is known widely as "the father of insurance education."
• The concept of "human life value" became a standard method of calculating insurance value and need.
• He established the goal of professionalism in the field of insurance and developed the first collegiate level program in insurance.
• Human Life Value (HLV) is a number that tells the present value of future income expenses, liabilities, and investments.
• ​The HLV number is taken usually to understand how much money would be required to secure the lives of your dependents with term insurance, in case you are no longer around.
• It rests on the premise that all property values in existence are created by individuals.
• This is in direct opposition to the modern concept of "needs analysis" that dominates the financial planning and life insurance industry.
• Ordinarily, there are seven things that are taken into account to assess HLV-
• Age
• Gender
• Occupation
• Target retirement age
• Annual income
• Employment benefits
• Financial information on spouse and children

The correct answer is Cleverness.

Key Points

• Cleverness is NOT a Direct Indicator of Service-Quality.

Additional Information

• Tangibility
• It is the appearance of physical facilities, equipment, personnel, and communication materials.
• Customers tend to expect clean and professional facilities.
• Reliability
• It is the ability to perform the promised service dependably and accurately.
• Customers want to rely on businesses to deliver a working product or effective service.
• Responsiveness
• It is the willingness to help customers and provide prompt service.
• Responding quickly to customer questions and concerns is vital.
• Customers like to know that their requests are being taken seriously.
• Assurance
• It is the knowledge and courtesy of employees and their ability to convey trust and confidence.
• Assurance is significant when customers have many options but aren’t sure who to trust when purchasing.
• Customers expect businesses to be the experts in the service they deliver.
• Empathy
• It is the caring, individualized attention the firm provides its customers.

Mutual Fund business from existing customers can be canvassed by cross selling. Cross-selling is the action or practice of selling an additional product or service to an existing customer. In practice, businesses define cross-selling in many different ways. Elements that might influence the definition might include the size of the business, the industry sector it operates within and the financial motivations of those required to define the term

The correct answer is Inflation.

Key Points

• The term Inflation is used to denote the rise in the general level of prices of goods and services in an economy.
• Inflation refers to the change in the prices of a basket of goods and services in a year.
• In India, the Ministry of Statistics and Programme Implementation measures inflation.
• In India, inflation is primarily measured by two main indices —
• WPI (Wholesale Price Index)
• CPI (Consumer Price Index)
• The CPI calculates the difference in the price of commodities and services such as food, medical care, education, electronics, etc, which Indian consumers buy for use.
• The WPI measures the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses.

Additional Information

• Hyper-Inflation
• ​It is a term to describe rapid, excessive, and out-of-control general price increases in an economy.
• In general, the term is used when the rate of inflation increases by more than 50% a month.
• It reduces purchasing power.
• It rapidly destroys the real value of the local currency, as the prices of all goods increase.
• Deflation
• ​It is a persistent fall in the general price level of goods and services.
• When the overall price level decreases so that the inflation rate becomes negative, it is called deflation
• Reduced investment spending by the government or individuals may also lead to this situation.
• Deflation leads to a problem of increased unemployment due to slack in demand.
• Stagflation
• Stagflation means a situation characterized by a simultaneous increase in prices and stagnation of economic growth.
• It is an economic cycle characterized by slow growth and a high unemployment rate accompanied by inflation.
• Disinflation
• Disinflation is defined as a decrease in the rate of inflation over a period of time.
• It is used to describe situations where the inflation rate has decreased marginally over a short period of time.

The correct answer is Life Assurance.

Key Points

• Life Insurance can be categorized under contingency products.
• Contingency is a possible future situation or event.
• In a life insurance contract, the insurer pays a certain amount if the policyholder dies under certain conditions.
• The insurer is not called into action until the event of the death of the insured happens.
• If there is no contingency, no payment is made.
• Therefore, it is a contingent contract.

Additional Information

• Bank Deposits, Shares, Bonds, and Debentures do not depend on contingency.
• ​It can be used whenever you want to use whether there is urgency or not.

Important Points

• An insurance company provides insurance coverage based on identified risk variables, such as the policyholder's age, general health condition, occupation, and lifestyle.
• The policyholder receives coverage within set parameters in return for payment of an insurance premium.
• If a policyholder has high-risk factors, his premium would be more than his healthier counterpart.

The Consumer Protection Act, 1986 is one of the benevolent social legislation intended to protect the large body of consumers from exploitation. 

• It has become the vehicle for enabling people to secure speedy and in-expensive Redressal of their grievances.
• The Agencies are set up under the Consumer Protection Act 1986 at District, State, and National level to provide simple and inexpensive quick redressal against consumer complaints, where a Consumer can file a complaint in the consumer court against any defective goods purchased or deficient service rendered including restrictive/ unfair trade practice adopted by any trader/person within two years from the date on which cause of action arose.

Important Points The Agencies are as follows:

• a Consumer Disputes Redressal Forum to be known as the "District Forum" established by the State Government in each district. This consumer court deals with complaints where the value of the goods or services and compensation, if any, claimed is less than twenty lakhs.
• a Consumer Disputes Redressal Commission to be known as the "State Commission" established by the State Government; This consumer court deals with complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees twenty lakhs but does not exceed rupees one crore.
• a  National Consumer Disputes Redressal Commission established by the Central Government, which deals with complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore.

Thus, District Forum settles the consumer disputes at the district level.

The correct answer is the Participatory Note.

Key Points

• P-Notes or Participatory Notes are Overseas Derivative Instruments that have Indian stocks as their underlying assets.
• They allow foreign investors to buy stocks listed on Indian exchanges without being registered.
• Certificate of Deposit (CDs) is short-term instruments issued by Commercial Banks and Special Financial Institutions (SFIs), which are freely transferable from one party to another.
• The maturity period of CDs ranges from 91 days to one year.
• These can be issued to individuals, co-operatives and companies.
• Commercial paper, or CP, is a short-term debt instrument issued by companies to raise funds generally for a time period up to one year.
• It is an unsecured money market instrument issued in the form of a promissory note and was introduced in India in 1990.
• A promissory note is a financial instrument that contains a written promise by one party to pay another party a definite sum of money.

The correct answer is The Process, in which, Individual Lives are Categorised and Assigned to Different Risk-Classes, Depending on the Degree of Risks, they Pose.

Key Points

• An insurance company provides insurance coverage based on identified risk variables, such as the policyholder's age, general health condition, occupation, and lifestyle.
• The policyholder receives coverage within set parameters in return for payment of an insurance premium.
• An insurance risk class is a group of individuals or companies that have similar characteristics, which are used to determine the risk associated with underwriting a new policy and the premium that should be charged for coverage.
• Risk-Classification is the process in which individual lives are categorized and assigned to different risk classes depending on the degree of risks they pose.
• The insurance Risk Class is a primary component of deciding which policy is best suited to which individual.

Additional Information

• Life insurance risk classifications are relatively uniform throughout the industry, with some minor variations. The most common classifications are-
• Preferred Plus/Elite
• It is the lowest-risk category.
• People in this risk class are in good health and they are typically younger.
• They have no other immediate cause for concern.
• These people can expect to pay the lowest premiums for life insurance.
• Preferred
• This is a small step down from the preferred plus.
• The policyholders enjoy lower premiums due to good health but may have some subtle issues like higher cholesterol.
• Standard Plus
• They have above-average health, but things like blood pressure or body mass index (BMI) may be outside the ideal range.
• Premiums are more favorable than the Standard risk class but they may pay more than someone in the Preferred or Preferred Plus grouping.
• Standard
• This means typical risk, and for life insurers, it means an average life expectancy.
• One can have some health issues in one's family or past, which keeps them out of more preferred risk groups, resulting in higher premiums.
• Substandard/Rated
• If you are classified as a higher risk than standard, you are subject to various degrees or ratings of substandard, which each insurer approaches a bit differently.
• They have a below-average life expectancy.
• Treatment for chronic illnesses or major health conditions (such as prior heart attack, cancer, or diabetes) may be going on.
• Premiums may be among the highest rates.
• Smoker
• Smokers will pay significantly more due to increased health risks.
• Insurers will ask if you smoke or have in the past several years and may test for the presence of nicotine in routine blood work.

The correct answer is Money Back Plan.

Key Points

• Money Back Plan is an example of an endowment assurance plan.
• It is a type of life insurance product that provides the dual benefit of investment and protection.
• One can receive returns at regular intervals during the policy term.
• It also provides a life cover that keeps an insured person financially protected in case of an unfortunate event.
• It pays out the same maturity benefits in the form of several guaranteed "survival benefits" which are staggered evenly throughout the course of the policy.

Additional Information

• Credit life insurance is a type of life insurance policy designed to pay off a borrower's outstanding debts if the policyholder dies.
• It can be used to pay off existing debts in cases such as death, disability, and in some cases, unemployment.
• This is optional coverage. When purchased, the cost of the policy may be added to the principal amount of the loan.
• Mortgage Redemption Plan is a pure protection term insurance policy catering to insure loans.
• ​It is an insurance policy that provides financial protection for home loan borrowers.
• ​If the life insured dies within the policy tenure, the lump sum assured is used to pay off all the outstanding loans and debts so that the family is not liable to pay any.
• ​Whole life insurance guarantees payment of a death benefit to beneficiaries in exchange for level, regularly-due premium payments.
• The insured person is covered for the duration of their life as long as premiums are paid on time.

The correct answer is 30.

Key Points

• SENSEX(SENSitve indEX) is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange.
• It was introduced by the Bombay stock exchange on 1 January 1986.
• The index is widely reported in both domestic and international markets through print as well as electronic media.
• The index was initially calculated based on the "Full Market Capitalization" methodology but was shifted to the free-float methodology with effect from September 1, 2003.
• The SENSEX is the benchmark index with wide acceptance among individual investors, institutional investors, foreign investors and fund managers.
• The objectives of S&P BSE SENSEX-
• To measure Market Movements
• Benchmark for Funds Performance
• For Index Based Derivatives Products
• Blue Chip companies refer to equity shares of companies with larger market capitalisation. These companies have entrenched market operations running for many years.