Written Test guidance for qualifying examination for promotion of officers from Scale-I to Scale-II, Scale-II
to Scale-III, Scale III to Scale-IV and Scale IV to Scale V
All officers included in the zone of consideration for promotion from (1) Scale-I to Scale-II, (2) Scale-II to Scale-III,
(3) Scale-III to Scale-IV and (4) Scale-IV to Scale-V shall be required to qualify in a Written Test, to be conducted
by a professional examining body before being included in further process for consideration of promotion for the
year concerned.
For promotions as in (1) and (2) above, there will be multiple choice trade test of two-hour duration. The participants
have to answer 100 questions each out of 120 questions but in the introductory year, there will be a provision for
choosing from 150 questions as a special case. There will be a provision for negative mark for incorrect answer to
the extent of 50 percent of positive mark in case of correct answer. There will be no negative mark for shortfall in
answering questions. All excess answers will be ignored in descending order. There will be suitable weightage in
setting questions on technical operations and Human resource areas. Weightage for Human Resource area will
increase with increasing cadre for promotion.
For promotions as in (3) and (4) above, 50 percent of written test will be trade test of multiple choice questions and
50 percent will be reflective questions, which will be answered in maximum ten bullet points each (hence called
bullet test). There will be 20 percent options to choose from. The stress will be to test potential or domain strategy
also. In trade test there will be distributed weightage for commitment of operations, human resource management
and strategic decisions respectively. There will be 60 objective questions (75 questions in the introductory year) of
which 50 questions are to be answered. There will be a provision for negative mark for incorrect answer to the
extent of 50 percent of positive mark in case of correct answer. There will be no negative marks for shortfall in
answering questions. All excess answers will be ignored in descending order. For the reflective part of the test,
participants will have to answer 4 out of six questions. Only first four questions answered will be evaluated and
there is no negative mark on shortfall in answering questions. Duration of the exam is 2 hours together for trade test
and bullet test.
In assessment, maximum weightage in terms of numerical marks for various criteria like written test, insurance
qualification, work record, seniority and interview will be as per the promotion policy of the company but specifically
the maximum weightage for written test will be as follows:
(1) Scale-I to II 30 percent (to be assigned from maximum 100 trade test marks)
(2) Scale-II to III 30 percent (to be assigned from maximum 100 trade test marks)
(3) Scale III to IV
30 percent (to be assigned from maximum 50 trade test and 50 bullet test marks)
(4) Scale IV to V 25 percent (to be assigned from maximum 50 trade test and 50 bullet test marks)
A. Trade Test
Pick the response that best represents what you would do if you were the executive to decide then and there.
Follow the directions in the question you have chosen. Mark the answer by unambiguously circling the answer.
Proceed to the next question or response. Here you will be presented with a new event with another selection of
responses. Again, select the action (answer) that best represents what you would do to handle the event.
It is extremely important on the real exam that you keep track of the questions you have answered. Circling two or
more items in the same questions will invalidate your answer and the answer will be treated as wrong. On the real
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exam all your answers will be recorded since you cannot erase the circled answers. In case of multiple circling, you
have to cross the wrong circles without ambiguity.
1
2
3
4
(In this case choice 2 will be considered cancelled.)
Don’t look ahead to see how things turn out there as your question number and question there may not be same.
Some questions for others may not ever be in your question set. Just pick the response that best represents what
you would do. For the purposes of this exercise assume you have the knowledge, responsibilities, and authority to
carry out any of the presented actions.
Proceed with the question book using the answer sheet, which should have same identification number. After you
have completed the answer sheet please submit both question book and answer sheet to the invigilation. No
candidate is allowed to take away from the examination hall either the question booklet or answer sheet. Any such
action will be considered an offence.
1.
Practice
Practice, practice, practice. It's crucial. We have been told countless times by successful test takers that practicing with
dummy questions has helped them to significantly raise their exam scores. As you practice, you develop an
understanding of how to do well with the various sections of the exam. And, when you practice with dummy questions,
use a homemade' answer sheet rather than marking your answers in the booklet. Then, you'll be able to review the
questions again in the future. Also, it's best to answer a few questions and then check your answers at once. You can
see whether you're on track. Even when you answer a question correctly, ascertain the answer' from a reliable source
to ensure you answered correctly for the right reasons.
Practicing is also important because the exam can be a test of your endurance as much as a test of your reasoning
ability. Most of us aren't used to sitting for hours reading material we could care less about. Since practicing the exam
preparation questions at home doesn't require the same degree of discipline as taking the actual exam, keep some
difficult situations to answer than those you're likely to find on the actual exam.
Try to spread your studying over a period of time. It's not wise to pack it all into the night or even the week before the
exam.
2.
Think positively!
It really helps to view taking the exam as a positive experience rather than as a dreaded activity. What we tell ourselves
has a powerful effect on how we view what's happening to us. And this, in turn, will affect what actually will happen to
us. Many studies have shown that people who consciously try to think positively can improve their performance. If we
worry or obsess about the exam, we're simply wasting valuable energy. Thinking takes energy. And negative thinking
takes even more energy.
If, for example, underwriting is your demon, then keep telling yourself, "I do well in underwriting." If you get anxious
when taking the exam and the pages start swimming before your eyes, tell yourself "I think clearly under pressure."
Create thoughts that are positive and in the present tense. It's more empowering to say, "I am perfectly calm whenever I
take an exam" than to say "I will not be nervous during the exam." The latter phrase doesn't support you because it
introduces an element of doubt. (And, you can do without doubt!)
For some people, their negative self-talk involves putting themselves down, perhaps because they've not done well in
the past on exams. If this is true for you, try to remember that being able to answer test questions correctly doesn't
reflect on your intelligence, your worth, or how well you actually perform your job. It simply reflects upon your ability to
answer test questions. That's all!
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3.
Exercise patience and persistence
Be patient with yourself, with the exam preparation questions and with the exam itself. When you practice, don't get
rattled if you do poorly at first. Just stay with it. Persistence does pay!
One favorite trick of the impatient person is to think that there must be a typo (typographical error) in the exam booklet.
Or, to be overly enamored with choice D: ("none of the above" or "all of the above"). Sure, typos do occur, but not too
frequently and "none of the above" may also not be the correct answer. In fact, it's not often given as a choice for most
exam questions.
How do `good' test takers differ from `poor' ones? Those who succeed develop confidence; they believe that the
problem can be solved and that they can solve it. And because they believe that, they are persistent. They stick with a
problem until they're satisfied they've selected the right answer. They also analyze problems step by step, breaking
them into manageable (understandable) parts. They often creatively manipulate the information, translate it into real life
examples or draw diagrams or write things down in simple terms or reorganize the information so that it becomes more
understandable.
4.
Pace yourself
Know how much time you have and watch that time so you can pace yourself. You don't have to speed through the
exam; the individual sections aren't timed and you generally have enough time to finish them all. You are given 2 hours
for 100 questions. But of course, some sections will take longer than others. Most people have enough time to not only
finish but to go back over each section and recheck difficult questions. One caution: if you choose to skip a difficult
question and move on, be sure to clearly make note of which question you're skipping so you return to it easily later.
There will be sample choices with 20 excess questions to skip. (In the first year of this test there will be ample choices
with 50 excess questions)
5.
Read the exam material carefully
We simply can't stress this enough. Sometimes there will be just one word in an answer that will make that choice the
wrong one.
6.
Pick the `best' possible answer
Read all choices and pick the best answer. If you want to do well on the exam, you have to get used to being asked to
pick the most likely choice!
Don't let a question unnerve you. And please. Don’t pick an incorrect answer on principle. That is, don't pick an answer
because you believe it's the best one in practice, even though you believe the exam writers would probably disagree
with you because of statute or rule or regulation in vogue. This is most likely to occur with some supervisory questions.
Or, you may know the "proper" response, the one you believe the exam writers would prefer but you may feel that
there's no way that response would work in real life. You may well be correct in practice, but so what? It's not worth
lowering your score just to make a point.
7.
Assess the reasonableness of your conclusions
Don't be falsely reassured if the answer you think is correct in practice but not in theory is one of the choices. But test
makers are clever: they often figure out the mistakes people are most likely to make due to wrong practices and insert
these as choices.
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Sometimes we choose an answer that is so far off that in retrospect, it's hard to imagine how we could have done
so.
8.
Don't overanalyze nor jump to conclusions
Be careful about being too picky; too analytical. Some people just get too wrapped up in one aspect of a question, or
they tend to read too much into a question. This can cause you frustration and lead to your choosing a wrong answer.
Similarly, if you know a lot about the content of a question, you may not read as carefully as you should, or you may
read information into the question that isn't there.
Don't jump to conclusions! Don't be in such a rush to finish the exam that you fasten onto something too quickly. And
beware of picking the first choice prematurely. It's not that "Choice A" can't be the answer, but the first choice is
sometimes designed to bait those who tend to be impatient and careless.
9.
Never score a right answer at wrong place!
If you encounter a question that leaves you clueless as to the right answer, make note of it, skip it, and move on. Just
remember to go back and answer it. And if you do skip a question, be absolutely certain to skip the corresponding
space on the answer sheet. It's terribly frustrating to get to the end of a section only to find that you have a space left
over. If this happens, don't panic. Just work patiently backwards, retracing your answers to see where you skipped.
Don't be intimidated by technical topics or strange words in reading the questions. The answer is there and you don't
need to be an expert to figure it out.
10.
Use scrap paper space in question booklet and treat it appropriately
Use scrap paper to make your notes and keep your scrap sheets labeled and in order. Scrap paper can help you later,
particularly in the sections when you need to check your work.
Regarding tabular questions, it's wise to look over all the choices first. You may not need to do as much calculating as
you might at first think. For example, sometimes tables on exams contain question marks instead of data. It's important
to not waste time doing calculations to fill in all of the question marks before you begin because it's unlikely you'll need
all the information.
Q1. Mark the most unlikely answer below. During course of audit, CAG auditors examine whether: 1. the renewal notices are sent to the policy holders before the expiry date of the current insurance policy.
2. the proposal forms duly filled having all material information required by the insurers in respect of risks are
obtained from the insureds.
3. the policies are issued to the policy holders in time before issue of cover notes.
4. the terms and conditions are attached with the insurance policies.
1
2
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4
(The circling should be done in choice 3. The policies are issued after issue of the cover note not before)
Q2. As executive responsible for managing payment of commission to intermediaries, which of the following is most
likely to be inappropriate practice?
4
1.
2.
3.
4.
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Direct business is booked against agents only.
The commission payments to agents confirm to the instructions on the applicable rates.
Only licensed agents are paid the commission.
The Brokers are paid commission only on specific mandate from the clients.
2
3
4
(The circling should be done in choice 1. Direct business need not necessarily be booked against agent)
Q3. The losses due to the factors beyond the control of the management in respect of motor TP portfolio may not
be attributed to following:
1. Increase in road accidents due to poor condition of the road.
2. Use of very old vehicles to ply on road.
3. Virtually no defense against the payment of compensation to the insured by the tribunal even when driving
license, registration no. and policy found fake.
4. None of the above
1
2
3
4
(The circling should be done in choice 4. As all other three choices are attributes for motor TP losses not under control
of management, “none of the above” should be the answer.)
Q4. Which of the following is not liability insurance
1.
2.
3.
4.
1
Product liability
Marine cargo
Directors & Officers’ liability
Errors and omissions
22
3
4
(The circling should be done in choice 2. Marine Cargo is a property insurance line)
Q5. What may not be necessary to take an insurance exposure in India?
1.
2.
3.
4.
1
Observing know your customer and antimony laundering provisions;
License from IRDA as an insurance company;
Solvency of the insurance company;
Solvency of the insured.
2
3
4
(The circling should be done in choice 4. Solvency of the insured is not a necessary condition for insurance exposure by
an insurer.)
Q6. Which one is correct statement in respect of reinsurance?
1. Only GIC can reinsure in India;
2. No company accepting reinsurance can be a primary insurer in India;
3. Reinsurance commission is passed on to the primary insured;
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4. Same risk can be part reinsured with many reinsurers.
1
2
3
44
(The circling should be done in choice 4. Even primary insurance companies can accept inward reinsurance. So GIC is
not the only reinsurer in India. Reinsurance commission is paid to the primary insurer. A risk can have several layers
and each layer may have a different reinsurer.)
B. Bullet Test
Following sample questions indicate the nature of bullet test.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Explain the role of an Account Executive in insurance;
Differentiate between business-to-business selling and consumer markets;
Demonstrate the ability to organize a sales territory;
Describe methods used to encourage exceptional customer service of the salespeople in your team;
Explain the techniques to negotiate with corporate buyers for packaged product pricing;
Illustrate the contents of a promotion of product to a group of buyers;
Identify and explain the skills necessary for insurance product development;
Produce a training manual content index for retail insurance personnel;
Explain the purpose of an actuarial report;
Create a form to be used as a sales call report.
Describe conflict resolution skills to resolve conflicts;
Illustrate techniques to motivate employees to excel.
Answers to such questions should be in maximum ten bullet points; each point not exceeding a standard sentence
in available space in the answer sheet.
Sample answers to bullet taste questions:
Q1. Explain your view on employees motivation for sustained good performance.
Answer:
1. Employee motivation is not based on my power or control; my role is to create a motivational climate.
2. Motivation climate is comprised of: the job itself, my image and the related activities.
3. Developing a motivational climate includes: my acting as role model, supporting decisions, effective
communication and problem solving.
4. Try to provide employees with the whole picture of the business.
5. Make time to listen.
6. Provide opportunities for employee suggestions and innovations.
7. Support employee’s career development.
8. Keep employees abreast of issues that impact their jobs.
9. Invite a variety of different opinions and do so in a positive manner.
10.
(Here only 9 out of ten possible bullet spaces are used. There will be no 11 th space, which must be noted. Each
bullet space can accommodate at best three lines of standard handwritten single sentence.)
Q2. If you are to scrutinize the claim settlement procedure followed by one office, how you will structure your report.
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1. Whether appropriate claims processing and payment procedures are established, documented and
communicated to personnel handling the claims.
2. Whether the established procedures are effectively monitored.
3. Whether there are adequate procedures to identify and investigate suspicious or contestable claims.
4. Whether procedures are established and communicated to claims department personnel in respect of
amounts recoverable (e.g., salvage and subrogation).
5. Whether there are adequate monitoring measures in case of intermediaries and outsiders involved in
the processing and payment of claims.
6. Whether Claims procedures are established to ensure that valid claims are not incorrectly denied
leading to extra-contractual liability or regulatory scrutiny.
7. Whether at the time of claims processing, reinsurance taken is adequately considered and the
reinsurances are duly notified in advance.
8. Whether there are adequate procedures for estimation of loss reserve and the relevant calculations
and assumptions are approved by a designated official.
9. Whether industry specialists such as actuaries are consulted where circumstances warrant.
10. Whether changes in foreign currency exchange rates are appropriately applied in relation to the
historical cost data.
(Here all 10 out of ten possible bullet spaces are used. There will be no 11 th space, which must be noted. Each
bullet space can accommodate at best three lines of standard handwritten single sentence.)
Reading tips
Here are what we hope are helpful suggestions for you when reading questions and analyzing/interpreting the
questions.
1.
Sometimes it helps to quickly skim the material before trying to actually read it. Skimming will give you a
general sense of the content and how it's organized. If you know what's coming, you can more easily recognize what
will be important as you actually read the material.
2.
Sometimes the only way to grasp the meaning of a particularly difficult question is to analyze it and then
translate it into words that make sense to you. This is especially true if the sentences are long and contain several
ideas. In these instances read the question and try to cut it down until you get the essence of it. Try to determine in one
or two simple statements what the author is really expressing. Read each sentence silently and slowly word for word,
pausing for commas and other punctuation. Be careful not to spend too much time on any one question. If you really
feel stuck, move on and complete the exam. Then if you have time return to the question.
3.
Be careful of qualifying words like: no, few, many, most, all, never, occasionally, usually, frequently, always,
and except. When any of these words appear in a question, they change the nature of that question. Be equally aware
of these same qualifying words in the answer choices. Make sure the word used in the answer agrees with what was
said in the question. Be especially careful of words like all, none, always and never. They may make the statement too
strong to be true!
4.
Sometimes you can just look at a question and know the answer. But always check the answer to make
certain.
5.
When you don't know the answer to a question that asks for a specific detail, resist the temptation to read the
entire question if it's a long one. Think about where in the passage the needed information might be located. Skim to
see if you can find the information. As you skim, look for key words that relate to what you're searching for.
7
6.
You may want to read the question before you read the choices as answer. Some people find, it helps them to
locate the information they need when they read the answer. This can sometimes be helpful if you have a problem just
getting into a particular question.
Good luck with this section of the booklet!
Preparation and stress management before and during the test
Here are what we hope are helpful suggestions for you as a checklist.
1.
Know the test location and get there early
Make sure you know where you need to be and whether parking may be a problem. Try to leave home early and arrive
early. Of course, you can still take the exam, even if you arrive late. But why put added time pressure on yourself?
2.
Arrive prepared
Here are five things we suggest you bring:
(a)
Your admittance card, and some form of ID (just in case).
(b)
A calculator if tables are included on the exam. You may not need it, but bring one anyway as you are allowed.
(c)
A watch to track your time. Generally, there's enough time to answer all exam questions, but timing yourself will
keep you from spending too long on any one section.
(d)
A few black ink bulb pens.
3.
Handle anxiety with controlled breathing
Are you one who takes an initial look at a test booklet and breaks out into a sweat? Have you experienced reading a
passage over and over and having no idea what the words mean? These are common symptoms of a common malady
called anxiety. Many find that spending a few initial seconds doing some deep breathing helps to get centered and
relieve anxiety.
Try it now: Sit up straight, cross your legs at the ankles or put your feet on the floor. Close your eyes and place your
hands loosely on your abdomen. Take in a long, slow breath through your nose and hold it for a few seconds. Then
exhale slowly and evenly through your nose. Repeat this a dozen or so times. If you feel calmer now, plan on doing this
exercise when you begin the exam.
4.
Take deep breaths and short rest breaks
It helps to take short breaks to reduce or minimize the build-up of tension. The exams can be tedious, anxiety producing
and frustrating. Often we are forcing ourselves to concentrate. The added effort creates fatigue, which can interfere
with optimal performance. So take deep breaths, stretch, stare out into space or out the window if there is one. Or, close
your eyes for a while or do other tension release exercises.
Here are a few tension-release exercises that may help you:
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Hold your arm out in front of you. Make a very tight fist. Then, release it and let your arm just fall. Do the same with the
other arm.
Hunch up your shoulders as if you were trying to touch your ears with the tops of your shoulders higher, higher. Now
drop them.
Straighten your leg in front of you and lift it about 6 inches from the floor. Point your toe more, more. Now point your
heel tighter, tighter. Now drop it. Do the same with your other leg.
Doing deep breathing exercises can be very helpful throughout the exam. Your brain needs extra oxygen when in a
stressful situation like test taking. And deep breathing increases your oxygen intake, calm your nervous system, and
increases your vitality. Deep breathing exercises are really worth the few moments they take.
Answer Sheet
Trade Test Answer Sheet
For evaluation +ve For evaluation -ve Excess
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
2
3
3
3
3
3
3
3
3
3
3
4
4
4
4
4
4
4
4
4
4
In cases (1) and (2) there will be 120 such Questions (150 in the introductory year) but only 100 questions will be
evaluated from the top. In cases (3) and (4) there will be 60 such questions (75 in the introductory year) but only 50
questions will be evaluated from the top. In addition for (3) and (4) only there will be bullet test as follows:
Bullet Test
Q1.
1___________________________________________________________________________________________
_________________________________________________________________________
2___________________________________________________________________________________________
_________________________________________________________________________
3___________________________________________________________________________________________
_________________________________________________________________________
4___________________________________________________________________________________________
_________________________________________________________________________
5___________________________________________________________________________________________
_________________________________________________________________________
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6___________________________________________________________________________________________
_________________________________________________________________________
7___________________________________________________________________________________________
_________________________________________________________________________
8___________________________________________________________________________________________
_________________________________________________________________________
9___________________________________________________________________________________________
_________________________________________________________________________
10__________________________________________________________________________________________
_________________________________________________________________
(Like this there will be six questions of which only top four answers will be evaluated)
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