IRDAI IC38 (Insurance Agent) Insurance Sales, Documentation and Ethics Syllabus

Insurance Sales, Documentation and Ethics syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Insurance Sales, Documentation and Ethics in IRDAI IC38 (Insurance Agent), not a summary of it.

1. 1

   The Insurance Selling Process

   4 topics

   • Need-based selling and financial planning approach
     • Identifying the prospect's needs and goals
     • Recommending suitable products
   • Prospecting and approaching customers
   • Handling objections and closing the sale
   • Post-sale service and relationship management
2. 2

   Documentation and the Policy Lifecycle

   5 topics

   • The proposal form and its importance
   • Prospectus and Key Features Document
     • Disclosures to be made to the prospect
   • First premium receipt and policy document
   • Endorsements and policy alterations
   • Premium payment, renewal notices and reminders
3. 3

   Ethical Conduct and Anti-Money-Laundering

   4 topics

   • Ethical behaviour and integrity in selling
   • Mis-selling and its consequences
     • Examples of mis-selling practices
     • Treating customers fairly
   • Know Your Customer (KYC) norms
   • Anti-Money-Laundering (AML) guidelines
     • Identification and reporting of suspicious transactions
     • Record-keeping obligations
4. 4

   Claims Management

   5 topics

   • Importance of fair and prompt claims settlement
   • Life insurance claim procedure
     • Maturity and survival benefit claims
     • Death claims and early-claim investigation
   • General insurance claim procedure
     • Loss intimation and survey
     • Role of surveyors and loss assessors
   • Repudiation of claims and dispute resolution
   • The agent's role in assisting claimants

Insurance Sales, Documentation and Ethics flashcards for IRDAI IC38 (Insurance Agent)

22 of 51 cards from the Insurance Sales, Documentation and Ethics deck — real questions with worked answers.

1. What is the core principle of need-based selling in insurance?

   Recommending products that match the customer's actual financial needs and goals — identified through a fact-find — rather than selling whatever earns the agent the most commission.

2. What are the typical steps of the financial planning process an insurance agent should follow?

   1) Establish the client relationship, 2) Gather data and define goals, 3) Analyse the data, 4) Recommend a suitable financial/insurance plan, 5) Implement the plan, 6) Review and monitor periodically.

3. In insurance selling, what is 'prospecting'?

   The process of identifying and developing a list of potential customers (prospects) who have a need for insurance, the ability to pay, and can be approached.

4. Name common methods/sources of prospecting used by insurance agents.

   References/referrals from existing clients, centre of influence, cold calling, personal observation, networking, club/association memberships, and orphan policyholders.

5. What is a 'referral' or 'reference' in prospecting?

   The name of a potential new prospect obtained from an existing satisfied customer or contact, which is one of the most effective and lowest-cost prospecting sources.

6. What is the purpose of the 'approach' stage in the sales process?

   To make first contact with the prospect, create a favourable first impression, build rapport and secure an appointment/interview to discuss their insurance needs.

7. What is an 'objection' in the context of an insurance sale?

   A concern, doubt or resistance expressed by the prospect (e.g. about price, need, timing or trust) that the agent must address before the sale can be closed.

8. What is the recommended general approach to handling a customer objection?

   Listen carefully, acknowledge/empathise, clarify the real concern, respond with relevant facts, and then confirm the objection is resolved before moving on.

9. What does 'closing the sale' mean in insurance selling?

   Helping the prospect reach a buying decision and complete the proposal — the stage where the prospect agrees to purchase the recommended policy.

10. Why is post-sale service important to an insurance agent?

    It builds long-term relationships, increases persistency (fewer lapses), generates referrals and repeat/additional business, and fulfils the agent's duty of care to the client.

11. Give examples of post-sale services an agent provides.

    Delivering the policy document, explaining terms, assisting with premium payments and renewals, processing nominations/endorsements, reviewing changing needs, and helping at claim time.

12. What is relationship management in insurance?

    Maintaining ongoing contact and trust with the policyholder over the policy's life so the customer remains satisfied, retains the policy, and brings further business.

13. What is a proposal form in insurance?

    The basic document/application through which a prospect formally proposes for insurance, providing all material information the insurer needs to assess the risk and decide terms.

14. Why is the proposal form so important legally?

    It is the basis of the insurance contract; the answers and declarations in it form representations and warranties, and any misstatement or non-disclosure of material facts can make the policy voidable.

15. What is the principle of 'utmost good faith' (uberrima fides) in relation to the proposal form?

    Both parties must disclose all material facts truthfully; the proposer is specifically bound to reveal everything relevant to the risk, even if not expressly asked.

16. What is a Prospectus in insurance?

    A document issued by the insurer giving full details of a product — benefits, terms, conditions, scope of cover, warranties and exclusions — to help the prospect make an informed choice.

17. What is a Key Features Document (KFD)?

    A simplified summary given to the prospect highlighting the essential features, benefits, charges, exclusions and risks of a policy so the customer understands what they are buying.

18. What is the First Premium Receipt (FPR) and why is it important?

    The receipt issued when the insurer accepts the proposal and the first premium; it is evidence that the insurance contract has commenced and the risk cover has begun.

19. What is a policy document?

    The legal contract issued by the insurer that contains the full terms, conditions, benefits, exclusions and schedule (sum assured, premium, term, nominee, etc.) of the cover.

20. What information is typically contained in the policy schedule?

    Policyholder details, policy number, plan name, sum assured, premium amount and frequency, policy term, date of commencement, maturity date, and nominee/assignee details.

21. What is an endorsement in an insurance policy?

    A written document/amendment attached to a policy that records any agreed change to its terms, conditions or details, forming part of the contract.

22. Give examples of changes recorded through endorsements/policy alterations.

    Change of name or address, correction of date of birth, change of nominee, change in sum assured or premium mode, change of policy term, or addition/removal of a rider.

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