IC02 - LICENTIATE - Practice Of Life Insurance 24
IC02 - LICENTIATE - Practice Of Life Insurance 24
Q 1. What is the key advantage of a Group Gratuity Scheme for managing gratuity payments?
A) The trust created by the company can enter into a contract with an insurer
B) The insurer can better manage the gratuity portfolio and secure maximum benefits
C) The insurer has a massive investment portfolio that can yield better returns
D) The insurer protects from fluctuations in the market
E) All of the above
Q 2. What happens
to the financial burden of gratuity payments when a large number of employees leave the company?
A) The burden increases significantly
B) The burden remains the same
C) The burden is reduced as the company has already paid a premium to the insurance company
D) The burden is shifted to the insurance company
E) None of the above
Q 3. What happens in the event of an employee's death during service in a group superannuation scheme with a group insurance scheme?
A) The employee's beneficiary receives a lump sum payment.
B) The employee's pension continues to be paid to the spouse.
C) The employee's pension is transferred to the superannuation scheme of the new employer.
D) The employee's pension is adjusted based on actuarial calculations.
E) None of the above.
Q 4. What is the maximum insurance cover amount in the EDLI scheme?
A) Rs. 25,000
B) Rs. 35,000
C) Rs. 60,000
D) It depends on the employee's monthly salary.
E) None of the above.
Q 5. What is issued to employees who are covered under a group insurance scheme?
A) Insurance policy
B) Membership card
C) Certificate of Insurance
D) Group insurance ID
E) None of the above
Q 6. Who bears the investment risks in a ULIP?
A) Insurance company
B) Policyholder / Investor
C) Mutual fund manager
D) Government authorities
E) None of the above
Q 7. Which fund aims to provide both steady income and moderate returns?
A) Equity Fund
B) Debt Fund
C) Balanced Fund
D) Money Market Fund
E) None of the above
Q 8. What is the term used when a policyholder transfers their money from one fund to another in ULIPs?
A) Switching
B) Top-up
C) Premium allocation
D) Mortality charges
E) None of the above
Q 9. What is the difference between the Offer price and the Bid price in ULIPs?
A) The Offer price is higher than the Bid price
B) The Bid price is higher than the Offer price
C) The Offer price and the Bid price are the same
D) The Offer price represents buying units, while the Bid price represents selling units
E) None of the above
Q 10. Which feature of ULIPs allows policyholders to transfer their existing investments from one type of fund to another?
A) Flexibility to increase the insurance cover
B) Flexibility in change of premium
C) Liquidity
D) Switching
E) Riders
Q 11. If a policyholder doesn't pay the premium within the grace period, what happens to the policy?
A) The policy continues as normal.
B) The policy lapses.
C) The policy converts to a paid-up policy.
D) The policy enters a premium holiday period.
E) The policy gets automatically renewed.
Q 12. What is the minimum premium paying term for limited premium unit linked insurance products, excluding single premium products?
A) 2 years
B) 3 years
C) 4 years
D) 5 years
E) 6 years
Q 13. What is the term used for the NAV when a new policyholder invests in a fund?
A) Offer price
B) Bid price
C) Market price
D) Allotment price
E) Redemption price
Q 14. Under what circumstances would there be a duty of disclosure in a new contract for life insurance?
A) When the policy is surrendered.
B) When the policy lapses.
C) When the terms of the policy are to be altered.
D) When a new policy is being issued.
E) When the policy is renewed.
Q 15. Who has an insurable interest in the life of their spouse?
A) Only the husband
B) Only the wife
C) Both the husband and the wife
D) Neither the husband nor the wife
E) It depends on the circumstances