IC02 - LICENTIATE - Practice Of Life Insurance 39

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Q 1. Which insurance plan gives cover only in the event of death during a species?c term?

a) Health Plan

b) Term Plan

c) Life insurance

d) Whole life assurance policy

 
Q 2. What is the excess in the life fund called?

a) Surplus

b) Value stock

c) Bonus

d) Actuarial pro?t
 
Q 3. _________ is not a way to pay insurance premiums.

a) Direct remittance

b) Cash

c) Cheques

d) Postal Order
 
Q 4. If the tabular premium for plan term 5-35 is Rs 36.75, calculate the premium amount for half-yearly mode with a sum assured of Rs 10 lakhs.

a) Rs. 18372

b) Rs. 18373

c) Rs. 18374

d) Rs. 18375
 
Q 5. Insurance companies use Diversi? cation to protect themselves against_______________.

a) Concentration of risks

b) The law of large numbers

c) Parameter changes

d) Correlated risks
 
Q 6.
Amars date of birth is 4th April 1981. The date of commencement of the policy is 4th March 2010. Based on this data, what will be the age of the policyholder, as per the AGE LAST BIRTHDAY method?

a) 27 years

b) 28 years

c) 29 years

d) 30 years

 
Q 7. What's the meaning of 'Consensus ad idem'?

a) Meeting of minds

b) Finalization of contract

c) Topic open to discussion

d) Advertisement in all mediums
 
Q 8.
An Individual wishes to invest Rs 16,000 in an Equity fund. NAV on that particular day for the fund is Rs 40. How many units will he be allowed?

a) 200 units

b) 400 units

c) 800 units

d) 160 units

 
Q 9. How is the insurance premium calculated?

a) based on the Sum Assured and the age of the holder

b) based on Sum Assured and insurance term

c) based on the Sum Assured and the salary of the holder

d) based on Sum Assured and the nature of the holder

 
Q 10. When a policy is lost, insurance companies take utmost care while settling maturity claims because

a) The policy may be pledged elsewhere for a Loan

b) The claim may not be genuine.

c) Both are correct

d) Both are False
 
Q 11. What are the basic elements of life insurance?

a) Premium and riders

b) Safety and Retirement Income

c) Interest yield and variable income

d) Death cover and maturity benefits
 
Q 12. Which of the following statement(s) is/are TRUE?

a) A Debt instrument is a rate of interest, which may be fixed or varying in specified ways

b) A Debt instrument is the duration of the loan and therefore the date of maturity

c) A Debt instrument is an amount lent or borrowed, through the instrument

d) All the above are correct
 
Q 13. Q13) The term used to refer to an Increase in Net or Pure Premium for different reasons

a) Bonus

b) Loadings

c) Office Premium

d) Risk Premium
 
Q 14. In which type of policy the premiums are paid for a stated number of years?

a) Endowment life insurance

b) Cash surrender value

c) Limited payment life insurance

d) Term life insurance
 
Q 15. For which of the following insurance plans will the surrender value factor be the highest after 3 years from inception assuming the same Sum Assured for all the four policies?

a) The insurance Plan for 10 years

b) Insurance plan for 12 years

c) Insurance Plan for 18 years

d) Insurance Plan for 20 years

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