IC02 - LICENTIATE - Practice of Life Insurance 02
IC02 - LICENTIATE - Practice of Life Insurance 02
Q 1. Who can be appointed as a trustee for an insurance policy under the MWP Act?
A) Only an individual
B) Only a corporate entity
C) Both an individual and a corporate entity
D) Only a legal representative
E) The policyholder's spouse
Q 2. Which type of treatment is covered by health insurance if the insured is hospitalized for more than 24 hours?
A) Dental treatment
B) Diagnostic tests
C) ICU treatment
D) Cosmetic treatment
E) Homeopathic treatment
Q 3. Which factor is important for Sharad Sharma in choosing an investment plan?
A) Wealth accumulation
B) High-risk investments
C) Monthly expenses during retirement
D) Short-term gains
E) Investment liquidity
Q 4. How can an annuity premium be paid?
A) Only in lump sum
B) Only in instalments
C) Both in lump sum and instalments
D) Through monthly deductions from salary
E) Through annual contributions from an employer
Q 5. What is the key characteristic of an annuity certain and life thereafter?
A) Fixed annuity payment for a fixed term
B) Payment of annuity for as long as the annuitant lives
C) Annuity payment ceases on the annuitant's death
D) Lump sum payment to the beneficiaries on the annuitant's death
E) Return of the accumulated fund to the annuitant's beneficiaries
Q 6. What is a disadvantage of investing in annuity?
A) Regular payment after retirement
B) Money gets blocked till retirement
C) Provides financial independence
D) An option for diversifying the portfolio
E) Immediate payment option
Q 7. Which factors determine the amount of insurance cover for each employee in a group insurance scheme?
A) Employee grade/designation
B) Salary drawn by the individuals
C) Duration of employment with the current employer
D) All of the above
E) None of the above
Q 8. Who is issued a master policy in a creditor-debtor group?
A) Individual debtors
B) Creditors
C) Insurance company
D) Group members
E) None of the above
Q 9. What is the general eligibility condition regarding the formation of a group for group insurance?
A) Insurance cover must be the primary motive for forming the group
B) Insurance cover must not be the primary motive for forming the group
C) The group must have a minimum number of members
D) The group must have a maximum limit on the number of members
E) None of the above
Q 10. Who acts as the principal policyholder in an employer-employee group term insurance scheme?
A) The employer
B) The insurance company
C) The employees
D) The government
E) None of the above
Q 11. What is the purpose of purchasing a Group Gratuity Scheme from an insurance company?
A) To fulfill the statutory requirement of gratuity payment
B) To enhance the value of the benefit available to employees
C) To manage the funds required for gratuity payment
D) To provide additional financial security to employees
E) All of the above
Q 12. How can the insurance company benefit employees in addition to gratuity?
A) By providing group term insurance
B) By offering higher returns on investments
C) By ensuring the safety of the investment portfolio
D) By accurately estimating future liabilities
E) None of the above
Q 13. What is an advantage of a defined benefit scheme?
A) The employer does not have to worry about the amount to be paid, as it is predetermined.
B) The employee has control over the investments and can earn higher returns.
C) The employer can contribute a varying amount based on the performance of the company.
D) The pension amount could become substantial if the investments earn good returns.
E) None of the above.
Q 14. What is the relationship between leave encashment and the employee's retirement/leaving the company?
A) The employee receives leave encashment only upon retirement.
B) The employee receives leave encashment only upon leaving the company.
C) The employee receives leave encashment upon both retirement and leaving the company.
D) The employee does not receive leave encashment.
E) None of the above.
Q 15. How is the insurance amount determined in the Social Security Scheme?
A) It is a fixed amount for all beneficiaries.
B) It depends on the occupation of the insured individual.
C) It is based on the duration of service.
D) It is calculated based on the salary of the insured individual.
E) None of the above
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