IC02 - LICENTIATE - Practice of Life Insurance 20
IC02 - LICENTIATE - Practice of Life Insurance 20
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Q 1. Which variant of health insurance policy covers the medical needs of only one individual?
A) Individual Policy
B) Family Floater Policy
C) Group Policy
D) Senior Citizen Policy
E) Critical Illness Policy
Q 2. What is the primary feature of an endowment assurance plan?
A) Death cover only
B) Survival benefit only
C) Lifetime insurance coverage
D) Money back at specific intervals
E) Both death cover and maturity benefit
Q 3. How does an annuity differ from an insurance plan?
A) Annuities provide insurance coverage, while insurance plans provide regular income.
B) Annuities offer lump sum payments, while insurance plans provide periodic income.
C) Annuities are purchased from employers, while insurance plans are purchased from insurance companies.
D) Annuities focus on wealth accumulation, while insurance plans focus on risk coverage.
E) Annuities provide regular income, while insurance plans provide lump sum payments.
Q 4. Who typically prefers a single premium annuity?
A) Young individuals
B) Retirees
C) Individuals with fluctuating income
D) Individuals with high-risk tolerance
E) Self-employed individuals
Q 5. What is the key feature of an annuity for life with a return of premiums?
A) Fixed annuity payments for a fixed term
B) The annuitant receives an annuity for their entire life, and premiums are returned to the nominee or legal heirs on the annuitant's death.
C) The annuitant receives an annuity for a fixed term, and premiums are returned upon completion of the term.
D) The annuitant receives increasing annuity payments every year.
E) The annuitant receives immediate annuity payments after making a lump sum payment.
Q 6. Which of the following benefits are provided by Makheja Group?
A) Life insurance
B) Superannuation
C) Gratuity
D) Leave encashment
E) All of the above
Q 7. Which of the following is an example of a group that can avail the benefits of group insurance?
A) Large corporations
B) Professional associations
C) Co-operative societies
D) Weaker sections of society
E) All of the above
Q 8. What criteria must employees fulfill to be eligible for insurance without medical check-ups?
A) Actively at work and no medical leave for the last 6 months
B) Actively at work and regular exercise routine
C) Actively at work and annual health check-ups
D) Actively at work and no prior medical conditions
E) None of the above
Q 9. Why are the administrative costs low for insurers in group insurance?
A) Individual policies need to be issued for each member
B) Group insurance requires extensive medical check-ups for all members
C) The insurer only needs to issue and manage a single policy for the group
D) The insurer bears the full cost of premium payment
E) None of the above
Q 10. How often does the employer need to renew the group insurance contract?
A) Monthly
B) Quarterly
C) Annually
D) Every 2 years
E) It varies depending on the scheme
Q 11. What is the purpose of setting up a Gratuity Fund as an irrevocable trust?
A) To manage the investments of the fund
B) To prevent diversion of funds for purposes other than gratuity payments
C) To earn high returns on the funds invested
D) To ensure proper management and distribution of gratuity payments
E) All of the above
Q 12. How does the company benefit from the contributions made towards the gratuity fund?
A) The contributions are considered business expenses and provide tax benefits
B) The contributions are returned to the company with interest
C) The contributions are invested by the insurance company for higher returns
D) The contributions reduce the liability of the company
E) None of the above
Q 13. What benefits does a group superannuation scheme provide on retirement?
A) A lump sum payment is made to the beneficiary upon the employee's death.
B) The employee receives a pension based on the corpus (contribution + interest).
C) Actuarial, legal, and taxation expertise is provided to the employer by the insurance company.
D) The employee can transfer funds to the superannuation scheme of a new employer.
E) None of the above
.
Q 14. How is the insurance cover amount determined in the EDLI scheme?
A) It is based on the employee's monthly salary.
B) It is based on the duration of the employee's service.
C) It is based on the balance in the employee's provident fund account.
D) It is a fixed amount for all employees.
E) None of the above.
Q 15. What are the individuals covered under a group insurance policy referred to as?
A) Policyholders
B) Insured members
C) Beneficiaries
D) Group participants
E) None of the above