IC23 - Applications of Life Insurance-2

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Q 1. Gratuity is paid to employees on resignation only after completion of ____of service.

Basic+DA

4 years

5 years

Basic+DA+TA

Basic+CCA

Q 2. Under the Indian Evidence Act, a person who has disappeared is presumed to be dead only if he has not been heard of for __________by those who would naturally have heard of him if he had been alive.

5 years

7 years

10 years

12 years

15 years

Q 3. Which of the following is/are functions of an executor?

Capital reduction

Applying for a probate

To pay testamentary and funeral expenses

Human life value

Capital engagement

Q 4. Any company buying key man insurance for its employees can claim a deduction for the premium paid as a business expense under _____ of the IT Act.

Section 37(1)

Section 37(2)

Section 38(1)

Only (a) & (c)

All are true

Q 5. What does Maysir mean?

Uncertainty is forbidden in contracts

Uncertainty is forbidden in transactions

Gambling is forbidden

Both (a) & (b)

Pork is forbidden

Q 6. _________ are additional benefits that can be purchased with an insurance policy.

Flexi premiums

Tax savings

Riders

Perks

None of the above

Q 7. In ULIP, benefits under __________are available for only those plans where the minimum lock-in period is 5 years.

Section 80C

Section 80D

Section 80E

Section 80G

Section 80H

Q 8. Which of the following is not true about deferred annuity?

The payout starts from a specified future date.

It is suitable for people who wish to draw income immediately.

In a deferred annuity, the principal amount is invested and allowed to grow tax deferred over a specified period.

Variable annuity

None of the above

Q 9. As per Section 113(2) of the Insurance Act 1938, a policy of an insurance company which has a surrender value _________________.

shall lapse if the premium payment is not done for continuous three years.

shall not lapse because of nonpayment of premium

shall be kept alive to the extent of the paid-up sum insured

Only (b) & (c)

Only (a) & (c)

Q 10. NIVESH PLUS of LIC is a ___________

Endowment plan

Money back plan

Unit linked plan

Guaranteed plan

Traditional plan

Q 11. Which of the following is a specific reinsurance covering a single risk?

Facultative reinsurance

Stop loss reinsurance

Surplus reinsurance

Quota Share reinsurance

None of the above

Q 12. _________ is paid out of the current revenues in the Government's budget.

Gratuity

General Provident Fund

Defined benefit pension plan

Public Provident Fund

Pension Fund

Q 13. The First Takaful company was established in which country?

Algeria

Sudan

Tunisia

Libya

Tanzania

Q 14.
Succession certificate empowers the person __________.

To receive interest and dividends

To negotiate the transfer

concerning the securities of a deceased person

Section 41

Section 42

Q 15. Which of the following is true about group term assurance?

Variable benefit and variable contribution plans.

The plan works on a one-year renewal group term assurance basis.

The plan is voluntary and very easy to administer.

Compulsory and voluntary plans

None of the above


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