IC23 - Applications of Life Insurance-4
IC23 - Applications of Life Insurance-4
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Q 1. Which of the following is not true concerning gratuity?
It is a statutory liability as per the Payment of Gratuity Act 1972
It does not offer any tax benefits
It depends on the last drawn wages and the length of service rendered
The gratuity fund is maintained through initial and annual contributions made by the employer into the fund based on the advice of a private actuary or an insurance company.
All are true
Q 2. ____________is a process of identifying, measuring, and communicating financial information to permit informed judgment and decisions by users of the information.
Researching
Assessing
Financing
underwriting
All the above
Q 3. ___________ is preferred when groups of homogenous risks are considered.
Facultative reinsurance
Catastrophe ratio reinsurance
Treaty reinsurance
Property reinsurance
Quota Share reinsurance
Q 4. Employer-based retirement plans can be categorized into ___________
3 years
Defined benefit and defined contribution plans
Mandatory and optional plans
7 years
10 years
Q 5. Health protection policies can be taken for _________.
a) Self
b) Spouse
c) Children
d) Human Medical Organisation
e) Home Medical Organisation
Q 6. The insurance that should be taken by a business firm for key employees is known as _______.
Main person insurance
Key man insurance
Group insurance
National Health Service
New Health Service
Q 7. The Employee State Insurance Scheme applies to power-using factories employing _______people.
five or more
ten or more
fifteen or more
twenty or more
thirty or more
Q 8. Which of the following is the objective of PFRDA? (i) To regulate the insurance industry in fairness and ensure the financial soundness of the industry. (ii) To protect the interests of subscribers to schemes of pension funds (iii) To promote old a
Only (i) & (ii)
Only (ii) & (iii)
Only (i) & (iii)
All (i), (ii) & (iii)
Only (iii)
Q 9. Which of the following is TRUE regarding pure risk?
There is a possibility of either profit or loss.
There is either a possible loss or no loss but no gain.
It is not insurable
Both (a) & (c)
All are true
Q 10. Which of the following can be done by endorsement of the policy or by a separate duly stamped deed?
Specification
Probation
Assignment
Nomination
Adjudication
Q 11. ___________deals with the attachment of individual cession and is used in respect of automatic forms of reinsurance such as treaties.
Marine proportional reinsurance
Original conditions clause
Ultimate net loss clause
Nonproportional reinsurance
All the above
Q 12. Health crisis is an example of _______
Personal risk
Speculative risk
Liability risk
Property risk
Asset risk
Q 13. In an immediate annuity, payout starts __________.
After one year
After two year
After the specific future date
Medical Takaful
None of the above
Q 14. What is the maximum annual contribution that an employer can make to the Pension Fund and provident fund if restricted by the I.T. provisions?
10% of the annual salary
17% of the annual salary
25% of the annual salary
27% of the annual salary
35% of the annual salary
Q 15. Under ____________, maturity and death claim proceeds under a life insurance policy including the bonus received thereon are not to be treated as taxable income under the act.
Section 10(10A)
Section 10(10B)
Section 10(10C)
Section 10(10D)