IC23 - Applications of Life Insurance-8

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Q 1. Which of the following is true regarding variable annuity?

Level annuities without guarantee

It has no guaranteed rate of return.

It earns interest on subaccounts that can be tied to stocks, bonds, or a mixed bag of investments.

Third Way Annuities

None of the above

Q 2. _____________is also known as excessive loss ratio reinsurance.

Stop loss reinsurance

Quota share ratio reinsurance

Catastrophe ratio reinsurance

Both (a) & (b)

Both (a) & (c)

Q 3. In insurance, risk classification is based on _________ (i) applicant's age (ii) occupation (iii) health

Only (i) & (iii)

Only (ii) & (iii)

Only (i), (ii) & (iii)

Only (i) & (ii)

Only (i)

Q 4. The premium rates of whole life insurance policies _________.

changes

never changes

increases with time

decreases with time

either (c) or (d)

Q 5. Why do people feel the need for private medical insurance?

To avoid delays and queues during emergencies

To opt for the latest available technology

A higher percentage of positive outcomes

All the above

None of the above

Q 6. _________issued by an insurance company is the evidence of the contract.

Prospectus

Addendum

Application form

Policy document

Nominee document

Q 7.
What are the benefits of estate planning?

It makes sure that the assets are transferred to the intended beneficiaries

It reduces the estate administration costs, such as attorney’s fees, court costs, etc

It gives incentives to beneficiaries to be productive members of the society

Term insurance

Medical insurance

Q 8. Which of the following statements is true regarding reinsurance?

Treaty reinsurance is a nonobligatory contract.

Facultative reinsurance is an obligatory contract.

Quota share reinsurance is suitable for a large company or an old established company.

Excessive loss ratio reinsurance

Quota Share reinsurance

Q 9. In Sudan, the term Takaful is used for Islamic ______insurance.

Health

Life

Motor

Travel

Property

Q 10. Which of the following challenges is/are faced by social security in India? (i) poverty (ii) unemployment (iii) Employer-employee participation

Only (ii) & (iii)

Only (i) & (iii)

Only (i) & (ii)

Only (i), (ii) & (iii)

Only (iii)

Q 11. As per IRDA, an insurance company has to settle the claims within _______ under the Protection of Policyholders Interests Regulations, 2002.

21 days

28 days

30 days

45 days

60 days

Q 12. Which of the following is correct about benefits under the EDLI scheme?

The benefit under the EDLI scheme is insurance coverage equal to the amount of balance average in the EPF in the last 12 months up to Rs. 35000.

Where the balance exceeds 35000 the cover is equal to Rs. 35000 and 15% of the amount exceeded is subject to a maximum of Rs. 60000.

The benefit under the EDLI scheme is insurance coverage equal to the amount of balance average in the EPF in the last 6 months up to Rs. 35000.

Residuary legatee

None of the above

Q 13. Which of the following insurance plans is the most risky from the investment point of view?

Whole life insurance policies

Term insurance

Unit-linked insurance plan

Money back plan

All the above

Q 14. ____________ states the terms on which the reinsurance business has been accepted by the reinsurer, what are the retention limits, etc.

Original conditions clause

Set off clause

Arbitration clause

Underwriting clause

Alterations clause

Q 15. Which of the following is NOT a financial tool?

Will

Secession certificate

Life Insurance Trust

Bank FD

All the above


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