IC24 - Legal Aspects of Life Assurance - 1
IC24 - Legal Aspects of Life Assurance - 1
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Q 1. Under the facultative type of reinsurance, the case may be sent to more than one reinsurer, and the reinsurer who gives the most competitive offer is chosen by the insurance company. This is termed as ____________.
a) Facultative discounting
b) Treaty shopping
c) Treaty discounting
d) Facultative shopping
Q 2. The Memorandum of Foreign Exchange Regulations issued by RBI governs which of the following?
a) Issue of life insurance policies in rupees and foreign currencies to non-residents
b) Collection of premia
c) Reinsurance
d) All of the above
Q 3. Which of the following is FALSE concerning insurable interest?
a) Employee has an insurable interest in Employer's Life
b) Employer has an insurable interest in the Employee life
c) Surety has Insurable interest on the Debtors life
d) Debtor has an insurable interest in the life of surety
Q 4. A license issued under Section 42D shall remain in force for a period of _______ only from the issue date.
a) 1 year
b) 2 years
c) 3 years
d) 4 years
Q 5. Under Section 108 of the Indian Evidence Act, of 1872 if a person has not been heard of for ___________, there is a rebuttable presumption.
a) 4 years
b) 5 years
c) 6 years
d) 7 years
Q 6. A person is competent to contract if he
a) is of the age of majority
b) is of sound mind
c) is not disqualified from contracting by any law to which he is subject
d) All the above
Q 7.
Which of the following is correct about Assignment?
a) It is the process of appointment of a person to receive the death claim
b) It can be made only by the life-assured on the policy of his own life.
c) It is applicable only where the Insurance Act, of 1938 is appropriate.
d) It can be done only after the commencement of the policy
Q 8. What are all the elements of a Valid contract?
a) Proposal and acceptance and their communication
b) parties to the contract and their capacity to contract
c) consideration
d) All of the above
Q 9. FATF as used in Money Laundering stands for
a) Financial Advisory Task Force
b) Financial Action Task Force
c) Financial Amendment Task Force
d) Faculty Advisory Task Force
Q 10. Critical Illness policy eases the financial pressure of an individual by providing _______on the diagnosis of a covered condition
a) Reimbursement of actual cost
b) Lumpsum Payment
c) Daily Cash Allowance
d) Health Care Services in International Speciality Hospitals
Q 11. In a critical illness rider, the benefit is payable at the time of______
a) Death of the life-insured
b) Diagnosis of the illness
c) Producing the medical bills
d) Discharge from the hospital
Q 12. Group Insurance plans are renewable every year. Say whether True or False.
a) True
b) False
Q 13. Q13) Which of the following is correct about Nationality?
a) It has reference to the jural relationship under municipal law
b) It is intimately connected with civil rights under municipal law
c) All citizens are nationals of a particular state
d) All nationals may not be citizens of the State.
Q 14. A customer, Rajesh, agrees to pay Rs. 50 to the shopkeeper, the Shopkeeper agrees to give Rajesh a gift voucher with a value of Rs. 50. This is a set of promises that form consideration for each other. This is a set of promises which
a) Consideration
b) Promises
c) Agreement
d) Contract
Q 15. Under Section 80CCD deposits made by a Central Government employee or other employee up to an amount not exceeding _______ of his annual salary towards contribution to a pension scheme are deductible from his salary.
a) 5%
b) 10%
c) 15%