IC24 - Legal Aspects of Life Assurance - 2

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Q 1. Which of the below options is true about MWP act cases? Statement I: Death claims are settled in favor of nominees, Statement II: Death claims are settled in favor of trustees

a) it is true

b) II is true

c) Both I and II are true

d) Neither I nor II is true

Q 2. Deduction from income shall be allowed under Section 80C of the Act of an amount up to ___________ paid or deposited in the previous year.

a) Rs. 1,50,000

b) Rs. 2,00,000

c) Rs. 5,00,000

d) Rs. 10,00,000

Q 3. Punishment of Money Laundering Section 4 provides for the punishment of rigorous imprisonment for a term of ___________ years and a fine extending to __________ rupees.

a) 5 years and 5 lakhs

b) 3 to 10 years and 5 lakhs

c) 3 to 5 years and 10 lakhs

d) 8 years and 8 lakhs

Q 4. In the process of Money Laundering, at which stage money undergoes a series of transactions to appear to have been received from a legitimate source?

a) Placement

b) Layering

c) Integration

d) None of these

Q 5. The most important source of law in modern times is the _____________i.e.the laws that are enacted by the Legislature.

a) Statute Book

b) Ancient Indian law

c) Srutis

d) Smritis

Q 6. As per the recommendations of the committee on reforms in the insurance sector, who has been asked to evolve a course suitable for the agency profession leading to a diploma in life insurance salesmanship?

a) National Insurance Academy(NIA)

b) Insurance Regulatory and Development Authority (IRDA)

c) Insurance Institute of India(III)

d) Indian Institute of Risk Management(IIRM)

Q 7. Under section 38 of the Insurance Act, Assignments are classified into how many types?

a) one

b) two

c) three

d) four

Q 8. An absolute assignment, which is in writing, is a ________________. It takes effect from the date of notice to the insurer and enables the assignee to sue in his name and to give a valid discharge.

a) equitable assignment

b) Conditional assignment

c) Statutory assignment

d) None of these

Q 9. A ________ in an insurance policy corresponds with a condition in any other contract, and a breach of it entitles the aggrieved party to repudiate all liability under the contract.

a) Representation

b) Consent

c) Warranty

d) None of these

Q 10. The Foreign Exchange Management Act (FEMA) was passed in _________.

a) 1995

b) 1991

c) 1999

d) 1973

Q 11. In which plans the insurance company pays the life assured the promised sum assured and the accumulated bonuses(if any) at the end of the tenure of the plan?

a) Money back plan

b) Return of Premium(ROP) plans

c) Annuities

d) Endowment and whole life plans

Q 12. A contract of wager is void but not illegal. Say whether True or False.

a) True

b) False

Q 13. Consent is not free when caused by

a) Coercion

b) Undue influence

c) Fraud

d) All of these

Q 14. In the US, Who is the legal agent of the insured and does not have the same powers as a local agent although operating at the same level?

a) General agents

b) Soliciting agents

c) Brokers

d) None of these

Q 15. Which of the below is an essential element of a contract?

a) There should be no consideration

b) The promisor and promise should be a major

c) There should be proposal, acceptance, and communication

d) There should not be consensus ad item


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