IC24 - Legal Aspects of Life Assurance - 3

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Q 1. The instruments which are chargeable with duty when executed in India and the amount of duty are indicated in ____________.

a) Schedule I of the Act

b) Schedule II of the Act

c) Schedule III of the Act

d) Schedule IV of the Act

Q 2. Which of the following is not correct about Group Insurance?

a) Level premium is charged

b) Proposal as the basis of a contract signed by the group representative

c) Covering a group of people under a single contract

d) Medical examination is exempt

Q 3. In which of the below scenarios is a contract discharged by Novatio?

a) By performance of contract

b) By the death of either party to contract

c) By substitution of the original contract with a new contract

d) By operation of law

Q 4. According to Section 40A referred to in clause (c), an insurer, during the first ___________ of his business, may pay to an insurance agent and the insurance agent may receive from such an insurer, 40% of the first year's premium payable on the pol

a) 5 years

b) 10 years

c) 15 years

d) 20 years

Q 5. When one person signifies to another his willingness to do or to abstain from doing something, to obtain the assent of that other to such act or abstinence, he is said to make a ___________.

a) Promise

b) Proposal

c) Contract

d) Consideration

Q 6. The beneficiaries of a life insurance policy affected by the MWP Act can be

a) the wife alone;

b) One or more children; or

c) the wife and one or more children jointly

d) Any of the above is possible

Q 7. The India Succession Act was enacted in which year?

a) 1915

b) 1925

c) 1935

d) 1945

Q 8. In which Rider a specified amount is paid by the insurance company to the nominee/beneficiary on the death of the life assured due to an accident?

a) Critical illness(CI) rider

b) Accidental death benefit(ADB) Rider

c) Hospitalisation benefits the rider

d) None of these

Q 9. If death occurs before all the installments shall have been paid, the commuted value of the remaining installments will be paid to his beneficiary. Say whether True or False.

a) True

b) False

Q 10. __________ is a quasi-judicial procedure that saves time and expenses and avoids unnecessary technicalities.

a) Settlement

b) Negotiation

c) Arbitration

d) Mediation

Q 11. If the ombudsman's recommendation is accepted by the complaint the insurer has to comply with it in ____.

a) 7 days

b) 15 days

c) 30 days

d) 45 days

Q 12. Which of the following is not correct about the Constitution of the Supreme Court?

a) The Supreme Court of India is established under Article 124 of the Constitution of India.

b) It came into existence on 30th January 1960.

c) All Supreme Court judges are appointed by the President of India.

d) The Supreme Court of India is at the apex of the machinery for administrations of justice

Q 13. Reinsurance arrangements for the insurance companies registered with IRDA are to be decided by the companies themselves on __________ basis.

a) Annual

b) Half-yearly

c) Quarterly

d) Monthly

Q 14. Q13) Which is an important source of law and serve as guidelines to deal with incidents in the absence of law?

a) Instance

b) Judicial precedents

c) Antecedent

d) None of these

Q 15. Which of the following is not considered a permanent disability?

a) entire sight of both eyes

b) Leg fracture

c) the amputation of both hands

d) the amputation of both feet


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