C83 GROUP INSURANCE - 12
| Q1.Charges could change from year to year in a reasonably orderly manner so that the difference between the maximum and minimum charges during the first 5 years shall not vary by more than ____ times. |
| a) 2.3 times |
| b) 1.5 times |
| c) 3.5 times |
| d) 6.5 times |
| Q2.In Public Provident Fund, a minimum yearly deposit of ___ is required to open and maintain a PPF account. |
| a) Rs.100 |
| b) Rs.300 |
| c) Rs.400 |
| d) Rs.500 |
| Q3.What refers to insurance that is purchased by an insurance company from one or more other insurance companies directly or through a broker as a means of risk management? |
| a) Group plan |
| b) Reinsurance |
| c) Funding ratio |
| d) Insurer |
| Q4.The calculation of final salary can be based on emoluments earned in years prior to retirement and inflated by the retail price index to the year of retirement. This is known as __ |
| a) Maximum Emerging Benefits |
| b) Dynamising |
| c) Contributions |
| d) Defined Benefit scheme |
| Q5.The reinsurance contract may oblige the reinsurer to accept reinsurance of all contracts within the scope known as |
| a) Facultative obligatory |
| b) Obligatory reinsurance |
| Q6.In the context of Annuity, What is Commutation? |
| a) Option to receive an annuity in Monthly Installments |
| b) Option to receive an annuity in Half Yearly Installments |
| c) Option to receive a portion of Maturity benefit as Lump Sum before the annuity starts |
| d) Option to receive annuity payments annually |
| Q7.An AVC arrangement allows a member to make additional personal contributions up to ____ of pensionable remuneration minus personal contributions routinely paid to the main scheme. |
| a) 10% |
| b) 15% |
| c) 20% |
| d) 25% |
| Q8.Which cost arises because the benefits are one period closer to settlement and this is arrived at by multiplying the discount rate as determined at the start of the period by 'PVO' at the beginning of the period? |
| a) Current service cost |
| b) Interest Costs |
| c) Expected Return on Plan Assets |
| d) Actuarial Gain or loss |
| Q 9. Why do most of the employers go in for Group Insurance Scheme providing term cover from a life insurance company in lieu of the statutory Employees Deposit Linked Insurance Scheme, 1972? |
| a) To avail extra tax benefit |
| b) To save administrative expenses |
| c) To provide higher cover to employees than that are available under the EDLI scheme |
| d) To avoid statutory compliance |
| Q10.The maximum amount that can be invested in Public Provident Fund is Rs.___. |
| a) 150000 |
| b) 100000 |
| c) 70000 |
| d) 90000 |