IC02 PRACTICE OF LIFE INSURANCE - 01

Que. 1 : Q1) Surrender value becomes payable after how many years of policy operation since inception for ULIP

   1.  a) At the end of 1st year

   2.  b) At the end of 2 years

   3.  c) At the end of 3 years

   4.  d) None of the above

Que. 2 : Q2) Under the Group Term Insurance Scheme, can the employer claim tax benefits for the premium paid for the employees ?

   1.  a) Both the employee and employer can claim tax benefits equally

   2.  b) Yes because the premium paid is a business expense

   3.  c) No because the premium is paid for the employee and hence the employee can claim tax benefit

   4.  d) No because the premium paid is not a business expense

Que. 3 : Q3) Which of the following statements is True? (1) Actual total loss occurs where the subject matter of insurance is entirely destroyed. (2) Constructive total loss occurs where the cost of repairs damaged goods exceeds the value of goods after repair.

   1.  a) Statement 1 is True

   2.  b) Statement 2 is True

   3.  c) Both are true

   4.  d) Both are false

Que. 4 : Q4) In a Group Insurance policy, the amount of insurance cover for each employee depends upon __________.

   1.  a) Employee Grade

   2.  b) Employee Designation

   3.  c) Employee salary

   4.  d) All of the above

Que. 5 : Q5) Which one of the following statements is correct?

   1.  a) For a first class life, the premium charged is less than in the tabular rates

   2.  b) For a first class life, the vested bonus will be more than in other cases

   3.  c) Both the statements above are correct

   4.  d) Both the statements above are wrong