IC23 APPLICATIONS OF LIFE INSURANCE - 02

Que. 1 : Q1) Which clause permits each party to net amounts due against those payable before making payments?

   1.  a) Set-off clause

   2.  b) Arbitration clause

   3.  c) Accounting clause

   4.  d) Loss advices and accounting of losses clause

Que. 2 : Q2) In which arrangement, the insurer cedes a fixed percentage of premiums and losses for every risk accepted and this method is suitable for a small company or a newly established company or when a company underwriting business of a new class for which there are no previous statistics available?

   1.  a) Quota Share reinsurance

   2.  b) Surplus share reinsurance

   3.  

   4.  

Que. 3 : Q3) Which deferred annuities plan offers investment choice and flexibility and it also offer a range of stock and bond investment choices that provides higher returns than a fixed rate account, but the returns are not guaranteed?

   1.  a) Fixed deferred annuities

   2.  b) Variable deferred annuities

   3.  

   4.  

Que. 4 : Q4) The management conditions are intended to give which of the following corporate objectives?

   1.  a) Attaining profitability sufficient to support the growth of Takaful provider

   2.  b) Providing high quality service for both family Takful and General Takaful to the participants

   3.  c) Uplifting and developing a motivated work force with responsible work ethics

   4.  d) All of the above

Que. 5 : Q5) Which of the below statement is incorrect with regards to assignment?

   1.  a) An assignment can be made with or without consideration

   2.  b) An assignment can be absolute or conditional

   3.  c) An assignment out of natural love in favour of parties standing in near relation is valid even if made without any consideration

   4.  d) Provisions related to assignment are specified under Section 39 of the Insurance Act