IC23 APPLICATIONS OF LIFE INSURANCE - 04
| Q1.Which of the following is not true with reference to gratuity? |
| It is a statutory liability as per the Payment of Gratuity Act 1972 |
| It does not offer any tax benefits |
| It depends on the last drawn wages and the length of service rendered |
| The gratuity fund is maintained through initial and annual contributions made by the employer into the fund based on the advice of a private actuary or an insurance company. |
| All are true |
| Q2.___is a process of identifying, measuring, and communicating financial information to permit informed judgment and decisions by users of the information. |
| Researching |
| Assessing |
| Financing |
| underwriting |
| All the above |
| Q3._____ is preferred when groups of homogenous risks are considered. |
| Facultative reinsurance |
| Catastrophe ratio reinsurance |
| Treaty reinsurance |
| Property reinsurance |
| Quota Share reinsurance |
| Q4.Employer-based retirement plans can be categorized into _____ |
| 3 years |
| Defined benefit and defined contribution plans |
| Mandatory and optional plans |
| 7 years |
| 10 years |
| Q5.Health protection policies can be taken for ___. |
| Self |
| Spouse |
| Children |
| Human Medical Organisation |
| Home Medical Organisation |
| Q6.The insurance which should be taken by a business firm for key employees is known as ____. |
| Main person insurance |
| Keyman insurance |
| Group insurance |
| National Health Service |
| New Health Service |
| Q7.The Employee State Insurance Scheme is applicable to power using factories employing ____people. |
| five or more |
| ten or more |
| fifteen or more |
| twenty or more |
| thirty or more |
| Q8.Which of the following is the objective of PFRDA? (i) To regulate the insurance industry in fairness and ensure the financial soundness of the industry. (ii) To protect the interests of subscribers to schemes of pension funds (iii) To promote old age income security. |
| Only (i) & (ii) |
| Only (ii) & (iii) |
| Only (i) & (iii) |
| All (i), (ii) & (iii) |
| Only (iii) |
| Q9.Which of the following is TRUE regarding pure risk? |
| There is a possibility of either profit or loss. |
| There is either a possible loss or no loss but no gain. |
| It is not insurable |
| Both (a) & (c) |
| All are true |
| Q10.___means the legal declaration of the intention of the testator with respect to his property which he desires to be carried into effect after death. |
| Executor |
| Probate |
| Administrator |
| Assignor |
| Assignee |