IC23 APPLICATIONS OF LIFE INSURANCE - 23
| Q1.Which unit-linked funds are popular unit-linked funds because they invest in a mixture of the UK and overseas shares, property, fixed interest securities, and cash deposits? |
| a) Specialist funds |
| b) Tracker funds |
| c) Managed funds |
| d) Lifestyle funds |
| Q2.Estate planning helps to: |
| a) Discourage certain types of conduct |
| b) Reduce or eliminate estate and generation-skipping taxes |
| c) Make sure that assets are transferred to the intended beneficiaries |
| d) All of the above |
| Q3.Which reinsurance accounts for this type of business are normally rendered on an Account year basis and the premiums are usually shown at original gross rates and the reinsurance commission rate is then applied? |
| a) Fire and accident proportional reinsurance |
| b) Marine proportional reinsurance |
| Q4.The schedule in the policy document also mentions which of the following specific particulars of the policy? |
| a) Policy number |
| b) Date of last payment of premium |
| c) Sum assured |
| d) All of the above |
| Q5.Identify the correct full form of SEWA. |
| a) Self Earning women's Association |
| b) Self Employed women's Association |
| c) Self Employed Workers Association |
| d) Steps for Everyone's Well-being Association |
| Q6.Which step involves analysis of assets and liabilities, cash flow, current insurance coverage, investment, and tax strategies? |
| a) Gathering information |
| b) Identifying financial goals |
| c) Implementing the financial plan |
| d) Analysing financial preferences |
| Q7.Which option is not true regarding term life insurance? |
| a) Term life insurance is the purest form of insurance |
| b) Term life insurance is cheaper than other forms of life insurance |
| c) Term life insurance cannot be combined with riders |
| d) Term insurance plans can be taken up to a certain age and not lifelong |
| Q8.Which clause deals with the commencement of reinsurance and the manner and circumstances in which it can be terminated? |
| a) Commencement and termination clause |
| b) Alterations clause |
| c) Common clause |
| d) Insolvency of other reinsurers clause |
| Q9.This is not an annuity policy but a combination of two annuity products i.e. a fixed period immediate annuity and a single premium tax-deferred annuity and it is designed in such a way so as to produce immediate tax-advantaged income for a guaranteed period of time? |
| a) equity-indexed annuities |
| b) Split annuity |
| c) Deferred annuity |
| d) Increasing annuity |
| Q10.This becomes necessary because of the application of _____, which is otherwise called the Indisputability Clause. |
| a) Section 10 of the Insurance Act,1938 |
| b) Section 15 of the Insurance Act,1938 |
| c) Section 30 of the Insurance Act,1938 |
| d) Section 45 of the Insurance Act,1938 |