IC92 ACTUARIAL ASPECTS - 03

Que. 1 : Q1) Which is one of the very popular distribution channels currently in India and in this, banks sell insurance product of the company to whey they are tied and they earn their remuneration from the company as commission?

   1.  a) Agents

   2.  b) Bancassurance

   3.  c) Brokers

   4.  d) Direct marketing

Que. 2 : Q2) _____________ is greatly enhances by innovative design features and additions of options and guarantees.

   1.  a) Product design

   2.  b) Sensitivity of profit

   3.  c) Expenses

   4.  d) Marketability

Que. 3 : Q3) Which of the following are disadvantages of cash flow method?

   1.  a) Tax can be allowed for more appropriately

   2.  b) This method allow more easily the financing requirements for a new contract

   3.  c) The risk discount rate can take account of the term structure of interest rates

   4.  d) It is time consuming

Que. 4 : Q4) 1) Insurance products are legal contracts 2) Sometimes Insurance products are illegal contracts. Choose the correct answer

   1.  a) Statement 1 is correct

   2.  b) Statement 2 is correct

   3.  c) Both the Statements are correct

   4.  d) Both the statements are wrong

Que. 5 : Q5) Which of the following expenses is the most difficult to ascertain while calculating the expenses rate?

   1.  a) Nature of product

   2.  b) Volume of sales

   3.  c) Inflation rate

   4.  d) Competitor's rate