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Quiz 6
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Q.1
Which of the following statements is correct?
Policyholder cannot earn market rate of interest on his cash value
In universal life plan, policyholder can vary payments of premium
Universal life plan is a traditional plan of assurance
Variable life insurance is a temporary plan of insurance
Q.2
Which of the following is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people?
Young people are mostly dependent
Old people can afford to pay more
Mortality is related to age
Mortality is inversely related to age
Q.3
Which of the following statements is incorrect?
An agent licenced to act as such for an insurer is required to have a licence under Section 42 of the Insurance Act, 1938 for procuring and continuing insurance business against payment of commission
An agent can only be a trained individual for working for an insurance company
A bank can also act as a broker for life insurance business
None of the three
Q.4
In what plan of insurance is medical examination never required?
Endowment
Pure endowment
Group insurance
Term assurance
Q.5
_________ may deal with more than one life insurance company or general insurance company or both.
An agent
A surveyor
A composite agent
None of the three
Q.6
For a household insurance policy, insurable interest need only exist at outset and at what other point?
The date the cancellation period expires
The date a claim occurs
The date the policy document is received
The termination date
Q.7
Rahul is employed by Sunny. In respect of this employment, Rahul automatically has an insurable interest in Sunny’s life up to what limit, if any?
Rahul's monthly salary
Rahul's pension fund value
Sunny's annual profit
There is no limit
Q.8
A life insurer issued a quotation on 10 February, guaranteed for 14 days, which was accepted by the customer on day 10. Consequently the insurer can only decline this risk if the
Customer submits a second quotation request
Insurer increases its underlying premium rates
Market place experiences a significant downturn
Material facts change
Q.9
A policy document for a money-back policy includes the statement of the proposal and declaration signed by the proposer form the basis of the contract's. In which main section of the policy document will this normally appear?
Attestation
Operative clause
Preamble
Terms and conditions
Q.10
Which is true of Current Money method of dividend payment?
Returns depend on when the investment was made
Different investment blocks get different returns
It is also called segmented or investment block method
All of the above
Q.11
In ULIPs, the result of policy allocation charge would be that _________ amount would be allocated for investment in units.
More
Less
High
Any of the above
Q.12
The insurable interest of a mortgagor in the mortgage’s life is equal to the amount of
Original loan
Outstanding loan plus interest
Outstanding loan
Installment due to be repaid within the next one year
Q.13
Arun started a 20-year term insurance policy. Once established, when, if at all, is the insurer next entitled to ask him for proof of continuing good health?
At no point
After the end of the first 12 months
At the point when he changes occupation or retires
When a lapsed policy is revived
Q.14
The concept of indemnity is based on the key principle that policyholders should be prevented from
Insuring existing losses
Making false insurance claims
Paying excessively for insurance cover
Profiting from insurance
Q.15
A life insurance policy can only be made paid up if what particular policy feature exists?
Indexing contribution
Nomination facility
Rider benefits
Savings element
Q.16
The main reason why a life insurance proposal form often asks for the proposer's height is to enable a reasonable comparison with the proposer’s
Age
Gender
Occupation
Weight
Q.17
Rakesh recently bought a health insurance policy and a personal accident policy. What main section(s) of the insurance market do these products normally fall into?
Life insurance in both cases
Life insurance for health and non-life insurance for personal accident
Non-life insurance in both cases
Non-life insurance for health and life insurance for personal accident
Q.18
In a life insurance contract, the stated sum of money to be paid to the beneficiary upon the insured’s death is termed as _________
Premium Amount
Special Amount
Face Value
Extra Expense Insurance
Q.19
A single policy covering a group of individuals, usually employees of the same company or members of the same association and their dependants is called _________
Hospital Insurance
Hull Insurance
Group Insurance
Identity theft Insurance
Q.20
Nippon Life Insurance has signed definitive agreements to invest Rs 2,265 crore (US$ 332.32 million in order to increase its stake in Reliance Life Insurance from 26 per cent to 49 per cent. Nippon Life Insurance based in-
USA
Japan
France
Germany
Q.21
Secondary burden of risk consists of _________ and _________ one has to bear if exposed to loss situation.
Trials, tribulations
Costs, Strains
Situations, Safeguards
Circumstances, Conflicts
Q.22
Which among the following companies has not contributed towards the share capital of Agriculture Insurance Company of India Limited (AIC)?
Insurance Regulatory and Development Authority of India (IRDAI)
National Bank for Agriculture and Rural Development (NABARD)
General Insurance Corporation of India (GIC)
National Insurance Company Limited (NICL)
Q.23
Once an absolute assignment is effected under a life insurance policy, who will be the titleholder(s) of this policy?
The assignee in all cases
The assignor in all cases
Either the assignor or assignee depending on the type of policy involved
The assignor and assignee jointly
Q.24
Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply?
2.50%
3.00%
5.00%
7.50%
Q.25
The main role of an underwriter in a non-life insurance company is normally to
Assess the acceptability of particular risks
Certify a loss when claims are submitted
Design the structure of the products to be offered
Negotiate with the industry regulator
Q.26
Akshat is a relatively cautious person. In insurance terms, this will normally increase the likelihood that he will
Be considered an above average insurance risk
Be considered a below average insurance risk
Require insurance cover
Require reinsurance cover
Q.27
How are perils and hazards normally distinguished under term insurance policies?
Perils are medical factors which influence the risk of dying and hazards are lifestyle activities which influence the risk of dying
Perils are risks that policyholders will die before a specified date and hazards are factors which could influence that risk
Perils are factors which affect the risk being insured and hazards are the size of the risk being insured
Perils are factors which could influence an insured event occurring and hazards are the actual events which will trigger a payout
Q.28
A seller’s market in which insurance is expensive and in short supply is termed as _________
Hard Market
Soft Market
Alternative Market
None of the Above
Q.29
An environment where insurance is plentiful and sold at a lower cost, also known as a Buyers market is called _________
Hard Market
Soft Market
Alternative Market
None of the Above
Q.30
The concept of insurance involves a transfer of
Liability
Needs
Ownership
Risk
Q.31
When did insurance begin in Babylon?
1750 BC
1907 BC
1971 BC
2000 BC
Q.32
Which one of the following does not belong to the main products of life insurance?
Term
Whole life
Endowment
Personal accident insurance
Q.33
Which one of the following does not belong to the major general insurance private sector companies in India?
Reliance General Insurance
The Oriental Insurance Company
Bajaj Allianz General Insurance
Royal Sundaram Alliance Insurance
Q.34
Which was the first Act to regulate life insurance industry in India?
Insurance Act, 1938
Life Insurance Companies Act, 1912
IRDA Act, 1999
LIC Act, 1956
Q.35
In insurance terms, the risk of suffering a disability is best described as what type of risk?
Financial
Fundamental
Homogenous
Speculative
Q.36
What is the function of IRDA?
Plan for Financial Inclusion
Provide relief packages to the Farmers
Regulate insurance business in India
Hiring & Purchasing assets
Q.37
TPA stands for
Third Party Assignee
Third Payment Administrator
Third Payee Assignor
Third Party Administrator
Q.38
The written insurance contract that may include all clauses, riders and endorsements. It is called?
Installment
Premium
Policy
Assets
Q.39
Agriculture Insurance Company Of India Limited (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under-
Companies Act, 1956
SEBI Act, 1992
IRDA Act, 1999
Reserve Bank of India Act, 1934
Q.40
_________, who represents the interests of the insured in searching for insurance coverage at the lowest cost and highest benefit to the insured.
Customer
Cashier
Broker
Banker
Q.41
What is the CRISIL rating for New India Assurance Co Ltd located?
AA/Stable
AAA/Stable
AA/Negative
AAA/Negative
Q.42
Which of the following type of insurance product are available in New India Assurance Co Ltd located?
Personal Insurance
Commercial Insurance
Industrial Insurance
All of the above
Q.43
The New India Assurance Co. Ltd. was a subsidiary of which of the following company?
General Insurance Corporation of India (GIC)
Life Insurance Corporation of India (LIC)
The Oriental Insurance Company
United India Insurance Company
Q.44
Which of the following is an example of Broad Form Insurance?
Mortgage insurance
Automobile insurance
Liability insurance
Property insurance
Q.45
Which type of insurance usually requires higher premium?
Broad Form insurance
Whole life insurance
Health insurance
Term insurance
Q.46
What is PAC?
Post-Authorized Cheque
Pre-Authorized Chequing
Process-Authorized Chequing
Pre-Authorized Checking
Q.47
Which of the following form is designed to be used by many different insurers and has exactly the same provisions?
Guaranteed Replacement Form
Standard insurance Form
Standard Endorsement Form
Standard Policy Form
Q.48
TPA is licenced by the -
Insurance company
Surveyor
Central Govt.
IRDA
Q.49
Who is a health care provider?
Insurer
Insured
IRDA
Hospital
Q.50
New India Assurance Co Ltd is a type of?
Life Insurance Company
General Insurance Company
Re-insurance Company
All of the above
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